By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market closed higher on
Monday, while quarterly performance for the main indexes was mixed.
The benchmark S&P 500 showed resilience this quarter despite
geopolitical uncertainties and the curtailing of monetary
stimulus.
On Monday, investors welcomed news that the European Central
Bank may start quantitative easing to address the threat of
deflation in the euro-zone. Federal Reserve Chairwoman Janet
Yellen's comments about the state of the economy and monetary
policy propped up indexes further.
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."
The S&P 500 (SPX) ended the day 8.41 points, or 0.5%, higher
at 1,872.34, and recorded a 0.7% gain for the month. The benchmark
index extended its quarterly winning streak, gaining 1.3% over the
past three months.
The Dow Jones Industrial Average (DJI) jumped 134.60 points, or
0.8%, to 16,457.66 and is 0.8% higher on the month. However, the
blue-chip index lost 0.7% over the past quarter.
The Nasdaq Composite (RIXF) finished the day up 43.24 points, or
1%, at 4,198.99. The tech-heavy index is down 2.5% for the month,
its worst performance since October 2012. It still managed to eke
out a 0.5% quarterly gain.
Read the recap of MarketWatch's live blog of Monday'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.
However, markets shrugged off the report and looked ahead to
manufacturing and employment data later this week.
The biggest data of the week will come on Friday, when the U.S.
employment report for March is due. Economists are expecting a
rebound in jobs growth after cold winter hindered hiring in the
first two months of the year.
Cal-Maine Foods jumps on earnings
Cal-Maine Foods Inc. (CALM) shares jumped 9.2% 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.
Micron Technology Inc. (MU) rallied 8% in the wake of a positive
write-up from analysts at Stifel Nicolaus. Analyst Kevin Cassidy
said in a note that he disagrees with the general bearish outlook
on Micron shares and urged investors to build positions in the
stock on weakness.
Cigna Corp. (CI) shares climbed 5.4%. Analysts at J.P. Morgan on
Monday raised the stock's price target to $96 from $93, noting that
the sell-off in Cigna shares has been overdone.
UTI Worldwide Inc. (UTIW) shares dropped 6% 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 0.8% 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 72% to $2.88
after a failed Phase II drug trial aimed at treating
Alzheimer's.
Big Lots Inc. (BIG) shares rose 1.8% 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.
In commodities markets, gold and oil prices fell.
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