Stocks racked up commendable gains in light trade Monday, hauling both the S&P 500 and the Dow Jones industrial average further above their 50-day moving averages.
The session opened boosted by Saturday's announcement of more than $300 billion in long-term deals between U.S. manufacturers and Saudi Arabia, a set of bargains timed to correspond with President Trump's first trip to Saudi Arabia. The news lifted defense plays led by Boeing (BA), Lockheed Martin (LMT) and Raytheon (RTN), as well as National Oilwell Varco (NOV) and others. Boeing and Lockheed Martin ended up nearly 2%.
Ford (F) held its early gain, ending Monday up more than 2% after announcing it had replaced Chief Executive Mark Fields with Jim Hackett, the former CEO of Steelcase (SCS) who has headed Ford's Smart Mobility experimental operations unit. Fields held the CEO seat for three years. Ford shares have been in a 34-month decline.
The Nasdaq composite led, up 0.8%, as more than 10% of the Nasdaq 100 stocks climbed more than 2%. Autodesk (ADSK) led the Nasdaq 100, up more than 3% to a new high and adding to the 15% gain posted last week. Fiber optic telecom stocks posted the session's best gain among industries, boosted by a handful of analyst reports. Acacia Communications (ACIA), Applied OptoElectronics (AAOI) and Finisar (FNSR) each gained more than 10%.
Makers of medical software also scored high, skewed higher by a 23% gain by the thinly traded Polarityte (COOL). Group leader Veeva Systems (VEEV) is extended. But peer Cerner (CERN) is trading just below a 66.37 buy point in a four-weeks tight pattern.
The Dow Jones industrial average scaled up 0.5%. Cisco Systems (CSCO) led the index, rebounding 2% as it looked to salvage support at its 40-week moving average after diving 7% in gale-force volume last week.
Losses among blue chips were generally modest, Pfizer's (PFE) fell hardest among the Dow industrials, down 1%.
The S&P 500 scored a 0.6% gain. Jack Daniels distiller Brown Forman (BFB) ran atop the list with an 8% gain, clearing its prior high from August 2015.
Chipmaker Qorvo (QRVO) sped 4% higher and Intuitive Surgical (ISRG) jumped 3%, both taking new highs.
Defense consultant Booz Allen Hamilton (BAH) spiked 6%, possibly aided by Saturday's announcement of more than $300 billion in U.S-Saudi defense deals, but also because it reported first-quarter earnings and revenue above expectations, and hosted its full year revenue guidance past consensus targets. The gap up gain lifted shares just above a 37.79 buy point in a flat base.
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