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Market Recap: Bulls Rally on Intel and JPMorgan


Markets closed higher with confidence boosters from the piggies and tech land.

The bulls regained their confidence today, reacting to positive earnings announcements and inflation data. The Dow Industrials added +256 points, or +2.08% to 12619, the S&P 500 added +30 points, or +2.27% to 1364, and the Nasdaq Composite gained +64 points, or +2.8% to 2350.

The rally began yesterday when Intel (INTC) reported results for the first quarter. The semiconductor giant defied expectations, beating estimates and issuing guidance at the top end of analysts' forecasts. Further Intel execs said they didn't see any signs of an economic slowdown affecting the company's sales. INTC shares surged +6.5% to 22.13.

The news especially helped stocks in the tech space. Texas Instruments (TXN) added +3.1% to $29.29. Applied Materials (AMAT) gained +3.6% to $19.34, and Advanced Micro Devices (AMD) added +5% to $6.07.

Professor Sean Udall noted other stocks lifted in part due to the news from Intel.

"Interesting action today in ASML Holding (ASML) – it's absolutely flying today. The maker of lithography systems reported 1Q results … had sales in the quarter of 919 million euros, versus consensus of 915 million euros. Though I think 80% of the share move today is due to INTC holding capex firm, which as most of the semi-cap names rallying quite strongly today."

Elsewhere, economic data and inflation also didn't step in the way of the rally. The Bureau of Labor Statistics said Consumer Prices for the month of March rose 0.3% on a month-over-month basis. Minus food and energy, CPI gained 0.2%. Both figures were in line with economists' expectations.

The gloomy news of the day did fall in the housing sector. According to the Commerce Department, housing starts fell to a 17-year low coming in at 947K in March below consensus estimates of 1010K, and building permits fell from 978K in February to 927K in March.

Nonetheless, homebuilders rallied with the tape. Notable gainers included Standard Pacific (SPF) +10.6% to $5.61, Lennar Corp (LEN) +6.3% to $18.50. Hovnanian (HOV) +7.7% to $11.86, and Meritage (MTH) added +7.6% to $22.48. Read Professor Kevin Depew's Five Things You Need To Know.

In financials, bulls also got the green light with results from JP Morgan Chase (JPM). The top tier investment bank beat estimates with earnings of $0.68 per share versus $0.64 consensus. Revenues came in at $16.890 billion vs. expectations of $16.974 billion consensus. Toddo noted the key piece of info to take home was that the company is "grappling with a sagging labor market that hurt clients' ability to pay credit cards and consumer loans on time." Nonetheless shares of JPM surged +6.7% to $44.96. Other gainers included Goldman Sachs (GS) +2.95% to $169.05, Lehman Brothers (LEH) +5% to $41.72, Morgan Stanley (MS) +4.3% to $45.42, and Merrill Lynch (MER) +3.5% to $44.89. Read Toddo's Dust in the Wind.

Commodities surged today. Gold futures jumped 15.60 to 944.30. Crude gained +1.2 to 115.00. Silver added +0.47 to 18.32, and copper finished +9.7 to 398.80.

The dollar index fell -0.605 to 71.418.

For more Buzz insight, check out Minyanville's Buzz Bits.

Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.

Some bullish trade or investment ideas: AMSC, GDM, SPY, SPX, CSX, BNI, NSC, DE, JOYG, POT, MON, MELI, MSFT, QQQQ, PEIX, WMT, GS, RTH, EEM, DRYS, GNK, NLR, ASML, LLTC, SPWR, SIGM, BRCM, ADTN, infrastructure,

Some bearish trade or investment ideas: GOOG, AMZN, GLD, DXY, SOLF, gold

Have a great night! See you in the ayem!
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