U.S. stocks climbed on Monday, building on a recent rally to record levels as investors remained optimistic about further CO VID stimulus and an economic recovery.
The Dow Jones Industrials came off their highs of the morning, but remained positive 121.89 points to 31,270.13, attaining a new record.
The S&P 500 jumped 13.15 to 3,899.98
The NASDAQ Composite climbed 66.03 points to 13,922.33. Both S&P and NASDAQ ran to new intraday highs.
Airline stocks jumped as Democrats’ proposal includes $14-billion for the airline payroll assistance. American Airlines popped 3.9%, while United climbed 4.5% and Delta rallied 4%. The package also includes $1,400 stimulus cheques, supplemental jobless benefits and COVID-19 vaccine and testing funds.
Another busy week of earnings is on deck with 78 S&P 500 components set to report quarterly results, including Twitter, GM, Coca-Cola and Disney. Of the 286 companies in the S&P 500 that have reported earnings for the fourth quarter, 83.6% topped analyst expectations.
Treasury Secretary Janet Yellen urged Congress on Sunday to pass President Joe Biden’s stimulus plan, saying if it does the U.S. could return to full employment by 2022.
The Senate and House each passed a budget resolution on Friday, starting the reconciliation process that would allow Biden’s $1.9-trillion rescue package to get through the Democratic-held Senate with a simple majority. The package includes $1,400 stimulus cheques, supplemental jobless benefits and COVID-19 vaccine and testing funds.
Biden has set a goal to administer at least 100 million COVID vaccine doses during his first 100 days in office, but he warned it will be very difficult to achieve herd immunity in the U.S. by the end of summer.
Prices for 10-Year Treasurys gained ground, lowering yields to 1.15% from Friday’s 1.17%. Treasury prices and yields move in opposite directions.
Oil prices added $1.03 to $57.88 U.S. a barrel.
Gold prices strengthened $24.60 to $1,837.60 U.S. an ounce.