Stocks spike to record highs as trade optimism, earnings provide spark

All three of the major averages closed at record highs on Monday as renewed trade hopes and strong earnings propelled stocks higher.

The Dow Jones Industrial Average gained 114 points, or 0.42 percent, to book its first record close since July 23. The S&P 500 and Nasdaq finished in record territory for a second straight day.

President Trump celebrated the records in a tweet : Stock Market hits RECORD HIGH. Spend your money well!

The record-setting day came after the Chinese Foreign Ministry said Trump and Chinese President Xi Jinping have remained in contact while negotiators craft the final language for the "phase one" of the trade agreement between the two economic powers.

McDonald's shares were lower after the company parted ways with CEO Steve Easterbrook over his consensual relationship with an employee. Easterbrook was instrumental in the company’s turnaround, emphasizing a technological shift that included third-party delivery through apps and the installation of kiosks that let customers customize their orders.

Meanwhile, Under Armour was sharply lower after confirming the Department of Justice and Securities and Exchange Commission are probing its accounting practices. The athletic-apparel maker reported better-than-expected third-quarter results on Monday morning but cut its sales outlook for the remainder of the year.

Ford gained after the United Auto Workers union approved the tentative labor deal that was reached last week.