Stocks rallied as investors viewed Friday's poor jobs report as reason for the Fed to put off rate hikes. Jeanne Yurman reports.
Stocks rallied Monday on what seemed to be a case of bad-news-is-good-news. All three major stock gauges jumping as investors read the ugly jobs report out Friday - when the markets were closed - as reason for the central bank to push an interest rate hike later in the year. Amongst the day's advancers were small cap stocks, which have been moving higher for several months. U.S. Bank's Eric Wiegand: SOUNDBITE: ERIC WIEGAND, U.S. BANK, PORTFOLIO MANAGER IN (ENGLISH) SAYING: "Small caps have much less global exposure than do their large cap brethren. So companies that have been more focused on North American operations where they have actually on many cases been a beneficiary of a stronger dollar has led to the continued outperformance of the Russell 2000." The services sector expanded at its fastest pace since August last month according to data from Markit. However, a separate and more closely watched survey from the Institute for Supply Management, showed the services sector contracting slightly in March, dipping to its lowest level in three months. Oil prices surged more than five percent on Monday. This as traders tempered their outlook for increased output from Iran, and many now expect a months-long rise in U.S. crude inventories to ease. Stocks on the move include U.S. listed shares of Amsterdam-based UniQure which soared more than 46 percent after a deal with Bristol-Myers Squibb to develop gene therapies for cardiovascular diseases. Tesla shares shot higher after reporting a 55 percent increase in deliveries during the first quarter. However, Qualcomm shares edged down on word that Samsung used more of its own chips in the new Galaxy S6 smartphone. European markets were closed for Good Friday and Easter Monday.