PortfolioCrafter - Market Commentary 6/4/06
June 4th, 2007 / 6:02 pm / by portfoliocrafter
Stocks managed to close higher after investors took news of another overnight stumble in the Shanghai stock market in stride, and a sustained stream of deal news offset rising bond yields and crude prices. The modest gains allowed the S&P 500 to set its fourth record high close in a row and pushed the Dow Jones industrials to another high.
Today, the Dow Jones industrial average closed up 8.21 or 0.06% to 13,676.32 the broader S&P 500 index closed up 2.84 or 0.18% to 1,539.18, and the Nasdaq composite closed up 4.37 or 0.17% to 2,618.29, a new six-year high.
Market breadth was mixed. On the New York Stock Exchange, winners edged out losers by 19 to 13 on volume of 1.347 billion shares. On the Nasdaq, advancers topped decliners by 15 to 14 on volume of 1.898 billion shares.
Initially investors struggled against the sliding international markets, a weaker-than-expected rise in April factory orders, and higher oil prices. The 8.3% slump in the Shanghai Stock market, did send some initial jitters. However, the weakness in U.S. markets was minimal. In addition to the China news, stock investors were keeping an eye on rising oil prices, which jumped amid concerns about a cyclone approaching the Arabian peninsula.
Shares of Wal-Mart Stores closed up $1.73 or 3% to $51.20, after J.P. Morgan, Morgan Stanley and others raised their ratings on the world’s largest retailer. On Friday, its CFO said the company will slow the pace of growth of its super-center stores next year and that it will buy back $15 billion worth of its stock.
Shares of Accredited Home Lenders Holding closed up 10% after the a struggling sub-prime lender agreed to be bought out by private equity firm Lone Star for $400 million. Its stock closed up $1.50 to $15.26, on the news.
Stock of Dominion Resources closed up $0.19 to $87.83, after agreeing to sell its gas assets for $6.05 billion to a pair of companies. Loews Corp. has agreed to buy natural gas exploration and production assets in three states from Dominion Resources Inc. for $4.025 billion in cash to diversify its revenue stream. Additionally, several exploration operations are being sold to XTO Energy Inc for $2.5 billion.
U.S. light crude oil for July delivery rose $1.13 to $66.21 a barrel on the New York Mercantile Exchange.
All the best,
Manuel Jesus-Backus
The Portfolio Crafter
