(MENAFN- ProactiveInvestors) U.S. stocks finished sharply higher Monday after a late-day surge in what was otherwise a choppy trading session with the Dow and the S&P 500 coming off their biggest monthly losses since January last year.
At the closing bell in New York the Dow Jones Industrial Average settled up 196 points at 17361 while the Nasdaq rose 42 points to 4677 and the S&P 500 climbed 26 points to end at 2021.
The new week began with a number of economic reports including personal income and consumer spending. Personal income rose 0.3% in December better than the 0.2% increase expected while consumer spending dropped 0.3% as expected registering its biggest drop since 2009.
Later in the morning the Institute for Supply Management's January index was reported dropping to 53.5 from December's slightly revised reading of 55.1. Economists were expecting a drop to 54.5 according to Bloomberg. US stocks fell following the report after initially opening higher.
At the same time the government released its construction spending report for December which rose a slower-than-expected 0.4% compared to expectations for a 0.8% jump. In November construction outlays dipped 0.2%.
Chinese stocks led declines across Asia today after the HSBC manufacturing purchasing managers index in January remained below the 50 level which separates contraction from expansion. The data came a day after the Chinese government's official PMI which dipped to 49.8 in January the first reading below 50 in nearly two and a half years. European markets finished broadly higher on Monday led by shares in Germany even as manufacturing activity in the region was basically stagnant in January.
In commodities union leaders called strikes on Sunday at nine US refineries accounting for more than 10% of US capacity after a failure to agree on a new national contract covering workers at 63 plants. If the strike escalates it could be detrimental to the oil price as it would put high US production out on the market with nowhere for it to go. WTI crude for March delivery initially fell on the news and on weak economic data from China but rebounded to finish up 2.8% at $49.57 a barrel after touching a session high at $50.56.
Gold futures for April delivery settled down 0.2% at $1276.90 per ounce after posting the biggest monthly rise in three years in January.
In corporate activity () rose 2.5% after its fourth quarter profit topped estimates despite a 21% year-over-year drop as production declined and revenue missed estimates. After the closing bell Anadarko Petroleum () and Cliffs Natural Resources () are scheduled to report quarterly results.
CRH (NYSE:CRH) said it is buying assets from building supplies companies Lafarge and Holcim for $7.4 billion with the assets sold in order to win approval for a merger between Lafarge and Holcim announced last year.
Chimerix's (NASDAQ:CMRX) clinical trial in Liberia for a drug to treat Ebola has been halted due to the sharp decline in the number of people infected with the virus. Shares fell over 4.8%.
() said it has agreed to buy German communications chip maker Lantiq. The terms of the deal were not disclosed.
(NASDAQ:LULU) skidded 1.1% Monday after news emerged that founder Chip Wilson will step down from the Vancouver-based company’s board.
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