Stock Market News for April 24, 2015 – Zacks Investment Research
Benchmarks posted modest gains on Thursday amid gains in energy shares, mixed earnings reports and weak economic data. While, gains among energy shares were able to offset discouraging domestic and overseas economic reports, investors continued to assess a slew of mixed earnings results. Energy shares gained after domestic crude oil price touched its highest level this year on Thursday. Meanwhile, the day’s modest gains were more than enough for the Nasdaq to settle above its highest close in 15 years, exceeding the record achieved during the dot-com era.
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The Dow Jones Industrial Average (DJI) gained 0.1% to close at 18,058.69. The Standard & Poor’s 500 (S&P 500) increased 0.2% to 2,112.93. The tech-laden Nasdaq Composite Index closed at 5,056.06; gaining 0.4%. The fear-gauge CBOE Volatility Index (VIX) dropped 1.8% to settle at 12.48. A total of about 3.6 billion shares were traded on NYSE on Thursday. Advancers outpaced declining stocks on the NYSE. For 65% stocks that advanced, 31% declined.
Benchmarks ended in the green on Thursday following gains in energy shares due to rise in oil prices. Oil prices moved north on Thursday after Saudi Arabia and its allies bombed military bases in Yemen raising concerns about Middle East oil supplies. WTI crude oil increased 2.7% to $57.74 per barrel, its highest settlement price for this year. Additionally, Brent crude oil increased 3.3% to $64.85 per barrel.
The Energy Select Sector SPDR (XLE) advanced 0.7%, the highest among the S&P 500 sectors. Dow components Exxon Mobil Corporation (XOM – Analyst Report) and Chevron Corporation (CVX – Analyst Report) gained 0.1% and 0.4%, respectively. 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%, 0.6% and 0.7%, respectively.
The Utilities Select Sector SPDR (XLU) gained 0.6% and was the second biggest gainer among the S&P 500 sectors. Key utilities stocks including NextEra Energy Inc (NEE – Analyst Report), Southern Company (SO – Analyst Report), PG&E Corporation (PCG – Analyst Report), Duke Energy Corporation (DUK – Analyst Report) and Dominion Resources, Inc. (D – Snapshot Report) increased 0.9%, 0.5%, 0.7%, 0.7% and 0.9%, respectively. Overall, 7 out of 10 sectors of the S&P 500 ended in the green.
Among earnings news, General Motors Company (GM – Analyst Report) reported first quarter earnings per share of 86 cents that missed the Zacks Consensus Estimate of 97 cents. 3M Company (MMM – Analyst Report) also posted first quarter earnings per share of $1.85 that fell short of the Zacks Consensus Estimate of $1.79.
However, Caterpillar Inc. (CAT) reported first quarter earnings per share of $1.86, beating the Zacks Consensus Estimate of $1.35. Pepsico, Inc.’s (PEP) first quarter earnings per share of 83 cents was also able to beat the Zacks Consensus Estimate by 5.1%.
Meanwhile, The Procter & Gamble Company’s (PG) third quarter fiscal 2015 earnings per share of 92 cents came in line with the Zacks Consensus Estimate. AT&T, Inc. (T) also reported first quarter earnings per share of 63 cents, in line with the consensus estimate.
While, shares of General Motors, 3M Company, Caterpillar, Pepsico and Procter & Gamble dropped 3.3%, 3%, 0.1%, 1.6% and 1.8%, respectively, shares of AT&T gained 4.2%.
Markets received discouraging economic data on Thursday. The U.S. Census Bureau and the Department of Housing and Urban Development jointly reported an 11.4% decline in sales of new single-family houses in March to 481,000. The decline in sales of new single-family houses was also more than the consensus estimate of sales decreasing to 512,000.
Separately, the U.S Department of Labor reported that seasonally adjusted initial claims increased 1,000 to 295,000 in the week ending Apr 23. This increase in applications for unemployment benefits was in contrast to the consensus estimate of initial claims decreasing to 287,000.
Meanwhile, Markit’s preliminary survey report showed that business activity dropped in the U.S. The Markit’s PMI index for the U.S. fell to 54.2 in April from 55.7 in March. Additionally, PMI data from China and Eurozone also turned out to be weaker than expected. The Markit-HSBC Purchasing Managers’ Index showed manufacturing activity in China fell to 49.2 in April, its lowest level in last twelve months. Germany’s manufacturing PMI also fell to 51.9 in April from 52.8 in March. France’s manufacturing PMIs too dropped to 48.4 in April from 48.8 last month.
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Stock Market News for April 24, 2015 – Zacks Investment Research
