Dow Jones Industrial Average rises 114 points
The Dow climbed 114.75 points, or 0.42%, to a record high of 27,462.11. The S&P 500 gained 0.37% to 3,078.27. The Nasdaq Composite advanced 0.56% to end the day at 8,433.20. The Dow joined the S&P 500 and Nasdaq in record territory amid optimism around U.S.-China trade, strong economic data and better-than-expected earnings.
Stars align for Wall Street
U.S. Commerce Secretary Wilbur Ross said Sunday that American firms would be granted licenses to sell to Chinese telecom giant Huawei "very shortly." This lifted the sentiment around global trade and helped lift stocks to record levels. The good news around trade followed a better-than-expected jobs report from Friday while the corporate earnings season has generally exceeded expectations. These three elements lined up perfectly for the Dow to break above its previous record set in mid-July. Moving forward, stocks could build on their records if the tone around U.S.-China trade remains constructive and the economic data is positive.
Chevron rises, Under Armour and McDonald's slide
Chevron shares jumped 4.61% to lead the Dow higher as energy stocks got a boost from generally higher oil prices. Under Armour, however, dropped 18.92% after disclosing a federal probe into its accounting practices. McDonald's, meanwhile, slid 2.72% after CEO Steve Easterbrook was fired for having a relationship with an employee that violated company policy.
What happens next?
Wall Street will scrutinize data on the U.S. services sector released by IHS Markit at 9:45 a.m. and by the Institute for Supply Management at 10 a.m. ET. Chinese President Xi Jinping is also scheduled to speak overnight. Read more here.