By Sue Chang and Ellie Ismailidou, MarketWatch
Apple sees longest string of daily losses in 18 years
Stocks closed higher and near session highs Monday, with the
Nasdaq Composite snapping a seven-day streak of losses after data
showed slow-but-steady economic growth unfolding in the U.S.
The S&P 500 climbed 16.13 points, or 0.8%, to close at
2,081.43, led by gains in consumer-discretionary and financial
stocks.
The Dow Jones Industrial Average gained 117.52 points, or 0.7%,
to finish at 17,891.16. Shares of Home Depot Inc.(HD) and Visa
Inc.(V) led the average higher.
Meanwhile, the Nasdaq advanced 42.24 points, or 0.9%, to close
at 4,817.59, snapping a losing streak that began April 21, marking
the longest string of losses for the tech-heavy index since an
eight-session streak ended Jan. 11, according to FactSet data. In
the latest string of losses, the Nasdaq had shed 3.5%.
Shares of Sarepta Therapeutics Inc.(SRPT), which rallied 26%
after a report suggested the biotech company could get a approval
(http://www.marketwatch.com/story/sarepta-therapeutics-shares-surge-20-after-article-suggests-drug-approval-possible-2016-04-28)
for a muscular-dystrophy treatment, were among those helping lift
the Nasdaq.
On the data front, the Institute for Supply Management said its
manufacturing index fell to 50.8% last month
(http://www.marketwatch.com/story/ism-manufacturing-index-falls-to-508-in-april-2016-05-02)from
51.8% in March. The reading, coming in above 50%, indicates
expansion, albeit at a slower-than-expected pace.
Some market participants took the ISM report in stride.
The modest drop in the ISM index "is a bit disappointing, but
that April figure is still the second-highest reading in the past
eight months," said Paul Ashworth, chief U.S. economist at Capital
Economics, in emailed comments.
The news pushed the benchmark 10-year Treasury yield higher ,
which favored financial stocks, as higher yields are typically
considered to improve bank profitability, said Quincy Krosby,
market strategist at Prudential Financial.
Meanwhile, construction spending rose in March
(http://www.marketwatch.com/story/construction-spending-rises-in-march-2016-05-02),
thanks to a jump in residential building.
In a broader sense, as the stock market comes off a mixed
performance in April, what investors want to see right now is "an
indication of some strength building," Krosby said.
The Dow industrials and the S&P 500 closed out April
(http://www.marketwatch.com/story/wall-street-to-eke-out-gains-in-the-cruellest-month-for-tech-amazon-soars-2016-04-29)
with gains of 0.5% and 0.3%, respectively, but the Nasdaq slid 1.9%
due to weaker-than-expected earnings from Apple Inc. (AAPL) and
Intel Corp. (INTC).
Read: Lousy stock sentiment suggests there's more wall for worry
to climb
(http://www.marketwatch.com/story/lousy-stock-sentiment-suggests-theres-more-wall-for-worry-to-climb-2016-05-02)
This week could be critical, according to Krosby, because a
potential deterioration in the series of data ahead would cause a
"resurrection of the bull-bear debate that dominated the market at
the beginning of the year and that would be a negative for the
market," she said.
Read:Do you dare play 'leapfrog with a unicorn' in this stock
market?
(http://www.marketwatch.com/story/dont-play-leapfrog-with-a-unicorn-as-market-enters-bleak-season-2016-05-02)
On the flip side, should the data, along with a flurry of
second-tier earnings reports, surprise positively, the S&P 500
and the Dow industrials could push higher to records fueled by a
nascent transition from momentum to value stocks, said Kent
Engelke, chief economic strategist at Capitol Securities Management
Inc.
Other markets: Oil futures
(http://www.marketwatch.com/story/oil-prices-fall-as-investors-continue-to-cash-in-on-aprils-fast-run-2016-05-02)
settled down 2.5% as traders cashed out of a fast run-up in prices
in April, pulling down the stocks of energy companies. With a
fractional gain, the energy sector was the weakest performing on
the S&P 500.
The dollar
(http://www.marketwatch.com/story/japanese-yen-soars-to-fresh-18-month-high-against-the-dollar-2016-05-02)
tapped a fresh 18-month low against the yen overnight. Gains for
the yen crushed the Nikkei 225 index
(http://www.marketwatch.com/story/japanese-stocks-tumble-as-yen-surges-2016-05-02),
which closed down 3.1%. Most Asian markets were shut for holidays.
European stocks
(http://www.marketwatch.com/story/banks-under-pressure-in-europe-amid-holiday-thinned-session-2016-05-02)
were mixed in the absence of London markets, also shut for a
holiday.
Gold prices
(http://www.marketwatch.com/story/gold-pushes-through-1300-as-dollar-suffers-anew-2016-05-02)
settled 0.4% higher but finished below a key $1,300-an-ounce level
(http://www.marketwatch.com/story/gold-heads-for-15-month-high-as-dollar-gets-crushed-2016-04-29).
Stocks to watch:Baker Hughes Inc.(BHI) said it would use the
$3.5 billion breakup fee it will get from Halliburton (HAL) after
their merger was called off
(http://www.marketwatch.com/story/halliburton-baker-hughes-to-scrap-35-billion-merger-2016-05-01)
to buy back $1.5 billion of its stock and pay down $1 billion in
debt. Baker Hughes shares fell 2% and Halliburton gained 1.8%.
Apple Inc.(AAPL) shares slipped 0.1% to log their eighth
straight loss--its longest losing streak in 18 years--after
industry tracker IDC said world-wide shipments of tablets fell
another 15%
(http://www.marketwatch.com/story/isad-nobody-wants-to-buy-tablets-anymore-2016-04-29)
during the first quarter of the year as "overall disinterest" for
the product hit record highs.
Read:Wall Street isn't rewarding low-expectation earnings beats
(http://www.marketwatch.com/story/wall-street-not-rewarding-low-expectation-earnings-beats-2016-04-30)
Amazon.com(AMZN) climbed 3.7% after billionaire investor Warren
Buffett said at a Berkshire Hathaway shareholder meeting on
Saturday that the company's accomplishments in a short time have
been remarkable.
Read the live-blog recap of the Berkshire Hathaway shareholder
meeting
(http://blogs.marketwatch.com/thetell/2016/04/30/live-blog-warren-buffett-at-berkshire-hathaway-annual-meeting/)
Berkshire Hathaway(BRKA) (BRKA) gained 1%
(http://www.marketwatch.com/story/berkshire-hathaway-earning-rise-despite-stumbles-in-insurance-railroads-2016-04-30)
(http://www.marketwatch.com/story/berkshire-hathaway-earning-rise-despite-stumbles-in-insurance-railroads-2016-04-30)
after posting a rise in earnings on Saturday
(http://www.marketwatch.com/story/berkshire-hathaway-earning-rise-despite-stumbles-in-insurance-railroads-2016-04-30)
despite profit falls for railroads, utility and energy
segments.
--Barbara Kollmeyer contributed to this article.
(END) Dow Jones Newswires
May 02, 2016 16:18 ET (20:18 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.