The News Herald (Willoughby, OH)
U.S. stocks rise as tech companies recover
Battered technology stocks such as Amazon.com and Microsoft all posted gains to help U.S. stocks rise.
NEW YORK >> U.S. stock indexes moved solidly higher Monday afternoon, recovering some of last week’s steep declines. Recently battered technology stocks such as Amazon.com and Microsoft all posted gains, helping end a sevenday losing streak in the Nasdaq composite.
The Dow Jones industrial average rose 117.52 points, or 0.7 percent, to 17,891.16. The Standard & Poor’s 500 index added 16.13 points, or 0.8 percent, to 2,081.43 and the Nasdaq rose 42.24 points, or 0.9 percent, to 4,817.59.
Notably, one major technology stock that did not participate in Monday’s gains was Apple, which closed down 10 cents, or 0.1 percent, to $93.64. Apple has fallen eight days in a row, and has now lost 16 percent of its value in the last two weeks.
Technology stocks have been an unexpected drag on the market in the last week. Apple reported its first quarterly decline in profits in years, which sent ripples through the stock market. Investors have been moving into safer investments. The Dow Jones utility index, a collection of 15 dividend-paying utility companies, is up more than 14 percent this year.
“There’s a risk-off sentiment in the market right now,” said David Lebovitz, a global market strategist at J.P. Morgan Funds.
Overseas, Japan’s Nikkei stock index fell more than 3 percent overnight as markets there reopened after a holiday. The market fell as Japanese investors continued to react negatively to the Bank of Japan’s decision to leave interest rates unchanged. The Japanese yen also continues to climb sharply, which hurts Japanese exporters.
“It’s a bit concerning. Investors are beginning to question whether monetary policy can really push Japan’s economy forward and generate growth,” Lebovitz said.
Among individual companies, Halliburton rose after a $34 billion merger with Baker Hughes was called off following antitrust concerns from the Justice Department. Halliburton rose 74 cents, or 1.8 percent, to $42.05. Baker Hughes fell 96 cents, or 2 percent, to $47.40.
Apollo Education Group, which runs the University of Phoenix, rose sharply after a group of investors raised their bid for the company. Apollo rose 97 cents, or 12.4 percent, to $8.77.
A private survey out Monday showed U.S. manufacturing expanded in April for the second straight month, suggesting that factories are adapting to a strong dollar and economic weakness overseas. The Institute for Supply Management said its manufacturing index came in at 50.8 last month, down from March’s 51.8 reading but above the threshold of 50 that signals growth.