Indices register strong weekly gains though
US stocks ended with strong gains for the week that ended on 26 April, 2013. Indices gained between 1% to 2.5% for the week. Earning reports dominated the week. But stocks' gains were limited on the last trading day of the week ie Friday, 26 April. U.S. stocks ended mostly lower on Friday after a report showed the economy expanded at a slower pace than expected in the first quarter and a gauge of consumer sentiment fell in April.
For the week, the Dow ended higher by 165.04 points (1.1%) at 14,712.55. Nasdaq ended higher by 73.2 points (2.3%) at 3,279.26. S&P 500 ended higher by 26.99 points (1.7%) at 1,582.24.
On Monday, the S&P 500 settled higher by 0.5% despite enduring some intraday weakness while the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.9%. Technology stocks led from the start with Microsoft providing considerable support after ValueAct announced a $2 billion stake in the software company. Other tech shares also displayed strength as Apple climbed 2.1%. Although most large tech names ended with gains, IBM shed 1.1% to follow Friday's earnings-driven drop.
Tuesday's session ended with strong gains as the S&P 500 climbed 1.0%. Financials and technology led the advance with bank stocks outperforming notably. Discover Financial Services and Dow component Travelers reported better-than-expected earnings.
The major averages ended Wednesday's session on a mixed note as the Dow shed 0.3% while Nasdaq and S&P 500 ended flat. Consumer staples lagged after Procter & Gamble reported revenue below the estimate. In addition, the company issued cautious fourth quarter earnings and revenue guidance.
Also Read
Thursday saw equities settle with modest gains. The S&P 500 climbed 0.4% as materials outperformed throughout the session. Miners were among top sector components as precious metals rallied. Gold futures advanced 2.8% to $1462.80 per troy ounce while silver futures spiked 6.2% to $24.25 per troy ounce.
On Friday, 26 April 2013, the major averages entered the weekend on a mixed note as the S&P 500 slipped 0.2% while the Dow Jones Industrial Average added 0.1%. The final session of the week began on a cautious note as downbeat overseas trade and mixed corporate earnings pressured equity futures. In addition, a disappointing first quarter GDP report contributed to the lower open.
The Dow Jones Industrial Average rose 11.75 points, or 0.1%, to end at 14,712.55 on Friday. The technology-heavy Nasdaq Composite dropped 10.72 points, or 0.3%, to end at 3,279.26. The S&P 500 index fell 2.92 points, or 0.2%, to end at 1,582.24 after hitting an intraday low of 1,577.56. The benchmark snapped a five-session winning streak on Friday.
Gains for Hewlett-Packard and Chevron helped the Dow Jones Industrial Average finish in positive territory. Hewlett-Packard rose 1.9%, leading gainers in the 30-stock blue-chip index. Chevron was another gainer in the Dow, rising 1.3%. The oil major said its first-quarter earnings fell to $6.2 billion. Alcoa and United Technologies were the biggest decliners in the Dow, dropping 1.4% and 1%, respectively.
The industrial sector outperformed the broader market as Dow components, Boeing General Electric ended with respective gains of 1.3% and 1.2%. Shares of Boeing rallied following reports indicating Japan will allow the 787 Dreamliner to return to service after the jet experienced battery problems in recent months.
According to the advance report, first quarter GDP grew at an annualized rate of 2.5%. That was up from a 0.4% gain in the final quarter of last year, but below the expectation of a 2.8% gain.
A deeper look into the data sets the tone for a likely severe deceleration in trends during the second quarter. The report detailed that just about all of the gains in the first quarter came from consumption and inventories, both of which are likely to experience a pullback over the next three months. Furthermore, government spending, which fell 4.1% in the first quarter after declining 7.1% in Q4 2012, is set to fall by a larger amount during the second quarter as the effects of the sequestration become more pronounced.
Today's economic data also included the University of Michigan Consumer Sentiment Index, which was revised up to 76.4 from 72.3 in the final April reading. That is still down from 78.6 in March and the weakest reading since January. The market had expected the sentiment index would be essentially unchanged at 72.4.
Bullion metals ended in the red on Friday, 26 April 2013. Prices ended lower following profit taking after prices rose earlier during the week. But prices still ended the week higher on the back of growing physical demand. Gold for June delivery shed $8.40, or 0.6%, to settle at $1,453.60 an ounce on Comex division of the New York Mercantile Exchange. Gold futures saw their first weekly gain in five weeks, up 4.2% for the week. On Friday, May silver also slid into the red and to a session low of $23.59 per ounce after trading as high as $24.49 per ounce earlier in the day. Unable to regain momentum, it settled at $23.74 per ounce, booking a gain of 3.3% for the week.
Crude-oil futures closed lower on Friday, 26 April 2013 at Nymex. Prices fell as disappointing first-quarter U.S. economic growth fed worries over the outlook for energy demand. But oil prices still ended higher for the week, as a decline in the dollar and a smaller-than-expected rise in last week's U.S. crude supplies helped them post a gain.
June crude oil chopped around in negative territory for its entire pit session. It dipped to a session low of $92.08 per barrel trading as high as $93.42 per barrel in morning action. The energy component inched higher in afternoon floor trade and settled 0.7% lower at $92.96 per barrel. Despite Friday's weakness, crude oil booked a 5.3% for the week.
More than 681 million shares traded on the New York Stock Exchange. Composite volume topped 3.1 billion.
Indian ADRs ended lower on Friday. In the IT space, Infosys was down 1.9% and Wipro was down 0.9%. In the Banking space, HDFC Bank was down 0.5% and ICICI Bank was down 1.4%. In the Telecom space, Tata Communication was down 0.8%. In other space, Tata Motors was down 0.5%, Dr Reddys was down 0.4% and Sterlite was down 2.4%.
For the year, the Dow, Nasdaq and S&P 500 are trading higher by 12.3%, 8.6% and 10.9% respectively. On Monday, March personal income, personal spending, and core PCE prices will all be reported at 8:30 ET while March pending home sales will be announced at 10:00 ET.
Powered by Capital Market - Live News