Stocks closed Tuesday's session on a high note, fueled by renewed optimism in the global economy and a round of strong corporate news. The market rally lifted the Dow to a new record high of 14,286.37, pushing through levels not seen since 2007. The S&P 500 added 15 points, trading at its highest level in five years and flirting with a record closing high of 1,543.47 set in October 2007. At 3,224.13, the Nasdaq is trading at its highest level since November 2000, but is well below its all-time highs set in March that year. Favorable manufacturing and housing data also lent support to the market run-up.
The advance also was supported by strength in tech stocks as Qualcomm Inc. (QCOM), which raised its dividend by 40% and kicked-off a $5 billion share-buyback program. Apple Inc. (AAPL) shares bounced from Monday's new 52-week low, adding 3% by market close, pulled along by the broader market. MicroStrategy Inc. (MSTR) closed up 11% following an upgrade by FBR Capital to Outperform from Market Perform.
In other corporate news, JC Penney's (JCP) shares plunged more than 10% after Vornado Realty Trust, one of the JCP's biggest stakeholders, reportedly dumped 40% of its stake in the retailer.
The day's Institute for Supply Management's (ISM) monthly release of the purchasing manager's index came in at 56 for February, up from 55.2 in January, with a reading over 50 indicating more companies are expanding rather than contracting. Economists polled by MarketWatch had expected the index to remain unchanged. Thirteen of the 18 industries tracked reported growth last month, up from eight in the prior month, according to MarketWatch.
Home prices also rose at the beginning of the year, another sign of the ongoing recovery in the housing market, data from CoreLogic showed on Tuesday, Reuters reported. CoreLogic's home price index rose 0.7% in January from the previous month, and was up 9.7% compared to last year. It was the biggest yearly increase since April 2006 and the 11th month in a row that prices have increased, the report stated.
Commodities were mostly higher, with crude oil for April delivery closing $0.06 lower at $90.88 per barrel. April natural gas was down $0.015 to $3.51 per 1 million BTU. April gold was up $0.90 to $1,575.80 per ounce while May silver added $0.96 to finish at $28.70 per ounce. May copper was up $0.008, settling at $3.52 per pound.
Here's Where The U.S. Markets Stood At Day's End
- Dow Jones Industrial Average up 125.95 (+0.89%) to 14,253.77
- S&P 500 up 14.59 (+0.96%) to 1,539.79
- Nasdaq Composite Index up 42.10 (+1.32%) to 3,224.13
- Hang Seng Index +0.15%
- Shanghai China Composite Index +2.31%
- FTSE 100 Index up 1.36%
- (+) GALT, Received the go signal from the US Food and Drug Administration (FDA) to proceed with a Phase 1 clinical trial of GR-MD-02 for treatment of non-alcoholic steatohepatitis (NASH, or fatty liver disease) with advanced fibrosis.
- (+) PKOH, Reported net income of $7.7 million, or $0.63 per diluted share in Q4. This compared to a net income of $18.9 million, or $1.58 per diluted share, for Q411. If comparable, analysts had anticipated $0.50 per share in earnings for Q4. Net sales were $275.7 million, an increase of $41.1 million, or 18%, from net sales of $234.6 million a year ago. Analysts had expected $276.8 million.
- (+) SNTS, Late Monday reported that Q4 total revenues were $70.2 million, 65% higher than the $42.6 million in the year earlier period, and above the $62.0 million analysts had expected. Net income was $5.5 million, or $0.08 diluted earnings per share, a significant increase compared with the $1.9 million, or $0.03 diluted EPS a year ago. If comparable, analysts had anticipated $0.01 per share in earnings for Q4.
- (+) CREE, Raised its FQ3 guidance, now expecting revenues of between $335 million to $350 million, with EPS of between $0.31 and $0.36 per share. The EPS is on par with analyst estimates of $0.36 for that quarter. Revenues are still short of the $359.9 million the Street expects.
- (-) JCP, Reported a 10 million share block in the troubled retailer was being shopped by Deutsche Bank's trading desk. The asking price of the block owned by Vornado Realty Trust was for a range between $16.40 and $16.60, one source confirmed, valuing the stake between $164 million and $166 million. the report added.
- (-) MM, Analysts at Needham & Co. began coverage of the stock with a "hold" rating, saying that although the company will continue to experience strong growth, emerging competition is likely to limit the upside to current estimates, according to various reports.
- (-) UBNT, Reported that its airFiber point-to-point wireless technology is being used in customer deployments on six continents and scaling far beyond the perceived limitations of the 24 GHz spectrum.
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