The Dow Jones Industrial Average achieved a landmark closing above 44,000 for the first time, while the S&P 500 exceeded 6,000, reaching a significant milestone as markets eagerly anticipated crucial inflation data and corporate earnings due later this week. On Monday, the Dow surged by 0.7% to settle at 44,293.1, while the S&P 500 and Nasdaq experienced a modest rise of 0.1% each, closing at 6,001.4 and 19,298.8, respectively.
The markets have shown a positive trajectory following Donald Trump's recent victory in the 2024 US presidential election, marking his anticipated return to the White House. Consumer discretionary stocks led the advancements on Monday, while the technology sector faced the most considerable decline. Expectations are high for official data revealing that US consumer inflation likely rose by 0.2% month-over-month and 2.4% year-over-year for October.
Notably, core inflation, which excludes the fluctuating food and energy costs, is projected to increase by 0.3%. Morgan Stanley noted, "However, we think the strength is in large part just short-run noise (amid a) temporary acceleration in cars due to the recent hurricanes and short-lived payback in shelter after the weak print in September." Additionally, official producer price data for the previous month is slated for release later this week. Several major companies plan to release their quarterly financial results, including Home Depot, Cisco, Walt Disney, and AstraZeneca. In the stock market, Tesla shares soared by 9% on Monday, marking the standout performer on both the Nasdaq and S&P 500.
Analysts at Wedbush Securities indicated that the electric vehicle manufacturer’s advancement in artificial intelligence would likely accelerate under a Trump administration. Cigna Group shares rose by 7.3%, becoming one of the top gainers on the S&P 500, following the health insurer's announcement that it is not pursuing a merger with Humana and is progressing towards its full-year earnings target.
Conversely, Humana shares experienced a 2% drop. Salesforce was recognized as the leading gainer on the Dow, up 6.1%, after Jefferies recalibrated its price target on the stock from $350 to $400 while maintaining a buy recommendation. AbbVie reported that its two phase 2 trials evaluating emraclidine in adult patients with schizophrenia and psychotic symptoms did not meet their primary objectives, leading to nearly a 13% decline in the company’s shares, marking the second-largest drop on the S&P 500. Celanese found itself among the laggards on the S&P 500, down 7.3%, following rating downgrades from UBS and BMO Capital. In commodity markets, West Texas Intermediate crude oil prices dipped by 3.1% to $68.17 per barrel as concerns over potential supply disruptions from storm Rafael in the Gulf of Mexico lessened, coupled with investor disappointment over China's recent stimulus measures. US bond markets remained closed on Monday in observance of Veterans Day. Gold fell by 2.4% to $2,629.80 per troy ounce, while silver decreased by 2.1% to $30.8 per ounce..