YAHOO [BRIEFING.COM]: Stocks
managed to muster a second day of gains in the face of some disappointing
economic data. Leadership was also lacking.
News that initial jobless
claims for the week ended May 14 fell from 438,000 to 409,000, which is less
than the 420,000 that had been widely expected, helped support a positive tone
among morning participants. However, a dose of disappointing data shortly after
the open caused the tone of trade to sour.
The Philadelphia Fed Index for
May came in at 3.9, which is well below the 18.0 that had been widely expected.
The May reading is also down sharply from the 18.5 that had been posted in
April.
Leading Indicators for April
fell by 0.3%. The consensus among economists surveyed by Briefing.com had
called for no change.
Existing home sales fell to an
annualized rate of 5.05 million in April. They had been expected to come in at
a pace of 5.23 million units following the prior month's rate of 5.09 million
units.
A negative response to the
data caused stocks to retreat into the red for a while, but a downturn by the
dollar helped renew support for the equity market. Although the dollar remained
near its session low and closed with a loss of about 0.4%, stocks were unable to
make anything more than a modest gain.
Industrial stocks staged the
strongest advance, but their lack of weight in the overall market limited their
ability to lead. Nonetheless, the industrial sector put together a 0.7% gain.
Social media play LinkedIn
(LNKD 94.25, +49.25) was a top performer in its debut session. The
stock achieved a gain of more than 100%, even though it settled more than 20%
off of its session high.
Retailers had a rough session.
Sears Holding (SHLD 73.86, -1.99), Limited (LTD
40.81, -1.64), Buckle (BKE 41.19, -6.71), Hott Topic (HOTT
7.25, -0.41), and Advance Auto Parts (AAP 63.49, -7.17) all
tumbled in the wake of their latest quarterly reports. Discount retailer Dollar
Tree (DLTR 63.11, +1.78) was one of the few names that moved higher,
thanks mostly to an upside earnings surprise.
This morning's inventory data,
which showed a larger than expected build, sent June natural gas to session
lows at $4.09. It attempted to recoup some of those losses, but after trading
back to pre-inventory levels, it began pulling back towards session lows, where
it closed on the session, lower by 2.3% to $4.10 per MMBtu. July crude oil, the
most actively traded contract, finish lower by 1.7% to $98.93 per barrel. It
dropped to lows, at $98.63, in morning trade as gasoline futures sold off, and
spent the remainder of the session range bound.
It was a relatively quiet
session for precious metals, which both ticked to their respective lows, at
$$1485.80 and $34.52, in mid-morning trade. They spent the remainder of the day
attempting to recoup those losses. June gold finished lower by 0.2% to $1492.20
per ounce, while July silver shed 0.6% to close at $34.90 per ounce.
Advancing Sectors: Industrials +0.7%, Telecom +0.6%,
Consumer Staples +0.5%, Consumer Discretionary +0.3%, Utilities +0.2%,
Financial +0.1%, Tech +0.1%, Materials +0.1%, Energy +0.1%
Declining Sectors: Health Care -0.2%DJ30 +45.14 NASDAQ +8.31
NQ100 +0.3% R2K +0.2% SP400 +0.2% SP500 +2.92 NASDAQ Adv/Vol/Dec 1308/1.76
bln/1294 NYSE Adv/Vol/Dec 1764/871 mln/1210