The U.S. stock market showed more resilience on Monday as the
major averages climbed from negative to positive territory in
afternoon trade and closed near the highs of the day.
In the currency markets, the Japanese yen continued to plummet
versus the greenback on bond buying from the Bank of Japan.
After the closing bell, Alcoa (NYSE:
) kicked off earnings season by reporting Q1 EPS of $0.11 versus
the estimated $0.10, beating by $0.01. EPS were Up 10% from the
same quarter last year. Revenue came in at $5.83B versus the
estimated $5.89B. Sales were Down 3% year over year.
The Dow Jones Industrial Average added around 48 points, or
0.33 percent, to close at 14,613.
The S&P 500 climbed almost 10 points, or 0.63 percent, to
finish at 1,563.
The Nasdaq rose a little better than 18 points, or 0.57
percent, to 3,222.
Oil prices rose to begin the trading week on Monday. During
the final hour of equity trading, NYMEX crude futures were up
0.79 percent to $93.38 while Brent crude had added 0.62 percent
to $104.75. Natural gas futures were last down around 1 percent
to $4.09 on the session.
Precious metals were slightly lower on the day. At last check,
COMEX gold futures had shed 0.21 percent to $1,573.00. Silver
futures were last down 0.18 percent to $27.18. Copper futures
rose almost 1 percent on Monday.
Grain prices rose across the board on the day. Corn futures
were last up 0.72 percent while wheat traded almost 2 percent
higher on the session. In soft commodities, significant movers
included cocoa, which climbed around 2.50 percent, and coffee,
which lost around 3 percent.
Bonds fell on the day after a big rally on Friday. Near the
closing bell, the iShares Barclays 20+ Year Treasury Bond ETF
) was up around 0.77 percent to $121.90. Lower prices pushed
yields higher on Monday.
The yield on the 2-Year Note was unchanged at 0.23 percent,
while the yield on the 5-Year Note rose one basis point to 0.70
percent. The 10-Year Note and 30-Year Bond yields each rose three
basis points to 1.74 percent and 2.91 percent, respectively.
The U.S. dollar rose on Monday. Near the close of equities,
the PowerShares DB US Dollar Index Bullish ETF (NYSE:
), which tracks the performance of the greenback versus a basket
of foreign currencies, was up 0.31 percent to $22.52.
The closely watched EUR/USD pair was last trading down 0.06
percent to $1.3004. The big mover on the day, once again, was the
USD/JPY, which surged another 1.56 percent. The Japanese yen
continues to plunge versus the greenback after a huge round of
quantitative easing was announced by the Bank of Japan. The
ramifications of the large move in the USD/JPY is having
ramifications around the world.
Volatility and Volume
The VIX fell on Monday as stocks surged late in the day. The
widely watched barometer of market volatility fell 3.30 percent
to close at 13.46.
Volume was very light on the session with only around 72
million SPDR S&P 500 ETF (NYSE:
) shares trading hands compared to a 3-month daily average of 124
Shares of Lufkin Industries (NASDAQ:
) surged more than 37 percent on Monday after the company agreed
to be acquired by GE (NYSE:
) for around $3 billion.
Shares of NII Holdings (NASDAQ:
) continued to surge on Monday after the company announced the
sale of its Peruvian business to Chilean telecom operator Entel
for $400 million last week. The stock was last trading up around
15 percent near the closing bell.
Icahn Enterprises (NASDAQ:
) climbed more than 10 percent on Monday after the stock was
mentioned favorably in Barron's.
Shares of chip-maker Advanced Micro Devices (NYSE:
) were trading up more than 13 percent on Monday after Microsoft
said that it would use AMD chips in its next generation XBOX
Saba Software (NASDAQ:
) fell around 10 percent on the day after the company said last
week that it anticipates it will be delisted from the NASDAQ
Global Select Market.
Enphase Energy (NASDAQ:
) fell around 5 percent on the day, although the reason for the
move in the stock was not readily apparent.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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