On Thursday, U.S. stock indices were eased into gains by shares of the financial sector, which gained 1.2%. Buyers were enticed by last week’s dip in prices that was the largest decline this year.
The Dow Jones Industrial Average, the S&P 500 and the Nasdaq each advanced 0.3%. And the small-cap Russell 2000 jumped 0.8%. However, the Dow Jones is down 0.4% so far in March, and unless it has a strong rally today it will register the first monthly decline since October. The S&P 500 is currently ahead by 0.2% and the Nasdaq is up 1.5%.
Crude oil (WTI) rallied to over the psychologically important $50 per barrel, up 1.7% yesterday at $50.30 per barrel. However, the S&P 500’s energy sector rose just 0.5%.
The Commerce Department reported that after-tax U.S. corporate profits gained 22% in Q4 vs. the prior year. And the number unemployed fell last week, according to the Labor Department’s figures.
At the close, the Dow Jones Industrial Average gained 69 points at 20,728; the S&P 500 rose 7 points at 2,368, the Nasdaq gained 17 to close at 5,914, and the Russell 2000 closed at 1,382 for a gain of 11. The NYSE’s primary exchange traded 761 million shares with total volume of over 3 billion shares. The Nasdaq crossed 1.7 billion shares. On the Big Board, advancers outpaced decliners by 1.6-to-1, and on the Nasdaq, advancers led by 1.5-to-1. Blocks on the NYSE fell slightly to 6,019 from 6,086 on Wednesday.
The Nasdaq’s advance of 0.3%, along with Monday’s stellar test of its 50-day moving average, propelled this benchmark index to a new closing high. It, however, missed a new all-time intraday high by roughly 13 points. Broad accumulation has accompanied the rally for almost six months as it tracked above its 50-day moving average for most of that time. The MACD internal indicator is arching up and will probably issue a new buy signal today.
Conclusion: To end the month of March on an upbeat note by closing above the 50-day moving average would be a great entrance into the new month. Even the SPDR S&P MidCap 400 ETF (NYSEARCA:MDY) that I reviewed yesterday successfully overcame its 50-day moving average by almost a full point. And its MACD indicator is very close to a fresh buy signal.
Let’s hope that buyers show up again today, since it would be a psychological boost to enter April with the wind at our backs. April is traditionally strong — in fact the strongest month of the year. The Stock Trader’s Almanac reports that since 1950 the average performance for April is over 1.9%.
Today’s Trading Landscape
To see a list of the companies reporting earnings today, click here.
For a list of this week’s economic reports due out, click here.
Tell us what you think about this article! Drop us an email at editor@investorplace.com, chat with us on Twitter at @InvestorPlace or comment on the post on Facebook. Read more about our comments policy here.
