(Reuters) – US stocks rose on Monday, with banking stocks leading the third day of consecutive gains after solid US labor data last week helped investors ignore business concerns .
The S & P financial index rose 1.3 percent, providing the biggest boost to the S & P core index. But the gains were widespread, with technology, energy, industries, discretionary consumption and health care stocks on the rise.
The United States and China pledged their tariffs on an eye-to-stone basis on Friday, with both countries imposing rights worth $ 34 billion on each other's assets. But the S & P 500 index closed up 0.84 percent on Friday, as many analysts said the measure already had a price, but warned that a further escalation could reduce appetite for stocks.
China's securities regulator said on Sunday it plans to relax restrictions on foreign investment in shares listed on the Shanghai or Shenzhen stock exchanges to attract more foreign capital and support the economy.
Sentiment was largely optimistic after the US payrolls report on Friday showed moderate wages and more people looking for work, raising optimism that the Federal Reserve would remain on a path of gradual increases in rates of interest.
"Last Friday's gains put a positive patina on what would otherwise be an unimpressive week for equity investors," wrote Peter Kenney, senior market strategist at Global Markets Advisory Group in New York. .
"That tone could serve investors well this week when we start the second quarter earnings season."
At 9:49 a.m. ET, the Dow Jones industrial average rose 193.11 points, or 0.79 percent, to 24,649.59, the S & P 500 rose 15.33 points, or 0.56 percent, to 2,775.15 and the Nasdaq Composite rose 46.97 points, or 0.61 percent to 7,735.36.
All eyes will be on the second quarter earnings reports, with JPMorgan, Wells Fargo and Citigroup banks scheduled to report on Friday.
S & P 500 companies are expected to report a 21 percent growth in earnings per share for the June quarter, according to Thomson Reuters I / B / E / S. But the focus will be on any warning that the Companies can give on the impact of commercial rates.
US-listed shares of Chinese companies Alibaba, JD.com and Baidu rose after KeyBanc's recommendations on the shares.
Tesla rose 1.6 percent after the Electrek automotive news website reported that the company raised the prices of its Model X and S cars by more than $ 20,000 in China because of the rates.
Groupon rose 8.8 percent after a Recode report reported that the operator of the daily deals website was looking for a buyer.
Advanced issues outnumbered casualties by a 2.53 to 1 ratio on the New York Stock Exchange and a 2.16 to 1 ratio on the Nasdaq.
The S & P index recorded 17 new highs of 52 weeks and no new lows, while the Nasdaq posted 97 new highs and six new lows.
Report of Sruthi Shankar in Bengaluru; Edition by Shounak Dasgupta