Nasdaq fails to join the rally as tech sector falters
U.S. stocks ended Tuesday's session slightly higher on 14 APril 2015 as gains in the energy sector lifted the benchmark S&P 500 index. Equity indices slipped during the opening hour after the March Retail Sales report came in below expectations. Investors brushed off weaker-than-expected economic data and mixed earnings reports. Notably, monthly retail sales rebounded in March, but by less than expected.
Seven out of ten economic sectors finished in the green led by the energy sector. Technologys ector remained a major laggard.
The Dow Jones Industrial Average added 59.66 points, or 0.3%, to 18,036.70, with nearly two-thirds of its 30 components finishing with gains. Chevron led the Dow gainers. The Nasdaq Composite underperformed other indexes and closed 10 points, or 0.2%, lower at 4,977.29. The S&P 500 closed 3.41 points, or 0.2%, higher at 2,095.83.
The less-than-stellar economic reports come as earnings reports from large banks and retailers provided a mixed backdrop. J.P. Morgan's resultsthe first major earnings report of the daybeat forecasts and sent the bank's shares higher, while Wells Fargo delivered a rare decline in profits. Banking giant J.P. Morgan Chase & Co. reported rises in first-quarter profit and revenue that topped analyst forecasts, lifting the shares 1.6%. Wells Fargo & Co. reported that its first-quarter profit fell, the first such drop in 18 quarters. Shares fell 0.7%.
The two companies kick off earnings season for large U.S. banks, with Bank of America, Citigroup and Goldman Sachs Group reporting later in the week.
Among economic data expected for the day, sales at U.S. retailers rose in March by the largest amount in a year, rebounding after three straight monthly declines. However, the rebound was weaker than expected. U.S. producer prices rose a seasonally adjusted 0.2% in March after four straight monthly declines. Separately, The NFIB small-business index for March fell to its lowest reading in nine months. U.S. February business inventories ticked up 0.3%.
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Bullion prices ended lower at Comex on Tuesday, 14 April 2015. Gold prices ended the U.S. day session moderately lower on Tuesday, but up from solid losses that saw prices hit a two-week low in early U.S. trading. Gold futures trimmed losses early Tuesday after a weaker-than-expected rebound in U.S. retail sales for March, but still settled at their lowest level of the month as traders weighed the timing of an interest-rate hike by the Federal Reserve. Gold for June delivery on Comex fell $6.70, or 0.6%, to end at $1,192.60 an ounce. May silver fell 13 cents, or 0.8%, to $16.161 an ounce.
Crude oil futures settled at their highest in a week on Tuesday, 14 April 2015 with talk of a potential output cut from the Organization of the Petroleum Exporting Countries and expectations for a decline in U.S. production combining to lift prices for the U.S. crude benchmark above $53 a barrel.
Crude for delivery in May climbed $1.38, or 2.7%, to settle at $53.29 on the New York Mercantile Exchange. The settlement was the highest since 7 April and marked a fourth straight session climb.
As per reports, Iran's oil minister has called on OPEC, at its next meeting in June, to reduce production by at least 5% to boost prices that have collapsed since last summer.
Today's trading volume was comparable to that observed in recent days with more than 675 million shares changing hands at the NYSE floor.
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while the Empire Manufacturing report for April will cross the wires at 8:30 ET (consensus 7.3). The Industrial Production report for March will be released at 9:15 (consensus -0.3%) while the NAHB Housing Market Index for April will be reported at 10:00 ET (consensus 55). Also of note, the Federal Reserve will release its April Beige Book at 14:00 ET.
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