News Column

Coutts-US close: S&P hits new record as Fed's Beige Book encourages

June 5, 2014

ENP Newswire - 05 June 2014

Release date- 04062014 - US close: S&P hits new record as Fed's Beige Book encourages.

Beige Book reveals services and manufacturing boost - ADP, productivity, trade data misses forecasts - ECB meeting, non-farm payrolls in focus Dow Jones: 0.09% Nasdaq: 0.41% S&P 500: 0.19% Wall Street recorded reasonable gains on Wednesday as a taste of encouraging news from the Federal Reserve's 'beige book' helped investors wash down the breakfast buffet of mediocre data morsels.

The Fed's anecdotal economics data from around the country showed continuing steady recovery and suggestions of a uptick in growth in the second quarter.

It was noted that incidence of the word 'weather' in the beige book declined by two thirds.

The Fed found consumer spending expanding in almost all districts, with service sector activity growing in most reporting districts.

Bank lending activity was reported as increasing, while manufacturing activity was very promising, reported as expanding 'throughout the nation' and at an 'increasingly strong pace' in several districts.

Analysts at Barclays said: 'Overall, this report is consistent with our expectation of a pick-up in growth in the second quarter after a weather-related contraction in Q1.' The news helped the S&P hit another record high, up 0.2% over the day to 1,928, while the Nasdaq rose 0.4% and the Dow Jones 0.1%.

Slow start as ADP and trade data disappoint Trading had started off on the back foot as stocks tracked a subdued performance across Europe ahead of the pivotal European Central Bank meeting on Thursday which could see policymakers unleash new measures to stave off deflation and stimulate growth.

Investors also had to chew over a smorgasbord of mediocre economic figures and seemed to left room for Thursday's main course of non-farm payrolls.

Private-sector payrolls increased at the slowest pace in four months in May, according to the ADP report, which is often seen as a rough guide to the government's 'official' employment report on Friday.

Just 179,000 private payrolls were added last month, down from the 215,000 gain registered in April and below the 210,000 consensus estimate. The ADP numbers added to the downside risks that official payroll employment rose by around 230,000 in May, argued Paul Dales, Senior US Economist at Capital Economics.

However, he admitted that the ADP survey was not as reliable a predictor of non-farm payrolls as it used to be. Meanwhile, the US trade deficit increased by 6.9% to $47.2bn in April, its highest in two years, according to the Commerce Department.

This was up from a revised $44.2bn in March and surprised analysts looking for a fall to $40.6bn. Gainers Newell Rubbermaid was a high flier after analysts at Morgan Stanley upgraded the kitchenware company to 'overweight' from 'equalweight' in light of expected gains in organic sales and earnings growth. Drug store owner Walgreen was also high after the company beat expectations for same store sales for the fourth month in a row.

Pharmacy sales were up nearly 8% last month compared to the previous year. Apple was still moving higher two days after its keynote presentation from the Worldwide Developers Conference, where it unveiled the latest versions of the company's operating systems with a significant focus on personal healthcare and connectivity between apps. Japanese group Dai-ichi Life Insurance said it would buy Protective Life Corp for around $5.7bn, causing shares in the US-listed life insurer to surge. S&P 500 - Risers Broadcom Corp.

(BRCM) $37.08 +6.43% Applied Materials Inc.

(AMAT) $21.57 +5.12% Newell Rubbermaid Inc.

(NWL) $30.27 +4.42% Walgreen Co.

(WAG) $74.56 +4.19% First Solar Inc.

(FSLR) $65.40 +3.92% Medtronic Inc.

(MDT) $63.22 +3.62% Sears Holdings Corp.

(SHLD) $40.17 +3.26% United States Steel Corp.

(X) $23.46 +3.21% MetLife Inc.

(MET) $54.78 +2.95% CONSOL Energy Inc.

(CNX) $45.76 +2.95% S&P 500 - Fallers E*TRADE Financial Corp.

(ETFC) $19.70 -3.71% Diamond Offshore Drilling Inc.

(DO) $47.73 -3.69% Coach Inc.

(COH) $38.99 -3.39% Bristol-Myers Squibb (BMY) $47.52 -2.98% Allergan Inc.

(AGN) $165.60 -2.36% CME Group Inc.

(CME) $70.26 -2.35% Cliffs Natural Resources Inc.

(CLF) $14.60 -2.28% Sealed Air Corp.

(SEE) $32.24 -2.10% Actavis plc (ACT) $211.00 -1.99% AES Corp.

(AES) $13.97 -1.55% Dow Jones I.A - Risers Travelers Company Inc.

(TRV) $94.67 +1.35% McDonald's Corp.

(MCD) $102.44 +0.98% Unitedhealth Group Inc.

(UNH) $80.51 +0.79% Nike Inc.

(NKE) $76.13 +0.77% E.I.

du Pont de Nemours and Co.

(DD) $69.32 +0.65% Wal-Mart Stores Inc.

(WMT) $77.13 +0.55% Walt Disney Co.

(DIS) $84.24 +0.43% Goldman Sachs Group Inc.

(GS) $162.39 +0.36% Johnson & Johnson (JNJ) $102.68 +0.21% Pfizer Inc.

(PFE) $29.64 +0.17% Dow Jones I.A - Fallers Cisco Systems Inc.

(CSCO) $24.49 -1.17% General Electric Co.

(GE) $26.55 -0.90% United Technologies Corp.

(UTX) $117.14 -0.58% 3M Co.

(MMM) $142.26 -0.44% AT&T Inc.

(T) $35.05 -0.43% Boeing Co.

(BA) $135.33 -0.40% Exxon Mobil Corp.

(XOM) $100.04 -0.35% Verizon Communications Inc.

(VZ) $49.15 -0.28% Coca-Cola Co.

(KO) $40.79 -0.22% Intel Corp.

(INTC) $27.60 -0.22% Nasdaq 100 - Risers Broadcom Corp.

(BRCM) $37.08 +6.43% Applied Materials Inc.

(AMAT) $21.57 +5.12% Vimpelcom Ltd Ads (VIP) $8.66 +3.22% Apple Inc.

(AAPL) $644.82 +2.57% Celgene Corp.

(CELG) $158.82 +2.55% Amgen Inc.

(AMGN) $119.15 +2.32% Monster Beverage Corp (MNST) $68.10 +2.04% Dollar Tree Inc (DLTR) $54.32 +1.88% Whole Foods Market Inc.

(WFM) $38.38 +1.78% Verisk Analytics Inc.

(VRSK) $60.88 +1.60% Nasdaq 100 - Fallers Baidu Inc.

(BIDU) $163.38 -2.31% Liberty Global plc Series A (LBTYA) $44.25 -2.08% Priceline Group Inc (PCLN) $1,245.97 -1.54% Citrix Systems Inc.

(CTXS) $60.55 -1.38% Vodafone Group Plc ADS (VOD) $34.22 -1.33% CA Inc.

(CA) $28.32 -1.29% Cisco Systems Inc.

(CSCO) $24.49 -1.17% F5 Networks Inc.

(FFIV) $108.98 -0.99% NetApp Inc.

(NTAP) $36.26 -0.90% Henry Schein Inc.

(HSIC) $119.42 -0.88% OH

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Source: ENP Newswire

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