Indian ADRs end mostly lower led by Infosys and Wipro Technologies
U.S. stocks closed higher on Tuesday, 15 April 2014 following a choppy session, bouncing back from a sizable drop that came after reports of fighting on the ground in Ukraine. The main indices closed a little under their morning highs, which came as blue chips Coca-Cola and Johnson & Johnson delivered upbeat earnings reports. Each index gained for the second day in a row.
The Dow Jones Industrial Average gained 89.26, or 0.6%, to close at 16,262.50. The Nasdaq Composite tacked on 11.47, or 0.3%, to finish at 4,034.16. The S&P 500 rose 12.37, or 0.7%, to end at 1842.98.
Equities climbed at the open with the advance built on the relative strength of biotechnology and other momentum names. Despite the solid early gains in those areas, the market began fading from its high as multiple reports pointed to an escalation of tensions in Ukraine.
Among economic data expected for the day at Wall Street, consumer prices increased 0.2% in March, up from a 0.1% gain in February. The consensus expected the CPI to increase 0.1%. Excluding food and energy, core prices increased 0.2% in March and ended a string of three consecutive months of 0.1% gains. The consensus expected these prices to increase 0.1%. The surprises in both the headline and core indices were mainly the result of stronger-than-expected housing costs.
Separately, the Empire Manufacturing Survey for April registered a reading of 1.3, which was down from the prior month's reading of 5.6. Market had expected the survey to improve to 7.5. Also, the April NAHB Housing Market Index rose to 47 from 46 while the consensus expected the reading to increase to 50.
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Energy and financials spent the entire day trading ahead of the broader market, which facilitated the afternoon rebound. Johnson & Johnson added 2.1% after the company beat on earnings.
Also of note, the utilities sector ended ahead of the remaining groups after climbing steadily throughout the session.
Treasuries posted gains, but retreated from their midsession highs during the afternoon rally in equities. The benchmark 10-yr yield slipped three basis points to 2.62%.
Participation was a bit above average as 771 million shares changed hands at the NYSE floor.
Bullion prices lost more than 2% on Tuesday, 15 April 2014. Gold futures dropped just over 2% on Tuesday, with traders attributing the decline to profit-taking on the back of overall strength in the dollar after the prior session's close at a three-week high for the metal. Silver prices took hits on concerns over China's economic growth.
Gold for June delivery dropped $27.20, or 2.1%, to settle at $1,300.30 an ounce on the Comex division of the New York Mercantile Exchange, erasing an $8.50 gain from Monday, when prices closed at a three-week high. Silver for May delivery sank 52 cents, or 2.6%, to end at $19.49 an ounce.
For now, overall strength in the U.S. dollar put pressure on dollar-denominated metals prices. The dollar index trades higher so far for the week, following an advance on Monday after better-than-expected U.S. retail sales.
The dollar index traded higher by 0.1% on Tuesday.
Crude oil futures closed lower on Tuesday, 15 April 2014 at Nymex as expectations that Libyan supply is poised to return to the market, concerns over global energy demand following some weak global economic data, and bets for a rise in weekly U.S. crude supplies helped pull prices back under $104 a barrel.
Crude oil for May delivery fell 30 cents, or 0.3%, to settle at $103.75 a barrel on the New York Mercantile Exchange, giving back roughly what it gained a day earlier.
In tomorrow's weekly inventory report, market expects that a rise in commercial crude-oil stocks of 2.4 million barrels for the week ended 11 April. Gasoline stockpiles are expected to fall by 1.7 million barrels, while distillates, which include heating oil, are seen down 200,000 barrels.
Indian ADRs ended mostly lower on Tuesday. In the banking space, ICICI Bank fell 1.41% at $42.67 and HDFC Bank shed 1.74% at $40.67. In the IT space, Infosys plunged 4.68% at $52.98 and Wipro gained 2.27% at $13.52. In the other sectors, Tata Motors slipped 4.39% at $36.62 and Dr Reddy's Laboratories rose 0.63% at $42.84.
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while March Housing Starts will be announced at 8:30 ET. March Industrial Production and Capacity Utilization will both be reported at 9:15 ET, while the day's data will be topped off with the Federal Reserve's Beige Book for April. The report will be released at 14:00 ET.
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