U.S. stocks snapped a five-day losing streak to close higher Monday as technology shares rallied, offsetting some of the gloom from Boeing Co.’s woes. Shares of Boeing BA, -5.33% had their worst day in nearly five months, falling 5.3%, at session lows, the Dow’s most heavily weighted companyâ€˜s stock was down more than 13%, subtracting 152.77 points from the Dow on the day.
Boeing has delivered about 350 of its best-selling 737 Max planes, with orders for more than 5,000 more.
Last week, Boeing Chief Executive Officer Dennis Muilenburg told an aviation conference that purchases of his company’s planes by China could be part of a trade deal being hammered out by the two countries, Reuters reported. U.S. and Chinese officials have cited progress in trade negotiations, but the market is still waiting for news of hard details or a concrete deal.
Federal Reserve Chairman Jerome Powell played down worries over the economy in an interview with “60 Minutes” on Sunday, saying “there is no reason why this economy cannot continue to expand.”
Retail sales rose 0.2% in January, above the 0.1% previously. More disappointing, December’s 1.2% drop was revised even lower to a 1.6% decline, marking the largest fall in nearly 10 years.
Business inventories in the U.S. rose 0.6% in December, the Commerce Department said, while reporting that sales fell 1%.
U.S. consumers expect prices to rise more slowly in the short and medium term, the Federal Reserve said Monday. Median inflation expectations at both the one- and three-year time horizons fell by 0.2% to 2.8%, after having been unchanged since last April.
The Dow Jones Industrial Average DJIA, +0.79% rose 200.64 points, or 0.8%, to 25,650.88. The blue-chip index had fallen more than 200 points earlier in the session.
The S&P 500 SPX, +1.47% gained 40.23 points, or 1.5%, to 2,783.30, with the information technology sector up 2.2%. The Nasdaq Composite Index COMP, +2.02% climbed 149.92 points, or 2%, to 7,558.06, logging its best day on a percentage basis since Jan. 30.
Stocks in focus
Shares of Tesla Inc. TSLA, +2.39% rose 2.4% after the electric-car maker reversed a decision to close most of its physical stores and move to online sales and to cut prices of the autos by 6%.
Shares of Apple Inc. AAPL, +3.46% gained 3.5% after an analyst at Bank of America upgraded the stock to buy from neutral.
The ICE Dollar Index DXY, -0.13% edged lower, while gold prices GCJ9, +0.26% settled lower, and oil priced CLJ9, +0.48% gained more than 1%.
original source: MarketWatch