By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rose sharply on Monday,
with triple-digit gains sending the Dow Jones Industrial average
into record territory while the benchmark S&P 500 has topped
its previous closing record.
Investor sentiment was boosted by rallies in Asian markets on
Monday and deal news in the food industry.
The S&P 500 (SPX) rose 18 points, or 0.9%, to 1,896.15 and
on track to top its previous closing record.
The Dow Jones Industrial Average (DJI) jumped 115 points, or
0.7%, to 16,698.49, setting an intraday high, after closing at a
record level on Friday.
The Nasdaq Composite (RIXF) added 72 points, or 1.8%, to
4,143.78.
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"The fact that markets help up well in the face of
weather-related weakness, geopolitical uncertainties and tapering
is a sign that markets will go higher," said Jim Paulsen, chief
investment officer at Wells Capital Management.
"The underlying reason for that is economic momentum. The U.S.
economy is finally exiting the 2% growth and gearing up to the 3%.
We may decide that the emerging markets are done slowing and global
demand is going to pick up," he added.
The economic calendar is light on news Monday. The U.S.
government recorded a budget surplus of $107 billion in April, the
Treasury Department reported Monday, a smaller windfall than in the
same month last year. The April surplus contributes to a steady
decline in the deficit for fiscal 2014. Shrinking U.S. deficit
could help keep interest rates low.
Pinnacle Foods soars on deal news, Twitter up on upgrade
Shares of Pinnacle Foods Inc. (PF) surged 13% after Hillshire
Brands Co. said it agreed to buy the company for about $4.3 billion
in a stock-and-cash deal. Shares of Hillshire Brands Co. (HSH) slid
5.4%.
Shares in Twitter Inc. (TWTR) rallied 5.7% after SunTrust
analysts upgraded the stock to buy from neutral and said the
company could use monetization of assets to compensate for slowing
user growth.
Pandora Media, Inc. (P) shares also rallied 6%, after MKM
Partners lifted its rating on the Internet radio company to buy
from neutral.
Gogo Inc.'s (GOGO) shares rose 5% after the
communication-services provider that offers wifi on airplanes
reported first-quarter results that beat expectations.
21st Century Fox Inc. (NWS) shares rallied 3.1% after British
Sky Broadcasting Group PLC confirmed Monday it is in preliminary
discussions to buy pay-TV units from the U.S. production firm.
After the market close, McKesson Corp. (MCK) is projected to
report fourth-quarter earnings of $2.39 a share, according to a
consensus survey by FactSet. Elizabeth Arden (RDEN) is forecast to
break even on a per-share-basis in the third quarter.
Asian shares rally, oil rises on Ukraine worries
Chinese shares rallied in Asia on Monday, with banks posting
some of the biggest advances, in what was partly a reaction to a
new market-reform blueprint announced Friday by the State Council
(China's cabinet). India shares rallied on hopes the election will
bring in a more business-friendly government. European stocks
closed higher, with the benchmark Stoxx Europe 600 index closing at
the highest level in 6 years.
Crude-oil futures (CLM4) rose after two sessions of declines on
Monday on sanction concerns, while metals also advanced across the
board, with gold futures adding 0.7%.
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