After an afternoon break late yesterday dip buyers returned to the market as a very early morning move to the downside was snapped up quickly. Stocks slowly but surely gained all day and yesterday’s bearish outside day was chalked up to a news event and nothing else. The S&P 500 gained 0.49% and the NASDAQ 0.68%. There was a really bad economic data point on final gross domestic product for quarter 1, but it was very backwards looking so the market shrugged it off. That said, wow – quite bad at -2.9%. Separately, durable goods fell 1.0%.
After pushing through and then reversing back down through it’s early March highs the NASDAQ broke back above that level today at the end of the day and close there. We’ll look at the longer term charts of the indexes today – you can see the NASDAQ at those March highs with free space ahead. The S&P 500 has been dancing around this upper trend line that connected the lows of summer 2013.
Shares of CBS (CBS) jumped after the U.S. Supreme Court ruled that online TV startup Aereo Inc violates copyright law by using tiny antennas to provide subscribers with broadcast network content via the Internet.
Monsanto (MON) rallied after the world’s largest seed company raised the low end of its full-year outlook and said it plans to offer debt to help finance a $10 billion stock buyback.
Schlumberger (SLB) predicted that its earnings per share would increase at a compound annual growth rate of 17%-20% versus analyst expectations of 15%. This was enough to move the needle on the name which had acted very well during the 2 month selloff in the market.
We’ve mentioned online real estate company Zillow (Z) quite a few times this past month; it continues to work although very volatile. But be aware during a downturn this is the type of name can fall very hard so it’s more of a trading stock than a holding stock – but right now it’s one that is working wonders.