Market Roundup: Holiday-Shortened Week Ends in Green Territory

Economy/Stock Market

After observing Memorial Day, market action was mixed on Tuesday. Both the Dow Jones Industrial Average and S&P 500 Index shed some points, while the NASDAQ landed in green territory for the session. Consumer confidence decreased this month, as the Conference Board reported a downswing to 92.6 in May from 94.7 in April, noting a slight slowing in the labor market. On another note, Commerce Department figures showed consumer spending ticked up in April with a 1% jump versus expectations of 0.7%. The result marked the strongest increase in seven years. Substantial demand for new vehicles and higher fuel prices led the advance. U.S. trading volumes were low on Wednesday, with nearly 6.5 billion shares exchanging hands compared with the year-to-date average of 7.8 billion shares. Despite the low volume, the major indices closed with gains. Indices closed with slight gains on Thursday, while the S&P 500 traded up to a seven-month high. Initial jobless claims decreased, dipping by 1,000 to 267,000. Crude oil moved up on a downswing in inventory levels when reserves retreated by 1.4 million barrels in the past week. Stocks ended in the red zone on Friday despite rebounding from early low levels. Less-than-stellar employment numbers likely led the decline. Labor Department figures showed an addition of 38,000 non-farm payrolls for May, versus economist expectations of 164,000. Additionally, numbers for March and April were downwardly revised by a combined amount of 59,000. Services industry activity also retreated in May as ISM non-manufacturing index dipped to 52.9 from 55.7 in April.

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.