May Brings a Bloom to the Dow — Tuesday’s IP Market Recap

by Marc Bastow | May 1, 2012 5:07 pm

May Brings a Bloom to the Dow — Tuesday’s IP Market Recap

IPMarketRecap May Brings a Bloom to the Dow    Tuesdays IP Market Recap[1]The Dow reached a four-year high today as strong manufacturing news from China and the U.S. combined with continued positive earnings momentum to get May off to a rousing start.

The Dow touched the 13,339 mark, its highest since December 2007 before settling at 13,279, up 0.5%. The S&P was up 0.57% to 1,406, and the Nasdaq finished at 3,050, up 0.13%.

The Dow rally was broad-based, as more than 70% of the index stocks finished the day ahead.

U.S. manufacturing showed better-than-expected growth in April according to the ISM Manufacturing Index, which jumped from 53.4 in March to 54.8 in April. This trumped the consensus estimate, which called for a drop to 53.

The Chinese government also announced that the country’s manufacturing sector continued to improve for the fifth consecutive month, climbing from 53.1 in March to 53.3 in April.

A reading of 50 or higher is a signal of expansion in both the U.S. and China.

Results were mixed on the earnings front, as BP (NYSE:BP[2]) joined with fellow oil stocks Exxon (NYSE:XOM[3]) and Conoco (NYSE:COP[4]) in a disappointing first quarter. BP finished down 1.6% at $42.70, while XOM and Conoco bucked the trend, with XOM up just under 1% and Conoco climbing 3.5%.

Pharmaceutical giant Pfizer (NYSE:PFE[5]) also reported disappointing results[6] as first-quarter revenues fell 7% to $15.4 billion from $16.5 billion in the year-ago quarter. Net income dropped 19% to $1.79 billion, or 24 cents per diluted share, compared to net income of $2.22 billion, or 28 cents per share last year.

Cosmetics maker Avon (NYSE:AVP[7]) also struggled, as earnings disappointed analysts[8] and investors alike, causing the stock to plunge 8% to $19.89 on the news.

P.F. Chang’s (NASDAQ:PFCB[9]) climbed 30% as private equity firm Centerbridge Partners entered a deal to take the restaurant chain private[10].

Tomorrow’s earnings release notables include Clorox (NYSE:CLX[11]), Marathon (NYSE:MRO[12]), Visa (NYSE:V[13]), Sunoco (NYSE:SUN[14]), and Allstate (NYSE:ALL[15]).

Three Up

Three Down

Marc Bastow is an Assistant Editor of InvestorPlace. He is long XOM as of this writing.

Endnotes:
  1. [Image]: http://investorplace.com/hot-topics/investorplace-market-recap/
  2. BP: http://studio-5.financialcontent.com/investplace/quote?Symbol=BP
  3. XOM: http://studio-5.financialcontent.com/investplace/quote?Symbol=XOM
  4. COP: http://studio-5.financialcontent.com/investplace/quote?Symbol=COP
  5. PFE: http://studio-5.financialcontent.com/investplace/quote?Symbol=PFE
  6. reported disappointing results: http://investorplace.com/2012/05/pfizer-is-still-a-pharma-giant-buy-pfe-nvs-mrk-sny/
  7. AVP: http://studio-5.financialcontent.com/investplace/quote?Symbol=AVP
  8. earnings disappointed analysts: http://investorplace.com/2012/05/avon-earnings-plunge-shares-fall/
  9. PFCB: http://studio-5.financialcontent.com/investplace/quote?Symbol=PFCB
  10. take the restaurant chain private: http://investorplace.com/2012/05/centerbridge-to-acquire-p-f-changs/
  11. CLX: http://studio-5.financialcontent.com/investplace/quote?Symbol=CLX
  12. MRO: http://studio-5.financialcontent.com/investplace/quote?Symbol=MRO
  13. V: http://studio-5.financialcontent.com/investplace/quote?Symbol=V
  14. SUN: http://studio-5.financialcontent.com/investplace/quote?Symbol=SUN
  15. ALL: http://studio-5.financialcontent.com/investplace/quote?Symbol=ALL
  16. SHC: http://studio-5.financialcontent.com/investplace/quote?Symbol=SHC
  17. Read more about Sears here: http://investorplace.com/2012/05/sears-hometown-and-outlet-locations-a-boon-for-lampert-shld/
  18. HUN: http://studio-5.financialcontent.com/investplace/quote?Symbol=HUN
  19. ADM: http://studio-5.financialcontent.com/investplace/quote?Symbol=ADM
  20. DPZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=DPZ
  21. NIHD: http://studio-5.financialcontent.com/investplace/quote?Symbol=NIHD
  22. ODP: http://studio-5.financialcontent.com/investplace/quote?Symbol=ODP

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