US close: Markets stage turnaround to finish in the green
US stocks staged a mid-session turnaround to finish higher on Monday, as investors shrugged off geopolitical tensions in the Middle East.
The Dow Jones Industrial Average added 0.24% to 2,8703.38, the S&P 500 rose 0.35% to 3,246.28, and the Nasdaq Composite was 0.56% firmer at 9,071.46.
At the open, the Dow was 133.94 points lower on Monday, initially continuing its trajectory from Friday when stocks recorded heavy losses after Tehran vowed to retaliate for a White House airstrike that killed top Iranian commander General Qasem Soleimani.
Iran also said over the weekend that would not abide by uranium enrichment levels set out in former President Barack Obama's landmark 2015 nuclear deal.
Following the news, oil prices surged and gold prices hit a seven-year high as investors sought refuge in traditional safe havens.
US President Donald Trump said on Sunday that he would look at slapping sanctions on Iraq after its parliament passed a resolution calling for the expulsion of US troops from the country.
"We have a very extraordinarily expensive airbase that’s there. It cost billions of dollars to build. Long before my time. We’re not leaving unless they pay us back for it," said Trump.
Oanda analyst Craig Erlam said the rhetoric from all sides appeared to be heating up, rather than cooling, with retaliation from Iran appearing practically inevitable.
“Now is a time for calm heads and I'm afraid there doesn't appear to be many of those around.”
On the data front, US service sector firms indicated a moderate expansion in business activity at the end of 2019, with growth driven by a stronger rise in new orders.
The seasonally adjusted final IHS Markit US Services Business Activity Index registered 52.8 in December, which was up from a reading of 51.6 in November, signalling a further rebound in output growth following a slump in activity during the summer.
The moderate upturn accelerated to the fastest since July and was linked to more favourable demand conditions.
In corporate news, Boeing shares finished 0.29% higher after the aerospace giant was said to be considering raising debt in the wake of the ongoing 737 MAX crisis.
The aircraft - the firm’s best selling airliner - remained grounded worldwide after two fatal crashes in late 2018 and early 2019 that have been blamed on its design.
Goldman Sachs was 1.02% firmer, while Morgan Stanley lost 0.35%, after it emerged the Bank of England was investigating the financial reporting practices of the pair on that side of the Atlantic.
Home goods retailer Bed Bath & Beyond was 2.99% higher after a report from the Wall Street Journal said the company was selling around half of its real estate portfolio to a private equity firm in a sale-and-leaseback agreement, that would generate more than $250m.
Cal-Maine Foods was slid 7.87% after the egg giant reported a 10.7% fall in sales in its second quarter, and an unexpected loss.
Dow Jones - Risers
McDonald's Corp. (MCD) $202.33 1.12%
Goldman Sachs Group Inc. (GS) $233.95 1.02%
Walgreens Boots Alliance, Inc. (WBA) $59.59 0.86%
Apple Inc. (AAPL) $299.80 0.80%
Exxon Mobil Corp. (XOM) $70.87 0.77%
Unitedhealth Group Inc. (UNH) $291.55 0.69%
Home Depot Inc. (HD) $219.96 0.47%
Merck & Co. Inc. (MRK) $91.64 0.43%
Cisco Systems Inc. (CSCO) $47.80 0.36%
Boeing Co. (BA) $333.74 0.29%
Dow Jones - Fallers
Walt Disney Co. (DIS) $145.65 -0.58%
American Express Co. (AXP) $124.06 -0.43%
Chevron Corp. (CVX) $120.60 -0.34%
Intel Corp. (INTC) $59.93 -0.28%
Visa Inc. (V) $189.19 -0.22%
Verizon Communications Inc. (VZ) $60.27 -0.22%
Walmart Inc. (WMT) $117.65 -0.20%
International Business Machines Corporation (CDI) (IBM) $134.10 -0.18%
Pfizer Inc. (PFE) $38.88 -0.13%
Johnson & Johnson (JNJ) $144.10 -0.12%
S&P 500 - Risers
Abiomed Inc. (ABMD) $179.04 7.33%
Gap Inc. (GPS) $18.28 4.82%
Salesforce.Com Inc. (CRM) $173.45 4.38%
Mattel Inc. (MAT) $14.07 4.38%
Eog Resources Inc. (EOG) $88.44 4.06%
Macy's Inc. (M) $17.10 3.45%
Mylan Inc. (MYL) $20.87 3.32%
Occidental Petroleum Corp. (OXY) $45.05 3.30%
Pioneer Natural Resources Co. (PXD) $158.11 3.10%
Centene Corp. (CNC) $63.03 3.06%
S&P 500 - Fallers
Under Armour Inc. Class A (UAA) $20.44 -6.45%
Under Armour, Inc. (UA) $18.37 -4.67%
L Brands Inc (LB) $18.16 -3.71%
Lamb Weston Holdings, Inc. (LW) $90.70 -3.06%
Carnival Corp. (CCL) $48.38 -3.03%
Packaging Corp. Amer (PKG) $105.97 -2.98%
Brighthouse Financial, Inc. (BHF) $37.96 -2.64%
Host Hotels & Resorts Inc. (HST) $17.57 -2.61%
KLA-Tencor Corp. (KLAC) $175.05 -2.25%
Applied Materials Inc. (AMAT) $59.89 -2.16%
Nasdaq 100 - Risers
Mylan Inc. (MYL) $20.87 3.32%
Netflix Inc. (NFLX) $335.83 3.05%
Vertex Pharmaceuticals Inc. (VRTX) $224.03 2.78%
Alphabet Inc. Class A (GOOGL) $1,397.81 2.67%
Alphabet Inc. Class C (GOOG) $1,394.21 2.47%
NortonLifeLock Inc. (NLOK) $26.39 2.15%
Liberty Global plc Series A (LBTYA) $22.58 2.13%
Take-Two Interactive Software Inc. (TTWO) $124.69 2.03%
Align Technology Inc. (ALGN) $285.88 1.94%
Tesla Inc (TSLA) $451.54 1.93%
Nasdaq 100 - Fallers
KLA-Tencor Corp. (KLAC) $175.05 -2.25%
Applied Materials Inc. (AMAT) $59.89 -2.16%
Xilinx Inc. (XLNX) $97.24 -2.08%
Western Digital Corp. (WDC) $63.37 -1.92%
Lam Research Corp. (LRCX) $289.19 -1.87%
Maxim Integrated Products Inc. (MXIM) $60.24 -1.82%
Micron Technology Inc. (MU) $53.56 -1.77%
Skyworks Solutions Inc. (SWKS) $116.56 -1.76%
J.B. Hunt Transport Services Inc. (JBHT) $115.00 -1.73%
Fastenal Co. (FAST) $36.00 -1.56%