Daily Market Recap

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The S&P 500 was higher by 0.63% and the Dow rose by 0.33% to start the week. The S&P 500 is now more than 1% higher from the lows seen Friday after the weak jobs report. Utilities and staples were both higher again today. The utility index hit another new high today.

Coca-Cola was up by more than one percent in the staples space. Homebuilders rebounded from a tough week last week as buyers came in and bought on the dip. Small caps outperformed for the first time in quite some time. Safe havens, healthcare and telecom, underperformed.

There had been an aggressive rotation into safer areas of the market over the past several weeks. Today, more cyclical areas of the market like semiconductors and software were leading areas. 

Financials regained their footing in today’s trading. Some key earnings in the sector come later in the week. The bank index was up more than 1%, with both money-center banks and regionals performing well. Insurance stocks and asset managers outpaced the market also.

Industrials moved higher along with cyclicals. GE moved up on a day they announced the acquisition of Lufkin Industries. This is another step from GE towards expanding their exposure to the oil and gas industry. Defense stocks were laggards today on some analyst downgrades on price in the area.

Rails and airlines moved the transports today. Railroads acted well on reports of added capacity to handle the heavy volume of domestic shale oil. Airlines moved higher after seeing aggressive selling last week.

Energy was in line with the tape. Crude moved higher by 0.75% and natural as was off 1.25%. Drillers and oil service stocks were leaders in the space. Exploration and production companies that focus on gas were up ahead of the market also.

Healthcare had one of its few bad days of the year. Johnson & Johnson received an analyst downgrade on price today. Other pharmaceutical stocks fell in sympathy. Pharma stocks opened sharply lower on the J&J downgrade but moved steadily higher throughout the day and finished well off their lows.

The consumer sector outperformed. Beverage stocks were higher as Coca-Cola, Pepsi, and Coca-Cola Enterprises all were sharply higher.

Source: PFS Group

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