U.S. stocks rose Monday ahead of manufacturing data that could offer fresh insights into the pace of the global economic recovery.
The S&P 500 advanced 0.3%, pointing to further gains for the broad-market index after closing out its best month since November. The Dow Jones Industrial Average climbed 0.6%, while the Nasdaq Composite Index increased 0.5%.
Investors are cheering signals that economic growth is picking up in most developed countries, with companies’ earnings growth and positive outlook adding to the optimism. At the same time, money managers are assessing the continued spread of Covid-19 in many parts of the world, and trying to gauge the outlook for inflation, which could erode the value of investment returns.
“There is a thin balance between all the positives such as earnings momentum, the reopening, the rollout of vaccines and some limiting factors like [high] valuations and inflation perspectives,” said Luc Filip, head of private banking investments at SYZ Private Banking. “The market will balance between all these positives and negatives, but we believe the positives will outweigh the negatives.”
In premarket trading, Estee Lauder sank over 4% after its quarterly revenue came in below analysts’ estimates. Moderna climbed more than 3% premarket. The drugmaker said Monday that it will supply 34 million Covid-19 vaccine doses to an international program that distributes the shots to developing countries. Tesla edged down nearly 1% following a news report that its European battery gigafactory will be delayed by six months.