Stock Market News for October 5, 2012 - Market News
05 Outubro 2012 - 6:06AM
Zacks
A lower-than-expected increase in
initial claims coupled with encouraging same store sale numbers
from bellwether retailers helped markets close in the green.
Moreover, ECB President Mario Draghi said once conditions are met,
the European Central Bank would buy government bonds. Yesterday’s
gains led the S&P 500 to clinch its fourth win in a row and the
upcoming nonfarm payroll data from the government will be crucial
in deciding if the index can achieve a five-year high.
The Dow Jones Industrial Average
(DJI) gained 0.6% and ended at 13,575.36. The Standard & Poor
500 (S&P 500) was up 0.7% and finished yesterday’s trading
session at 1,461.40. The tech-laden Nasdaq Composite Index added
0.5% to climb to 3,149.46. The fear-gauge CBOE Volatility Index
(VIX) slumped 5.7% to settle at 14.55. Consolidated volumes on the
New York Stock Exchange, Nasdaq and American Stock Exchange were
roughly 6.1 billion shares, just short of the daily average volume
of 6.38 billion shares. The advancers easily outnumbered declining
stocks on the NYSE; as for 71% stocks that gained, 26% ended
lower.
Markets added gains yesterday
largely banking on the smaller-than-expected jump in initial claims
last week. According to the U.S. Department of Labor, seasonally
adjusted initial claims for the week ending September 29 rose 4,000
from the prior week to 367,000. This was lower than consensus
estimates of 368, 000. Apart from the slight rise in first time
unemployment benefit claims, the 4-week moving average remained
unchanged from the previous week at 375,000.
The initial claims report came just
a day after Automatic Data Processing’s (NASDAQ:ADP) National
Employment Report. ADP data revealed that U.S. companies added
162,000 jobs in September, higher than the expected 143,000. While
two back-to-back and bullish employment reports brought relief to
investors, they now await the government’s nonfarm payroll data
that is scheduled for release on Friday.
Nonfarm payroll numbers will not
only reveal current labor conditions, but a positive report will
most likely push S&P 500 to its highest level in five years. So
far this week, the S&P 500 has outperformed fellow benchmarks
with a 1.4% gain as compared to Dow’s and Nasdaq’s gains of 1% and
1.1%, respectively. Moreover, none of the 10 industry groups of the
S&P ended in the red yesterday and financials were one of the
largest gainers.
The Financial Select Sector SPDR
(XLF) added 1.5% and stocks such as American Express Company
(NYSE:AXP), Bank of America Corporation (NYSE:BAC), Citigroup, Inc.
(NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), The Goldman Sachs
Group, Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS) jumped 1.7%,
3.3%, 2.6%, 2.4%, 1.7% and 2.6%, respectively.
Talking about the sectors and
individual stocks, the retail sector was also a big gainer
yesterday. Bellwether retailers such as Costco Wholesale
Corporation (NASDAQ:COST), Gap Inc. (NYSE:GPS) and The TJX
Companies, Inc. (NYSE:TJX) gained 1.9%, 1.0%, and 0.6%,
respectively, following encouraging same store sales numbers. The
gains in these retail heavyweights and the eventual 1.6% jump in
SPDR S&P Retail (XRT) were also a major contributor to the
broader markets’ gains yesterday.
Positive news was not restricted to
the domestic front. European Central Bank (ECB) President Mario
Draghi said yesterday that the central bank was prepared to buy
government bonds once lending countries meet conditions. It about a
month ago that Mario Draghi had first announced the bond repurchase
plan to aid troubled Euro-zone economies. About the bond plan,
termed Outright Monetary Transactions (OMT), Draghi said: “I could
say that today, we are ready with our OMT…We have a fully effective
backstop mechanism in place once all the prerequisites are in place
as well”.
AUTOMATIC DATA (ADP): Free Stock Analysis Report
AMER EXPRESS CO (AXP): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
COSTCO WHOLE CP (COST): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
TJX COS INC NEW (TJX): Free Stock Analysis Report
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