While you were sleeping: Wall Street moves higher ahead of Thanksgiving

Wall Street climbed amid optimism that the outlook for corporate profits and economic growth justify valuations as the Trump administration aims to move ahead on its tax reform plans.

"Very near term, stocks face cross currents associated with year-end tax-related strategies as well as a potential postponement in tax reform legislation that could cause the pause in the rally to linger," Bruce Bittles, chief investment strategist at Baird, said in a note Monday, Bloomberg reported.

"But any weakness that does develop is anticipated to be limited in both time and price."

At the close trading in New York, the Dow Jones Industrial Average was up 72.09 points, or 0.3%, 23,430.33, the Nasdaq Composite Index eased 0.1% to 6790.71 while the Standard & Poor's 500 Index also rose 0.1% to 2582.14.

"Wall Street is looking for the next catalyst to move higher," Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company, told Reuters.

"And right now, the one that's on the docket is tax reform. But the question is how much longer can we go higher and how much longer can the cycle last, and tax reform plays an impact in that."

The Dow advanced as gains by 3M and Boeing, both up 0.9%, outweighed declines in Merck and General Electric, down 2.3% and 1.8% respectively.

Merck declined as those of its Swiss rival Roche rallied, closing 5.9% higher in Zurich. Roche announced successful results in two studies on cancer and hemophilia treatments.

"Roche has delivered a best-case scenario," Jeffrey Holford, an analyst with Jefferies in London, wrote in a note on Monday, Bloomberg reported. Investors had been skeptical about both studies, according to Holford.

Marvell bids for Cavium
In corporate deal news, Cavium jumped 9.9% after Marvell Technology said it agreed to buy the company for about $US6 billion. Marvell shares also rallied, gaining 5.7%.

"This is an exciting combination of two very complementary companies that together equal more than the sum of their parts," Marvell chief executive officer Matt Murphy said in a statement.

"This combination expands and diversifies our revenue base and end markets, and enables us to deliver a broader set of differentiated solutions to our customers."

Shares of energy companies in the S&P 500 fell with oil prices, deepening their losses for the year.

US crude for December delivery fell 0.8% to $US56.09 a barrel, notching its fourth decline in five sessions.

Investors are eyeing fresh clues on the pace of interest rate increases next year amid firm expectations the Federal Reserve will hike next month.

Fed chairwoman Janet Yellen said in a speech New York she would step down in February next year when her successor, Jerome Powell, is sworn in rather than stay on as a governor. Her term doesn't expire until 2024.

Minutes of the most recent Federal Open Market Committee meeting will be released on Wednesday.

US financial markets will be closed on Thursday for the Thanksgiving holiday and will be open for only part of Friday.

In Europe, the Stoxx 600 Index rose 0.7%. The UK's FTSE 100 Index rose 0.1%, France's CAC 40 Index was up 0.4% and Germany's DAX Index climbed 0.5%, even as talks on a new coalition government collapsed.

(BusinessDesk)