Closing Market Summary: Nasdaq Leads Stocks Higher
The major averages registered solid gains on Thursday with the S&P 500 climbing 1.1%. The benchmark index settled at a fresh record high of 2121.10 while the Nasdaq Composite (+1.4%) outperformed.
Equity indices spiked out of the gate and spent the rest of the day in a slow drift higher with all ten sectors taking part in the advance. The top-weighted technology sector (+1.7%) followed yesterday's outperformance with another strong showing that kept the group in the lead throughout the session. Large cap names like Apple (AAPL 128.95 +2.94), Google (GOOGL 549.20, +9.71), Microsoft (MSFT 48.72, +1.09), and Facebook (FB 81.37, +2.93) gained between 1.8% and 3.7%, which helped overshadow a 1.0% decline in the shares of Cisco Systems (CSCO 29.05, -0.30) after the company reported a one-cent beat and issued in-line guidance. It is worth noting that Cisco's report triggered a Sterne Agee CRT downgrade to ‘Neutral.'
Meanwhile, high-beta chipmakers could not keep pace with the sector, but the PHLX Semiconductor Index still gained 1.2%, ending ahead of the broader market. However, another high-beta group, biotechnology, contributed to the strength in the Nasdaq. To that point, iShares Nasdaq Biotechnology ETF (IBB 355.59, +4.74) gained 1.4% and climbed above its 50-day moving average (350.53) after struggling with that level since the end of April. In turn, the health care sector (+1.4%) settled among the leaders.
Similar to health care, the countercyclical consumer staples sector (+1.5%) also settled ahead of the S&P 500. Avon Products (AVP 7.07, +0.40) was a notable mover within the group after it was reported that PTG Capital offered $18.75 per share of AVP; however, Avon responded to the report, saying no such offer has been received and that it was unable to verify the existence of PTG Capital. Shares of AVP briefly rallied to their 50-day moving average (8.09), before narrowing their gain to 6.0% by the close.
Overall, five sectors added 1.0% or more while consumer discretionary (+0.4%) and energy (+0.1%) represented the only two laggards of note.
The discretionary sector was weighed down by apparel retailers after Kohl's (KSS 64.62, -9.89) delivered an uninspiring report. The stock fell 13.3% after disappointing comparable store sales and below-consensus revenue overshadowed a bottom-line beat.
Elsewhere, the energy sector lagged amid a pullback in crude oil. WTI crude settled lower by 1.0% at $59.88/bbl. even as the Dollar Index (93.40, -0.21) slipped 0.2%, registering its third consecutive decline.
Today's advance in equities was accompanied by a rallying Treasury market with the 10-yr yield falling five basis points to 2.23%.
Once again, participation was relatively light with roughly 700 million shares changing hands at the NYSE floor.
Economic data included Initial Claims and PPI:
The major averages registered solid gains on Thursday with the S&P 500 climbing 1.1%. The benchmark index settled at a fresh record high of 2121.10 while the Nasdaq Composite (+1.4%) outperformed.
Equity indices spiked out of the gate and spent the rest of the day in a slow drift higher with all ten sectors taking part in the advance. The top-weighted technology sector (+1.7%) followed yesterday's outperformance with another strong showing that kept the group in the lead throughout the session. Large cap names like Apple (AAPL 128.95 +2.94), Google (GOOGL 549.20, +9.71), Microsoft (MSFT 48.72, +1.09), and Facebook (FB 81.37, +2.93) gained between 1.8% and 3.7%, which helped overshadow a 1.0% decline in the shares of Cisco Systems (CSCO 29.05, -0.30) after the company reported a one-cent beat and issued in-line guidance. It is worth noting that Cisco's report triggered a Sterne Agee CRT downgrade to ‘Neutral.'
Meanwhile, high-beta chipmakers could not keep pace with the sector, but the PHLX Semiconductor Index still gained 1.2%, ending ahead of the broader market. However, another high-beta group, biotechnology, contributed to the strength in the Nasdaq. To that point, iShares Nasdaq Biotechnology ETF (IBB 355.59, +4.74) gained 1.4% and climbed above its 50-day moving average (350.53) after struggling with that level since the end of April. In turn, the health care sector (+1.4%) settled among the leaders.
Similar to health care, the countercyclical consumer staples sector (+1.5%) also settled ahead of the S&P 500. Avon Products (AVP 7.07, +0.40) was a notable mover within the group after it was reported that PTG Capital offered $18.75 per share of AVP; however, Avon responded to the report, saying no such offer has been received and that it was unable to verify the existence of PTG Capital. Shares of AVP briefly rallied to their 50-day moving average (8.09), before narrowing their gain to 6.0% by the close.
Overall, five sectors added 1.0% or more while consumer discretionary (+0.4%) and energy (+0.1%) represented the only two laggards of note.
The discretionary sector was weighed down by apparel retailers after Kohl's (KSS 64.62, -9.89) delivered an uninspiring report. The stock fell 13.3% after disappointing comparable store sales and below-consensus revenue overshadowed a bottom-line beat.
Elsewhere, the energy sector lagged amid a pullback in crude oil. WTI crude settled lower by 1.0% at $59.88/bbl. even as the Dollar Index (93.40, -0.21) slipped 0.2%, registering its third consecutive decline.
Today's advance in equities was accompanied by a rallying Treasury market with the 10-yr yield falling five basis points to 2.23%.
Once again, participation was relatively light with roughly 700 million shares changing hands at the NYSE floor.
Economic data included Initial Claims and PPI:
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The initial claims level declined to 264,000 for the week ending May 9 from an unrevised 265,000 while the consensus expected an increase to 275,000
- That was the third consecutive week that the initial claims level remained below 270,000
- The four-week moving average dropped to 271,750 from 279,500, which is the lowest level since April 22, 2000
- The continuing claims level remained at 2.229 mln for the week ending May 2 after a slight upward revision (from 2.228 mln) for the week ending April 25
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After the first increase since October 2014, producer prices resumed their downward trajectory in April with the PPI declining 0.4% in April after increasing 0.2% in March while the consensus expected an increase of 0.2%
- Food prices declined 0.9% in April after declining 0.8% in March. These prices haven't increased on a month-to-month basis since November 2014.
- Excluding food and energy, core PPI declined 0.2% in April after increasing 0.2% in March while the consensus expected an increase of 0.1%
- Nasdaq Composite +6.7% YTD
- Russell 2000 +3.5% YTD
- S&P 500 +3.0% YTD
- Dow Jones Industrial Average +2.4% YTD