U.S. stocks were higher Monday, with the Dow index on par to finish April with a gain of about 1.6% as consumer spending and pending home sales data came in better than expected.
Investors were also cheered after Italy entered firm ground as Prime Minister Enrico Letta and his new cabinet were sworn in on Sunday, putting an end to months of political uncertainty.
European officials are also set to approve a long-delayed 2.8 billion euro tranche of bailout money for Greece after the country's parliament passed a reform law Sunday that calls for the dismissal of 15,000 workers by the end of 2014 and the extension of a property tax assessed through citizens' electric bills. The next obstacle for Greece is winning approval for a 6 billion euro disbursement it needs by May 20 in order to repay a maturing bond held by the ECB.
In early afternoon trade on Monday, the Dow was up 103 points at 14,816, the Nasdaq rose 35 points to 3,314 and the S&P 500 gained 13 points to 1,595 - on track for a 2.1% monthly gain.
In the U.S. on Monday, consumer spending in March rose 0.2%, better than the expected rise of 0.1%, but slower than the reading of a 0.7% increase in February. Personal income rose 0.2%, meanwhile, compared to estimates for a 0.4% increase, and a 1.1% rise in February.
Stocks continued their climb after the National Association of Realtors reported pending sales of homes climbed 1.5% last month, compared to expectations for a 0.7% increase.
Also this week, the Federal Reserve's open market committee will meet Tuesday and Wednesday, with investors expecting the central bank to keep its monetary policy in place, boosting precious metals on Monday.
In corporate news, Herbalife (NYSE:HLF) is expected to report first-quarter earnings of $1.07 a share after the closing bell Monday, with investors likely to keep a close eye on the company has been the subject of a personal disagreement between Carl Icahn and Bill Ackman. Ackman alleged in late 2012 that the nutritional supplement company was running a pyramid scheme and revealed a sizeable short position, while Icahn built his stake in the business to more than 15%. Shares of Herbalife edged up Monday.
Also after the closing bell today, Express Scripts (NASDAQ:ESRX), Hertz (NYSE:HTZ) and Newmont Mining (NYSE:NEM) are to due to report.
This morning, Loews (NYSE:L) said its quarterly profit fell 34% on a higher impairment charge related to the carrying value of its natural gas and oil properties. Shares were basically flat.
Of the 271 S&P 500 companies that have reported earnings to date for the quarter, 73% have reported earnings above estimates, according to data from FactSet, with the percentage slightly above the average of 70% recorded over the past four quarters. However, only 44% of companies have reported sales above estimates, well below the average of 52% recorded over the past four quarters.
In other news, Bayer AG (FRA:DE:BAYN) on Monday said it will buy birth control company Conceptus (NASDAQ:CPTS) for $1.1 billion.
Tenet Healthcare Corp. (NYSE:THC), the third-largest U.S. hospital company, extended this year's gains, soaring as much as 13% as hospitals will get a pay raise from the U.S. government for treating patients in the nation’s Medicare program.
Actavis Inc. (NYSE:ACT) rallied for a third day and Valeant Pharmaceuticals International Inc. (NYSE:VRX) snapped a three-day losing streak as media reports suggested the companies are in merger talks that have stalled.
In financial stocks, Moody’s Corp. (NYSE:MCO), the second-largest credit rate, jumped over 8%, earlier climbing to the highest level since July 2007. Moody’s, along with its rival Standard & Poor’s Ratings Services, settled a lawsuit with investors led by Abu Dhabi Commercial Bank, who had claimed that Moody’s and S&P inflated ratings on two investment vehicles that they had purchased, according to The Wall Street Journal.
*Commodities *
Gold for June delivery was lately up by $14 to $1,468 an ounce on strong physical demand and a weaker U.S. dollar, while oil futures gained $1.17 to $94.18 a barrel amid the weaker greenback and ECB rate cut expectations.
*Europe*
European markets finished broadly higher today with shares in France leading the region. The CAC 40 closed up 1.54% while Germany's DAX rose 0.75% and Britain's FTSE 100 advanced 0.49%. Reported by Proactive Investors 1 hour ago.
Investors were also cheered after Italy entered firm ground as Prime Minister Enrico Letta and his new cabinet were sworn in on Sunday, putting an end to months of political uncertainty.
European officials are also set to approve a long-delayed 2.8 billion euro tranche of bailout money for Greece after the country's parliament passed a reform law Sunday that calls for the dismissal of 15,000 workers by the end of 2014 and the extension of a property tax assessed through citizens' electric bills. The next obstacle for Greece is winning approval for a 6 billion euro disbursement it needs by May 20 in order to repay a maturing bond held by the ECB.
In early afternoon trade on Monday, the Dow was up 103 points at 14,816, the Nasdaq rose 35 points to 3,314 and the S&P 500 gained 13 points to 1,595 - on track for a 2.1% monthly gain.
In the U.S. on Monday, consumer spending in March rose 0.2%, better than the expected rise of 0.1%, but slower than the reading of a 0.7% increase in February. Personal income rose 0.2%, meanwhile, compared to estimates for a 0.4% increase, and a 1.1% rise in February.
Stocks continued their climb after the National Association of Realtors reported pending sales of homes climbed 1.5% last month, compared to expectations for a 0.7% increase.
Also this week, the Federal Reserve's open market committee will meet Tuesday and Wednesday, with investors expecting the central bank to keep its monetary policy in place, boosting precious metals on Monday.
In corporate news, Herbalife (NYSE:HLF) is expected to report first-quarter earnings of $1.07 a share after the closing bell Monday, with investors likely to keep a close eye on the company has been the subject of a personal disagreement between Carl Icahn and Bill Ackman. Ackman alleged in late 2012 that the nutritional supplement company was running a pyramid scheme and revealed a sizeable short position, while Icahn built his stake in the business to more than 15%. Shares of Herbalife edged up Monday.
Also after the closing bell today, Express Scripts (NASDAQ:ESRX), Hertz (NYSE:HTZ) and Newmont Mining (NYSE:NEM) are to due to report.
This morning, Loews (NYSE:L) said its quarterly profit fell 34% on a higher impairment charge related to the carrying value of its natural gas and oil properties. Shares were basically flat.
Of the 271 S&P 500 companies that have reported earnings to date for the quarter, 73% have reported earnings above estimates, according to data from FactSet, with the percentage slightly above the average of 70% recorded over the past four quarters. However, only 44% of companies have reported sales above estimates, well below the average of 52% recorded over the past four quarters.
In other news, Bayer AG (FRA:DE:BAYN) on Monday said it will buy birth control company Conceptus (NASDAQ:CPTS) for $1.1 billion.
Tenet Healthcare Corp. (NYSE:THC), the third-largest U.S. hospital company, extended this year's gains, soaring as much as 13% as hospitals will get a pay raise from the U.S. government for treating patients in the nation’s Medicare program.
Actavis Inc. (NYSE:ACT) rallied for a third day and Valeant Pharmaceuticals International Inc. (NYSE:VRX) snapped a three-day losing streak as media reports suggested the companies are in merger talks that have stalled.
In financial stocks, Moody’s Corp. (NYSE:MCO), the second-largest credit rate, jumped over 8%, earlier climbing to the highest level since July 2007. Moody’s, along with its rival Standard & Poor’s Ratings Services, settled a lawsuit with investors led by Abu Dhabi Commercial Bank, who had claimed that Moody’s and S&P inflated ratings on two investment vehicles that they had purchased, according to The Wall Street Journal.
*Commodities *
Gold for June delivery was lately up by $14 to $1,468 an ounce on strong physical demand and a weaker U.S. dollar, while oil futures gained $1.17 to $94.18 a barrel amid the weaker greenback and ECB rate cut expectations.
*Europe*
European markets finished broadly higher today with shares in France leading the region. The CAC 40 closed up 1.54% while Germany's DAX rose 0.75% and Britain's FTSE 100 advanced 0.49%. Reported by Proactive Investors 1 hour ago.