Market Roundup: Markets Rally Despite Monday’s Initial Loss

Economy/Stock Market

Indices began the week with a loss as Utilities and Telecommunication stocks led the slight downswing. West Texas Intermediate crude shed 0.7% to settle at $48.08 a barrel. Despite the rough beginning, the market indices traded well into the green zone on Tuesday. New home sales increased to an eight-year high in April. Sales jumped 16.6% last month to an annual pace of 619,000 versus expectations of 525,000. Stocks continued to rally on Wednesday with several Financial stocks posting gains after a jump in crude oil. Additionally, several Energy stocks stepped up on a dip in inventories. Energy Information Administration data showed reserves decreased by 4.2 million barrels in the past week. Markets were mixed on Thursday as the Dow Jones Industrial Average and S&P 500 traded slightly lower, while the NASDAQ ended in the green zone. Initial jobless claims decreased as Labor Department data showed new filings for the prior week dipped by 10,000 to 268,000. On another note, durable goods orders increased by 3.4% in April. Technology, Financial and Consumer Discretionary stocks posted gains on Friday amid a variety of economic news. Revised gross domestic product numbers may have been an inspiration. The economy expanded at a pace of 0.8% in the first quarter, versus the previous estimate of 0.5% growth. The revised data was shy of an expected 0.9% rate. 

Market Roundup: Stocks Close Higher Despite Hawkish Fed Comments

Economy/Stock Market

Stocks started the week on a high note, with Energy and Technology stocks leading the upswing. West Texas Intermediate crude oil also settled at $47.72 a barrel. Stocks traded lower on Tuesday. Consumer prices increased in April as the Consumer Price Index rose 0.4% versus March’s uptick of 0.1% and February’s 0.2% decline. Core prices, discounting food and energy, jumped 0.2% as expected. Industrial production ramped up by 0.7% in April versus expectations of a 0.3% expansion, while Commerce Department data showed housing starts climbed 6.6% in April to an annual rate of 1.17 million units. The stock indices closed out Wednesday’s trading session mixed on Federal Reserve comments. Minutes from April’s Federal Open Market Committee meeting showed a rate hike is somewhat likely for June, but only if economic data warrants it. Crude oil retreated midweek with West Texas Intermediate crude settling at $48.19 a barrel. Figures from the Energy Information Administration showed a 1.3 million barrels lift in inventories in the past week. Stocks rebounded somewhat in Thursday’s afternoon momentum. Labor Department data showed first-time claims for unemployment benefits decreased by 16,000 to 278,000, while continuing claims dipped by 13,000 to 2.152 million last week. Indices closed in the green zone on Friday. Better-than-expected quarterly data led the Technology sector higher. West Texas Intermediate crude oil settled the week at $47.75 a barrel. Existing home sales ticked up in April as data from the National Association of Realtors showed a 1.7 percent increase to an annual rate of 5.45 million units. Sales in March were revised slightly higher to 5.36 million units from the initially reported 5.33 million.