Benchmarks finished mixed following lukewarm corporate results
and discouraging economic data. Meanwhile, members of the Federal
Reserve will meet on Tuesday and Wednesday to decide whether or
not the bond-buying program should be continued at its prevailing
pace, in light of weaker-than-expected growth. Among the top ten
S&P 500 industry groups, materials stocks were the biggest
losers while the utilities sector was the only gainer.
The Dow Jones Industrial Average (DJI) increased 0.1% to close
the day at 14,712.55. The S&P 500 lost 0.2% to finish
Friday's trading session at 1,582.24. The tech-laden Nasdaq
Composite Index decreased 0.3% to end at 3,279.26. The fear-gauge
CBOE Volatility Index (VIX) lost 0.1% to settle at 13.61.
Consolidated volumes on the New York Stock Exchange, American
Stock Exchange and Nasdaq were roughly 5.7 billion shares, well
below 2012's average of 6.48 billion shares. Declining stocks
outnumbered the advancers. For the 39% that advanced, 58%
Last week, the Dow Jones, the S&P 500 and the Nasdaq added
1.1%, 1.7% and 2.3%, respectively. On Friday, the major indices
slipped into the red after the U.S. Department of Commerce
reported Gross Domestic Product (GDP) for first quarter 2013 at
2.5%, below the consensus estimate of 3.0%. This quarter, unlike
the previous quarter, has witnessed a mixed bunch of economic
reports which ultimately resulted in weaker-than-expected GDP.
Lower employment numbers and retail sales as well as weak
manufacturing growth are all reflective of lower GDP.
Apart from GDP, a series of important reports were also
released by the U.S. Department of Commerce, such as, exports,
imports and disposable personal income to name a few. Real
exports of goods and services increased 2.9% in comparison to a
decrease of 2.8% in the previous quarter. Real import of goods
and services increased 5.4%, up from a decrease of 4.4% in the
previous quarter. Personal disposable income decreased 3.2% in
the first quarter versus an increase of 7.9% in the fourth
quarter. This data indicates a sharp decrease in personal income
accompanied by an increase in the government social
On the earnings front, shares of homebuilder major, D.R.
Horton, Inc. (NYSE:
) surged 8.7% after its earnings beat the Street's estimates. The
company reported earnings per share of 13 cents a share in
comparison with previous year's earnings of 9 cents a share and
Street's estimates of 4 cents a share.
Shares of energy major, Chevron Corporation (NYSE:
) increased 1.3% after its earnings beat estimates. The company
reported revenue at $56.82 billion, lower than the year-ago
revenue figure of $60.71 billion and well below the Street's
estimate of $67.73 billion. However, the company reported
earnings at $3.18 a share, well above estimates of $3.05 a share.
Revenues of the company were hit by volatile crude prices and
refinery problems in California.
Of the top ten S&P 500 industry groups, utilities stocks
were the only gainer. The Utilities SPDR (XLU) increased 0.1%.
Stocks such as Dominion Resources, Inc. (NYSE:
), TECO Energy, Inc. (NYSE:
), Sempra Energy (NYSE:
), NextEra Energy, Inc. (NYSE:
) and Exelon Corporation (NYSE:
) gained 0.4%, 0.4%, 0.3%, 0.1% and 0.4%, respectively.
Of the top ten S&P 500 industry groups, materials stocks
were the biggest losers. The Materials Select Sector SPDR (XLB)
lost 1.4%. Stocks such as Monsanto Company (NYSE:
), the Dow Chemical Company (NYSE:
), E I Du Pont De Nemours And Co (NYSE:
), FMC Corp (NYSE:
) and Praxair, Inc. (NYSE:
) lost 1.2%, 1.6%, 0.7%, 1.3% and 0.1%, respectively.
CHEVRON CORP (CVX): Free Stock Analysis
DOMINION RES VA (D): Free Stock Analysis
DU PONT (EI) DE (DD): Free Stock Analysis
D R HORTON INC (DHI): Free Stock Analysis
DOW CHEMICAL (DOW): Free Stock Analysis
EXELON CORP (EXC): Free Stock Analysis Report
FMC CORP (FMC): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis
NEXTERA ENERGY (NEE): Free Stock Analysis
PRAXAIR INC (PX): Free Stock Analysis Report
SEMPRA ENERGY (SRE): Free Stock Analysis
TECO ENERGY (TE): Free Stock Analysis Report
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