By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks stepped higher on Monday,
with the Dow industrials trading above 16,000 for the first time
and the S&P 500 holding near its own milestone of 1,800.
The market joined in global gains that came after upbeat
European trade data and further reaction to Chinese reforms. The
Federal Reserve's easy-money stance was also a key driver for
investors.
The S&P 500(SPX) was last up 2 points, or 0.1%, to 1,800.
The Dow Jones Industrial Average (DJI) jumped 51 points, or 0.3%,
to 16,013.
The Nasdaq Composite(RIXF) was last up 3 points, or 0.1%, to
3,989, as it also approached a milestone at 4,000.
Fawad Razaqzada, technical analyst at Forex.com, said the 16,000
level for the Dow could trigger some profit-taking and a "healthy
pullback" following the big march higher for markets. "However,
should this not come to fruition, then I would interpret it as an
indication that the rally is extremely strong and that it has
further room to the upside," Razaqzada wrote in a note. Read: This
bull market isn't so old or different
Craig Erlam, markets analyst at Alpari U.K., said markets are
continuing to build on optimism surrounding the Fed's bond-buying
program. "There's no doubt that it has been a huge contributor to
the rally this year and Janet Yellen's testimony last week
suggested it's going to carry on, in its current form," he said in
emailed comments. Yellen is nominated to take over leadership of
the Fed from Ben Bernanke at the beginning of next year. "As long
as the Fed continues to pump $85 billion per month into the
financial system, traders will be bullish on stocks," Erlam
noted.
On Friday, the S&P 500 and Dow cinched record closes again
and snared their sixth weekly gains in a row, up 1.6% and 1.3%,
respectively. The S&P 500 is enjoying its longest winning
streak since February. Check out MarketWatch's live blog of
Monday's stock-market action.
* The buzz: The three main U.S. stock indexes all trade near big
round numbers, such as 16,000 for the Dow, 1,800 for the S&P
500 and 4,000 for the Nasdaq. Technical analysts often say round
numbers can serve as important psychological levels, with profit
taking and resistance appearing at those levels. However, John
Prestbo, who is retired as editor and executive director of Dow
Jones Indexes, argued that the current bull market isn't so old or
different from previous rallies. Read his commentary piece
here.
* Today's market-moving news: Investors will take in several Fed
speeches, including New York Fed President William Dudley at 12:15
p.m. and Philly Fed President Charles Plosser at 1:30 p.m. On
Monday, the latest reading for a housing-market index missed
forecasts, but one strategist downplayed the impact, noting that
housing's big volumes come in the spring and summer. "This is not a
big focus point for the market in the winter months," said Marc
Pado, U.S. market strategist at investment-advisory firm DowBull,
in an interview on Monday.
* Today's movers & shakers: Tyson Foods Inc. rose 3% after
its upbeat earnings report, while Urban Outfitters Inc. was little
changed and Salesforce.com Inc. fell 0.6% ahead of their quarterly
reports after the bell. Read more in Movers & Shakers.
* Other markets:European stocks mostly advanced after
encouraging trade data, while Chinese stocks closed sharply higher
as investors had their first chance to react to reform details out
late Friday. Gold prices declined, oil futures edged up and the
dollar fell against other major currencies.
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