Stocks rose Monday, with the Dow Jones Industrial Average erasing a loss of around 1,115 points to end in positive territory as major indexes scored sharp intraday reversals. The Dow ended with a gain of around 99 points, or 0.3%, near 34,365 after dropping 3.3% at its session low. The S&P 500 finished 0.3% higher near 4,410, after declining 4% at its session low. The Nasdaq Composite ended up 0.6% near 13,855 after erasing a drop of 4.9%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Department store shares moved higher Monday after a Wall Street Journal report that Kohl's Corp. has received a $9 billion takeover bid from activist hedge fund Starboard Value LP. Kohl's confirmed receipt of a takeover offer. Kohl's shares soared nearly 34% in Monday trading. Macy's Inc. stock rose 17%, and Nordstrom Inc. was up 10.5%. Macy's has faced calls to separate its e-commerce business from brick-and-mortar stores. Department stores, as a category, have been under pressure dating back before COVID-19 as shopping habits shift. Macy's most recent earnings blew past expectations. The company is scheduled to report fourth-quarter earnings on February 22, according to a FactSet calendar. Nordstrom's most recent earnings report missed expectations. It is expected to report fourth-quarter results on March 3. Kohl's stock is up 38.7% over the past year. Macy's has rocketed 108.9%. And Nordstrom is down 40.7% for the period.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
White House press secretary Jen Psaki played down the sharp drop on Monday by U.S. stocks when asked about the Dow Jones Industrial Average's big fall. "We focus on the trends in the economy, not any one day and any single indicator," Psaki told reporters during a briefing. "Unlike his predecessor, the president does not look at the stock market as a means by which to judge the economy." She also said the equity market has gained around 15% since Biden took office.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Gold futures settled higher on Monday, with prices finding support as U.S. benchmark stock indexes suffered a sharp decline. "Gold is clearly finding favor as portfolio insurance," said Adrian Ash, director of research at BullionVault. "Rising interest rates would typically offer a headwind to gold, but the risk of a [Federal Reserve] mistake in hiking too late is now worsened by the political impossibility of rescuing equity investors with cheap money," he said. The Fed will meet this week and is expected to make an announcement on monetary policy Wednesday. February gold rose $9.90, or 0.5%, to settle at $1,841.70 an ounce.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Shares of Microsoft Corp. dove 5.8% in midday trading Monday, to put them on track for a six-month low, and enough to pace the 29-of-30 Dow Jones Industrial Average components that are losing ground. The stock's $17.27 price decline, which is the stock's second-biggest-ever price decline behind the $23.41 record selloff on March 16, 2020, was slashing about 114 points off the Dow's price, while the Dow dropped 1,002 points, or 2.9%. Microsoft's stock is now trading 18.8% below its Nov. 19 record close of $343.11. Many on Wall Street define a bear market as a decline of 20% or more from a bull-market high. By that definition, a close below $274.49 would put the stock in a bear market. Microsoft's selloff comes just before the software giant is scheduled to report fiscal second-quarter results after Tuesday's closing bell. Microsoft hasn't missed quarterly earnings expectations in years.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.