By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market rallied Monday
following upbeat economic data and a reaction from Western
governments to the vote in Crimea that was limited to visa bans and
asset freezes.
The S&P 500 (SPX) rose 18.47 points, or 1%, to 1,859.59,
recouping some of the steep losses from last week. Industrials and
technology stocks were leading broad-based gains. The benchmark
index turned positive for the year.
The Dow Jones Industrial Average (DJI) jumped 187 points, or
1.2%, to 16,251.90, with all 30 components trading higher.
The Nasdaq Composite (RIXF) rallied 44.85 points, or 1.1%, at
4,290.05.
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"Markets had discounted the vote in Crimea, but they also
expected a much harsher reaction from the Western governments,"
said Quincy Krosby, market strategist at Prudential Financial.
"Angela Merkel's comment last week led the market to believe
that sanctions would be more significant. As sanctions turned out
to be minimal, markets quickly moved on and were able to focus on
economic data, which were good," she added.
A batch of economic reports released before and after the market
opened showed data that was slightly better than expected.
Industrial production in February grew at the fastest monthly rate
in six months, bouncing back after a weather-addled start to the
year. An index of manufacturing conditions in the New York region
showed modest improvement in March after a sharp drop in the prior
month.
Separately, a gauge of confidence among home builders ticked up
in March, but remained close to the lowest level since May and
signaled that builders, generally, are pessimistic about sales
trends, according to data released Monday.
Later this week, investors will also get a Federal Open Market
Committee meeting.
Markets sold off last week as fears over the events in Ukraine
forced investors to seek safe havens. However, once the outcome of
the vote was made public, stock markets around the globe rose. The
Wall Street Journal reported that according to preliminary results,
more than 95% of Crimeans voted to break away from Ukraine on
Sunday.
On Monday, the U.S. market shrugged off sanctions by the Western
government in the wake of the vote in Crimea.
The EU ministers imposed visa bans on 21 Russian officials and
froze assets, according the Wall Street Journal citing sources,
while the White House followed suit, targeting President Vladimir
Putin's closest advisers and other top Russian policy makers.
Among individual stocks, Yahoo (YHOO) shares rose 3.9%. The
company owns a 24% stake in Alibaba, which is reportedly getting
ready for an initial public offering in New York. At the same time,
Alibaba's smartphone-payment system has been blocked by China
because of potential consumer risks.
First Solar Inc. (FSLR) gained 5.1%, making it the top performer
on the S&P 500 index. Analysts at Stifel Nicolaus said last
week that they expect positive commentary about the company's cost
structure when it hosts its analyst meeting on Wednesday.
Biogen Idec Inc. (BIIB) shares climbed 4.2% after it was slated
to be included in the S&P 100 index on Friday.
WPX Energy Inc. (WPX) shares slid 1.7% as the stock is being
removed from the S&P 500 and being replaced by Keurig Green
Mountain Inc. Keurig Green Mountain (GMCR) shares rose 0.8%
VeriSign Inc. (VRSN) shares dropped 6.5%. Cowan & Co.
downgraded VeriSign to a market perform rating from outperform on
Monday and cut its price target to $49 from $63.
Shares in Castlight Health Inc. (CSLT) dropped 5.3% following a
149% jump in the market debut on Friday.
Plug Power (PLUGD) shares are up only 0.4% after the stock's
early morning rebound lost momentum. Plug Power witnessed volatile
trading last week as positive news of a major deal with Wal-Mart
was offset by bearish comments from analysts. Peers FuelCell Energy
Inc. (FCEL) fell 6.6% and Ballard Power Systems Inc. (BLDP) slid
5.3%.
In overseas markets, gains were also seen across Europe, with
the Stoxx Europe 600 up 0.6% and emerging markets getting a bump.
Russia's blue-chip MICEX index climbed 2% after a drop of more than
7% last week.
Asia, meanwhile, saw a mixed session, with some indexes pulling
back on Ukraine worries. But the China Shanghai Composite climbed
1%, led by property, auto and cement companies, after the
government reportedly outlined urbanization-spending plans.
Prices for gold (GCJ4) were almost unchanged, while the dollar
(USDJPY) regained some ground as investors shifted away from the
perceived safe haven of the Japanese yen.
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