MARKET SNAPSHOT: Dow Tops 16,000, But Nasdaq Barely Budges

By Victor Reklaitis, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks stepped higher on Monday, with the Dow industrials trading above 16,000 for the first time and the S&P 500 holding near its own milestone of 1,800.

The market joined in global gains that came after upbeat European trade data and further reaction to Chinese reforms. The Federal Reserve's easy-money stance also stuck as a key driver for investors, and investors waited on Fed speeches along with a report on the housing market.

The S&P 500(SPX) was last up 2 points, or 0.1%, to 1,800, while the Dow Jones Industrial Average(DJI) jumped 49 points, or 0.3%, to 16,011. The Nasdaq Composite(RIXF) was last up 1 point to 3,987, as it also approached a milestone at 4,000.

Fawad Razaqzada, technical analyst at Forex.com, said the 16,000 for the Dow could trigger some profit-taking and a "healthy pullback" amid the big march higher for markets. "However, should this not come to fruition then I would interpret it as an indication that the rally is extremely strong and that it has further room to the upside," said Razaqzada in a note. Read: This bull market isn't so old or different

Craig Erlam, markets analyst at Alpari U.K., said markets are continuing to build on optimism surrounding the Fed's bond-buying program. "There's no doubt that it has been a huge contributor to the rally this year and Janet Yellen's testimony last week suggested it's going to carry on, in its current form," he said in emailed comments. "As long as the Fed continues to pump $85 billion per month into the financial system, traders will be bullish on stocks."

On Friday, the S&P 500 and Dow cinched record closes again and snared their sixth weekly gains in a row, up 1.6% and 1.3%, respectively. The S&P 500 is enjoying its longest winning streak since February.

Check out MarketWatch's live blog of Monday's stock-market action.

* The buzz: The three main U.S. stock indexes all stand near big round numbers, such as 16,000 for the Dow, 1,800 for the S&P 500 and 4,000 for the Nasdaq. Technical analysts often say round numbers can serve as important psychological levels, with profit taking and resistance appearing at those levels. But other market watchers say the "meltup hasn't even started yet." Read more in the Need To Know column.

* Today's market-moving news: Investors will watch for a new reading for a housing-market index at 10 a.m. Eastern time. They also will take in several Fed speeches, including New York Fed President William Dudley at 12:15 p.m. and Philly Fed President Charles Plosser at 1:30 p.m.

* Today's movers & shakers: Tyson Foods Inc. rose 3% after its upbeat earnings report, while Urban Outfitters Inc. was little changed and Salesforce.com Inc. fell 0.5% ahead of their quarterly reports after the bell. Read more in the Stocks To Watch and Movers & Shakers columns.

* Other markets:European stocks advanced after encouraging trade data, while Chinese stocks closed sharply higher as investors there had their first chance to react to reform details out late Friday. Gold dIpped, oil slipped and the dollar also fell.

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