US stocks closed higher on Monday, as investors focused away from earnings and towards what might become an export-driven recovery for the world's biggest economy if the dollar continues to sag.
The broad-based S&P 500 index closed up 0.8% at 2,081. The S&P Midcap 400 was 0.8% higher at 1,472, while the S&P Smallcap 600 was 0.7% higher at 699.
Volumes were relatively quieter on the first trading day of May, on account of a public holiday in the UK and elsewhere in Europe.
Some signs that a weaker dollar on account of Fed indecision over rates, helped boost sentiment that the United States could enjoy a season of export-driven growth.
Two major index components went their separate ways, and so did their share prices. Halliburton (NYSE:HAL) shares rose 1.8% to $42.05 while those of rival Baker Hughes (NYSE:BHI) fell 2% to $47.40 after calling off their planned $28bn merger.
The merger plan ran into strong opposition from regulators who had said the deal would hurt competition. Halliburton will pay a $3.5bn breakup fee to Baker Hughes as a result of the deal's termination, with Baker Hughes saying it will use the money to buy back stock and reduce debt.
Elsewhere the timing of the UK's EU referendum "Brexit" vote was seen to help the owners of the New York Stock Exchange get their act together if they still wanted to bid for the London Stock Exchange.
IntercontinentalExchange (NYSE:ICE) shares rose 1.9% to $4.55 after the New York Stock Exchange parent may get more time to consider a bid for the London Stock Exchange (LSE). Reuters reported that LSE's parent company may delay its shareholder meeting to approve its planned takeover by Deutsche Boerse until after the "Brexit" referendum on June 23.
A sharp fall in oil prices did not derail the higher close for the US bourse. The US oil benchmark West Texas Intermediate was down 2.31% at $44.86.
Midsession
US stocks started the month on a high note on Monday, extending April's gains as investors latched onto a weaker dollar as a sign of a more export-driven economy, analysts said.
The optimism was strong enough to brush off lacklustre US manufacturing data. Output activity rose for a second straight month in April but at a slightly slower pace, as new orders and production fell, data showed.
The broad-based S&P 500 was up 0.4% at 2,074. On Friday, the broad-based ticker ended the month at 2,065.50 - off its intra-month highs but a smidgeon higher than 2,059.74 where it had ended March. That means that since the start of the year the index has soldiered higher.
The S&P Midcap 400 index was up 0.4% at 1,467, led by gains at Genworth Financial (NYSE:GNW) and United States Steel Corp (NYSE:X).
Genworth shares were up 16.9% at $4.01 on a technical rally. United States Steel shares were up 6.6% at $20.37 after the company announced its intention to offer $500mln of senior secured notes due 2021 to repay outstanding debt, focusing on near-term maturities, and any remaining proceeds for general corporate purposes.
The S&P Smallcap 600 was up 0.2% at 696 led by Newpark Resources (NYSE:NR), up 11.1% at $5.19 as the stock recovered from a sell-off last week with its first quarter earnings where it posted a $13.3mln loss.
Bourse gains came despite the flight to gold and oil prices which once more sagged. The US benchmark West Texas Intermediate was down 1.22% at $45.36.