US close: Dow Jones registers fresh record close on news of Iran deal

(Sharecast News) - Major indices closed higher on Monday as the holidayshortened trading week got off to a positve note, buoyed by news that Washington and Tehran had reached an agreement to end the war.

At the close, the Dow Jones Industrial Average was up 0.92% at 51,671.03, while the S&P 500 advanced 1.65% to 7,554.29 and the Nasdaq Composite saw out the session 3.07% firmer at 26,683.94.

The Dow closed 468.77 points higher on Monday, extending gains recorded in the previous session and registering a fresh record close.

Stocks closed higher after Trump said that a deal to end the conflict was "now complete", while Pakistan's prime minister Shehbaz Sharif added that a formal signing ceremony was expected to take place on Friday in Switzerland.

Trump also authorised the reopening of the Strait of Hormuz, a key shipping route, sending oil sharply lower in during the session, with West Texas Intermediate down 4.87% at $80.75 a barrel, while international benchmark Brent crude was 4.55% lower at $83.36 a barrel. Trump's announcement came amid renewed uncertainty over the weekend after exchanges of fire between Israel and Hezbollah raised doubts over whether the agreement would hold.

On the macro front, the New York Fed's Empire State Manufacturing Index dropped to 5.7 in June, down from 19.6 in May - sharply missing expectations and signalling a clear cooling in factory activity. Even so, several components of the survey continued to point to growth, with firms reporting modest increases in new orders, shipments and unfilled orders, while employment and the average workweek rose for a fifth straight month. Supplychain pressures persisted, however, as delivery times lengthened and availability of inputs deteriorated, and both input and selling prices remained elevated. Despite the softer headline reading, manufacturers were broadly optimistic about conditions over the coming months, suggesting they expect activity to stabilise after the nearterm slowdown.

Still on data, US capacity utilisation edged up to 76.2% in May, broadly in line with expectations, according to the latest Federal Reserve data. Manufacturing utilisation was little changed at 75.7%, remaining below its longrun average of 78.2%, while the operating rate for mining climbed 1.2 percentage points to 86.5%, comfortably above its historical norm. Utilities continued to lag, with utilisation falling to 70.6%, around 13 percentage points below its longrun average, underscoring weaker demand in the sector. Overall, the figures pointed to a modest improvement in industrial activity, driven largely by strength in mining rather than a broadbased pickup across the economy. Elsewhere, industrial production increased just 0.1% in May, a significant slowdown from April 0.9% increase, raising concerns about the underlying strength of the US manufacturing and utilities sectors.

Finally, builder confidence in the newhome market slipped again in June, with the National Association of Home Builders' index falling two points to 35, signalling continued softness in demand. Current sales conditions eased to 38, while expectations for the next six months held at 45 and buyer traffic was unchanged at 25. The survey also pointed to further signs of cooling, with 35% of builders cutting prices in June, up from 32% in May, and average reductions holding at 6%. Sales incentives were used by 62% of builders, marking the 15th straight month above 60%, underscoring pressure to stimulate demand in a sluggish market.

In the corporate space, Dave & Buster's Entertainment reported a drop in first quarter revenue and profits after the bell, weighed down by a 5.4% drop in comparable store sales, more than the 1.2% drop expected by analysts.

US markets will be closed on Friday for the Juneteenth holiday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Intel Corp. (INTC) $127.86 7.54%

Boeing Co. (BA) $228.95 4.52%

Microsoft Corp. (MSFT) $399.76 3.93%

American Express Co. (AXP) $335.38 3.05%

Caterpillar Inc. (CAT) $933.93 2.57%

Walt Disney Co. (DIS) $101.69 1.65%

Goldman Sachs Group Inc. (GS) $1,076.17 1.26%

Apple Inc. (AAPL) $296.42 0.71%

Travelers Company Inc. (TRV) $306.47 0.66%

Unitedhealth Group Inc. (UNH) $411.04 0.62%

Dow Jones - Fallers

Chevron Corp. (CVX) $180.40 -3.64%

Merck & Co. Inc. (MRK) $114.90 -3.49%

Johnson & Johnson (JNJ) $235.66 -2.16%

Verizon Communications Inc. (VZ) $47.07 -2.16%

Coca-Cola Co. (KO) $80.91 -2.07%

Dow Chemical Co. (DOW) $33.23 -1.83%

International Business Machines Corporation (CDI) (IBM) $268.71 -1.30%

Cisco Systems Inc. (CSCO) $120.17 -1.22%

Amgen Inc. (AMGN) $350.53 -0.83%

Salesforce.Com Inc. (CRM) $164.55 -0.81%

S&P 500 - Risers

Western Digital Corp. (WDC) $653.53 19.59%

Seagate Technology Plc (STX) $1,018.80 12.47%

Micron Technology Inc. (MU) $1,087.99 11.55%

Lam Research Corp. (LRCX) $388.92 8.72%

Advanced Micro Devices Inc. (AMD) $547.26 8.40%

Ipg Photonics Corp. (IPGP) $120.01 7.83%

Intel Corp. (INTC) $127.86 7.54%

Microchip Technology Inc. (MCHP) $100.32 7.36%

QUALCOMM Inc. (QCOM) $220.81 7.32%

Applied Materials Inc. (AMAT) $585.78 7.03%

S&P 500 - Fallers

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Truist Financial Corp. (TFC) $48.48 -6.16%

Helmerich & Payne Inc. (HP) $37.00 -5.73%

HF Sinclair Corporation (DINO) $67.25 -5.63%

Apache Corp. (APA) $34.77 -5.26%

Incyte Corp. (INCY) $101.98 -5.04%

Marathon Petroleum Corporation (MPC) $250.86 -4.83%

Kohls Corp. (KSS) $17.20 -4.76%

Wynn Resorts Ltd. (WYNN) $105.96 -4.69%

Sba Communications Corp. (SBAC) $195.82 -4.58%

Nasdaq 100 - Risers

Western Digital Corp. (WDC) $653.53 19.59%

Seagate Technology Plc (STX) $1,018.80 12.47%

Micron Technology Inc. (MU) $1,087.99 11.55%

Lam Research Corp. (LRCX) $388.92 8.72%

Intel Corp. (INTC) $127.86 7.54%

Microchip Technology Inc. (MCHP) $100.32 7.36%

QUALCOMM Inc. (QCOM) $220.81 7.32%

Applied Materials Inc. (AMAT) $585.78 7.03%

KLA-Tencor Corp. (KLAC) $256.42 6.74%

Booking Holdings Inc. (BKNG) $174.64 5.69%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Incyte Corp. (INCY) $101.98 -5.04%

Wynn Resorts Ltd. (WYNN) $105.96 -4.69%

Vodafone Group Plc ADS (VOD) $15.00 -2.69%

Dollar Tree Inc (DLTR) $112.88 -2.13%

Mondelez International Inc. (MDLZ) $61.50 -2.04%

J.B. Hunt Transport Services Inc. (JBHT) $283.16 -1.99%

Starbucks Corp. (SBUX) $101.59 -1.90%

Cintas Corp. (CTAS) $174.74 -1.52%

Ross Stores Inc. (ROST) $236.77 -1.38%