Stocks surge as markets eye earnings season, shake off Brexit turmoil

Stocks rose Monday as political chaos in the UK and global trade tensions took a back seat ahead of earnings season. The Dow Jones industrial average rallied by more than 300 points, lifted by bank stocks. The dollar and Treasury yields climbed higher.

Here is the scoreboard:

Dow Jones industrial average: 24,777.17 +320.69 (+1.31%)

S&P 500: 2,783.50 +23.68 (+0.86%)

1. Brexit fights have thrown the British government into disarray. Three members of Prime Minister Theresa May's cabinet - Boris Johnson, David Davis and Steve Baker - resigned over the past day amid negotiations on how to move forward with the controversial plan to leave the European Union. May has pushed for keeping some ties with the EU that hard-Brexit advocates see as nonstarters.
2. Economic benefits from President Donald Trump's sweeping tax overhaul could fall short of expectations, according to Fed officials. Many analysts are "overly optimistic" about the $1.5 trillion tax-cut law passed last year, economists at the San Francisco Federal Reserve said in a new report.
3. Oil prices rose as traders mulled mounting supply disruptions. Brent, the international benchmark, jumped 1.2% to $78.23 a barrel.
4. An exclusive conference for tech and media moguls kicks off Wednesday in Sun Valley, Idaho. Expected attendees of the annual event, hosted by investment firm Allen & Co., include Amazon's Jeff Bezos, 21st Century Fox's Rupert Murdoch, and Facebook's Mark Zuckerberg.

And a look at the upcoming economic calendar:

• Trump announces a Supreme Court nominee to fill the spot left by retiring Justice Anthony Kennedy.
• NATO leaders head to Brussels for their annual summit.
• GDP, manufacturing, and trade numbers are out in the UK.
• Economic sentiment data cross the wire in Germany.

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