Wall Street Cheers Deals
04/16/07 - 04:41 PM EDT
Robert Holmes
Updated from 4:07 p.m. EDT
Stocks jumped Monday as a stream of buyouts and solid earnings greeted the bulls to begin a new trading week. The Dow Jones Industrial Average surged 108.33 points, or 0.86%, to 12,720.46, with 26 of the 30 components ending the day with gains. The S&P 500 advanced 15.62 points, or 1.08%, to 1468.47, reaching a 6 1/2-year high. The Nasdaq climbed 26.39 points, or 1.06%, to 2518.33. The rise allowed the market to build on last week's gains, when the Dow was up 0.4%, the S&P added 0.6% and the Nasdaq increased 0.8%. The major indices have now rebounded from losses suffered on Feb. 27, when a benchmark index in mainland China sank more than 9% and pressured U.S. markets. The Dow had its worst single-day pullback since the market reopened after the terrorist attacks of Sept. 11, 2001, dropping by as much as 546 points at one point. "For now investors are enjoying the ride," Barry Hyman, equity market strategist with EKN Financial. "There's a lot of liquidity in the system. It says a lot towards the strength of the global economy. Now we have to look for the next catalyst. If this rally is going to continue, we need to see a pickup in some lagging sectors, such as consumer cyclicals." About 2.69 billion shares changed hands on the New York Stock Exchange, with advancers beating decliners by an 8-to-3 margin. Volume on the Nasdaq reached 1.78 billion shares, with winners outpacing decliners 7 to 3. Paul Nolte, director of investments with Hinsdale Associates, noted that volume has been lighter than usual, so the market may not be gaining as much traction as it seems. "What is happening is the market rises, but on little volume, but declines occur on heavier volume -- to us an indication that investors are more willing sellers than buyers," he said.
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