US stocks have finally been able to recover from the biggest slump since November as the housing and consumer confidence data is better than expectations. The benchmark gauge of US, the Standard & Poor’s 500 Index increased by 0.3% and is currently at 1492.18. The Dow Jones Industrial Average has shown growth as well. It surged ahead by 0.7%, thereby adding 88.92 points. The gauge is currently at 13872.09. The trading volume in the companies listed under S&P was 9.9% better than the average of last 30 days.
According to the Director of Market and Sector Analysis of Charles Schwab Corp., Brad Sorensen, the economic numbers of US have fared much better than what many perceived those to be. He explained further that the housing data reflects a better performing housing market and it is expected to contribute to the overall growth of the country. On the other hand, the increasing consumer confidence also is positive for the nation’s economy. Brad commented that as there are lots of uncertainties all over the world, these positive data will help things calm down, at least a bit in US.
Around 90% of the total companies listed under S&P showed gains today and consumer discretionary & phone shares were the biggest gainers. Incidentally, S&P has recorded a total surge of 4.7% in 2013.
Home Depot shares saw an increase of 6.2% as it went ahead to $67.85 per share. Hurricane Sandy played a huge role in spurring the house repair demand in the Northern Eastern US market. On the other hand, as home values are rising, more and more people are focusing on renovations these days, rather than buying one new. Macy’s shares also went higher by 2% and each share is currently priced at $39.29. According to the latest statement published by the company, it will earn around $3.95 per share in 2013, higher than the initial estimate of $3.84 each share.
The mobile device flash memory maker, SanDisk Corp. also posted gains of 2.4% and each share is currently priced at $50.49. Doug Freedman, the Equity Analyst of RBC Capital Markets raised the company’s shares to outperform, which is equivalent to buy.
Financial shares had the only decline out of the 10 industry groups under S&P 500. JPMorgan Chase & Co. shares declined by 1.3%. AMC Networks Inc. also went down by 11%.