Major indices finished at record highs following
better-than-expected economic reports from Germany and corporate
results. Encouraging reports from China also boosted investor
sentiment. Of the top ten S&P 500 industry groups, utilities
stocks gained the most while technology stocks were the only
The Dow Jones Industrial Average (DJI) increased 0.6% to close
the day at 15,056.20. The S&P 500 gained 0.5% to finish
yesterday's trading session at 1,625.96. The tech-laden Nasdaq
Composite Index rose 0.1% to end at 3,396.63. The fear-gauge CBOE
Volatility Index (VIX) increased 0.2% to settle at 12.83.
Consolidated volumes on the New York Stock Exchange, American
Stock Exchange and Nasdaq were roughly 5.8 billion shares, well
below 2013's average of 6.36 billion shares. Advancing stocks
outnumbered the decliners. For the 70% that advanced, 27%
The Dow Jones and the S&P 500 closed at record highs
yesterday. The Dow moved past the 15000-mark and closed at
15,056.20 while the S&P 500 closed at an all-time high for
the fourth consecutive day. Yesterday's trading session saw
stocks chalking up profits as Germany posted better-than-expected
industrial orders in March. German industrial orders for March
increased to 2.2% compared to estimates of a -0.5%. Foreign
orders increased 2.7% on the back of demand from Euro Zone
countries, orders of which increased by 4.2%, while domestic
orders increased 1.8%. Investors will closely watch German growth
numbers for the first quarter scheduled for release next
"German industry seems to be overcoming its weak phase slowly.
The significant increase in orders brings the quarter as a whole
to a slight plus of 0.4 percent," added the ministry.
Encouraging economic data from the world's second largest
economy, China, added to investor optimism. China's exports and
imports surged 14.7% and 16.8%, respectively, compared to market
expectations of 10.3% and 13.9%, respectively. The country's
trade surplus came in at $18.16 billion compared to expectations
of $15.1 billion. On a sequential basis, exports inched up 2.7%
while the imports dropped 7.7%.
These developments follow weak figures released by South Korea
and Taiwan, indicating sluggish global demand. In spite of China
registering better-than-expected export data, concerns over a
global recovery continue to haunt investors as the country had
reported weak manufacturing growth and employment figures
On the domestic front, according to the data released by the
Federal Reserve System, consumer credit rose 3.5%. Revolving
credit decreased marginally while nonrevolving credit came in at
8% compared to the consensus estimate of 16%.
On the earnings front, shares of Fossil Inc. (NASDAQ:
) gained about 9% after earnings beat the Street's expectations.
Net sales of the company increased 15% while earnings of the
company increased 30% to $1.21 a share. The company performed
well in countries like North America, Europe and Asia. Its
Spanish joint venture also contributed to overall profits.
Of the top ten S&P 500 industry groups, utilities stocks
gained the most. The Utilities SPDR (XLU) gained about 1.0%.
Shares such as Duke Energy Corp (NYSE:
), Dominion Resources, Inc. (NYSE:
), Xcel Energy Inc. (NYSE:
), American Electric Power Company, Inc. (NYSE:
) and PPL Corporation (NYSE:
) rose 1.1%, 0.8%, 1.6%, 1.2% and 1.3%, respectively.
Technology shares were the only loser. The Technology SPDR
(XLK) fell marginally, by 0.03%. Shares such as Apple Inc.
), Google Inc. (NASDAQ:
), Facebook Inc. (NASDAQ:
), Microsoft Corporation (NASDAQ:
) and Cisco Systems, Inc. (NASDAQ:
) dropped 0.5%, 0.5%, 2.5%, 1.3% and 2.1%, respectively.
APPLE INC (AAPL): Free Stock Analysis Report
AMER ELEC PWR (AEP): Free Stock Analysis
CISCO SYSTEMS (CSCO): Free Stock Analysis
DOMINION RES VA (D): Free Stock Analysis
DUKE ENERGY CP (DUK): Free Stock Analysis
FACEBOOK INC-A (FB): Free Stock Analysis
FOSSIL INC (FOSL): Free Stock Analysis Report
GOOGLE INC-CL A (GOOG): Free Stock Analysis
MICROSOFT CORP (MSFT): Free Stock Analysis
PPL CORP (PPL): Free Stock Analysis Report
XCEL ENERGY INC (XEL): Free Stock Analysis
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