Briefcase

S&P 500 rallies after two weeks of decline

Stocks closed higher on Wall Street Monday, and the broad rally helped the S&P 500 claw back more than half of its losses over the past two weeks.

The benchmark index rose 1%, led by solid gains in technology and communication companies such as Microsoft, Google’s parent company, Facebook and Twitter. A variety of companies that rely on direct consumer spending also made solid gains. Sectors that are viewed as safer investments, like utilities, lagged the broader market. Bond yields fell.

The rally marks a reversal from the market’s recent trajectory. The S&P 500 followed up an all-time high close on May 7 with two straight weekly declines. Investors have been watching for potential signs of inflation as the economic recovery continues in the waning days of the U.S. coronavirus pandemic.

Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management, said the decline in bond yields was spurring the rally, especially in technology and communication services stocks.

“You have inflation expectations coming out of the bond market and that’s allowing some lift” to the stocks, Haworth said.

The S&P 500 index rose 41.19 points to 4,197.05. The index is now on track for a 0.4% monthly gain. The Dow Jones Industrial Average added 186.14 points, or 0.5%, to 34,393.98. The tech-heavy Nasdaq Composite gained 190.18 points, or 1.4%, to 13,661.17.

Peloton to build factory in Ohio

Peloton plans to spend about $400 million to build its first U.S. factory in Ohio.

The exercise equipment maker said Monday that the Peloton Output Park will make the Peloton Bike, Bike+ and Peloton Tread starting in 2023. It will have more than 200 acres and more than 1 million square feet of manufacturing, office and amenities space.

Peloton Interactive Inc. said it plans to break ground on the site in Troy Township over the summer. The company anticipates adding more than 2,000 jobs in Ohio over the next few years. Positions will span corporate, manufacturing, assembly and quality assurance functions.

The New York-based company employs about 3,700 people, according to FactSet.

Peloton has faced surging demand during the pandemic. It reported that revenue in the first three months of the year more than doubled on strong subscription growth. Last December, the company spent $420 million to acquire Precor, a company whose fitness machines populate hundreds of commercial and hotel gyms. That deal gave Peloton its first manufacturing capacity in the U.S.

Vaccinated fliers could win free trips

United Airlines has launched a sweepstakes giving its MileagePlus members a chance to win free flights by uploading their COVID-19 vaccination cards to their accounts.

MileagePlus members who upload their vaccination card to their account by June 22 will be automatically entered into the sweepstakes for a chance to win either a roundtrip flight for two or free flights for a year to any of the carrier’s worldwide destinations, according to the United Airlines website.

Five grand-prize winners will be selected randomly July 1 to receive one year of free travel in any class of service for themselves and a companion. Thirty winners, selected randomly in June, will win a roundtrip flight for two in any class of service.

United Airlines will notify winners using their contact information on file with MileagePlus.

From staff and wire reports