Major indexes rallied on Monday, with the Nasdaq leading the major indexes with an increase of 0.56 percent. Gains were concentrated in the communication services. SPDR Communication Services (XLC) advanced 1.34 percent. Energy and healthcare were strong as well. SPDR Energy (XLE) climbed 0.78 percent and SPDR Healthcare (XLV) 0.62 percent. In technology, iShares Expanded Tech Software (IGV) climbed 1.17 percent.
Although energy stocks gained, crude oil fell slightly on the day. The economic fundamentals for oil remain difficult with expanding U.S. production lifting global supply, while offsetting any OPEC cuts.
The Markit services PMI came in stronger than expected at 52.8 in December. The ISM services will be released on Tuesday. The most significant report this week is December’s employment report; it will be released Friday. Economists expect 160,000 new jobs, the unemployment rate to hold at 3.5 percent and wage growth of 0.3 percent.
Earnings season kicks off next week, but a few larger companies report over the coming days. Among them are Walgreens Boots Alliance (WBA), Constellation Brands (STZ), homebuilder Lennar (LEN), Bed Bath & Beyond (BBBY) and KB Home (KBH).