The Dow rose by 0.35% and the S&P 500 was higher by 0.32% at the close today. The S&P 500 is now up for seven straight trading days. There was very little news flow. The averages were flat for much of the day. As the volatility index crept to its lows enough buyers came in to work the averages higher in the final hours of trading.
Apple had an intraday reversal and closed higher by better than 1%. Railroad stocks moved higher on a favorable article in Barron’s over the weekend. The article noted that there could be a record amount of petroleum shipped over the rails this year. Financial stocks continued their climb higher and the financial index closed at a five year high.
Treasuries were slightly lower on the day as the Fed purchased $1.5 billion in 10-year notes today. The 30-year bond performed slightly better.
Commodities were mostly higher with gold, copper, grains and natural gas trading ahead of the tape. Silver and crude oil lagged.
Financials again traded higher after seeing a selloff last Friday. The sector rose significantly last week leading into the stress test numbers that were released after the close Thursday. The release of the news, which was largely positive, led to some profit taking Friday. A continued improvement in mortgage underwriting and a less onerous regulatory environment were cited as positives for the financial space today.
Technology lagged today even with the rise in Apple. Software was weak today as analyst downgrades took Adobe and Intuit lower.
The transport sector was flat today. Railroads were a leading industry group within the sector. The rails are expected to increase the number of rail cars to handle the surge in North American oil production.
Energy lagged the broader averages today. Crude traded lower by 0.25% and natural gas moved higher by a like amount. Refiners, a leading industry group for months, were lower today after the Wall Street Journal released a piece suggesting the refiners may have higher costs associated with ethanol production.
Source: PFS Group
