US stocks ended in a mixed mode on Monday, 06 May 2013. With no economic news of note and two major foreign markets closed (Japan and the United Kingdom), investors reacted to quarterly earnings. Socks mostly advanced on Monday initially continuing the S&P 500 index's record run above 1,600 after the April jobs report exceeded expectations last week.
For the day, the Dow ended lower by 5.07 points (0.03%) at 14,968.89. Nasdaq ended higher by 14.34 points (0.42%) at 3,392.97. S&P 500 ended higher by 3.08 points (0.2%) at 1,617.5.
Financials and technology fared best and utilities and consumer staples led the declines on Monday. Sixteen out of thirty Dow components ended lower led by IBM and Intel.
Dow component Intel shares held steady after the chip manufacturer's McAfee security unit offered to purchase Finland's Stonesoft Oyj for $389 million.
The consumer staples sector was pressured by Tyson Foods and Sysco after both names reported their quarterly results. While Sysco missed on the top-line, Tyson Foods reported below-consensus earnings and revenue.
While all defensive groups traded in the red, three cyclical sectors had been able to outperform.
The financial space has showed relative strength from the opening bell. MBIA had spiked 40.1% after the insurer reached a $1.7 billion settlement with Bank of America. In addition, Bank of America has disclosed a 5.0% stake in MBIA.
Elsewhere, the technology sector paced last week's advance, and that pattern had continued into today. Apple was higher by 2.7% after Barclays raised its price target for the stock to $525 from $465. Meanwhile, Google also notched a fresh all-time high.
Crude-oil prices ended moderately higher on Monday, 06 May 2013 at Nymex. Prices ended higher as traders grew wary over the potential supply-and-demand consequences of geopolitical tensions in the Middle East. Light and sweet crude for June ended higher by $0.55 (0.6%) at $96.16 a barrel on the New York Mercantile Exchange on Monday.
In overnight news, London was closed for a public holiday, which made for quieter dealings in the foreign exchange market. The European Union overall purchasing managers' index declined in April, but by less than forecast by economists. However, the German economy, the largest in the EU, is showing weakness. The Markit composite PMI for the EU came in at 46.9 in April from 46.5 in March. A reading below 50.0 shows contraction in business activity.
Israeli missile strikes inside Syrian territory over the weekend have attracted the attention of the market place.
In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.25% on Monday.
Bullion metal prices ended mixed on Monday, 06 May 2013. Gold ended moderately higher while silver edged down slightly lower. Recent good demand for physical gold continues to underpin the market. Gold for June delivery ended higher by $3.8 (0.3%) at $1,468 an ounce on the Comex division of the New York Mercantile Exchange on Monday. July silver ended lower by $0.06 cents (0.3%) at $23.96 an ounce on Monday.
For every two shares that fell, roughly three gained on the New York Stock Exchange, where 619 million shares traded. Composite volume topped 3 billion.
Indian ADRs ended mixed on Monday. In the IT space, Infosys was down 0.4% and Wipro was down 0.2%. In the Banking space, HDFC Bank was up 0.5% and ICICI Bank was up 3%. In the Telecom space, Tata Communication was down 0.7%. In other space, Tata Motors was up 1.8%, Dr Reddys was down 1.2% and Sterlite was down 0.14%.
Tomorrow, economic data will be limited to the 15:00 ET release of March consumer credit. Among earnings of note, Fossil and OfficeMax will report their results ahead of the opening bell.
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