Loading...
Loading...
Benchmarks ended Thursday's choppy session mostly lower, dragged down by late selloffs in the utilities and energy sectors. The S&P 500 and the Nasdaq closed in the red, while Dow managed to finish in the green. The late selloff eroded the day's earlier gains that came on the back of encouraging initial claims data and dovish comments from ECB President Mario Draghi.
For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article
The Dow Jones Industrial Average (DJI) gained just 0.2% to close Thursday's trading session at 16,550.97. The Standard & Poor 500 (S&P 500) dropped 0.1% to finish at 1,875.63. The tech-laden Nasdaq Composite Index declined 0.4% to 4,051.50. The fear-gauge CBOE Volatility Index (VIX) went up 0.2% to settle at 13.43. Total volume for the day was roughly 6.7 billion shares, higher than this month's average of 6.1 billion. Decliners outpaced advancing stocks on the NYSE. For 56% stocks that declined, 41% advanced.
Utilities and energy sectors weighed on the broader markets yesterday. The Utilities Select Sector SPDR XLU declined 1.1%. Key stocks from the sector such as Duke Energy Corporation DUK, NextEra Energy, Inc. NEE, Dominion Resources, Inc. D, Southern Company SO and Exelon Corporation EXC decreased 1.3%, 0.8%, 1.6%, 1.5% and 0.8%, respectively.
The Energy Select Sector SPDR XLE led the decline among the S&P 500 sectors. The sector dropped 1.4%. Top holdings from the sector such as Exxon Mobil Corporation XOM, Chevron Corporation CVX, Schlumberger Limited SLB, ConocoPhillips COP and Occidental Petroleum Corporation OXY decreased 0.8%, 0.9%, 1.6%, 1.4% and 1.1%, respectively.
Selling pressure also intensified in high-growth stocks in the later part of the day. Momentum stocks from the technology sector such as Facebook, Inc. FB, FireEye, Inc. FEYE and Google Inc. GOOG decreased 1.1%, 4.2% and 0.4%, respectively. Shares of online retailer Amazon.com Inc. AMZN and online travel company TripAdvisor Inc. TRIP declined 1.5% and 0.9%, respectively.
Shares of The Priceline Group Inc. PCLN dropped 2.1% after the company's current-quarter earnings per share forecast fell short of analysts' expectations. The travel-services company expects its earnings per share, excluding special items, for the quarter ending June to be between $11.22 and $12.02. Analysts expect earnings per share to be at $12.27.
Also, shares of Tesla Motors, Inc. TSLA plunged 11.3%, a day after the electric car maker reported adjusted loss (including stock-based compensation expenses) of 14 cents per share in the first quarter of 2014.This was wider than the Zacks Consensus Estimate of a loss of 10 cents. The loss was also in contrast to the break-even results reported in the year-ago quarter.
Bio-tech stocks too suffered losses yesterday. Gilead Sciences Inc. GILD, Vertex Pharmaceuticals Incorporated VRTX Amgen Inc. AMGN and Biogen Idec Inc. BIIB decreased 0.1%, 2.1%, 1.8% and 0.4%, respectively. Overall, the Health Care Select Sector SPDR XLV decreased 0.5%.
These losses eroded the day's initial gains that were sparked by encouraging economic data and ECB president's dovish comments. On the economic front, the U.S Department of Labor reported that seasonally adjusted initial claims decreased 26,000 to 319,000 in the week ending May 3. This decrease in applications for unemployment benefits reached the lowest level in a month. The fall was more than the consensus estimate of initial claims decreasing to 324,000.
Separately, the European Central Bank kept monetary policy unchanged. ECB President Mario Draghi said at a press conference that for the purpose of promoting economic growth and stability, the central bank might lower lending rates or provide more economic stimulus during their June policy meeting.
Meanwhile, in a testimony before the Senate Budget Committee, Federal Reserve Chairwoman Janet Yellen reiterated the central bank's intentions to keep interest rates low. Yellen commented: “Interest rates are unlikely to begin rising until we are in a strong economic recovery”.
On Tuesday, Yellen had said that the economy was still in need of support from the central bank given the “considerable slack” in the labor market. She stated that the central bank intends to keep the federal funds rate low for some time, even after employment and inflation rates return to the desired level. Yellen also acknowledged the fact that “there is no mechanical formula or time table” to raise interest rates.
For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article
The Dow Jones Industrial Average (DJI) gained just 0.2% to close Thursday's trading session at 16,550.97. The Standard & Poor 500 (S&P 500) dropped 0.1% to finish at 1,875.63. The tech-laden Nasdaq Composite Index declined 0.4% to 4,051.50. The fear-gauge CBOE Volatility Index (VIX) went up 0.2% to settle at 13.43. Total volume for the day was roughly 6.7 billion shares, higher than this month's average of 6.1 billion. Decliners outpaced advancing stocks on the NYSE. For 56% stocks that declined, 41% advanced.
Utilities and energy sectors weighed on the broader markets yesterday. The Utilities Select Sector SPDR XLU declined 1.1%. Key stocks from the sector such as Duke Energy Corporation DUK, NextEra Energy, Inc. NEE, Dominion Resources, Inc. D, Southern Company SO and Exelon Corporation EXC decreased 1.3%, 0.8%, 1.6%, 1.5% and 0.8%, respectively.
The Energy Select Sector SPDR XLE led the decline among the S&P 500 sectors. The sector dropped 1.4%. Top holdings from the sector such as Exxon Mobil Corporation XOM, Chevron Corporation CVX, Schlumberger Limited SLB, ConocoPhillips COP and Occidental Petroleum Corporation OXY decreased 0.8%, 0.9%, 1.6%, 1.4% and 1.1%, respectively.
Selling pressure also intensified in high-growth stocks in the later part of the day. Momentum stocks from the technology sector such as Facebook, Inc. FB, FireEye, Inc. FEYE and Google Inc. GOOG decreased 1.1%, 4.2% and 0.4%, respectively. Shares of online retailer Amazon.com Inc. AMZN and online travel company TripAdvisor Inc. TRIP declined 1.5% and 0.9%, respectively.
Shares of The Priceline Group Inc. PCLN dropped 2.1% after the company's current-quarter earnings per share forecast fell short of analysts' expectations. The travel-services company expects its earnings per share, excluding special items, for the quarter ending June to be between $11.22 and $12.02. Analysts expect earnings per share to be at $12.27.
Also, shares of Tesla Motors, Inc. TSLA plunged 11.3%, a day after the electric car maker reported adjusted loss (including stock-based compensation expenses) of 14 cents per share in the first quarter of 2014.This was wider than the Zacks Consensus Estimate of a loss of 10 cents. The loss was also in contrast to the break-even results reported in the year-ago quarter.
Bio-tech stocks too suffered losses yesterday. Gilead Sciences Inc. GILD, Vertex Pharmaceuticals Incorporated VRTX Amgen Inc. AMGN and Biogen Idec Inc. BIIB decreased 0.1%, 2.1%, 1.8% and 0.4%, respectively. Overall, the Health Care Select Sector SPDR XLV decreased 0.5%.
These losses eroded the day's initial gains that were sparked by encouraging economic data and ECB president's dovish comments. On the economic front, the U.S Department of Labor reported that seasonally adjusted initial claims decreased 26,000 to 319,000 in the week ending May 3. This decrease in applications for unemployment benefits reached the lowest level in a month. The fall was more than the consensus estimate of initial claims decreasing to 324,000.
Separately, the European Central Bank kept monetary policy unchanged. ECB President Mario Draghi said at a press conference that for the purpose of promoting economic growth and stability, the central bank might lower lending rates or provide more economic stimulus during their June policy meeting.
Meanwhile, in a testimony before the Senate Budget Committee, Federal Reserve Chairwoman Janet Yellen reiterated the central bank's intentions to keep interest rates low. Yellen commented: “Interest rates are unlikely to begin rising until we are in a strong economic recovery”.
On Tuesday, Yellen had said that the economy was still in need of support from the central bank given the “considerable slack” in the labor market. She stated that the central bank intends to keep the federal funds rate low for some time, even after employment and inflation rates return to the desired level. Yellen also acknowledged the fact that “there is no mechanical formula or time table” to raise interest rates.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free reportAMAZON.COM INC AMZN: Free Stock Analysis Report
CHEVRON CORP CVX: Free Stock Analysis Report
Loading...
Loading...
DOMINION RES VA D: Free Stock Analysis Report
DUKE ENERGY CP DUK: Free Stock Analysis Report
EXELON CORP EXC: Free Stock Analysis Report
FACEBOOK INC-A FB: Free Stock Analysis Report
FIREEYE INC FEYE: Free Stock Analysis Report
NEXTERA ENERGY NEE: Free Stock Analysis Report
OCCIDENTAL PET OXY: Free Stock Analysis Report
PRICELINE.COM PCLN: Free Stock Analysis Report
SCHLUMBERGER LT SLB: Free Stock Analysis Report
SOUTHERN CO SO: Free Stock Analysis Report
TRIPADVISOR INC TRIP: Free Stock Analysis Report
EXXON MOBIL CRP XOM: Free Stock Analysis Report
To read this article on Zacks.com click here.
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
