U.S. indexes opened sharply down on some poor purchasing managers data out of China but rallied back sharply mid morning on U.S. ISM Non Manufacturing data. The rest of the session was fairly quiet with a small rally in the closing hour to push the S&P 500 to a gain of 0.19% and the NASDAQ 0.34%.
Growth in the U.S. services sector accelerated in April, rising at the fastest pace in eight months as new orders jumped and overall activity quickened by the most since early 2008. The Institute for Supply Management said its services sector index rose to 55.2 in April from 53.1 in March, topping expectations for a read of 54.1. The April read marked the 52nd straight month the index was above 50, the level that separates expansion from contraction, and was the latest sign the impact of the harsh winter was ebbing. Moreover, the April pace was the highest since August’s reading of 57.9, which had been a seven-year high.
We mentioned the chart of Apple (AAPL) specifically Friday as it was forming a nice flag pattern where gains created post earnings had by and large held. From those type of charts can come a new leg up shortly after (within a week or two) – that might have started today as Apple returned to the $600s.
Target (TGT) fell after news Chief Executive and Chairman Gregg Steinhafel would depart the discount retailer in the aftermath of the massive data breach late last year.
Shares of JPMorgan Chase (JPM) fell after the bank said late Friday it expects second-quarter revenue from bond and equity trading to decline about 20 percent from a year ago.
Gilead Sciences (GILD), one of the mega camp biotech companies that was beaten down the past 2 months, has show some life here the past 2 weeks, and might have found a bottom.