Stock Market News for November 28, 2014 – Zacks Investment …
Benchmarks settled in the green on Wednesday due to gains in technology and telecom stocks. The S&P 500 and the Dow closed at a record level for the 47th and 30th times this year, respectively. Separately, the Nasdaq was boosted by gains in bio-tech stocks. However, the gains were limited by another slump in energy shares. Meanwhile, the day’s discouraging economic data failed to have a negative impact on investor sentiment.
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The Dow Jones Industrial Average (DJI) gained 0.1% to close at 17,827.75. The Standard & Poor 500 (S&P 500) rose 0.3% to close at 2,072.83. The tech-laden Nasdaq Composite Index closed at 4,787.32; increasing 0.6%. The fear-gauge CBOE Volatility Index (VIX) declined 1.5% to settle at 12.07. Total volume on the New York Stock Exchange was 2.7 billion. Advancers outpaced declining stocks on the NYSE. For 60% stocks that advanced, 37% declined.
Wednesday’s trading volume was light owing to the holiday mood. Markets were closed on Thursday for the Thanksgiving holiday. Also, Friday will be a half-day trading session.
The day’s gains were led by technology sector stocks. The Technology Select Sector SPDR (XLK) gained 0.9%, the highest among the S&P 500 sectors. Shares of Analog Devices, Inc. (ADI – Analyst Report) climbed 5.5% a day after the chipmaker reported fourth-quarter fiscal 2014 earnings of 69 cents per share, exceeding the Zacks Consensus Estimate by a penny. Analog Devices generated revenues of $814.2 million, up 11.9% sequentially and 20.1% year over year.
Another chipmaker, Hewlett-Packard Company’s (HPQ – Analyst Report) shares jumped 4.1% a day after the company posted fourth-quarter fiscal 2014 non-GAAP earnings of $1.06 per share that beat the Zacks Consensus Estimate by a penny. However, revenues of $28.4 billion lagged the Zacks Consensus Estimate of $28.8 billion.
Other key stocks from the technology sector such as Apple Inc. (AAPL – Analyst Report), Yahoo! Inc. (YHOO – Analyst Report), Facebook, Inc. (FB – Analyst Report) and Microsoft Corporation (MSFT – Analyst Report) increased 1.2%, 0.4%, 2.6% and 0.6%, respectively. Telecom shares from the sector including Verizon Communications Inc. (VZ – Analyst Report) and AT&T, Inc. (T – Analyst Report) also gained 1.4% and 0.9%, respectively.
Meanwhile, the Nasdaq was boosted by a rally in bio-tech stocks. Shares of bio-tech companies such as Vertex Pharmaceuticals Incorporated (VRTX – Analyst Report), Amgen Inc. (AMGN – Analyst Report), Celgene Corporation (CELG – Analyst Report) and Regeneron Pharmaceuticals, Inc. (REGN – Analyst Report) increased 1.1%, 1.5%, 1.4% and 0.7%, respectively.
However, decline in energy shares limited the market’s positive movement. Energy shares were hit hard due to slump in oil prices. Oil prices dropped ahead of Organization of Petroleum Exporting Countries’ (OPEC) meeting on Thursday. Investors expected OPEC members to cut oil production. The West Texas Intermediate (WTI) crude oil price dropped 0.5% to $73.69 per barrel. Additionally, price of Brent crude oil slipped 0.8% to settle at $77.75 per barrel.
The Energy Select Sector SPDR (XLE) declined 1.3%. The sector was the biggest loser among the S&P 500 sectors. Shares of key energy stocks including Exxon Mobil Corporation (XOM), Chevron Corporation (CVX), Schlumberger Limited (SLB), ConocoPhillips (COP) and EOG Resources, Inc. (EOG) decreased 0.3%, 0.9%, 2.5%, 1.3% and 2.8%, respectively.
Markets received mostly discouraging economic reports on Wednesday. According to the Bureau of Economic Analysis, personal income increased 0.2% in October, less than the consensus estimate of a rise by 0.4%. This rise in personal income came after it had increased 0.2% in September. Personal consumption expenditure increased 0.2% in October, less than the consensus estimate of an increase by 0.3%. Personal consumption expenditure had decreased less than 0.1% in September.
Separately, the Institute for Supply Management-Chicago noted that Chicago Business Barometer decreased to 60.8 in November from October’s reading of 66.2. This fall in the Chicago Purchasing Managers Index in November was more than the consensus estimate of a decrease to 63.1.
The University of Michigan and Thomson Reuters’ final reading of consumer sentiment was at 88.8 in November. This was less than the consensus forecast of an increase to 90. Earlier, the preliminary reading of consumer sentiment was at 89.4 in November.
Moreover, the U.S Department of Labor reported that seasonally adjusted initial claims increased 21,000 to 313,000 in the week ending Nov 22. This increase in applications for unemployment benefits reached the highest level in 11 weeks. The rise was in contrast to the consensus estimate of initial claims decreasing to 288,000.
However, the U.S. Department of Commerce reported that durable orders in October increased 0.4%, contrary to the consensus estimate of a fall by 0.7%. The rise in October’s durable orders followed a drop of 0.9% in September. The rise in October’s durable orders was due to rise in demand for transportation equipment. Excluding transportation, manufactured durable goods decreased 0.9% in October.
Meanwhile, data on housing came in mixed. The U.S. Department of Commerce reported that new home sales increased 0.7% in October to seasonally adjusted annual rate of 458,000 from revised September’s figure of 455,000. Sales of new homes increased at the fastest pace in five months in October. However, this rise in new home sales was less than the consensus estimate of an increase to 471,000.
Separately, the National Association of Realtors reported that Pending Home Sales Index, a forward looking indicator based on contract signings, went down 1.1% to 104.1 in October. However, drop in pending home sales in October was in contrast to the consensus estimate of an increase by 0.6%.
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Stock Market News for November 28, 2014 – Zacks Investment …
