|Market Commentary||Wednesday, April 25, 2012 10:17 Hrs IST|
Earning and economic reports help US stocks end mostly higher
US stocks ended in a mixed mode on Tuesday, 24 April 2012. The Dow and S&P solidified gains on Tuesday as investors considered another round of economic data and a slew of corporate earnings. The Nasdaq remained the only index to end in the red ahead of Apple's earning report. There were a few economic data for the day and they checked in mixed in nature. The European debt crisis seemed to ease a bit for the day. The dollar weakened and commodities ended mostly higher.
For the day, that ended on Tuesday, 24 April 2012, Dow ended higher by 74.4 points or 0.6% to end at 13,001.6. The Nasdaq lost 8.85 points or 0.3% to end at 2,961.6. The S&P 500 gained 5.03 points or 0.4% to end at 1,371.97.
Six out of ten economic sectors ended higher led by telecom, industrials, financial and utilities sectors. Most of the thirty Dow components ended higher led by AT&T.
Earning reports today included upbeat results from 3M, AT&T and United Technologies. Positive responses to reports from blue chips 3M and United Technologies helped the Dow rise above the other major equity averages. AT&T led the index's gains after the phone company reported first-quarter earnings above Wall Street's estimates as wireless subscribers racked up more time online.
Coach and Texas Instruments also reported earnings that exceeded what had been widely anticipated, but neither settled in positive territory. Netflix shares tumbled 14% after the online video-streaming provider reported first-quarter results late Monday.
Economic data reported on Tuesday proved a mixed bag, with a gauge of consumer confidence dipping some but little changed in April, while sales of new homes for March came in stronger than anticipated, signaling some stabilization in the beleaguered real-estate market. The Conference Board reported its index at 69.2 in April, down from a revised reading of 69.5 in March. Commerce Department data showed sales of new U.S. homes falling 7.1% in March, though the drop was due to a revision higher for February.
A third report showed home prices in 20 U.S. metropolitan areas in February falling 3.5% from the year-earlier period, the smallest 12-month decline since early 2011.
European stock markets rebounded on Tuesday and tensions eased a bit. There were government debt auctions in Spain, Italy and the Netherlands that were well subscribed and that somewhat lifted investor sentiment. Still, the overall European Union sovereign debt and financial crisis appears to be gradually creeping back to the front burner of the market place.
The Federal Open Market Committee of the Federal Reserve is now meeting to discuss monetary policy. The meeting concludes early Wednesday afternoon with a statement from the FOMC and a press conference from Fed Chairman Bernanke. The statement and press conference could be the most important U.S. economic readings of the week for the precious metals markets.
In the currency market on Tuesday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies fell by almost 0.2%.
Crude prices ended higher on Tuesday, 24 April 2012 at Nymex. Crude prices rose following better than expected earning reports, mixed economic data at Wall Street and weak dollar. A part easing of European tensions also buoyed prices. Light and sweet crude for June delivery rose $0.44 (0.4%) to $103.55 a barrel on the New York Mercantile Exchange on Tuesday.
Bullion metal prices ended higher on Tuesday, 24 April 2012 at Comex. Prices ended the U.S. day session moderately higher on bargain-hunting bounce from Monday's selling pressure. Gold for June delivery ended higher by $11.2 or 0.7%, to end at $1,643.8 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday. Silver prices for May delivery ended higher by $0.21 or 0.7% at $30.75.
For every share declining more than two gained on the New York Stock Exchange, where 748 million shares traded. Composite volume neared 3.6 billion.
Indian ADRs ended mixed on Tuesday. Wipro Technologies gained 2%. HDFC Bank, Infosys and Tata Motors gained 0.2%. VSNL and ICICI Bank lost 0.3% and 0.8% respectively.
For tomorrow, durable goods order is the only economic data expected. Earning reports will continue to pour in numbers.