Daily Market Recap

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The S&P 500 rose 0.36% and the Dow was higher by 0.15%. The small cap Russell 2000 index bounced back after pulling in last week, posting a gain of 1%. There was very little news flow today as earnings season has played out. Media, regional banks, and semiconductors lagged today while homebuilders, steel, and energy were the leaders. 

Financials were flat today, trailing the market. Regional banks saw some profit taking. Some Fed comments were viewed today as meaning the taper will be delayed well into next year. This put banks under pressure as they will benefit from a steepening in the yield curve. Traditional and discount brokers were primary areas of strength as they posted gains across the board.

Technology was quiet. Apple gained better than 1% as the stock continues to improve technically. AT&T reported a record number of activations in response to the release of the iPad Air. The number of activations increased more than 200% during the iPad Air’s launch weekend compared to last year’s iPad launch weekend. The rest of technology was mixed with semi’s lagging as they recorded a small loss.

Traditional retailing stocks were in favor today. Discount warehouse giant Costco broke out to a new high. Target, Macy’s, Gap Stores, and Kohl’s were all also strong on the day.

Homebuilders and building products surged. Hawkish comments from the Fed suggest lower interest rates for the foreseeable future and great earnings from products company Vulcan Materials fueled the rally. Vulcan gained 7.6% on better than expected sales and earnings.

Transportation stocks surged better than 1% on the continued strength of the airline industry. There is more hope of a possible positive resolution in the AMR/US Airways merger. The continued decline in gas prices helped the entire group. Truckers were particularly strong.

Steel stocks roared higher after Goldman Sachs raised their outlook on the space. US Steel gained more than 4%. Chemicals and fertilizers also gained as economic releases continue to point to a sustained global economic recovery.

Energy was led by a better than 4% spike in the biggest company in the sector, Exxon. Companies providing drilling services in the Permian basin continue to move higher as the realization that there is an energy renaissance in the U.S. gains hold.

Source: PFS Group

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