Stock Market News for April 15, 2015 – Zacks Investment Research
Benchmarks finished mostly in the green on Tuesday, banking on gains in energy shares which were powered by a rise in oil prices. However, the Nasdaq settled in the red due to overall weakness in the technology sector. Meanwhile, investors remained focused on mixed earnings results and weaker than expected retail sales.
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The Dow Jones Industrial Average (DJI) gained 0.3%, to close at 18,036.70. The Standard & Poor’s 500 (S&P 500) increased 0.2% to 2,095.84. The tech-laden Nasdaq Composite Index closed at 4,977.29; declining 0.2%. The fear-gauge CBOE Volatility Index (VIX) dropped 1.9% to settle at 13.67. A total of about 3.3 billion shares were traded on NYSE on Tuesday. Advancers outpaced declining stocks on the NYSE. For 60% stocks that advanced, 37% declined.
Benchmarks ended Tuesday’s trading session mostly in positive territory helped by gains in energy shares due to rise in oil prices. Oil prices moved north on Tuesday after the U.S. Energy Information Administration forecasted U.S. shale production will decline by 45,000 bpd to 4.98 million bpd in May, its first monthly decline in four years. Prices of WTI crude oil and Brent crude oil increased 2.6% and 0.9% to $53.29 per barrel and $58.43 a barrel, respectively.
The Energy Select Sector SPDR (XLE) gained 1.8%, the highest among the S&P 500 sectors. Chevron Corporation (CVX – Analyst Report) advanced 2.2% and turned out to be the biggest gainer among the Dow components. Another Dow component, Exxon Mobil Corporation (XOM – Analyst Report) gained 1.5%. Other key energy stocks such as Schlumberger Limited (SLB – Analyst Report), EOG Resources, Inc. (EOG – Analyst Report) and Transocean Ltd. (RIG – Analyst Report) increased 0.9%, 2.1% and 4.9%, respectively.
On the other hand, the Technology Select Sector SPDR (XLK) declined 0.3% and was the biggest loser among the S&P 500 sectors. Weakness in the technology sector had a negative impact on the Nasdaq. Key holdings from the sector including Apple Inc. (AAPL – Analyst Report), Microsoft Corporation (MSFT – Analyst Report), AT&T Inc. (T – Analyst Report), Google Inc (GOOGL – Analyst Report) and International Business Machines Corporation (IBM – Analyst Report) decreased 0.4%, 0.3%, 0.6%, 1.6% and 0.1%, respectively. Overall, 8 out of 10 sectors of the S&P 500 ended in the green.
Investors witnessed mixed first quarter earnings results on Tuesday. Banking behemoth JPMorgan Chase & Co.’s (JPM – Analyst Report) shares gained 1.6% after the company reported first quarter earnings per share of $1.45, beating the Zacks Consensus Estimate of $1.39. Revenues of $24.8 billion in the quarter also were more than the Zacks Consensus Estimate of $24.4 billion. On the other hand, shares of Wells Fargo & Company (WFC – Analyst Report) dropped 0.7% despite posting first quarter earnings per share of $1.04, more than the Zacks Consensus Estimate of 98 cents. Revenues also came in at $21.3 billion, beating the Zacks Consensus Estimate of $21.1 billion.
In the healthcare space, Johnson & Johnson’s (JNJ) first-quarter earnings per share were $1.56, more than the Zacks Consensus Estimate of $1.52. First quarter revenues of $17.4 billion were also more than the Zacks Consensus Estimate of $17.3 billion. Shares of Johnson & Johnson declined a meager 0.03%.
Separately, Norfolk Southern Corporation (NSC) issued a disappointing outlook for the first quarter of 2015. Norfolk Southern expects first quarter earnings to come in at $1.00 per share, less than the Zacks Consensus Estimate of $1.31. Shares of Norfolk Southern dropped 4.2%, making it the biggest decliner among the companies listed in the S&P 500.
Meanwhile, U.S. retail sales rebounded in March after declining in the previous three months. The U.S. Department of Commerce reported that seasonally adjusted sales of retail and food services rose 0.9% in March. However, this rise in retail sales in March was less than the consensus estimate of it rising by 1%. The gain was led by increase in demand for auto sales.
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Stock Market News for April 15, 2015 – Zacks Investment Research
