Daily Market Recap

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The S&P 500 gained 0.41% and the Dow was higher by 0.42%.

Since the news hit the tape that a deal was closed last Wednesday morning, the market has moved higher by 3.9%. The Russell 2000 hit a new 52-week high today and the NASDAQ is a few points shy of that mark. Volume was light on a day when the S&P 500 ranged from a low of 1692 to a high of 1711. There are many debates taking place on what the best case scenario for the resolution to the situation might be.

As the market rallied off its lows in the morning, internet, telecom, utilities, and builders lagged while semiconductors and media stocks led the way. Housing stocks were hurt after Whirlpool released weaker than expected numbers.

Commodities were mostly higher, with precious metals, copper, crude, grains, and natural gas all trading ahead of the tape. Gold finished off its highs but closed higher by better than $8. Natural gas traded higher by better than 1%.

Technology stocks were up in line with the broad market. Hardware saw a broad based rally. None of the stocks stood out but the group was higher by 1%. Semiconductors were higher from the open and outperformed the market into the close. Semiconductor equipment stocks continued to outperform the space. KLA Tencor broke out to a new high on heavy volume.

Financials had a significant intraday turnaround. The bank index rallied as a big week of earnings releases started. Discount brokers were strong; Charles Schwab was up more than 1%. Bank of America continued its run of recent strong performance.

Materials were especially strong with steels and base metals strong. The Wall Street Journal contained an article that said producers and analysts both believe we could be near the bottom of the cycle for metals makers. Chinese import data numbers for the past few weeks have come in better than expected.

Energy led the market by a wide margin. The energy sector rose 1%. Oxy Petroleum and Exxon each received favorable mentions from Barron’s over the weekend. Coals were higher after the stronger than expected Chinese import data numbers were released.

In retail, casual dining restaurants like Dunkin and Starbucks rose along with Brinker Eats. Tobacco and beverages underperformed in the staples area.

Source: PFS Group

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