Stocks are rallying Monday as the tensions between the U.S. and North Korea that flared last week appeared to ease. Technology companies and banks are making some of the largest gains as stocks bounce back from their losses with some of the biggest gains the market has seen this year. All 11 industrial groups in the Standard & Poor’s 500 index are moving higher.
KEEPING SCORE: The S&P 500 jumped 24 points, or 1 percent, to 2,466 as of 1 p.m. Eastern time. The Dow Jones industrial average gained 144 points, or 0.7 percent, to 22,003. The Nasdaq composite added 80 points, or 1.3 percent, to 6,336. The Russell 2000 index of smaller companies climbed 18 points, or 1.3 percent, to 1,392.
Last week was the worst for stocks since late March, as the S&P 500 fell more than 1.4 percent. Rising tensions between the U.S. and North Korea startled investors out of the complacency that has weighed on the stock market for most of this year. That eased Monday after officials said fighting is not imminent. The top U.S. military officer said the country wants to resolve the standoff peacefully.
Thursday was the worst day for stocks since mid-May, and Monday is shaping up to be the best day since late April.
LEADERS: Technology stocks outpaced the rest of the market. Apple added $1.85, or 1.2 percent, to $159.33 and Microsoft picked up $1.05, or 1.4 percent, to $73.55. Western Digital advanced $2.57, or 3.2 percent, to $82.47.
Chipmaker Nvidia rebounded after two days of sharp losses. It rose $8.95, or 5.7 percent, to $164.92. Competitors like Micron Technology and Analog Devices also rose.
NEW BUYER NETS NEFF: Equipment rental company Neff said it received a buyout offer worth $25 per share, or $596 million. It did not say who made the offer, but Neff said its board has decided the new offer is superior to a bid from H&E Equipment Services that the company accepted last month. H&E Equipment has the right to match the new offer and is entitled to a breakup payment if Neff it acquired by another company. Neff climbed $4.05, or 18.5 percent, to $25.90. H&E’s offer valued Neff at $21.07 a share.
H&E Equipment lost 40 cents, or 1.9 percent, to $21.19.
FRIENDLY NABORS: Drilling technology developer Tesco said it will be acquired by drilling contractor Nabors Industries in an all-stock deal. The companies said Tesco is being valued at $4.62 a share. Tesco added 50 cents, or 12.8 percent, to $4.40. Nabors lost 15 cents, or 2.2 percent, to $6.65.
STICKER SHOCK? Fiat Chrysler climbed after Automotive News reported that a Chinese car maker offered to buy the company. It did not identify that company and said Fiat Chrysler rejected the offer because it wasn’t high enough, but investors hoped another bid would come. Fiat Chrysler stock gained $1.06, or 9.2 percent, to $12.67.
RHIMES AND REASON: Shonda Rhimes, the creator of popular television series such as “Scandal” and “Grey’s Anatomy,” will leave ABC and make shows for Netflix under a new contract. Financial terms were not disclosed. Netflix, which already spends billions of dollars a year on programming, has recently started shelling out more money for new shows. Last week it bought comic book publisher Millarworld, its first-ever acquisition.
Netflix lost $1.14 to $170.26.
TARGET’S GRAND PLAN: Retailer Target is buying a delivery logistics company to help it offer same-day delivery service to in-store shoppers. The company did not say how much it will pay for Grand Junction, a firm that connects retailers with about 700 delivery companies around the country that pick up items from distribution centers and take them to customers. It is already testing same-day delivery at a New York store.
Target stock climbed 80 cents, or 1.5 percent, to $55.83.
BONDS: Bond prices turned lower. The yield on the 10-year Treasury note rose to 2.21 percent from 2.19 percent late Friday. That helped banks, as higher bond yields mean higher interest rates and greater profits on mortgages and other loans.
Bank of America climbed 53 cents, or 2.2 percent, to $24.39 and JPMorgan Chase gained $1.27, or 1.4 percent, to $92.70.
ENERGY: U.S. crude oil lost 91 cents, or 1.9 percent, to $47.91 a barrel in New York. Brent crude, the international standard, shed $1.04, or 2 percent, to $51.06 a barrel in London. Energy companies were little changed.
CURRENCIES: The dollar rose to 109.45 yen from 109.04 yen. The euro fell to $1.1796 from $1.1824.
OVERSEAS: Germany’s DAX jumped 1.3 percent and the CAC 40 in France gained 1.2 percent. In Britain, the FTSE 100 index added 0.6 percent. Hong Kong’s Hang Seng index jumped 1.4 percent and the South Korean Kospi rose 0.6 percent. Japanese stocks fell sharply as investors played catch-up after an extended holiday weekend. The Nikkei ended 1 percent lower.
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