Stocks came back from losses last week to close higher on Monday, lifted by financial stocks including Berkshire Hathaway. Bobbi Rebell reports.
Financial and consumer stocks lifted Wall Street on the first trading day of the month. But don't expect much more in gains from these slightly overvalued markets, warns Steve Wood of Russell Investments. (SOUNDBITE) STEPHEN WOOD, CHIEF MARKET STRATEGIST, RUSSELL INVESTMENTS, (ENGLISH) SAYING: "If the U.S. markets ended flat from this point by the end of the year, I think that might be something of a win for investors. So, we're inclined to sell into these US rallies and use that underweight or those profits to fund more global investments." Economic data was mostly positive. Manufacturing activity rose for a second straight month in April, but the pace slipped. Construction spending rose to an 8-1/2 year high in March. Baker Hughes says it'll buy back stock and debt with the breakup fee it'll get from Halliburton after their $28 billion merger deal collapsed. Baker's shares fell; Halliburton's rose. Apollo Education says a group of investors raised their bid for the company. The University of Phoenix owner says that offer is 28 percent higher than its closing price on Friday. J.C. Penney shares got a lift from Barron's. The financial weekly said the retailer has made progress in its turnaround and that the stock could double in price over the next three years. In Europe, energy weighed on the markets, but tech stocks helped shares edge higher. London was closed for a public holiday.