By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Investors shrug off disappointing trade data from China
NEW YORK (MarketWatch) -- U.S. stocks edged higher on Monday as
investors readied for the rollout of earnings from large banks and
brushed aside disappointing trade reports from China that suggested
weakening global growth.
The S&P 500 (SPX) was up 4 points, or 0.2%, to 2,106.18,
with six of its 10 main sectors trading higher.
The Dow Jones Industrial Average (DJI) added 37 points, or 0.3%,
to 18,094, with more than half of its 30 components showing
gains.
The Nasdaq Composite (RIXF) rose 23 points, or 0.5%, to
5,018.9.
Meanwhile, a measure of smaller companies, known as the Russell
2000 (RUT) added 2 points, or 0.2%, to 1,267.35, setting an
all-time high. The index of small-cap companies outperformed the
S&P 500 year-to-date, rising 5.2%, compared with 2.3% gain for
the large-caps.
On Monday, Asia stocks shrugged off data that showed exports in
China falling
(http://www.marketwatch.com/story/china-trade-slumps-on-weak-demand-2015-04-12-234854516)
by the most since February of last year, a 15% drop. The Hong Kong
Hang Seng Index and the Shanghai Composite Index hit new seven-year
highs, though some believe the stock surge may end in tears
(http://www.marketwatch.com/story/chinas-stock-connect-more-boom-and-bust-2015-04-12).
But that weak China data have spurred expectations that another
devaluation out of Beijing could be coming, said Nour Al-Hammoury,
chief market strategist at ADS Securities in Abu Dhabi, in a
note.
He said volatility will be on the rise for stocks and many will
be watching how the market handles continued gains for the dollar
(http://www.marketwatch.com/story/dollars-rising-trend-remains-intact-amid-weak-china-data-2015-04-13-2103105)(DXY),
which also got a lift from data pointing to weakening trade from
the China.
Also read: 'Stock Connect' buyers stay out of Hong Kong blue
chips ()
Europe stocks (http://www.marketwatch.com/storyno-meta-for-guid)
were marginally higher, though the FTSE 100 index
(http://www.marketwatch.com/story/ftse-100-eases-from-record-with-bhp-hurt-after-downgrade-2015-04-13)
eased back as miners got hit by a downgrade of the iron-ore sector,
and weak China data weighed.
The only item on the U.S. data calendar is the Federal budget
for March, due at 2 p.m. Eastern Time.
Earnings lining up for stocks: Earnings season shifts into high
gear this week with J.P. Morgan Chase & Co.(JPM) due to report,
along with Wells Fargo & Co.(WFC) and Johnson &
Johnson(JNJ) Tuesday morning before the market opens. The rest of
the week will see other big banks roll out.
Read: B. of A. results crucial to financial sector earnings
gains
(http://www.marketwatch.com/story/b-of-a-results-crucial-to-financial-sector-earnings-gains-2015-04-12)
Pep Boys--Manny Moe and Jack(PBY) will report after trading
closes on Monday, along with Layne Christensen Co.(LAYN)
Shares of Qualcomm Inc.(QCOM) jumped 2.4% after The Wall Street
Journal
(http://www.marketwatch.com/story/activist-buys-big-stake-in-qualcomm-2015-04-13-04852655)
reported that activist investor Jana Partners LLC is pressuring the
chip maker to consider a breakup and other options to boost its
weak share price.
Shares of Builders FirstSource, Inc.(BLDR) jumped 52% after the
company announced plans to buy ProBuild.
Other markets:Crude-oil prices
(http://www.marketwatch.com/storyno-meta-for-guid)(CLK5) pushed
higher on Monday, while gold (GCK5) pulled back as the dollar
rose.
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