Sign in Subscribe
Banking industry

Mid-Day Market Update: Stocks Rally Amid Government Data and Corporate News

Strategic Insights

— 2 min read

Stocks are rallying at mid-day, propelled by the release of government-compiled retail sales figures that declined less than economists had expected. The market also gained momentum from deal activity and the belief by some analysts that the market is oversold. US retail sales fell 0.2% last month to $387.1 billion, topping economists' call for a 0.7% decline in May, according to MarketWatch. The data showed the first decline after 11 straight months of gains, but without a 2.9% drop in motor vehicle sales, retail sales increased 0.3%.

Key Takeaways:

  • Stocks are up at mid-day, with the NYSE up 1.45%, the DJIA up 1.12%, and the S&P 500 up 1.33%.
  • The market is being driven by deal activity, government data, and corporate news, including the hiring of Ron Johnson as CEO of JC Penny.
  • US retail sales fell 0.2% in May, the first decline after 11 straight months of gains, but still topped economists' call for a 0.7% decline.
  • The data showed a 2.9% drop in motor vehicle sales, but without this, retail sales increased 0.3%.
  • Google Inc. plans to invest up to $280 million to help homeowners supplement energy costs with solar panels fitted to their homes.
  • McGraw-Hill firms after hiring Morgan Stanley & Co. LLC to pursue the divestiture of its Broadcasting Group.
  • Pacira Pharmaceuticals is down by double digits after the FDA extended the Prescription Drug User Fee Act goal date for its review of the new drug application for EXPAREL by three months.
  • Ford Motor is higher after declining 1.6% Monday, with the company ordered to pay damages of $2 billion to thousands of its dealers.
  • Bank of America shares are down after a Department of Housing and Urban Development regional inspector general accused the bank of "significantly hindering" a federal review of its foreclosure practices.

Statistics:

  • US retail sales fell 0.2% in May to $387.1 billion, the first decline after 11 straight months of gains.
  • The data showed a 2.9% drop in motor vehicle sales, but without this, retail sales increased 0.3%.
  • The US Labor Department reported wholesale prices rose 0.2% last month, the slowest clip in the last 10 months.
  • Google Inc. plans to invest up to $280 million to help homeowners supplement energy costs with solar panels fitted to their homes.
  • Commodities are higher, with August gold contracts up 0.06% to $1,517 an ounce and July crude oil contracts up 0.85% to $98.13 a barrel.

Sources:

  • MidnightTrader via COMTEX
  • MarketWatch
  • Wall Street Journal
  • AP
  • CNBC
  • SmarTrend Alert
  • Comtex News Network, Inc.

Read more