MARKET SNAPSHOT: U.S. Stocks Rally As S&P 500 Hits Intraday Record

By Victor Reklaitis, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks advanced on Monday, recovering from their losses last week as the S&P 500 scored an intraday record and worked to achieve a record closing high.

The S&P 500 (SPX) rose 15 points, or 0.8%, to 1,851, led by gains in the energy and health-care sectors, while the Dow Jones Industrial Average (DJI) rose 134 points, or 0.8%, to 16,237, boosted by a 3% jump by UnitedHealth Group Inc. (UNH). The Nasdaq Composite (RIXF) climbed 33 points, or 0.8%, to 4,296.

The S&P 500 and Dow both dipped for the week last week, halting two-week winning streaks, but that still left the S&P within striking distance of its Jan. 15 record close of 1,848.38. The benchmark has traded above that level on Monday, hitting an intraday record and turning positive for the year to date.

Some market analysts have said they see limited gains for stocks in the near term, citing resistance for the S&P 500 as the benchmark index trades around its record level.

U.S. stocks appear set to "claw back Friday's losses to start the week but continue to have a hard time breaking out to new highs," said Colin Cieszynski, senior analyst at CMC Markets in a note early Monday. "Although stocks may be getting seasonal support from capital flows into retirement accounts ahead of tax deadlines, significant overhead channel resistance remains intact heading into a relatively quiet week for corporate and economic news."

In economic news on Monday, traders will watch for new data from the Dallas Federal Reserve Manufacturing Survey due at 10:30 a.m. Eastern. Later in the week, Fed Chairwoman Janet Yellen is scheduled to appear before a Senate panel on Thursday, and a fresh estimate on U.S. fourth-quarter GDP is expected on Friday. Read MarketWatch's preview for this week's economic reports: Is the economy merely suffering from a cold?

In overseas markets, Asian stocks closed mostly lower on news of slower growth for Chinese home prices and reductions in real-estate lending. European shares have rallied, boosted in part by Germany's Ifo business-climate survey coming in slightly better than expected.

Among individual U.S. stocks, Netflix Inc. (NFLX) fell 0.2% after the company reached an agreement with Comcast Corp.(CMCSA) to improve the viewing experiences of Netflix's video-streaming subscribers in the U.S.

Deal news provided a 12% boost to shares of RF Micro Devices (RFMD), which said it will merge with TriQuint Semiconductor Inc. (TQNT) in an all-stock deal. TriQuint shares are up 18%.

Jos. A. Bank (JOSB) shares rose 8% after Men's Wearhouse Inc. (MW) upped its offer for its rival to $63.50 a share. The amended offer is conditioned on Jos. A. Bank terminating its recent agreement to buy Eddie Bauer. Shareholders have until 5 p.m. Eastern on March 12 to accept the amended offer. Men's Wearhouse shares rose 7%.

In other markets, gold prices rose, while oil was up slightly. The dollar edged up against its major rivals.

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