Daily Market Recap

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Same pattern in the markets today. Slow start with a steady build throughout the day and a positive close. The S&P 500 tacked on another 0.44% today and the Dow rose by 0.46%.

Some pointed to bullish comments from hedge fund titan David Tepper as a catalyst in late day trading. Comments made by Draghi in Europe led to some buying in the final hours of trading. His comments were taken to mean that the Europeans will do whatever it takes to keep the economies of Europe going. There were also more positive comments from Washington regarding the extension of the debt ceiling. The Bank of Japan also announced essentially endless quantitative easing today.

Commodities were mostly higher with precious metals, copper and crude oil trading higher. Gold and silver also both finished the day higher. Silver is now up more than 5% for the month.

Existing home sales data for December slightly disappointed. Sales declined by a seasonally adjusted annual rate of 1%. But, the longer term trend remains intact: up 23% over the past three months and 28% over the past six months. 

Financials rebounded from profit selling last week. Strong earnings from insurance stocks and a rotation back into banks helped the sector. Regions Financial and Travelers both responded well to earnings announcements. Buyers came back into names like Bank of America and State Street.

Industrials kept pace with the market today. Early cycle names like 3M, Danaher and Emerson outpaced the market after Emerson reported better than expected earnings.

Transports continued their surge higher. Truckers, parcels, airlines and the rails all outperformed today. Union Pacific continues to lead the rail space. Strong earnings after the close from Norfolk Southern will influence the rail stocks tomorrow.

Materials were one of the best groups in the market today. Metals and chemicals performed well. Base metals performed well today after Freeport McMoran reported earnings. Solid earnings from DuPont helped the chemical space.

Technology will be in the news tomorrow. Bellwether IBM reported earnings well in excess of analyst expectations after the close today. Apple will report earnings after the close tomorrow.

Source: PFS Group

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