Stocks held mild gains Monday, as a flurry of merger activity helped offset disappointing existing-home sales.
The Nasdaq closed up 0.3%; the S&P 500 and Dow Jones industrial average each climbed 0.1%. Volume was lower across the board vs. Friday’s options-expiration fueled levels, according to preliminary figures. Winners and losers were nearly even on the NYSE, while advancers topped decliners by about a 6-5 margin on the Nasdaq.
Stocks initially dipped after the National Association of Realtors said existing-home sales fell 7.1% in February to a seasonally adjusted 5.08 million annual rate, the second-weakest level in a year.
Automakers, biotechs and other drug stocks led the upside in the stock market today. Energy, dairy products and retailers underperformed. West Texas intermediate crude prices gained more than 1% to $41.64 a barrel.
Nike (NKE) led the Dow with a near 3% gain in faster-than-usual trade, ahead of its Q3 earnings report, due Tuesday after the close. Analysts expect the athletic shoe and apparel maker to grow earnings 9% to 49 cents a share on 10% higher sales to $8.2 billion. JPMorgan boosted its price target to 72 from 67.50.
Apple (AAPL), up as much as 1% ahead of its 1 p.m. ET product launch event, closed down a penny. The i-gadget maker unveiled a new 4-inch iPhone, a new iPad Pro tablet and cut the price on its entry-level Apple Watch by $50 to $299. Shares are 6% below the 200-day moving average and 21% off their 52-week high.
PayPal (PYPL) leapt 4% to a new closing high in above-average volume. The IBD 50 stock is still in buy range from a 40.03 IPO base buy point it cleared with the move. It’s now extended 6% past a prior early entry of 38.62.
Valspar (VAL) gapped up and soared 23% to a new high in fast turnover after Sherwin-Williams (SHW) said it’s buying the paint maker for $9.3 billion. Sherwin-Williams shares dove 5% in heavy trade.
Starwood Hotels (HOT) gapped up and rose 4.5% after the hotelier accepted Marriott International's (MAR) sweetened buyout offer of $13.6 billion. That trumped a $13.16 billion bid last week from China’s Anbang Insurance Group, which was higher than Marriott’s previous offer. Marriott shares fell 1%.
IHS (IHS) surged 10%, retaking its 200-day line in busy trade. The Englewood, Colo.-based research outfit announced plans to buy Markit (MRKT), a London-based financial information services provider, in a deal valued at $5.9 billion. Markit vaulted 14%.
Economic reports due out Tuesday include the Federal Housing Finance Agency's house price index for January and the Purchasing Managers' Manufacturing Index for March.
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