lundi 6 avril 2015
U.S. stocks bounce back from early losses
Posted on 09:06 by nice news
U.S. stocks erased early losses to move decidedly higher in Monday trading.
The stock market’s upside reversal was pinned on traders’ bets that the Federal Reserve will move more slowly in raising interests rates given Friday’s disappointing jobs report, which came out while the market was closed for Good Friday.
The S&P 500 SPX, +0.66% was last up about 12 points, or 0.6%, to 2,079, while the Dow Jones Industrial Average DJIA, +0.63% gained 94 points, or 0.5%, to 17,857 after initially dropping more than 100 points. The Nasdaq Composite COMP, +0.51% added 22 points, or 0.5%, to 4,908.
Monday’s action came after a drop in Friday’s shortened futures-trading session in the wake of the weaker-than-expected jobs report. Payrolls rose by just 126,000 in March, far undershooting a MarketWatch consensus estimate of 243,000.
Read: Fed hike in June seems remote after the jobs report
To some, the weak report builds a case for the Fed pushing out an interest-rate hike even further. Such a delay would normally be read as a positive for stocks, but there are also concerns that companies are facing difficult conditions to improve profits.
“Earnings are expected to decline for the next two quarters, the economy might actually have contracted in the first quarter and the Federal Reserve is set to raise interest rates. A powerful backdrop for equity prices this is not,” said Dan Greenhaus, chief strategist at BTIG, in a note.
Greenhaus said weak economic reports so far haven’t stopped the bull market, because corporate profits have helped keep stock prices higher. He said investors will be watching comments from companies for clues as to whether the market can continue to move higher.
If companies can show the dollar’s rally has been a “temporary hiccup,” and the fall in oil prices is supporting consumer s
The stock market’s upside reversal was pinned on traders’ bets that the Federal Reserve will move more slowly in raising interests rates given Friday’s disappointing jobs report, which came out while the market was closed for Good Friday.
The S&P 500 SPX, +0.66% was last up about 12 points, or 0.6%, to 2,079, while the Dow Jones Industrial Average DJIA, +0.63% gained 94 points, or 0.5%, to 17,857 after initially dropping more than 100 points. The Nasdaq Composite COMP, +0.51% added 22 points, or 0.5%, to 4,908.
Monday’s action came after a drop in Friday’s shortened futures-trading session in the wake of the weaker-than-expected jobs report. Payrolls rose by just 126,000 in March, far undershooting a MarketWatch consensus estimate of 243,000.
Read: Fed hike in June seems remote after the jobs report
To some, the weak report builds a case for the Fed pushing out an interest-rate hike even further. Such a delay would normally be read as a positive for stocks, but there are also concerns that companies are facing difficult conditions to improve profits.
“Earnings are expected to decline for the next two quarters, the economy might actually have contracted in the first quarter and the Federal Reserve is set to raise interest rates. A powerful backdrop for equity prices this is not,” said Dan Greenhaus, chief strategist at BTIG, in a note.
Greenhaus said weak economic reports so far haven’t stopped the bull market, because corporate profits have helped keep stock prices higher. He said investors will be watching comments from companies for clues as to whether the market can continue to move higher.
If companies can show the dollar’s rally has been a “temporary hiccup,” and the fall in oil prices is supporting consumer s
U.S. stocks bounce back from early losses
Categories: U.S. stocks bounce back from early losses
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