More poor economic news - more record highs; it's the market of 2013. The S&P 500 gained 0.25% and the NASDAQ 0.66% as the rotation into tech stocks continues and any and all news is considered positive. Today it was the Chicago Purchasing Managers index which fell to a contractionary level, and at its lowest level since late 2009. Doesn't matter - stocks sold off for all of 2 hours before roaring back. There was a decent consumer confidence figure but that usually is not a big market mover. For the month fo April the S&P 500 gained 1.81% and the NASDAQ 1.88% as this year's winning streak has no relent. News flow will pick up dramatically in the next few days as central bank announcements and key economic reports on manufacturing, services, and employment hit.
Stocks finished at an all time high on the S&P 500 as all news is good news continues to be the mantra. The S&P 500 finished up 0.72% and the NASDAQ 0.85% as the correction of a week and a half ago is now a distant memory. The swearing in of a government in Italy seemed to make markets happy as the Italian market jumped 2.2%. The European Central Bank meets this week and expectations are now high for a rate cut. The tech sector took the lead in U.S. markets Monday which would be a welcome development.
Happy Saturday everyone. With the Q1 2013 survey now completed I wanted to share the results.
First off, we had a record number of readers participated this time around, 317, which is over 100 more than last quarter. There are over 16,000 subscribers to our Market Recaps, and on average about 2,500 of you read them each day. So, I am pleased with a 12.7% reach. Thank you!
Stocks finished off a big week in quiet fashion with a mild consolidation which is exactly what bulls wanted to work off a near term overbought condition. Quarterly GDP was released in the morning at 2.5% which was not too hold, nor too cold - but at this point any economic data can be explained away as a reason to buy stocks (good data is good, and bad data means more intervention by central bankers). There were a lot of interesting earning reports which we'll dive into later in the piece. For the day the S&P 500 finished down 0.18% and the NASDAQ 0.33%. For the week the S&P gained 1.74% and the NASDAQ 2.28% nearly erasing all of last week's losses.
Thursday continued another breathtaking advance in a series of them since 2009. Since bottoming out a week ago the S&P 500 has essentially traveled 50 points up in a straight line despite a bevy of weak economic data, and corporate earnings that showed lagging revenue while beating (lowered) guidance. The bears seem powerless. The only thing that stopped the bulls today was a late day news report that Germany's court had some issues with the ECB's backstop plan for Italy and Spain - but it was essentially an excuse to breathe after a romp all week. The S&P 500 gained 0.4% and NASDAQ 0.62%.