Encouraging factory orders and impressive car sales growth
pushed benchmarks higher initially on Tuesday. However,
indices closed in negative territory later in the day as
investors turned skeptical because of increasing political
turmoil in Egypt. Meanwhile, investors are expecting a
run-of-the-mill jobs report this week. Among the top ten S&P
500 industry groups, energy stocks were the biggest gainers.
Industrial stocks suffered the most.
For a look at the issues facing today's markets, read our
Ahead of Wall Street for July 3
The Dow Jones Industrial Average (DJI) lost 0.3% to close the
day at 14,932.41. The S&P 500 dropped 0.1% to finish
yesterday's trading session at 1,614.08. The tech-laden Nasdaq
Composite Index declined 1.1 points to end at 3,433.40. The
fear-gauge CBOE Volatility Index (VIX) increased 0.4% to settle
at 16.44. Consolidated volumes on the New York Stock Exchange,
American Stock Exchange and Nasdaq were roughly 6.1 billion
shares, lower than 2013's average of 6.4 billion shares.
Declining stocks outnumbered the advancers. For the 60% that
declined, 38% advanced.
Investor attention is now focused on employment numbers due
for release on Friday. Job numbers will probably decide the
direction of market trajectory going forward. Economists predict
job numbers will come in around 155,000 and unemployment will
fall to 7.5% from 7.6%. This report is very important in light of
the volatility the market has experienced last month. The S&P
500 index is still 3% below its all-time high attained on May 21.
The index is still 0.5% below the level it attained on June 22,
when Bernanke said the bond buying program could be slowed by the
end of 2013 and ended completely by mid-2014.
Benchmarks continued posting gains on the second day of the
third quarter but closed in the red following investors concerns
over raging political turmoil in Egypt. Positive car sales and
encouraging factory orders acted as a catalyst during the early
trading session. According to the U.S. Department of Commerce,
factory orders increased 2.1%, above the consensus estimate of
2.0% and previous month's figure of 1.3%. Shipments and unfilled
orders increased 1.0% and 0.8%, respectively.
Another factor which fuelled investor sentiment was robust car
sales figures. Companies like General Motors Company (NYSE:
) and Ford Motor Company (NYSE:
) have exceeded Street's expectations in terms of sales. Chrysler
group's figures were in line with sales estimates. According to
economists, yearly sales are expected to come in at 15.4 million.
Sales for General Motors, Ford and Chrysler increased by 6%, 13%
and 8%, respectively. Toyota experienced the highest growth
numbers among all carmakers, of 14%. Gains from these figures,
however, soon evaporated after investors grew skeptical over the
political situation in Egypt.
Shares of Constellation Brands, Inc. (NYSE:
) declined nearly 3.6% after its sales and earnings missed the
Street's estimates. High restructuring costs are responsible for
the low earnings of the company. The earnings of the company
Among the top ten S&P 500 industry groups energy stocks
were the biggest gainer. The Energy Select Sector SPDR (XLE)
gained 0.3%. Companies such as Chevron Corporation (NYSE:
), Exxon Mobil Corporation (NYSE:
), Hess Corp. (NYSE:
), Suncor Energy Inc. (USA) (NYSE:
) and ConocoPhillips (NYSE:
) gained 0.1%, 0.4%, 0.8%, 0.2% and 0.9%, respectively.
Shares of Industrial stocks suffered the most. Shares of
Industrial Select Sector SPDR (XLI) lost 1.1%. Shares of General
Electric Company (NYSE:
), United Technologies Corporation (NYSE:
), Thermo Fisher Scientific Inc. (NYSE:
), 3M Co (NYSE:
) and Honeywell International Inc. (NYSE:
) lost 1.9%, 1.0%, 1.6%, 0.5% and 3.0%, respectively.
CONOCOPHILLIPS (COP): Free Stock Analysis
CHEVRON CORP (CVX): Free Stock Analysis
FORD MOTOR CO (F): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis
GENERAL MOTORS (GM): Free Stock Analysis
HESS CORP (HES): Free Stock Analysis Report
HONEYWELL INTL (HON): Free Stock Analysis
3M CO (MMM): Free Stock Analysis Report
CONSTELLATN BRD (STZ): Free Stock Analysis
SUNCOR ENERGY (SU): Free Stock Analysis
THERMO FISHER (TMO): Free Stock Analysis
UTD TECHS CORP (UTX): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
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