By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market finished
Monday's roller-coaster session generally higher. The main indexes
swung wildly between gains and losses with the Dow Jones Industrial
Average trading in a 187-point range.
Investors welcomed deal news among telecoms and pharmaceutical
companies, as well as stronger-than-expected housing data in early
morning trade. Heavy selling of Internet stocks dragged markets
down in late morning, only to recover by late afternoon amid
heavier-than-usual volumes.
The S&P 500 (SPX) ended the day 6.03 points, or 0.3%, higher
at 1,869.43. The Dow Jones Industrial Average (DJI) closed 87.28
points, or 0.5%, higher at 16,448.74, with Pfizer Inc. and
Microsoft Corp leading the gains.
The Nasdaq Composite (RIXF) closed virtually flat, down a point
at 4,074.40.
The Global X Social Media Index ETF (SOCL) sold off, closing
2.9% lower. Netflix Inc. (NFLX), Amazon.com, Inc. (AMZN) and
Facebook Inc. (FB) shares were among the top 10 decliners on the
Nasdaq 100 (NDX) index, all down more than 2%. However, Apple Inc.
(AAPL) , the heaviest-weighted component on the index, gained
3.9%.
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"Money continues to leave the former high-flying momentum stocks
and make its way to the safer and higher-dividend-paying names --
that is a classical defensive market," said Ryan Detrick, senior
technical strategist at Schaeffer's Investment Research.
"Volume did pick up from what we've been seeing recently and
most of that was due to the violent intraday swings we saw. Bull
markets usually aren't very volatile. In fact, 2013 was one of the
least volatile years ever. Now with volatility picking up, this is
a potential warning," he added.
A stronger-than-expected number on pending-home sales had helped
lift stocks at the open. A gauge of pending-home sales rose 3.4% in
March -- the first gain in nine months -- signaling that sales of
existing homes may pick up, the National Association of Realtors
reported Monday.
This week, investors will focus on earnings and economic reports
as well as the Federal Open Market Committee meeting. The Fed is
expected to announce further trimming of the bond-buying program by
$10 billion. GDP data, set for release Wednesday, will likely show
the economy expanded 1% in the first quarter. Nonfarm-payrolls data
are scheduled for release Friday and are forecast to show that more
than 200,000 jobs were added to the U.S. economy in April.
Affecting sentiment earlier was the announcement of a new wave
of sanctions against Russia.
In corporate news, shares in Charter Communications Inc. (CCMMV)
rallied 7.7% on news that Comcast Corp. (CMCSA) plans to sell
nearly 4 million extra subscribers in a two-staged deal with
Charter Communications -- representing a consolation prize for
Charter's eight-month pursuit of Time Warner Cable Inc. (TWC).
Investors shrugged off Charter's first-quarter earnings, announcing
a net loss of 35 cents a share on revenue of $2.2 billion, while
analysts expected a profit of 10 cents on revenue of $2.18
billion.
Shares in Comcast and Time Warner gained 1.4% and 1.1%
respectively.
U.S.-listed shares of AstraZeneca PLC (AZN) leapt 12% after
Pfizer Inc. (PFE) confirmed it has approached the drug maker for a
second time about a takeover valued at nearly $100 billion. Pfizer
said in a statement that the merger would result in a more
efficient tax structure as AstraZeneca's non-U.S. profits wouldn't
be subject to U.S. tax. Pfizer shares gained 4.2%%, leading the Dow
industrials.
Franklin Resources Inc. (BEN) reported second-quarter earnings
of 89 cents a share, in line with expectations. Shares fell
2.5%.
Furiex Pharmaceuticals Inc. (FURX) surged 29% after Forest
Laboratories Inc. (FRX) said it would buy the company for $1.1
billion in cash.
In other financial markets, Asian bourses closed mostly lower,
while European stocks posted gains. Metals were mixed (GCM4), as
gold closed lower and oil futures (CLM4) advanced. The dollar
weakened against most other major currencies.
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