After some wild swing intra-week the markets finished off the last four trading days virtually flat. The market moved sharply higher throughout the day before sellers came in to take over on the final hour of trading. The S&P 500 closed higher by 1.11% for the month.
The Italian election had faded into the rear view mirror as bulls drove the market higher throughout the morning session. The advance was across the board for most of the day. Cyclicals and defensive names both gained momentum from the gains posted yesterday. There were no real big themes driving any particular sector today. Buyers drove the Dow Jones Transportation Index to an all-time high this morning.
Commodities were mostly lower, with precious metals, copper and crude trading lower. Natural gas and grains closed higher on the day. Gold and silver each lost more than 1% today. Natural gas traded up by over 1.5%.
The financial sector finished slightly lower. Money center banks were the best performers in the group. Insurance companies continued their climb higher. REIT’s continued to sell off.
Technology slightly trailed the broader market. Hewlett Packard continued its aggressive move higher that started after they announced earnings. IBM traded relatively quietly on a day when they had an analyst meeting. Software and semiconductors rallied in the morning and sold off with the rest of the market in the final hour.
Transports continued higher today. Rails and truckers led the way. Bellwether railroads remain in favor with investors. Airlines were a leading area in the sector. Truckers moved higher throughout the day after some companies in the space gave favorable updated earnings guidance.
Materials outperformed the market today. Chemicals were an area of strength while steel stocks trailed.
Energy stocks traded slightly ahead of the market. Crude traded sharply lower and natural gas rallied. Continued wide crack spreads helped refiners. Oil service companies and drillers trailed the sector.
Tower stocks were a leading performer in the telecom space. American Tower continues to trade higher after they reported earrings earlier in the week. Continued strong traffic over wireless networks has helped tower stock remain attractive.
Source: PFS Group
