U.S. stocks rise on ‘buy-the-dip’ mentality
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U.S. stocks rise on ‘buy-the-dip’ mentality
NEW YORK (MarketWatch) — U.S. stocks shed Monday losses to end modestly higher as investors again viewed a market drop as a buying opportunity.
“The declines are shallow as buyers come in because they need additional equity exposure. The path of least resistance is up,” said Marc Chaikin, CEO of Chaikin Analytics.
The S&P 500 index (SNC:SPX) gained 9.79 points, or 0.6%, at 1,563.07, with consumer-related companies pacing the gains that included all but one of its 10 major sectors.
After rising to a record closing high of 1,570.25 a week ago, the S&P 500 index (SNC:SPX) declined 1% last week following the smallest increase in jobs in nine months and other reports on manufacturing and services also came in below expectations.
The jobs report prompted worries the U.S. economy had hit a soft patch. Breaking down the jobs report
Still, the S&P 500 remains 9.6% higher for the year, with corporate profit and the Federal Reserve’s ongoing bond-buying program helping support equities.
“There are so many skeptics about the market going to new highs; pullbacks like last week are frustrating the bears, since there is no downside follow through,” said Chaikin
After a 67-point fall during the day, the Dow Jones Industrial Average (DJI
JIA) ended at 14,613.48, up 48.23 points, or 0.3%. http://www.marketwatch.com/story/wall-street-...beforebell
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