The U.S. stock market continued to show strength on Thursday,
although most of the session gains were concentrated on the
All three of the major averages closed higher as investors
continue to focus on corporate earnings reports, which have by
and large been good. One of the major stories of the day was a 30
percent surge in Facebook shares in the wake of stellar fiscal
second-quarter financial results from the company.
In other news, a federal grand jury returned an indictment
against top hedge fund SAC Capital Advisors. The trading
powerhouse founded by billionaire Steven Cohen was charged with
one count of wire fraud and four counts of securities fraud going
back over 11 years. It was the largest indictment of a financial
firm since Arthur Andersen was charged in 2002.
SAC Capital Indicted by New York Federal Court
for Wire Fraud and Securities Fraud
The Dow Jones Industrial Average climbed 13 points, or 0.09
percent, to close at 15,556.
The S&P 500 rose a little better than 4 points, or 0.26
percent, to 1,690.
The Nasdaq jumped 26 points, or 0.71 percent, to 3,605.
Initial jobless claims for the week ending July 20 rose to
343,000 compared to 336,000 for the week ending July 13. This was
above consensus estimates calling for a rise in jobless claims to
Continuing claims fell from 3.116 million for the week ending
July 6 to 2.997 million for the week ending July 13. This
compared to consensus estimates calling for a decline to 2.993
Durable goods orders rose to 4.2 percent in June after
increasing 5.2 percent in May. The consensus only expected orders
to to rise 1.8 percent for the month.
Excluding transportation, durable goods orders were flat in
June compared to a 1 percent increase in May. The consensus
expected durable goods orders to rise 0.3 percent for the
Crude oil futures were modestly higher on the day. NYMEX crude
contracts, the U.S. benchmark, were last up 0.16 percent to
$105.56. Brent crude futures added 0.53 percent to $107.76.
Natural gas was last trading down 1.30 percent on Thursday
afternoon to $3.65.
Precious metals rose on the trading session. COMEX gold
futures were up 0.67 percent to $1,329.00 near the close of
equities. Silver futures had added 0.77 percent and were last
trading at $20.18. Copper gained 0.11 percent to $3.1825 on the
The grains complex was largely lower on the day. Corn futures
lost 0.31 percent while wheat shed 0.61 percent. Movers in soft
commodities included coffee and ethanol. Coffee contracts added
around 3 percent while ethanol fell more than 4 percent.
Facebook Not the Only Reason to Buy Internet
Long-term Treasury prices were near unchanged on Thursday.
Heading into the close, the iShares Barclays 20+ Year Treasury
Bond ETF (NYSE:
) was down 0.07 percent to $107.44.
Yields were as follows on Thursday afternoon. The 2-Year Note
was yielding 0.33 percent while the 5-Year Note yield was 1.38
percent. The 10-Year Note and 30-Year Bond were yielding 2.60
percent and 3.65 percent, respectively.
The U.S. Dollar fell after rising on Wednesday. At last check,
the PowerShares DB US Dollar Index Bullish ETF (NYSE:
), which tracks the performance of the greenback versus a basket
of foreign currencies, was down 0.67 percent to $22.12.
The closely watched EUR/USD pair was up 0.36 percent to
$1.3243. Other movers included the USD/JPY and the AUD/USD, which
were both active on Wednesday as well. The Yen gained 0.61
percent against the greenback while the Aussie Dollar added 0.64
Volatility and Volume
The VIX gave back some of its recent gains on Thursday. At
last check, the widely watched barometer of volatility
expectations was down 1.52 percent.
Volume was light on the session once again. Around 83 million
SPDR S&P 500 ETF (NYSE:
) shares traded hands compared to a 3-month daily average of 136
IMG Tells Draghi to Cut Rates
Facebook soared around 30 percent on Thursday after the
company delivered Q2 financial results that were well ahead of
Wall Street expectations.
) surged around 26 percent after the company unveiled plans to
spin-off its natural gas distribution business.
Medidata Solutions (NASDAQ:
) jumped more than 21 percent after the company's Q2 results came
in above consensus estimates.
TriQuint Semiconductor (NASDAQ:
) soared more than 17 percent and was trading near a 2-year high
after an excellent Q3 earnings report.
A solid earnings report from TripAdvisor (NASDAQ:
) sent that stock up near a new 52-week high. The shares gained
more than 16 percent during Thursday's trading session.
Niwot, Colorado-based footwear retailer Crocs (NASDAQ:
) saw its shares plummet 20 percent after a disappointing
Disappointing Q2 results at Silicon Laboratories (NASDAQ:
) sent shares of the chip-maker down almost 12 percent.
Investors dumped shares of homebuilder Pulte Group (NYSE:
) after the company's Q2 earnings failed to meet expectations.
The stock closed down more than 10 percent.
Angie's List (NASDAQ:
) was hit in the wake of its fiscal Q2 results. The stock closed
down more than 10 percent.
Homebuilder D.R. Horton (NYSE:
) fell almost 9 percent despite beating Wall Street consensus
earnings estimates for the company's fiscal third-quarter.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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