By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market rallied on
Monday, the last day of the month and quarter, as investors found
Federal Reserve Chairwoman Janet Yellen's comments on monetary
policy reassuring.
In a speech to a Chicago community reinvestment conference on
Monday, Yellen said that the recovery still feels like a recession
to many Americans, which is why the central bank will keep its
"extraordinary" support for the economy for "some time to
come."
Earlier, stocks were boosted by hopes of monetary stimulus from
the European Central Bank after euro-zone inflation fell to its
lowest level since 2009.
The S&P 500 (SPX) rose 16 points, or 0.9%, to 1,873.35, only
about 5 points shy from the record closing high. The benchmark
index is less than a percentage point higher on the month and
gained 1.4% over the past quarter, its fifth consecutive quarterly
gain.
The Dow Jones Industrial Average (DJI) jumped 135 points, or
0.8%, to 16,457.97. The blue-chip index is set for a modest gain
this month, however it is still negative for the year.
The Nasdaq Composite (RIXF) added 53 points, or 1.3%, to
4,208.93. The tech-heavy index has been the worst performer so far
this month, with steep losses last week denting quarterly
gains.
Follow MarketWatch's live blog of Wednesday's stock-market
action.
"What is helping markets today is the news from Europe -- it
seems like the European Central Bank got an approval from the
Bundesbank to initiate quantitative easing as they are at the
threshold of slipping into deflation," said Doug Cote, chief
investment strategist at ING Investment Management.
"The U.S. is exporting QE across the pond even as it is ending
it here. Hopes for monetary stimulus boosted stocks there and
giving investors more confidence here," Cote said.
In economic news, a gauge of Chicago-area businesses
unexpectedly tumbled in March, hitting the lowest level since
August, led by drops for new orders and employment, according to
data released Monday. The Chicago purchasing-managers index fell to
55.9 in March, down 3.9 points from February. Economists surveyed
by MarketWatch had expected a March index reading of 60.
The biggest data of the week will come on Friday, when the U.S.
employment report for March is due. Economists are expecting a move
higher in those numbers, which would help soothe investor worries
about the economy.
Cal-Maine Foods jumps on earnings
Cal-Maine Foods Inc. (CALM) shares jumped 8.8% after the company
reported quarterly results. The food company said third-quarter
sales and profit rose due to higher prices and continued growth in
its specialty-egg business.
UTI Worldwide Inc. (UTIW) shares dropped 8.1% after the company
said its loss narrowed in the fiscal fourth quarter, but also
reported a decline in revenue. See Movers and Shakers column.
Shares of Johnson & Johnson (JNJ) rose 0.6% after agreeing
to sell its Ortho-Clinical Diagnostics unit to the Carlyle Group
for about $4 billion in a deal that's expected to close in the
middle of the year.
U.S.-listed Prana Biotechnology Ltd. (PRAN) plunged 71% to $2.88
after a failed Phase II drug trial aimed at treating
Alzheimer's.
Big Lots Inc. (BIG) shares rose 2.3% after the retailer was
upgraded to a buy rating from hold on Monday by KeyBanc Capital
Markets. Analysts at KeyBank cited progress being made on
turnaround initiatives from the new management team. The firm also
initiated a 12-month price target of $45 on Big Lots.
European stocks edge higher, Asian stocks mixed
In overseas markets, european stocks were firm after economic
data out of the euro zone showed inflation falling to the lowest
level since 2009, which will add pressure on the ECB to introduce
stimulus at its monetary-policy meeting on Thursday. The Stoxx
Europe 600 edged 0.2% higher.
In Asia, markets were mixed. The Shanghai Composite Index
finished down 0.4%. It lost nearly 5% in the first quarter, for the
sharpest quarterly loss since June, according to FactSet. The
Nikkei 225 index finished up 0.9%, but closed out the quarter with
a nearly 9% drop. That was its biggest quarterly fall since June
2012, according to FactSet.
Gold priced were still under pressure, while oil prices were
mostly flat.
More must-reads from MarketWatch:
Jobs report may encourage investors to take risks
High-frequency trading hurts regular customers, Michael Lewis
tells '60 Minutes'
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
