US stocks rose on Monday as worries about a worsening conflict in Syria were eased. The Dow Jones industrial average gained nearly 210 points, especially with Merck leading 30 stocks. The Standard & Poor’s 500 Index was up 0.8%, with the best performing sectors being Utilities & Communications. Nasdaq also saw gains, climbing 0.7%.
The US military launched missile strikes against the Syrian government in response to a chemical attack carried out in the country. The strikes were carried out in cooperation with France and the United Kingdom. The Pentagon described the US-led strikes as a “justified, legitimate and proportionate response” the use of chemical weapons by the Syrian regime. According to experts, there have been many statements from Washington that would make investors nervous, but not to the point of getting concerned.
Investors were also watching corporate earnings, after Bank of America reported better-than-expected quarterly results. The bank’s profits were supported by loan growth and lower corporate taxes. Bank of America shares opened up but fell 0.7%.
JB Hunt Transport jumped by more than 7% on stronger-than-expected quarterly earnings, thanks to its 14% surge in Intermodal. The earnings season is a good start so far, with Black Rock, JPMorgan Chase and Citigroup reporting better than expected earnings last week. Netflix is also due to release its quarterly results on Monday after the close. Wall Street expects big earnings for this season, as analysts expect a 17.3% rise in first-quarter profit.
In corporate news, Merck also rose more than 2% after the company said that Keytruda, its cancer treatment drug, reduced the risk of death in a trial of 51%, when combined with chemotherapy, versus chemotherapy alone.
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