Stocks advanced for a second straight day as better-than-anticipated retail sales and housing data continued to point toward economic strength. European Central Bank's assertion that it would not abandon its plan to buy government bonds helped contain eurozone worries, helping stocks extend their gains.
Financials led on the upside, after Goldman Sachs GS raised its rating on the sector to “overweight,” saying an improving economy is helping U.S. banks' operations. The upgrade sent Dow components Bank of America BAC and JP Morgan JPM up 3.5% and 1.16%, respectively.
The Dow average, after its 250-point surge Wednesday, added another 107 points to its tally, marking its best two-day run since early July. The tech-focused Nasdaq Composite index gained nearly 30 points, or 1.2%, to 2579.35. The widely tacked S&P 500 index 15.46 points, or 1.3%, to 1221.53. On the New York Stock Exchange, more than two stocks rose in price for everyone that advanced. The CBOE Vix, market's measure of volatility, retreated 9.2% to 19.39.
A disappointing jobs report has sent this morning's stock futures lower.
Shares in Kroger KR plunged 9.4% after the company trimmed its yearly sales and earnings outlook and cut its planned capital expenditure by $100 million. PepsiCo PEP, which said it plans to acquire Wimm-Bill-Dann Foods WBD in a $3.8 billion deal, saw its shares dropping 0.7%. Alcoa AA gained 3.8% as material shares rallied on strengthening global manufacturing activity.
Retailer Abercrombie & Fitch ANF, which posted a 22% jump in comparable store sales, saw its shares surging 11.1%. Costco Wholesale Corp. COST, Target Corp. TGT, and Limited Brands LTD all saw their shares rising after reporting estimate-beating sales numbers.
The demand for safe haven assets such as US Treasurys waned, sending prices lower. The yields rose, with the yield on the benchmark 10-year note jumping to 3.00% from 2.96% late Wednesday. This is the first time since July that the yield touched the 3% mark. Brightening economic prospects sent crude prices up $1.25 to $88, a two-year high. Gold added $1 to end the day at $1,387.30.
A sharp jump in pending home sales sent shares in home building and home improvement retailing companies higher. Shares in Lowes LOW gained nearly 5% to $24.92. Pulte Homes PHM added 3.2% to $6.75 and Lennar LEN surged 7.2% to $16.88. KB Home KBH gained 4.5% and DR Horton DHI closed up 3.7%.
All ten S&P500 industry sectors closed the session in the green for a second consecutive day. Financials (+2.4%) topped the sector list of gainers, followed by industrials up 1.6%, basic materials up 1.5%, oil and gas up 1.4%, tech up 1.2%, telecommunications up 1.1%, consumer services up 0.8%, health care up 0.7%, consumer goods up 0.6% and utilities up 0.4%.
ABERCROMBIE (ANF): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis Report
COSTCO WHOLE CP (COST): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
KROGER CO (KR): Free Stock Analysis Report
LENNAR CORP -A (LEN): Free Stock Analysis Report
LOWES COS (LOW): Free Stock Analysis Report
LIMITED INC (LTD): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
PULTE GROUP ONC (PHM): Free Stock Analysis Report
TARGET CORP (TGT): Free Stock Analysis Report
WIMM-BILL-DANN (WBD): Free Stock Analysis Report
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