H-P fares best among Nasdaq jumping 9%
U.S. stocks stepped higher on Wednesday, 27 November 2013 with the S&P 500 and Dow Jones Industrial Average achieving record closes, after better-than-expected reports on consumer sentiment, employment and Chicago-area business conditions. Equity indices posted modest gains with the Nasdaq setting the pace for a second consecutive day. The tech-heavy index climbed steadily throughout the session.
The Dow rose 24.53 points, or almost 0.2%, to end at 16,097.33 for its fifth straight record close, while the Nasdaq Composite climbed 27 points, or 0.7%, to finish at 4,044.75. The S&P 500 gained 4.48 points, or nearly 0.3%, to finish at 1,807.23.
H-P fared best among S&P 500 components, jumping 9% after its stronger-than-anticipated quarterly results late Tuesday. Apple gained for the third day, closing at its highest since January 2013.
While it was a somewhat quieter market place Wednesday, in a pre-holiday trading atmosphere (the U.S. Thanksgiving holiday is on Thursday) it was a very busy day for U.S. economic data. The data was a mixed bag, but tilted toward the upbeat side, and that gave the greenback a lift.
This morning was busy in terms of economic data. Weekly initial claims were better than expected, declining 10,000 to 316,000 (consensus 330,000). In turn, continuing claims also beat estimates, dropping by 91,000 to 2.776 million (Briefing.com consensus 2.875 million). Seasonal adjustment problems were cited as a factor for the low level of initial claims, so once again we'll have to put an asterisk next to a number that looks encouraging at first blush. In all likelihood, the initial claims level will move higher as the seasonal adjustment problem gets corrected.
Separately, the durable orders headlines weren't all that encouraging. Total orders declined 2.0% in October (consensus -2.2%) from an upwardly revised 4.1% increase in September (from 3.8%). Excluding transportation, orders declined 0.1% (consensus 0.2%) from an upwardly revised 0.2% increase in September (from -0.1%). The upward revisions to September's data cushioned some of the blow of the downturn in October. The report though was still disappointing in terms of what it said about business investment, which is that it is weak.
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Manufacturing activity in the Chicago region remained strong. The Chicago PMI fell to 63.0 in November from 65.9 in October. That was the first time since November/December 2011 that the index stayed above 60 for two consecutive months. The consensus expected the Chicago PMI to fall to 58.0.
Lastly, the final reading of the November Michigan Consumer Sentiment Survey was revised up to 75.1 from 72.0 (consensus 73.0) while October Leading Indicators ticked up 0.2% (consensus -0.1%).
Bullion metals ended lower on Wednesday, 27 November 2013 at Comex. Gold futures on Wednesday settled at their lowest level since early July, pressured by strength in the dollar as traders mulled the metal's appeal against a backdrop of rising U.S. consumer sentiment as well as declines in durable-goods orders and a Chicago's business gauge. Gold for February delivery shed $3.60, or 0.3%, to settle at $1,237.90 an ounce on the Comex division of the New York Mercantile Exchange after touching intraday highs above $1,250. On Comex, March silver fell 21 cents, or 1.1%, to $19.68 an ounce.
Nymex oil futures on Wednesday, 27 November 2013 dropped to their lowest close in nearly six months after data from the U.S. government showed a 10th weekly rise in crude supplies. Astrong dollar following upbeat US economic data also pressured prices. Natural-gas futures climbed on the back of a fall in U.S. stockpiles that was a bit more than expected.
Crude oil for January delivery fell $1.38, or 1.5%, to settle at $92.30 a barrel on the New York Mercantile Exchange.
The U.S. Energy Information Administration reported that crude supplies climbed by 3 million barrels for the week ended 22 November 2013. Market had expected a decline of 1.5 million barrels. The EIA data on Wednesday showed gasoline supplies rose by 1.8 million barrels, while distillate stockpiles fell 1.7 million barrels. Gasoline stockpiles were expected to rise 1 million barrels while distillate supplies, including heating oil, were seen down 1.3 million barrels.
Trading volumes were below average ahead of the Thanksgiving and Hanukkah holidays.
Bond and equity markets will be closed tomorrow for Thanksgiving. On Friday, the equity market will close early at 13:00 E.T.
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