By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Apple Watch unveiled; General Motors sets buybacks
NEW YORK (MarketWatch) -- U.S. stocks were extending gains in
midafternoon action Monday as Wall Street marked the sixth
anniversary of the bull market with limited fanfare.
The S&P 500 (SPX) was up 10.66 points, or 0.5% at 2,081.92.
The Dow Jones Industrial Average (DJI) also extended gains,
advancing 161.12 points, or 0.9%, to 18,017 with more than
two-thirds of its 30 components trading higher.
The Nasdaq Composite (RIXF) rose 17.65 points, or 0.4%, to
4,945.03.
Shares of Apple Inc. (AAPL) rose 1.6% as the company unveiled
its much-anticipated Apple Watch device as well as a new, thinner
MacBook notebook computer. Watch Apple live blog
(http://blogs.marketwatch.com/thetell/2015/03/09/live-blog-apple-expected-to-unveil-apple-watch-details/).
On Friday, investors learned that Apple will join the Dow Jones
Industrial Average later this month
(http://www.marketwatch.com/story/will-2015-be-apples-blue-chip-debut-2014-12-15).
See: Why the six-year bull market has a shot at celebrating its
seventh birthday
(http://www.marketwatch.com/story/why-the-bull-market-is-ready-to-celebrate-its-7th-birthday-2015-03-06)
"Markets aren't sentimental, they do not react to
anniversaries," said Jonathan Golub, chief U.S. market strategist
at RBC Capital Markets, noting that he's optimistic about the
market's outlook.
"The thing that makes the bull market end is a recession and
economies do not drift into a recession. Usually, recessions hit
suddenly when companies lay off lots of people, cut inventories
drastically. We are not seeing any indications of that," Golub
said.
Some investors worry that stock values are too lofty amid an
economic recovery from the depths of the financial crisis that
appears unsteady in places.
The S&P 500 hit a bottom on March 9, 2009 at 676.53, losing
more than half its value from the peak in October 2007, but in the
six years since that low, has more than tripled in value.
"The market needs some time to let earnings catch up with
stretched valuations. It also needs some time to get used to
monetary normalization, which is now even more likely to start at
the June 16-17 meeting of the FOMC," said Ed Yardeni, chief
investment strategist at Yardeni Research, in a note on Monday.
"The good news is that the stock market's reaction to Friday's
[strong] employment news reduces the risk of a melt-up in stocks,"
Yardeni wrote.
The dollar weakened as investors flocked to buy pounds and euros
at lower levels, following sharp declines on Friday. The euro
(EURUSD) rose off a 12-year low to $1.0856 on Monday.
Stocks to watch: Shares of Macerich Co.(MAC) jumped, after Simon
Property Group (SPG) said it sent a proposal to buy the real-estate
investment trust in a deal valued at $22.4 billion, including $6.4
billion in debt. Shares of Simon Property Group were little
changed.
Alcoa Inc.(AA) shares slumped on Monday after the aluminum
producer said it would acquire RTI International Metals Inc. in a
deal worth $1.5 billion. RTI shares soared 40% to $38.21.
Shares of General Motors Co.(GM.XX) rose after the company set a
$5 billion stock buyback program
(http://www.marketwatch.com/story/gm-commits-to-immediate-5-billion-share-buyback-2015-03-09)
and said it would raise its quarterly dividend to 36 cents a share,
from 30 cents.
Twitter Inc. (TWTR) shares rose after an upbeat research note
from J.P. Morgan, which said accelerating product launches and
distribution deals should boost usage and ad revenue. Twitter stock
has gained more than 30% since the start of the year.
Also read: 6 things investors must know about the Apple Watch
(http://www.marketwatch.com/story/6-things-to-know-about-apple-watch-ahead-of-march-9-2015-02-27)
Read more about today's notable movers in our Movers &
Shakers column
(http://www.marketwatch.com/story/apple-urban-outfitters-mcdonalds-are-stocks-to-watch-2015-03-09).
Other markets: Monday marks the start of the European Central
Bank's quantitative easing program.
Also read: 7 things to know about the QE's game plan
(http://www.marketwatch.com/story/7-things-to-know-about-the-ecbs-qe-game-plan-2015-03-06)
The Stoxx Europe 600 index ended lower, as Greek Finance
Minister Yanis Varoufakis told Italian newspaper Corriere della
Sera that the country could hold a referendum if creditors raise
requests that aren't acceptable to the government. The situation is
expected to be discussed at a meeting of European finance ministers
on Monday.
Also see: Here's the toll Europe took on Dow industrials'
revenues
(http://www.marketwatch.com/story/why-the-bull-market-is-ready-to-celebrate-its-7th-birthday-2015-03-06)
And: The stocks to buy as ECB kicks off QE: SocGen
(http://www.marketwatch.com/story/the-stocks-to-buy-as-ecb-kicks-off-qe-socgen-2015-03-05)
Japan stocks fell the most in a month on Monday, after revised
figures showed the nation's economy grew slower than previously
estimated in the fourth quarter of last year.
U.S. oil prices
(http://www.marketwatch.com/story/oil-lower-as-a-new-week-of-trading-kicks-off-2015-03-09)(CLJ5)
rose, while gold (GCJ5) saw its first gain of the month.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires