8-day Rally Extends 2-Month Rebound in S&P 500 to 7.5%

Nichole Harper
10 Jun, 2014
New York City

Stocks on Wall Street searched for a direction after rising in seven of last eight sessions. S&P 500 index has rebounded 7.5% from the low in April and gained 5.4% in the year so far.

[R]12:10 PM New York – Stocks on Wall Street searched for a direction after rising in seven of last eight sessions. S&P 500 index has rebounded 7.5% from the low in April and gained 5.4% in the year so far.[/R]

Stocks on Wall Street traded lower after the widely followed S&P 500 index gained in seven of the last eight trading days.

S&P 500 index decreased 0.2% or 3.26 to 1,948.02 and the Nasdaq Composite Index declined 0.15% or 6.31 to 4,329.96.

S&P 500 index has gained 7.5% since the low in April after economic data showed an improvement in the economy following harsh winter months. Auto sales, construction and retail sales have either met or exceeded expectations.

Wholesale inventories after adjusting for season factors increased 1.1% in April from March, according to the latest data released by the Commerce Department.

On the deal front, Allergan rejected latest takeover bid from Valeant and said the offer is not in the best interest of its shareholders.

U.S. Stocks in Review

MetLife Inc ((MET)) increased 0.5% to $54.94 after the largest life insurer announced a plan to purchase $1 billion of common stock, the first purchase since 2008.

Molson Coors Brewing Company ((TAP)) rose 5.6% to $70.84 after the second largest brewer reported 83% increase in earnings.

RadioShack Corp ((RSH)) dropped 9.7% to $1.39 after the struggling electronics retailer reported ninth quarterly sales decline in a row and loss widened to $98 million.

Receptors Inc ((RCPT)) soared 35% to $39.65 after the company said second-phase trial for its drug RPC1063 showed reduced brain lesions in patients with recurring multiple sclerosis.

Tyson Foods Inc ((TSN)) declined 4% to $35.88 and extended losses to the sixth day after the largest meat processor lifted its offer to $7.7 billion for Hillshire Brands Co.

Urban Outfitters Inc ((URBN)) fell 2.8% to $33.70 after the retailer said same-store sales in the quarter so far are unchanged from a year ago quarter.

European Markets

In London trading, FTSE 100 index fell 0.2% or 12.17 to 6,862.83 and in Frankfurt the DAX index gained 0.1% or 11.71 to 10,020.34.

In Paris, CAC 40 index inched up 0.02% or 1.10 to 4,590.22.

CML Microsystems profit climbed 18% and revenue fell 1%. Carclo profit surged 48%. Phoenix IT Group pre-tax loss narrowed to £29 million. Tesco launched banking services at stores.

Asian Markets

The Nikkei 225 Stock Average slipped 129.20 or 0.8% to 14,994.80 and the broader Topix index fell 6.05 to 1,228.73.

The yen gained to close at 102.30 against one U.S. dollar.

Stocks in Tokyo halted after a 12-day rally and the yen gained on the growing speculation that Bank of Japan stimulus steps are working through the economy. Token Corp fiscal sales rose 7%.

The Sensex Index edged up 3.48 to close at 25,583.69 The CNX Nifty inched up 1.80 to 7,656.40.

Eros agreed to acquire a controlling stake in Universal Power System. Geometric signed maintenance contract with Sweden-based AB Volvo. HDFC Bank trimmed its stake in Reliance Ports. Tata Power increased its power generation capacity in Maharashtra with the launch of solar power plant.