|Back to main|
The Bears Get Smashed as the S&P Soars Past 1600
5/3/2013 4:15:00 PM
The bears got slammed on Friday as the
(INDEXSP:.INX) soared past the key 1600 level following a
better-than-expected jobs report.
We also received the April ISM Services report today, which disappointed slightly at 53.1.
On the flip side, we saw sharp falls in safety plays, with utility and health care stocks (the two best-performing sectors of 2013) being notable underperformers. There was also a sharp increase in US Treasury yields as bond prices fell.
Somewhat unusually, high-yield bonds were flat-to-up on a price basis today. This took some traders by surprise; when considering the sharp increase in yields, the conventional wisdom would imply at least a modest decline in the high-yield market. This particular sector has been on a tear as of late, and today's move, while not impressive on a nominal basis, represents an extension in momentum for a seemingly overheated sector.
In earnings news, we saw better-than-expected numbers from Automatic Data Processing ( ADP ), Spectra Energy ( SE ), and Moody's ( MCO ), and misses from WellCare Health Plans ( WCG ), Duke Energy ( DUK ), and Buckeye Partners (BPL).
Overall though, as noted above, earnings season has not been terribly impressive and we didn't see anything to change that view.
Tomorrow's Financial Outlook
There are no economic data releases on the calendar for Monday.
Earnings season will continue, however, with notable reports coming
(TSN) before the open, and
Plains All American Pipeline
(EOG) after the close.