Stocks on Wall Street rebounded in a choppy session Monday, after suffering their steepest weekly loss since March. The bounce-back came on the eve of the presidential election.
Tech stocks took a back seat as energy, materials, and industrials led the rally.
The Dow tacked on 1.6%. The S&P 500, which ended Friday near 6-week lows, shot up 1.2%, and the Nasdaq rose less than half percent.
First Franklin Financial Services chief market strategist Brett Ewing sees the S&P rising another 10% by year end regardless of who wins the election or which party rules the Senate.
“We have unlimited support from the Fed throughout the credit markets. On fiscal stimulus, no matter who wins, we’ll have some fiscal stimulus and something implemented in the next few months.”
Among the quarter of S&P 500 companies reporting earnings this week is Clorox. Shares of the maker of Clorox bleach, Glad plastic bags and Kingsford charcoal jumped after the company recorded its strongest quarterly sales growth in more than two decades and raised its full-year revenue forecast. Hygiene-obsessed consumers are snapping up everything from its disinfectants to water filters.
But fears over more trouble ahead from the health crisis drove down shares of airlines like Southwest and Delta and cruise operators Carnival and Norwegian Cruise Line.
Shares of Dunkin’ Brands soared. Arby’s owner Inspire Brands is buying the donut and ice cream chain operator for $8.8 billion in cash.