Weekly Wrap The major indices logged a solid gain, ending the week at session highs. Trade was volatile, with a surge on Thursday accounting for much of the week's advance.
The S&P 500 climbed 2.5% as all ten sectors gained. Cyclical stocks outperformed as Energy climbed 4.3% and materials gained 4.3%.
Markets benefited from positive overseas economic news. Chinese exports surged 48.5% y/y and Australia's unemployment rate declined to 5.2% as the country added jobs.
The euro stayed in focus, dropping to a four year low before recovering as stocks gained worldwide. The battered currency climbed 1.1% for the week to $1.210
In domestic economic news, initial unemployment claims dropped slightly to 456,000 in the week ended June 5, which was largely in-line with the median economists estimate surveyed by Briefing.com. But the continued high level of jobless claims is a disappointment, as stable economic growth will be difficult without a significant downward trend in jobless claims.
Advance retail sales plummeted 1.2% in May, well below the Briefing.com consensus that called for sales to increase 0.2%. But the headline report is not as bad as it seems, as core sales – which excludes auto dealers, building material and supply firms and gasoline stations -- rose 0.1%. As a result, the release's negative impact on stocks was contained.
Stocks got a lift from an upbeat preliminary June Consumer Confidence Survey from University of Michigan. The survey improved to 75.5 from 73.6 and was also above the expected reading of 74.5.
Meanwhile, Fed Chairman Bernanke gave a speech and testified before lawmakers, though neither event resulted in any new insights. Bernanke expects unemployment to remain high as economic conditions continue to improve at a moderate pace. Bernanke's comments were consistent with what has been communicated in recent FOMC meeting minutes.
Likewise, the Fed's Beige Book showed anecdotal evidence of moderate ceonomic activity improvement in all 12 Fed districts.
In corporate news, Dow component Caterpillar (CAT) announced a dividend increase, which will take the stock's quarterly dividend to $0.44 per share from $0.42 per share.
Bristol-Meyers Squibb (BMY) and Celgene (CELG) both got a boost after announcing separate positive cancer drug results. BMY surged 11.4% for the week, the fourth best performance within the S&P 500. CELG climbed 3.0%.
The S&P 500 climbed 2.5% as all ten sectors gained. Cyclical stocks outperformed as Energy climbed 4.3% and materials gained 4.3%.
Markets benefited from positive overseas economic news. Chinese exports surged 48.5% y/y and Australia's unemployment rate declined to 5.2% as the country added jobs.
The euro stayed in focus, dropping to a four year low before recovering as stocks gained worldwide. The battered currency climbed 1.1% for the week to $1.210
In domestic economic news, initial unemployment claims dropped slightly to 456,000 in the week ended June 5, which was largely in-line with the median economists estimate surveyed by Briefing.com. But the continued high level of jobless claims is a disappointment, as stable economic growth will be difficult without a significant downward trend in jobless claims.
Advance retail sales plummeted 1.2% in May, well below the Briefing.com consensus that called for sales to increase 0.2%. But the headline report is not as bad as it seems, as core sales – which excludes auto dealers, building material and supply firms and gasoline stations -- rose 0.1%. As a result, the release's negative impact on stocks was contained.
Stocks got a lift from an upbeat preliminary June Consumer Confidence Survey from University of Michigan. The survey improved to 75.5 from 73.6 and was also above the expected reading of 74.5.
Meanwhile, Fed Chairman Bernanke gave a speech and testified before lawmakers, though neither event resulted in any new insights. Bernanke expects unemployment to remain high as economic conditions continue to improve at a moderate pace. Bernanke's comments were consistent with what has been communicated in recent FOMC meeting minutes.
Likewise, the Fed's Beige Book showed anecdotal evidence of moderate ceonomic activity improvement in all 12 Fed districts.In corporate news, Dow component Caterpillar (CAT) announced a dividend increase, which will take the stock's quarterly dividend to $0.44 per share from $0.42 per share.
Bristol-Meyers Squibb (BMY) and Celgene (CELG) both got a boost after announcing separate positive cancer drug results. BMY surged 11.4% for the week, the fourth best performance within the S&P 500. CELG climbed 3.0%.
Among underperformers, Walgreen (WAG) shed 4.9%, taking a hit on news that CVS Caremark(CVS) plans to remove Walgreens from its PBM pharmacy network.
In commodity trading, oil prices rose 3.9% for the week and gold prices rose 1.0%. The dollar fell 1.0% against a basket of currencies.
In commodity trading, oil prices rose 3.9% for the week and gold prices rose 1.0%. The dollar fell 1.0% against a basket of currencies.
Index | Started Week | Ended Week | Change | % Change | YTD % |
DJIA | 9931.97 | 10211.07 | 279.10 | 2.8 | -2.1 |
Nasdaq | 2219.17 | 2243.60 | 24.43 | 1.1 | -1.1 |
S&P 500 | 1064.88 | 1091.60 | 26.72 | 2.5 | -2.1 |
Russell 2000 | 633.97 | 649.00 | 15.03 | 2.4 | 3.8 |
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