By Dan Strumpf
Stocks pushed farther into record territory Monday, as investors
continued to digest upbeat economic data and improving corporate
profits.
The Dow Jones Industrial Average gained 39.81 points, or 0.2%,
to 17613.74, notching its 23rd record close of the year. The
S&P 500 advanced 6.34, or 0.3%, to 2038.26, its 39th record
finish of 2014.
Traders reported a quiet session with restrained buying
following Friday's jobs report, which showed that U.S. employers
added jobs at a moderate pace for another month in October. The
data lifted stocks and further extended a rally in equities that
investors widely attribute to the Federal Reserve's easy-money
policies, a slow but steadily improving economy and improving
corporate earnings.
Brian Fenske, head of sales trading at brokerage ITG, said that
while "companies are by no means knocking the cover off the ball"
in their recent quarterly earnings reports, "the mood is that
things are OK...people still like stocks broadly as an asset
class."
The Nasdaq Composite Index gained 19.08 points, or 0.4%, to
4651.62.
With the third-quarter earnings season winding down, investors
are widely expect to keep their attention in the coming months
fixed on the Federal Reserve for hints on when the central bank
might begin raising short-term interest rates. Many investors said
that October's jobs report did little to shift their perception
when the interest-rate increase will occur, expected sometime next
year.
Many investors say the slowing economy in Europe and flagging
growth in China make investing in U.S. companies the safest
bet.
"The divergence of the U.S. economic outlook and the rest of the
world is pretty stark," said Jerry Braakman, chief investment
officer of First American Trust, which manages $1.1 billion. "On a
relative basis, the U.S. is the best place to be."
Crude-oil futures shed 1.6% to $77.40 a barrel, extending a
decline that has sent prices tumbling 28% from their recent highs
of late June. The decline has dented energy stocks and led
investors to reassess the implications of cheaper oil on corporate
outlooks.
Oil-sensitive stocks fell, with shares of Chevron down 0.7% and
Exxon Mobil easing 0.3%.
Mr. Braakman said he continues to own stakes in U.S.-based
energy companies, including shares of service companies, which he
said still should see strong business despite the oil-price slide.
He said he also owns technology and health-care stocks.
Chinese shares posted their biggest daily percentage gain since
July after Chinese regulators said Shanghai's stock market would
open up to overseas investors on Nov. 17, through the launch of a
trading link between Hong Kong and Shanghai.
The Stoxx Europe 600 rose 0.7%. Two million Catalans voted in
favor of independence from Spain on Sunday in a symbolic,
nonbinding exercise. In September, Scottish voters voted against
separating from the U.K.
In commodities markets, gold futures fell 0.9% to $1159.60 an
ounce.
No major economic-data reports were released Monday. Later in
the week, investors will get a reading on retail sales in October
and a preliminary gauge of consumer sentiment in November.
Katrina Lamb, head of investment strategy and research at MV
Financial, which manages about $500 million, said she is looking
ahead to the coming holiday sales season to help guide stocks
through the end of the year.
"You've got a good economic story here in the U.S.," Ms. Lamb
said. "In the absence of anything negative, you could look for
something positive in holiday sales."
Investors also will get a late batch of quarterly earnings
reports in the week ahead. Earnings updates of note this week
include retailers such as Macy's Inc. and Wal-Mart Stores Inc.
Companies in the S&P 500 are on track to post earnings growth
of 8% in the third quarter, according to FactSet.
In corporate news, home builder Toll Brothers Inc. said
preliminary revenue in the quarter ended Oct. 31 rose 29% to $1.35
billion, topping expectations. Shares rose 2.4%.
Shares of GoPro Inc. fell 4.2%. The maker of portable cameras
filed plans Monday for an offering of $800 million in shares after
raising $491 million in its initial public offering in June.
The yield on the benchmark 10-year Treasury note rose to 2.359%.
Prices declined amid a new supply of $66 billion in government
bonds. The U.S. bond market will be closed Tuesday for Veterans
Day.
Write to Dan Strumpf at daniel.strumpf@wsj.com