Indian ADRs end substantially higher led by Tata Motors and ICICI Bank
US stocks ended with strong gains on Tuesday, 16 April 2013. Indices managed to recoup back most of their prior session's loss. Better than expected earnings from a Dow component and better than expected housing data pushed up prices. Stocks rallied right out of the gate and stayed strong for the rest of the day.
For the day, the Dow ended higher by 157.58 points (1.08%) at 14,756.58. Nasdaq ended higher by 48.14 points (1.5%) at 3,264.63. S&P 500 ended higher by 22.21 points (1.43%) at 1,474.57.
All ten economic sectors ended higher led by materials sector. Majority of thirty Dow components ended higher led by Coco Cola and Johnson & Johnson.
Shares of Coca-Cola rose 5.7% after the beverage maker reported first-quarter results that beat expectations, while retailer Target warned first-quarter earnings would come in below expectations, taking a toll on Target shares. A defensive bid also buoyed the health care sector where Johnson & Johnson gained 2.1% after beating on earnings.
In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.6% on Tuesday.
At Wall Street, domestic economic news showed that March housing starts outpaced expectations. Even though annualized housing starts surpassed the one million mark, all of March gains resulted from multi-family construction. Those starts increased by nearly 100,000 from 318,000 in February to an unsustainable 417,000. As a result, multifamily construction is likely to retreat next month.
Meanwhile, single-family starts fell from 650,000 in February to 619,000 in March. That was the first decline since November. The decline is likely not the start of a new steady downward path, as the February starts number was well above trend following a substantial upward revision (from 618,000). Excluding the February gain, single-family starts have remained flat since December.
The upbeat housing report boosted building-related companies, with W.W. Grainger up 7.2% and PulteGroup up 4.2%.
Looking at the remainder of today's economic data, consumer prices fell 0.2% in March after increasing 0.7% in February. Market had expected prices to decrease 0.1%. Excluding food and energy, core prices increased 0.1% after rising 0.2% in February. The market had expected core prices to increase by 0.2% for a second consecutive month.
Crude-oil prices ended flat on Tuesday, 16 April 2013 at Nymex. Prices ended marginally higher for first time in four sessions as supply concerns kept a pressure on prices. Light and sweet crude for May ended higher by a penny to settle at $88.72 a barrel on the New York Mercantile Exchange on Monday. Prices fell to a low of $87 during intra day trading.
The EIA is due to release its weekly U.S. oil-inventories report on Wednesday. Market expects U.S. commercial crude-oil supplies to have risen 1.25 million barrels in the week ended April 12. They're also looking for a decline of 1.1 million barrels in gasoline stockpiles and an 850,000-barrel fall in distillate inventories.
Bullion metal prices ended higher on Tuesday, 16 April 2013. Prices of gold and silver prices recovered from their two year low figures. Buyers stepped in the bullion market thinking that the recent selling was overdone. Gold for June delivery ended higher by $26.3 (1.9%) at $1,387.4 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday. Prices had dropped almost $200 a day earlier. May silver ended higher by $0.27 cents (1.1%) at $23.63 an ounce on Tuesday. Prices had lost 3.3% last week.
For every stock falling nearly five gained on the New York Stock Exchange, where 743 million shares traded. Composite volume topped 3.6 billion.
Indian ADRs ended substantially higher on Tuesday. In the IT space, Infosys was up 2.5% and Wipro was up 1.7%. In the Banking space, HDFC Bank was up 2.9% and ICICI Bank was up 5.7%. In the Telecom space, Tata Communication was up 3.6%. In other space, Tata Motors was up 6.4%, Dr Reddys was up 3.9% and Sterlite was up 4.3%.
Only two items of note can be found on tomorrow's economic calendar. The weekly MBA Mortgage Index will be reported at 7:00 ET while the Federal Reserve will release its April Beige Book at 14:00 ET. On the earnings front, Bank of America and Mattel will report their quarterly results ahead of the opening bell.
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