By Victor Reklaitis and Barbara Kollmeyer, MarketWatch
Jobs report may be leading to a 'Goldilocks' period for
investors
NEW YORK (MarketWatch) -- U.S. stocks erased early losses and
climbed higher Monday, as the Dow industrials gained more than 150
points.
The stock market's switch to rally mode was pinned on bets that
the Federal Reserve will move more slowly in raising interests
rates given Friday's disappointing jobs report.
The S&P 500 (SPX) was last up about 18 points, or 0.9%, to
2,085, while the Dow Jones Industrial Average (DJI) gained 156
points, or 0.9%, to 17,919 after dropping more than 100 points out
of the gate. The Nasdaq Composite (RIXF) added 34 points, or 0.7%,
to 4,921.
The "dismal" jobs report, which came out while the market was
closed for Good Friday, and a Monday speech by New York Fed
President William Dudley were helping stocks advance, said Peter
Cardillo, chief market economist at Rockwell Global Capital. Dudley
reiterated the central bank's mantra that it will be data dependent
in deciding when to raise rates, Cardillo told MarketWatch.
"That renews the theme of lower interest rates for six to nine
months," Cardillo said.
Read more: Fed's Dudley signals go-slow approach to rate hike
(http://www.marketwatch.com/story/feds-dudley-signals-go-slow-approach-to-rate-hike-2015-04-06)
The disappointing jobs report could result in a "Goldilocks"
period for investors, said Michael Jones, chairman and chief
investment officer at RiverFront Investment Group, in a note
Monday. "We believe that financial markets, perhaps after some
volatility, will eventually celebrate the combination of economic
growth hot enough to avoid recession, but not hot enough to force
the Fed to tighten policy in the near future," Jones said. Market
watchers also talked about Goldilocks-type economic data last year
(http://www.marketwatch.com/story/this-may-well-be-the-goldilocks-jobs-report-for-the-market-2014-10-03)
and in 2013
(http://blogs.marketwatch.com/capitolreport/2013/12/09/experts-see-goldilocks-economy-in-2014/).
Also see: After jobs report, investors pencil in December rate
hike
(http://www.marketwatch.com/story/after-jobs-data-investors-pencil-in-december-rate-hike-2015-04-06)
In other U.S. economic news on Monday, the latest reading for
the Institute for Supply Management's nonmanufacturing index was
slightly better than expected
(http://www.marketwatch.com/story/ism-services-index-dips-in-march-but-shows-steady-us-growth-2015-04-06),
showing a dip from the prior month but still indicating steady U.S.
growth.
Later this week, Alcoa Inc. (AA) will provide the unofficial
start of first-quarter earnings season with its report Wednesday
after the close.
Individual movers:Transocean Ltd.(RIG) was the S&P 500's
biggest gainer as a jump in crude-oil prices (CLK5) lifted
oil-field-services stocks.
Hudson City Bancorp.(HCBK) was the S&P's biggest decliner
after the company announced a delay again for its planned merger
with M&T Bank Corp.(MTB)
Read more about Monday's jumpiest stocks in the Movers &
Shakers column
(http://www.marketwatch.com/story/herbalife-sinks-on-reports-of-probe-uniqure-soars-on-bristol-myers-deal-2015-04-06)
Other markets:May crude oil
(http://www.marketwatch.com/story/oil-rebounds-as-iran-exports-seen-taking-months-to-ramp-up-2015-04-06)(CLK5)
settled 6.1% higher, helped by signs of higher Asian demand and
analysts saying it could take months before last week's Iranian
nuclear deal spurs more crude supply from that country. Gold
futures
(http://www.marketwatch.com/story/gold-draws-buyers-as-stocks-drop-2015-04-06)(GCK5)
also finished higher, getting a lift from the soft jobs report.
The dollar (DXY) was up slightly
(http://www.marketwatch.com/story/dollar-steady-against-yen-after-sliding-on-jobs-data-2015-04-06)
after slipping Friday in the wake of the weak employment data. In
Asia, several markets, including those in China and Hong Kong, were
closed for a holiday, while Japan's Nikkei 225 finished down
0.2%.
European markets are closed until Tuesday. Rockwell Global's
Cardillo cautioned that Monday's action in the U.S. stock market
could be skewed by light trading as overseas investors remain on
vacation.
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