The S&P 500 rose by 0.72% and the Dow was higher by 0.72% also. There was no major news to drive stocks higher today. Just a good old fashion day of “more buyers than sellers.” Pending home sales data for March was better than expected. There was anticipation that there will be some rate cuts to spur growth in Europe later in the week.
Telecom, homebuilders, staples, and banks were underperformers today. Technology, materials, and hospitals were leaders. Apple and Microsoft led the technology sector higher today. Apple is up more than 10% form the lows it hit last week after earnings. Apple has approached its 50-day moving average for the first time in weeks. Microsoft has rallied near current levels several times over the past several years and not followed through. Time will tell if it can gain momentum this time. Hospitals rallied today after Friday nights' Medicare rate announcement which was better than expected. Strength in commodities led to a rally in the materials sector.
Utilities were again one of the strongest industry groups in the market. Many utilities reached all-time highs today. With their attractive yield and pure exposure to domestic markets, utilities have been in favor all year.
The technology sector rose by 1.8% today on little news. With many staple stocks technically extended, money has begun to rotate from staples to technology. Apple reaffirmed its commitment to return cash to shareholders today and the stock was up by more than 3%. Hewlett Packard and IBM, after a sharp recent sell off, were also both sharply higher. There was a broad based rally in semiconductor stocks.
Steels were up between 1.5% and 3% on the day. Materials were stronger as commodities rallied. Commodities were mostly higher with precious metals, copper, crude, grains, and natural gas trading ahead of the tape. Gold and silver both closed near the highs of the day.
Brokers were an area of strength in the financial sector. Morgan Stanley and Lazard each rose sharply. Asset managers were also strong. Insurance stocks were up slightly, but trailed the overall market.
Source: PFS Group
