Stocks Close Mostly Higher Following Last Week's Pullback - U.S. Commentary

(RTTNews) - Stocks moved mostly higher over the course of the trading day on Monday, regaining some ground following the pullback seen last week. The major averages all moved to the upside but remain well off last Monday's highs.

While the major averages all closed in positive territory, the Dow outperformed its counterparts. The Dow advanced 138.94 points or 0.8 percent to 17,995.72, the Nasdaq rose 15.07 points or 0.3 percent to 4,942.44 and the S&P 500 climbed 8.17 points or 0.4 percent to 2,079.43.

The strength on Wall Street was partly due to bargain hunting on the heels of the sell-off seen last Friday, which reflected concerns about the outlook for interest rates.

Buying interest remained somewhat subdued, however, with traders looking ahead to next week's Federal Reserve meeting.

After last Friday's much better than expected jobs report, the upcoming Fed meeting is likely to remain the main topic of conversation on Wall Street.

The Fed is not expected to raise interest rates at the meeting, but its accompanying statement may signal that a rate hike is on the horizon.

A lack of major U.S. economic data also kept some traders on the sidelines, although key reports on retail sales and wholesale price inflation are due to be released later in the week.

The triple-digit gain posted by the Dow came as the vast majority of the components of the blue chip index moved to the upside on the day.

United Technologies (UTX) and UnitedHealth (UNH) posted standout gains, advancing by 1.9 percent and 1.8 percent, respectively.

Among individual stocks, shares of RTI International Metals (RTI) moved sharply higher after the titanium supplier agreed to be acquired by Alcoa (AA) for $1.5 billion in stock.

Auto giant General Motors (GM) also posted a strong gain after announcing plans to repurchase $5 billion worth of stock.

On the other hand, shares of Blackberry (BBRY) moved notably lower after Goldman Sachs downgraded its rating on the smartphone maker to Sell from Neutral.

Sector News

Despite the strength shown by the broader markets, most of the major sectors ended the day showing only modest moves.

Telecom stocks turned in a strong performance, however, with the NYSE Arca Telecom Index advancing by 1.1 percent. Sprint (S) helped to lead the sector higher, climbing by 2.1 percent.

Software, networking, and commercial real estate stocks also saw some strength on the day, regaining ground after seeing notable weakness last Friday.

On the other hand, gold stocks moved sharply lower on the day, dragging the NYSE Arca Gold Bugs Index down by 3.8 percent to a two-month closing low. The weakness in the sector came despite an increase by the price of gold.

Natural gas and oil service stocks also came under pressure on the day, helping to limit the upside shown by the broader markets.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan's Nikkei 225 Index slumped by 1 percent, while Hong Kong's Hang Seng Index edged down by 0.2 percent.

Meanwhile, the major European markets turned in a mixed performance on the day. While the German DAX Index rose by 0.3 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index fell by 0.5 percent and 0.6 percent, respectively.

In the bond market, treasuries regained some ground following the steep drop that was seen last Friday. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.5 basis points to 2.195 percent.

Looking Ahead

Tuesday represents another relatively quiet day on the U.S. economic front, although the Commerce Department is scheduled to release its report on wholesale inventories.