US close: Stocks march higher in record risk-on March start
US stocks rose to their highest finish since the first week of January as better-than-expected data joined hands with steadying oil prices.
Even with oil weak initially, all three indices started strongly and by the close the S&P 500 spiked 2.37% by the close, its best ever start to March, while the Dow Jones Industrial Average climbed 2.11% for its best start since 2002, according to Dow Jones data.
The Nasdaq composite surged 2.9%, its best one-day performance since last summer and its best start to March since 2013.
Earlier, the Institute of Supply Management’s purchasing managers’ index on manufacturing rose to 49.5 in February from 48.2 in January, beating analysts’ estimates of 48.5.
Another manufacturing PMI, produced by Markit, was revised higher than expected in February to a reading of 51.3 from a previous estimate of 51.0. Although the reading marked a slowdown from 52.4 in January, the index was a touch higher than analysts’ forecasts of 51.2.
US construction spending data also surpassed forecasts. Spending increased by 1.5% on the month to a seasonally-adjusted rate of $1.14bn in January, compared to economists’ expectations for a 0.4% rise, the Commerce Department revealed.
Wall Street also took confidence from upbeat Asian and European sessions, while oil prices maintained their rally.
Front-month prices for West Texas Intermediate crude recovered from an early dip to rise 0.7% to $33.99, while Brent crude was could not hold onto its gains above $36.5 per barrel.
The dollar rose against the euro, the pound and the yet but retreated against selected commodity crosses.
Comments from Federal Reserve Bank of New York president William Dudley, speaking in Hangzhou, China, were seen as having some effect. Dudley said he was increasingly worried that the rate of inflation might fail to rise back to the US central bank’s 2.0% medium-term target.
“On balance, I am somewhat less confident than I was before. Partly, this reflects my assessment that uncertainty to the outlook has increased and that downside risks have crept up,” the central banker added.
The Asian session was choppy but finished in the black despite the official manufacturing PMI dropped to 49.0 in February from 49.4 in January, surprising analysts who had expected no change. Caixin’s unofficial PMI on manufacturing was released the same day, also showing a worse-than-expected drop. The PMI fell to 48.0 in February from 48.4 in January. Economists had pencilled in an unchanged reading.
However, analysts continued to cheer Monday’s decision by China’s central bank to cut the required reserve ratio (RRR) for banks by 50 basis points.
On the company front, Hertz Global was firmer after the car rental company said it swung to a profit in the fourth quarter.
Valeant Pharmaceuticals shares rose, bouncing back from huge losses in the previous session after it confirmed it was under investigation by the Securities and Exchange Commission and withdrew its financial guidance for 2016.
SunEdison tumbled after the renewable energy developer delayed the release of 2015 results, in part due to an internal inquiry over the accuracy of its financial status.
Marathon Oil was also in the red after saying it plans to sell as much as $1.23bn of stock to strengthen its balance sheet.
Intercontinental Exchange, which owns the New York Stock Exchange, will likely be in focus after confirming it is considering making a bid for London Stock Exchange to rival Deutsche Boerse’s.
Marvell Technology Group jumped after the semiconductor company said it “no fraudulent activity” following an investigation into accounting and internal control matters.
S&P 500 - Risers
Genworth Financial Inc. (GNW) $2.32 +9.43%
Range Resources Corp. (RRC) $25.74 +8.47%
Alexion Pharmaceuticals Inc. (ALXN) $150.83 +7.12%
Regeneron Pharmaceuticals Inc. (REGN) $410.21 +6.82%
Lincoln National Corp. (LNC) $38.89 +6.46%
Prudential Fincl Inc. (PRU) $70.31 +6.39%
Pioneer Natural Resources Co. (PXD) $128.10 +6.28%
Citrix Systems Inc. (CTXS) $75.08 +6.27%
Citigroup Inc. (C) $41.27 +6.23%
Regions Financial Corp. (RF) $7.98 +6.12%
S&P 500 - Fallers
Pepco Holdings Inc. (POM) $22.81 -12.87%
Equity Residential (EQR) $68.62 -7.88%
Medtronic Plc (MDT) $74.18 -4.15%
First Solar Inc. (FSLR) $69.02 -3.97%
Motorola Solutions Inc (MSI) $71.19 -3.13%
Marathon Oil Corp. (MRO) $7.96 -3.05%
Owens-Illinois Inc. (OI) $14.54 -2.81%
Southwestern Energy Co. (SWN) $5.62 -2.77%
Linear Technology Corp. (LLTC) $42.44 -2.71%
Intercontinental Exchange Inc (ICE) $232.08 -2.68%
Dow Jones I.A - Risers
JP Morgan Chase & Co. (JPM) $59.20 +5.15%
Apple Inc. (AAPL) $100.53 +3.97%
Goldman Sachs Group Inc. (GS) $154.65 +3.42%
E.I. du Pont de Nemours and Co. (DD) $62.94 +3.40%
Microsoft Corp. (MSFT) $52.58 +3.34%
Chevron Corp. (CVX) $86.13 +3.22%
Visa Inc. (V) $74.64 +3.11%
Merck & Co. Inc. (MRK) $51.75 +3.07%
Intel Corp. (INTC) $30.37 +2.64%
International Business Machines Corp. (IBM) $134.37 +2.55%
Dow Jones I.A - Fallers
United Technologies Corp. (UTX) $95.05 -1.62%
Nasdaq 100 - Risers
Alexion Pharmaceuticals Inc. (ALXN) $150.83 +7.12%
Biomarin Pharmaceutical Inc. (BMRN) $87.57 +6.96%
Regeneron Pharmaceuticals Inc. (REGN) $410.21 +6.82%
Citrix Systems Inc. (CTXS) $75.08 +6.27%
Vimpelcom Ltd Ads (VIP) $3.76 +6.21%
Illumina Inc. (ILMN) $159.51 +6.17%
Seagate Technology Plc (STX) $33.23 +5.96%
Skyworks Solutions Inc. (SWKS) $70.40 +5.94%
Western Digital Corp. (WDC) $46.10 +5.90%
Discovery Communications Inc. Class A (DISCA) $26.43 +5.72%
Nasdaq 100 - Fallers
Tesla Motors Inc (TSLA) $186.35 -2.91%
Linear Technology Corp. (LLTC) $42.44 -2.71%
Mattel Inc. (MAT) $32.27 -0.77%