Markets Higher, Closing News 10/5/11

Markets continued yesterday’s late day rally in today’s session, as the Dow closed near the session highs at +131 points.  The momentum from the Financial Times report that European officials were considering recapitalizing the European banks carried into today, and were fueled by good economic data reported this afternoon.


The Institute for Supply Management (ISM) today issued their report on their non-manufacturing index, showing that the index fell from a reading of 53.3 in August to 53.0 for September.  While the reading was better than the consensus forecast of 52.8, it still indicates that the recovery is not gaining traction as expected.


ADP Payrolls were reported as increasing by 91k in September, up from a downwardly revised reading of 89k in August, and ahead of the +75k that economists expected.   The reading recently has not been a good indicator of Non-Farm Payrolls (expected to be reported on Friday) as the initial reading for August’s ADP Payrolls was up 91k, while the Non-Farm Payroll report indicated an increase of only 17k.


Oil traded higher today (+5.35% to $79.67) following a report from the U.S. Energy Information Administration that showed that crude oil inventories fell 4.68 million barrels to 336.284 million barrels from last week’s 340.963 million barrels.


Today, October 5th is the most popular day to have a birthday in the United States.  If you were born today you certainly aren’t alone, famous birthdays for the most popular birth date include Ray Kroc (founder of McDonalds), Super Bowl-winning coach Barry Switzer, actress Kate Winslet, and comedian Bernie Mac among others.  The least popular, rather the most unique, birthday is May 22nd


Market Indices/Statistics:



  • Dow closed up 131.24 pts/+1.21% to 10,939.95

  • S&P closed up 20.09 pts/+1.79% to 1,144.04

  • Nasdaq closed up 55.69 pts/+2.32% to 2,460.51

  • 26 of the 30 Dow stocks closed higher / four closed lower

  • 9 of 10 S&P 500 sectors closed higher

  • Materials was the best performing sector (up 4.18%)

  • Telecommunication Services was the only sector lower (down 0.30%)

  • The VIX was down 3.01 points to 37.81

  • Oil is up $4.00 to $79.67

  • Nat Gas is down $0.080 to $3.558

  • Gold is up $25.00to $1,640.60

  • Euro vs. Dollar down $0.0003 to $1.3343

  • Dollar vs. Yen down $0.10 to $76.76

Companies in the News:


Bank of New York Mellon traded lower (-2.87% to $18.28) following the announcement last night that the US Attorney’s Office in Manhattan filed two lawsuits relating to foreign exchange transactions, seeking the recovery of $2 billion.  Bank of New York said they will defend itself against the lawsuit, and that the lawsuit is prosecutorial overreach.


Shares of Forest Laboratories closed higher (+3.86% to $31.18) after announcing positive phase three results for a clinical trial of cariprazine, a drug used to treat acute mania associated with bipolar I disorder.


Denbury Resources Inc. announced that Tracy Evans, President and Chief Operating Officer, will resign to pursue other interests.  Evans had served as President and COO since 2009, and has been with Denbury for 12 years.  Shares of DNR traded lower (-1.93% to $11.15) in today’s session.


Verizon and Microsoft announced an agreement this afternoon that will allow Verizon FiOS customers to stream live multi-channel HD TV programming on their Xbox 360.  Shares of Verizon Communications traded lower (-0.36% to $35.77), and Microsoft traded higher (+2.45% to $25.89) on the news.


Shares of Yahoo! were higher (+5.88% to $15.92) after Reuters reported that Microsoft could be seeking for a partner to bid for Yahoo!.  Potential bidders include Providence Equity Partners, Hellman & Friedman and Silver Lake Partners.


Earnings:


Shares of  Monsanto Co. closed higher today (+5.24% to $66.25) after reporting a Q4 loss of $0.22 per share, narrower than the $0.27 per share loss that analysts were expecting.  Monsanto also beat on the top line, reporting sales of $2.2 billion vs. $1.89 billion anticipated.


Acuity Brands also traded higher (+5.88% to $39.95) after reporting Q4 earnings per share of $0.79, in line with expectations, on $496 million in sales vs. $482 million expected.  Shares were boosted by higher unit volume being reported 5% for the quarter.


Coming Thursday:


Economic Reports: Initial Jobless Claims (expected to be 410k) at 8:30, Earnings From Constellation Brands and Robbins & Myers