Indian ADRs end in the red though
US stocks ended higher at Wall Street on Thursday, 21 November 2013. The Dow Jones Industrial Average achieved its first-ever close above 16,000 on Thursday as U.S. stocks rallied, boosted by better-than-expected data on weekly jobless claims and as investors reconsidered their concerns about the Federal Reserve's potential reduction in its bond-buying program. The market also took in tame inflation data, a weaker-than-expected manufacturing report and speeches by Federal Reserve officials.
The Dow Jones Industrial Average rose 109.17 points, or 0.7%, to finish at 16,009.99, scoring a record close. The S&P 500 gained 14.48 points, or 0.8%, to end at 1,795.85, staying below its own milestone level of 1,800. The Nasdaq Composite advanced 47.88 points, or 1.2%, to finish at 3,969.15.
The health care sector outperformed in morning trade, but ended behind the broader market with a moderate gain. Other countercyclical groups also lagged, but only the telecom services sector ended in the red. Meanwhile, consumer staples and utilities posted modest gains. P> The U.S. Federal Reserve's Open Market Committee minutes were deemed somewhat hawkish by the market place. Several members of the committee said at their October meeting they could see the Fed tapering its $85 billion-a-month bond-buying program at one of its next few meetings. The committee members also saw the U.S. economy growing at a moderate pace.
It was reported Thursday that China's HSBC preliminary manufacturing report for November came in at 50.4 versus the final reading of 50.9 in October. Any reading above 50.0 suggests economic growth. However, the market place took the China data as a bit downbeat.
In other overnight news, European Central Bank president Mario Draghi said the European Union has seen disinflation for several months. He said he does not expect deflation to grip the EU, but added the ECB needs to take measures to prevent deflation, such as the recent interest rate cut by the ECB.
On the economic front, weekly initial claims dropped by 21,000 to 323,000 (consensus 333,000). The Department of Labor acknowledged, however, that the seasonal adjustments from the Veterans Day holiday may have played a role in the sharp decline.
Separately, producer prices declined 0.2% (consensus -0.2%) in October due to lower energy prices while core PPI, which excludes food and energy, increased 0.2% (consensus 0.1%). Over the last 12 months, PPI is up just 0.3% while core PPI has risen a tame 1.4%.
Lastly, manufacturing activity softened in November as the Philadelphia Fed's Business Outlook dropped to 6.5 from 19.8 in October. The consensus expected the index to fall to 11.9. Employment levels deteriorated notably as the Number of Employees Index fell to 1.1 from 15.4.
Retailers slid in the wake of disappointing quarterly results or outlooks. Target fell 3.5% after posting weaker margins and earnings at its U.S. business, while Dollar Tree shed 4.5% after its earnings fell in the third quarter. Game Stop and Sears Holdings lost between 2.9% and 6.9% in reaction to disappointing earnings and/or guidance.
Crude Oil futures rose to close above $95 a barrel on Thursday, 21 November 2013 at Nymex as prices for petroleum products rallied on the back of strong demand and natural-gas supplies marked their first decline of the season.
On its first full day as a front-month contract, crude oil for January delivery rose $1.59, or 1.7%, to $95.44 a barrel on the New York Mercantile Exchange. The U.S. Energy Information Administration's weekly supply report on Wednesday showed strong demand for petroleum products.
Bullion metals ended close to a%lower on Thursday, 21 November 2013 at Comex. Comex gold prices are ended the U.S. day session moderately lower reflecting the additional losses that occurred after the futures market closed on Wednesday. Gold for December delivery dropped $14.40, or 1.1%, to settle at $1,243.60 an ounce on the New York Mercantile Exchange. December silver fell 12 cents, or 0.6%, to $19.93 an ounce.
Indian ADRs ended weak on Thursday. In the IT space, Infosys shed 1.64% at $53.52 and Wipro fell 0.79% at $11.32. In the banking space, ICICI Bank was down 1.75% at $33.69 and HDFC Bank slipped 1.38% at $32.13. In the other sectors, Tata Motors declined 1.05% at $30.12 and Dr Reddys Laboratories was down 0.9% at $38.72.
There is no notable economic data on tomorrow's schedule.
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