The S&P 500 rallied into the close to end higher by 0.16%. The Dow gained 0.19%. Stocks opened the day poised to go lower after a weak July nonfarm payrolls report caused futures to move lower. The actual number was 175,000 against a consensus estimate of 188,000. While on its face the number was weaker than expected it also was a number that is unlikely to convince the Federal Reserve to slow down its asset purchase program. The unemployment rate declined to 7.4% from 7.6%.
Consumer discretionary, materials, and technology stocks were the leadership sectors today. The three groups gained between 0.50% and 0.70%. Discretionary stocks were led by homebuilders. The homebuilder’s index rose 1.5%. Consumer discretionary leaders like Starbucks and Nike tacked on more gains to end the week. The consumer discretionary index reached a new high today.
The technology sector rose 0.44%. Apple Computer continues to add to the gains it posted last month. The stock flirted with a multi-month high and is close to 20% above its June low. Hewlett Packard continued to work higher. The stock advanced on news of new product offerings coming. Cisco rose better than 1% and led the telecom equipment group. Chipmakers were weak on the day shedding 0.70%.
Energy was a laggard in today’s trading. Chevron was the latest large-cap energy name to report disappointing earnings. Chevron fell significantly at the open on the earnings miss and gained much of those losses back and closed lower by 1.2%.
Steel makers continued their rally off recent lows. Steel stocks rose by 0.6% and have gained more than 13% from their lows reached in the final week of June.
Source: PFS Group
