Stocks got a bounce today after sustained selling pressure in the first half of May caused a moderate pullback on Wall Street. Shares of market leader Apple (AAPL) led the way after analysts made bullish projections about iPhone usage. That helped push up the tech-heavy NASDAQ by 68 points, or 2.5%, outperforming the Dow Jones Industrial Average’s strong 135 point (1.1%) gain. The strength was broad-based, with the number of advancing issues outpacing decliners by a wide margin on the New York Stock Exchange Composite.
Aside from technology, sectors showing special strength today included Basic Materials, where shares of Dow Chemical (DOW) and Newmont Mining (NEM) did well, and Industrials, where Boeing (BA - Free Boeing Stock Report) and Honeywell (HON) outperformed. Consumer (Cyclical) stocks also shined, including those of retailer Coach (COH). Oil shares made a comeback, as well, with the price of a barrel of crude oil rising over $1 on the NYMEX. That benefited oilfield services stocks, such as Schlumberger (SLB) and Nabors Industries (NBR).
The day was not without some notable stumbles, though. JPMorgan Chase (JPM - Free JPMorgan Chase Stock Report), still reeling from sizable trading losses, suspended its stock-repurchase plan. Its shares fell on the news. Facebook (FB) stock also gave up ground after its much ballyhooed initial public offering on Friday failed to generate the type of enthusiasm seen in past high-profile IPOs.
As stocks rallied, the bond market gave up part of its recent gains, with the yield on the 10-year Treasury note rising to 1.74%, from 1.71%. (Bond prices move in the opposite direction of yields.)
$spy The US recovery looks to be on firmer ground, despite the mounting crisis in the euro-zone. We anticipate GDP growth of 2.0% this year and 2.5% in 2013.