By Victor Reklaitis and Barbara Kollmeyer, MarketWatch
Gold rallies; oil prices also higher
NEW YORK (MarketWatch) -- U.S. stocks erased early losses to
move decidedly higher in Monday trading.
The stock market's switch to rally mode was pinned on traders'
bets that the Federal Reserve will move more slowly in raising
interests rates given Friday's disappointing jobs report.
The S&P 500 (SPX) was last up about 15 points, or 0.7%, to
2,082, while the Dow Jones Industrial Average (DJI) gained 125
points, or 0.7%, to 17,889 after dropping more than 100 points out
of the gate. The Nasdaq Composite (RIXF) added 26 points, or 0.5%,
to 4,913.
The "dismal" jobs report, which came out while the market was
closed for Good Friday, and a speech by New York Fed President
William Dudley were helping stocks advance, according to Peter
Cardillo, chief market economist at Rockwell Global Capital. Dudley
reiterated the central bank's mantra that it will be data-dependent
in deciding when to raise rates, Cardillo told MarketWatch.
"That renews the theme of lower interest rates for six to nine
months," Cardillo said.
Read more: Fed's Dudley signals go-slow approach to rate hike
(http://www.marketwatch.com/story/feds-dudley-signals-go-slow-approach-to-rate-hike-2015-04-06)
(http://www.marketwatch.com/story/feds-dudley-signals-go-slow-approach-to-rate-hike-2015-04-06)
(http://www.marketwatch.com/story/feds-dudley-signals-go-slow-approach-to-rate-hike-2015-04-06)Also
see: After jobs report, investors pencil in December rate hike
(http://www.marketwatch.com/story/after-jobs-data-investors-pencil-in-december-rate-hike-2015-04-06)
In other U.S. economic news on Monday, the latest reading for
the Institute for Supply Management's nonmanufacturing index was
slightly better than expected
(http://www.marketwatch.com/story/ism-services-index-dips-in-march-but-shows-steady-us-growth-2015-04-06),
showing a dip from the prior month but still indicating steady U.S.
growth.
Later this week, Alcoa Inc. (AA) will provide the unofficial
start of first-quarter earnings season with its report Wednesday
after the close.
Individual movers:Hudson City Bancorp.(HCBK) was the biggest
decliner among S&P 500 stocks after the company announced a
delay again for its planned merger with M&T Bank Corp.(MTB)
Mattel Inc.(MAT) was among the S&P's biggest gainers after a
B. Riley analyst upgraded the toy maker to buy
(http://www.marketwatch.com/story/mattels-stock-rallies-as-high-dividend-yield-prompts-analyst-upgrade-2015-04-06)
from neutral, citing an attractive risk-versus-reward scenario.
Read more about Monday's jumpiest stocks in the Movers &
Shakers column
(http://www.marketwatch.com/story/herbalife-sinks-on-reports-of-probe-uniqure-soars-on-bristol-myers-deal-2015-04-06)
Other markets:Gold futures
(http://www.marketwatch.com/story/gold-draws-buyers-as-stocks-drop-2015-04-06)(GCK5)
gained as the dollar (DXY) slipped in the wake of the soft jobs
report. In Asia, several markets, including those in China and Hong
Kong, were closed for a holiday, while Japan's Nikkei 225 finished
down 0.2%.
European markets are closed until Tuesday. Rockwell Global's
Cardillo cautioned that Monday's action in the U.S. stock market
could be skewed by light trading as overseas investors remain on
vacation.
Meanwhile, May crude oil
(http://www.marketwatch.com/story/oil-rebounds-as-iran-exports-seen-taking-months-to-ramp-up-2015-04-06)(CLK5)
rallied as some analysts said it could take several months before
last week's Iranian nuclear deal spurs more crude supply from that
country.
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