The stock market rose moderately on Monday, with a rally in high-growth names among Internet and biotechnology shares helping to lift the Nasdaq by close to 1 percent.
Equities have been under pressure recently. The Standard & Poor’s 500-stock index is coming off its first two-week decline since January as investors have become concerned about the economy’s growth prospects.
“The listlessness in the market shows the struggle investors are having right now: Valuations are full but not stretched, and there’s a lack of decisive evidence that the economy will kick into higher growth and justify these valuations,” said Mark D. Luschini, chief investment strategist at Janney Montgomery Scott.
The Dow Jones industrial average advanced 20.55 points, or 0.12 percent, to close at 16,511.86. The S.&P. 500 gained 7.22 points, or 0.38 percent, to 1,885.08. The Nasdaq composite index rose 35.23 points, or 0.86 percent, to 4,125.82.
High-growth “momentum” stocks were among the strongest issues of the day. TripAdvisor climbed $4.25, or 5.2 percent, to $86.41, and Netflix gained $14.62, or 4.2 percent, to $364.50. Vertex Pharmaceuticals rose $2.19, or 3.4 percent, to $67.22. All three were among the biggest percentage gainers in the S.&P. 500.
Internet and biotechnology stocks have been among the most volatile in recent weeks, advancing on signs of economic improvement and slumping on concerns that their valuations are too hefty. The small-capitalization Russell 2,000 index rose 1 percent after three straight declines that took it several times near correction territory, a drop of 10 percent from a recent high.
“I don’t know what to make of the gain in growth stocks, other than the fact that they’ve been beaten up to the point of being oversold, which is attracting short-term traders and some short covering,” Mr. Luschini said. “Nothing has changed to make them a screaming buy.”
The Dow’s gain was limited as AT&T fell 36 cents, or 1 percent, to $36.38, a day after the giant telecommunications company agreed to buy DirecTV, the No. 1 American satellite TV provider, for $48.5 billion. DirecTV’s shares fell $1.53, or 1.8 percent, to $84.65.
The American-listed shares of AstraZeneca sank $9.64, or 12 percent, to $70.64, after the British drug maker rejected a “final” $119 billion merger offer from Pfizer. Shares of Pfizer rose 16 cents, or 0.6 percent, to $29.28.
In after-hours trading, Urban Outfitters fell $1.67, or 4.6 percent, to $34.50, after the teenage-apparel retailer reported first-quarter results that were below market expectations.
Earnings season will effectively draw to a close this week, with only a handful of companies scheduled to report, including Home Depot and Lowe’s.
Of the 464 companies in the S.&P. 500 that reported earnings through Friday, 69.2 percent beat expectations — above the long-term average of 63 percent.
In the bond market, interest rates rose on Monday after initially falling. The yield of the Treasury’s 10-year note dropped early to 2.5 percent. But late in the day, longer-term bond yields rose as investors sold some Treasury securities to take profits from the recent rally. The yield on the 10-year note ended at 2.55 percent, up from 2.52 percent late Friday; its price fell 6/32, to 99 20/32.
Source:
.jpg)
0 comments:
Post a Comment