US close: Stocks finish higher as investors digest services data
US shares finished in positive territory on Monday as disappointing services data fuelled hopes the Federal Reserve will keep interest rates unchanged for longer.
The Dow rose 1.84% to 16,776 while the Nasdaq jumped 1.56% to 4,681 and the S&P 500 increased 1.83% to 1,987.
The Institute for Supply Management revealed its US services index declined from 59.0 in August to 56.9 last month, falling below the 57.5 reading analysts had expected. A reading above 50 signals an expansion while a level below indicates a contraction.
Separately, the seasonally adjusted Markit US services PMI fell from 56.1 to 55.1 compared with the 55.6 flash estimate published last week. Analysts had been expecting no change to the initial estimate.
The worse-than-forecast data follows last Friday’s weak US non-farm payrolls, which pushed back expectations for an interest rate hike.
“With inconclusive economic data in recent weeks, the Fed is now split on the timing of an interest rate rise," said Dennis de Jong, managing director at UFX.com.
"That situation is unlikely to change in response to today’s non-manufacturing figures, which aren’t strong enough to sway Janet Yellen and Co. towards a clear decision."
Gains in the US followed a rally in Asian equity markets, boosted by expectations the Chinese government will implement further stimulus measures. European stocks also were firmly in the black.
In company news, American Apparel tumbled after the company filed for bankruptcy earlier on Monday.
Twitter edged higher after the social media company named co-founder and interim chief executive officer Jack Dorsey as permanent CEO.
Apple climbed as the company beat Google to become the world’s biggest brand, according to Interband’s 2015 Best Global Brands list.The US technology giant was valued at $170bn, a 43% change in value from 2014.
General Electric rose after activist shareholder Nelson Peltz’s Trian Fund Management LP said it has accumulated a 1% stake in the group, for a total value of approximately $2.5bn.
Meanwhile, Oil prices rose, with Brent and West Texas Intermediate up 2.4% to $49.36 per barrel and 1.7% up $46.33 per barrel, respectively.
The US dollar strengthened against the euro, the yen and the pound sterling.
S&P 500 - Risers
Denbury Resources Inc. (DNR) $3.20 +13.07%
Micron Technology Inc. (MU) $17.57 +10.43%
Avon Products Inc. (AVP) $3.84 +9.40%
Alcoa Inc. (AA) $10.41 +9.35%
CONSOL Energy Inc. (CNX) $10.75 +9.14%
Peabody Energy Corp. (BTU) $19.72 +8.71%
Mattel Inc. (MAT) $21.62 +8.48%
Marathon Oil Corp. (MRO) $18.05 +8.34%
United States Steel Corp. (X) $11.43 +8.34%
Transocean Ltd. (RIG) $14.69 +8.33%
S&P 500 - Fallers
Edwards Lifesciences Corp. (EW) $149.37 -3.35%
Allergan plc (AGN) $278.58 -3.27%
H&R Block Inc. (HRB) $35.94 -1.72%
Avago Technologies Ltd. (AVGO) $121.22 -1.71%
Alexion Pharmaceuticals Inc. (ALXN) $163.44 -1.58%
Biogen Inc (BIIB) $286.55 -1.31%
Regeneron Pharmaceuticals Inc. (REGN) $473.14 -1.24%
Eli Lilly and Company (LLY) $86.57 -1.09%
Nordstrom Inc. (JWN) $74.34 -1.04%
C.R. Bard Inc. (BCR) $191.46 -0.84%
Dow Jones I.A - Risers
General Electric Co. (GE) $26.82 +5.30%
Caterpillar Inc. (CAT) $69.18 +5.30%
Cisco Systems Inc. (CSCO) $26.85 +4.23%
E.I. du Pont de Nemours and Co. (DD) $51.28 +4.10%
American Express Co. (AXP) $77.30 +3.88%
International Business Machines Corp. (IBM) $149.04 +3.08%
Chevron Corp. (CVX) $84.03 +3.04%
United Technologies Corp. (UTX) $92.26 +2.77%
Verizon Communications Inc. (VZ) $44.00 +2.71%
Intel Corp. (INTC) $31.22 +2.33%
Dow Jones I.A - Fallers
Nike Inc. (NKE) $124.27 -0.75%
Nasdaq 100 - Risers
Micron Technology Inc. (MU) $17.57 +10.43%
Mattel Inc. (MAT) $21.62 +8.48%
Netflix Inc. (NFLX) $111.25 +4.84%
Cisco Systems Inc. (CSCO) $26.85 +4.23%
PACCAR Inc. (PCAR) $54.25 +4.21%
Linear Technology Corp. (LLTC) $41.80 +4.11%
Symantec Corp. (SYMC) $20.43 +3.97%
Sba Communications Corp. (SBAC) $109.51 +3.91%
Seagate Technology Plc (STX) $44.84 +3.84%
Bed Bath & Beyond Inc. (BBBY) $59.40 +3.50%
Nasdaq 100 - Fallers
Avago Technologies Ltd. (AVGO) $121.22 -1.71%
Alexion Pharmaceuticals Inc. (ALXN) $163.44 -1.58%
Biogen Inc (BIIB) $286.55 -1.31%
Regeneron Pharmaceuticals Inc. (REGN) $473.14 -1.24%
Nxp Semiconductors Nv (NXPI) $85.30 -0.68%
Tesla Motors Inc (TSLA) $246.15 -0.57%
Vertex Pharmaceuticals Inc. (VRTX) $114.52 -0.57%
Broadcom Corp. (BRCM) $51.05 -0.29%
Whole Foods Market Inc. (WFM) $33.84 -0.24%
Sandisk Corp. (SNDK) $59.47 -0.18%