Welcome To The 300 Club HUB On AGORACOM

We may not make much money, but we sure have a lot of fun!

Free
Message: Markets Today .....
Reply New Message
Prev Message Back To Forum Threaded View Next Message
What Happened in the Markets Today…
Well-received numbers from Dell (NASDAQ:DELL), of more than usual significance in light of Hewlett-Packard’s (NYSE:HPQ) just released disappointing results, joined up with a rebound in commodities to send equities higher early Wednesday. After traders digested internals of FOMC meeting minutes released mid-afternoon, shares moved higher into the close. VIX “fear factor” index quieted to 16.23, down 7.5% as advancers outran declining shares by almost four-to-one.

This time around the vote was unanimous as the three benchmark indices posted solid gains. The DJIA rose 81 points for a 0.7% advance to 12,560. The S&P500 climbed 0.9% to 1341. The NASDAQ came out from under the cloud of its foundering tech components with a 1.1% jump to 2815 as technology shares rebounded.

The DJIA’s climb was fed by a 3.1% rise in Caterpillar (NYSE:CAT), recently suffering from global growth concerns and the US dollar’s gains. Chevron (NYSE:CVX) and ExxonMobil (NYSE:XOM) advanced 2.4% and 1.7%, respectively, benefitting from the jump in crude prices. Alcoa (NYSE:AA) shares gained 1.5% as basic material sector shares rose.

Only seven of the blue chips declined, with Hewlett-Packard (NYSE:HPQ) topping the list with a 1.1% drop on a brokerage downgrade from JP Morgan (NYSE:JPM) following the PC manufacturer’s weak interims. Bank of America (NYSE:BAC) shares fell 0.9%; the company reported a small rise in April credit card defaults. Wal-Mart (NYSE:WMT) shares dropped 0.7% as investors remained concerned that higher gasoline prices and food costs will weigh on purchases. Rival Target (NYSE:TGT) shares were down 1.6% after the company warned that current quarter and full-year numbers may miss Street estimates as consumers grow increasingly cautious.

A rebound in commodities prices set off gains among the energy and material sectors. Crude prices recaptured $100 per barrel, up $3.32 at $100.23, its highest since May 10, after the Department of Energy’s weekly post of US stockpiles showed a surprise drawdown. Gold for June delivery rose $15.80 to settle at $1495.80. The PHLX oil service index rose 2.6%. The US dollar ended the day fractionally higher at 75.427.

The late-session release of FMC meeting minutes provided some detailing of likely exit strategies when conditions warrant a more dovish stance. Most likely the first step would be ceasing reinvestments from the sale of mortgage-backed securities, followed by interest rate hikes with timing dependent on inflation, and finally ending with the sale of Fed assets.

Among the latest earnings reports, Limited Brands (NYSE:LTD) reported first quarter adjusted earnings of $0.40, a one-cent beat, that topped estimates of $0.39 on inline revenues of $2.22 billion. Same-store-sales jumped 15%. The firm lifted fiscal 2011 earnings guidance to $2.25-$2.35 from $2.15-$2.35; average estimates were $2.44.

The Hershey Company (NYSE:HSY) shares fell 2.8% on news its President and CEO is accepting a position elsewhere.

LinkedIn’s IPO priced at $45 this evening, at the top of a lifted price range. Tomorrow the shares will start trading on the NYSE with the symbol LNKD.

Eastman Kodak (NYSE:EK) shares advanced 15.4% on reports of heavy insider buying from CEO Perez and other executives.
1 Recommendations
Reply New Message
Prev Message Back To Forum Threaded View Next Message
Share
Share
New Message
Please login to post a reply