MARKET SNAPSHOT: U.S. Stocks Struggle To Push Higher After Robust Data
May 31 2016 - 10:29AM
Dow Jones News
By Anora Mahmudova and Victor Reklaitis, MarketWatch
Consumer spending leaps in April; house prices jump in March
U.S. stocks posted marginal gains on Tuesday as investors
assessed stronger-than-expected economic reports and higher oil
prices.
The upbeat data came after Federal Reserve Chairwoman Janet
Yellen
(http://blogs.marketwatch.com/capitolreport/2016/05/27/live-blog-and-video-of-janet-yellen-interview/)
said Friday that an interest-rate rise in the coming months is
probably appropriate.
The main indexes are on track to end the month modestly higher,
posting positive returns for the third consecutive month.
The S&P 500 was up 2 points, or 0.1%, to 2,100. The Dow
Jones Industrial Average slipped 11 points, or less than 0.1%, to
17,862. Meanwhile, the Nasdaq Composite advanced 11 points, or
0.2%, to 4,944.
"Markets adjusted well to Janet Yellen's comments and expect a
rate increase maybe in July, after the U.K votes whether to remain
in the European Union or not," said Diane Jaffee, senior portfolio
manager at TCW.
"The labor market remains robust and preliminary numbers from
other labor reports such as JOLTS or weekly jobless claims point to
increasing confidence among workers," Jaffee said, adding that the
ability of the labor data to shrug off the Verizon strike was
telling. Verizon workers are set to return to work Wednesday after
reaching a tentative deal that ends a strike that began in
April.
However, investors are avoiding big bets ahead of key economic
releases later this week. The European Central Bank is expected to
leave policy unchanged on Thursday. On the same day, the
Organization of the Petroleum Exporting Countries is meeting and
the monthly U.S. jobs report is due on Friday.
See:Why the May jobs report won't reflect a speedier economy
(http://www.marketwatch.com/story/why-may-jobs-report-wont-reflect-speedier-economy-2016-05-29)
Read:The window for stock-market bears is closing rather quickly
(http://www.marketwatch.com/story/why-the-window-for-stock-market-bears-is-closing-rather-quickly-in-one-chart-2016-05-31)
Other markets:Oil futures
(http://www.marketwatch.com/story/oil-prices-hold-tight-as-investors-look-ahead-to-opec-meeting-2016-05-31)
traded higher, but European stocks were slightly lower. Asian
markets closed mostly up, with Chinese stocks boosted by optimism
that index provider MSCI soon could include them
(http://www.marketwatch.com/story/china-stocks-see-biggest-one-day-gain-on-msci-speculation-2016-05-31)
in an influential global benchmark.
Gold futures lost ground, as a key dollar index
(http://www.marketwatch.com/story/dollar-marooned-vs-yen-as-investors-wait-for-us-data-2016-05-31)
inched higher, helped by Yellen's comments on Friday.
Economic news:Consumer spending leapt
(http://www.marketwatch.com/story/consumers-boost-spending-in-april-by-most-in-nearly-seven-years-2016-05-31)
1% in April to mark the biggest gain in almost seven years, as
Americans splurged on new cars and trucks. Higher gas prices also
contributed.
Incomes rose by 0.4% for the third time in the first four months
of 2016. The savings rate in April fell to 5.4% last month after
hitting a four-year high in March. The PCE index, the Federal
Reserve's preferred inflation barometer, rose 1.1% in the 12 months
ended in April. That's up from 0.8% in the prior month.
U.S. house prices jumped 0.9% in March, according to a price
gauge released Tuesday.
Check out:
St. Louis Fed President James Bullard said Monday he's reserving
judgment on rate increases
(http://www.marketwatch.com/story/feds-bullard-monetary-policy-has-little-effect-on-employment-2016-05-29)
and will digest more data before making a decision next month.
Individual movers: Shares in Medtronic PLC(MDT) rose after the
maker of medical devices posted better-than-expected earnings
(http://www.marketwatch.com/story/medtronic-beats-profit-and-sales-expectations-2016-05-31)
before the open.
Great Plains Energy Inc.(GXP) on Tuesday said it agreed to buy
(http://www.wsj.com/articles/great-plains-energy-to-buy-westar-energy-for-8-6-billion-1464691927)Westar
Energy Inc.(WR) for $8.6 billion, marking a big consolidation in
the utilities sector (XLU).
In merger news in the drug industry, Jazz Pharmaceuticals
PLC(JAZZ) agreed to buy Celator Pharmaceuticals Inc.(CPXX) in a
$1.5 billion deal
(http://www.marketwatch.com/story/jazz-pharmaceuticals-to-buy-celator-for-about-15-bln-2016-05-31).
StemCells Inc.(STEM) shares plunged 75% announcing plans to wind
down operations
(http://www.marketwatch.com/story/stemcells-plans-to-wind-down-company-after-it-runs-out-of-money-2016-05-31).(STEM)
(END) Dow Jones Newswires
May 31, 2016 10:14 ET (14:14 GMT)
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