The S&P 500 climbed by 0.52% and the Dow rose by 0.58% to close above 15,000. Both indexes have now reached new record highs in nominal terms. Transports, media, industrials, and banks were leading sectors today and technology and homebuilders were laggards.
Transports were led by Federal Express, and UPS after it reached a labor agreement with the Teamsters sooner than expected. The transports outperformed the broad averages for the third straight day. The group rose by 1.25% as the rails, truckers, and parcels all were strong. Union Pacific hit another new high today closing higher by 1.53%. Positive labor news and favorable analyst comments lifted UPS and Federal Express. Trucking stocks were strong today on the belief that volumes will improve for the remainder of the year.
The aerospace/defense group moved higher again today. Fears of spending cutbacks as a result of the sequestration have proven to be unwarranted and stocks in this space have been performing well for the past several weeks.
The rotation into more cyclically oriented stocks was evidenced by strong performance from Caterpillar and other heavy equipment makers, Joy Global and Terex. Broad based industrials like Illinois Tool Works continued to reach new highs on improved outlooks for the remainder of the year.
Financials performed in line with the broad market. Banks and brokers both were in favor today. JP Morgan, Wells Fargo, and Citigroup led the banking sector. Asset managers climbed by 1%.
Commodities were mostly lower with precious metals, crude, copper, and natural gas all trailing the market. Gold closed off by more than 1% and silver rallied off its lows to close down by 0.28%. Natural gas was lower by 1.80% and crude was off 0.73%.
Healthcare underperformed the market by 0.35% today. Managed care and drug stores outperformed and biotech and medtech underperformed. HMO leaders, United Healthcare and Humana, were strong again today. Baxter was a med tech company that came under pressure today declining 2.46% on negative data on Alzheimer patients using one of their offerings.
The consumer sector outperformed the broader market. In retail, Fossil spiked by better than 9% on stronger than expected earnings. Specialty clothing retailers were higher after positive analyst commentary on the space. Consumer staple stalwarts, Kraft, up 2.6%, and Post, up 3.5%, were leaders today.
Source: PFS Group
