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Dow closes 200 points higher on Monday, as Microsoft lifts indexes: Live updates

Traders work on the floor of the New York Stock Exchange (NYSE) on November 02, 2023 in New York City. 
Spencer Platt | Getty Images

Stocks jumped Monday to start a holiday shortened week, boosted by strong tech gains led by Microsoft and Nvidia.

The Dow Jones Industrial Average gained 203.76 points, or 0.58%, to close at 35,151.04 . The S&P 500 added 0.74% and ended at 4,547.38, while the Nasdaq Composite climbed 1.13% to close at 14,284.53. It was the fifth consecutive day of gains for the S&P 500 and the tech-heavy Nasdaq.

Microsoft shares were up 2%, reaching a new 52-week high, after CEO Satya Nadella said former OpenAI chief Sam Altman will be joining the tech giant to lead a new AI research team.

Chipmaker Nvidia also added 2.3%, closing at an all-time high for the stock ahead of its earnings report Tuesday afternoon.

The tech and communication services sectors were the biggest gainers in the S&P 500, up 1.5% and 1%, respectively. Palo Alto Networks jumped 5.2%, while Intel climbed 2.1%. Meanwhile, Paramount rose 5.6%, followed by Netflix, which gained 1.8%.

U.S. markets will be closed Thursday due to the Thanksgiving holiday. Friday will also be a shortened trading day. Trading around the Thanksgiving holiday has been choppy in recent years, but November is still the best-performing month for the S&P 500, according to the Stock Traders' Almanac.

Market bulls remain enthusiastic into year-end, particularly after cooler-than-expected U.S. inflation data released last week calmed investors' nerves about stubbornly high prices and provided a hopeful indication that the Federal Reserve could stop raising interest rates. Yields also continued their decline on Monday following a strong auction on 20-year Treasury notes.

"One of the things that's fueled this recent rally from the end of October and today has been about a half-a-percent drop in Treasury yields, that obviously supports asset values," said Tom Hainlin, senior investment strategist at Ascent Private Capital Management of U.S. Bank.

To be sure, he noted that fiscal spending and deficit issues put the risk of upward pressure on yields.

"So we still see volatility in the bond market, but so far the drop in yields has really supported those riskier asset prices, [which] will be a key focal area for us in 2024," Hainlin added.

Wall Street will also keep an eye on the latest Fed minutes, which are scheduled to be released Tuesday.

Stocks closer higher Monday

U.S. stocks ended Monday's session in the green.

The Dow Jones Industrial Average added 203.76 points, up 0.58%, to close at 35,151.04.

The S&P 500 gained 0.74% and closed at 4,547.38. The tech-heavy Nasdaq Composite added 1.13% to close at 14,284.53.

— Hakyung Kim

Monday sees low trading volume

Monday has marked a relatively quiet start to the holiday-shortened trading week.

With less than an hour left in the session, about 43.3 million shares in the SPDR S&P 500 ETF Trust (SPY) have traded hands. By comparison, nearly 83.2 million shares were exchanged on Friday. (The ETF tracks the broad S&P 500 index.)

The low volumes kick off a shorter trading week than usual, with the market dark on Thursday for Thanksgiving and closing early on Friday. Still, trading has been choppy around Thanksgiving in recent years.

— Alex Harring

Oil prices rise more than 2% as market anticipates OPEC cuts

Oil prices rose more than 2% on Monday amid anticipation that the Organization of Petroleum Exporting Countries could implement another production cut this weekend.

The global benchmark Brent crude contract for January rose $1.71, or 2.12%, to settle at $82.32 a barrel, while the West Texas Intermediate contract for December increased $1.71, or 2.25%, to settle at $77.60 a barrel.

Oil has gained for two sessions in a row now after rapid selloff late last week on supply and demand concerns.

Traders are now eying whether OPEC and its allies will implement additional production cuts at a meeting Sunday in response to the drop in oil prices.

— Spencer Kimball

Treasury auctions between now and the end could push yields higher, Wolfe Research says

Treasury yields could reverse course higher before the end of 2023 thanks to forthcoming auctions, according to Wolfe Research.

"In our view, the Treasury's 4Q refunding plan only provides temporary relief for concerns about supply/demand imbalances," Wolfe Research chief investment strategist Chris Senyek wrote in a Monday note. "More episodes like the most recent 30-year treasury auction have the potential to push rates higher between now and year end."

— Brian Evans

Gas prices are falling and could hit lowest Thanksgiving price since 2020

U.S. drivers could see the cheapest prices for a gallon of gas on Thanksgiving since 2020.

The price for a gallon in the U.S. has fallen for nine weeks now and is on the longest downward streak since the summer of 2022, according to GasBuddy.

By Thursday, the price of gas could hit $3.25 which would be the lowest level on Thanksgiving since 2020 when the pandemic crushed demand.

There are already 11 states where gas is currently below $3 a gallon, according to AAA and GasBuddy.

Prices are falling due to softening demand which is normal this time of year, but also as a consequence of the decline in crude oil prices in recent weeks.

The meeting of the Organization of Petroleum Exporting Countries on Sunday could determine where gas prices go next. There is growing speculation that OPEC could implement further production cuts.

-- Spencer Kimball

Nvidia stock hits all-time high ahead of earnings report

Nvidia stock climbed more than 2% during Monday's session, trading at its most-expensive level ever.

Monday's record-breaking advance comes as investors prepare for the chip maker's earnings report expected Tuesday after the bell. Analysts polled by FactSet expect the company to report $16.19 billion in revenue and $3.37 in earnings per share for the third quarter.

The high comes amid a banner year for the stock, with shares up more than 240% since the start of 2023.

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Nvidia shares hit all-time high

— Alex Harring

Expect 'continued volatility' this holiday quarter, KeyBanc Capital Markets says

KeyBanc Capital Markets expects "continued spending volatility" this holiday season, holding a cautious near-term view on the consumer ahead of Black Friday.

"Broadly, we believe the consumer will likely show up for the Black Friday weekend and the pre-Christmas shopping period," analyst Bradley B. Thomas wrote in a Monday note. "However, we believe the consumer will increasingly shop sales events as they look for deals and bargains"

According to Thomas, spending volatility this holiday quarter will most notably occur in home furnishings, furniture, mattress and consumer electronics segments. Companies including Best Buy, Big Lots, RH and Wayfair could therefore see a slump, he said.

The firm said it has seen weakness in discretionary spending in recent months, particularly as consumers remain pressured by stubbornly high inflation, geopolitical uncertainty, the resumption of student loan payments this fall and tightening consumer credit markets, among other factors.

— Pia Singh

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