By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market rose on Monday,
the last day of the month and quarter, as investors found Federal
Reserve Chairwoman Janet Yellen's comments on monetary policy
reassuring.
In a speech to a Chicago community reinvestment conference on
Monday, Yellen said that the recovery still feels like a recession
to many Americans, which is why the central bank will keep its
"extraordinary" support for the economy for "some time to
come."
Earlier, stocks were boosted by hopes of monetary stimulus from
the European Central Bank after euro-zone inflation fell to its
lowest level since 2009.
The S&P 500 (SPX) rose 12 points, or 0.7%, to 1,869.76. The
benchmark index is less than a percentage points higher on the
month and gained 1.2% over the past quarter.
The Dow Jones Industrial Average (DJI) jumped 123.60 points, or
0.8%, to 16,441.95. The blue-chip index is set for a modest gain
this month, however it is still negative for the year.
The Nasdaq Composite (RIXF) added 36 points, or 0.9%, to
4,192.75. The tech-heavy index has been the worst performer so far
this month, with steep losses last week denting quarterly
gains.
Follow MarketWatch's live blog of Wednesday's stock-market
action.
In economic news, a gauge of Chicago-area businesses
unexpectedly tumbled in March, hitting the lowest level since
August, led by drops for new orders and employment, according to
data released Monday. The Chicago purchasing-managers index fell to
55.9 in March, down 3.9 points from February. Economists surveyed
by MarketWatch had expected a March index reading of 60.
The biggest data of the week will come on Friday, when the U.S.
employment report for March is due. Economists are expecting a move
higher in those numbers, which would help soothe investor worries
about the economy.
Cal-Maine Foods jumps on earnings
Cal-Maine Foods Inc. (CALM) shares rose 4.8% after the company
reported quarterly results. The food company said third-quarter
sales and profit rose due to higher prices and continued growth in
its specialty-egg business.
UTI Worldwide Inc. (UTIW) shares dropped 4.6% after the company
said its loss narrowed in the fiscal fourth quarter, but also
reported a decline in revenue. See Movers and Shakers column.
Shares of Johnson & Johnson (JNJ) rose 1.1% after agreeing
to sell its Ortho-Clinical Diagnostics unit to the Carlyle Group
for about $4 billion in a deal that's expected to close in the
middle of the year.
U.S.-listed Prana Biotechnology Ltd. (PRAN) plunged 70% to $3.02
after a failed Phase II drug trial aimed at treating
Alzheimer's.
Big Lots Inc. (BIG) shares rose 2% after the retailer was
upgraded to a buy rating from hold on Monday by KeyBanc Capital
Markets. Analysts at KeyBank cited progress being made on
turnaround initiatives from the new management team. The firm also
initiated a 12-month price target of $45 on Big Lots.
European stocks edge higher, Asian stocks mixed
In overseas markets, european stocks were firm after economic
data out of the euro zone showed inflation falling to the lowest
level since 2009, which will add pressure on the ECB to introduce
stimulus at its monetary-policy meeting on Thursday. The Stoxx
Europe 600 remained firmer, while the euro (EURUSD) fell sharply
against the dollar on the inflation news, before moving higher.
Chinese stocks had a bumpy session, with the Shanghai Composite
Index finishing down 0.4%. It lost nearly 5% in the first quarter,
for the sharpest quarterly loss since June, according to FactSet.
But investors are clinging to hopes Chinese officials won't let the
economy stumble amid a steady stream of downbeat news. The
Financial Times published a report on Sunday that said bad loans
written off by Chinese state banks had more than doubled last
year.
The Nikkei 225 index finished up 0.9%, but closed out the
quarter with a nearly 9% drop. That was its biggest quarterly fall
since June 2012, according to FactSet.
Gold priced were still under pressure, while oil prices nudged
higher.
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