By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks mostly rose on Monday,
lifting the S&P 500 index to within reach of its record after
Larry Summers took his name out of the running to head the Federal
Reserve.
"Summers had been a critic of quantitative easing, and global
markets are thrilled he will not be in charge of taking away their
'fix' too quickly," wrote Nick Raich, chief executive officer at
the Earnings Scout, in emailed commentary.
Equities were also bolstered by a weekend agreement between the
U.S. and Russia on a plan to get rid of Syria's chemical
weapons.
"After the initial shock of the Summers announcement begins to
wear off, we expect the stock market to consolidate recent gains,
as it digests Fed news and waits to see how developments in Syria
progress," noted Fred Dickson, chief investment strategist at
Davidson Companies.
The S&P 500 index (SPX) on Monday came within five points of
its record of 1,709.67 hit on Aug. 2. It finished at 1,697.60, up
9.61 points, or 0.6%. Industrials paced gains among its 10 major
sectors, only one of which -- technology -- landed in negative
turf.
While the S&P 500 on Monday flirted with its first close
above 1,700 in six weeks, a Citi Research analyst said he sees the
index climbing to 1,900 by the end of 2014.
Shares of Packaging Corp. of America (PKG) leapt nearly 11%
after the maker of corrugated shipping boxes said it would acquire
Boise Inc.(BZ) for about $1.27 billion. Boise rallied 26%.
Apple Inc. (AAPL) fell 3.2%, making the consumer technology
company the top decliner on the S&P 500, and adding to losses
that have had its shares knocked four out of five sessions since
the introduction of a lower-cost iPhone.
Allegheny Technologies Inc.'s (ATI) shares rose 8.1% after the
metal processor agreed to sell its tungsten materials unit to
Kennametal Inc. (KMT) for $605 million.
After a 174-point rise, the Dow Jones Industrial Average (DJI)
gained 118.72 points, or 0.8%, to end at 15,494.78.
After hitting a 13-year high of 3,756.24, the Nasdaq Composite
(RIXF) fell 4.34 points, or 0.1%, to end at 3,717.85, hit by the
losses for Apple.
For every stock falling, more than two rose on the New York
Stock Exchange, where 655 million shares traded. Composite volume
neared 3.1 billion.
The dollar (DXY) declined against the currencies of major U.S.
trading partners and the yield on the 10-year Treasury note
(10_YEAR) dropped 1 basis point to 2.879%.
On the New York Mercantile Exchange, oil futures (CLV3) fell
$1.62, or 1.5%, to $106.59 a barrel, a three-week low.
The price of gold (GCZ3) rose $9.20, or 0.7%, to $1,317.80 an
ounce, settling higher for the first session in five.
The exit by Summers, a former Treasury secretary and economic
adviser to President Barack Obama, came as some Democrats on the
Senate Banking Committee voiced opposition to his potential
nomination, which had not been announced.
His exit comes just ahead of a two-day Fed meeting that begins
Tuesday, with the central bank expected to start cutting its $85
billion in monthly bond purchases, which are otherwise known as
quantitative easing. That stimulus has helped the S&P 500 surge
more than 150% from its March 2009 low.
A critic of quantitative easing, Summers was viewed as more
likely to tighten monetary policy than Janet Yellen, the current
Fed vice chair now considered the most likely person to replace Ben
Bernanke as Fed chief.
Monday's economic reports included manufacturing in the New York
region expanding less than expected this month, despite a pickup in
orders and shipments.
The Federal Reserve said industrial production climbed in
August.
On Friday, Wall Street knocked out a second week of gains as
worries about Syria ebbed and as investors looked to this week's
monetary-policy decision by the Fed.
On Monday, a United Nations report found "convincing evidence"
that poison sarin gas was used in an Aug. 21 attack that killed
more than 1,400 people near the Syrian capital of Damascus.
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