Nasdaq Closes Above 5,000 For First Time In 15 Years -- U.S. Commentary

(RTTNews) - U.S. stocks rallied Monday despite a mixed batch of economic news, with the tech-heavy Nasdaq closing above 5,000 for the first time in fifteen years

Investors cheered after the People's Bank of China (PBOC) cut benchmark interest rates by 25 basis points to 5.35 percent on Saturday.

The Nasdaq Composite finished up 44.57 points, or 0.9%, at 5,008.10, just off an all-time intraday high.

Led by consumer discretionary stocks, the S&P 500 added 12.89 points, or 0.6%, to 2,117.39, a fresh all-time high. The Dow Jones Industrial Average jumped 155.93 points, or 0.9%, to 18,288.63, also a record high.

While gauges of most sectors were positive, oil stocks struggled, as reflected in a 2.4% drop in the PHLX Oil Service Index.

In economic news, new government data released this morning showed that personal income rose in January. However spending unexpectedly declined.

Personal income increased by 0.3 percent in January. Economists had expected the measure to rise by 0.4 percent. Meanwhile, personal spending fell for the month. The figure dipped 0.2 percent. Economists had expected spending to hold steady in January.

Meanwhile, the Institute for Supply Management released a report on Monday showing that U.S. manufacturing activity growth slipped to its lowest in 13 months. The ISM said its purchasing managers index fell to 52.9 in February.

Adding to concerns that the U.S. economy in the midst of winter lull for a second year, U.S. construction spending unexpectedly fell in January. Spending on U.S. construction projects declined 1.1 percent.

Traders also weighed a flurry of merger news. NXP Semiconductors has reached a deal to acquire Freescale Semiconductor for $11.8 billion.

PayPal, the online payment unit of Ebay, said it has agreed to buy mobile payment company Paydiant for $280 million.

Meanwhile, Cardinal Health (CAH) announced plans to acquire Johnson & Johnson's Cordis business, a global manufacturer of cardiology and endovascular devices. The purchase price is $1.94 billion in cash.

Lumber Liquidators shares were temporarily suspended after falling sharply. The company was featured in a segment on Sunday's "60 Minutes," which claimed the hardwood flooring retailer installed laminate with high levels of formaldehyde.

Costco Wholesale Corp. has struck credit card partnerships with Citigroup and Visa.

Light Sweet Crude Oil futures for April delivery, the most actively traded contract, shed $0.17 or 0.3 percent to settle at $49.59 a barrel on the New York Mercantile Exchange Monday.