Stocks rose throughout much of
Tuesday's trading session and finished
the day with modest gains. In other markets, the U.S. Dollar rose
while Treasury prices fell sharply on the session.
Top stories on the day included a lawsuit filed by the Justice
Department which challenges the merger between U.S. Airways and
American Airlines' parent company AMR Corp. The news led to a
broad sell-off in airline stocks.
Headlines also focused on the resignation of activist hedge
fund manager Bill Ackman from J.C. Penney's board of directors
after he failed to oust the retailer's current CEO.
The Dow Jones Industrial Average added 31 points, or 0.20
percent, to 15,451.
The S&P 500 rose a little less than 5 points, or 0.28
percent, to 1,694.
The Nasdaq jumped better than 14 points, or 0.39 percent, to
Retail sales rose 0.2 percent in July after rising 0.6 percent
in June. This was in-line with consensus estimates calling for an
increase of 0.2 percent in retail sales for July.
Excluding autos, which fell 1.0 percent, retail sales rose 0.5
percent in July. This was above the consensus estimate calling
for an increase of 0.3 percent.
Total business inventories were unchanged for June after
declining 0.1 percent in May. This compared to consensus
estimates calling for a 0.1 percent increase in business
Carl Icahn reveals large stake in Apple.
oil prices rose moderately
on Tuesday. At last check, NYMEX crude futures were up 0.51
percent to $106.65 while Brent contracts had climbed 0.60 percent
to $109.62. Natural gas fell 0.30 percent on the day to
Precious metals were mixed on the session. Near the close of
equities, COMEX gold futures were down 0.83 percent to $1,323.10.
Silver contracts were last trading up 0.61 percent to $21.47.
Copper added 0.36 percent on the day to $3.3150.
Both corn and wheat traded lower on Tuesday. At last check,
corn futures were down 3.61 percent while wheat lost a little
better than 1 percent. Movers in soft commodities included coffee
and cocoa. Coffee futures lost better than 2 percent on the
session while cocoa was trading down 1.64 percent.
Long-term Treasury prices fell sharply during Tuesday's
trading session. Heading into the closing bell, the iShares
Barclays 20+ Year Treasury Bond ETF (NYSE:
) was down 1.44 percent to $105.00. Yields rose as prices fell on
Treasury yields were as follows on Tuesday afternoon: The
2-Year Note yield was 0.33 percent while the yield on the 5-Year
Note was 1.48 percent. The 10-Year Note and 30-Year Bond were
yielding 2.71 percent and 3.75 percent, respectively.
The U.S. Dollar rose on the session. 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 0.48 percent to $22.09.
closely watched EUR/USD pair was down
0.38 percent to $1.3260. Other movers included the USD/JPY, which
rose 1.60 percent, and the AUD/USD, which fell 0.60 percent.
Volatility and Volume
The CBOE Volatility Index moved lower again on Tuesday. At
last check, the widely watched barometer of volatility
expectations was down a little less than 4 percent to 12.32.
Volume remained light on Tuesday. Around 67 million SPDR
S&P 500 ETF (NYSE:
) shares traded hands compared to a 3-month daily average of 133
The top financial tweets from Tuesday!
) surged almost 13 percent on Tuesday on reports that Baidu
) may be interested in the company's Nuomi unit.
Jos. A. Bank (NASDAQ:
) jumped almost 13 percent on the day after BeaconLight Capital
blasted the board and management in an open letter. The firm
wrote that "with the simple changes outlined" in its letter, "we
believe that the stock should be worth $70 per share even at a
discounted multiple to its peers."
Ubiquiti Networks (NASDAQ:
) jumped nearly 9 percent near the close. The day's gains added
to a furious rally in the name over the last week.
Universal Display (NASDAQ:
) on Tuesday. The Wall Street Journal reported that OLED display
makers are set to benefit as "more products sporting the
next-generation displays hit the market."
Digital Generation (NASDAQ:
) surged almost 23 percent on the day after the company
-advertising delivery business to Extreme Reach for $485 million
Shares of Ply Gem Holdings (NYSE:
) plunged more than 19 percent on the day after the company
released disappointing earnings results for the fiscal
Orbitz Worldwide (NYSE:
) fell around 13 percent after the company announced that a major
institutional shareholder sold 8.1 million of its 24.6 million
shares in Orbitz stock.
A lawsuit brought by the Justice Department to between
American Airlines' parent company, AMR Corp. (OTC:
) and US Airways Group (NYSE:
) sent those two stocks skidding on Tuesday. AMR fell almost 46
percent while US Airways lost 13 percent. Other stocks across the
industry also plunged as investors feared that the lawsuit would
trigger renewed competitive pressures for airlines.
) plunged more than 10 percent after the company released its
fiscal second-quarter earnings results after the closing bell on
J.C. Penney (NYSE:
) lost around 4 percent after hedge fund manager Bill Ackman
resigned from the company's board of directors. Ackman has called
for the replacement of CEO Mike Ullman in recent days, a proposal
that was resisted by other board members.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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