By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks stepped higher on Monday,
with the Dow industrials trading above 16,000 for the first time
and the S&P 500 holding near its own milestone of 1,800.
The market joined in global gains that came after upbeat
European trade data and further reaction to Chinese reforms. The
Federal Reserve's easy-money stance also stuck as a key driver for
investors, and investors waited on Fed speeches along with a report
on the housing market.
The S&P 500(SPX) was last up 2 points, or 0.1%, to 1,800,
while the Dow Jones Industrial Average(DJI) jumped 49 points, or
0.3%, to 16,011. The Nasdaq Composite(RIXF) was last up 1 point to
3,987, as it also approached a milestone at 4,000.
Fawad Razaqzada, technical analyst at Forex.com, said the 16,000
for the Dow could trigger some profit-taking and a "healthy
pullback" amid the big march higher for markets. "However, should
this not come to fruition then I would interpret it as an
indication that the rally is extremely strong and that it has
further room to the upside," said Razaqzada in a note. Read: This
bull market isn't so old or different
Craig Erlam, markets analyst at Alpari U.K., said markets are
continuing to build on optimism surrounding the Fed's bond-buying
program. "There's no doubt that it has been a huge contributor to
the rally this year and Janet Yellen's testimony last week
suggested it's going to carry on, in its current form," he said in
emailed comments. "As long as the Fed continues to pump $85 billion
per month into the financial system, traders will be bullish on
stocks."
On Friday, the S&P 500 and Dow cinched record closes again
and snared their sixth weekly gains in a row, up 1.6% and 1.3%,
respectively. The S&P 500 is enjoying its longest winning
streak since February.
Check out MarketWatch's live blog of Monday's stock-market
action.
* The buzz: The three main U.S. stock indexes all stand near big
round numbers, such as 16,000 for the Dow, 1,800 for the S&P
500 and 4,000 for the Nasdaq. Technical analysts often say round
numbers can serve as important psychological levels, with profit
taking and resistance appearing at those levels. But other market
watchers say the "meltup hasn't even started yet." Read more in the
Need To Know column.
* Today's market-moving news: Investors will watch for a new
reading for a housing-market index at 10 a.m. Eastern time. They
also will take in several Fed speeches, including New York Fed
President William Dudley at 12:15 p.m. and Philly Fed President
Charles Plosser at 1:30 p.m.
* Today's movers & shakers: Tyson Foods Inc. rose 3% after
its upbeat earnings report, while Urban Outfitters Inc. was little
changed and Salesforce.com Inc. fell 0.5% ahead of their quarterly
reports after the bell. Read more in the Stocks To Watch and Movers
& Shakers columns.
* Other markets:European stocks advanced after encouraging trade
data, while Chinese stocks closed sharply higher as investors there
had their first chance to react to reform details out late Friday.
Gold dIpped, oil slipped and the dollar also fell.
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