Stock Market News for November 21, 2014 – Zacks Investment …

Stock Market News for November 21, 2014 – Zacks Investment …

Benchmarks ended in the green zone on Thursday as upbeat economic reports and strong retail earnings results offset dismal data from the Euro-zone and China. Moreover, Intel’s encouraging earnings outlook helped tech shares to post solid gains. Rebound in oil prices boosted energy shares. The Dow and S&P 500 registered yet another record high.

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 0.2% to close at 17,719.00. The Standard & Poor 500 (S&P 500) also rose 0.2% to close at 2,052.75. The tech-laden Nasdaq Composite Index closed at 4,701.87; increasing almost 0.6%. The fear-gauge CBOE Volatility Index (VIX) declined 2.7% to settle at 13.58. A total of about 5.7 billion shares were traded on Thursday, lower than monthly average of 6.4 billion. Advancers outpaced declining stocks on the NYSE. For 63% stocks that advanced, 33% declined.

The National Association of Realtors reported that existing home sales gained 1.5% to seasonally adjusted annual rate of 5.26 million in October from September’s revised tally of 5.18 million. Sales numbers also beat the consensus estimate of 5.17 million. This was also the highest annual pace since Sep 2013.

Strong home data had a positive impact on the SPDR S&P Homebuilders (XHB). The sector gained 2.1% and was the biggest gainer among the S&P 500 sectors on Thursday. Key stocks from this sector including DR Horton Inc. (DHIAnalyst Report), PulteGroup, Inc. (PHMAnalyst Report), Toll Brothers Inc. (TOLAnalyst Report) and KB Home (KBHAnalyst Report) gained 1.8%, 2%, 1.1% and 2.3%, respectively.

Moreover, the U.S. Department of Labor reported that jobless claims for the week ending Nov 15 decreased to 291,000 from previous week’s level of 293,000. The number remained below 300,000 level for 10 consecutive weeks. Additionally, the Philadelphia Fed’s manufacturing index that measures business growth in this region, increased to 40.8, surpassing the consensus estimate of 16.8. This reading was the highest since Dec 1993.

However, Consumer Price Index remained flat in October mainly due to decline in oil prices. Also, private research firm Markit’s flash U.S. Manufacturing Purchasing Managers Index declined to 54.7 in November, compared to final index reading of 55.9 in October. This indicated that the U.S. manufacturing sector witnessed slow growth rate in November.

Earlier in the day, dismal economic data out of Europe and China had dented investor confidence. Markit’s November PMI survey for the Euro-Zone came in weaker than expected, with the index level reaching a 16-month low. Markit’s flash composite purchasing manager’s index (PMI) in Eurozone decreased to 51.4 from October’s final reading of 52.1. Moreover, China’s flash PMI released by HSBC declined to 50.0 in November, reaching a 6-month low. This reading indicated that China’s manufacturing sector struggled to expand in November.

Separately, shares of Best Buy Co., Inc. (BBYAnalyst Report) gained 7% after reporting third quarter earnings per share of 32 cents, ahead of the Zacks Consensus Estimate of 25 cents. The retailer also reported quarterly revenue of $9,380 million, beating the Zacks Consensus Estimate of $9,095 million.

Dollar Tree, Inc.’s (DLTRAnalyst Report) shares jumped 5.2% after posting third quarter adjusted earnings per share of 69 cents, exceeding the Zacks Consensus Estimate of 65 cents. Revenues of the company increased 11.2% on a year-over-year basis in the quarter to $2,095.2 million and came ahead of the Zacks Consensus Estimate of $2,065 million.

Moreover, shares of Intel Corporation (INTCAnalyst Report) rose 4.7% after forecasting “mid-single digit” revenue growth rate for fiscal 2015, compared to analysts’ expectations of 3.4%. The company also hiked its annual dividend to 96 cents per share, rising 6.7% from previous level. The closing share price reached its highest level since Feb 2001.

This development boosted tech shares on Thursday. Key technology stocks including Microsoft Corporation (MSFTAnalyst Report), Apple Inc. (AAPLAnalyst Report), Yahoo! Inc. (YHOOAnalyst Report) and SanDisk Corp. (SNDKAnalyst Report) gained 1%, 1.4%, 1.3% and 1.5%, respectively.

Additionally, the prices of WTI crude oil and Brent crude oil rebounded on Thursday to increase 1.3% and 1.6% to $75.58 per barrel and $79.33 per barrel, respectively. The gain in oil prices boosted Energy Select Sector SPDR (XLE) and the sector rose 1.3%. Key energy stocks including Chesapeake Energy Corporation (CHKAnalyst Report), Halliburton Company (HAL), Cabot Oil & Gas Corporation (COG) and Baker Hughes Incorporated (BHI) rose 3.9%, 1.6%, 2% and 1.4%, respectively. Seven of the 10 S&P sectors registered gains on Thursday.

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Stock Market News for November 21, 2014 – Zacks Investment …

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