13:15 ET Dow +56.14 at 14988.55, Nasdaq +10.27 at 3443.67, S&P +1.33 at 1615.41 :[BRIEFING.COM] The S&P 500 settled with a slim gain of 0.1% after shaking off its opening losses.
Stocks began the shortened session on a lower note as global events injected a degree of uncertainty into the market.
In Egypt, President Mohammed Morsi was removed from his post through a military coup after he failed to answer the demands of protesting crowds within the timeframe specified by the country's armed forces.
Elsewhere, Portugal returned to headlines after two key government officials (finance minister and foreign minister) submitted their resignations. In addition, reports indicate two more ministers (agriculture and social security) are set to follow suit. Prime Minister Pedro Passos Coelho is scheduled to meet with the country's president tomorrow to discuss the ongoing situation. As a result, the country's benchmark 10-yr yield spiked 85 basis points to 7.31%. In addition Portugal's PSI index fell 5.3%. The concerns regarding the country's future spilled over to other peripheral economies. Italy's 10-yr yield climbed 11 basis points at 4.51% while Spain's benchmark 10-yr yield jumped 14 basis points to 4.70%.
Equities fought back from their opening losses with the technology space pacing the advance. The sector ended with a gain of 0.6% as large components like Apple (AAPL 420.80, +2.31) and Oracle (ORCL 30.70, +0.60) provided notable support. Chipmakers also displayed strength as the PHLX Semiconductor Index added 0.3%.
The discretionary sector also outperformed the broader market. Homebuilders displayed broad strength and the iShares Dow Jones US Home Construction ETF (ITB 22.42, +0.16) added 0.7%.
On the downside, the renewed sovereign debt concerns pressured the financial sector, which ended lower by 0.4% after spending the entire session in the red.
Although equities ended in positive territory, market breadth remained negative throughout the day as declining issues on the New York Stock Exchange outpaced advancers by a 1.6:1 ratio.
Today's economic data was plentiful.
The initial claims level decreased from an upwardly revised 348,000 (from 346,000) for the week ending June 15 to 343,000 for the week ending June 29. The Briefing.com consensus pegged the initial claims level at 348,000.
For the past several weeks, the initial claims level has moved in a slight sawtooth pattern, but overall, trends have been relatively flat. Labor conditions have not materially changed over this time.
June ADP Employment Change came in at 188,000 while the Briefing.com consensus expected a reading of 150,000. In addition, June Challenger Job Cuts rose 4.8% year-over-year to follow the prior month's decline of 41.2%.
The June ISM Services Index was reported at 52.2, below the 54.0 forecast by the Briefing.com consensus, and down from the May reading of 53.7.
Separately, the U.S. trade deficit widened to $45.0 billion in May from an upwardly revised $40.1 billion (from $40.3 billion) in April. That was the largest deficit since November 2012. The Briefing.com consensus expected the trade deficit to increase to $40.8 billion.
The goods deficit rose to $63.4 billion in May from $58.4 billion while the services surplus increased to $18.4 billion from $18.3 billion.
May exports fell by $0.5 billion from $187.6 billion in April to $187.0 billion.
Bond and equity markets will be closed tomorrow in observance of Independence Day. On Friday, June nonfarm payrolls, nonfarm private payrolls, average workweek, hourly earnings, and the unemployment rate will all be reported at 8:30 ET. ..NYSE Adv/Dec 1161/1806. ..NASDAQ Adv/Dec 1350/1027. |
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