Stronger earnings at Citigroup, the best retail sales gain in 18 months and the cooing of dovish European central bankers combined to turn the tide for stocks, even as worries about Ukraine hang over markets.
Stocks jumped out of the gate Monday morning but pulled back from the highs that initially sent the Dow up triple digits. Like a seesaw, the yield on the 10-year then moved higher, and stocks resumed their climb in late morning trading. The best performers were the materials and industrial sectors, beneficiaries of global growth, followed by financials and consumer discretionary, which includes retail stocks.
But analysts were skeptical that the rally marks an end to the selloff, even with a rebound above 4,000 in the Nasdaq and strong gains in the momentum names like Facebook, Twitter and Amazon.com. The iShares Nasdaq Biotech ETF, IBB, a closely watched monitor of momentum was higher in early trading but traded on both sides of its 200-day moving average of 219, before ending the day slightly lower.
The S&P 500 closed near its high of the day at 1830, a gain of 0.8 percent or 14 points. Its losses in the recent sell off totaled 4.3 percent, as of Friday, from its all-time high reached on April 4.