By Anora Mahmudova and Sara Sjolin, MarketWatch
Bullard says markets could have a new "tantrum"
NEW YORK (MarketWatch) -- U.S. stocks were edging higher on
Monday after solid gains last week, with investors focusing on
comments from Federal Reserve officials and digesting
weaker-than-expected existing-home sales figures.
The S&P 500 (SPX) added 4 points, or 0.2%, to 2,112 and was
within striking distance of its record high level reached on March
2.
The Dow Jones Industrial Average (DJI) rose more than 60 points,
or 0.3%, to 18,185.44 with more than two-thirds of its 30
components trading higher.
However, the Nasdaq Composite (RIXF) was trailing other indexes,
off 7 points, or 0.2%, at 5,018.64. The tech-heavy index is about
25 points below its all-time set 15 years ago.
Monday's tepid moves follow a volatile swings last week, which
was fueled by fresh comments from the Federal Reserve about raising
interest rates. The central bank dropped its reference to being
"patient," but the market has interpreted the central bank's
overall position as being in no hurry to tighten policy
(http://www.marketwatch.com/story/fed-takes-step-to-rate-hike-but-scales-back-intended-pace-2015-03-18).
Fed speakers: Monetary policy still was in the spotlight, with
St. Louis Federal Reserve President James Bullard telling CNBC
Monday that the dovish statement from last week may have misplaced
investor expectations about the first rate hike. Bullard also said
the market could throw another "tantrum"
(http://www.cnbc.com/id/102525889) with the Fed possibly raising
rates later this year.
Cleveland Fed President Loretta Mester was speaking in Paris
Monday morning. Mester, who isn't a voting member of the
policy-setting committee this year, said the central bank can do
more
(http://blogs.wsj.com/economics/2015/03/23/feds-mester-fed-needs-further-refinements-of-forward-guidance/?KEYWORDS=mester)
at helping guide the market in terms of rate moves.
At 12:20 p.m. Eastern time, Fed Vice Chair Stanley Fischer gives
a speech about "monetary policy lessons and the way ahead" to the
Economic Club of New York, while San Francisco Fed President John
Williams speaks in Sydney, Australia at 10 p.m. Eastern. Fisher and
Williams are both voting members of the FOMC.
Economic data: Sales of existing homes rose 1.2% in February to
a seasonally adjusted annual rate of 4.88 million, the National
Association of Realtors reported Monday. The gain was below
expectations. The median sales price of used homes hit $202,600 in
February, up 7.5% from the year-earlier period.
Stocks to watch: Shares of Carnival Corp.(CCL) fell 2% after
Deutsche Bank cut the cruise-operator to hold from buy.
Tenet Healthcare Corp.(THC) gained 3% on news the company is
creating a $2.6 billion joint venture
(http://www.marketwatch.com/story/tenet-healthcare-to-create-26-bln-joint-venture-with-united-surgical-2015-03-23)
with United Surgical Partners International.
Gilead Sciences Inc.(GILD) dropped 2.3% after the drug maker on
Friday warned health-care providers
(http://www.bloomberg.com/news/articles/2015-03-21/gilead-warns-after-hepatitis-patient-on-heart-drug-dies)
that nine patients taking its hepatitis C drugs Harvoni or Sovaldi
along with the heart treatment amiodarone developed abnormally slow
heart beats and one died of a heart attack, according to
Bloomberg.
Shares of Kansas City Southern (KSU) dropped nearly 6%, after
the railroad company lowered its 2015 sales growth outlook.
For more on notable movers read Movers & Shakers column
(http://www.marketwatch.com/story/tenet-climbs-after-deal-news-carnival-slides-on-broker-downgrade-2015-03-23).
Other markets: Crude oil (CLK5) prices rebounded and were
slightly higher.
Metals were also mostly lower, although high-grade copper (HGK5)
bucked the negative trend. The ICE dollar index (DXY) fell to
97.15.
Stock markets in Europe
(http://www.marketwatch.com/storyno-meta-for-guid) declined, with
investors waiting for the latest developments in Greece's reform
negotiations. Greek Prime Minister Alexis Tsipras is scheduled to
meet German Chancellor Angela Merkel later on Monday.
Asian markets closed mostly higher
(http://www.marketwatch.com/storyno-meta-for-guid).
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