Benchmarks added on gains yesterday riding on upbeat investor
sentiment following a bunch of encouraging economic numbers. The
Dow Jones closed at another record high while the S&P 500 is
whiskers away from its all-time high. Meanwhile, the CBOE
Volatility Index (VIX) declined to the lowest level in more than
six years. All top ten S&P 500 industry groups ended in the
green among which energy stocks were the biggest gainers.
The Dow Jones Industrial Average (DJI) gained 0.6% to close
the day at 14,539.14. The S&P 500 rose 0.6% to finish
yesterday's trading session at 1,563.23. The tech-laden Nasdaq
Composite Index advanced 0.4% to end at 3,258.93. The fear-gauge
CBOE Volatility Index (VIX) lost 4.5% to settle at 11.30.
Consolidated volumes on the New York Stock Exchange, American
Stock Exchange and Nasdaq were roughly 6 billion shares, below
the daily average of 6.48 billion shares. Advancing stocks
outnumbered the decliners. For the 66% that advanced, 31%
declined.
The Dow continued its rally for the 10
th
day in a row while the S&P 500 closed just below its all-time
high. The Dow and the S&P 500 have gained 11% and 9.6%
respectively. The S&P 500 closed just two points shy of its
all-time high. Meanwhile, the Bloomberg Consumer Comfort Index
grew to -31.6, narrower than -32.4 in the previous week. This
data came on the heels of positive investor sentiment. Improving
job scenario, high consumer spending, gains in housing market and
the Fed's stimulus policies boosted investor sentiment.
The major indices advanced following strong initial claims
data. According to the U.S. Department of Labor, the number of
American citizens filing for unemployment claims decreased by
10,000 to 332,000. This data is well below the consensus estimate
of 350,000. For the third week in a row the initial claims data
decreased indicating an improving job market scenario. The
four-week average also decreased to its lowest level in almost
five years. Meanwhile, according to the U.S. Department of Labor,
the Producer Price Index (PPI), for finished goods, was 0.7% in
February, up from 0.2% in January. The PPI index was in line with
the consensus estimate
According to the data released by the U.S. Department of
Commerce, the preliminary estimate of the U.S. current account
deficit in the fourth quarter, which includes a combined balance
of trade in goods and services, income and net unilateral
transfers came down to $110.4 billion from the previous month's
revised figure of $112.4 billion. The deficit on goods decreased
to $180.6 billion while the surplus on services and income
increased to $52.2 billion and $52.4 billion, respectively.
On the earnings front, shares of The Men's Wearhouse, Inc.
(NYSE:
MW
) jumped almost 19% after it registered low quarterly loss. Rise
in sales offset the company's quarterly loss. Total sales
increased 8.2% in the fourth quarter and 4.4% in the fiscal
year.
Energy stocks were the biggest gainers among the top ten
S&P 500 industry groups. The Energy Select Sector SPDR (ETF)
(XLE) increased 1.3%. Stocks such as Exxon Mobil Corporation
(NYSE:
XOM
), Chevron Corporation (NYSE:
CVX
), Hess Corp. (NYSE:
HES
), Occidental Petroleum Corporation (NYSE:
OXY
) and Marathon Oil Corporation (NYSE:
MRO
) gained 0.6%, 1.4%, 0.4%, 1.3% and 1.1%, respectively.
Technology stocks also had a good run in yesterday's trading
session. The Technology SPDR (ETF) (XLK) gained 0.7%. Stocks such
as Apple Inc. (NASDAQ:
AAPL
), International Business Machines Corp. (NYSE:
IBM
), Microsoft Corporation (NASDAQ:
MSFT
), AT&T Inc. (NYSE:
T
) and Verizon Communications Inc. (NYSE:
VZ
) rose 1.0%, 1.8%, 0.8%, 0.7% and 1.1%, respectively.
APPLE INC (AAPL): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis
Report
HESS CORP (HES): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis
Report
MARATHON OIL CP (MRO): Free Stock Analysis
Report
MICROSOFT CORP (MSFT): Free Stock Analysis
Report
MENS WEARHOUSE (MW): Free Stock Analysis
Report
OCCIDENTAL PET (OXY): Free Stock Analysis
Report
AT&T INC (T): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis
Report
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