Day Traders Diary


The S&P 500 settled higher by 0.7% after seeing steady buying over the course of the session.

Growth-oriented groups paced today's advance even after the International Monetary Fund cut its 2013 global growth outlook to 3.1% from 3.3%. The materials sector gained 1.6% as steelmakers and gold miners outperformed. The Market Vectors Steel ETF (SLX 38.51, +0.56) settled higher by 1.5% while miners displayed strength as gold futures added 0.9% to $1246.30 per ounce.

Also of note, Dow component Alcoa (AA 7.91, -0.01) shed 0.1% after its slim earnings beat was overshadowed by a 1.9% year-over-year decline in revenue. In addition, the aluminum producer reaffirmed its global aluminum demand growth forecast at 7.0%

The industrial sector also finished among the leaders after FedEx (FDX 103.15, +4.32) rallied 4.4% amid speculation activist investor Bill Ackman may be building a position in the company. FedEx provided significant support to the Dow Jones Transportation Average, which jumped 2.3% as all 20 components posted gains.

Another commodity-related sector, energy, rose 1.1% as crude oil climbed 0.8% to $104.00 per barrel.

Stocks overcame a morning stumble after reports indicated the Federal Deposit Insurance Committee has proposed a dual standard for bank leverage ratios. Under this proposal, large banks would have to satisfy a 6.0% capital requirement while smaller banks would be subject to a ratio of 5.0%. The financial sector briefly dipped into the red before ending with a gain of 0.8%.

Similar to yesterday, the tech sector trailed behind the broader market. Dow component IBM (IBM 191.30, -3.68) pressured the group after Goldman Sachs downgraded the stock to 'Neutral' from 'Buy.'

On the downside, the telecom sector shed 0.2%. Meanwhile, other countercyclical groups finished mixed. Consumer staples outperformed (+0.8); utilities (+0.7%) finished in-line with the S&P; and health care (+0.3%) was pressured by disappointing preliminary results from Intuitive Surgical (ISRG 419.30, -80.78).

Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET, May wholesale inventories will cross the wires at 10:00 ET, and the Federal Open Market Committee will release the minutes from its June 19 policy meeting at 14:00 ET.

The U.S. Treasury will auction $21 billion in 10-yr notes.
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