The S&P 500 is closing at an all-time high for the first time since July, and the Nasdaq is also near a record and more in Monday’s Stock Market Update.
The gains Monday came at the beginning of a busy week of earnings, economic data and expectations of another interest rate cut by the Federal Reserve.
Technology, health care and communications stocks powered the advance, outweighing losses in real estate, utilities and household goods makers.
Tiffany soared 31.6% after the French luxury company LVMH offered to buy the iconic jeweler for $14.5 billion.
Bond prices fell. The yield on the 10-year Treasury rose to 1.84%.
Stock Market Update
KEEPING SCORE: The S&P 500 rose 17 points, or 0.6%, to 3,039. The Dow Jones Industrial Average rose 133 points, or 0.5%, to 27,090. The Nasdaq added 83 points, or 1%, to 8,325.
FULL WEEK: The market could be in for a more volatile ride this week. Alphabet, Google’s parent company, reports earnings results later Monday. General Motors and drugmakers Merck and Pfizer release results on Tuesday. Apple and Facebook report on Wednesday.
Several important economic reports will be issued this week. The government will release its closely watched monthly employment report on Friday. Economists expect a slight increase in the unemployment rate to 3.6% in October from 3.5% in September.
Meanwhile, Wall Street widely expects the Fed to cut its benchmark short-term rate to a range of 1.5% to 1.75%. It would be the central bank’s third interest rate cut this year.
MARRIAGE PROPOSAL: Jeweler Tiffany soared 30.9% after being courted by French luxury group LVMH with a $14.5 billion buyout offer. LVMH owns fashion names including Christian Dior, Givenchy and Tag Heuer. The offer comes as Tiffany struggles with stagnating sales.
BIG CLOUD: Microsoft rose 2.5% after The Pentagon on Friday awarded the software company a $10 billion cloud computing contract. The long-established technology company beat Amazon, the early front-runner, for the hefty award.
CALL RECEIVED: AT&T rose 4.3% after the company said it will look for more parts of its business to sell off and add two new board members after pressure from an activist investor.
Hedge fund Elliott Management said it supported AT&T’s plans. It had called for changes in September as it revealed a 1% stake in the wireless company.
OVERSEAS: European markets closed broadly higher. The European Union agreed Monday to give Britain a three-month extension for its planned departure from the 28-member trading bloc. It had been set to leave on Oct. 31. The extension gives both sides more time to make a deal that will cover trade and other issues.
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