New York - US stocks rose in early trade Monday, extending last week's record-setting rally at the start of a busy week that features Apple earnings and a Federal Reserve policy meeting.
Half an hour into trade, the tech-rich Nasdaq Composite Index rose 26.03 points (0.51 percent) to 5,118.12, after setting a fresh record for a second day Friday.
The Standard & Poor's 500 index advanced 7.64 (0.36 percent) to 2,125.33. The broad-market index squeaked into record territory Friday.
The Dow Jones Industrial Average climbed 71.87 (0.40 percent) to 18,152.01.
Apple bounced up 2.1 percent ahead of its first earnings report as a member of the blue-chip Dow. The tech giant is to report second-quarter earnings after the markets close. Apple has beaten profit estimates for the past eight quarters, noted John Plassard of Mirabaud Securities.
Investors also awaited the outcome of a two-day meeting of the Federal Open Market Committee, the Fed's policy arm, on Wednesday for signs of the timing of an interest rate increase, expected this year.
"An Apple earnings report and an FOMC meeting in the same week is a little like having Christmas Day twice in the same week," said Patrick O'Hare of Briefing.com.
Merger and acquisition action was in focus.
Applied Materials dived 8.3 percent after it agreed with Tokyo Electric to abandon their nearly $10 billion merger agreement, citing opposition from the US Justice Department on antitrust grounds.
The announcement came after Comcast and Time Warner Cable said Friday they had scrapped their $45 billion merger plans, also due to US anti-trust concerns.
Time Warner Cable was up 1.1 percent Monday on speculation that it may be in the sights of Charter Communications; Charter slipped 0.7 percent.
Teva Pharmaceutical dropped 2.0 percent after Mylan rejected its $40.1 billion hostile takeover bid, saying it undervalued the company and the proposed combination "carries significant antitrust risk". Mylan sank 3.7 percent.
Bond prices rose. The yield on the 10-year US Treasury rose to 1.93 percent from 1.92 percent Friday, while the 30-year rose to 2.63 percent from 2.62 percent. Bond prices and yields move inversely.
AFP
