By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks climbed on Monday, with
the S&P 500 extending its longest win streak since July, after
Chinese exports beat projections and as investors anticipated the
unveiling of Apple Inc's new iPhone models.
The Dow Jones Industrial Average rose nearly 166 points and
finished up 140.62 points, or 0.9%, at 15,063.12, its best
performance in more than eight weeks. Caterpillar Inc. (CAT) led
gains that included all but one of the blue-chip index's 30 members
after the Chinese government reported exports rose 7.2% in August
from the year-earlier period, topping forecasts for a 6% rise.
"China came out with significantly better economic data over the
weekend, and that's important to us because the China demand story
continues to be a very important piece of the global economic
picture," said Art Hogan, market strategist at Lazard Capital
Markets.
Helping lift equities to afternoon highs were reports related to
Syria, with Russian Foreign Minister Sergei Lavrov saying his
nation had called on Syria to relinquish its chemical-arms
stockpile if the move would help prevent a U.S.-led military
strike.
A top aide to President Barack Obama said the White House would
take a "hard look" at Russia's proposal for Syria to put its
chemical weapons under international control. The "chatter that a
negotiated settlement for Syria's chemical weapons might be a
possibility" bolstered equities, said Michael Sheldon, chief market
strategist at RDM Financial.
The S&P 500 index (SPX) climbed 16.54 points, or 1%, to
1,671.71, with materials and information technology pacing broad
gains that included all of its 10 major industry groups. The Nasdaq
Composite index (RIXF) rose 46.17 points, or 1.3%, to 3,706.18.
Apple Inc. (AAPL), a heavyweight on the S&P 500 and Nasdaq,
rose 1.6% before an investor event where the iPhone maker will
unveil upgraded versions of its smartphone.
"There's excitement about the Apple product announcement
tomorrow," said Lazard's Hogan. "And volumes are low and
participation is still timid, so any moves get exaggerated, very
much like we saw in the volatility on Friday," he said of the
end-of-week session, which had the Dow average crossing zero 11
times.
Molex Inc. (MOLX) jumped nearly 32%, leading S&P 500
gainers, after the manufacturer of electronic components for
products including Apple's iPhone agreed to be purchased for $7.2
billion by Koch Industries Inc., the holding company run by the
billionaire Koch brothers.
Delta Air Lines Inc. (DAL) gained 9.4% after S&P Dow Jones
Indices said the carrier would replace BMC Software Inc. (BMC) in
the S&P 500.
For every stock on the decline, roughly four rose on the New
York Stock Exchange, where almost 639 million shares traded.
Composite volume breached 3 billion.
The thinly traded market comes in a "historically difficult
month" for stocks, and follows a trend that had "a significant
amount of risk" coming out of equities in August, with the S&P
500 losing 3.1%, noted Hogan.
While many Wall Street professionals are back at their desks
after summer breaks, the low volume and high volatility is likely
to continue "until we get resolution in a lot of the September
issues," said Hogan.
With Congress back in session, those issues include potential
U.S. military strikes against Syria, the budget-debt ceiling and
approving a replacement for Federal Reserve Chairman Ben Bernanke,
with President Barack Obama expected to nominate someone in coming
weeks.
Treasury yields fell, with the benchmark 10-year note used in
figuring mortgage rates and other consumer loans off two basis
points at 2.918%.
The dollar fell against the currencies of major U.S. trading
partners including the euro (EURUSD) but excluding the Japanese yen
(USDJPY).
The cost of energy declined, with a barrel of crude (CLV3)
priced at $109.52 a barrel, down $1.01, or 0.9%, on the New York
Mercantile Exchange.
Gold futures(GCZ3) gained 20 cents to $1,386.70 an ounce.
Wall Street on Friday finished higher for the week as reports
indicated increased global economic growth even as investors
weighed possible U.S. military action in Syria and chances of the
Federal Reserve cutting back on its monetary stimulus later in the
month.
Texas Instruments Inc. (TXN) reports after Tuesday's close, with
the maker of semiconductors's results "a data point to watch" as a
gauge of corporate capital expenditures, said Sheldon.
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