From Briefing.com: 4:30 pm : Broad-based buying boosted stocks to their best levels of the week, but the S&P 500 now now faces a key technical line.
Stocks gradually chopped their way higher for the entire session. Initial gains were largely underpinned by the strength of Europe's major bourses, which were led by a 2.4% spike in Germany's DAX after the country reported stronger-than-expected first quarter GDP growth of 0.2%.
Gains began to mount as the session progressed. The S&P 500 had a bit of trouble near the 1170 line, but the broad market measure inevitably pushed past the point of resistance. Though the stock market was able to hold that level and close above it, the 50-day moving average represents a more formidable challenge at 1173.
Tech stocks, which collectively represent the heaviest sector by market weight, provided a key source of leadership this session. The sector catapulted to a 2.2% gain, which swung it back into positive territory for the year. Tech stocks are now up 2.1% year-to-date.
Retailers overcame an early fit of weakness to finish with a gain of 1.4%, collectively. Macy's (M 24.70, +0.80) was a leader in the group after it posted better-than-expected earnings. It reaffirmed an outlook that remains below Wall Street's consensus forecast, but stated that it would be premature to raise guidance due to macro uncertainty.
Natural resource plays garnered strong support after they had traded as laggards during the prior session.
Unfazed by a 0.9% drop in oil prices to $75.65 per barrel following a larger-than-expected build in weekly inventories, energy stocks staged a 1.3% gain. The sector was led by refiners, which surged 4.6%.
The materials sector climbed 1.9% as diversified metals and mining stocks spiked 4.0%. Gold stocks settled with a less impressive 0.9% gain, even though individual gold prices hit new record highs. The yellow metal closed pit trade with a 1.9% gain at $1243.10 per ounce, but extended their run into electronic trade as they eclipsed $1249 per ounce.
Treasuries were weak for the entire session. The benchmark 10-year Note shed roughly 12 ticks after an auction of 10-year Notes drew a lower-than-expected yield of almost 3.55% and a bid-to-cover ratio of 2.96.
The Treasury also unveiled its April budget, which showed a $82.7 billion deficit. That was much more than expected and was also the largest deficit ever recorded for April.
Advancing Sectors: Tech (+2.2%), Industrials (+2.0%), Materials (+1.9%), Consumer Discretionary (+1.4%), Energy (+1.3%), Financials (+1.1%), Telecom (+1.0%), Utilities (+0.9%), Health Care (+0.7%), Consumer Staples (+0.6%)
Declining Sectors: (None) DJ30 +148.65 NASDAQ +49.71 NQ100 +1.8% R2K +3.0% SP400 +2.2% SP500 +15.88 NASDAQ Adv/Vol/Dec 2221/2.30 bln/494 NYSE Adv/Vol/Dec 2661 /1.27 bln/437
4:08PM Cisco Systems beats by $0.03, beats on revs, with in-line gross margin (CSCO) 26.74 +0.78 : Reports Q3 (Apr) earnings of $0.42 per share, excluding non-recurring items, $0.03 better than the Thomson Reuters consensus of $0.39; revenues rose 27.0% year/year to $10.37 bln vs the $10.24 bln consensus. Co reports Q3 gross margins of 64% vs co guidance of 64-65%. "We witnessed a return to strong balanced growth across geographies, products and customer segments that we haven't seen since before the global economic challenges began."
1:49AM On The Wires : Suntech Power Holdings (STP), the University of New South Wales and Silex Solar will together research advanced technology to further improve the power conversion efficiencies of crystalline silicon solar cells through a 3-year collaborative research project... |
