Stock Market News for November 12, 2014 – Zacks Investment …
Benchmarks were little changed on Tuesday as investors hardly found any reason to place big bets. The day was devoid of any major news that could move the markets significantly on either side. Trading volumes were light and the bond market was closed due to the U.S. Veterans Day holiday. However, the S&P 500 and the Dow posted modest gains that helped the indexes to settle at record highs for the fifth successive session. The Nasdaq also ended at a record high, the highest level since Mar 2000. The indexes eked out record closing highs after homebuilder shares gained.
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The Dow Jones Industrial Average (DJI) gained a meager 0.01% to close at 17,614.90. The Standard & Poor 500 (S&P 500) increased 0.1% to close at 2,039.68. The tech-laden Nasdaq Composite Index closed at 4,660.56; gaining 0.2%. The fear-gauge CBOE Volatility Index (VIX) went up almost 2% to settle at 12.92. A total of 5.5 billion shares were traded on Tuesday, lower than this month average of 6.8 billion. Advancers outpaced declining stocks on the NYSE. For 49% stocks that advanced, 47% declined.
The S&P 500 achieved its 40th record finish of 2014. The index had closed at a record high for 45 times in 2013. The index settled at a record high for the fifth consecutive session on Tuesday, a feat that was last achieved in May 2013. The index gained 1.4% during its five-session winning streak. During this phase, the biggest one-day percentage gain for the index was 0.6%, achieved last week on Wednesday. The index rebounded more than 9% from a six-month low in mid-October.
Zoetis Inc. (ZTS – Analyst Report) turned out to be the biggest percentage gainer among the S&P 500 components. Shares of Zoetis climbed 8.9%. Activist investor Bill Ackman’s Pershing Square Capital Holding has acquired 8.5% stake in Zoetis. Sachem Head Capital has also taken a 1.6% stake in the animal health company. On the other hand, Juniper Networks, Inc. (JNPR – Analyst Report) was the S&P 500’s biggest percentage decliner. Shares of Juniper Networks plunged 5.7%; a day after the company replaced its chief executive officer.
The blue-chip index closed at a record level for the 24th time this year. During the intra-day session, the blue-chip index gained 24 points and also dropped as much as 28 points. The tech-laden Nasdaq too closed at a record high, hitting the highest level since Mar 2000.
Benchmarks were able to end at record highs on a day when trading volume was at its lowest since early September. Trading volumes were light due to the U.S. Veterans Day holiday.
Meanwhile, shares of DR Horton Inc. (DHI – Analyst Report) went up 2.2% after the company posted upbeat quarterly revenues. The homebuilders’ revenues of $2.42 billion climbed 33% year over year and beat the Zacks Consensus Estimate of $2.37 billion. However, its adjusted earnings of 45 cents per share in the fourth quarter of fiscal 2014 were less than the Zacks Consensus Estimate of 49 cents.
Shares of other homebuilders such as Lennar Corp. (LEN – Analyst Report), PulteGroup, Inc. (PHM – Analyst Report), Beazer Homes USA Inc. (BZH – Snapshot Report) and Toll Brothers Inc. (TOL – Analyst Report) also increased 2.4%, 3.3%, 1.4% and 2.3%, respectively. The SPDR S&P Homebuilders ETF (XHB) was the biggest gainer among the S&P 500 sectors. The sector advanced 1.2%.
The Materials Select Sector SPDR (XLB) went up 1.3%, the second highest gainer among the S&P 500 sectors. Gains among materials companies were led by CF Industries Holdings, Inc. (CF – Analyst Report) and Newmont Mining Corporation (NEM – Analyst Report). Shares of CF Industries Holdings and Newmont Mining surged 4.9% and 3.5%, respectively. Other key stocks from the sector such as E. I. du Pont de Nemours and Company (DD – Analyst Report), The Dow Chemical Company (DOW – Analyst Report), Monsanto Company (MON – Analyst Report), LyondellBasell Industries NV (LYB) and Ecolab Inc. (ECL) advanced 0.1%, 0.1%, 1.2%, 0.6% and 0.1%, respectively.
Among the decliners were cable providers whose shares took a beating for the second-straight session. Shares of cable providers dropped after U.S. President Barack Obama said on Monday that the Federal Communications Commission should regulate broadband like a public utility. Obama stated there should be “strongest possible rules” to protect Internet services and there shouldn’t be “fast lanes”. Shares of Time Warner Cable Inc. (TWC) and Cablevision Systems Corporation (CVC) went down 1.3% and 2.7%, respectively.
Separately, shares of Alibaba Group Holding Limited (BABA) dropped 3.9%, despite the Chinese e-commerce company’s big online shopping day mopping up more than $2 billion in sales in one hour. Moreover, the company’s holiday sales figures went past the $9 billion mark. The drop in share price halted the company’s last six-day rally.
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Stock Market News for November 12, 2014 – Zacks Investment …
