STORY: Wall Street ended higher on Monday, with growth stocks staging a late-day rally after Twitter agreed to be bought by billionaire Elon Musk.
The Dow finished seven tenths of a percent higher. The S&P 500 ended up half a percent, while the Nasdaq closed up well over a percent.
The S&P 500 had been trading in negative territory for much of the session but extended gains after Twitter's announcement.
Twitter surged after announcing the deal, which will shift control of the social media giant to the world's richest man.
Philip Palumbo is chief investment officer at Palumbo Wealth Management.
“Elon Musk is an incredible CEO, he is an incredible manager and one of the key parts of investing in stocks and great businesses is you got to buy into the manager, right? And there's nobody better out there, in my view than Elon Musk, and that's always been the case. I've always felt about it. The question is, can you really juggle three businesses, right? You got Space X. You have Tesla now. Maybe you have Twitter. And if he's great at delegation, much like Warren Buffett is, many the businesses that he owns and maybe can be a success. I think it's pure speculation at this point, I wouldn't be an investor, per se. But I do think it is... I'm much more optimistic about the business with Elon Musk behind the helm than the way it's positioned today."
Bleak results last week from Netflix along with surging bond yields hit growth stocks, but on Monday megacaps gained, including Facebook owner Meta Platforms, which is set post results on Wednesday, as well as Microsoft and Google-parent Alphabet, ahead of their quarterly reports expected on Tuesday.
Crude oil prices dropped almost 5% toward $100 a barrel on Monday, dragging down shares of the oil majors Chevron and ExxonMobil, as well as oilfield services companies Schlumberger and Halliburton.
And, finally, shares of Silicon Motion Technology jumped nearly 13% after a report said the chipmaker is exploring a sale.