By Saumya Vaishampayan And Dan Strumpf
U.S. stocks edged higher on Monday, sending the Dow Jones
Industrial Average into record territory.
The Dow industrials gained as much as 17 points to 18289.54
shortly after the opening bell, surpassing its record close of
18288.63 reached in early March. The blue chips later pared gains
to trade up five points to 18278.
The S&P 500 gained less than a point to 2123, on track for a
fresh record close following a gain Friday that sent the index to
its eighth record of the year.
The Nasdaq Composite Index gained four points, or 0.1%, to
5053.
While the S&P 500 has notched all-time highs in recent
sessions, hitting two in a row last week, the size of the moves
have been muted. Last week, the Dow rose just 0.4% and the S&P
added 0.3%.
Part of the blame for the more modest moves in stocks goes to
weak economic data, strategists say, as tepid reports dim the
outlook for earnings growth and future stock-market gains. Recent
data showed a sharp drop in consumer sentiment and a further
decline in industrial production.
The weak reports "make this year's earnings growth rate very
difficult to assess," said Gail Dudack, chief investment strategist
at Dudack Research Group, a division of brokerage Wellington
Shields & Co.
"Since multiples are slightly above average, it's been our view
that we will need earnings growth for stocks to move higher," she
added.
European stocks were mixed. France's CAC 40 shed 0.3% while
Germany's DAX gained 0.7%.
Including results from 465 companies in the S&P 500,
first-quarter earnings are on track to grow nearly 0.5% from a year
ago, according to FactSet. That's an improvement over the nearly 5%
decline projected by analysts at the start of earnings season.
Housing data will be in focus Monday. The May reading of the
NAHB/Wells Fargo Housing Market Index is expected to rise to 58
from a reading of 56 previously, according to economists surveyed
by The Wall Street Journal.
In commodity markets, gold futures added 0.2% to $1227.80 an
ounce. Crude-oil futures gained 0.2% to $59.80 a barrel.
Treasury prices slipped, lifting the 10-year yield up to 2.198%
from 2.141% on Friday.
In corporate news, Endo International PLC has agreed to buy Par
Pharmaceutical Holdings Inc. from private-equity firm TPG for about
$8 billion in cash and stock. Endo shares fell 3.1%.
Shares of Ann Inc. soared 22% after the retailer agreed to sell
itself to Ascena Retail Group Inc. for $2.2 billion in cash and
stock. Ascena shares gained 7.2%.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com and
Dan Strumpf at daniel.strumpf@wsj.com
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