Benchmarks finished in the green following a sharp decline in
the previous week propelled by gains in the energy and the
materials sectors. In the previous week, the Dow Jones and the
S&P 500 had witnessed their worst drop since November due to
discouraging international and national reports. Meanwhile,
existing home sales declined in the month of March.
The Dow Jones Industrial Average (DJI) gained 0.1% to close
the day at 14,567.17. The S&P 500 added 0.5% to finish
yesterday's trading session at 1,562.50. The tech-laden Nasdaq
Composite Index increased 0.9% to end at 3,233.55. The fear-gauge
CBOE Volatility Index (VIX) declined 3.9% to settle at 14.39.
Consolidated volumes on the New York Stock Exchange, American
Stock Exchange and Nasdaq were roughly 5.6 billion shares,
significantly higher than this year daily average of 6.4 billion
shares. Advancing stocks outnumbered the decliners. For the 58%
that advanced, 38% declined.
Heavy machinery maker Caterpillar Inc. (NYSE:
) reported first-quarter results on Monday. The company's
earnings came in below the Street's estimates. Caterpillar's
earnings tumbled 45% in the first-quarter from the year ago
period due to a slowdown in the mining business. The company also
lowered its 2013 revenue and earnings outlook. Sales of
Caterpillar branded mining machines including trucks and
bulldozers will decrease by half in 2013. Despite a dismal
outlook, shares gained 2.8% after the company said a slowdown in
spending by mining companies was temporary.
Shares of Halliburton Company (NYSE:
) increased by 5.6% after the company announced first-quarter
results. The company's earnings and revenue both beat the
Street's estimates. Halliburton quarterly results have now beaten
the Street's estimates for the nineteen quarter in a row. Thomson
Reuters has revised its growth estimate for earnings of S&P
500 companies to 2.2% from the beginning of the month estimate of
1.5%. Technology bellwether Apple Inc. (NASDAQ:
) is scheduled to report its quarterly results on Tuesday.
According to the National Association of Realtors, existing
home sales declined in March. The report revealed that existing
home sales decreased 0.6% in March to a seasonally adjusted
annual rate of 4.92 million from February's revised figure of
4.95 million. This was contrary to the consensus estimate of an
increase to 5.02 million. NAR chief economist, Lawrence Yun said
demand has exceeded supply. He also said: "Buyer traffic is 25
percent above a year ago when we were already seeing notable
gains in shopping activity."
According to CNBC, activist investor ValueAct Capital has
acquired a $2 billion stake Microsoft Corporation (NASDAQ:
). The company's shares climbed 3.6% following this development.
Microsoft's share price has increased 16% in 2013 till
The energy sector had a good run yesterday and was the biggest
gainer among the S&P 500 industry groups. The Energy Select
Sector SPDR (XLE) gained 1.1%. Stocks such as Exxon Mobil
), Chevron Corporation (NYSE:
), Suncor Energy Inc. (USA) (NYSE:
), Marathon Oil Corporation (NYSE:
) and Anadarko Petroleum Corporation (NYSE:
) increased 0.7%, 0.6%, 1.8%, 1.8% and 1.3%, respectively.
The utilities sector was the only loser among the S&P 500
industry groups and the Utilities SPDR (XLU) lost 0.1%. Stocks
such as Duke Energy Corp (NYSE:
), Dominion Resources, Inc. (NYSE:
), NextEra Energy, Inc. (NYSE:
), The Southern Company (NYSE:
) and PG&E Corporation (NYSE:
) lost 0.1%, 0.2%, 0.2%, 0.1% and 1.8%, respectively.
APPLE INC (AAPL): Free Stock Analysis Report
ANADARKO PETROL (APC): Free Stock Analysis
CATERPILLAR INC (CAT): Free Stock Analysis
CHEVRON CORP (CVX): Free Stock Analysis
DOMINION RES VA (D): Free Stock Analysis
DUKE ENERGY CP (DUK): Free Stock Analysis
HALLIBURTON CO (HAL): Free Stock Analysis
MARATHON OIL CP (MRO): Free Stock Analysis
MICROSOFT CORP (MSFT): Free Stock Analysis
NEXTERA ENERGY (NEE): Free Stock Analysis
PG&E CORP (PCG): Free Stock Analysis
SOUTHN COMPANY (SO): Free Stock Analysis
SUNCOR ENERGY (SU): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
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