Stocks Riseas Traders Scoop Up Discounted Shares
The U.S. stock market opened higher on Monday, boosted by a calmer geopolitical scene as well as dovish remarks from a top Federal Reserve official.
The S&P 500 (SPX) opened 6 points, or 0.3%, at 1,937.85, with all 10 sectors in positive territory. The Dow Jones Industrial Average (DJI) added 41 points, or 0.3%, to 16,593.13.
The Nasdaq Composite (RIXF) began the session with a gain of 18 points, or 0.4%, at 4,389.66.
The economic calendar is empty, and investors focused on a speech by Federal Reserve Vice Chairman Stanley Fischer.
In prepared comments for delivery at a conference in Stockholm, Fischer said rebounds across advanced economies have been disappointing, leading many observers, including the Fed, to reduce their long-term expectations for growth potential in the U.S. Also read: Fischer says Larry Summers could be right.
In geopolitical news, there was relative calm in Ukraine and the Middle East. On Saturday, rebel fighters in Ukraine said they were ready for a cease-fire. Meanwhile, Palenstians and Israelis agreed on a ceasefire in Gaza that was holding on Monday.
Stocks to watch
Shares of Mannkind (MNKD) surged 21% after the company reached a licensing deal with Sanofi (SNY) to develop and sell inhaled insulin drug Afreeza in the U.S.
Shares of Dean Foods (DF) slumped 8.3% after the milk and food company reported a wider-than-expected loss and withdrew its full-year outlook.
Kinder Morgan (KMI) jumped 17% following plans to consolidate its oil-and-gas pipeline empire into a single company in a $44 billion deal.
In other markets, oil futures (CLU4) posted minor gains, but gold futures (GCZ4) inched lower. European stocks rose following last week's losses, and Asian shares advanced, with Japan's Nikkei Average up 2.4%.