Take-Two Interactive Software Inc rose 4.8% as it raised its annual adjusted sales forecast on demand for its videogame franchises "Grand Theft Auto" and "NBA 2K". The video-game maker reported a profit for the spring that was nearly double year-ago levels as customers stuck at home played Grand Theft Auto and other games instead of going outside.
American International Group Inc also led declines on the S&P 500 with a 6.5% drop as its quarterly adjusted profit slumped.
About 83% of the 352 companies in the S&P 500 that have reported quarterly results so far have beaten estimates for earnings, according to IBES Refinitiv data. Some analysts said the profit report was full of unusual items, such as COVID-related losses, which makes it hard to extrapolate how AIG's profits will run from here.
The Nasdaq powered to a fresh record on Monday fueled by Microsoft's potential takeover of TikTok, as markets monitored talks in Washington on another federal relief package.
A weekly $600 in federal unemployment benefits has expired, threatening to crunch the finances of millions of out-of-work Americans.
This week's calendar includes earnings from Disney, as well as the July employment report, which will provide a window into the extent that the U.S. coronavirus resurgence in recent weeks has dragged down the economy. Economists expect a report on Friday to show that US employers added 1.8 million jobs last month, which would be welcome growth but also a slowdown from June. Now, investors are waiting for Congress to do the same.
In other trading, the yield on the 10-year Treasury rose to 0.56% from 0.55% late Monday.
"What valuation is warranted by a sector whose business grows faster for reasons that are less dependent on overall economic conditions, and whose members generate remarkable excess returns with superior frequency, compared to any other sector in the stock market?" "All that helps support the market at these levels", said Lindsey Bell, chief investment strategist at Ally Invest. The Fed's promises to keep short-term rates low and to buy reams of bonds are also helping to keep a lid on yields, which also helps push investors into stocks. Gold for delivery in December rose $34.70 to settle at $2,021.00 per ounce. France's CAC 40 added 0.3 percent, and the FTSE 100 in London was up 0.1 percent.
"U.S. equities in general are one of the most overvalued markets in the developed world, centered on technology".
Overseas, in Japan, the Nikkei 225 surged 1.7% while in Hong Kong, the Hang Seng index gained 2%. Stocks in Shanghai edged 0.1% higher.
Benchmark U.S. crude oil rose 1.4% to $41.59 per barrel. Brent crude (UK:BRNV20), the worldwide standard, slipped 31 cents to $43.84.