Nasdaq manages to eke out small gains with help from Apple
U.S. stocks ended Monday's choppy session roughly where they started it, as a late-afternoon rebound helped pare early losses on 23 February 2015. The S&P 500 ended flat after spending the day in a seven-point range while the Nasdaq finished a little ahead of the benchmark index. A drop in oil prices weighed on energy companies. Meanwhile, a pickup in merger-and-acquisition activity in the pharmaceutical industry helped push health-care stocks slightly higher.
The Dow Jones Industrial Average retreated from a record close notched on Friday. The blue-chip index slipped 23.54 points, or 0.1%, to 18,116.90. The Nasdaq Composite ended the session 5 points, or 0.1%, higher at 4,960. The S&P 500 closed flat at 2,109.66.
Monday's trade was skewed toward defensive plays, as investors preferred utilities and health-care stocks, while staying away from telecoms, energy and consumer discretionary companies.
More than half of Dow's 30 members finished lower. Boeing was the biggest decliner, while UnitedHealth Group led gainers. Tech sector was helped in large by a 2.7% jump in Apple.
In large part, the lack of activity on Monday could be explained by participants sticking to the sidelines ahead of Fed Chair Janet Yellen's semiannual testimony on monetary policy. Tomorrow, Ms. Yellen will appear before the Senate Banking Committee at 10:00 ET while her appearance in front of the House Financial Services Committee will follow on Wednesday. Since the minutes from the latest FOMC policy meeting showed waning support for increasing the fed funds rate during the first half of the year, participants will be on a lookout for similar hints from the Fed Chair tomorrow.
Meanwhile in Europe, Greece's government was expected to present a list of reforms today, but it remains unclear whether the Eurogroup received that list. Greek Finance Minister Yanis Varoufakis reportedly said that the list was indeed delivered today, but separate reports indicated reform plans will be submitted tomorrow.
The health care sector ended in the lead with Valeant Pharmaceuticals spiking 14.7% after agreeing to acquire Salix Pharmaceuticals for $158.00/share.
Economic data at Wall Street was limited to the Existing Home Sales report, which showed a 4.9% decline in January to a seasonally adjusted annual rate of 4.82 million from an upwardly revised 5.07 million (from 5.04 million) in December while the consensus expected a decline to 4.95 million SAAR. The existing home sales data is derived from actual closings. Even though mortgage rates declined significantly in January, the impact from lower mortgage rates will not be felt until February. Furthermore, inventory levels continue to be troublesome for growth. During normal sales periods, inventory levels typically hold at roughly 6 months at the current sales rate. In January, inventories represented only a 4.7 months' supply.
Bullion prices settled little lower on Monday, 23 February 2015 at Comex but found some support as traders watched developments linked to Greece's bailout extension. Strength in the U.S dollar on Monday also put pressure on dollar-denominated prices for bullions.
Gold for April delivery fell $4.10, or 0.3%, to settle at $1,200.80 an ounce on Comex. The decline marked a second straight session decline for prices. March silver also declined by 1.9 cents, or 0.1%, to end at $16.254 an ounce.
Crude-oil futures settled below $50 a barrel on Monday, 23 February 2015 at Nymex amid investor concerns about excess crude supply in U.S. markets, but cold weather and a refinery strike fed a 5% rally in heating-oil prices. Strength in the U.S dollar on Monday also put pressure on dollar-denominated prices for commodities.
On the New York Mercantile Exchange, crude for delivery in April lost $1.36, or 2.7%, to settle at $49.45 a barrel.
Treasuries climbed throughout the day, ending on their highs with the 10-yr yield down five basis points at 2.06%.
Tomorrow, the Case-Shiller 20-city Index for December (consensus 4.3%) will be released at 9:00 ET while February Consumer Confidence will cross the wires at 10:00 ET (consensus 99.3).
Powered by Capital Market - Live News
