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 to
finish with solid gains Monday, as the Dow industrials rose nearly
120 points.
The stock market's switch to rally mode was attributed to bets
that the Federal Reserve will move more slowly in raising interest
rates given Friday's disappointing jobs report.
The S&P 500 (SPX) rose 13.66 points, or 0.7%, to end at
2,080.62, with energy stocks (XLE) performing best as crude-oil
prices jumped. The benchmark is up 1.1% for the year and stands
1.7% off its March 2 record close.
The Dow Jones Industrial Average (DJI) gained 117.61 points, or
0.7%, to close at 17,880.85 after dropping more than 100 points out
of the gate. The Nasdaq Composite (RIXF) added 30.38 points, or
0.6%, to finish at 4,917.32.
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 helped 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/).
Check out: 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, closing 10.1% higher as a jump in crude-oil prices
(CLK5) lifted energy-related stocks.
Hudson City Bancorp.(HCBK) was the S&P's biggest decliner,
finishing down 6.9% 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)
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)(GCM5)
also finished higher, getting a lift from the soft jobs report.
The dollar (DXY) advanced
(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 were also closed for a long holiday weekend.
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