On Tuesday, stocks continued to push towards year-to-date
highs last seen in late May.
The S&P 500 breached the 1,650 level to the upside and the
Dow closed around 300 points above the 15,000 level. After an
early sell-off, the major averages rose throughout much of the
afternoon and recorded their fourth straight day of gains.
Commodities and the U.S. Dollar also rose on the day, while
long-term Treasury prices were largely unchanged. Alcoa (NYSE:
) kicked off earnings season on Monday, and the coming weeks will
be dominated by the release of quarterly results from hundreds of
The Dow Jones Industrial Average climbed around 76 points, or
0.50 percent, to close at 15,300.
The S&P 500 added 12 points, or 0.72 percent, to
The Nasdaq rose 19 points, or 0.56 percent, to close at
Crude oil continued its rally on Tuesday, with prices of WTI
crude futures trading on NYMEX, the U.S. benchmark, holding
firmly above $100. WTI crude oil climbed 0.58 percent to $103.74.
Brent crude contracts added 0.30 percent to $107.75. Natural gas
was last trading down more than 2 percent on the session to
Precious metals followed stocks higher on Tuesday. At last
check, COMEX gold futures were up 0.75 percent to $1,244.20.
Silver contracts had added 0.64 percent to $19.16. Copper
contracts fell on the session and were last down 1.15 percent to
In the grains complex, both corn and wheat rose sharply. The
only product that was lower on the day was canola. Corn was last
trading higher by 4.25 percent while wheat had climbed 2.19
In soft commodities, movers included lumber and orange juice
concentrate, although volatility was limited overall. Rubber
contracts fell around 2 percent while orange juice was up 1.22
percent at last check.
Long-term Treasury prices were essentially unchanged on the
day. At last check, the iShares Barclays 20+ Year Treasury Bond
) was up 0.01 percent to $107.30. Treasuries have been trying to
find a bottom since beginning a sharp fall at the beginning of
Treasury yields were as follows late on Tuesday: The 2-Year
Note was yielding 0.36 percent while the 5-Year Note yield was
sitting at 1.49 percent after rising forty basis points over the
last month alone. The 10-Year Note yield was 2.63 percent and the
30-Year Bond was yielding 3.65 percent.
The U.S. Dollar rose on Tuesday. 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 0.44 percent to $22.94.
The closely watched EUR/USD pair was last trading at $1.2787,
a loss of 0.68 percent on the day. Other movers on the session
included the GBP/USD, which fell 0.54 percent and the AUD/USD,
which rose 0.54 percent.
Volatility and Volume
The VIX continued to fall on Tuesday as investors are becoming
more comfortable with the current market environment. The widely
watched barometer of volatility expectations fell around 3
percent to 14.32.
Volume was lighter than normal on the session as trading
activity has died down in recent weeks. Around 101 million SPDR
S&P 500 ETF (NYSE:
) shares traded hands on the session compared to a 3-month daily
average of 144 million.
Shares of Prestige Brands (NYSE:
) were up better than 10 percent on Tuesday after the company
announced the acquisition of Australian company Care
) jumped better than 8 percent on the session. The biotech firm
presented at the 8th Annual JMP Securities 2013 Healthcare
Conference in New York on Tuesday.
Freescale Semiconductor (NYSE:
) rose almost 9 percent on Tuesday after the stock was upgraded
to Overweight at Piper Jaffray.
Shares of Epizyme (NASDAQ:
) rose almost 7 percent on Tuesday amid widespread strength in
the biotech sector. The company was also added to the Russell
2000 at the beginning of the month.
Health Management Associates (NYSE:
) jumped more than 8 percent in intra-day trading after reports
came out that the company is a takeover target. Community Health
) is among the the reported prospective suitors and that stock
jumped better than 4 percent.
YRC Worldwide (NASDAQ:
) climbed almost 14 percent on Tuesday. A bullish Seeking Alpha
article may have helped catalyze the move in the name.
) plunged more than 20 percent on Tuesday after the company cut
its Q2 revenue outlook. Among the firms that downgraded the
shares in the wake of the news were Stifel Nicolaus and Deutsche
Intuitive Surgical (NASDAQ:
) lost around 16 percent on the day after providing a
disappointing Q2 sales forecast. A number of Wall Street brokers
also downgraded the stock, including Raymond James.
Synchronoss Technologies (NASDAQ:
) fell almost 12 percent after the stock was downgraded to Sell
at Goldman Sachs.
Allegiant Travel (NASDAQ:
) fell around 7 percent after the company released preliminary
passenger traffic results for June 2013. "Revenue was weaker than
expected," said Andrew Levy, the company's president.
NGL Energy Partners (NYSE:
) fell more than 7 percent after announcing a secondary offering
of common units.
) lost around 7.50 percent on the session after the stock was
downgraded to Underweight at Barclays. The firm said that the
company's fiscal 2014 earnings are at risk after the loss of the
PharMerica's two largest customers.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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