Markets

Stock Market News For May 11, 2018

Markets closed sharply higher on Thursday, as weaker-than-expected inflation data eased fears of faster interest rate hikes this year. The solid gains were led by a rally in tech stocks, with shares of Apple closing at a record high. Also, energy stocks continued to perform well. This saw all three major indexes ending the day in positive territory.

The Dow Jones Industrial Average (DJI) rose 0.8%, to close at 24,739.53, registering its sixth straight day of gains. The S&P 500 increased 0.9% to close at 2,723.07. The Nasdaq Composite Index closed at 7,404.97, increasing 0.9%. The Cboe Volatility Index (VIX), dropped 2.6% to 13.10. A total of 6.7 billion shares were traded on Wednesday, higher than the last 20-session average of 6.6 billion shares. Advancers outnumbered decliners on the NYSE by a 2.57-to-1 ratio. On Nasdaq, a 1.65-to-1 ratio favored advancing issues.

How did the Benchmark Perform?

The Dow gained 196.99 points, registering its longest winning stretch in more than two months. United Health and Exxon Mobil led the rally in the 20-stock exchange. The tech-heavy Nasdaq gained 65.07 points, registering its fifth straight day of gains, the best longest stretch since February.

The S&P 500 gained 25.28 points, with the Technology Select Sector SPDR Fund (XLK) gaining 1.3%. All 11 major S&P 500 sectors ended the day in positive territory. Shares of Apple Inc. AAPL , Facebook, Inc. FB , Amazon.com, Inc. AMZN and Alphabet, Inc. GOOGL all rallied on Thursday. Amazon sports a Zacks Rank #1 (Strong Buy). You can see  the complete list of today's Zacks #1 Rank stocks here.

Tech Stocks Rally

Tech stocks once again drove markets on Thursday, led by Apple. The iPhone maker last week shared plans of a $100 billion buyback plan, followed by an announcement by celebrity investor Warren Buffett's Berkshire Hathaway BRK.B that it had bought 70 million shares of Apple in the first quarter. This saw shares of Apple rising.

The bullish sentiment among investors continued on Thursday, which saw the company's shares further rising. Shares of Apple increased 1.4% to close at a record high of $190.04. In fact, Apple is just 7% away from becoming the first company to have a market capitalization of $1 trillion. 

Weak Inflation Data

The Labor Department said that consumer price index (CPI) increased 0.2% in April compared to expectations of 0.3%. Moreover, core CPI increased, which excludes food and energy components increased 0.1% in April, slower than February and March. This somewhat erased fear of faster interest rate hikes by the Fed than being expected by markets.

Oil Prices on the Rise

Oil prices rallied on Wednesday in the wake of United States' decision to exit the Iran nuclear deal. The rally somewhat stabilized on Thursday after Iran's Oil Minister Bijan Zanganeh said that nothing significant will happen to oil exports as a result of the sanctions. However, oil prices once again perked up at the end of the session to end the day higher. Notably, oil prices are at a three-year high. This saw a rally in energy stocks once again. Energy Select Sector SPDR Fund (XLE) gained 0.8%. WTI Crude Oil increased 0.3% to $71.36 a barrel, while Brent Crude Oil rose 0.3% to $77.47 per barrel.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Amazon.com, Inc. (AMZN): Free Stock Analysis Report

Facebook, Inc. (FB): Free Stock Analysis Report

Alphabet Inc. (GOOGL): Free Stock Analysis Report

Apple Inc. (AAPL): Free Stock Analysis Report

Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BRK.B AMZN FB GOOGL AAPL

Other Topics

US Markets

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More