S&P 500 Closes at Record High

Edited by Vani Rao

Positive momentum seen in 7 of 10 sectors, led by Consumer Discretionary

The US equity markets witnessed limited gains on Monday, June 2, 2014, with the S&P 500 and the Dow Jones Industrial Average mapping gains of 0.07% and 0.16%, respectively. On the other hand, the NASDAQ Composite Index finished the day 0.13% lower.

However, on Tuesday, June 3, 2014, the US markets witnessed a reversal of minor gains, with all the three indexes finishing in the red. The S&P 500 and Dow Jones Industrial Average lost 0.04% and 0.13%, respectively, while the NASDAQ Composite Index fell for a second consecutive trading session to close the session 0.07% lower.

On Wednesday, June 4, 2014, the US equity markets witnessed light trading volumes for the first three trading sessions, as investors adopted a wait-and-watch approach ahead of key data releases in the current week. However, the broader market shrugged off weaker-than-expected labour market data and managed to post slight gains.

The S&P 500 closed at a record high for the 16th time this year, finishing at 1,927.88, up 0.19% (as shown in the graph below). The Dow Jones Industrial Average and the NASDAQ Composite Index gained 0.09% and 0.41%, respectively. The positive momentum was observed in 7 out of 10 sectors, led by the Consumer Discretionary sector which rose 0.44%. The Financials and Consumer Staples sectors mapped gains of 0.32% and 0.31%, respectively, to trigger gains in the broader markets.

Source: Bloomberg
Source: Bloomberg

Data releases to decide course of equities markets

It is evident that investors are taking a reluctant stance ahead of the European Central Bank policy meeting on Thursday, June 5, 2014, and the US government’s May non-farm payrolls report on Friday. Moreover, the Bank of England is scheduled to announce its benchmark interest rates on Thursday. All these events will hold a great significance for the equity markets around the globe and would indicate the momentum in the coming trading sessions.

Movers

Amid low trading volumes and limited gains, the shares of the below-mentioned companies finished as the top gainers on Wednesday:

  • Shares in Vanda Pharmaceuticals Inc. (NASDAQ:VNDA), a Washington-based biopharmaceutical company, surged 25.35%, closing the day at $12.56.
  • Florida-based deep-ocean shipwrecks exploration company Odyssey Marine Exploration Inc.’s (NASDAQ:OMEX) stock rose 19.84% to user gains in the broader markets.
  • Shares in Uranium Energy Corp. (AMEX:UEC), a Texas-based company engaged in the exploration and extraction of uranium, gained 12.18% to finish the day at $1.75.

Shakers

The following stocks tried to pull down the US equity markets during the trading session on Wednesday.

  • Annie’s Inc. (NYSE: BNNY) emerged as the worst-performing stock on Wednesday. The stock fell by 7.76% to close at $30.07, after the company disclosed that it has identified a material weakness in its internal control over financial reporting.
  • Shares in JinkoSolar Holding Co. Ltd (NYSE:JKS), a China-based provider of solar modules, saw its shares plunged by 7.51%, finishing the day at $24.99.
  • China Digital TV Holding Co. Ltd (NYSE:STV), a Beijing-based application software maker, witnessed a decline of 6.31% in its shares, closing at $3.12.

Global Market Snapshot

The global markets too were anxious before the important data releases, as the majority of the markets in Europe and the Asia Pacific closed in the red.

The FTSE 100 Index finished the session 0.26% lower at 6,818.63, on Wednesday June, 4, 2014, as indicated in the graph below.

Source: Bloomberg
Source: Bloomberg

Meanwhile a mixed sentiment was observed in the Asian markets. Japan’s Nikkei 225 Index gained for the third consecutive day to finish the session at 15,067.96, up 0.22%.

Source: Bloomberg
Source: Bloomberg

On the other hand, the Hong Kong Hang Seng Index fell by 0.60% to close at 23,151.71, as indicted in the graph below.

Source: Bloomberg
Source: Bloomberg

 

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