U.S Stock Market
DJIA S & P 500 NASDAQ
15234 1654.25 3000.75
+0.38% +0.38% +0.18%
U.S Stocks churned higher yesterday, continuing their push into record territory. The Dow Jones Industrial Average rose 60.44 points, or 0.4%, to 15275.69, hitting a high for the sixth time in nine sessions. The S&P 500 gained 8.44 points, or 0.5%, to 1658.78, another record close. The index has only fallen two sessions this month. The Nasdaq Composite Index tacked on 9.01 points, or 0.3%, to 3471.62. Government data released revealed that U.S industrial production fell more than expected in April, contracting 0.5% after expanding a revised 0.3% in March. The Federal Reserve is currently buying $85 billion in assets such as mortgage debt or Treasury holdings from banks each month, a monetary stimulus tool known as quantitative easing that weakens the U.S Dollar to spur recovery, with stock prices rising as a side effect. Yesterday's
data convinced many investors such programs will stay in place for now. Prices at the wholesale level in the U.S disappointed as well, which also fueled sentiment that the Fed will continue with its liquidity injections. Asian markets were also mostly higher, with Japan's Nikkei Stock Average rallying 2.3%, closing at its highest level since December 2007. Japanese stocks were propelled by a weakening of the Yen.
Dow Jones Industrial Average
Blue chips rose 60.44 points, or 0.4%, to 15275.69, hitting a high for the sixth time in nine sessions. The consumer staples and financials sectors led the S&P 500 higher, gaining 1% and 0.9%, respectively. Consumer staples have underperformed the index this month, while financial shares have been its best
performing sector. Leading Dow Jones Industrial Average performers included American Express, up
1.76%, JPMorgan Chase, up 1.65%, and Procter & Gamble, up 1.54% and worst performers included
Hewlett-Packard, down 2.56%, Chevron, down 1.61%, and Alcoa, down 0.70%.
NASDAQ 100
The Technology Heavy Nasdaq tacked on 9.01 points, or 0.3%, to 3471.62. Tech stocks ended in green as
Shares of Google Inc. jumped yesterday passing the $900 mark for the first time as the company kicked
off its developers conference known as Google I/O. Google led the rest of the tech sector to moderate
gains. Google shares closed up 3.3% at $915.89 as the company delivered its opening keynote, which has so far included announcements of new developer tools. Zynga shares jumped more than 4% to $3.48 after the hedge fund Jana Partners bought more than 25 million shares in the social game maker, according to
a recent filing.
Crude Oil
Crude Oil futures dropped yesterday after a slew ofdisappointing economic indicators in Europe and the
U.S dampened spirits and fanned concerns the global economy continues to battle headwinds and will
demand less fuels and energy as a result. U.S inventory data offset losses. Better than expected
U.S. inventory data curbed losses. The U.S Energy Information Administration said in its weekly oil and
gasoline stockpile data earlier that crude oil stocks fell by 624,000 barrels last week, more than market calls
for a decline of 330,000 barrels, suggesting greater demand than anticipated. The U.S is the world’s
biggest oil consuming country, responsible for almost 22% of global oil demand.
Precious and Base Metals
Bullion inched up yesterday after dropping for four straight sessions, as the Greenback eased and
outflows from exchange traded funds halted, but firm equities could lure away investors seeking better returns and keep a lid on Gold's gains. While Bullion has recovered around 8% from a two year
trough hit in April, its safe haven appeal has been battered by record high U.S equities, signs of an
improving U.S economy, and fears of a slowdown in demand by top consumer India. Bullion rose 0.19%
to $1,428.09 an ounce. Gold has slumped more than 14% so far this year, after gaining in the past 12
consecutive years as easy monetary policy burnished bullion's appeal as a hedge against inflation.
Holdings at SPDR Gold Trust, the largest gold backed ETF, were unchanged at 33.8 million ounces earlier
this week after falling almost daily. But the holdings were still within sight of their lowest since March
2009 that was hit after funds cut their exposure to bullion, whose historic fall in April took keen gold
investors and bulls by surprise. Gold prices drew support from a softer Greenback, which made
commodities priced in the U.S Dollar cheaper for holders of other currencies. But a rally is U.S stocks
to fresh highs on yesterday curbed investors' interest in Precious Metal, while a slowdown in
Indian demand for the Yellow Metal also weighed.
Traditional Agricultural
Wheat futures were lower on fund and technical selling, along with spillover from the dollar. Spring
wheat planting conditions have improved thanks to drier weather and warmer soil temperatures, and
parts of South Dakota are getting rain. Soybeans were lower on fund and technical selling. However,
the nearby supply remains tight and although they have eased, there are still shipping delays out of some of Brazil’s largest ports. Corn was lower on fund and technical selling. Most of the Midwest
should see good planting progress over the next couple of days ahead of more rain around the
region. The nearby supply remains tight, so tight in fact, that purchasers from Asia have made the
unusual move of buying from South Africa with Taiwan and Japan both noted as buyers.
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