All three major domestic equity indexes rose to record closing highs on Monday, with the Dow Jones Industrial Average less than 50 points below 23,000, ahead of a long list of earnings this week and as financial shares recovered from last week’s losses.
JPMorgan Chase and Bank of America led day’s gains in bank stocks, tracking a climb in Treasury yields, which benefits banks. JPMorgan chalked up again for the day of 2.1 percent, while Bank of America closed 1.6 percent higher.
The S&P 500 financial index rose 0.6 percent after three days of losses. Shares of banks mostly slipped last week after they reported results.
Netflix chalked up a gain of 1.6 percent during the session and rose another 2 percent after the bell following the release of its results. Apple gained 1.8 percent following a bullish brokerage call on the company.
The reporting period heats up this week, and with the S&P 500 already up 14 percent this year, investors are hoping results and guidance will justify the relatively high valuation of stocks.
Investors will keep a close eye on the Senate, which is trying this week to pass a partisan budget blueprint that would help guide federal spending. The Republicans want to use the “budget resolution” to pave the way for the party later this year or next year to pass a major tax-cut bill without any Democratic support.
S&P healthcare was among the day’s largest laggards, resulting in the healthcare index falling 0.4 percent.
Approximately 5.5 billion shares changed hands on the major domestic equity exchanges, as compared to the 5.9 billion share daily average for the past 20 trading days, according to Thomson Reuters data.