Wall Street 'Melt-Up' Rolls On
"Sell in May and go away" is one Wall Street cliche that certainly hasn't held true in 2013, at least so far. The S&P 500 and Nasdaq have each risen in 15 of the past 18 sessions, with both the Dow and the S&P closing at record highs once again. The Dow has also registered a record 18 consecutive Tuesday gain's with yesterday's 123 point advance.
Today is the first of several busy days for economic numbers, beginning with the April Producer Price Index at 8:30 a.m. ET. Consensus forecasts call for a 0.6 percent drop, which would equal the March decline. The "core" rate, figured without food and energy, is seen rising 0.1 percent in April after a 0.2 percent advance in March.
The New York Fed's Empire State index is also out at 8:30 a.m. ET, with economists looking for a May reading of 3.5, up slightly from April's 3.05.
At 9:15 a.m. ET, the Federal Reserve issues April industrial production and capacity utilization figures. Production is seen dropping 0.1 percent after a 0.4 percent rise in March, while capacity utilization is expected to fall to 78.4 percent from 78.5 percent in March.
At 10 a.m. ET, the National Association of Realtors is out with its home builder sentiment index, with forecasters looking for a May reading of 43 compared to April's 42.
Retailer Macy's (M) leads this morning's list of corporate earnings, with Deere & Co. (DE) and Computer Sciences (CSC) also out with quarterly numbers before the opening bell. Dow component Cisco Systems (CSCO) highlights today's after-the-bell earnings releases.
Agilent Technologies (A) is among our stocks to watch this morning, with the testing equipment maker reporting fiscal second quarter profits of $0.77 per share, ten cents above estimates. However, the company's current quarter outlook of $0.60 - $0.64 per share falls below consensus estimates of $0.73. Agilent is also unveiling a restructuring plan that will include a 2 percent reduction in its global workforce.
Safeway (SWY) has increased its quarterly dividend by 14 percent, raising it to $0.20 per share. The grocery chain's increased payout will be paid to shareholders on July 11.
Eastman Chemical (EMN) has named executive vice president Mark Costa as its next chief executive officer. He'll replace the retiring James Rogers on January 1, 2014, with Rogers staying on as chairman.
Google (GOOG) is set to launch a Spotify-style music service, according to the Wall Street Journal. Google could announce the new service at its annual conference for software developers scheduled for today.
Boeing (BA) will complete fixing the battery systems on all of its 787 Dreamliner aircraft by the end of May, according to company vice president Dinesh Keskar.
Actavis (ACT) is said to have rejected a $15 billion takeover bid from Mylan (MYL), according to Reuters. The Mylan bid for its rival generic drugmaker valued Actavis at $120 per share.