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Petroleum industry

Stocks Rally Amid Disappointing Data and Middle East Tensions

Strategic Insights

— 2 min read

Investors shrugged off disappointing data showing a decline in orders for durable goods and a continued rise in oil, driven higher by strife in Libya and other Middle East countries. The rally was fueled by a surge in energy and commodity markets, with oil prices reaching new highs. Despite the gloomy economic data, the stock market showed resilience, with major indices rising in mid-session trading.

Key Takeaways:

  • The Dow Jones Industrial Average rose 0.5% to 12,135.82, while the S&P 500 gained 0.4% to 1,324.59.
  • The Nasdaq Composite Index climbed 0.7% to 2,754.65, led by Apple's 5% gain.
  • Orders for U.S. durable goods in February posted the biggest drop in four months, falling 0.9% largely, and 0.6% excluding transportation.
  • First-time claims for unemployment benefits fell by 5,000 last week, with the four-week moving average decreasing by 1,500 to 385,250, the lowest level since July 2008.
  • Shares of Amgen (AMGN) rose 3.5% after investor reports speculated the biotech company may introduce its first dividend next month.
  • Wells Fargo (WFC) Chief Executive Officer John Stumpf said home-equity losses remain his top concern due to lingering high unemployment in the United States.
  • Apple (AAPL) is expected to continue posting sales growth of over 50% in the next two years, driven by the rising demand for devices such as the iPad.
  • IMAX Corp. (IMAX) is up after announcing a 75-theatre joint revenue sharing agreement with Wanda Cinema Line Corp.
  • Boston Scientific (BSX) received FDA approval for the Clik Anchor for its Precision Plus SCS System.

Statistics:

  • The number of new claims filed for unemployment benefits in the week ended March 19 was 382,000, down 5,000 from the previous week.
  • The four-week moving average of new claims fell to 385,250, the lowest level since July 2008.
  • Oil prices reached $106.13 a barrel, up 0.35%.
  • Gold prices rose 0.57% to $1,447 an ounce.
  • The United States Oil Fund (USO) gained 0.6% to $42.36, while the United States Natural Gas fund (UNG) declined 1.34% to $11.41.
  • The SPDR Gold Trust (GLD) rose 0.51% to $141.06, and the Market Vectors Gold Miners (GDX) increased 1.63% to $61.26.

Sources:

  • COMTEX via MidnightTrader
  • MarketWatch
  • Bloomberg
  • Thomson Reuters
  • Deutsche Bank
  • Sanford Bernstein & Co.
  • Forrester Research Inc.
  • Wanda Cinema Line Corp.
  • U.S. Food and Drug Administration (FDA)
  • FBR Capital
  • Reuters
  • Comtex News Network, Inc.

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