US open: Stocks trade higher on peace‑deal optimism, sharp drop in oil

(Sharecast News) - Major indices were firmly in the green early on Monday as traders prepared for a holidayshortened week, with the blue-chip Dow Jones opening at a fresh intraday record, buoyed by news that Washington and Tehran had reached an agreement to end the war, according to Donald Trump.

As of 1515 BST, the Dow Jones Industrial Average was up 1.05% at 51,740.96, while the S&P 500 advanced 1.50% to 7,542.90 and the Nasdaq Composite came out of the gate 2.36% firmer at 26,500.15.

The Dow opened 538.70 points higher on Monday, extending gains recorded in the previous session after Donald Trump said he had called off further strikes on Iran and claimed a peace deal between the two countries could be signed in the coming days.

Stocks traded higher after Trump said late on Sunday that the deal 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 early trading, with West Texas Intermediate down 5.17% at $80.49 a barrel, while international benchmark Brent crude was down 4.73% at $83.20 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 will report earnings after the close.

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

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Intel Corp. (INTC) $131.99 11.02%

Boeing Co. (BA) $227.27 3.75%

Microsoft Corp. (MSFT) $396.98 3.12%

Caterpillar Inc. (CAT) $937.07 2.93%

American Express Co. (AXP) $335.58 2.70%

Walt Disney Co. (DIS) $102.03 1.99%

Salesforce.Com Inc. (CRM) $168.25 1.82%

Goldman Sachs Group Inc. (GS) $1,081.69 1.75%

Home Depot Inc. (HD) $332.68 1.56%

3M Co. (MMM) $160.75 1.53%

Dow Jones - Fallers

Dow Chemical Co. (DOW) $32.37 -4.37%

Chevron Corp. (CVX) $179.45 -3.79%

Merck & Co. Inc. (MRK) $115.15 -3.12%

Coca-Cola Co. (KO) $80.98 -1.89%

Johnson & Johnson (JNJ) $237.14 -1.33%

Unitedhealth Group Inc. (UNH) $403.77 -1.05%

Verizon Communications Inc. (VZ) $47.62 -1.03%

International Business Machines Corporation (CDI) (IBM) $270.25 -0.73%

Cisco Systems Inc. (CSCO) $121.08 -0.47%

Amgen Inc. (AMGN) $352.58 -0.31%

S&P 500 - Risers

Western Digital Corp. (WDC) $648.41 19.11%

Seagate Technology Plc (STX) $1,009.65 12.51%

TripAdvisor Inc. (TRIP) $13.57 12.19%

Intel Corp. (INTC) $130.39 11.02%

Advanced Micro Devices Inc. (AMD) $554.01 10.45%

KLA-Tencor Corp. (KLAC) $261.33 9.42%

QUALCOMM Inc. (QCOM) $224.63 9.11%

Lam Research Corp. (LRCX) $388.69 9.05%

Micron Technology Inc. (MU) $1,065.47 8.75%

Applied Materials Inc. (AMAT) $592.08 8.31%

S&P 500 - Fallers

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

Valero Energy Corp. (VLO) $243.03 -5.67%

HF Sinclair Corporation (DINO) $67.47 -4.95%

Exxon Mobil Corp. (XOM) $139.71 -4.72%

ConocoPhillips (COP) $110.94 -4.72%

Marathon Petroleum Corporation (MPC) $251.21 -4.54%

LyondellBasell Industries (LYB) $62.03 -4.30%

Occidental Petroleum Corp. (OXY) $54.21 -4.05%

Apache Corp. (APA) $35.10 -4.03%

Phillips 66 Common Stock (PSX) $172.24 -3.91%

Nasdaq 100 - Risers

Western Digital Corp. (WDC) $648.41 19.11%

Seagate Technology Plc (STX) $1,009.65 12.51%

Intel Corp. (INTC) $130.39 11.02%

KLA-Tencor Corp. (KLAC) $261.33 9.42%

QUALCOMM Inc. (QCOM) $224.63 9.11%

Lam Research Corp. (LRCX) $388.69 9.05%

Micron Technology Inc. (MU) $1,065.47 8.75%

Applied Materials Inc. (AMAT) $592.08 8.31%

Microchip Technology Inc. (MCHP) $99.97 6.97%

American Airlines Group (AAL) $15.61 5.81%

Nasdaq 100 - Fallers

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

Incyte Corp. (INCY) $104.06 -3.48%

Vodafone Group Plc ADS (VOD) $15.04 -2.27%

Illumina Inc. (ILMN) $162.36 -2.22%

Dollar Tree Inc (DLTR) $113.56 -2.14%

Wynn Resorts Ltd. (WYNN) $108.85 -2.10%

Biogen Inc (BIIB) $196.88 -1.65%

Gilead Sciences Inc. (GILD) $124.07 -1.40%

J.B. Hunt Transport Services Inc. (JBHT) $284.11 -1.18%

Starbucks Corp. (SBUX) $102.50 -1.03%