U.S. stock indexes Monday shed early weakness to extend last week’s gains, getting some support from Apple Inc.’s dividend plans and housing data. Financial stocks led.
The Dow Jones Industrial Average /quotes/zigman/627449 DJIA +0.25% turned higher near midday, rising 18.13 points, or 0.1%, to 13,250.68. Bank of America Corp. /quotes/zigman/190927/quotes/nls/bac BAC +1.83% led the Dow’s percentage gainers, rising about 2%. Out of 30 components, 20 were higher.
The blue-chip index shaved about half its losses after the National Association of Home Builders and Wells Fargo said their builders’ sentiment index stayed at its highest level in close to five years. Read more on builder sentiment.
It’s the first of a series of housing reports expected this week.
The S&P 500 /quotes/zigman/3870025 SPX +0.63% , which turned higher ahead of the 10 a.m. Eastern housing data, rose 6.39 points, or 0.5%, to 1,410.52. Financial stocks gained the most, rising more than 1%. Consumer staples lagged behind. Of 10 industry groups, nine were higher.
“The market is pricing in a couple of factors: Growth in the U.S. is likely to be reasonable, and corporate profits still look good,” said Stephen Wood, chief market strategist at Russell Investments in New York.
Plus, “characteristics of Europe are becoming known, the characteristics of China’s [economic] landing are becoming known, and that gives the market the ability to focus on fundamentals on the U.S.”
The Nasdaq Composite /quotes/zigman/123127 COMP +0.90% rose 21.53 points, or 0.7%, to 3,076.64. Its biggest component, Apple Inc. /quotes/zigman/68270/quotes/nls/aapl AAPL +2.24% , announced it would start paying a quarterly dividend in its fourth quarter, which runs July through September. Apple shares climbed 2.1% to $597.75. Read more on Apple.
Last week, all three major indexes gained more than 2%, reaching pre- financial-crisis levels.
The Dow Jones Industrial Average /quotes/zigman/627449 DJIA +0.25% turned higher near midday, rising 18.13 points, or 0.1%, to 13,250.68. Bank of America Corp. /quotes/zigman/190927/quotes/nls/bac BAC +1.83% led the Dow’s percentage gainers, rising about 2%. Out of 30 components, 20 were higher.
The blue-chip index shaved about half its losses after the National Association of Home Builders and Wells Fargo said their builders’ sentiment index stayed at its highest level in close to five years. Read more on builder sentiment.
It’s the first of a series of housing reports expected this week.
Apple sets dividend, buyback
Apple CEO Tim Cook says the company will pay a dividend to shareholders and buy back up to $10 billion in stock, heeding calls for the technology heavyweight to deploy its massive cash pile. (Photo: Kevork Djansezian/Getty Images)“The market is pricing in a couple of factors: Growth in the U.S. is likely to be reasonable, and corporate profits still look good,” said Stephen Wood, chief market strategist at Russell Investments in New York.
Plus, “characteristics of Europe are becoming known, the characteristics of China’s [economic] landing are becoming known, and that gives the market the ability to focus on fundamentals on the U.S.”
The Nasdaq Composite /quotes/zigman/123127 COMP +0.90% rose 21.53 points, or 0.7%, to 3,076.64. Its biggest component, Apple Inc. /quotes/zigman/68270/quotes/nls/aapl AAPL +2.24% , announced it would start paying a quarterly dividend in its fourth quarter, which runs July through September. Apple shares climbed 2.1% to $597.75. Read more on Apple.
Last week, all three major indexes gained more than 2%, reaching pre- financial-crisis levels.
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