MarketView for May 28

MarketView for Wednesday, May 28
 

 

 

MarketView

 

Events defining the day's trading activity on Wall Street

 

Lauren Rudd

 

Wednesday, May 28, 2014

 

 

Dow Jones Industrial Average

16,633.18

q

-42.32

-0.25%

Dow Jones Transportation Average

8,075.88

p

+58.04

+0.72%

Dow Jones Utilities Average

540.42

p

+2.61

+0.49%

NASDAQ Composite

4,225.08

q

-11.99

-0.28%

S&P 500

1,909.78

q

-2.13

-0.11%

 

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.