Investing.com – Stocks surged Monday with the major indexes hitting all-time highs and closing highs.
The catalysts were decent data on factory production and consumer spending in China and continuing market euphoria that at least some sort of U.S. trade deal looks done.
The gains came despite a 4.29% decline in shares of Boeing (NYSE:BA) on reports the company may shut down production of its 737 Max jetliner until it wins an OK from the Federal Aviation Administration.
After the close, Boeing said it would suspend 737 Max production in January. The move will affect suppliers both in the United States and globally. Boeing is the largest U.S. manufacturer exporter. The shares fell more than 1% after hours.
Also falling were Spirit Aerosystems Holdings (NYSE:SPR), which makes the fuselages for the plane and General Electric (NYSE:GE) and Safran (PA:SAF) SA (OTC:SAFRY), which make the engines for the plane.
The S&P 500 was up 0.7%. The Nasdaq Composite added 0.91%. The Dow Jones industrials rose just 0.36%, or 100 points. The blue chips, however, had been up as many as 200 points early in the session.
Boeing's decline subtracted nearly 100 points from the Dow by itself. Twenty-three Dow stocks were higher, led by UnitedHealth Group (NYSE:UNH), Pfizer (NYSE:PFE) and Apple (NASDAQ:AAPL). Coca-Cola (NYSE:KO) was flat at $54.42.
Boeing was the second worst S&P 500 performer on the day.
All 11 S&P 500 sectors were higher, led by energy, health care, utilities, technology and financial stocks.
In addition to the data from China, stocks in Europe surged after the Conservatives' win in last week's election in the United Kingdom.
One could see the China effect on stocks in chicken-producer Tyson Foods (NYSE:TSN), which hopes to export chicken to China next and started the process to make that happen. A swine-flu epidemic has forced massive culling of poultry, amid high demand. Also higher: fertilizer company Mosaic (NYSE:MOS) and Archer-Daniels-Midland (NYSE:ADM), which also has hopes for China.
US Corn Futures jumped 1.7%, Soft Red Winter Wheat Futures rose 3.2% and US Soybeans Futures were up 1.4% in the futures trading.
FedEx (NYSE:FDX) shares fell 1% after Amazon.com (NASDAQ:AMZN) said it would not allow vendors selling wares to Prime customers to use FedEx Ground. The ostensible reason was poor service, but Amazon has been trying to stop shipping with anything related to FedEx.
Energy shares were higher on the prospect of higher oil prices as OPEC members try to rein in production. West Texas Intermediate crude rose 14 cents to $60.21. Brent Oil Futures crude, the global benchmark, were up 15 cents to $65.37. WTI is up 9.1% this month alone and nearly 33% for the year. Brent, up 8.1% in December, is up 21.5% for the year.
Interest rates also moved higher as investors moved cash away from bonds into stocks. The 10-year Treasury yield rose to 1.873% from 1.791% on Friday.
Cabot Oil & Gas (NYSE:COG), Under Armour (NYSE:UAA), Mosaic (NYSE:MOS) and semiconductor maker Western Digital (NASDAQ:WDC) were the top performers in the S&P 500.
International Flavors & Fragrances (NYSE:IFF), Boeing (NYSE:BA), Newell Brands (NASDAQ:NWL) and ABIOMED (NASDAQ:ABMD) were the weakest S&P 500 performers.