A day after posting the worst day of the young year, markets posted their best day of the year. So while yesterday was a day to note due to the selling volume, it has been a fool’s errand in the past year and few weeks to really make any distinct bets against this freight train. The S&P 500 gained 1.08% and the NASDAQ 1.69%. Positive data on retail sales led to a morning gap up, and momentum held all day.
Excluding spending on autos, gas and building supplies, sales increased 0.7 percent in December, the Commerce Department reported. That was better than the increase of 0.4 percent forecast by economists. Overall retail sales increased 0.2 percent.
A decent down day yesterday but these indexes snapped back sharply today.
Even with yesterday’s heavy selling, the NYSE McClellan Oscillator remained over zero which is, all other things being equal, a positive.
Tesla Motors (TSLA) had a large move on a huge spike in volume as the company delivered almost 6,900 Model S sedans in the quarter, 20 percent above what the company had forecast.
Intel (INTC) climbed 3.96% percent after analysts at JPMorgan raised their rating on the chipmaker’s stock and predicted that demand for PCs will stabilize this year and that the company’s CEO will focus on improving margins and returns. It is an interesting call just days ahead of the company’s earnings report.
Two major banks, JPMorgan (JPM) and Wells Fargo (WFC) reported earnings today but their stocks did not move much. JPMorgan, the nation’s biggest bank by assets, rose 0.07 percent after reporting gains in most of its divisions except for investment banking. Wells Fargo also rose 0.07 percent after the nation’s biggest mortgage lender reported a sharp drop in its mortgage business even as its bottom line income rose 11 percent.
Gamestop (GME) was the big loser of the day as the world’s largest video game retailer gave a profit forecast that fell below Wall Street’s expectations for its crucial holiday quarter, despite higher-than-expected sales. The stock had an amazing run in 2013.