The Dow was higher by 0.33% and the S&P 500 rose 0.27%. Energy roared ahead posting a gain of 1.6% and the semiconductor index posted a 1% gain.
Syria was still at the center of trading today. It appears people are beginning to see this situation as short-term in nature, not the beginning of a major intervention.
Energy, semiconductors, and insurance stocks led the move higher today. Lagging groups were homebuilders, REITs, industrials, and consumer staples. Weaker than expected new homes sales data put the homebuilders under pressure. This data point did not spill over to the broader market because the weak number is partly driven by a lack of supply, not overall weakness in demand. Joy Global gave weak guidance and set a negative tone for the industrial sector.
Energy was the clear winner today. Crude was higher by 0.50% and natural gas gained 1%. Continued strength in crude continues to drive names in the space higher. Heightened tensions in the Middle East have caused a spike in crude prices. While Syria produces little oil there is fear that there could be disruption in deliveries in more important areas.
Media stocks were led by Disney and Viacom; CBS, Time Warner, and Fox were weak. Mixed reviews and weaker ratings at Fox Sports put pressure on the stock. Social media stocks continue to lead the Internet group. Online retailers traded ahead of the tape.
Consumer discretionary stocks again outperformed consumer staples. The higher dividend names continue to correct more than the broad market. The correction in the staples is similar to the move lower at the end of last year. These names take a disproportionate hit when rates rise and their dividends become less attractive.
Source: PFS Group
