On The Fly: Closing Wrap
Stocks on Wall Street were lower on the first trading day of the second quarter, with mixed economic data, closed markets in Europe and light volume conspiring to keep investors from driving the market to new highs, as was the case in the last day of the just finished quarter...
ECONOMIC EVENTS: In the U.S., the Institute for Supply Management's March manufacturing PMI came in at 51.3, versus an expected reading of 54.0. The Commerce Department reported that construction spending increased 1.2% in February, versus an expected increase of 1.0%. Asian markets finished mostly lower after China's official purchasing managers' index for March rose to 50.9 from 50.1 in February, though that was lower than the 51.0 reading economists were expecting. HSBC's separate PMI reading rose to 51.6 in March from its 50.4 prior reading. Also, in Japan, the quarterly Tankan survey showed a only a modest uptick in confidence among large Japanese manufacturers. In Europe, markets remained closed for the Easter holiday...
COMPANY NEWS: A number of health insurers, including Humana (HUM), UnitedHealth (UNH), WellPoint (WLP) and Aetna (AET), rallied late in the trading day. The CMS announced on its website after the close that it had reversed its stance on cutting Medicare Advantage rates, giving insurers a 3.3% rate increase when a 2.2% decrease had been proposed earlier. Shares of the insurers extended their rally in after-market trading once the news was confirmed... Tesla (TSLA) shares gained $6.04, or 15.94%, to $43.93 after the company said it now expects to be profitable in the first quarter after its Model S sales exceeded 4,750 units, beating its previous expectations...
MAJOR MOVERS: Among the notable gainers was American Greetings (AM), up $1.95, or 12.11%, to $18.05 after agreeing to be acquired by the family of its Chairman for $18.35 per share. Also higher were shares of Quicksilver Resources (KWK), up 35c, or 15.56%, to $2.60 after the company agreed to sell a 25% interest in its Barnett Shale oil and gas assets to a subsidiary of Tokyo Gas for $485M. Among the noteworthy losers was DFC Global (DLLR), down $3.60, or 21.63%, to $13.04 after the company lowered its earnings view for the full year. Also lower were shares of Walter Energy (WLT), down $2.26, or 7.93%, to $26.24 after Goldman reiterated its Sell rating on the company's stock...
INDICES: The Dow was down 5.69, or 0.04%, to 14,572.85; the Nasdaq was down 28.35, or 0.87%, to 3,239.17; and the S&P 500 was down 7.02, or 0.45%, to 1,562.17.
