Daily Market Recap

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The S&P 500 was higher by 0.63% and the Dow gained 0.82%. Semiconductors, banks, industrials, and technology outperformed while healthcare and staples underperformed.

Commodities were higher, led by precious metals, copper, and oil while natural gas and grains moved lower on the day. Gold gained better than 0.50% while silver was up more than 3%. Base metals rallied as both copper and nickel were higher.

Industrials were strong today posting higher by approximately 1%. Several names in the sector will provide 2014 updates later in the week and Federal Express will report earnings. Machinery/multi-industry stocks like Eaton, Danaher and Dover were in favor today. Transports were higher aso, posting a gain of 0.90%.

Banks and asset managers were strong in the financial sector. REITs dragged the group lower. Discount broker Charles Schwab gained more than 1%. Regional banks outpaced the money center banks.

A buyout in the semiconductor space and a surge higher by titan IBM helped the tech sector today. LSI Corp gained more than 38% after receiving a buyout offer. IBM has traditionally traded at a premium to the market, but is trading at a single digit PE after several earnings disappointments. Analysts made positive valuation calls on Big Blue today and the stock gained close to 3%.

Lodging stocks were strong across the board. Starwood hotels led the way. The stock moved higher after favorable commentary in this weekend’s edition of Barron’s. Stocks with exposure to the Macau gaming market also performed well.

Healthcare stocks lagged badly on the day. Managed care, biotech, and pharma stocks all underperformed.

Retailers had a strong day. Online retailers released stronger than expected data from European operations. Better than expected sales data helped video game retailers. Tiffany gained close to 2% after receiving an analyst upgrade. Herbalife surged by more than 9% after they released amended financials for the last three years. The were no material changes to their last three years financial statements.

Source: PFS Group

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