Late Surge Pushes Stocks Higher Amid Mixed Economic Data

Strategic Insights -

As the Q1 earnings season got off to a slow start, a late surge pushed stocks higher at the close, ending a listless session. The mixed economic data released today had little impact on investors, who were likely influenced by Alcoa's weak outlook and Bed, Bath and Beyond's disappointing results. However, the markets seemed to recover by mid-day, with nine of the 10 industry sectors in the S&P 500 finishing higher. Health care and tech stocks were standout performers, with biotech companies, such as Rosetta Genomics, continuing their recent rise after announcing a deal to acquire PersonalizeDx.

Key Takeaways:

  • The Dow Jones Industrial Average rose 56.22 points, or 0.31%, to 17,958.73.
  • The S&P 500 gained 9.28 points, or 0.45%, to 2,091.18.
  • The Nasdaq Composite Index surged 23.74 points, or 0.48%, to 4,974.56.
  • Nine of the 10 industry sectors in the S&P 500 finished higher.
  • Health care and tech stocks performed relatively well, with biotech companies continuing their rise after the announcement of the Rosetta Genomics deal.
  • The deal, which saw Rosetta Genomics acquire PersonalizeDx for around $3.5 million in cash and stock, is expected to add significantly to Rosetta Genomics' finances, with pro forma 2015 revenue seen rising to between $10 million to $12 million.
  • Chipmakers, such as Altera Corp., also rose, with shares climbing despite reports that talks with Intel Corp. about a potential buyout had fallen apart.
  • Energy stocks rose after crude oil prices edged higher, with the May contract settling 37 cents higher at $50.79 per barrel.

Statistics:

  • 56.22: Points gained by the Dow Jones Industrial Average
  • 0.31: Percentage gain by the Dow Jones Industrial Average
  • 9.28: Points gained by the S&P 500
  • 0.45: Percentage gain by the S&P 500
  • 23.74: Points gained by the Nasdaq Composite Index
  • 0.48: Percentage gain by the Nasdaq Composite Index
  • $3.5 million: Price of Rosetta Genomics' acquisition of PersonalizeDx
  • $10 million - $12 million: Pro forma 2015 revenue expected by Rosetta Genomics after the acquisition
  • $50.79: Per-barrel price of the May crude oil contract
  • $2.53: Per 1 million BTU price of May natural gas futures

Sources:

  • MidnightTrader via COMTEX
  • Bloomberg News
  • Rosetta Genomics (ROSG)
  • Altera Corp. (ALTR)
  • Intel Corp. (INTC)
  • Comtex SmarTrend Alert
  • Comtex News Network, Inc.