US stocks manage a late turnaround

Indices register little gains led by the banking stocks

With the help of a late turnaround, US stocks ended modestly higher on Monday, 27 July, 2009. US stocks made a weak start today. But a stronger than expected housing sector report pushed stocks in the green for a very brief period of time. But indices soon slipped back into the red. In line earning reports from a couple of Dow components failed to take indices back in then green. But with the rebound of financial sector, mainly from banks, stocks managed a rebound.

The Dow Jones Industrial Average ended higher by 15.2 points at 9,108.3. The Nasdaq Composite Index, ended higher by 1.9 points at 1,967.6. S&P 500 ended higher by 2.9 points at 982.

Seven of the ten sectors ended in the green today led by the financial sector. The technology sector remained the main laggard.

Among economic reports for the day, The Commerce Department reported on Monday, 27 July, 2009 that sales of new homes in the U.S. in June rose by the biggest amount since November 2008, climbing by 11% to a seasonally adjusted annual rate of 384,000.

The report was stronger than expected. Market was expecting a modest increase in new-home sales to 355,000. The report detailed that sales rose by a revised 2.4% in May, thus marking the third consecutive month of gains. Sales rose 1.8% in April, but fell 6.2% in March. Over the past year, sales are down 21.3%.

Among major earning reports for the day, in-line earnings came from Dow components Verizon and Honeywell. A conservative outlook came from Honeywell. In the healthcare sector, Aetna fell short of earnings expectations and issued downside guidance.

Crude prices ended little higher on Monday, 27 July, 2009. Prices witnessed volatile trading today but managed to eke out gains finally. Prices were boosted by better than expected housing report. On Monday, crude-oil futures for light sweet crude for September delivery closed at $68.38/barrel (higher by $0.33 or 0.48%). Trading was quite volatile today. Prices rose to a high of $68.99 and fell to a low of $67.6 during the day. Last week, crude ended higher by 7.1%.

Among other products in the sector, August reformulated gasoline gained 1.88 cents to $1.9347 a gallon and August heating oil rose 1.53 cents to $1.7966 a gallon. August natural-gas futures fell 9.10 cents to $3.604 per million British thermal units.

Precious metal prices ended little higher on Monday, 27 July, 2009. It was a day of volatile trading for precious metals as prices swung between gains and losses. The dollar managed to gain back some of its lost ground. On Monday, gold for August delivery ended at $953.5, higher by $0.40 (0.04%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.6%. Year to date, gold prices are higher by 7.44%.

Indian ADRs ended mixed today. While the bank ADRs ended in the red, the technology ADRs managed little gains. But Rediff and Sify were the main winners today soaring 13.9% and 10.9% respectively.

Tomorrow will be another busy day of for earnings reports. In economic data tomorrow, the S&P/Case-Shiller Home Price Index for May is due 9:00ET followed by July consumer confidence at 10:00ET.