U.S Stock Market
DJIA S & P 500 NASDAQ
15055 1630.75 2981.00
-0.07% +0.06% +0.14%
U.S Stocks finished lower yesterday despite better than expected retail sales data, as investors sold for profits after three weeks of gains. Weeks of surprisingly strong monthly jobs reports, weekly jobless claims data and quarterly earnings have pushed stocks to the point that profit taking kicked in yesterday. The Commerce Department reported earlier that U.S retail sales rose 0.1% in April, defying expectations for a 0.3% decline. March's figure was revised down to a 0.5% contraction from a 0.4% contraction. Core
retail sales, which exclude automobile sales, fell by 0.1% last month, in line with expectations. The Federal Reserve and its bond buying program were a hot topic, following a Wall Street Journal report over the weekend that said central bank officials are considering an exit strategy for the massive stimulus measures that have been fueling the economy since late 2008. The Dow Jones industrial average slipped about
0.2%, while the S&P 500 and Nasdaq finished barely higher. But the gain in the S&P 500 was enough to push it to another record close. Asian markets ended mixed after a report showed China's industrial production expanded in April, but failed to meet expectations. The Shanghai Composite declined 0.2% and the Hang Seng dropped 1.5%.
Dow Jones Industrial Average
Blue chips slid 26.81 points, or 0.2%, to 15,091.68. Almost 5.3 billion shares traded hands on U.S
exchanges, or 16% below the three month average, as about seven stocks declined for every five that advanced. Leading Dow Jones Industrial Average performers included Pfizer, up 2.15%, JPMorgan, up 1.49%, and Microsoft, up 1.16% and worst performers included Alcoa, down 1.84%, DuPont, down 1.79%, and Intel, down 1.67%.
NASDAQ 100
The Technology Heavy Nasdaq rose 2 points to close at 3,438. Tech stocks put in a mildly upbeat performance yesterday, as the latest events in thesaga involving the efforts to take Dell Inc. private gained attention among investors. Dell shares rose 7 cents to close at $13.52 after the PC Company asked activist investor Carl Icahn, and Southeastern Asset Management Inc., to provide more information about
Icahn’s alternative takeover proposal. Cisco Systems Inc. edged up by 17 cents a share to close at $21.27. Yahoo Inc. shares shed 1.6%, to close at $26.39. Among other leading tech stocks, losses came
from Hewlett-Packard Co., Oracle Corp. and International Business Machines Corp.
Crude Oil
Crude Oil futures fell yesterday after U.S retail sales beat expectations and sent the U.S Dollar rising, while
Chinese industrial output figures missed market consensus and fanned fears demand may wane in
Asia. A firming U.S Dollar makes oil an increasingly expensive commodity in Dollar denominated exchanges, especially in the eyes of investors holding other currencies. The American Petroleum Institute will release its inventories report today, while tomorrow’s government report could show crude stockpiles rose by 0.2 million barrels to hit the highest level since 1982. The U.S is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand. Oil’s gains were limited as investors remained concerned over the economic outlook in China.
Precious and Base Metals
Bullion prices dropped yesterday after stronger than expected U.S retail sales sparked demand for the U.S
Dollar, which tends to trade inversely from the Precious Metal. Moves in the Gold price this year have largely tracked shifting expectations as to whether the U.S central bank would end its bond buying program sooner than expected. Bullion held on to losses after the U.S Commerce Department said that retail sales inched up by a seasonally adjusted 0.1% in April, confounding expectations for a 0.3% decline. Core retail sales, which exclude automobile sales, fell by a seasonally adjusted 0.1% last month, in line with expectations. Bullion prices came under further pressure from a broadly stronger Greenback, as Dollar priced commodities become more expensive to investors holding other currencies when the U.S Dollar gains. Copper futures came under pressure after official data showed that industrial production in China rose at a slower rate than expected last month. Official data released earlier showed that industrial production in China
rose 9.3% in April, below expectations for a 9.5% increase and following an 8.9% rise the previous
month. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Traditional Agricultural
Wheat futures were higher on short covering and technical buying. The big focus for Chicago, Kansas
City and Minneapolis continues to be crop development weather. Soybeans were higher on commercial buying and short covering. The nearby supply remains extremely tight with no deliveries on the May contract and demand continues to look solid. Gains in the new crop were limited by the recent USDA production
projection and increased export competition from South America. Corn was higher on short covering and commercial buying. The nearby supply of corn is also tight and demand looks good, with a lot of export interest recently from Asia.
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