(May 9 2014) Stocks in the U.S. markets ended slightly on the high side as data showed improvement in the services sector & Apple computers shares went up above $600 for the 1st time since late 2012.
However having its toll on the day's market gains, were tight concerns over an increase of tensions between pro-Russia separatists and Ukraine. The Ukrainian forces were ambushed by separatists forces, leading to heavy fighting on the outskirts of Slaviansk, one of the rebel strongholds, this is coming a day after a police station in Ukrainian city Odessa was attacked.
The Institute for Supply Management's, ISM, services sector index hit the fastest pace in 8 months last month, surpassing expectations. This was the latest report to show upbeat news on the U.S. economy sequel to an unusually harsh winter.
Apple shares, up 1.4 % at $600.96, led both the Nasdaq & S&P 500 higher. Later in the session, the stock broke higher than $600, and it finally closed above this level for the 1st time since October, 2012.
The Dow Jones industrial average went up 0.11 % or 17.66 points , to 16,530.55, the Nasdaq Composite added 14.158 points or 0.34 %, to 4,138.055. and the S&P 500 gained 3.52 points or 0.19 %, to 1,884.66.
Short-term upward trendlines were tested in the the Dow & S&P 500 but not broken, commented Adam Sarhan, chief executive of Sarhan Capital in New York, thus making suggestions that the uptrend will still continue.
Shares of Freddie Mac & Fannie Mae made gains partly as a result of the recommendation of activist investor William Ackman giants during the Sohn Investment Conference in New York. Fannie was up 3 % at $4.10 while Freddie was up 6.3 % at $4.23.
On the other side, JPMorgan Chase shares fell 2.4 % to $54.22, the biggest drop on the S&P 500. The bank stated late Friday it was looking forward to second-quarter revenue from bond & equity trading to decline about 20 % from a year ago. The S&P financial index declined by 0.4 %.
Pfizer Inc shares fell 2.6 % to $29.96. The biggest U.S. drug company reported revenues well below bookmakers' expectations.
Also after the bell, American International Group Inc, AIG’s shares declined 1.9 % to $51.70 after it posted a 27 % fall in quarterly income.
Shares of Target Corp fell 3.5 % to $59.87 during the regular session,. Chairman and Chief Executive, Gregg Steinhafel, will leave the No. 3 United States retailer in the wake of a data breach last year that harmed profits, affected customers’ confidence & prompted congressional hearings.
Meanwhile shares of B/E Aerospace leapt 9.3 % to $97.22. Recaro, a German aircraft seating maker said it was checking out the possibility of acquiring B/E Aerospace assets after the American firm announced a surprise review.
Around 5 billion shares changed hands on United States stock exchanges, according to data from BATS Global Markets this is well under the 6.7 billion average for the last five sessions,.