Closing Update: Stocks Return To Rally-Mode on Strong Econ Data and Earnings

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The stock market was back on the offensive, hitting record highs and nearly wiping out last week's losses, with Bank of America ( BAC ) earnings, bullish economic data, and tech-sector strength all catalysts. The Dow Industrials advanced by triple digits, the S&P 500 broke another record high led by gains in Apple ( AAPL ), while the Nasdaq rallied to a new 13-year high with help from Chelsea Therapeutics ( CHTP ). While volume dried up later in the day, and momentum evaporated, the indices held onto the bulk of their earlier gains indicating likely strong market sentiment for the remaining Q4 earnings and the rest of this week's data on housing, jobs and manufacturing.

The session kicked off with an as-expected 0.4% increase in wholesale prices, a big reversal from the 0.1% contraction from November. Excluding the volatile food and fuel sector, producer prices were up 0.3% versus the consensus estimate of +0.1%.

But the PPI data was eclipsed by a manufacturing barometer from the NY Federal Reserve. The Empire State business conditions index surged to 12.51, nearly 4 times what the street was expecting and significantly better than the 0.98 index from December.


Lastly, the recent Beige Book of regional economic activity was mostly a non-event as most districts reported "moderate" economic growth, similar to the past two studies. All 12 districts reported "more of the same" in regard to the economic outlook.

Here's where the markets stand at the close:

US MARKETS

Dow Jones Industrial Index was up 108 (+0.7%) 16,481.94

S&P 500 was up 9.50 (0.5%) 1,848.38

Nasdaq Composite Index was up 31.87 (+0.8%) 4,214.88

GLOBAL SENTIMENT

FTSE 100 was up 0.78%

Nikkei 225 was up 2.50%

Hang Seng Index was up 0.49%

Shanghai China Composite Index was down 0.17%

UPSIDE MOVERS

AMRN FDA expected to deliver a decision on its drug candidate for fatty liver disease

CTRL Rumored to be next Google ( GOOG ) take-over target given its Control4 home automation product

CHTP FDA recommend approval of NORTHERA (droxidopa) for the treatment of symptomatic neurogenic orthostatic hypotension (nOH

DTLK Expects Q4 revenue to be about $174 million, better than prior guidance of $160 to $170 million and ahead of the analyst consensus on Cap IQ of $167 million.

DOWNSIDE MOVERS

VEEV Marc "Dr Doom" Faber called VEEV overvalued in a Tuesday Bloomberg TV interview that focused on "fad" stocks.

QIWI Price plummets on reports that Russia is mulling new regulations to limit cross-border payments there.

NUS China's People's Daily article contained comments criticizing Nu Skin business practices.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: AAPL , BAC , CHTP , GOOG

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As of 12/17/2014, 04:15 PM


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