By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks tallied modest gains on
Monday as investors considered the impact of a downbeat economic
report on U.S. monetary policy.
The Dow Jones Industrial Average (DJI) added 23.32 points, or
0.2%, to 15,033.83.
The S&P 500 index (SPX) rose 4.17 points, or 0.3%, to
1,667.67, with materials and health care faring best and
telecommunications and consumer staples performing the worst among
its 10 major sectors.
The Nasdaq Composite (RIXF) gained 16.62 points, or 0.5%, to
3,674.40.
For every five stocks falling, roughly eight gained on the New
York Stock Exchange, where 111 million shares traded as of 10:50
a.m. Eastern. Composite volume topped 580 million.
Biotechnology-firm Amgen Inc. (AMGN) rallied 8.4% a day after
the drug maker agreed to buy Onyx Pharmaceuticals Inc. (ONXX) for
about $10.4 billion to gain access to its three cancer drugs.
Shares of Onyx Pharmaceuticals were up 5.7%.
Orders for U.S. durable goods fell more than expected last
month, down 7.3% in the largest drop in nearly a year. The decline
in bookings for goods intended to last at least three years is the
biggest drop since August 2012 after a 3.9% rise in June, the
Commerce Department said.
Investors look to reports on the economy with a
less-than-straight-forward view, given improvement is likely to
bring on reduced monetary easing by the Federal Reserve sooner
rather than later.
The central bank is expected to begin cutting its $85 billion in
monthly bond purchases before the end of the year, with the market
currently debating whether the move would begin in September or
December.
Treasury prices rose, with the yield on the 10-year note
(10_YEAR) falling 2 basis points to 2.794%.
"The August market-correction has been driven by tapering fear
and higher interest rates. It appears to us that tapering is now
almost fully discounted, while Treasury yields may have reached a
ceiling," noted William Riegel, head of equity investment, and Lisa
Black, head of global public fixed-income markets, at TIAA-CREF, in
emailed commentary.
"Despite the hopes of some, the minutes from the July Federal
Open Market Committee meeting gave no clear indication as to when,
beyond 'later this year,' the Fed will commence tapering asset
purchases," offered Bill Stone, chief market strategist at PNC
Asset Management Group.
"The yield on the 10-year Treasury note rose to a two-year high,
as markets worry tapering could be announced as early as September
at the next FOMC meeting," Stone added.
The dollar (DXY) edged higher against the currencies of U.S.
trading partners, including the euro (EURUSD) .
Gold futures for December delivery (GCZ3) wavered, and were off
30 cents at $1,395.50 an ounce. The price of oil fell, with crude
futures for October delivery (CLV3) off 27 cents, or 0.3%, at
$106.15 a barrel.
Down 3% in August, the Dow industrials on Friday marked a third
consecutive weekly drop, the longest weekly losing streak since
mid-November 2012. Both the S&P 500 and Nasdaq Composite gained
for the week, with the former off 1.1% in August and the latter up
1.3% for the month.
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