*from www.bloomberg.com, April 11, 2013 (To view original article click here.)
Take Away #1: U.S. stocks rose once again, after the S&P 500 Index rallied to a record yesterday.
Key Facts and Figures:
- The S&P 500 increased 0.5% to a record 1,594.94 at 10:58 a.m. in New York.
- The Dow Jones Industrial Average added 61.63 points, or 0.4%, to 14,863.87, also a record.
- Trading in the S&P 500 stocks was 9.1% above the 30-day average at this time of day.
- The S&P 500 surged 1.2% yesterday, gaining for a third straight day, as China’s imports grew, Japan reiterated its stimulus plans, and investors speculated earnings will beat estimates.
- The benchmark index has rallied 2.7% so far this week.
- It has more than doubled from its 12-year low in March 2009, helped by the Federal Reserve’s unprecedented bond purchases and three straight years of profit growth.
Take Away #2: Gains by retailers offset a slump in technology shares.
Key Facts and Figures:
- Ross Stores Inc. and Limited Brands Inc. climbed at least 4.7% amid better-than-forecast March sales.
- Technology shares slumped after personal-computer shipments in the first quarter plunged the most since at least 1994.
- Goldman Sachs Group Inc. downgraded Microsoft Corp. shares.
- Microsoft and Hewlett-Packard Co. lost more than 4.8%.
Take Away #3: Jobless claims decreased by more than estimated but while the economy looks like it’s getting better, it may not be enough for the Fed to slow its bond purchases.
Key Facts and Figures:
- Jobless claims decreased by 42,000 to 346,000 in the week ended April 6, from a revised 388,000, Labor Dept. figures showed today.
- The median forecast of 49 economists surveyed by Bloomberg called for a drop to 360,000.
- Holidays such as Easter that fall on different weeks from year to year make it difficult to smooth out swings in the data, leading to increased volatility.
Take Away #4: The Chicago Board Options Exchange Volatility Index (VIX), which measures the cost of options as insurance against declines in the S&P 500, fell.
Key Facts and Figures:
- The gauge, known as the VIX fell 1.5% to 12.17.
- The VIX is down 32% this year and reached its lowest level since February 2007 in March.
Take Away #5: Twenty-one out of 24 industries in the S&P 500 gained.
Key Facts and Figures:
- Retailers in the S&P 500 jumped the most rallying 1.6%.
- Ross Stores rose 7% to $64.46.
- The operator of apparel and home accessories stores said sales at stores open at least one year climbed 2% in March.
- Analysts forecast a drop of 1.3%.
- Limited Brands, owner of the Victoria’s Secret chain, added 4.7% to $50.44.
- Its March same-store sales gained 3%, beating estimates of a 0.4% advance.
- Rite Aid Corp. jumped 20% to $2.15, the highest level since 2009.
- The drugstore chains reported its first annual profit since 2007 as it benefitted from a focus on wellness programs.
- About 17% of the chain’s 4,623 locations have been turned into wellness centers featuring expanded pharmacy services and health-focused products.
Take Away #6: The S&P Information Technology Index dropped after a surge yesterday.
Key Facts and Figures:
- The S&P Information Technology Index dropped 0.7%, after the biggest rally since Jan. 2 yesterday.
- Personal-Computer shipments plummeted in every region of the world in the first quarter as buyers opted for smartphones and tablet computers.
- Microsoft’s newest operating system met with weak demand.
- Global PC unit shipments fell 14%, a bigger drop than the 7.7% decline IDC had forecast, the market researcher said.
- Microsoft fell 4.8% to $28.82.
- Goldman Sachs cut Microsoft to sell from neutral citing worsening trends for personal computers and its lack of success in tablets and smartphones.
- Hewlett-Packard Co., the world’s largest personal-computer maker, slid 6.1% to $20.95.
- Chipmaker Intel Corp. retreated 2.8% to $21.64.
- Fortinet Inc. plunged 16% to $18.27.
- Profit excluding some costs was probably 10 cents a share in the latest quarter, the provider of computer-network security said.
- According to analysts’ projections compiled by Bloomberg, the average projection was 12 cents per share.
- Sales were $134 million to $136 million versus an estimate for $140.4 million.
*To view original article from www.bloomberg.com click here.