U.S. stocks traded higher Monday, with the Nasdaq doing much of the heavy lifting ahead of Alphabet Inc.’s earnings release, as investors looked ahead to another round of quarterly results and developments in U.S.-China trade talks.
What are major indexes doing?
The Dow Jones Industrial Average DJIA, +0.35% rose 18 points to 25,082 but the blue chip index struggled to remain in positive territory after booking its sixth-straight weekly gains.
The S&P 500 index SPX, +0.45% gained 7 points, or 0.3%, to 2,713 and the Nasdaq Composite Index added 65 points, or 0.9%, to 7,328.
What’s driving the market?
Investors will continue to wade through corporate earnings this week, with 97 members of the S&P 500 on tap along with one Dow component, Walt Disney Co. DIS, +0.16% reporting Tuesday. Results from Google-parent Alphabet GOOG, +1.33% GOOGL, +1.51% are due for release after Monday’s closing bell.
Read: Disney and Alphabet highlight another big week of earnings
More broadly, stocks continued to capitalize on a more dovish Federal Reserve after the central bank last week signaled rate increases were on hold until further notice.
Read: Surprised by Fed’s dovish tilt, economists cut forecasts of future interest-rate hikes
Check out: Does Fed’s dovish turn signal further gains for stocks? Bond investors have doubts
U.S.-China trade talks will remain in focus as a March 1 deadline to avoid an increase on tariffs on Chinese imports looms. Upbeat comments by U.S. and Chinese officials have been credited with supporting stocks, but analysts said markets remain sensitive to headlines, with scrutiny likely to intensify as the deadline nears.
On the data front, U.S. factory orders fell by 0.6% in November, faster than the 0.2% drop expected by economists polled by MarketWatch.
At 7:30 p.m. Cleveland Fed President Loretta Mester, a nonvoting member of the Fed’s interest-rate setting committee, will speak.
What are analysts saying?
“We’re seeing a bit of consolidation of the recent gains,” Alec Young, managing director of global markets research at FTSE Russell told MarketWatch. “The market has been impressively resilient, and I think traders are now fixated on China trade and don’t want to make big bets until they get more clarity,” he said.
With the S&P 500 trading at 16 times projected 2019 earnings, “stocks are no bargain right now, and for it to go higher we need some assurance that headwinds from China will be less than expected,” he said.
“While there were good signs of the meeting between US and China last week, nothing concrete has been announced leaving the market vulnerable to antitrade statements,” said Alfonso Esparza, senior market analyst at Oanda, in a note.
Which stocks are in focus?
Shares of pizza chain Papa John’s International Inc. PZZA, +9.52% surged 9% after a $200 million investment by Starboard Value LP. Starboard Chief Executive Jeffrey Smith will also become chairman of the chain,according to people familiar with the matter.
Tesla Inc. TSLA, +0.79% rose 0.6% after the electric auto manufacturer announced it would acquire Maxwell Technologies Inc. MXW, +42.65% in a deal that would value the energy-solutions provider at $217.9 million.
Clorox Co. CLX, +4.76% shares rallied 7% after the consumer products company announced fiscal second-quarter earnings that surpassed Wall Street expectations.
Shares of Johnson Outdoors Inc. JOUT, -3.96% slid 3% after the seller of outdoor recreation equipment swung to a fiscal fourth-quarter loss, on a surprise decline in sales.
Sysco Corp. SYY, +4.99% climbed 4.6% after the food-products company announced fiscal second-quarter earnings that surpassed analysts predictions.
Shares of Ultimate Software Group Inc. ULTI, +19.68% soared 20% after it agreed to be bought by an investor group led by Hellman & Friedman in an all-cash deal valued at about $11 billion.
What are other markets doing?
Asian equities put in a mixed performance, with markets in several countries, including China and Korea, closed for Lunar New Year celebrations. Japan’s Nikkei 225 index NIK, +0.46% ended 0.5% higher.
European equities edged lower with the Stoxx 600 Europe index SXXP, +0.06% trading flat.
Oil futures CLH9, -1.23% were trading lower, while gold GCG9, -0.33% also lost ground. The ICE U.S. Dollar Index DXY, +0.27% which tracks the U.S. unit against a basket of six major rivals, edged up.
—William Watts contributed to this article
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