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Daily Fundamental Report By

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Re: Daily Fundamental Report By

Postby olofx » Mon Jun 02, 2014 7:06 am

Daily Fundamental Analysis

Market Recap Stocks advanced and benchmark Treasury yields edged up as traders bet on growth in the second-quarter even as the dollar fell broadly on weaker-than-expected GDP data. Oil rose after a sharp drop in gasoline stocks and gold slipped.
The S&P 500 index scored its third record closing high in four sessions on Thursday as traders shrugged off data that showed the economy contracted in the first quarter and bet on improvement in the second quarter. The gains were supported by a re-port showing the number of Americans filing new claims for un-employment benefits fell more than expected last week, pointing to a strengthening labor market. Hillshire Brands shares surged 17.73 percent. Tyson Foods rose 6.14 percent. Palo Alto Networks jumped 5.27 percent a day after it reported better-than-expected quarterly revenue as it added more customers, and said it settled patent litigation with network gear maker Juniper Networks. Apple shares gained 1.82 percent. The Dow rose 0.39 percent, the S&P 500 gained 0.53 percent and the Nasdaq added 0.54 percent.
Benchmark Treasury yields inched up from 11-month lows as data showed the U.S. economy shrank for the first time in three years in the first quarter but did not alter the view of a solid re-bound this spring. The Treasury Department sold $29 billion in 7-year notes at a high yield of 2.01 pct. The bid-to-cover ratio was 2.60. Benchmark 10-year notes traded down 6/32 to yield 2.46 percent. 30-year bonds fell 19/32, yielding 3.32 percent.
The dollar eased and finished down against other major currencies as traders shrugged off government data showing America’s economy shrank at a 1 percent annual rate during the first quarter. The euro rose 0.10 percent at $1.3602. The British pound increased 0.04 percent against the dollar at $1.6716. The Australian dollar touched a high of $0.9312 and was last at $0.9300, up 0.70 percent for the day. The dollar index was off 0.09 percent at 80.50.
Crude rose after government data showed a sharp drop in gaso-line stocks that outweighed a build in overall crude stocks, while Brent was buttressed by the loss of most supply from Libya and geopolitical risk in Ukraine. "We didn't get as big a build as was in the API data, so the (oil futures) market has stabilized after some profit taking," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut. "The primary driver behind the recent run up of U.S. crude above $100 was the geopolitical risk of supply disruption." Oil rose 0.80 percent to $103.54 a barrel.
Gold eased but bounced off its lowest level in nearly four months after data showed the U.S. economy contracted in the first quarter for the first time in three years. Analysts said gold prices should find support in an oversold market, but the precious metal will likely face more headwinds from better overall economic conditions. Spot gold was down 0.19 percent to $1,255.70 an ounce. Gold futures for June delivery fell 0.31 percent to $1,255.40 an ounce.
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