By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Russell 2000 also hits all-time trading high
U.S. stocks rose to records Monday aided by a jump in oil prices and a pullback in the dollar, putting the Dow industrials, S&P 500, and Nasdaq on track to simultaneously close at all-time highs for the first time since mid-August.
The S&P 500 index rose 14 points, or 0.7%, to 2,196, trading above its record close and touching an all-time intraday high of 2,197.55. All of the 11 main S&P 500 sectors were trading in the green with energy leading gains, up more than 2%, and the materials sector gaining 1%. The index last closed at a record high of 2,190.15 back on Aug. 15.
The Dow Jones Industrial Average gained 74 points, or 0.4%, to 18,942, led by gains in DuPont (DD), Apple Inc.(AAPL) and International Business Machines Corp.(IBM) The average notched a fresh intraday record high of 18,947.61 and was trading above its previous record close of 18,923.
Read:Dow 19K? It's been a slow march (http://www.marketwatch.com/story/dow-19k-its-been-a-slow-march-2016-11-18)
The Nasdaq Composite Index advanced 43 points, or 0.8%, to 5,364, after setting an intraday record at 5,365.38. The index last closed at a record high of 5,339.52 on Sept. 22.
The last time all three indexes closed at record highs at the same time was two sessions back in mid-August (http://www.marketwatch.com/story/us-stock-futures-inch-higher-ahead-of-empire-state-reading-2016-08-15), whereas before that the last time that occurred was in 1999 (http://www.marketwatch.com/story/slumping-oil-prices-look-set-to-keep-lid-on-us-stock-rally-2016-08-11).
The Russell 2000 index rose 5 points, or 0.4%, to 1.321, touching an intraday all-time high at 1,323,72, according to FactSet. The index of small stocks outperformed large-cap counterpart year to date, rising 16% since January, compared with 7.5% gain on the S&P 500.
See:'Trump trade' sparks stampede out of bond funds into stocks (http://www.marketwatch.com/story/trump-trade-sparks-stampede-out-of-bond-funds-into-stocks-2016-11-18)
Stronger oil prices and a moderation of dollar strength are providing relief for the market, along with a return to earnings growth, said Karyn Cavanaugh, senior market strategist at Voya Financial, in an interview. Additionally, with the market pricing in a December rate increase from the Federal Reserve, positive economic data is becoming a tailwind for stocks.
"We've turned the corner and good news has gone back to being good news," Cavanaugh said.
However, Maris Ogg, president at Tower Bridge Advisors, cautioned that people might be reading too much into President-elect Donald Trump's future economic policies, which have been fueling the rally over the past two weeks.
"Stocks have rallied since the election on a lot of talk and no action so far, but it's a classic jump to conclusions that when coupled with high valuations usually doesn't end well," Ogg said, adding that it's prudent to be cautious about stocks.
Since Election Day on Nov. 8, the Dow has climbed about 3%, the S&P 500 has gained 2%, and the Nasdaq has risen nearly 3%.
A sharp rally in the dollar and 10-year Treasury yields last week dampened the postelection stock surge on Friday.
But on Monday, the dollar eased slightly, with the ICE Dollar Index , which measures the currency against a basket of six currencies, down 0.1% to 101.12, while the 10-year Treasury yield (http://www.marketwatch.com/story/treasurys-edge-higher-as-selling-pressure-relents-2016-11-21) fell 2.3 basis points to 2.333%.
Investors also welcomed comments from Federal Reserve Vice Chair Stanley Fischer (http://www.marketwatch.com/story/feds-fischer-says-fiscal-policy-can-help-boost-productivity-and-lift-rates-2016-11-21), who said fiscal policy can do more to help the economy--and even lift interest rates.
Read: How Trump's latest potential hires could send the stock market 'through the roof' (http://www.marketwatch.com/story/how-trumps-latest-potential-hires-could-send-the-stock-market-through-the-roof-2016-11-21)
"It is becoming clear that market participants have digested the Trump reality with most waiting for further news relating to Trump's economic team which could provide additional clarity on how he plans to lead the U.S. economy," said Lukman Otunuga, FXTM research analyst in a note.
A pause for reflection could come in a week where volume traditionally thins out as traders head out for the Thanksgiving Day holiday (http://www.marketwatch.com/story/heres-when-markets-close-on-black-friday-2016-11-18). Markets will shut Thursday and then close early on Black Friday, the traditional kickoff to holiday shopping.
Read:Investors to digest stock market feeding frenzy before their turkey (http://www.marketwatch.com/story/investors-to-digest-stock-market-feeding-frenzy-before-their-turkey-2016-11-19)
Economic docket: The Chicago Fed national activity index increased to -0.08 in October from -0.23 in September.
The bulk of the week's economic indicators are expected Wednesday, which brings an update on durable-goods orders and the minutes of the latest Federal Open Market Committee meeting.
Read:Trump's challenge: Get businesses to invest again (http://www.marketwatch.com/story/trump-challenge-get-businesses-to-invest-again-2016-11-20)
Stocks to watch:Symantec Corp.(SYMC) has agreed to acquire LifeLock Inc.(LOCK), a seller of identity-theft protection services, for $2.3 billion in cash, The Wall Street Journal reported (http://www.marketwatch.com/story/symantec-to-purchase-lifelock-in-23-billion-cybersecurity-deal-2016-11-20), citing a source. Shares of LifeLock jumped 15%, and Symantec shares rose 4.1%.
The S&P 500's biggest gainers were energy companies with shares of Marathon Petroleum Corp.(MPC), Chesapeake Energy Corp.(CHK), Range Resources Corp.(RRC), and Southwestern Energy Co. (SWN) all up 6% or more.
Wal-Mart Stores Inc.(WMT) said Monday that it will offer its Cyber Week sales several days early, (http://www.marketwatch.com/story/wal-mart-unveils-plans-for-early-cyber-monday-2016-11-21) starting Friday. Shares rose 0.9%.
Amazon.com Inc.(AMZN) shares rallied 2.2% as the holiday shopping season ramps up.
Facebook Inc.(FB) said it would hire an additional 500 employees (http://www.marketwatch.com/story/facebook-will-expand-staff-by-500-in-uk-reports-2016-11-21) in the U.K., according to media reports. Shares rose 4%.
Tyson Foods Inc.(TSN) dropped 14% after reporting disappointing results and announcing that Chief Executive Donnie Smith would leave (http://www.marketwatch.com/story/tyson-foods-names-new-ceo-and-warns-on-profit-2016-11-21-9485179). The meat producer also a downbeat outlook for profit in the year ahead.
Australia's Boral Ltd.(BLD.AU) announced a $1.86 billion deal to acquire Utah-based building products company (http://www.marketwatch.com/story/australias-boral-buys-utah-based-headwaters-for-186-billion-2016-11-20)Headwaters Inc. (HW). Boral said it wanted to increase exposure to "positive momentum" being seen by the U.S. industry, driven by hopes for more infrastructure spending by Trump. Headwaters shares jumped 17%.
SolarCity Corp. shares (SCTY) were halted from trading at $20.34 pending additional information request from Nasdaq.
Other markets:West Texas Intermediate crude-oil futures (http://www.marketwatch.com/story/push-for-a-deal-ahead-of-opec-meeting-rallies-crude-prices-2016-11-21) for December rose 3.9% to settle at $47.49 a barrel. The rise in oil prices came after Russian President Vladimir Putin reportedly said Sunday that he was optimistic about a output-cut deal at the Organization of the Petroleum Exporting Countries meeting on Nov. 30. He also said his country was ready to freeze production if asked.
"While loose terms may be agreed, I remain skeptical that a full detailed agreement can be both achieved and carried out by OPEC given the clear differences that are so evident between certain key members," said Craig Erlam, senior market analyst at OANDA, in a note to clients.
European stocks were largely flat, while Asian finished mixed (http://www.marketwatch.com/story/asian-stocks-rise-on-encouraging-economic-news-2016-11-20). Gold prices settled up 0.1% at $1,209.80 an ounce, while December copper rose nearly 5 cents, or 1.9%, to settle at just under $2.52 a pound.
--Barbara Kollmeyer in Madrid contributed to this article.
(END) Dow Jones Newswires
November 21, 2016 15:05 ET (20:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.