S&P 500 closes higher on Monday, building on its four-week win streak

CNBC in 5 minutes: All the buy, sell and hold stock calls from Monday
CNBC in 5 minutes: All the buy, sell and hold stock calls from Monday

U.S. equities rose on Monday as the rally on Wall Street continued and traders prepared for a big week for retail earnings.

The Dow Jones Industrial Average added 151.39 points, or 0.45% to close at 33,912.44. The S&P 500 rose 0.4% to 4,297.14, while the Nasdaq Composite edged 0.62% higher to close at 13,128.05.

The Dow closed above its 200-day moving average for the first time since April 20, an indicator often viewed as a signal of where the market could be headed going forward.

Stocks opened the session lower, led by declines in energy and financials, before rebounding into positive territory. Consumer staples, communication services and consumer discretionary moved higher, while Tesla pulled technology into positive territory. Disney gained on news of hedge fund manager Dan Loeb's stake.

The moves came despite disappointing economic data out of China, where the country's central bank cut rates unexpectedly, raising concern over China's economic recovery.

"I think what this market is doing a really good job at is making a lot of people feel very uncomfortable," said Truist's Keith Lerner. "The way the market's trading, it's already been braced for bad news, so once it gets it, it doesn't hurt the market because it's already prepared for it."

The S&P 500 is coming off its fourth straight one-week gain, marking the benchmark's longest winning streak since 2021 after economic data showed inflation pressures could be easing a bit. The Nasdaq and Dow also rose last week.

Investors this week are keeping an eye on earnings from big retailers including Home Depot, Walmart and Target, and listening for further clues on how their businesses have been affected by inflation.

Lea la cobertura del mercado de hoy en español aquí.

Momentum ETF advance is now the longest since October 2021

Monday's gain may have been infinitesimal, but the iShares Edge MSCI USA Momentum Factor ETF (MTUM) rose 0.03%, its seventh consecutive rise and longest advance since October 21, 2021.

BlackRock, which sponsors the momentum ETF, says it "seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks exhibiting relatively higher price momentum."

What happened after the longest such advance 10 months ago? The S&P MidCap 400 Index went on to reach an all-time high in mid-November 2021 (as did the Nasdaq Composite) while the S&P 500 record came less than three months later, in early January 2022.

Scott Schnipper, Christopher Hayes

Stocks gain, Dow closes above 200-day moving average

Stocks closed higher to start the week with the Dow Jones Industrial Average gaining 151.39 points, or 0.45%, to close at 33,912.44 and above its 200-day moving average for the first time since April 20.

The S&P 500 added 0.4% to settle at 4,297.14, while the Nasdaq Composite gained 0.62% to 13,128.05.

— Samantha Subin

U.S. oil prices slip to levels last seen in February

Crude oil prices fell on Monday, slumping on disappointing Chinese economic data.

U.S. West Texas Intermediate crude settled down 2.9%, ending the day at $89.41 per barrel. Prices slumped as low as $86.82 during the day, the lowest level since Feb. 3.

Brent crude futures ended the day 3.1% lower at $95.10 a barrel. The benchmark fell as low as $92.78, the lowest level since Aug. 5.

The slide in oil prices coincides with China's central bank cutting its interest rates, raising worries around Beijing's economic recovery.

-Darla Mercado, Gina Francolla

Unity shares slide nearly 7% after board rejects AppLovin bid

Shares of Unity Software slumped nearly 7% on news that the company's board rejected AppLovin's bid to acquire the company for $58.85 a share.

Unity said Monday that the deal was "not in the best interests of Unity shareholders" and called on shareholders to vote for its plan to acquire mobile advertising tech firm IronSource for $4.4 billion.

— Samantha Subin

Final hour of trading begins

Stocks held onto their gains heading into the final hour of trading on Monday. The Dow was last up more than 150 points, or 0.46%, while the S&P 500 and Nasdaq Composite traded 0.42% and 0.62% higher, respectively.

Most sectors stayed in positive territory, aside from materials and energy. Consumer discretionary and consumer staples led the rally, up nearly 1% each.

— Samantha Subin

Warner Bros. Discovery shares slide 3% amid HBO Max job cuts

Shares of Warner Bros. Discover fell more than 3% on Monday following news that it's cutting 14% of its staff at HBO Max, or 70 jobs, as it looks to cut costs following its April merger.

Most of the cuts come from the casting, acquisitions, and reality TV departments.

— Samantha Subin

Elliott Management takes stake in Cardinal Health

Shares of Cardinal Health ticked up just more than 1% Monday after the Wall Street Journal reported that activist investor Elliott Management had taken a large stake in the company.

Elliott had nominated five directors to the health care company's 11-person board two weeks ago. That was before the company replaced its CEO. The investor's intentions in taking the stake are not yet clear, according to the article.

— Carmen Reinicke

Dow reaches key level

The Dow Jones Industrial Average did something Monday it hadn't done in months.

For the first time since April 21, the 30-stock average broke above its 200-day moving average. If it closes above that mark — something it hasn't done since April — it could add another feather to the cap of those betting that the market bottom is in.

Stocks have been on a tear lately, with the Dow surging 13% since hitting a June closing low of 29,888.78.

Fred Imbert, Gina Francolla

Airline stocks bounce

Airlines stocks rose on Monday, led by shares of United, Delta and Southwest, which jumped at least 2% each. American Airlines and JetBlue both gained more than 1%.

— Samantha Subin

Dow rises 100 points, stocks cut earlier losses

Stocks bounced on Monday after kicking off the session in negative territory.

The Dow cut its earlier losses, rising more than 100 points, or 0.3%, on Monday after falling nearly 180 points earlier in the session. The S&P 500 and Nasdaq Composite gained 0.22% and 0.4%, respectively, after beginning the session lower.

Consumer staples added nearly 1%, boosted by names like Procter & Gamble, Hershey and Coca-Cola, while communication services and consumer discretionary also moved higher. Tesla shares gained 3%, pulling technology higher.

— Samantha Subin

Market pause is 'perfectly normal' after four-week win streak, Carson Group's Detrick says

Monday's market moves are nothing out of the ordinary coming off of four weeks of consecutive gains for stocks, says Ryan Detrick, chief market strategist at the Carson Group.

"After the first four-week win streak of the year for stocks, a little pause to refresh is perfectly normal," he said.

The moves signal more of a midcycle slowdown versus the onset of a recession, Detrick said, pointing to the strong labor market and signs of peaking inflation despite slowdown fears in China and disappointing New York manufacturing activity.

— Samantha Subin

Bed Bath & Beyond jumps 12% as meme stock revival continues

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The retail trading frenzy around Bed Bath & Beyond is not slowing down.

Shares of the company were up more than 12% on Monday morning, bringing its August gains to nearly 200%.

There have already been nearly 50 million shares of the stock traded today, according to FactSet. From April to June of this year, Bed Bath & Beyond had zero trading days with that much volume.

Many large funds have bet against Bed Bath & Beyond. Nearly half of the company's stock is sold short, according to FactSet.

— Jesse Pound

The odds of a soft landing are increasing, Credit Suisse's Golub says

The recent market rally has further room to run, Credit Su