The markets enjoyed a strong, trend-day type rally today led by big tech like Apple (AAPL ) and semiconductors. The Dow 30 closed higher on the day by 217, the S&P 500 added 30, and the Nasdaq closed higher on the day by 109. Interest rate sensitive areas like REITs and Homebuilders also enjoyed strong days thanks to the dovish stance by the Fed yesterday where they said they would likely leave rates unchanged for the rest of the year.
Sector News
Financials continued to get hit today following yesterday's Fed announcement that they would likely leave rates unchanged for the rest of the year. Financials as a whole had their worst two day decline this year so far on that news with the regional banks taking the brunt of the sell off. Though they closed lower on the day, they were still well off their lows.
Semiconductors continued to enjoy their recent bullish run with a total gain on the week now totalling about 4%. The semiconductor sector has recently started a new bullish run, which has helped support the markets at these highs.
Homebuilders and interest rate sensitive areas like REITs all had a positive day today thanks to the clarity of potentially steady rates. Both sectors enjoyed their strongest days of the week.
Stock News
Biogen (BIIB ) shares plummeted nearly 30% today as the company announced that they're ending their trials on their promising Alzheimer's treatment after it became clear that the drug would not be as effective as initially thought. The stock sold off to lows not seen since 2016.
Darden Restaurants (DRI ) shares enjoyed a nice pop today as the company reported earnings and revenue that was better than Wall Street's expectations. The company also saw a bump up in sales at its restaurant brands, including Olive Garden and Longhorn steakhouse, which prompted them to raise their 2019 outlook. Technical traders note the lack of overhead resistance.
Conagra (CAG ) shares were sharply higher on the day today as the company announced earnings that were 2 cents better than expected. Revenue came in a little light and the company was not totally optimistic going forward with their sales outlook. Investors were bullish on the absorption of price increases by the consumer.
