Stock Market News for March 7, 2013 - Market News
07 Março 2013 - 6:36AM
Zacks
The Dow Jones and the S&P 500
garnered further gains following encouraging economic data. The Dow
touched a new high while the S&P came closer to its highest
point. Improved job data provided by the ADP report acted as a
catalyst to investor sentiment yesterday. Meanwhile, positive
sentiments were also fuelled by encouraging data provided by the
Fed’s Beige Book. Among the top ten S&P 500 industry groups,
materials were the biggest gainer and consumer staples stocks were
the biggest losers.
The Dow Jones Industrial Average
(DJI) gained 0.3% to close the day at 14,296.24. The S&P 500
increased 0.1% to finish yesterday’s trading session at 1,541.46.
The tech-laden Nasdaq Composite Index lost 0.1% to end at 3,222.36.
The fear-gauge CBOE Volatility Index (VIX) gained almost 0.1% to
settle at 13.53. Consolidated volumes on the New York Stock
Exchange, American Stock Exchange and Nasdaq were roughly 6.3
billion shares, below the daily average of 6.48 billion shares.
Advancing stocks outnumbered the decliners. For the 54% that
advanced, 43% declined.
Positive economic data fuelled
optimism in investor sentiment yesterday. According to the Federal
Reserve’s Beige Book, the country’s housing market is experiencing
a recovery and consumer spending is increasing, indicating growth
in the economy. There has been a gradual growth in January and
early-February. Most of the districts witnessed growth in consumer
spending, retail sales, tourism, manufacturing sector, auto sector
and residential construction industries. On the negative side,
districts faced inventory shortage problems and pricing pressures.
Wages were mostly constant and there was a shortage of skilled
people.
Positive investor sentiment was
also fuelled by encouraging private sector employment numbers.
According to Automatic Data Processing (NASDAQ:ADP) 198,000 jobs
were added to the U.S. nonfarm private business sector from January
to February. Out of 198,000, 77,000 jobs were added by small
businesses, 65,000 jobs were added by medium businesses and 57,000
were added by large businesses. The goods-producing sector added
34,000 jobs, of which 9,000 were in the manufacturing sector and
21,000 in the construction sector. Service sector accounted for
164,000 more jobs.
Meanwhile, the U.S. Department of
Commerce, new orders for manufactured goods decreased in January by
2% or $9.6 billion. This is was above the consensus estimate of a
decrease of 2.3% and below December’s figure of a 1.3% increase.
New orders have been down for two out of three months. Shipments
decreased marginally by 0.2% or $1.0 billion. This is the second
consecutive month when the shipments have decreased. Unfulfilled
orders declined after four consecutive monthly increases of 0.2% or
$2.0 billion.
On the earnings front, shares of
Staples, Inc. (NASDAQ:SPLS) dropped 7.2% after quarterly revenue
missed the Street’s estimates. However, earnings marginally beat
the expectations. The company also provided weak guidance for the
next fiscal due to lower discretionary spending in North America
and Europe.
Materials stocks were the biggest
gainers among the top ten S&P 500 groups. The Materials Select
Sector SPDR (XLB) gained 0.9%. Stocks such as the Dow Chemical
Company (NYSE:DOW), Freeport-McMoRan Copper & Gold Inc.
(NYSE:FCX), LyondellBasell Industries NV (NYSE:LYB), Ecolab Inc.
(NYSE:ECL) and International Paper Company (NYSE:IP) gained 1.6%,
4.1%, 2.9%, 0.5% and 1.8%, respectively.
Consumer staples were the biggest
losers among the top ten S&P 500 groups. The Consumer Staples
Select Sect. SPDR (XLP) lost 0.2%. Stocks such as Wal-Mart Stores,
Inc. (NYSE:WMT), PepsiCo, Inc. (NYSE:PEP), Altria Group Inc.
(NYSE:MO), Walgreen Company (NYSE:WAG) and General Mills, Inc.
(NYSE:GIS) lost 0.5%, 0.1%, 0.3%, 1.9% and 0.1%, respectively.
AUTOMATIC DATA (ADP): Free Stock Analysis Report
DOW CHEMICAL (DOW): Free Stock Analysis Report
ECOLAB INC (ECL): Free Stock Analysis Report
FREEPT MC COP-B (FCX): Free Stock Analysis Report
GENL MILLS (GIS): Free Stock Analysis Report
INTL PAPER (IP): Free Stock Analysis Report
LYONDELLBASEL-A (LYB): Free Stock Analysis Report
ALTRIA GROUP (MO): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
STAPLES INC (SPLS): Free Stock Analysis Report
WALGREEN CO (WAG): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis Report
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