“We keep seeing political and geopolitical tension creeping up and the market seems to be taking that in stride,” Cardillo said.
North Korea tested an intercontinental ballistic missile last week which landed in the Sea of Japan, raising concerns that more parts of the U.S. could be at risk of an attack. Meanwhile in Washington, the White House saw a major shake-up after John Kelly replaced Reince Priebus as President Trump’s chief of staff.
Equities reached record highs last week, but some strategists say the technical backdrop for stocks shows investors should be cautious.
“The markets are entering a historically weak seasonal period accompanied by rising investor optimism. Historically, the period from August through October has seen stocks struggle and a period when corrections have tended to occur most often,” Bruce Bittles, chief investment strategist at Baird, said in a note.
Up on the earnings docket for this week are Apple, Mondelez, Yum Brands and Tesla, among others.
In other corporate news, Discovery Communications agreed to buy Scripps Networks for $14.6 billion in cash and stock, or $90 per share.
In economic news, pending home sales rose 1.5 percent in June. U.S. Treasury yields rose slightly, with the benchmark 10-year yield trading at 2.298 percent and the two-year yield around 1.351 percent.