The Dow was slightly higher by 0.09% and the S&P 500 gained 0.24%. Materials, utilities, semiconductors, and consumer staples outperformed and homebuilders, managed care, transports, and banks lagged the market.
Commodities were mostly higher today with precious metals, copper, and crude moving higher, while grains and natural gas lagged the tape. Gold gained 0.62% and silver gained 0.20%. Copper slightly outperformed the broader market.
Financials were slightly higher. The larger banks and brokers have already reported earnings so there was little news from the sector. E*Trade roared higher by 7.9% after they reported earnings well in excess of estimates after the close yesterday.
Semiconductors were the leading group within the tech sector. Qualcomm was higher by 3.3% on better than expected earnings. Several small communications chip suppliers were up in excess of 10% after they reported earnings far above consensus estimates. Earnings season for technology stocks remains mixed with several large winners and losers each day.
Industrial stocks started the day lower and gained momentum throughout the day. Sector leader MMM reported earnings prior to the open and opened sharply lower. Shares gained consistently through the day to wipe out all the early losses and closed out higher. Caterpillar continued to sell off after issuing disappointing earnings earlier in the week.
Homebuilders slumped after two companies released disappointing earnings. Orders in the housing sector were very disappointing. There have been several conflicting data points in the housing sector over the past few weeks. This uncertainty with higher rates led to aggressive selling today.
Chemical stocks led the materials sector today. Air Products roared ahead by more than 6% and led the group. Dow was up close to 2% after they announced possible plans of spinning off underperforming divisions.
Social media stocks were in favor today after Facebook released strong earnings last night. FB shares soared 29.6% after their earnings came in well above estimates. Online travel was an area of strength as Trip Advisor (+16%), Expedia, and Priceline were all higher.
Consumer staples were strong on better than expected earnings. Colgate-Palmolive and Coca-Cola Enterprise both were in favor on good earnings and guidance. In the discretionary space there were a few big winners in a quiet area. Under Armour soared by more than 12% on earnings. GNC was another big gainer in the space adding 11%. Starbucks gained more than 2% in anticipation of earnings. After hours shares of the coffee maker spiked more than 6% as they beat estimates.
Source: PFS Group
