Traders-Blog.com

It was another day of gains for the market, as a consequence of an economic report which shows that the economy is growing. Besides, a drop in oil prices increased investors’ confidence. The Dow rose 132.57 points, to close at 10,464.45. Besides, both the Nasdaq, and the S&P posted gains. The Nasdaq rose 26.50 points, to close at 2,030.65, while the S&P closed at 1,185.56, after rising 11.76 points.

The 15th Juridical Circuit in West Palm Beach ordered Morgan Stanley to pay billionaire investor Ronald Perelman $850 million in punitive damages. Besides, on May 16th, jurors awarded Perelman $604.3 million in actual damages. In total, the combined verdict sums to $1.45 billion, which is a bit more than the $1.4 billion in profits reported this quarter by Morgan Stanley. Perelman, who owned 82 percent of Coleman Co., said that Morgan Stanley conspired with Sunbeam Corp. to mislead him about sales in 1997, and 1998 to get him to sell Coleman.

According to the Labor Department, the consumer-price index (CPI) increased 0.5 percent in April, which was driven by a 4.5 percent increase in energy prices. Besides, food prices rose 0.7 percent, but other price increases were moderate. This report reveals that although energy prices are rising, prices of other goods and services had not changed. The CPI is now up 3.5 percent in the past year, compared with 3.1 percent in March. On the other hand, the core CPI is up 2.2 percent in the past year, compared with 2.3 percent in March.

Crude oil for June delivery fell 3.5 percent to $47.25 a barrel in New York. This drop in price might be caused after the Energy Department showed that U.S oil inventories rose more than expected. Besides, total gasoline imports, including finished gasoline, and gasoline blending components, averaged 988,000 barrel per day.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter
Guaranteed monthly gains of 8% or your money back.