This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Start May on Positive Note

NEW YORK ( TheStreet) -- Stocks kicked off May on a strong note Tuesday, posting smart gains after a much better-than-expected report on U.S. manufacturing activity.

The Dow Jones Industrial Average rose 67 points, or 0.5%, to close at 13,280, after hitting an intra-day high of 13,338, levels not seen since late 2007. The S&P 500 gained 8 points, or 0.6%, to finish at 1406, and the Nasdaq added 4 points, or 0.1%, to close at 3050.

Breadth within the Dow was positive, with 22 stocks ending in the positive territory. The biggest percentage gainers among the blue chips were JPMorgan (JPM), Bank of America (BAC - Get Report), Alcoa (AA), Intel (INTC) and Hewlett-Packard (HPQ).

Shares of Bank of America climbed 2.5% to qualify as the Dow's biggest gainer. The bank is planning to cut 2,000 jobs in its investment banking and wealth management businesses, the Wall Street Journal reported.

Caterpillar (CAT) and Pfizer (PFE) were among the prominent losers on the Dow.

Shares of Pfizer ( PFE) slipped 0.6% after the drug giant reported first-quarter adjusted earnings of 58 cents a share on revenue of $15.4 billion; analysts were expecting earnings of 56 cents a share on revenue of $15.47 billion.

In the broad market, winners outpaced losers by nearly a 2-to-1 ratio on the New York Stock Exchange but breadth was negative on the Nasdaq, with losers outpacing winners by a small margin.

"The institutional players are very bullish about the market and retail investors are a little sheepish," says Kevin Mahn, chief investment officer of Hennion & Walsh Asset Management. "I think it comes down to data points. We'll see what the jobs report on Friday holds for us. One big surprise on either side could make the difference."

Stocks finished modestly lower Monday, marking the first monthly decline for the S&P 500 and Nasdaq in 2012, as shaky U.S. economic data dominated the headlines.

The mood changed though after the Institute for Supply Management reported that its index on U.S. manufacturing activity rose to 54.8 in April from 53.4 in March. It was the best read since last June. Economists surveyed by Thomson Reuters expected the index slipped to 53. A reading of more than 50 indicates growth in activity.

"That the ISM was able to push higher by 1.4 points is incredibly encouraging especially in light of slowing PMIs in several other countries," says BTIG chief global strategist, Dan Greenhaus.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.55 -1.60%
AAPL $93.75 -1.10%
FB $117.53 0.69%
GOOG $693.00 0.29%
TSLA $240.75 -2.80%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs