The Dow climbed 157 points, or 1.08%, and the S&P 500 was higher by 1.43%. The market gained back roughly 60% of yesterday’s losses. Cyclical sectors were the better performers today. Transports, materials, semiconductors, homebuilders, and media stocks led the advance. Telecom and retail lagged the tape.
Commodities were mostly higher today with copper and crude lagging the tape while precious metals, grains, and natural gas led. Gold and silver finished substantially higher today but were well off their respective highs at the end of trading. Crude traded down fractionally and natural gas was higher by 1.1%.
The financial sector climbed by better than 1.5% today. Even with a few earnings disappointments the sector moved higher. Sector bellwether Goldman Sachs reported earnings and fell by more than 1%. Other big names in the space like Citigroup, Morgan Stanley, and Bank of America were up strongly. Insurance stocks were up by more than 2%.
Semiconductors were the strongest industry group in the technology sector. There was little in the way of earnings reports for hardware or software names but there was strength across the board in each of these industry groups.
Industrials bounced back in line with the market today. WW Grainger was higher by more than 7% after they reported better than expected earnings. Grainger reported earnings in excess of expectations and also raised earnings guidance for the remainder of the year. Capital equipment and agricultural stocks were also up sharply today.
Media stocks were in favor today. Buyers came in aggressively to buy the largest media companies. Viacom, Disney, and CBS were all higher today. Advertising stocks were up ahead of earnings from Omnicom.
Telecom lagged the market after a great run over the past few weeks. AT&T and Verizon were laggards after an almost uninterrupted move higher over the past few months. Tower stocks moved higher after the market took the merger of DISH and Sprint as a positive for the space.
Consumer staples outperformed today led by a breakout form Coca-Cola. Coke reported better than expected earnings and better guidance through positive changes with bottling distributors. Coke traded higher by close to 6%.
Source: PFS Group
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