U.S. market indexes opened higher Tuesday continuing with momentum in U.S. stocks from the previous day. For the day the Dow Jones Industrial Average gained 222.44 points or 1.26 percent to close at 17,928.35. The S&P 500 was up 25.69 points or 1.25 percent to close at 2,084.38. The Nasdaq Composite closed 59.67 points or 1.26 percent to close at 4,809.88. Expectations of no change in the federal funds rate in June by the Federal Reserve appeared to keep market indexes trading flat. More clear direction from the economy’s indicators will also help markets gain a better understanding of when the Federal Reserve might next increase its federal funds rate.
Source: Google Finance. DJIA.
Tuesday’s Market Movers
Gold traded flat with futures slightly lower Tuesday. The SPDR Gold Trust ETF which tracks the movement of gold finished higher by 0.33 points or 0.27 percent on Tuesday. As economic indicators continue to remain flat many investors are turning to gold as a safe have and this is being evidenced in the GLD trust which tracks gold’s daily movement.
With only Disney reporting earnings this week the Dow Jones Industrial Average is trading flat. Disney reported earnings after the bell. The company missed expectations for revenue on earnings with revenue of $12.97 billion a gain of 4.1 percent Y/Y. EPS of $1.36 missed analysts expectations. The miss is likely to affect market trading Wednesday morning.
In the Dow Jones Industrial Average the top five gainers were:
Goldman Sachs Group Inc. 2.48 percent
Caterpillar Inc. 2.44 percent
United Technologies Corp. 2.07 percent
General Electric Co. 2.04 percent
Boeing Co. 1.98 percent
Top sectors for the broad market were energy and industrials. Stock sectors falling were healthcare and utilities.
The Nasdaq Composite closed up 59.67 points or 1.26 percent to close at 4,809.88. TripAdvisor reported Q1 EPS of $0.32 missing analysts expectations by $0.14. Revenue for the quarter was $352 million up -3.0% Y/Y and missing analysts’ expectations by $18.46 million. For the year the stock is down 22%.
In the technology sector the top gainers in the Nasdaq 100 were the following:
TripAdvisor Inc 4.77 percent
Biomarin Pharmaceutical Inc 4.04 percent
Western Digital Corp 3.81 percent
Discovery Communications Inc Class B 3.66 percent
Akamai Technologies Inc 3.63 percent
Amazon.com Inc 3.46 percent
Discovery Communications Inc C percent 3.3 percent
NetEase Inc ADR 3.2 percent
PACCAR Inc 3.17 percent
Monster Beverage Corp 2.9 percent
In small-caps, the Russell 2000 followed the day’s trend higher closing at 1,128.83 for a gain of 10.58 points or 0.95 percent. The S&P 600 closed at 693.32 for a gain of 5.45 points or 0.79 percent. The Dow Jones Small-Cap Growth TSM Index closed at 7,087.96, up 64.17 points for a gain of 0.91 percent.