Stocks pushed higher today after starting lower. The Dow 30 closed higher by 97, the S&P 500 added 16, and the Nasdaq 100 closed up on the day by 58. The results of the banks secondary stress tests and potential dividend increases will lead the way going into the end of week.
The banking sector (XLF ) finally showed some strength today as technical traders looked to support as a buying opportunity. The XLF was higher by 1% on the day which came as some much needed help for the broad markets. Since hitting a high back in January the banks have sold off more than 12%, underperforming for the entire year.
Tech stocks (SMH ) recovered slightly from the recent push lower today. For the last 21 days the SMH has been sliding lower on trade war headlines and confusing White House comments regarding Chinese investments.
Oil (USO ) broke to new highs again today as investors continue to monitor the news out of the State Department regarding Iranian Oil. The White House is sticking by their demands for the rest of the world to cease imports of Iranian Oil or face economic sanctions. Since the low 10 days ago the price of oil is higher by 15%.
Stock News:
Amazon (AMZN ) shares were higher by 2.5% today as the company announced the purchase of PillPack which WalMart (WMT ) was in detailed talks to buy. The online pharmacy company was purchased for "around $1 billion" by Amazon as sources close to the company said that WalMart was offering less and "dragging their feet." The importance of this deal is that Amazon now has pharmaceutical licenses in 49 states.
Chipotle (NYSE ) shares fell 6.5% today as the company announced the closing of as many as 65 stores. On an investor call the company said it will close 55 to 65 stores and look to start a delivery feature in it's mobile app as soon as this summer. Investors were not amused by the cheerleading on the conference call as the details were missing.
Walgreens Boots Alliance (WBA ) shares tumbled to new lows today losing 10% as the company reported earnings. The new Dow component reported earnings that beat expectations as well as revenue but the Amazon deal stole the show, making investors worried about the new competition.
