By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks finished Monday with
strong gains as investors shrugged off the narrow scope of EU and
U.S. sanctions following the vote in Crimea in favor of leaving
Ukraine.
Investors instead focused on better-than-expected economic data,
including industrial production and manufacturing activity in the
New York region. However, stocks rose amid the lowest trading
volumes this year.
The S&P 500 (SPX) ended the day 17.70 points, or 1%, higher
at 1,858.83, finishing above a technical level of 1,850.
Industrials and technology stocks lead broad-based gains. The
benchmark index turned positive for the year.
The Dow Jones Industrial Average (DJI) gained 181.55 points, or
1.1%, to 16,247.22, rising for the first time in six sessions. All
30 members of the blue-chip index rose on Monday.
The Nasdaq Composite (RIXF) finished the day 34.55 points, or
0.8%, higher at 4,279.95.
Read the recap of our live stock-market coverage.
"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.
After the overwhelming majority of Crimeans voted to break away
from Ukraine on Sunday, Russia took another step to annexing the
region despite the sanctions.
Global stock markets, including 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 4%. 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 4.6%, 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 3.9% after it was slated
to be included in the S&P 100 index on Friday.
Keurig Green Mountain (GMCR) shares rose 2% on the news that it
is replacing WPX Energy Inc on the S&P 500 index.
VeriSign Inc. (VRSN) shares dropped 5.8%. 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 6.4% following a
149% jump in the market debut on Friday.
Plug Power (PLUGD) shares fell 3%. 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 1.1% and emerging markets getting a bump.
Russia's blue-chip MICEX index climbed 3.6% 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 of gold futures fell, ending a five-session streak of
gains. Oil and Treasuries also fell, as fears over Ukraine
faded.
More must reads from MarketWatch:
After Crimea secession vote, what's next for markets?
The case for buying emerging markets
5 ways the Fed can get the economy back to normal
Subscribe to WSJ: http://online.wsj.com?mod=djnwires