U.S. stock indices finished lower after reversing earlier gains as the markets digested some mixed housing data, better-than-expected consumer confidence, continued geopolitical concerns surrounding Iraq and various Fed-speak. The S&P 500 touched a fresh intraday all-time-high in early trading, however investors took the opportunity to book profits as the major indexes hover near record levels. Of the major sectors, Energy and Industrials topped declines, while Utilities and Healthcare were the only two groups to finish on the plus side. Oil is lower while Gold and the dollar advance.
In US economic news, home price data largely disappointed, with the S&P/Case-Shiller 20-city home price index rising 0.2% m/m in April vs consensus of +0.8%. The Index is up 10.8% y/y, down from 12.4% in March. FHFA’s house price index was unchanged in April vs consensus +0.5%. The Index is up 5.9% y/y. However, new home sales rose 18.6% m/m in May to a 504K saar. The reading was ahead of consensus of 440K. It was the fastest increase since January 1992 and highest level since May 2008. Consumer Confidence was better in June, coming in at 85.2 vs 82.2 in May and above consensus of 83.5
On the geopolitical front, there were more reports today out of Iraq highlighting the elevated pressure on Iraqi Prime Minister Nouri al-Maliki to step down with politician Ahmed Chalabi emerging as a possible successor. A NY Times article pointed out that US Sec of State John Kerry stressed on Monday that if military action is taken soon, it should not be considered to be an act of support for Maliki or for one sect or another.
We saw better headlines surrounding the crisis in Ukraine today as separatist leaders recently agreed to join a government-declared ceasefire until Friday. Russian President Putin also submitted a request today to revoke a resolution authorizing military intervention in Ukraine.
Market Indices/Statistics:
- Dow closed down 119.13 pts. / -0.70% to 16,818.13; 26 of the 30 Dow stocks closed lower.
- S&P closed down 12.63 pts. / -0.64% to 1,949.98; 8 of the 10 S&P 500 sectors closed lower.
- Nasdaq closed down 18.32 pts. / -0.42% to 4,350.36
- Energy was the weakest (-1.98%) Utilities were the strongest sector (+0.25%)
- The VIX is up 1.15 to 12.13
- Gold is up 0.7 to 1319.0
- Oil is down 0.15 to 106.02
- Nat Gas is down 0.001 to 4.704
- Yen vs. Dollar is up 0.01 to 101.96
- Euro vs. Dollar is unch at 1.3604
- The US Dollar Index (DXY) is up 0.05 at 80.32
Top Headlines:
Vertex Pharmaceuticals Inc (VRTX) rose 40.92% to $93.53, and was the S&P 500's biggest gainer after Vertex said a combination of drugs designed to treat cystic fibrosis succeeded in improving lung function in a pair of closely watched late-stage clinical trials.
IsoRay, Inc. (NYSE MKT: ISR), a medical technology company and innovator in seed brachytherapy and medical radioisotope applications, today announced another milestone – the world's First Liquid Cesium-131 (Cesitrex(R)) Treatment for Metastatic Brain Cancer which recently was FDA cleared for internal radiation therapy. The news pushed shares of ISR 11.24% higher to $2.97 in active NY trading.
Walgreen Co. (NYSE: WAG), the largest drug retailer in the United States reported a 15.7% rise in quarterly profit, helped by strong growth in prescription sales. Prescription sales, which make up for nearly 65% of the company's total sales, rose 8.4% in the third quarter. Shares of WAG slipped 1.7% to $72.48.
Coming Wednesday
U.S. Economic Reports:
MBA Mortgage Applications at 7am ET - prior +9.3%
Durable Orders (May) at 8:30am ET - consensus +0.5%, prior +0.6%
Durable Orders ex transport (May) at 8:30am ET – prior +0.3%
GDP (Q1-second revision) at 8:30am ET – prior (1.0%)
GDP Deflator (Q1-second revision) at 8:30am ET – prior +1.3%
PMI Services flash (Jun) at 9:45am ET – prior 58.1
Earnings Wednesday:
BMO: Apollo Education (APOL); Barnes & Noble (BKS); General Mills (GIS); Lindsay Corp (LNN); Monsanto (MON); Overhill Farms (OFI); Omnova Solutions (OMN); Penn Virginia Resources Partners (PVR); Seanergy Martime Holdings (SHIP)
AMC: Bed Bath & Beyond (BBBY); China Hydroelectric Corp (CHC); Casella Waste (CWST); Dataram (DRAM); DynaVox (DVOXQ); H.B. Fuller (FUL); Pacer International (PACR); Supertex (SUPX)
Here at the NYSE- Opening and Closing Bells
Molson Coors Brewing Company (NYSE: TAP), one of the world’s largest brewers, led by President and CEO Peter Swinburn and members of the company’s management team, will visit the New York Stock Exchange (NYSE) and ring The Closing Bell®.
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