S&P 500 sets new highs, but May uncertainties await
An early sell-off turns into a rally. The question now is if the stock market will weather the next few months.
The Standard & Poor 500's ($INX) finish on Tuesday was both a new closing and intraday high. It came close to hitting 1,600 for the first time. The Dow Jones Industrials ($INDU) finished with its second-highest close ever. Moreover, it was the eighth straight year the blue chips have ended higher in April. And the Nasdaq Composite Index ($COMPX) ended the month at a 12-and-a-half year high.
All of this came as Apple (AAPL) sold $17 billion worth of bonds, and traders said the tech giant could have sold $50 billion. Its shares jumped $12.66 to $442.78 and are up 15% since hitting an intraday low on April 19.
Back to May: the month was not only forgettable in 2010, 2011 and 2012, but each of those Mays signaled start of a pretty nasty pullback.
Does that mean May will be awful yet one more time? Hard to say; except that U.S. stocks have had a big run so far this year, with the major averages up 10% or more for the year. And there are some technical concerns as well.
Plus, the domestic and global economies look to be slowing. That picture will sharpen into better focus this week, when the Federal Reserve releases its interest-rate statement on Wednesday and the Labor Department reports on unemployment and payroll jobs on Friday.
So, let's give April a nice sendoff. The Dow ended the day up 21 points to 14,840, 25 points below its peak close of 14,865.14, reached on April 11. The S&P 500 finished up 4 points to 1,597.57, both a closing and an intraday high. The Nasdaq closed up 22 points to 3,329, its best finish since Nov. 7, 2000.
The Dow, up 1.8% for the month, has gained 13.3% for the year. It's had gains for five straight months, its longest monthly winning streak since 2009. The S&P 500 gained 1.8% for April and has enjoyed a 12% gain so far this year. The Nasdaq clawed its way to a 1.9% gain for the month; it's up 10.2% for the 2013.
The S&P 500 and Nasdaq have enjoyed six straight monthly gains, their best monthly streak since 2009.
The market's finish was dramatic: The Dow was down as many as 84 points around 10:30 a.m. ET -- and then rebounded smartly to the close.
Crude oil (-CL) ended the day down $1.04 to $93.46. Crude was down 3.9% for the month and is up 1.8% this year. Gold (-GC) gained $4.70 to $1,472.10 an ounce, but it ended April down 7.8% and is down an astonishing 12.2% for the year. Silver (-SI), up 2.2 cents to $24.14 for the day, still finished down 14.8% for the month and is down 20.1% for the year.
The stock market's performance this year is notable for its divergences. Sprinting ahead have been the utilities and healthcare sectors, up 15% and 12%, respectively. Laggards include materials and technology stocks, up 4% and 5% respectively. Sizable spreads between sectors can be signals of trouble ahead.
The Dow's 21 winners for the month included Microsoft (MSFT), up 15.7%; DuPont (DD), up 10.9%; and Walt Disney (DIS), up 10.6%. Disney, in fact, hit new intraday and closing highs on Monday: $63.25 and $63, respectively. (Microsoft owns and publishes MoneyNOW, an MSN Money site.)
The losers were Hewlett-Packard (HPQ), down 13.6% for the month, followed by IBM (IBM), down 5%, and General Electric (GE), down 3.6%.
The S&P 500's April winners were First Solar (FSLR), up 72.7%, followed by Gamestop (GME), 24.8% and Akamai Technologies (AKAM), up 24.3%. A total of 304 S&P 500 stocks were higher.
The biggest S&P 500 laggards were Newmont Mining (NEM), the largest domestic gold miner, down 22.7%. It was followed by Edwards Lifesciences (EW), down 22.4%, and Cognizant Technology Solutions (CTSH), down 15.4%.
The Nasdaq-100 Index ($NDX) gained 2.4% for the month and is up 8.5% for the year. Leading the 60 winners were Vertex Pharmaceuticals (VRTX), up 39.8%; Akamai; and Regeneron Pharmaceuticals (REGN), up 22%.
The laggards were Cognizant Technology Solutions; F5 Networks (FFIV), down 14.2%; and Citrix Systems (CTRX), down 13.9%.
Interest rates ended the month lower. The 10-year Treasury yield, the primary determinant of mortgage rates, closed at 1.675%, up slightly from Monday but down from 1.85% on March 28. The 2012 close was 1.76%.
MSN Money on Twitter and Facebook
A week ago Friday, on one of Mirhaydari's blogs, I predicted the Euro would touch 1.315 within a week. I was off by a couple of days, but that trade has still worked out nicely.
What Obama could have done, canned Uncle Ben and let the Bush Tax Cuts expire. Other than that, the 800 pound Gorillia which is the 500 trillion dollar plus Derivatives Markets had already left the Barn. We are still paying a Huge Price for that. Witness the ongoing Massive Global Money Printing. Witness the failing economies across the Globe.
V_L......"Divestification" on the Telcom AT&T, but your premise is pretty accurate..
The 7 other Enterprises, weren't piker business though...
And now today, many have re-mergered to become basically what they were..
They were a "regulated monopoly", before; Today I'm not really sure they are quite the same.
AND The Consumer gained "nothing" in the long run..
Maybe I mis-read your first word unless you changed it..??
The Obama economy is no more proof of an improving economy than the Bush Economy was. If anything, the Bush recovery was far more bogus. Why? Recall that the Bush Economy was built around the over 500 trillion dollar derivatives Markets. Obama and Uncle Ben have to still deal with that SCAM. Problem is Uncle Ben promoted that Scam during the Bush years. Uncle Ben is attempting to continually protect those same Scam Artist with a few trillion, now. Eventually gravity will take over and all global currency will collapse.
It's unfortunately a self-fulfilling prophecy of biblical proportions.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
New study finds members of this global elite are stashing an average $600 million each in cash -- 10 times more than a year ago.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.