Courtesy of Blain.
Friday was almost the complete opposite of Thursday – especially in the NASDAQ. Yesterday we wrote how it was difficult for the NASDAQ to rally without the potent combo of Apple + biotechs, which both suffered yesterday. Today both jumped and the results were predictable. The S&P 500 rallied 1.09% and the NASDAQ 1.29%. We will begin to see more economic data that matters as the first week of the month is chock full of interesting reports. Today we had manufacturing and construction:
April’s manufacturing ISM index missed slightly, coming in at 51.5, unchanged from the previous month. The report was expected to show a modest rise to 52 that would follow five consecutive months of weakening. Any reading over 50 signals expansion. Construction spending data for March showed a decline of 0.6 percent.
The question for next week will be was that bearish outside reversal a “short term” top, or did it have more meaning in the intermediate term. It sure did its job as a signal for the next few days. As for the S&P 500 there has been a lot of volatility but we’ve seen really no progress either way since February.
NYSE McClellan Oscillator rallied some but is not in positive territory as bulls want.
There is your Apple (AAPL) and biotechs (ETF: IBB) both up 3%.
Yesterday Celgene hurt the biotechs, today Gilead (GILD) helped them.
April auto sales showed an annual rate of 16.45 million, Autodata said. The figure was slightly below estimates but still a 4.6 percent gain from the same period last year. General Motors (GM) and Ford (F) reported stronger-than-expected U.S. auto sales, with GM sales up nearly 6 percent and Ford posting a 5.4 percent gain from the same month last year.
Yum Brands (YUM) jumped to highs not seen since its spinoff from PepsiCo on news that Dan Loeb’s Third Point took a significant stake in the firm.
Travel site Expedia (EXPE) turned in sales results that topped Wall Street’s estimates.
Have a good weekend and we’ll see you back here Monday.
