S&P 500 Index Extends to Intra-day Record 1,900

Nichole Harper
13 May, 2014
New York City

U.S. indexes extended gains and Asian and European markets advanced following indexes record in yesterday

[R]11:40 AM New York – U.S. indexes extended gains and Asian and European markets advanced following indexes record in yesterday’s trading. S&P 500 index touched intra-day record of 1,900. Sensex in India extended 3-day rally to more than 6% on the prospect of new and stable central government.[/R]

U.S. stocks extended gains and retail sales rose less than expected and inventories increased matching expectations set by economists.

S&P 500 index increased 0.13% to 1,899.98 and the Nasdaq Composite Index decreased 3.04 to 4,140.33.

U.S. retail sales increased 0.1% in April following revised 1.5% rise in March, Commerce Department figures showed today. March gain in retail sales was the largest since March 2010.

In a separate report the department said inventories in March increased 0.4% after rising 0.5% in February. Retail inventories, excluding autos, which are used in the GDP calculation, edged up 0.1%.

The government agency in its preliminary report had estimated GDP growth of 0.1% annual rate in the March quarter, which is likely to be revised to a contraction after the latest retail, construction and inventory reports.

The GDP growth in the first quarter is expected to be revised to a contraction of 0.65%.

New Record in Sensex in India

Market indexes in Mumbai extended surge for the third day in a row and the Sensex index closed at a record high on the expectations that the Narendra Modi led BJP and the NDA alliance will be able to form a stable government as early as next week.

The Lok Sabha election results are scheduled to be announced on May 16 and exit-polls are indicating a sharp reversal in voter sentiment from the previous two elections in 2009 and 2004.

However, exit-polls have overstated BJP and NDA win in the previous two elections and the polls have found to be unreliable.

The Sensex Index climbed 320.23 or 1.4% to close at 23,871.23 The CNX Nifty jumped 94.50 to close at 7,108.75.

Sensex in the last three days have added more than 6.5% and for the year so far has surged 12.8%, surpassing the annual gain of 9% in 2013.

Rupee continued its slow rise to 59 against one U.S. dollar as foreign investors pour money in stocks in India.

Asian Markets

Market indexes in Japan and Asia extended gains after record levels in indexes in overnight trading in the U.S.

The Nikkei 225 Stock Average jumped 275.92 or 1.9% to 14,425.44 and the Topix index gained 20.44 to 1,178.35.

The yen closed at 102.27 against the U.S. dollar. Commodities and resources focused companies gained in active trading in Tokyo.

Most Asian markets extended gains following yesterday’s record indexes in New York. Market indexes closed between 0.1% and 2% in South Korea, Hong Kong, Taiwan and Japan.

Markets in Singapore were closed today and Shanghai Composite Index decreased 0.1%.

U.S. Stocks in Review

DirecTV increased after media reports suggested company held talks with AT&T that may lead to a bid of $100 a share or $50 billion.

Elizabeth Arden Inc plunged after the maker of perfume reported weaker than expected earnings.

Keurig Green Mountain soared after Coca-Cola Company increased its stake in the maker of coffee machine maker to 16% from 10% acquired only three months ago.

According to a regulatory filing, Atlantic Industries, a Coca-Cola subsidiary holds 19.5 million stocks in Keurig.

McKesson Corp ((MCK)) increased after the largest drug wholesaler reported higher than expected adjusted earnings per share of $2.55. Revenues in the quarter increased to $38.1 billion, ahead of estimate of at least $36 billion.

Pfizer Inc increased and the company is likely to revise higher its offer of 60.4 billion pound bid for the U.K. based Astra Zeneca Plc.

Whirlpool Corp ((WHR)) decreased after Longbow Research LLC lowered its view on the stock.