US stocks ended sharply higher for third straight day on Thursday, 27 June 2013. Stocks surged for a third session on Thursday on upbeat economic data and reiterations from Federal Reserve officials that monetary policy depends on the economic outlook. Stocks also surged with reported remarks from Atlanta Federal Reserve President Dennis Lockhart.
For the day, the Dow Jones Industrial Average rallied 114.35 points, or 0.8%, at 15,024.49. The Nasdaq Composite climbed 25.64 points, or 0.8%, to 3,401.86. The S&P 500 index ended up 9.94 points, or 0.6%, at 1,613.20.
Nine out of ten economic sectors ended higher for the day. Financials led the gains and materials were the sole laggard among its 10 major sectors. Twenty eight out of thirty Dow components ended higher led by Boeing and H-P.
Among latest economic data expected at Wall Street, personal income report pointed to an increase of 0.5% in May. The consensus expected personal income to rise 0.2%. Meanwhile, personal spending increased 0.3% in May and nearly reversed the entire 0.3% decline that occurred in April. The consensus expected spending levels to increase 0.4%. In addition, the core PCE price index increased 0.1% in May. That was up from no growth in April and exactly what the consensus expected.
The initial claims level fell from an upwardly revised 355,000 (from 354,000) for the week ending June 15 to 346,000 for the week ending June 22. The consensus expected the initial claims level to fall to 345,000. Over the past several weeks, the initial claims level has followed a soft saw tooth path with the four-week moving average remaining nearly flat the entire time. The claims data suggest that labor market conditions have not materially changed during this time.
Stocks received a secondary boost from the pending home sales report as May sales rose 6.7% (1.5% consensus).
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On Thursday, Lockart said in a speech that the Fed will eventually reduce its balance sheet (meaning wind down its quantitative easing and monthly bond buying). He also said there are no inflationary problems on the horizon. However, he also said nothing has changed lately in the Fed's overall monetary policy. He added that it's likely the Fed will start looking at raising interest rates sometime in 2015.
Bullion metal prices ended substantially lower once again on Thursday, 27 June 2013 at Comex. Gold and silver prices plummeted and hit another fresh nearly three-year low. The steep price decline coincided with reported remarks from Atlanta Federal Reserve President Dennis Lockhart. Gold for August delivery ended lower by $18.2 (1.5%) at $1,211.6 an ounce on the Comex division of the New York Mercantile Exchange on Thursday. July silver ended lower by $0.06 (0.3%) at $18.53 an ounce on Thursday.
Crude-oil prices ended moderately higher on Thursday, 27 June 2013 at Nymex. Prices rose following better than expected set of economic reports at Wall Street. Light and sweet crude for August ended higher by $1.55 (1.6%) at $97.05 a barrel on the New York Mercantile Exchange on Thursday.
For every stock sliding, nearly six rose on the New York Stock Exchange, where 732 million shares traded. Composite volume exceeded 3.3 billion.
Indian ADRs ended mostly higher on Thursday. In the IT space, Infosys was up 2.8% and Wipro was up 1.5%. In the Banking space, HDFC Bank was up 2.9% and ICICI Bank was down 0.3%. In other space, Tata Motors was up 1.8%, and Sterlite was up 4.2%.
For tomorrow, June Chicago PMI and the final reading of the June Michigan Consumer Sentiment Survey will cross the wires at 9:45 and 9:55 ET, respectively
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