While you were sleeping: UPDATED Stocks rise as Fed official tips April hike

Stocks on Wall Street rose while US Treasurys fell as Federal Reserve Bank of Atlanta president Dennis Lockhart said the US economy might warrant an interest rate hike as early as April.

"In my opinion, there is sufficient momentum evidenced by the economic data to justify a further step at one of the coming meetings, possibly as early as the meeting scheduled for the end of April," Mr Lockhart said in prepared remarks for a speech in Savannah, Georgia.

Last week a statement at the end of the latest two-day Federal Open Market Committee meeting showed the median forecast now included two rate increases this year, down from four predicted in December.

"I would argue that the real economy – the Main Street economy – remains substantially on the path envisioned by committee participants at the time of the liftoff decision in December," Mr Lockhart said.

"However, the context of risks and uncertainties has shifted somewhat. In my view, this explains the committee's changed sentiment regarding the speed of normalisation, the pace of rate increases."

At the close of trading, the Dow Jones Industrial Average was up 21.57 points, or 0.1%, to 17,623.87, while the Nasdaq Composite Index rose 0.3% to 4808.87.  The Standard & Poor's 500 Index sended up 0.1% at 2051.60.

Meanwhile, US Treasurys fell, pushing 10-year yields three basis points higher to 1.90%.

"Our market is really resting on the back of the dovish statement from the Fed and waiting to see where we are headed with the economic data," Lisa Kopp, head of traditional investments at US Bank Wealth Management in Minneapolis, told Reuters.

Valeant Pharmaceuticals International climbed 7.4% after it said it has named William Ackman to its board and begun a search for a new chief executive to succeed Michael Pearson. The drugmaker also alleged improper conduct by its top financial officers – accusations that the former financial chief denied.

Information provider IHS and market-data firm Markit announced a plan to merge, joining a wave of so-called tax-inversion deals by basing the company in London. IHS gained 10%, and Markit climbed 14%.

Starwood-Marriott merger on again
Starwood Hotels & Resorts said it agreed to a sweetened $US13.6 billion deal from Marriott International. Starwood gained 4.5%, while Marriott dropped 1.2%.

Starwood "has found itself in the middle of a bidding war," Tim Craighead, a research director at Bloomberg Intelligence, said in a report.

"A Marriott-Starwood combination would create a diversified, asset-light lodging behemoth focused on expanding its base of fees and managed and franchised hotels. A takeover by [Chinese company] Anbang Insurance may cloud the long-term growth picture."

Shares of social media company Twitter added 0.2% in recent trading as the company celebrated its 10-year anniversary. Since going public in November 2013, Twitter’s stock has fallen 36%, posting the majority of that decline in 2016.

In other deal news, shares of Valspar soared, last up 24.2%, after Sherwin-Williams agreed to buy the company for about $US9.3 billion.

US-traded crude oil gained 1.2% to $US39.91 a barrel, and has risen 18% so far this month.

In the latest housing data, a National Association of Realtors report showed US existing home sales sank 7.1% to an annual rate of 5.08 million units, the lowest level since November.

"Sales took a considerable step back in most of the country last month, and especially in the northeast and midwest," Lawrence Yun, NAR's chief economist, said in a statement.

"The lull in contract signings in January from the large East Coast blizzard, along with the slump in the stock market, may have played a role in February's lack of closings.

"However, the main issue continues to be a supply and affordability problem," Mr Yun noted. "Finding the right property at an affordable price is burdening many potential buyers."

Europe's Stoxx 600 Index ended the day with a decrease of 0.3% from the previous close as energy and mining stocks fell. Germany's DAX Index slipped 0.02%, the UK's FTSE 100 Index inched 0.08% lower, while France's CAC 40 Index fell 0.8%.

Shares of Bayer gained, up 3.2%, while those of BASF also gained amid reports Monsanto has explored possible deals with the German companies.

(BusinessDesk)