The S&P 500 climbed 0.80% and the Dow was higher by 0.41%. The NASDAQ and Russell 2000 were each up more than 1.30%.
When news came out late in the day that the shutdown may last for a week the market moved higher into the close. The initial reaction was that a week-long shut down would lead to more than just a very short-term stop gap measure.
Airlines, managed care, retail, and semiconductors were the leading areas of the S&P 500. Materials, utilities, and consumer staples underperformed. Airlines moved higher ahead of Delta’s guidance tomorrow and the hope that American will give an update on the merger soon. Volatility and correlations were lower today as it is becoming more of a stock pickers market.
Europe was strong on the news that things in Italy were close to resolution. The Dow Jones Euro Stoxx index was higher by 1.2%.
Commodities were mostly lower with precious metals, copper, crude, and corn lagging the tape. Gold was near its lows at the end of the day and was off 2.9%.
The ISM survey’s headline increased from 55.7 in August to 56.2 in September. The manufacturing headline declined slightly from 53.1 to 52.8.
Financials were in line with the market. The bank index closed at its high and gained 0.90% on the day. Regional banks outperformed the large money center banks/brokers.
Technology had a strong day led by Apple. Carl Icahn spoke at length on CNBC about his meeting with Tim Cook and the fact that he has a $2 billion stake in the firm. The stock gained strength throughout the day to close higher by 2.4%. Cree led the semiconductor group higher with a gain of over 15%.
Transports were one of the best groups in the market today posting a gain of 1.4%. Airlines, rails, and truckers all worked higher; crude moving lower by 0.50% today also helped the group. AMR Corp gained more than 8% after headlines that Texas was dropping its suit against the merger.
Media slightly outperformed the S&P 500. Internet stocks were led by online retailer Amazon.com. Amazon rose 2.7% after they announced they will be hiring 40% more seasonal workers than last year in the U.S. and 50% more in the U.K. Social media stocks were up sharply today with Groupon and Yelp leading the way.
Source: PFS Group
