The S&P 500 climbed slightly, +0.16% and the Dow was higher by 0.34%. The NASDAQ lagged losing 0.17%. Banks and builders outperformed and technology trailed the tape. European markets rebounded sharply today on positive news in the financial sector.
The Dow Jones Euro Stoxx index had a strong day closing higher by roughly 1%. Barclays exploded higher after reporting earnings and announcing major restructuring plans. L’Oreal also responded favorably to earnings with a move higher of 3%. Sovereign bond spreads improved as the cost of borrowing in Spain and Italy fell today.
Commodities were mostly higher with precious metals, copper and crude trading higher. Grains and natural gas traded lower on the day.
The financial sector provided leadership today. Money center banks continue to outperform the regionals. The largest U.S. money center banks reacted favorably to the Barclays conference call and restructuring plans. There was also a major financial services conference hosted by one of the largest brokerage firms.
Homebuilders/building products stocks were a leader. The homebuilding index traded higher by over 3%. Building products maker Masco reported excellent earnings after the close yesterday and set the tone for today’s trading. Masco surged higher and closed the day up by over 12%. They gave favorable guidance on new home construction activity for 2013.
Trading was mixed in the transports sector. Rails continued to work higher and parcels were slightly lower. Leading rails were up across the board.
Energy stocks traded higher today as crude moved slightly higher. Refiners, the best area in the sector for several weeks, saw some profit taking. Many refiners are up more than 50% over the past few months.
There was a major transaction in the media space after the close. Comcast reported better than expected earnings and also announced they were going to acquire the remaining 49% of NBC they do not own from General Electric. Both stocks were trading up significantly after hours.
Source: PFS Group
