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MarketView
Events defining the day's trading activity on Wall Street
Lauren Rudd
Wednesday, May 28, 2014
Summary
The S&P 500 index ended what was a four-session
winning streak on to end the day on Wednesday just shy of a third
straight record closing high. The benchmark index had gained for four
straight sessions the hunger for equities was buoyed by supportive
economic data along with expectations of monetary easing by the European
Central Bank. The 10-year U.S. Treasury note's yield slipped below 2.44
percent, its lowest level since July. The drop in fixed-income yields could lift the
prices of dividend-paying stocks. The S&P utilities index rose 0.5
percent. It was the S&P 500's best-performing sector. The Dow Jones Transportation Average extended its
run into record territory, ending at a lifetime high of 8,075.88 after
hitting a record intraday high of 8,102.44. On Tuesday, the DJ
Transportation Average closed above 8,000 for the first time. When the
transports sector does well and is confirmed by a similar move in the
Dow industrials, the trend signals an improved outlook for the economy
and the stock market. This is basic Dow theory. A total of 225 stocks on the Big Board and Nasdaq
touched 52-week highs, while 59 issues hit 52-week lows. Notables
touching 52-week highs included ConocoPhillips and Dow Chemical. The S&P 500 index hit 1,914.46 during the session,
an intraday record high. It remains in the 1,910 area seen as technical
resistance. Support stands at 1,900 and then at the 14-day moving
average, now near 1,889. Among retailers, Michael Kors was up 1.3 percent to
$97.01 following the company's quarterly earnings as sales surged in
North America. However, the company cautioned it expected the cost of
opening new stores in Europe to depress gross margins in the next few
quarters. In contrast, footwear retailer DSW lost more than a
fourth of its market value after the company missed estimates on its
results and outlooks. The stock was down 27.4 percent to $23.62. Volume was modest, with about 5.38 billion shares
changing hands on the major equity exchanges, a number that was below
the 5.79 billion share average so far this month, according to data from
BATS Global Markets.
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MarketView for May 28
MarketView for Wednesday, May 28