The S&P 500 rose slightly, 0.13%, and the Dow was up just 0.04%, its ninth straight day of gains. Volume remains subdued but the general stance of investors now appears to be that it is too late to buy but too early to sell.
There was a rotation today out of telecom, healthcare and materials into transports, airlines and homebuilders. In healthcare, drug stores and distributors were leaders but biotech and managed care lagged. Morgan Stanley cut estimates on steel stocks and the materials sector underperformed in response. Homebuilders rose ahead of housing starts and building permit data that will be released next week.
Transports were a leading sector today. FedEx rose after favorable analyst commentary was released. Airline stocks continued to trade higher. Positive news regarding overall industry profitability has the group in favor.
Commodities were mostly lower. Poor performance in precious metals, copper, crude and corn offset gains in wheat and natural gas. Crude was fractionally higher and natural gas was up 1%.
Technology traded flat on the day. EMC and VMWare finished higher after VMWare, majority owned by EMC, gave better than expected guidance. Semiconductor stocks finished higher for the seventh consecutive day.
Financials ended the day higher by 0.30%. Asset managers were the best performing area in the sector. Some asset managers with trading operations disclosed improved client transaction levels.
Multi-line industrial stocks outpaced the market today. Late cycle names like GE and Tyco performed well. Eaton, up 1%, was the best performer in the engine maker group.
Source: PFS Group
