US stocks ended with modest gains on Tuesday, 07 May 2013. Earnings shaped the early price action in the absence of notable economic data. U.S. stocks also rose on Tuesday, with the Dow industrials closing above 15,000 for the first time, after Australia cut its refinancing rate and satellite-TV provider DirecTV and watch maker Fossil reported improved earnings.
For the day, the Dow ended higher by 87.31 points (0.6%) at 15,056.2. Nasdaq ended higher by 3.66 points (0.11%) at 3,396.63. S&P 500 ended higher by 8.46 points (0.52%) at 1,625.96.
Telecommunications and industrials led the gains that included all but technology of its 10 basic sectors. Twenty three out of thirty Dow components ended higher.
Equities began the session on an upbeat note as earnings reaction shaped the early sentiment. Better-than-expected revenue from EOG Resources supported the sector.
Among earning reports, Fossil gained after the seller of watches and handbags reported strong sales and better-than-expected earnings for the first quarter. First Solar shares declined a day after the energy provider reported disappointing earnings. Shares of DirecTV climbed 6.9% after the provider of satellite-television services reported earnings above analysts' expectations.
While the Nasdaq displayed strength at the open, the index dipped into the red minutes into the session as relative weakness in several large cap names pressured the broader tech sector. Apple, Oracle and Microsoft lost between 0.5% and 2.1% while going into close.
The Nasdaq has also been pressured by the underperformance of biotechnology names after Perrigo reported disappointing earnings and revenue. This, in turn, had weighed on the health care sector, which was the second-weakest performer of the day.
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In overnight news, Australia's central bank cuts its key interest rate to a record low of 2.75% in an effort to keep its economy afloat and to weaken the Australian dollar. The country's central bank cut its key interest rate by 25 basis points, which sent the Australian dollar lower. In Asian trading the Japanese stock market hit a five-year high on the first trading day after the Golden Week holiday break. There will be some key economic data from China released on Wednesday and Thursday.
Latest economic data from US showed that consumer credit increased by $8.0 billion in March. That was down from an upwardly revised $18.6 billion (from $18.1 billion) in February. The consensus expected consumer credit to increase by $16.3 billion. That was the first time since September 2012 that consumer credit did not increase by at least $10.0 billion.
In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.25% on Tuesday.
Bullion metal prices ended lower on Tuesday, 07 May 2013. Gold ended the U.S. day session solidly lower on Tuesday on consolidation and news of fresh outflows of investor money from gold-backed exchange traded funds.
Gold for June delivery ended lower by $19.2 (1.3%) at $1,448.8 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday. July silver ended lower by $0.15 cents (0.6%) at $23.81 an ounce on Tuesday.
Crude-oil prices ended marginally lower on Tuesday, 07 May 2013 at Nymex. June crude oil fell for the first time in four sessions ahead of tomorrow's inventory data. Prices ended lower as traders grew wary over the potential supply-and-demand consequences of geopolitical tensions in the Middle East. Light and sweet crude for June ended lower by $0.07 (0.1%) at $95.55 a barrel on the New York Mercantile Exchange on Tuesday.
Advancers outran decliners by a more than 3-to-1 ratio on the New York Stock Exchange, where 630 million shares traded. Composite volume approached 3.3 billion.
Indian ADRs ended higher on Tuesday. In the IT space, Infosys was up 1.7% and Wipro was down 0.4%. In the Banking space, HDFC Bank was up 1.7% and ICICI Bank was up 2.6%. In the Telecom space, Tata Communication was unchanged. In other space, Tata Motors was up 1.33%, Dr Reddys was down 0.3% and Sterlite was up 1.1%.
Tomorrow, economic data will be limited to the MBA Mortgage report and weekly inventory data on crude stockpiles.
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