By SCOTT STODDARD, INVESTOR’S BUSINESS DAILY
Stocks closed higher Monday as Apple (AAPL) ended above 600 for the first time after announcing it would pay a dividend. Meanwhile, parcel delivery service UPS (UPS) said it would pay $6.77 billion to buy TNT Express.
The Nasdaq rose 0.8%, the S&P 500 0.4% and the Dow Jones industrial average 0.1%, backing off earlier gains. Volume dropped sharply from Friday’s witching session.
Fashion retailer Michael Kors (KORS) lost 2%. After the close, shares seesawed after the company gave a mixed fourth-quarter outlook. The stock has run up sharply since its December IPO and still shows no sign of offering a proper entry point.
Apple announced its first dividend since 1995 and plans for a three-year, $10 billion share buyback. The quarterly dividend of $2.65 a share is scheduled to be paid July 1. Annualized, the yield would be 1.8%. Shares rose more than 2% in heavy volume, closing at a record-high 601.10. The stock is extended far above a 427.85 buy point and continued to climb in after-hours trading following the company’s announcement that it has sold 3 million units of its next-generation iPad since the product’s launch on Friday.
UPS climbed 3%, also in strong trade. Analysts said the parcel deliverer’s purchase of TNT Express, a leading Dutch parcel package service, would make UPS — already the world’s largest package delivery company — the leading delivery service in Europe. UPS said it would pay for the deal with $3 billion in cash and the remainder in new debt.
IBD Leaderboard stock Sourcefire (FIRE), a maker of Internet security software, retreated from a record high to close up 2%. Sourcefire is 5% past its 46.39 buy point from a short-stroke pattern, putting it at the end of its buying range.
Among IBD 50 stocks, electronic casino game maker Shuffle Master (SHFL) climbed 1%. It’s extended after the third test of its 50-day moving average. Domino’s Pizza (DPZ) jumped 3% and is also extended from a bounce off its 50-day line.
Clothing accessories retailer Fossil (FOSL) climbed 4%. The stock has encountered resistance near 120 and is extended past a 110.84 early buy point.
Online travel broker Priceline (PCLN) rose 3% to a fresh record high as it marked its second straight high-volume gain. The stock is 27% past a 549.10 buy point.
On the downside, TransDigm Group (TDG) fell 2% and is near a test of its 10-week line. The maker of aerospace components briefly rose above a 119.51 buy point in a three-weeks-tight pattern in late February, but failed to hold the breakout.