By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

Factory orders climb 2.1% in March, see first rise in eight months

U.S. stocks finished modestly higher Monday, building on the previous session's solid gains. The main indexes climbed amid low volatility and lower-than-usual volumes.

Market reaction to a report on factory orders, which rose 2.1% in March, generally in line with expectations, was mostly muted.

The S&P 500 (SPX) closed 6.20 points, or 0.3%, higher at 2,114.49. The benchmark index settled just a few points below the record level set on Friday. Financials led the index higher, with seven of its 10 main sectors finishing with gains.

The Dow Jones Industrial Average (DJI) gained 46.34 points, or 0.3%, to 18,070.40, while the Nasdaq Composite (RIXF) added 11.54 points, or 0.2%, higher at 5,016.93.

Implied volatility has dropped to its lowest levels this year, with the CBOE Volatility index (VIX) falling below 13. Meanwhile, trading volumes on Wall Street on Monday were below the 30-day average level.

Sohn Conference live blog: Einhorn takes aim at frackers (http://blogs.marketwatch.com/thetell/2015/05/04/sohn-conference-live-blog-top-investors-make-their-picks/)

Maris Ogg, president at Tower Bridge Advisors, noted the markets had been resilient as corporate earnings have been mediocre and economic reports weaker than expected at times.

"Perhaps, markets are looking past the 2015 earnings and discounting 2016 earnings, climbing higher. However, when stocks are fairly priced and investors are nervous, as they are right now, any bad news can result in a massive selloff," Ogg said.

Ogg noted that in a slow-growth environment, corporations are able to adjust to imbalances without causing recessions. "When the economy is growing at 2% pace, there is no impetus to hire or invest in capital expenditures. Though, with wages ticking up and labor market tightening, we expect companies will pick up in capital spending," he noted.

Data: Orders for goods produced in U.S. factories rose 2.1% in March. Economists surveyed by MarketWatch had expected orders to climb 2.4% after a revised 0.1% decline in the prior month.

Wall Street is looking ahead to the nonfarm-payrolls report due Friday. Forecasters predict job creation in April will rebound after a disappointing 126,000 increase in March, the weakest reading in 15 months.

Read: Roses or thorns? Wall Street awaits pivotal jobs report for April (http://www.marketwatch.com/story/roses-or-thorns-wall-street-awaits-pivotal-jobs-report-for-april-2015-05-03)

Stocks to watch: Cognizant Technology Solutions Corp. (CTSH) shares jumped 6.2% after the company reported a 9.7% increase in profits and 20% rise in revenues, well above expectations. The stock was the best performer on the S&P 500 Monday.

Keurig Green Mountain Inc.(GMCR) shares dropped 4% ahead of its earnings on Tuesday.

Corinthian Colleges Inc.(COCO) plunged 12% as the for-profit school operator filed for chapter 11 bankruptcy.

McDonald's Corp. (MCD) shares fell 1.7% after chief executive Steve Easterbrook unveiled turnaround plan that disappointed investors.

For more on today's notable movers, read Movers & Shakers (http://www.marketwatch.com/story/comcast-cablevision-tyson-foods-earnings-in-focus-2015-05-01).

Other markets: The German DAX 30 index closed up 1.4%, leading gains for European stocks (http://www.marketwatch.com/story/european-stocks-edge-lower-with-uk-market-closed-2015-05-04) after the release of robust manufacturing data for the eurozone. London markets are closed for a bank holiday.

China's Shanghai Composite Index , meanwhile, closed higher on Monday (http://www.marketwatch.com/story/china-shares-drift-lower-2015-05-03), recovering from earlier losses after data showed the country's manufacturing activity slowed more sharply than forecast. Tokyo markets were closed for a holiday.

The dollar regained some strength on Monday, with the euro (EURUSD) pulling back to $1.114, a 0.5% drop. Oil prices (http://www.marketwatch.com/story/oil-prices-flatten-after-weak-china-factory-data-2015-05-04)(CLM5) settled lower, falling 0.4% at $58.93. Gold futures (http://www.marketwatch.com/story/gold-bounces-off-6-week-low-as-traders-eye-data-2015-05-04)(GCM5) settled with a gain of 1.1%, at $1,186.80.

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