US stocks ended day on a strong note on Thursday, 25 June. Stocks managed to reverse modest losses in the first few minutes of trading to spend the rest of the day trading with impressive gains. The first quarter GDP checking in better than expected perhaps acted as the main catalyst today. The commodities sector too played an impressive role in the rally.
The Dow Jones Industrial Average ended higher by 172 points at 8,472.73. The Nasdaq Composite Index, ended higher by 37 at 1,829. S&P 500 ended higher by 19 points at 920. It was the best day for stocks since 1 June, 2009.
Al ten major sectors were able to log good gains. Financials had lagged for most of the session and even traded with a modest loss early on, but spiked into the close to finish with a gain close to almost 2%. Consumer discretionary, retailers and financial sectors were the main winners.
IBM, 3M, United Technologies and P&G were the main winners for the day. JP Morgan Chase, Bank of America, Intel and GE were the main laggards.
Among economic reports for the day, The Labor Department reported on Thursday, 25 June, 2009 that first-time filings for state unemployment benefits rose unexpectedly in the week ended 20 June, 2009.
For the week ended 20 June, initial claims rose 15,000 to 627,000. Market was expecting a decline. This is the highest level since the week ended 16 May, 2009. The latest four-week moving average for initial claims fell 500 to stand at 617,250. For the week ended 13 June, initial claims were revised up to 612,000 from a previously reported 608,000.
In a separate report, The Commerce Department reported today that the U.S. economy just went through its worst two quarters in more than 60 years, as businesses reduced their investments at the fastest pace since the Depression. Real GDP, the measure of the value of goods and services produced in the economy, fell at a 5.5% annual rate in the quarter after plunging at a 6.3% pace in the fourth quarter of 2008. A month ago, the government had estimated GDP fell at a 5.7% pace in the January-through-March quarter.
Among earning reports for the day, Bed Bath & Beyond reported better-than-expected first quarter earnings. Home builder Lennar reported a worse-than-expected quarterly loss. Nike beat quarterly earnings expectations.
Crude prices at Nymex crossed $70 on Thursday, 25 June, 2009. Prices rose today after militants attacked a key pipeline in Nigeria, the fifth largest oil exporter to the U.S. Prices also rose as energy department's weekly inventory report showed yesterday more than expected drop in crude inventories for last week. On Thursday, crude-oil futures for light sweet crude for July delivery closed at $70.23/barrel (higher by $1.56 or 2.3%). For the first time crude crossed $70 in a week.
All the Indian ADRs ended in the green today. ICICI Bank and Wipro Technologies were the main gainers rising 5.1% and 3.2% respectively today.
Crude prices at Nymex dropped today after rising initially on Wednesday, 24 June, 2009. Prices fell today as the dollar rallied again. Prices fell despite energy department's weekly inventory report which showed more than expected drop in crude inventories for last week. On Wednesday, crude-oil futures for light sweet crude for July delivery closed at $58.67/barrel (lower by $0.57 or 0.7%). Earlier during the day, it hit a high of $69.86.
Tomorrow will again be a day light in economic data. May personal income/spending report is due at 8:30ET, followed by the revised Michigan Sentiment survey for June at 9:55ET.
Powered by Capital Market - Live News