Stocks held strong gains, leaving the S&P 500-stock index on track to finish with its first advance of the new year.
The S&P 500 added 11 points, or 0.6%, to 1838, with health-care and technology shares leading gains in nine of 10 sector groups. The Nasdaq Composite Index gained 37 points, or 0.9%, to 4151.
The S&P 500 added 11 points, or 0.6%, to 1838, with health-care and technology shares leading gains in nine of 10 sector groups. The Nasdaq Composite Index gained 37 points, or 0.9%, to 4151.
"Volumes are still on the light side for the start of the year," said Stephen Carl, head of U.S. equity trading at Williams Capital Group in New York. "It's still early in the week and early in the year, and it seems a lot of traders are waiting for the first round of big economic numbers," he said.
In economic news, the trade deficit for November narrowed to $34.25 billion on the month from a revised $39.33 billion in October, versus expectations of $40 billion, as exports increased to record levels and imports declined. November's deficit was the smallest since October 2009.
"Stocks were lower in the first few days of the year as investors took some profits," said Joseph Tanious, global market strategist at J.P. Morgan Asset Management, which oversees $1.5 trillion in assets. "For tax purposes, some investors waited until the new year, but the economic backdrop remains favorable for stocks," Mr. Tanious said. He sees industrial, consumer-discretionary and financial stocks leading the market higher this year.
The yield on the 10-year Treasury note fell to 2.941% from 2.962% late Monday, as prices rose.
Investors are still looking ahead to a reading on private-sector jobs growth and the minutes to the Federal Reserve's December policy meeting due out on Wednesday, and the government's monthly employment report due Friday.
If economic growth comes better than expected it should drive revenue and profit growth,and also a continuing rally on stocks.
Source: WSJ
