US close: Stocks higher as traders await FOMC decision, tech earnings

(Sharecast News) - Major indices closed higher on Monday as market participants braced for a big week in terms of both corporate earnings and monetary policy.

At the close, the Dow Jones Industrial Average was up 0.64% at 49,412.40, while the S&P 500 advanced 0.50% to 6,950.23, and the Nasdaq Composite saw out the session 0.43% firmer at 23,601.36.

The Dow closed 313.69 points higher on Monday, erasing losses recorded in the previous session.

US stocks traded higher on Monday after what was a soft week for major indices, as heightened geopolitical tensions weighed on sentiment before easing late in the week following Donald Trump's announcement of a "framework" for a deal over Greenland.

Trump's threat to impose a 100% tariff on Canadian imports if it makes a trade deal with China were also in focus, with Canadian Prime Minister Mark Carney stating he had "no intention" of striking a free trade deal with Beijing.

Traders were also looking to Washington amid growing outrage over federal immigration agents fatally shooting a US citizen in Minnesota for the second time this month. In response, several Democratic senators said they would not approve a $1.2trn funding package if it includes an allotment for Homeland Security, potentially leading to another federal government shutdown.

Investors will now shift their attention to the Federal Reserve this week, with the central bank due to deliver its first policy decision of the year on Wednesday. The Fed was widely expected to leave its benchmark overnight rate unchanged, but traders will be watching closely for any signals on the timing of future cuts.

On the macro front, US durable goods orders rose 5.3% in November, according to the Census Bureau, bouncing back from a revised 2.1% decline in October and beating expectations for a more modest 3.7% increase. November's gain was primarily due to a sharp rebound in transportation equipment orders, which surged 14.7% following a 6.3% drop in October, driven by a 97.6% surge in civilian aircraft bookings. Excluding transportation, however, new orders ticked up just 0.5% after a 0.1% gain in October. Orders excluding defence shot up 6.6%, reversing a 1.3% decline in October.

Elsewhere, the Chicago Federal Reserve's national activity index improved to 0.04 in November up from October's ten-month low of 0.42 and pointing to a pickup in US economic activity. The production component swung to a +0.08 contribution from a 0.26 reading in October, while sales, orders and inventories held steady at 0.03. Employment indicators contributed 0.07, compared with 0.11 in the prior month, and the personal consumption and housing category edged up to 0.02 from 0.03. The CFNAI diffusion index, a threemonth moving average, also strengthened, improving to 0.24 in November, up from 0.43 in October.

Finally, the Dallas Fed's manufacturing business index increased by ten points to -1.2 in January, reversing December's contraction, while the outlook index returned to positive territory at 2.9, pointing to improvemed perceptions of broader business conditions.

No major corporate earnings were slated for release on Monday, but 'Magnificent Seven' constituents Apple, Meta Platforms and Microsoft will all report earnings before the end of the week.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Cisco Systems Inc. (CSCO) $77.01 4.24%

Apple Inc. (AAPL) $255.41 3.85%

Microsoft Corp. (MSFT) $470.28 3.50%

Caterpillar Inc. (CAT) $635.92 1.48%

Travelers Company Inc. (TRV) $281.71 1.44%

Goldman Sachs Group Inc. (GS) $931.86 1.41%

International Business Machines Corporation (CDI) (IBM) $296.33 1.33%

McDonald's Corp. (MCD) $312.95 1.20%

JP Morgan Chase & Co. (JPM) $301.04 1.12%

Home Depot Inc. (HD) $386.53 0.72%

Dow Jones - Fallers

3M Co. (MMM) $159.52 -1.94%

Boeing Co. (BA) $248.43 -1.48%

Unitedhealth Group Inc. (UNH) $351.64 -1.30%

Merck & Co. Inc. (MRK) $107.40 -0.72%

Procter & Gamble Co. (PG) $149.49 -0.44%

Coca-Cola Co. (KO) $72.56 -0.44%

Dow Chemical Co. (DOW) $28.18 -0.25%

Nike Inc. (NKE) $64.99 -0.08%

S&P 500 - Risers

KLA-Tencor Corp. (KLAC) $1,543.03 6.25%

Arista Networks Inc. (ANET) $143.72 5.41%

Cisco Systems Inc. (CSCO) $77.01 4.24%

Gilead Sciences Inc. (GILD) $137.78 4.13%

Lam Research Corp. (LRCX) $222.87 3.88%

Apple Inc. (AAPL) $255.41 3.85%

Microsoft Corp. (MSFT) $470.28 3.50%

ConAgra Brands Inc (CAG) $18.09 3.37%

Tyson Foods Inc. (TSN) $63.73 3.36%

Amphenol Corp. (APH) $155.56 3.03%

S&P 500 - Fallers

Darden Restaurants Inc. (DRI) $196.43 -4.72%

Alexandria Real Estate Equities Inc. (ARE) $57.16 -4.24%

Coty Inc. Class A (COTY) $3.22 -4.17%

Target Corp. (TGT) $103.96 -3.83%

Advanced Micro Devices Inc. (AMD) $251.31 -3.62%

Apache Corp. (APA) $25.40 -3.57%

Bath & Body Works, Inc. (BBWI) $21.45 -3.38%

Jack Henry & Associates Inc. (JKHY) $182.94 -3.33%

Tapestry Inc. (TPR) $126.18 -2.97%

Nektar Therapeutics (NKTR) $37.18 -2.90%

Nasdaq 100 - Risers

KLA-Tencor Corp. (KLAC) $1,543.03 6.25%

Liberty Global plc Series A (LBTYA) $10.88 5.07%

Liberty Global plc Series C (LBTYK) $10.84 4.53%

Cisco Systems Inc. (CSCO) $77.01 4.24%

Gilead Sciences Inc. (GILD) $137.78 4.13%

Lam Research Corp. (LRCX) $222.87 3.88%

Apple Inc. (AAPL) $255.41 3.85%

Microsoft Corp. (MSFT) $470.28 3.50%

Asml Holdings N.V. (ASML) $1,413.35 3.43%

Mercadolibre Inc. (MELI) $2,212.62 3.05%

Nasdaq 100 - Fallers

Baidu Inc. (BIDU) $156.08 -3.49%

Qvc Group Inc Series A (QVCGA) $10.28 -2.93%

Tesla Inc (TSLA) $435.20 -2.43%

J.B. Hunt Transport Services Inc. (JBHT) $205.11 -2.40%

Analog Devices Inc. (ADI) $304.01 -2.24%

Fastenal Co. (FAST) $43.73 -2.16%

DENTSPLY Sirona Inc. (XRAY) $12.72 -2.08%

QUALCOMM Inc. (QCOM) $154.52 -1.78%

Expedia Group Inc. (EXPE) $269.49 -1.74%

American Airlines Group (AAL) $14.57 -1.39%