Stocks rebounded today following the previous session’s three-digit selloff; after investors digested a mixed bag of U.S. economic reports, including better than expected housing data. Borrowing costs for Spanish and Italian bonds jumped, following a debt auction that failed to meet demand, as investors speculate Moody’s will downgrade Spain to “junk”.
On the economic front; home prices for single-family homes in the U.S. rose for a third consecutive month in April, a good indication that the recovery in the housing market is beginning to pick up. According to the S&P/Case Shiller, the composite index of 20 metropolitan areas jumped 0.7% month-over-month, beating expectations of a 0.4% gain. Home prices were down 1.9%, compared to the year prior, while a decrease of 2.5% was forecasted.
Consumer Confidence was also out today; the report showed a reading of 62.0 vs. an estimated 63.0, its lowest level since January. Richmond Fed Manufacturing Index reported a reading of -3, compared to a surveyed reading of 2.
European markets were mixed today, following positive housing data out of the U.S. Investors remain skeptical of the EU meeting commencing Thursday, after German Chancellor, Angela Merkel reiterated her opposition to euro bonds and shared debt within the euro zone.
Have a great Tuesday evening!
Market Indices/Statistics:
- Dow closed up 32.01 pts/+0.26% to 12,534.67
- S&P closed up 6.27 pts/+0.48% to 1,319.99
- Nasdaq closed up 17.90 pts/+0.63% to 2,854.06
- 16 of the 30 Dow stocks closed higher; 3 closed flat
- All 10 S&P 500 sectors closed up
- Energy was the biggest gainer (1.11%); Materials gained the least (0.12%)
- The VIX ended down 0.66 at 19.72
- Oil is up $0.18 to $79.39
- Nat Gas is up $0.085 to $2.836
- Gold is down $14.40 to $1,574
- Euro vs. Dollar is down $0.0006 to $1.2495
- Dollar vs. Yen is down $0.13 to $79.49
Top Headlines:
News Corporation (NWS, +$1.64/+8.09% to $21.96) shares soared after the Company confirmed that it is considering restructuring its business into two separate publically traded companies. There has been pressure from investors to spin off the publishing division following the phone hacking scandal.
Microsoft Corporation (MSFT, +$0.15/+0.50% to $30.02) announced it is purchasing online social network firm Yammer Inc for $1.2 billion in cash.
Reports indicate that the head of H.J. Heinz (HNZ, -$0.28/-0.53% to $52.95) North American business is leaving the ketchup maker to pursue other opportunities.
Facebook Inc.(FB, +$1.16/+3.62% to $33.10) appoints Chief Operating Officer, Sheryl Sandberg to their board as the Company’s first female director. The social-networking giant believes that Facebook users, a majority of them being women, will benefit from a female addition to its board.
It was reported that Wireless tower operator, SBA Communications (SBAC, -$2.31/-4.15% to $57.15) will purchase 3,252 mobile phone towers in the U.S. and Puerto Rico from privately held TowerCo for about $1.45 billion.
Earnings:
LDK Solar (LDK, -$0.12/-5.94% to $1.90) reports Q1 EPS ($1.46), vs. Est. ($1.14) and Q1 revenue $200.1M, vs. Est. $225.47M.
Robbins & Myers Inc. (RBN, -$1.94/-4.70% to $39.34) reports Q3 EPS $0.92, vs. Est. $0.90 and Q3 revenue $266.3M, vs. Est. $267.2M.
Earnings after the Close:
H&R Block Inc. (HRB, -$0.12/-0.79% to $15.09) reports Q4 EPS $1.99, vs. Est. $2.05 and Q4 revenue $2.00B, vs. Est. $2.01B.
Sealy Corporation (ZZ, -$0.06/-3.41% to $1.70) reports Q2 EPS $0.03, vs. Est. $0.00 and Q2 revenue $312M, vs. Est. $311.28M.
Coming Wednesday:
Economic Reports: MBA Mortgage Applications at 7:00 a.m.; Durable Goods Orders (0.4% increase expected) at 8:30 a.m.; Pending Home Sales (1.5% MoM increase expected) at 10:00 a.m. Earnings: Commercial Metals Company (est.:$0.38), General Mills (est.:$0.59), Lennar Corp. (est.: $0.17), Lindsay Corporation (est.: $1.36), McCormick & Co Inc. (est.: $0.60), Monsanto Company (est.: $1.60), Unifirst Corp. (est.: $0.99), Whirlpool Corp. (est.: $1.64)
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