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.