US stocks edged higher on Monday as there were early signs that Wall Street was attempting to overcome its recent decline. The S&P 500 index gained 0.40% to midday, while the Nasdaq composite was 0.51% higher. Nonetheless, the Dow Jones Industrial Average dipped 13 points, or by less than 0.1 percent; the sentiment ranged from the high of the financials to the low of the technology.
CVS Health (CVS, Financial) was again a leader, advancing 5.4%, after it appointed four new directors, including Glenview Capital Management’s Larry Robbins (Trades, Portfolio), after talking to the activist hedge fund. People believed it was a bid to strengthen the company’s governance and strategy, and investors applauded these changes.
The Energy sector is performing well, with a 0.2% increase; Liberty Energy (LBRT, Financial) is up 4.9% after Trump nominated its CEO, Chris Wright, to be Secretary of Energy. The outlook for the energy sector seems set for further improvement as the administration comes under a new president.
However, Spirit Airlines (SAVE, Financial) must have had a much tougher day. Its stocks were suspended because the no-frills company launched an agreement with the debtholders to move forward to the Chapter 11 debt-paying process. Although Spirit will continuously perform its business operations during restructuring, this is bad news for its stockholders since most of the stocks are likely going to be wiped out.
Stocks are on the mend after the rough period marked by last week’s upheaval, but much uncertainty over future instability persists. In this vein, market participants remain attentive as Trump’s administration begins to firm up and corporations rejigger in response to the possible changes in policy and regulation.
