By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Dow Jones Industrial Average trades above record closing high
U.S. stocks rose to records Monday aided by a jump in oil prices and a pullback in the dollar.
The S&P 500 index rose 10 points, or 0.5%, at 2,192, trading above its closing record and touching an intraday record of 2,193.84. Nearly all of the 11 main S&P 500 sectors were trading in the green with energy leading gains, up 2%.
The Dow Jones Industrial Average gained 55 points, or 0.3%, to 18,922, while the Nasdaq Composite Index advanced 31 points, or 0.6%, to 5,353, settingits intraday record at 5,359.90.
"The path of least resistance in stocks at the moment is to go higher, while this week is light on the news as well as shortened by Thanksgiving holiday," said Maris Ogg, president at Tower Bridge Advisors.
Ogg cautioned that people might be reading too much into President-elect Trump's future economic policies, that have been fueling the rally.
"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 don't end well," Ogg said, adding that it's prudent to be cautious about stocks.
Since Election Day and the surprise presidential election win for Donald Trump, the Dow has climbed 2.9%, the S&P 500 has gained 2%, and the Nasdaq has risen 2.5%.
A sharp rally in the dollar and 10-year Treasury yields last week dampened the postelection stock rally 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 0.2% to 100.96, while the 10-year Treasury yield fell 4 basis points to 2.23%.
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 researchanalyst 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 14%.
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.
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.
Tyson Foods Inc.(TSN) will report results ahead of the market's open.
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 rose 18% in premarket.
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) rose 2.7%, to $47.62 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 byOPEC 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 saw a largely flat open, while Asian finished mixed (http://www.marketwatch.com/story/asian-stocks-rise-on-encouraging-economic-news-2016-11-20). Gold prices rose modestly, up $5.30, or 0.4%, while December copper rose 5 cents, or 2.2%, to $2.5225 a pound.
(END) Dow Jones Newswires
November 21, 2016 09:59 ET (14:59 GMT)
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