NEW YORK: The S&P 500 met tough resistance on Monday, April 4 failing to break a level that has held since mid-February and ending flat even as a spate of deals and underlying strength in the economy spurred optimism.
But caution ahead of earnings season held volume to its lowest level this year and suggested the recent rally may be fading.
The benchmark S&P 500 hovered slightly below 1,333, which it has not closed above since mid-February. The level is double the 12-year low hit in March 2009 and not far from 1,344, the S&P's highest since June 2008.
"Volume has dried up here as investors and traders are sitting on their positions to see what happens" in the upcoming earnings season, said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford, New York.
Larry McMillan, president of McMillan Analysis Corp, said the market is due for a short-term correction as technical indicators suggest the market is overbought.
"Overall, the picture is still bullish, but the market is acting tired because it's overbought. With the month-end bullish influences winding down, there could be a short-lived pullback at hand," he said in a note.
The Dow Jones industrial average .DJI rose 23.31 points, or 0.19 percent, to end at 12,400.03. The Standard & Poor's 500 Index .SPX was up just 0.46 of a point, or 0.03 percent, at 1,332.87. The Nasdaq Composite Index .IXIC was down 0.41 of a point, or 0.01 percent, at 2,789.19.
On Friday, the S&P recorded its best two-week period since December, and the Dow industrials hit their highest intraday level since June 2008. Encouraging jobs data during the week helped cement hopes of a labor market recovery.
About 5.94 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, the lowest of the year and below last year's estimated daily average of 8.47 billion.
DANCE OF THE CHIPMAKERS
After the bell, Texas Instruments Inc (TXN.N) said it plans to buy smaller rival National Semiconductor (NSM.N) for about $6.5 billion in one of the microchip industry's largest deals in years.
Following the announcement, Texas Instruments' stock fell 1.8 percent to $33.50 in extended trade, while National Semiconductor's shares surged 73.4 percent to $24.39.
During the regular session, the Philadelphia semiconductor index .SOX fell 0.9 percent. It has lost 2.9 percent over the past four days.
Japanese investment bank Nomura maintained a neutral view on semiconductor stocks, citing weakened demand, peak gross margins and higher capital spending in the sector.
Investors were also on the lookout for an expected increase in euro-zone interest rates this week. - Reuters
But caution ahead of earnings season held volume to its lowest level this year and suggested the recent rally may be fading.
The benchmark S&P 500 hovered slightly below 1,333, which it has not closed above since mid-February. The level is double the 12-year low hit in March 2009 and not far from 1,344, the S&P's highest since June 2008.
"Volume has dried up here as investors and traders are sitting on their positions to see what happens" in the upcoming earnings season, said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford, New York.
Larry McMillan, president of McMillan Analysis Corp, said the market is due for a short-term correction as technical indicators suggest the market is overbought.
"Overall, the picture is still bullish, but the market is acting tired because it's overbought. With the month-end bullish influences winding down, there could be a short-lived pullback at hand," he said in a note.
The Dow Jones industrial average .DJI rose 23.31 points, or 0.19 percent, to end at 12,400.03. The Standard & Poor's 500 Index .SPX was up just 0.46 of a point, or 0.03 percent, at 1,332.87. The Nasdaq Composite Index .IXIC was down 0.41 of a point, or 0.01 percent, at 2,789.19.
On Friday, the S&P recorded its best two-week period since December, and the Dow industrials hit their highest intraday level since June 2008. Encouraging jobs data during the week helped cement hopes of a labor market recovery.
About 5.94 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, the lowest of the year and below last year's estimated daily average of 8.47 billion.
DANCE OF THE CHIPMAKERS
After the bell, Texas Instruments Inc (TXN.N) said it plans to buy smaller rival National Semiconductor (NSM.N) for about $6.5 billion in one of the microchip industry's largest deals in years.
Following the announcement, Texas Instruments' stock fell 1.8 percent to $33.50 in extended trade, while National Semiconductor's shares surged 73.4 percent to $24.39.
During the regular session, the Philadelphia semiconductor index .SOX fell 0.9 percent. It has lost 2.9 percent over the past four days.
Japanese investment bank Nomura maintained a neutral view on semiconductor stocks, citing weakened demand, peak gross margins and higher capital spending in the sector.
Investors were also on the lookout for an expected increase in euro-zone interest rates this week. - Reuters
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