Market Wrap: Stocks Rebound on Deals; Apple Up After Event

Stocks Close Sharply Down, Over 250 Points
Spencer Platt/Getty Images
By Caroline Valetkevitch

NEW YORK -- U.S. stocks bounced back Monday, helped by merger and acquisitions activity, while Apple shares ended slightly higher following the long-anticipated rollout of its watch.

Alcoa said it would buy RTI International Metals for $1.5 billion. Separately, Shopping mall owner Simon Property Group offered to buy Macerich for $22.4 billion including debt.

Alcoa (AA) lost 5.4 percent to $13.70 while RTI (RTI) jumped 39.3 percent to $38. Macerich (MAC) rose 7 percent to $92.76 and Simon Property (SPG) was down 0.1 percent at $180.44.

%VIRTUAL-pullquote-We're seeing a little bit of a snapback from Friday's reaction to the jobs report.%The day's gain came after the S&P 500's biggest drop in almost two months Friday, when investors bet a stronger-than-expected U.S. jobs report increased chances the Federal Reserve could raise interest rates sooner.

"We're seeing a little bit of a snapback from Friday's reaction to the jobs report. We're seeing a little of that reversion-to-the-mean trade," said Larry Peruzzi, senior equity trader at Cabrera Capital Markets in Boston.

Shares of Apple (AAPL) ended up 0.4 at $127.08 after trading both sides of unchanged as details of its watch were released, including that the price would range from $349 to more than $10,000.

"I just don't know if it's going to be the power product that everyone's looking for," said Daniel Morgan, senior portfolio manager at Synovus Trust Company in Atlanta.

The Dow Jones industrial average (^DJI) rose 138.94 points, or 0.78 percent, to 17,995.72, the Standard & Poor's 500 index (^GSPC) gained 8.17 points, or 0.39 percent, to 2,079.43 and the Nasdaq composite (^IXIC) added 15.07 points, or 0.31 percent, to 4,942.44.

The S&P 500 is about 1.8 percent below its record closing high from last week, while the Dow is about 1.6 percent below its record.

Stocks Making News

Other top gainers included Whiting Petroleum (WLL), which rose 10.8 percent to $37.71. Late Friday, The Wall Street Journal reported that the company was seeking a possible buyer, though a person familiar with the board's thinking told Reuters he wasn't aware of such a plan.

General Motors (GM) shares rose 3.1 percent to $37.66 after it said it plans a new, $5 billion share buyback in an agreement with dissident investors, and put forward more details on capital allocation that promises investors the potential for further cash returns.

Shares of Qualcomm (QCOM) were up 2.3 percent at $74.40 after the bell following its announcement of a $15 billion share buyback.

About 6.2 billion shares changed hands on U.S. exchanges, below the 6.6 billion average for the last five sessions, according to BATS Global Markets.

Advancing issues outnumbered declining ones on the NYSE by 1,612 to 1,445, for a 1.12-to-1 ratio; on the Nasdaq, 1,521 issues rose and 1,215 fell, for a 1.25-to-1 ratio favoring advancers.

The S&P 500 posted eight new 52-week highs and 13 new lows; the Nasdaq composite recorded 63 new highs and 65 new lows.

What to watch Tuesday:
  • At 10 a.m., the Commerce Department releases wholesale trade inventories for January, 10 a.m.; and the Labor Department releases job openings and labor turnover survey for January.
Earnings Season
  • Barnes & Noble (BKS) and Verifone Systems (PAY) are due to release quarterly financial results.
The 6 Best Things to Buy in March
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Market Wrap: Stocks Rebound on Deals; Apple Up After Event
The travel industry sees a decline in travel throughout late winter, including March. That's often because people don't have a reason, or the time, to get away. If you can, though, take advantage of the low prices, which are found across the board. Cash in those airline miles, pick up that new luggage you've been meaning to buy and plan for a weekend getaway that'll give you some reprieve from the humdrum of your current life. Prices are lower on car rentals, airfare, lodging, travel essentials and more.
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There's a noticeable shift in scents at the change of every season. For example, winter calls for richer, heavier personal fragrances, and candles and other home fragrances are typically very wintry (cranberries, birch trees, etc.) during the cold months. Perfumers and home fragrance retailers are putting out new scents right now, which means last season's goods are hitting the clearance bin. Stock up for now and later.
As we get closer to warmer weather, people pull up their sleeves and prepare for spring cleaning and organizing. So this is the time for new products (even if it's just a slight change in formulation or scent),and introductory rates to get you to try them. Keep your eyes peeled and your home fresh.
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