Benchmarks finished in the green after recovering from a steep
drop triggered by a "bogus" tweet about an explosion at the White
House. Indices began yesterday's trading session on a positive
note propelled higher by robust earnings from major companies but
took a nose dive after the false twitter post. Meanwhile, housing
stocks rallied after a report revealed that news home sales
increased in March. All ten sectors of the S&P 500 industry
groups finished in the green with financials leading the
The Dow Jones Industrial Average (DJI) gained 1.1% to close
the day at 14719.46. The S&P 500 added 1.0% to finish
yesterday's trading session at 1578.78. The tech-laden Nasdaq
Composite Index increased 1.1% to end at 3269.33. The fear-gauge
CBOE Volatility Index (VIX) declined 6.3% to settle at 13.48.
Consolidated volumes on the New York Stock Exchange, American
Stock Exchange and Nasdaq were roughly 6.39 billion shares,
slightly higher than this year daily average of 6.38 billion
shares. Advancing stocks easily outnumbered the decliners. For
the 74% that advanced, 23% declined.
A false Associated Press tweet about two explosions in the
White House rattled markets yesterday. Within a few minutes of
the tweet, the Dow Jones plunged 143 points but recovered most of
its losses very soon. A bogus tweet by hackers showed there has
been an explosion at the White House which injured President
Barack Obama. AP said that its twitter account had been hacked.
Following the fake tweet on President Barack Obama, White House
Press Secretary Jay Carney told reporters that "the President is
Shares of Coach, Inc. (NYSE:
) rocketed 9.8% after the company reported its quarterly results.
Coach reported better-than-expected results boosted by robust
sales in China. The company has also increased its annual
dividend. The company's international sales have moved up 6%.
Sales in China surged 40%. Travelers Companies Inc. (NYSE:
) also reported first-quarter results. The company's earnings
beat the Street's estimates. Following the results, shares of the
company rose 2.1%.
E I Du Pont De Nemours And Co (NYSE:
) posted quarterly results on Tuesday. Du Pont earnings came in
above analysts' estimates. The company's quarterly profits
increased more than double boosted by robust sales of
agricultural products. Du Pont's shares jumped 4.1% after the
results. Shares of Netflix, Inc. (NASDAQ:
) shot up 24.4% after the company reported its quarterly results.
Earnings of the company came in above the Street's estimates.
Strong growth from Netflix's streaming service was primarily
responsible for the jump in earnings.
Meanwhile, the U.S. Census Bureau and the Department of
Housing and Urban Development said new home sales increased in
March. The report stated that sales of new single family houses
increased to 417,000 from the previous month's figure of 411,000.
This was marginally above the consensus estimate of 416,000.
Housing stocks had a good day yesterday and the SPDR S&P
Homebuilders (XHB) gained 2.6%. Stocks such as Lennar Corporation
), KB Home (NYSE:
), PulteGroup, Inc. (NYSE:
), D.R. Horton, Inc. (NYSE:
) and The Ryland Group, Inc. (NYSE:
) jumped 6.9%, 4.2%, 6.0%, 5.3% and 5.2%, respectively.
The financial sector was the biggest gainer among the S&P
500 industry groups and the Financial Select Sector SPDR (XLF)
gained 1.8%. Stocks such as JPMorgan Chase & Co. (NYSE:
), Wells Fargo & Co (NYSE:
), Goldman Sachs Group, Inc. (NYSE:
), PNC Financial Services (NYSE:
), Bank of America Corp (NYSE:
) increased 1.7%, 1.1%, 2.5%, 2.8% and 3.0%, respectively.
BANK OF AMER CP (BAC): Free Stock Analysis
COACH INC (COH): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis
D R HORTON INC (DHI): Free Stock Analysis
GOLDMAN SACHS (GS): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
KB HOME (KBH): Free Stock Analysis Report
LENNAR CORP -A (LEN): Free Stock Analysis
NETFLIX INC (NFLX): Free Stock Analysis
PULTE GROUP ONC (PHM): Free Stock Analysis
PNC FINL SVC CP (PNC): Free Stock Analysis
RYLAND GRP INC (RYL): Free Stock Analysis
TRAVELERS COS (TRV): Free Stock Analysis
WELLS FARGO-NEW (WFC): Free Stock Analysis
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