The S&P 500 closed up 0.96% and the Dow closed up 0.89%, a new all-time high. Buying pressure remained constant throughout the day. Cyclical sectors outperformed as semiconductors and homebuilders led the market higher. Retail, homebuilders and financials were the relative underperformers on the day. Improving economic growth, improving corporate profits, accommodative monetary policy, and a far calmer macro backdrop are the catalysts for the run higher in the market in 2013.
The February ISM Services index came in at 56.0 against a consensus estimate of 55.4. This is the best reading for this measure since February of last year.
Commodities mostly traded higher today, but lagged the tape. Precious metals, crude, grains, cooper and natural gas underperformed the market. Gold eked out a 0.10% and silver rose by 0.42%. Crude rose by 0.69% to close at $90.74 a barrel.
Financials traded in line with the S&P. Life insurers, asset managers and money center banks outperformed the broad market. Regional banks were out of favor today and actually traded in negative territory.
Semiconductors were the stronger industry group in the technology sector. Semi’s finished higher by 1.8%. Cree gave better than expected guidance and rose by 14%. Semiconductor capital equipment companies also traded higher. Hardware was another area of strength. Apple, Hewlett Packard, EMC and Network Appliances all traded higher.
Late cycle names traded up 2-3% percent today and led the industrial space. Positive analyst comments drove General Electric higher. Positive Class 8 truck sales helped the engine makers. Transports established another new all-time high today. Airlines, rails, parcels and tuckers all traded to the upside today. Parcel carriers were particularly strong with Federal Express leading the group higher.
Energy traded higher but lagged the broad market averages. Crude traded higher by 0.75%. Oil services, drillers and integrated oil companies all traded in the green but below the market.
Consumer discretionary traded higher and consumer staples lagged the tape. Even with the big drop in JC Penney, retail had a good day today. Discount retailers and supermarkets traded ahead of the tape.
Source: PFS Group
