Updated: 04-21-2015

The Market at 04:10PM ET
Dow: -85.34… | Nasdaq: +19.50… | S&P: -3.11…
NASDAQ Vol: 1.59 bln… Adv: 1454… Dec: 1414…
NYSE Vol: 674.4 mln… Adv: 1530… Dec: 1526…

Moving the Market

Dow components DuPont (DD), IBM (IBM), Travelers (TRV), and United Technologies (UTX) beat bottom-line estimates

Dollar Index surrenders overnight gain

Sector Watch
Strong: Consumer Staples, Health Care, Technology
Weak: Energy, Industrials, Materials, Telecom Services

04:10PM ET
[BRIEFING.COM] The stock market ended Tuesday on a mixed note with the Dow and S&P 500 losing 0.5% and 0.2%, respectively, while the Nasdaq Composite (+0.4%) outperformed.

Today's session was relatively quiet as equity indices diverged during the opening hour of action and maintained narrow ranges into the afternoon. The S&P 500 opened with a nine-point gain, but was back near its flat line before the opening hour ended.

For its part, the Nasdaq spent the day near its early high thanks to solid gains among biotech names after Teva Pharmaceutical (TEVA 64.14, +0.85) offered to acquire Mylan (MYL 74.11, +6.06) for $82.00/share in cash and stock. The two names posted respective gains of 1.3% and 8.9% while the iShares Nasdaq Biotechnology ETF (IBB 364.50, +6.55) settled higher by 1.8%. Furthermore, the health care sector advanced 0.7% and was the only sector with a gain larger than 0.1%.

Meanwhile, the consumer discretionary space (+0.1%) was the second-best performer with homebuilders showing broad strength. DR Horton (DHI 28.53, +0.49) jumped 1.8% ahead of tomorrow's earnings report while the broader iShares Dow Jones US Home Construction ETF (ITB 27.87, +0.39) gained 1.4%. On the earnings front, Under Armour (UA 83.54, -4.22) tumbled 4.8% after reporting in-line results and guiding below analyst expectations.

In other earnings, four Dow components delivered bottom-line beats since yesterday, but only one-Travelers (TRV 101.88, -4.26)-showed year-over-year revenue growth while United Technologies (UTX 116.95, +0.44), DuPont (DD 70.69, -2.15), and IBM (IBM 164.26, -1.90) saw their top lines contract.

Overall, cyclical sectors were responsible for the slide from opening highs with four of six growth-sensitive groups registering larger losses than the S&P 500. The energy sector (-1.0%) finished at the bottom while crude oil fell 2.3% to $56.58/bbl. The dollar was not a big factor today as the Dollar Index (97.96, +0.02) surrendered its modest overnight gain during morning action.

Elsewhere among cyclical groups, financials (-0.5%) and industrials (-0.2%) lagged with the latter pressured by General Electric (GE 26.62, -0.40). The conglomerate surrendered 1.5% while transport stocks overcame their early weakness. The Dow Jones Transportation Average added 0.3% even though Kansas City Southern (KSU 105.17, -2.20) lost 2.1% after missing bottom-line estimates.

Treasuries ended on their lows after sliding from their overnight highs, sending the 10-yr yield up two basis points to 1.91%.

Today's participation was relatively light with fewer than 700 million shares changing hands at the NYSE floor.

Investors did not receive any economic data today, but tomorrow's session will include the 7:00 ET release of the weekly MBA Mortgage Index, February FHFA Housing Price Index at 9:00 ET, and the Existing Home Sales report for March at 10:00 ET (Briefing.com consensus 5.05 million).
  • Nasdaq Composite +5.9% YTD 
  • Russell 2000 +4.9% YTD 
  • S&P 500 +1.9% YTD 
  • Dow Jones Industrial Average +0.7% YTD
Dow: -85.34… | Nasdaq: +19.50… | S&P: -3.11…
NASDAQ Adv/Dec 1454/1414. …NYSE Adv/Dec 1530/1526.

03:40PM ET
[BRIEFING.COM]
  • The dollar index is back near the flat line in afternoon trade
  • WTI crude oil sold off in afternoon trade, but held above the $56/area
  • June crude finished the day $0.03 lower at $57.88/barrel
  • May nat gas gained $0.04 to $2.58/MMBtu
  • Gold held above $1200/oz.. ending +$9.5 at $1203.00/oz, while May silver ended $0.11 higher at $16.00/oz
Dow: -8.48… | Nasdaq: +20.51… | S&P: -2.85…
NASDAQ Adv/Dec 1348/1411. …NYSE Adv/Dec 1525/1507.

03:00PM ET
[BRIEFING.COM] The S&P 500 trades lower by 0.1% with one hour remaining in the session. The benchmark index held a modest gain at the start of today's session, but a pullback during the opening hour has kept the index near its flat line since the opening slide.

Investors received a full batch of earnings this morning and more results will be released after the close with a few tech names like Broadcom (BRCM 43.95, +0.33), Yahoo! (YHOO 44.56, -0.09), VMware (VMW 85.47, +1.20), and Cree (CREE 35.82, +0.72) on the schedule.
Dow: -72.63… | Nasdaq: +24.77… | S&P: -1.30…
NASDAQ Adv/Dec 1422/1375. …NYSE Adv/Dec 1575/1458.

02:30PM ET
[BRIEFING.COM] Equity indices have not done much in recent action with the S&P 500 remaining just below its flat line.

Six sectors continue showing losses while the consumer discretionary space has extended its advance to 0.3%. Homebuilders have contributed to the relative strength with the iShares Dow Jones US Home Construction ETF (ITB 27.83, +0.35) trading higher by 1.3%. However, apparel names are mixed with Under Armour (UA 83.62, -4.14) down 4.7% after reporting in-line results and guiding below analyst expectations.

Elsewhere, Treasuries have slipped to new lows, pushing the 10-yr yield up to 1.91% (+2 bps).
Dow: -61.02… | Nasdaq: +26.71… | S&P: -0.87…
NASDAQ Adv/Dec 1426/1344. …NYSE Adv/Dec 1560/1463.

01:55PM ET
[BRIEFING.COM] The major averages remain near their recent levels.

With no notable economic releases, we look ahead to Friday's durable goods report.

Durable goods orders declined 1.4% in February after increasing 1.9% in January. The Briefing.com Consensus expects durable goods orders increased 0.5% in March.

Aircraft orders, which provided the bulk of the January gains, pulled back in February.

The underlying data from Boeing (BA) in March is a little harder to dissect. In terms of numbers, aircraft orders fell from 72 units in February to 39 in March. In dollar value, orders actually increased month-to-month in March. Seasonal adjustments, however, could play a role as orders were down significantly from a year ago in terms of both dollar value and number of units sold.
Dow: -74.33… | Nasdaq: 23.24… | S&P: -2.75…
NASDAQ Adv/Dec 1413/1331. …NYSE Adv/Dec 1527/1466.

01:30PM ET
[BRIEFING.COM] The major U.S. indices maintain their slow drift off earlier lows, with the S&P 500 posting small gains in recent trade and the Dow Jones Industrial Average attempting to recapture 18,000.

In commodities, select weakness in WTI crude oil (-1.5% to $57/bbl) continues to weigh on the energy sector (-0.8%) ahead of tonight's API inventory data.

At the top of the hour, the U.S. Justice Department announced it had arrested and charged a UK futures trader in relation to the May 2010 'Flash Crash'. The complaint alleges that Navinder Singh Sarao used an automated program to manipulate the E-Mini S&P 500 futures contracts markets, which contributed to the significant decline in the U.S. stock market.

After the bell, some notable earnings expected to be released include Yahoo (YHOO 44.72, +0.06), Amgen (AMGN 168.28, +2.31), Discover Financial (DFS 59.54, +0.05), Chipotle Mexican Grill (CMG 698.12, +11.19), and numerous others.
Dow: -49.14… | Nasdaq: +29.09… | S&P: +0.24…
NASDAQ Adv/Dec 1470/1261. …NYSE Adv/Dec 1588/1399.

12:55PM ET
[BRIEFING.COM] The major averages are mixed at midday with the Dow (-0.4%) and S&P 500 (-0.1%) hovering in the red while the Nasdaq (+0.5%) remains not far below its opening high.

Equity indices began the Tuesday session on an upbeat note after more than 75 companies reported their earnings between yesterday's closing bell and today's open. However, relative weakness among most cyclical sectors has forced the S&P 500 beneath its flat line. Only four sectors remain in the green at this time and health care (+0.6%) is the only sector with a midday gain larger than 0.1%.

The countercyclical health care space has been boosted by biotechnology after Teva Pharmaceutical (TEVA 64.41, +1.12) offered to acquire Mylan (MYL 74.70, +6.66) for $82.00/share in cash and stock. The two names hold respective gains of 1.8% and 9.8% while the iShares Nasdaq Biotechnology ETF (IBB 363.88, +5.93) is higher by 1.7%, lending support to the Nasdaq Composite.

Meanwhile, the price-weighted Dow Jones Industrial Average has been pressured by losses in 22 of its 30 components. Four Dow members reported better than expected earnings, but only United Technologies (UTX 117.15, +0.64) has been able to stay in the green while DuPont (DD 70.64, -2.20), IBM (IBM 164.12, -2.04), and Travelers (TRV 102.88, -3.26) sit in the red. Furthermore, it is worth mentioning that Travelers was the only Dow component to report year-over-year revenue growth, but the stock is lower by 3.1%, contributing to the underperformance of the financial sector (-0.3%).

Elsewhere among cyclical groups, energy (-0.8%) and industrials (-0.5%) weigh while the technology sector (+0.1%) hovers just above its flat line. Large cap components have struggled through the first half, but chipmakers have offset some of that weakness with the PHLX Semiconductor Index up 0.5%.

Treasuries have turned negative after erasing their overnight gains, pushing the 10-yr yield higher by a basis point to 1.90%.
Dow: -65.26… | Nasdaq: +22.74… | S&P: -1.61…
NASDAQ Adv/Dec 1433/1276. …NYSE Adv/Dec 1548/1418.

12:25PM ET
[BRIEFING.COM] Equity indices remain near their recent levels with the S&P 500 trading just below its flat line.

Four sectors trade in the green, but only the health care space (+0.7%) displays a gain larger than 0.1% at this juncture. The countercyclical sector received a boost in the early going after Teva Pharmaceutical (TEVA 64.51, +1.22) offered to acquire Mylan (MYL 74.53, +6.49) for $82.00/share in cash and stock.

Thanks to today's gain, the health care sector is up 1.2% for the week, only trailing the technology sector, which gained 1.8% yesterday and trades little changed today.

Elsewhere, Treasuries remain in the red with the 10-yr yield up a basis point at 1.90%.
Dow: -76.24… | Nasdaq: +21.00… | S&P: -2.13…
NASDAQ Adv/Dec 1417/1255. …NYSE Adv/Dec 1544/1408.

11:55AM ET
[BRIEFING.COM] The Dow (-0.4%) and S&P 500 (-0.2%) have widened their losses while the Nasdaq (+0.4%) continues showing relative strength thanks to daylong outperformance in the biotech group.

The iShares Nasdaq Biotechnology ETF (IBB 364.76, +6.81) is now up 1.9% while the broader health care sector (+0.6%) is the only group remaining in the green.

On the flip side, the materials sector (-1.1%) is the weakest performer, but it is worth noting the sector represents just 3.5% of the market. Meanwhile, heavily-weighted energy (-0.8%), industrials (-0.6%), and financials (-0.3%) display slimmer losses.
Dow: -77.46… | Nasdaq: +18.30… | S&P: -3.40…
NASDAQ Adv/Dec 1430/1229. …NYSE Adv/Dec 1463/1471.

11:25AM ET
[BRIEFING.COM] The S&P 500 (+0.1%) continues hovering just above its flat line while the Nasdaq Composite (+0.5%) remains just below its session high.

Elsewhere, the Dollar Index (97.80, -0.14) held an overnight gain, but is now down 0.1% after sliding to lows in recent action. As a result, the euro is now up 0.2% against the dollar (1.0760) after being down more than 0.5% earlier.

On a somewhat related note, Treasuries remain near their session lows with the benchmark 10-yr yield up a basis point at 1.90%.
Dow: -41.70… | Nasdaq: +26.52… | S&P: +1.40…
NASDAQ Adv/Dec 1532/1080. …NYSE Adv/Dec 1681/1224.

10:55AM ET
[BRIEFING.COM] Recent action saw a pullback among the major averages with the Dow (-0.3%) and S&P 500 turning negative while the Nasdaq Composite (+0.4%) maintains a slim gain.

The pullback from opening highs has been rooted in cyclical sectors with five of six growth-sensitive groups trading in the red. The technology sector remains in the green, but that slight uptick appears to be in jeopardy.

Elsewhere, another influential group-industrials (-0.5%)-trails the broader market with the largest component-General Electric (GE 26.80, -0.22)-down 0.8%. In addition, transport stocks underperform with the Dow Jones Transportation Average lower by 0.3% after Kansas City Southern (KSU104.04, -3.33) reported disappointing results.
Dow: -46.54… | Nasdaq: +21.39… | S&P: -0.57…
NASDAQ Adv/Dec 1432/1149. …NYSE Adv/Dec 1582/1276.

10:40AM ET
[BRIEFING.COM]
  • Corn futures are lower in early trade, after bearish data was released within the USDA Crop Progress Report yesterday. May corn is now -1.3% at $3.73/bu 
  • July soybean futures are also trending modestly lower, now -0.5% at $9.75/bu while May wheat is +0.7% at $5.02/bu
  • Crude oil has been in the red almost all day, and is now -0.2% at $57.78/barrel. However, geopolitical concerns in Yemen continue to create potential upside volatility.
  • Natural gas futures are trading sharply higher this morning, following an anticipated cooling period for Northeast US weather conditions. 
  • May nat gas is now +1.9% at $2.60/MMBtu
  • June gold is now +0.3% at $1197.00/oz and May silver is +0.2% at $15.92/oz
  • May copper currently stands -1% at $2.70/lb
  • The dollar index is now +0.3% at 98.20 
Dow: -37.63… | Nasdaq: +22.69… | S&P: +0.99…
NASDAQ Adv/Dec 1414/1127. …NYSE Adv/Dec 1572/1282.

10:00AM ET
[BRIEFING.COM] The S&P 500 (+0.2%) has cut its early advance in half while the Nasdaq Composite (+0.5%) remains near its best level of the session with help from high-beta chipmaker and biotechnology names.

The iShares Nasdaq Biotechnology ETF (IBB 364.38, +6.43) has extended its gain to 1.8% while the PHLX Semiconductor Index has climbed 0.7%. However, large cap technology names have struggled in the early going, which has limited the tech sector to a slim gain of 0.2%.

Elsewhere, the Dollar Index (98.33, +0.38) is higher by 0.4% after climbing off its intraday low.
Dow: -0.73… | Nasdaq: +23.44… | S&P: +3.08…
NASDAQ Adv/Dec 1391/979. …NYSE Adv/Dec 1555/1197.

09:40AM ET
[BRIEFING.COM] As expected, the major averages registered modest gains in the early going with the Nasdaq Composite (+0.5%) setting the pace. Meanwhile, the S&P 500 (+0.2%) follows not far behind with seven sectors trading in the green.

The health care sector (+0.8%) holds the early lead thanks to pre-market news that Teva Pharmaceutical (TEVA 64.41, +1.12) has offered to acquire Mylan (MYL 73.65, +5.61) for $82.00/share. The potential acquisition has boosted the overall biotech group with the iShares Nasdaq Biotechnology ETF (IBB 361.77, +3.82) trading higher by 1.1%.

On the downside, energy (-0.4%) and materials (-0.5%) lag with DuPont (DD 71.32, -1.52) pressuring the materials sector.

Treasuries have surrendered their gains with the 10-yr yield returning to 1.89%.
Dow: +27.09… | Nasdaq: +24.99… | S&P: +4.81…
NASDAQ Adv/Dec 1309/935. …NYSE Adv/Dec 1598/1088.

09:09AM ET
[BRIEFING.COM] S&P futures vs fair value: +7.20. Nasdaq futures vs fair value: +25.40. The stock market is on track for a modestly higher open as futures on the S&P 500 trade seven points above fair value.

The Q1 earnings season has entered full swing with nearly 100 companies reporting their results since yesterday's closing bell. That list has included a handful of Dow components with DuPont (DD 73.08, +0.24), IBM (IBM 165.20, -0.96), Travelers (TRV 104.50, -1.64), and United Technologies (UTX 118.40, +1.89) all beating bottom-line estimates. However, Travelers was the only name of the bunch that reported year-over-year revenue growth.

In other corporate news, Mylan (MYL 74.20, +6.16) has jumped 9.1% in pre-market after Teva Pharmaceutical (TEVA 64.60, +1.31) offered to acquire the company for $82.00/share in cash and stock.

Treasuries hold slim gains with the 10-yr yield down a basis point at 1.88%.

08:53AM ET
[BRIEFING.COM] S&P futures vs fair value: +6.70. Nasdaq futures vs fair value: +23.20. The S&P 500 futures trade seven points above fair value.

Bolstered by Wall Street's rally on Monday, which flowed from the policy stimulus provided by the People's Bank of China over the weekend, markets in Japan, Hong Kong, and China registered big gains in Tuesday's trading. Regional markets were mixed.
  • In economic data: 
    • Japan's Leading Index slipped to 104.8 from 105.0 (expected 105.3) 
    • Hong Kong's March CPI +4.5% year-over-year, as expected (prior 4.6%) 
------
  • Japan's Nikkei increased 1.4% on steady buying efforts and closed at its highs for the session. The utilities (+2.3%), financial (+1.9%) and industrial (+1.9%) sectors led the gains. Individual standouts included Tokyu Corp (+6.0%), Credit Saison Co (+5.1%), Daiichi Sankyo Co (+4.4%), T&D Holdings (+4.1%), and Astellas Pharma (+4.0%). Yaskawa Electric (-2.5%) led decliners and was one of only six stocks that declined more than 1.0%. Out of the 225 index members, 178 ended higher, 36 finished lower, and 11 were unchanged. 
  • Hong Kong's Hang Seng increased 2.8%, breaking its two-day losing streak in convincing fashion. The consumer cyclical (+8.8%), communication (+5.5%), and financial (+2.5%) sectors powered the advance. Leading gainers included China Resources Enterprise (+55.9%), whose controlling shareholder is going to purchase all of its non-retail assets, China Mobile (+7.5%), Ping An Insurance Group (+5.2%), and Hong Kong Exchanges & Clearing (+5.1%). Hengan Intl (-1.8%) and China Shenhua Energy (-1.7%) were the only stocks that fell more than 1.0%. Out of the 50 index members, 47 ended higher and 3 finished lower. 
  • China's Shanghai Composite increased 1.8% as Wall Street's positive showing helped Chinese investors refocus on the stimulative effects of the PBOC's cut to the reserve requirement ratio. The consumer non-cyclical (+5.0%), communications (+4.7%), and financial (+3.6%) sectors helped drive a broad-based advance that left the Shanghai Composite up 115% over the last year.
Major European indices have climbed off their lows in recent action with Germany's DAX (+0.9%) in the lead. The European Central Bank is reportedly looking at forcing haircuts on Greek banks that have accessed Emergency Liquidity Assistance in order to encourage more reform progress by the country's government.
  • Economic data was limited: 
    • Eurozone ZEW Economic Sentiment rose to 64.8 from 62.4 (expected 63.7) 
    • Germany's April ZEW Economic Sentiment fell to 53.3 from 54.8 (consensus 55.3) while ZEW Current Conditions improved to 70.2 from 55.1 (expected 56.0) 
------
  • Germany's DAX is higher by 0.9% with all but four names in the green. SAP leads with a gain of 2.1% despite missing bottom-line estimates on better than expected revenue. Financials lag with Munich Re and Commerzbank down 1.2% and 0.6%, respectively. 
  • In France, the CAC has added 0.3% with Publicis Groupe trading higher by 6.0% after reporting better than expected results. Carmakers Peugeot (+4.3%) and Renault (+3.9%) also outperform while bank shares lag. Credit Agricole and Societe Generale are down 0.7% and 1.2%, respectively. 
  • UK's FTSE hovers just above its flat line. Consumer names Sky (+5.0%), InterContinental Hotels (+2.9%), and ITV (+0.7%) outperform while miners lag. Anglo American, BHP Billiton, and Rio Tinto display losses between 1.9% and 3.0%. 
  • Italy's MIB trades lower by 0.4% amid weakness in bank shares. BMPS, Banca di Milano Scarl, Banco Popolare, and Unicredit are down between 1.5% and 2.4%.

08:25AM ET
[BRIEFING.COM] S&P futures vs fair value: +6.40. Nasdaq futures vs fair value: +19.20. U.S. equity futures continue holding gains with S&P 500 futures six points above fair value.

The Dollar Index (98.05, +0.11) registered its second consecutive gain yesterday and a modest overnight advance has the index trading higher by 0.1% this morning. Once again, the bulk of the gain has come against the euro, which has surrendered 0.3% to the dollar (1.0715).

Meanwhile, other currency pairs are little changed with the U.S. dollar adding 0.1% against the pound and the yen.

07:56AM ET
[BRIEFING.COM] S&P futures vs fair value: +7.40. Nasdaq futures vs fair value: +19.80. U.S. equity futures hold modest gains amid upbeat action overseas. The S&P 500 futures hover seven points above fair value.

Today represents the first busy day of Q1 earnings with more than 75 results crossing between yesterday's closing bell and today's open. So far, most of the reports have beat on the bottom line, but positive revenue growth has not been nearly as common.

Investors did not receive any economic data today.

Treasuries hold gains with the 10-yr yield down two basis points at 1.87%.

In U.S. corporate news of note:
  • Credit Suisse (CS 26.37, -0.73): -2.7% despite beating earnings and revenue estimates. 
  • DuPont (DD 72.92, +0.08): +0.1% following its bottom-line beat on light revenue. The Dow component raised its quarterly dividend to $0.49 from $0.47. 
  • IBM (IBM 167.25, +1.09): +0.7% after beating earnings estimates and reaffirming its guidance. 
  • Lam Research (LRCX 79.00, +7.01): +9.7% in reaction to better than expected results and above-consensus guidance. 
  • SAP (SAP 74.25, +1.93): +2.7% after missing bottom-line estimates on better than expected revenue. 
  • Travelers (TRV 104.02, -2.12): -2.0% despite beating bottom-line estimates on light revenue, increasing its buyback, and boosting its quarterly dividend by 11.0% to $0.61. 
  • Under Armour (UA 83.65, -4.11): -4.4% after reporting in-line results and guiding below analyst expectations. 
  • United Technologies (UTX 117.75, +1.24) +1.1% after better than expected earnings overshadowed below-consensus revenue.
Reviewing overnight developments:
  • Asian markets ended mixed, but Japan's Nikkei +1.4%, China's Shanghai Composite +1.8%, and Hong Kong's Hang Seng +2.8% posted gains. 
    • In economic data: 
      • Japan's Leading Index slipped to 104.8 from 105.0 (expected 105.3) 
      • Hong Kong's March CPI +4.5% year-over-year, as expected (prior 4.6%) 
    • In news: 
      • The Reserve Bank of Australia released its latest minutes, which called for allowing more data to come in before making the next policy move. The RBA held its key rate at 2.25% at its most recent meeting.
  • Major European indices have climbed off their lows in recent action. Germany's DAX +0.9%, UK's FTSE +0.1%, and France's CAC +0.3%. Elsewhere, Italy's MIB -0.4% and Spain's IBEX +0.6%. 
    • Economic data was limited: 
      • Eurozone ZEW Economic Sentiment rose to 64.8 from 62.4 (expected 63.7) 
      • Germany's April ZEW Economic Sentiment fell to 53.3 from 54.8 (consensus 55.3) while ZEW Current Conditions improved to 70.2 from 55.1 (expected 56.0) 
    • Among news of note: 
      • The European Central Bank is reportedly looking at forcing haircuts on Greek banks that have accessed Emergency Liquidity Assistance in order to encourage more reform progress by the country's government.

05:52AM ET
[BRIEFING.COM] S&P futures vs fair value: +6.00. Nasdaq futures vs fair value: +17.30.

05:52AM ET
[BRIEFING.COM] Nikkei...19909.09...+274.60...+1.40%.  Hang Seng...27850.49...+755.60...+2.80%.

05:52AM ET
[BRIEFING.COM] FTSE...7049.95...-2.20...0.00%.  DAX...11948.06...+56.20...+0.50%.

04:10PM ET
[BRIEFING.COM] The stock market began the week on an upbeat note with the S&P 500 (+0.9%) erasing the bulk of its decline from Friday. The benchmark index reclaimed its 50-day moving average (2,086) at the start and spent the remainder of the day near its early high while the Dow Jones Industrial Average (+1.2%) and Nasdaq Composite (+1.3%) outperformed.

Global equity markets enjoyed a strong start to the week after the People's Bank of China lowered the reserve requirement ratio for all banks to 18.5% from 19.5%. The 100-basis point cut was the largest such move since November 2008 and was implemented in hopes of avoiding a slowdown in China's economic growth.

The easing news from China helped markets in Europe register broad gains with investors overlooking the latest Greece-related developments. Specifically, the Greek government has requested local governments to transfer their cash balances to the Bank of Greece as the troubled sovereign continues scrambling for funds ahead of the next IMF payment deadline. That being said, the euro slid about 0.7% to 1.0735 against the dollar while the Dollar Index (97.93, +0.41) advanced 0.4%.

All ten sectors registered solid gains with five groups adding more than 1.0%. The top-weighted technology sector (+1.8%) ended in the lead after climbing throughout the session with large cap components fueling the move. To that point, Apple (AAPL 127.60, +2.85), Google (GOOGL 544.53, +11.79), Facebook (FB 83.09, +2.31), and Microsoft (MSFT 42.90, +1.28) rallied between 2.2% and 3.1% while Dow component IBM (IBM 166.16, +5.49) jumped 3.4% ahead of its earnings report.

Speaking of earnings, investors received just a small batch of reports this morning, but the floodgates will open as the week continues. The consumer discretionary sector (+1.1%) ended among the leaders with an assist from Hasbro (HAS 74.16, +8.27), which surged 12.6% in reaction to better than expected earnings and revenue.

Elsewhere, the industrial sector (+1.1%) also displayed relative strength with transport stocks doing some heavy lifting. The Dow Jones Transportation Average spiked 1.7% with all 20 components ending in the green. Railroads stood out with CSX (CSX 34.89, +1.59) soaring 4.8% while Kansas City Southern (KSU 107.37, +2.88) jumped 2.8% ahead of tomorrow's earnings report.

Another cyclical sector-financials (+0.5%)-could not catch up to the broader market even though Morgan Stanley (MS 36.96, +0.21) reported better than expected results. Shares of MS climbed 0.6% while other major financials posted comparable gains.

Treasuries spent the day in a slow retreat from their overnight highs with the 10-yr yield rising two basis points to 1.88%.

Today's participation was on the light side with fewer than 670 million shares changing hands at the NYSE floor.

Investors did not receive any economic data today and tomorrow's session will also be free of noteworthy releases.
  • Nasdaq Composite +5.5% YTD 
  • Russell 2000 +5.0% YTD 
  • S&P 500 +2.0% YTD 
  • Dow Jones Industrial Average +1.2% YTD
Dow: +208.63… | Nasdaq: +62.79… | S&P: +19.22…
NASDAQ Adv/Dec 1964/885. …NYSE Adv/Dec 2147/890.

Copyright © 2008 Briefing.com, Inc. All rights reserved.
Sponsor Center
Sponsored Links
Buy a Link Now
Content Partners