The Dow closed higher by 0.33% and the S&P 500 closed flat. Apple dragged the NASDAQ down by 0.74%. Cyclical areas of the market—retail, transports and builders in particular—led the market today.
Industrials traded ahead of the broader market on positive economic data and strong earnings guidance from industrial names. Multi-line names continue to report strong quarterly earnings numbers and give better than expected forward guidance. MMM posted and earnings beat and increased 2013 guidance. Late cycle names outperformed the market. Machinery names traded higher and capital equipment names were also strong. Agricultural names continue to move higher on better than expected numbers from China. Aerospace/defense names traded higher on reports that there could be mergers and acquisition activity in the space in 2013.
Comments made by analysts describing the current move in the housing space as “the early stages of a multiyear recovery in housing” helped building products and homebuilding stocks.
Transports continue to work higher. Airlines, parcels, rails and truckers fared well today. UPS and FDX continue to perform well. Earnings reports from most of the railroads continue to come in better than expected. Truckers have moved consistently higher over the past several weeks of trading.
Energy traded ahead of the tape today. Crude was up close to 1.5% and natural gas traded lower. Drillers, oil service and integrated energy names all performed well today.
Retailers performed well after Ross Stores, Dillards and Bed Bath & Beyond received analyst upgrades. Dollar stores moved higher today after better than expected same store sales data was released.
Source: PFS Group
