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Investors Embrace Momentum Stocks on Otherwise Slow Day
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Risk returned on Thursday despite mixed economics and earnings data.

The S&P 500 (INDEXSP:.INX) rose 0.2% to 1,892.49, but we saw even more optimism in higher-risk areas of the market.

The small-cap Russell 2000 (INDEXRUSSELL:RUT) and the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) both outperformed, and key sectors like biotech and housing showed relative strength.

We also saw positive action in many of the individual high-beta names that suffered heavy losses in March and April, like FireEye (NASDAQ:FEYE) and Tesla Motors (NASDAQ:TSLA).

In economic news, jobless claims for last week were 326,000, which was above Wall Street's 310,000 forecast. Continuing claims were 2,653,000, below the consensus of 2,675,000.

The April Chicago Fed national activity index read negative 0.32, implying a slowdown in growth. Economists were looking for a flat reading.

Existing Home sales for April came in at 4.65 million vs. the 4.69 million expected.

And finally, the Leading Economic Indicators index rose 0.4% in April, which was in line with forecasts.

Retail stocks were in focus as multiple sector names reported earnings.

Dollar Tree (NASDAQ:DLTR), Signet Jewelers (NYSE:SIG), Stein Mart (NASDAQ:SMRT) and Williams-Sonoma (NYSE:WSM) all rose sharply after meeting or beating Wall Street's profit expectations.

Best Buy (NYSE:BBY) beat analysts' first-quarter earnings estimates by a wide margin, but its sales were weak and it issued disappointing guidance for the next two quarters. The stock was volatile following the report, but finished 3.4% higher as expectations were fairly low.

Sears Holding (NASDAQ:SHLD) and Bon-Ton Stores (NASDAQ:BONT) both staged impressive rallies despite significant earnings misses, supporting the low expectations theme surrounding the retail sector.

On the international front, Thailand's army declared a coup following the institution of martial law on Tuesday. The iShares MSCI Thailand Index Fund (NYSEARCA:THD) fell 1.1%.

China's May HSBC Flash PMI reading was 49.7, beating the 48.3 expected. However, PMI numbers for the eurozone, Germany, and France were all weaker than expected.

Tomorrow's Financial Outlook

Retailers Foot Locker (NYSE:FL) and Hibbett Sporting Goods (NASDAQ:HIBB) will report earnings ahead of the open tomorrow.

April New Home Sales will be reported at 10:00 a.m. ET.

Though the calendar is light, we may see some interesting action tomorrow as momentum traders could make an attempt to send the S&P 500 back above 1,900, perhaps to a new all-time high. With small caps and biotech regaining footing, the bears have their work cut out for them. 

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Investors Embrace Momentum Stocks on Otherwise Slow Day
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Risk returned on Thursday despite mixed economics and earnings data.

The S&P 500 (INDEXSP:.INX) rose 0.2% to 1,892.49, but we saw even more optimism in higher-risk areas of the market.

The small-cap Russell 2000 (INDEXRUSSELL:RUT) and the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) both outperformed, and key sectors like biotech and housing showed relative strength.

We also saw positive action in many of the individual high-beta names that suffered heavy losses in March and April, like FireEye (NASDAQ:FEYE) and Tesla Motors (NASDAQ:TSLA).

In economic news, jobless claims for last week were 326,000, which was above Wall Street's 310,000 forecast. Continuing claims were 2,653,000, below the consensus of 2,675,000.

The April Chicago Fed national activity index read negative 0.32, implying a slowdown in growth. Economists were looking for a flat reading.

Existing Home sales for April came in at 4.65 million vs. the 4.69 million expected.

And finally, the Leading Economic Indicators index rose 0.4% in April, which was in line with forecasts.

Retail stocks were in focus as multiple sector names reported earnings.

Dollar Tree (NASDAQ:DLTR), Signet Jewelers (NYSE:SIG), Stein Mart (NASDAQ:SMRT) and Williams-Sonoma (NYSE:WSM) all rose sharply after meeting or beating Wall Street's profit expectations.

Best Buy (NYSE:BBY) beat analysts' first-quarter earnings estimates by a wide margin, but its sales were weak and it issued disappointing guidance for the next two quarters. The stock was volatile following the report, but finished 3.4% higher as expectations were fairly low.

Sears Holding (NASDAQ:SHLD) and Bon-Ton Stores (NASDAQ:BONT) both staged impressive rallies despite significant earnings misses, supporting the low expectations theme surrounding the retail sector.

On the international front, Thailand's army declared a coup following the institution of martial law on Tuesday. The iShares MSCI Thailand Index Fund (NYSEARCA:THD) fell 1.1%.

China's May HSBC Flash PMI reading was 49.7, beating the 48.3 expected. However, PMI numbers for the eurozone, Germany, and France were all weaker than expected.

Tomorrow's Financial Outlook

Retailers Foot Locker (NYSE:FL) and Hibbett Sporting Goods (NASDAQ:HIBB) will report earnings ahead of the open tomorrow.

April New Home Sales will be reported at 10:00 a.m. ET.

Though the calendar is light, we may see some interesting action tomorrow as momentum traders could make an attempt to send the S&P 500 back above 1,900, perhaps to a new all-time high. With small caps and biotech regaining footing, the bears have their work cut out for them. 

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

More From Minyanville Staff
Daily Recap
Investors Embrace Momentum Stocks on Otherwise Slow Day
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Risk returned on Thursday despite mixed economics and earnings data.

The S&P 500 (INDEXSP:.INX) rose 0.2% to 1,892.49, but we saw even more optimism in higher-risk areas of the market.

The small-cap Russell 2000 (INDEXRUSSELL:RUT) and the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) both outperformed, and key sectors like biotech and housing showed relative strength.

We also saw positive action in many of the individual high-beta names that suffered heavy losses in March and April, like FireEye (NASDAQ:FEYE) and Tesla Motors (NASDAQ:TSLA).

In economic news, jobless claims for last week were 326,000, which was above Wall Street's 310,000 forecast. Continuing claims were 2,653,000, below the consensus of 2,675,000.

The April Chicago Fed national activity index read negative 0.32, implying a slowdown in growth. Economists were looking for a flat reading.

Existing Home sales for April came in at 4.65 million vs. the 4.69 million expected.

And finally, the Leading Economic Indicators index rose 0.4% in April, which was in line with forecasts.

Retail stocks were in focus as multiple sector names reported earnings.

Dollar Tree (NASDAQ:DLTR), Signet Jewelers (NYSE:SIG), Stein Mart (NASDAQ:SMRT) and Williams-Sonoma (NYSE:WSM) all rose sharply after meeting or beating Wall Street's profit expectations.

Best Buy (NYSE:BBY) beat analysts' first-quarter earnings estimates by a wide margin, but its sales were weak and it issued disappointing guidance for the next two quarters. The stock was volatile following the report, but finished 3.4% higher as expectations were fairly low.

Sears Holding (NASDAQ:SHLD) and Bon-Ton Stores (NASDAQ:BONT) both staged impressive rallies despite significant earnings misses, supporting the low expectations theme surrounding the retail sector.

On the international front, Thailand's army declared a coup following the institution of martial law on Tuesday. The iShares MSCI Thailand Index Fund (NYSEARCA:THD) fell 1.1%.

China's May HSBC Flash PMI reading was 49.7, beating the 48.3 expected. However, PMI numbers for the eurozone, Germany, and France were all weaker than expected.

Tomorrow's Financial Outlook

Retailers Foot Locker (NYSE:FL) and Hibbett Sporting Goods (NASDAQ:HIBB) will report earnings ahead of the open tomorrow.

April New Home Sales will be reported at 10:00 a.m. ET.

Though the calendar is light, we may see some interesting action tomorrow as momentum traders could make an attempt to send the S&P 500 back above 1,900, perhaps to a new all-time high. With small caps and biotech regaining footing, the bears have their work cut out for them. 

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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