The Dow Jones Industrial Average gained 128.21 points, or 1.03%. The S&P 500 index jumped 14.10 points, or 1.06%, while the NASDAQ rallied 38.44 points, or 1.37%. For the month, the blue chip index fell 1.9%, the S&P 500 Index lost 1.35% and the NASDAQ dropped 1.33%.
For the month, the blue chip index fell 1.9%, the S&P 500 Index lost 1.35% and the NASDAQ dropped 1.33%.
The market started with significant gains, as Wall Street joined a global advance amid better than expected manufacturing data in Japan and after reports hat a new bailout plan is in the works for Greece boosted the euro and European markets.
In Asia, stocks finished with solid gains, with the Nikkei climbing 2%, on a rebound in Industrial Output and encouraging government expectations for continued increases in May and June. Japanese stocks also shook off news that Moody's placed the country on review for a possible downgrade.
European closed higher with the DAX outperforming, as the EU was racing to draft a fresh bailout package for debt-stricken Greece to release vital loans next month and avert the risk of the country defaulting. Germany, which along with some other countries had resisted extra funding, is considering concessions in efforts to support the country by dropping its push for an early rescheduling of Greek bonds. CPI data added to the euro gains, as it came lower than expected.
On economic news, reports continue to show underlying weakness in the U.S. economy. The Conference Board's May reading on consumer confidence fell to a six-month low at 60.8 from 66.0 in April. Also, the Chicago Purchasing Managers Index fell more than expected to 56.6 in May from 67.6 in April. And prices for U.S. single-family homes sank to a new low for the year, providing clearer evidence of a double-dip in housing.
The weak data took stocks from their opening highs but they were able to rally into the close. Energy stocks were among the early leaders, but struggled over the course of the session before rallying into the close. As a whole, the sector gained 1.0% to finish on pace with the broader market. Massey Energy (NYSE:MEE), the coal producer, was one of the best performing stocks in the space all session long, jumping 3.09% to $66 as the transaction to be acquired by Alpha Natural Resources (NYSE:ANR) is expected to close tomorrow. Alpha Natural Resources will be able to replace Massey on the S&P 500 Index after the transaction closes.
Weakness in the dollar, underpinned by reports of a new bailout plan for Greece, supported the energy complex. Crude oil surged for 2.1% to close at $102.70 per barrel. Also helping crude oil higher was news that the Keystone pipeline, which carries crude oil from Alberta, Canada to Cushing, Oklahoma, was shut down due to a maintenance issue. Natural gas finished higher by 2.6% to $4.65 per MMBtu, supported by warm weather across the country and record heat in the East.
Chevron (NYSE:CVX), the second largest U.S. energy producer, finished the session with a 1.65% gain at $104.91 and posted the third largest percentage gain in the Dow Jones Industrial Average. Chevron finished with a 4.1% loss for the month of May. And Valero Energy (NYSE:VLO), the independent refiner, jumped 2.15% to $27.50 as crude oil surged and gasoline futures climbed 0.55%. Valero trimmed its monthly loss to 2.83%.
Despite sizeable weakness in the greenback, gold settled lower by 0.1% to $1535.60 per ounce, as demand for safe haven eased on hopes of a resolution of the bailout for Greece. Silver ended up 1.1% to $38.29 per ounce. It sold off, like gold, heading into afternoon trade. The gains in silver were able to continue to make some of the ground lost after silver plunged earlier in the month as the CME raised margin requirements.
iShares Silver Trust ETF (NYSE:SLV), the fund that corresponds to the price of silver owned by the Trust less expenses and liabilities, jumped 1.54% to $37.60 as silver prices closed above $38 an ounce. The trust has a year to date gain of 24.59%, trimming its monthly loss to 19.80%. The Silver Trust ETF has calculated support at $$31.97 and resistance at $37.90.
Financials also saw a strong start, and finished on par with the S&P 500. Goldman Sachs (NYSE:GS), the Wall Street investment bank, was a notable outperformer in the sector. Goldman jumped 1.49% to $140.73 and traded as high as $142.30 after it was upgraded to a Buy at JPMorgan.
Bank of America (NYSE:BAC), the U.S. largest lender, closed off its highs on concern over the health of the housing sector, and how mortgages and the struggles in the housing market will continue to weigh on the lender’s earnings potential. Bank of America gained 0.51% to $11.75, after trading as high as $11.92, just shy of its 20day moving average at $11.95 on the back of a financial sector moving higher on Greek bailout hopes. Bank of America was trimmed its monthly loss to 4.32%.
Shares of American International Group (NYSE:AIG), the insurer, continued to under perform, falling 1.32% to $28.50, following last week’s 300 million secondary common stock offering, in which the company sold 100 million shares and the U.S. government sold 200 million shares at $29 per share. With the latest share sale, the U.S. Treasury continues to hold a 77% stake in the company.
Industrials also saw increased activity, with General Dynamics (NYSE:GD), the diversified defense company and maker of Gulfstream business jet, outperforming and climbing to the top of the S&P 500 Index, as shares jumped 4.15% to $74.22 following an upgrade to a Buy from Neutral at SunTrust and as the company confirmed it has received from the U.S. Navy a $744 million modification to its Mobile Landing Platform (MLP) contract to fully fund construction of the first two ships of the new ship class.
Caterpillar (NYSE:CAT), the world’s largest earthmoving equipment maker, gained 1.15% to $105.80, on the back of the move in the industrial sector and the weak greenback. Caterpillar was able to trim slightly its monthly loss to 8.3%, which made it the worst Dow component for the month of May.
Also in the sector, General Electric (NYSE:GE), the diversified conglomerate maker of medical devices power turbines and nuclear reactors, gained 1.03% to $19.64, in line with the broad market and trimming its monthly loss to 3.96% on news over the weekend that Germany will discontinue to use nuclear power by 2022. Participants saw this development as one that can hurt GE’s nuclear business but will help boost GE’s wind and efficient power turbines businesses.
The news from Germany helped solar stocks, with the Claymore/MAC Global Solar Energy Index ETF (NYSE:TAN) jumping 5.79% to $7.49 as participants view the German announcement as positive for the solar industry. First Solar (NASDAQ:FSLR) gained 2.37% to $124.25, trimming its year to date loss to 4.53%. First Solar has calculated support at $114.40 and resistance at $131.88. The stock is trading well off its 52-week high of $175.45 posted last February.
Also in the tech sector, and helping lift the blue chip index as well as the NASDAQ. Cisco (NASDAQ:CSCO), the world’s largest networking equipment maker, jumped 2.07% to $16.80 trimming its monthly decline to 4.11%. Cisco said it has collaborated with Sap (NYSE:SAP), the provider of business management software, in order to deliver enhanced business intelligence solutions for enterprises. And Intel (NASDQ:INTC), the world’s largest chipmaker, climbed 1.35% to $22.51, posting one of the biggest percentage gains in the blue chip index and boosting the performance of the semiconductors sector, after the chipmaker unveiled a new category of laptops its calling Ultrabooks at a trade show in Taiwan.
Apple (NASDAQ:AAPL), the maker of iPads and iPhones, was also a notable outperformer, with shares surging above its 50day moving average at the $341 level, as shares were rallied 3.09% to $347.83 on reports that Steve Jobs, who has been on a medical leave, will deliver the keynote speech at its World’s Development Conference next week. Apple is planning to unveil its iCloud service, which will allow users to store music and pictures in the cloud, its new Mac OS X computer operating system or Lion and its iOS 5, its next version of its mobile operating system used in products including iPhone and the iPad tablet computer. The presence of Steve Jobs spurred speculation that the service and the operating systems will be revolutionary and will likely help the company consolidate its dominance in the consumer entertainment environment.
And the healthcare sector was benefiting from an uptick in Pfizer shares, which were posting the biggest percentage gain in the blue chip index. Pfizer (NYSE:PFE), the world’s largest pharmaceutical company, rallied 2.43% to $21.45, closing above its calculated resistance level at $21.28 and posting a new 52-week high as it rallied into the close. (source www.tradershuddle.com ) For the latest updates PRESS CTR + D or visit Stock Market news Today
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