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U.S. stocks closed mixed on the first trading day of May. The Dow declined for the third straight trading session while S&P 500 and Nasdaq Composite reversed yesterday’s losses and closed in the green primarily due to strong gains in the technology sector led by Apple Inc. Further, the U.S. government’s decision to extend tariff exemptions to its top allies also boosted market sentiment.
The Dow Jones Industrial Average (DJI) closed at 24,099.05, declining 0.3%. However, the S&P 500 Index (INX) increased 0.3% to close at 2,654.80. The Nasdaq Composite Index (IXIC) closed at 7,130.70, increasing 0.9%. A total of 6.56 billion shares were traded on Tuesday, higher than the last 20-session average of 6.54 billion shares. Advancers outnumbered decliners on the NYSE by 1.10 -to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 1.43 to -1 ratio. The CBOE VIX decreased 2.8% and closed at 15.49.
How Did the Benchmarks Perform?
The Dow decreased 0.3% with 9 of the 30-stocks in the index closing in the green while 20 traded in the red. During yesterday’s trading session, the blue-chip index was once down 1%, nearly touching its lowest close since April 2.
Meanwhile, Fed’s two day policy meeting is in progress. Inflationary concerns and rising bond yields increased investor’s expectations that the central bank will raise interest rate very soon. This eventually led to the fall of the blue-chip index.
The S&P 500 increased 0.3% led by 1.3% gain of the Technology Select Sector SPDR (XLK). However, six out of 11 sectors of the benchmark index ended in negative territory. The index recorded 4 new 52-week highs and 19 new 52-week lows.
The Nasdaq Composite gained 0.9% as strong performance of technology stocks lifted this tech-heavy index. The index recorded 36 new 52-week highs and 72 new 52-week lows.
Technology Sector Fueled Broad-based Rally
The broader market rally was led by tech behemoth Apple Inc. (AAPL - Free Report) , which was scheduled to report second quarter of fiscal 2018 earnings results after the market close on May 1. High expectations from investors lifted the stock price by 2.3%.
Several other tech giants also put in strong showings. These include Microsoft Corp. (MSFT - Free Report) , Alphabet Inc. (GOOGL - Free Report) , NVIDIA Corp. (NVDA - Free Report) and Advanced Micro Devices Inc. (AMD - Free Report) . Shares of those companies rose 1.6%, 2.2%, 1% and 2.3%, respectively.
Trump Administration Extends Tariff Extension Period
President Donald Trump has extended the exemption period for tariffs for top U.S. allies like the European Union, Canada and Mexico. The 25% tariff on imported steel and 10% tariff on aluminum were scheduled to be imposed on the above mentioned countries on May 1.
The U.S. government has extended this date by one month to June 1. During this time, the trading partners can negotiate a new agreement to avoid the levies. Notably, in March, the Trump administration imposed tariffs on steel and aluminum imported from China, Russia, Japan and others countries.
Meanwhile, U.S. Treasury Secretary Steven Mnuchin’s will visit China this week to negotiate for trade related disputes. Market will closely watch this high level trade negotiation.
Economic Data
The Institute for Supply Management (ISM) reported that the U.S. manufacturing index for the month of April declined to 57.3 from a reading of 59.3 in March. The reading was also below the consensus estimate of 58.4.
This was the lowest reading of ISM factory activity and represents the second month of declines. However, a reading of more than 50 indicates that the sector is expanding. Businesses have suffered on two fronts. First, higher input costs primarily due to imposition of tariffs on steel and aluminum and second, shortages of skilled labor and a disruption in the supply chain.
Moreover, the Department of Commerce reported that construction spending for the month of March plummeted 1.7%. The consensus estimate was for an acceleration of 0.4%. February data was revised to reflect an increase of 1% from the previously reported gain of 0.1%.
Concho Resources Inc. reported adjusted net earnings per share, comfortably beating the Zacks Consensus Estimate. (Read More)
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Stock Market News For May 2, 2018
U.S. stocks closed mixed on the first trading day of May. The Dow declined for the third straight trading session while S&P 500 and Nasdaq Composite reversed yesterday’s losses and closed in the green primarily due to strong gains in the technology sector led by Apple Inc. Further, the U.S. government’s decision to extend tariff exemptions to its top allies also boosted market sentiment.
The Dow Jones Industrial Average (DJI) closed at 24,099.05, declining 0.3%. However, the S&P 500 Index (INX) increased 0.3% to close at 2,654.80. The Nasdaq Composite Index (IXIC) closed at 7,130.70, increasing 0.9%. A total of 6.56 billion shares were traded on Tuesday, higher than the last 20-session average of 6.54 billion shares. Advancers outnumbered decliners on the NYSE by 1.10 -to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 1.43 to -1 ratio. The CBOE VIX decreased 2.8% and closed at 15.49.
How Did the Benchmarks Perform?
The Dow decreased 0.3% with 9 of the 30-stocks in the index closing in the green while 20 traded in the red. During yesterday’s trading session, the blue-chip index was once down 1%, nearly touching its lowest close since April 2.
Meanwhile, Fed’s two day policy meeting is in progress. Inflationary concerns and rising bond yields increased investor’s expectations that the central bank will raise interest rate very soon. This eventually led to the fall of the blue-chip index.
The S&P 500 increased 0.3% led by 1.3% gain of the Technology Select Sector SPDR (XLK). However, six out of 11 sectors of the benchmark index ended in negative territory. The index recorded 4 new 52-week highs and 19 new 52-week lows.
The Nasdaq Composite gained 0.9% as strong performance of technology stocks lifted this tech-heavy index. The index recorded 36 new 52-week highs and 72 new 52-week lows.
Technology Sector Fueled Broad-based Rally
The broader market rally was led by tech behemoth Apple Inc. (AAPL - Free Report) , which was scheduled to report second quarter of fiscal 2018 earnings results after the market close on May 1. High expectations from investors lifted the stock price by 2.3%.
Several other tech giants also put in strong showings. These include Microsoft Corp. (MSFT - Free Report) , Alphabet Inc. (GOOGL - Free Report) , NVIDIA Corp. (NVDA - Free Report) and Advanced Micro Devices Inc. (AMD - Free Report) . Shares of those companies rose 1.6%, 2.2%, 1% and 2.3%, respectively.
Trump Administration Extends Tariff Extension Period
President Donald Trump has extended the exemption period for tariffs for top U.S. allies like the European Union, Canada and Mexico. The 25% tariff on imported steel and 10% tariff on aluminum were scheduled to be imposed on the above mentioned countries on May 1.
The U.S. government has extended this date by one month to June 1. During this time, the trading partners can negotiate a new agreement to avoid the levies. Notably, in March, the Trump administration imposed tariffs on steel and aluminum imported from China, Russia, Japan and others countries.
Meanwhile, U.S. Treasury Secretary Steven Mnuchin’s will visit China this week to negotiate for trade related disputes. Market will closely watch this high level trade negotiation.
Economic Data
The Institute for Supply Management (ISM) reported that the U.S. manufacturing index for the month of April declined to 57.3 from a reading of 59.3 in March. The reading was also below the consensus estimate of 58.4.
This was the lowest reading of ISM factory activity and represents the second month of declines. However, a reading of more than 50 indicates that the sector is expanding. Businesses have suffered on two fronts. First, higher input costs primarily due to imposition of tariffs on steel and aluminum and second, shortages of skilled labor and a disruption in the supply chain.
Moreover, the Department of Commerce reported that construction spending for the month of March plummeted 1.7%. The consensus estimate was for an acceleration of 0.4%. February data was revised to reflect an increase of 1% from the previously reported gain of 0.1%.
Stock That Made Headline
C.H. Robinson Q1 Earnings & Revenues Beat, Rise Y/Y
C.H. Robinson Worldwide Inc.’s (CHRW - Free Report) first-quarter 2018 earnings per share beat the Zacks Consensus Estimate. (Read More)
Marathon Petroleum Inks $23.3B Deal to Buy Andeavor
Marathon Petroleum Corp. (MPC - Free Report) recently inked a deal worth $23.3 billion to acquire its rival Andeavor . (Read More)
Concho Q1 Earnings Top on Price & Output, Guidance Up
Concho Resources Inc. reported adjusted net earnings per share, comfortably beating the Zacks Consensus Estimate. (Read More)
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>