Good news from The Conference Board sent stocks climbing on Thursday, as the Leading Economic Index rose to 99.8.
Investors enthusiastically sent stocks higher after The Conference Board’s Leading Economic Index (LEI) rose to 99.8 in February. January’s initial reading of 99.5 was downwardly-revised to 99.3. Despite obsessive dwelling by the news media, which alternated between the missing Malaysian airliner and Janet Yellen’s FOMC press conference, investors managed to remain focused on current economic developments, such as the LEI and the Philly Fed’s Business Outlook Survey, which skyrocketed from February’s negative 6.3 to positive 9.0 in March.
The Dow Jones Industrial Average (NYSEARCA:DIA) picked up 108 points to finish Thursday’s trading session at 16,331 for a 0.67 percent advance. The S&P 500 (NYSEARCA:SPY) climbed 0.60 percent to 1,872.
The Nasdaq 100 (NASDAQ:QQQ) advanced 0.31 percent to finish at 3,693. The Russell 2000 (NYSEARCA:IWM) rose 0.28 percent to 1,198.
In other major markets, oil (NYSEARCA:USO) declined 0.36 percent to close at $35.38.
On London’s ICE Futures Europe Exchange, May futures for Brent crude oil advanced 38 cents (0.36 percent) to $106.23/bbl. (NYSEARCA:BNO).
April gold futures declined 80 cents (0.06 percent) to $1,329.70 per ounce (NYSEARCA:GLD).
The transportation sector got stuck in traffic during Thursday’s trading session, as the Dow Jones Transportation Average dipped 0.10 percent to 7,542 (NYSEARCA:IYT).
In Japan, anxiety about the American Federal Reserve’s tightening of monetary policy and its impact on the global economy sent stock prices falling. The yen strengthened to 102.24 per dollar during the last hour of Thursday’s trading session in Tokyo, after weakening to 102.50 earlier in the session. A stronger yen causes Japanese exports to be less competitively priced in foreign markets (NYSEARCA:FXY). The Nikkei 225 Stock Average sank 1.65 percent to 14,224 (NYSEARCA:EWJ).
A likely move by the Federal Reserve to raise the federal funds rate earlier than expected was just the latest bad news to hit Chinese stock markets. The mood in Hong Kong has been generally bearish since Alibaba’s announcement that it would take its IPO to New York. So far during 2014, the Hang Seng Index has fallen 9.11 percent. In mainland China, stocks took a beating after Goldman Sachs lowered its forecast for the nation’s economic growth. The Shanghai Composite Index fell 1.40 percent to 1,993 (NYSEARCA:FXI). Hong Kong’s Hang Seng Index sank 1.79 percent to 21,182 (NYSEARCA:EWH).
In Europe, stocks finished Thursday’s session in positive territory, despite widespread reporting that they declined because of Janet Yellen’s press conference. The reports were likely written before the European markets closed. Although the Euro STOXX 50 Index was in the red through most of Thursday’s trading session, a surge during the final minutes allowed the STOXX 50 to end the day with a 0.41 percent advance to 3,088 – crossing back above its 50-day moving average of 3,087. Its Relative Strength Index rose from 48.71 to 50.81 (NYSEARCA:FEZ).
Technical indicators revealed that the S&P 500 climbed further above its 50-day moving average of 1,831 on Thursday, after a 0.60 percent advance to 1,872. Its Relative Strength Index (RSI) rose from 54.62 to 58.31. The MACD is heading back toward the signal line, suggesting that the S&P could continue its advance during the immediate future.
On Thursday, all sectors were in positive territory, although the healthcare sector remained unchanged.
Consumer Discretionary (NYSEARCA:XLY): +0.26%
Technology: (NYSEARCA:XLK): +0.77%
Industrials (NYSEARCA:XLI): +0.29%
Materials: (NYSEARCA:XLB): +1.34%
Energy (NYSEARCA:XLE): +0.39%
Financials: (NYSEARCA:XLF): +1.58%
Utilities (NYSEARCA:XLU): +0.22%
Health Care: (NYSEARCA:XLV): unchanged
Consumer Staples (NYSEARCA:XLP): +0.35%
Bottom line: Upbeat reports on the Leading Economic Index and the Philadelphia Fed’s Business Outlook Survey sent stocks climbing on Thursday.
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