The major averages retreated from record highs Monday, though gains in energy and consumer discretionary kept downside momentum in check ahead of data-laden week including a decision from the Federal Reserve on bond buying.
The S&P 500 fell 0.1% and hit an earlier all-time high of 4,619.20. The Dow Jones Industrial Average was up 0.1%, or 38 points after topping 36,000 for the first time ever. The Nasdaq climbed 0.37%, and had earlier notched a record of 15,531.0. In small caps, the Russell 2000 Futures, up 2.4%, remained on track for its best day in a year.
Energy was up about 1% as oil prices continued to rise amid expectations that the major oil producers are unlikely to turn increase production to alleviate the energy supply crunch.
Bank of America forecast Brent crude to hit $120 a barrel by the end of June 2022 as the rebound in gasoline demand amid refining-capacity constraints could continue to support oil prices.
Devon Energy (NYSE:DVN), Marathon Oil (NYSE:MRO), APA Corporation (NASDAQ:APA) were among biggest gainers in the sector.
Consumer discretionary continued to add to gains from last week, led by Tesla (NASDAQ:TSLA) as the electric vehicle maker climbed to fresh record highs.
Casino stocks including Las Vegas Sands (NYSE:LVS), Wynn Resorts (NASDAQ:WYNN), Melco Resorts & Entertainment (NASDAQ:MLCO) also lifted the sector, shrugging off data showing casino revenue in the Asian gambling mecca of Macau fell by 40% in the 12 months through October.
Tech, however, was a drag on the broader market as big tech started the week on the backfoot amid a rise in Treasury yields.
Apple (NASDAQ:AAPL), Google-parent Alphabet (NASDAQ:GOOGL), Facebook (NASDAQ:FB), Microsoft and Amazon (NASDAQ:AMZN) were in the red.
The 10-year Treasury yield topped 1.6%, but pared some gains as U.S. manufacturing data continued to point supply-chain woes that aren't expected to ease anytime soon.
"The manufacturing sector is growing, but it faces severe headwinds, which are unlikely to fade materially before next spring," Pantheon Macroeconomics said in a note.
In other news, Coca-Cola Co (NYSE:KO) acquired Bodyarmor for $5.6 billion as the beverage giant's history seeks to provide ramp-up competition against Gatorade, the leader in the sports drink market.
Harley-Davidson (NYSE:HOG), meanwhile, jumped 9% after the U.S. and the European Union ended their dispute on steel and aluminum tariffs, mitigating the risk of the motorcycle maker incurring a 56% levy on its imports into the EU.
The grind higher on Wall Street comes just a day ahead of the Fed's two-day meeting starting Tuesday, expected to culminate in an unchanged decision on rates and an announcement that the pace of bond purchases would be reduced by about $15 billion a month.