The Dow and S&P 500 hit new highs on Friday, notching up
their sixth consecutive week of gains riding high on Federal
Reserve chair nominee Janet Yellen's recent comments supporting
the Central Bank's stimulus program. Shares of Exxom Mobil Corp.
moved higher after Warren Buffett's Berkshire Hathaway Inc.
revealed that it had acquired an additional stake worth $3.45
billion in the company on Friday. All S&P 500 sectors
finished in the green, with the materials sector taking the lead.
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis
DU PONT (EI) DE (DD): Free Stock Analysis
DOW CHEMICAL (DOW): Free Stock Analysis
FREEPT MC COP-B (FCX): Free Stock Analysis
MONSANTO CO-NEW (MON): Free Stock Analysis
PRAXAIR INC (PX): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis
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Ahead of Wall Street
The Dow Jones Industrial Average (DJI) gained 0.5% to close the
day at 15,961.70. The S&P 500 added 0.4% to finish Friday's
trading session at 1,798.18. The tech-laden Nasdaq Composite
Index increased 0.3% to end at 3,985.97. The fear-gauge CBOE
Volatility Index (VIX) declined 1.5% to settle at 12.19. Total
volume on the NYSE was 3.3 billion shares. Advancing stocks
outnumbered the decliners. For 63% shares that advanced, 33%
The benchmarks' strong finish on Friday can be largely attributed
to Exxom Mobil Corporation (NYSE:
). Shares of Exxom Mobil increased 2.2% to $95.27 per share after
Warren Buffet's Berkshire Hathaway Inc. (NYSE:BRK.B) announced it
had acquired an additional stake worth $3.45 billion-worth in
Also helping the markets ends in the positive territory was Janet
Yellen's support for the central bank's monetary stimulus
measures. Yellen's recent comments before the Senate Banking
Committee gave indications that the current $85-billion stimulus
program devised to support the economy will continue for some
time. Holding true to her "dovish" stance, Yellen was vocal about
her intentions to support the stimulus program during her
confirmation hearing on Thursday. Yellen's statements assured
markets that the central bank might not reduce its $85 billion of
monthly bond purchases until the very least, till March.
According to the Board of Governors of the Federal Reserve
System, industrial production declined 0.1% in October. This was
in contrast to the consensus estimate of a 0.1% gain and a 0.7%
improvement in September. Manufacturing production gained 0.3% in
October, registering its third consecutive month of gains. The
index for mining dropped 1.6% after having climbed for six
consecutive months, and the output of utilities dropped 1.1%
after having jumped 4.5% in September. Capacity utilization for
the industrial sector declined 0.2% in October to settle at
Separately, the November 2013
Empire State Manufacturing Survey
released by the Federal Reserve Bank of New York indicated that
manufacturing conditions weakened partially for New York
manufacturers. The report shows that the general business
conditions index fell four points to -2.2, its first negative
reading since May. The new orders index entered negative
territory, dropping thirteen points to -5.5. Also, the shipments
index moved below zero with a 14 point drop to -0.5. The prices
paid index dropped by 5 points to 17.1, acting as an indicator of
a deceleration in input price increase. The prices received index
declined to -4.0, signalling that selling prices had declined for
the first time in two years.
Meanwhile, the U.S. Department of Commerce said wholesale
inventories improved 0.4% in September, in line with the
consensus estimate. The inventories sales ratio for September
came in at 1.18, compared to 1.20 a year ago.
Shares of InterCloud Systems Inc. (NASDAQ:
) rose nearly 271% after the cloud-based communications,
computing and consulting service company declared its results.
Third quarter revenues increased to $16.2 million. In the first
three quarters, The Company reported a
increase in third quarter revenue, amounting to $13.2 million,
compared to $3 million the year ago.
The materials sector was the biggest gainer among the S&P 500
industry groups on Friday. The materials SPDR (XLB) gained 0.6%.
Stocks such as Monsanto Company (NYSE:
), E I Du Pont De Nemours And Co (NYSE:
), the Dow Chemical Company (NYSE:
), Freeport-McMoRan Copper & Gold Inc. (NYSE:
), and Praxair, Inc. (NYSE:
) added 0.5%, 0.5%, 0.3%, 1.4%, and 0.9% respectively.