The Dow Jones rose on Monday upon a better than expected retail sales report from the U.S. Department of Commerce. The NASDAQ fell upon slumps in major companies such as Apple.
The retail sales report released on Monday showed an increase of .08 percent in retail sales. Analysts were expecting an increase between .06 percent and .09 percent. This gave many investors the go ahead and increased confidence in the U.S. economy among a plethora of uncertain economic indicators.
Procter and Gamble saw an increase of 1.5 percent and Walmart Stores saw a increase of 1.4 percent to their share prices.
In contrast to the rise of many top companies, Apple saw a drop of 4.2 percent to $580.13. Apple has seen an incredible increase of 43 percent this year. The drop was probably due to investors feeling that it was time to sell and reap the benefits of such growth.
Of course, there are still worries over the European debt crisis and China’s growth prospects. In addition to this the New York state manufacturing report was rather weak. This is generating confusion and anxiety among investors.
“The market behavior is fairly manic today and investors are confused after a mixed set of data, Spanish yields, and momentum stocks like Apple losing ground,” said James Dailey, portfolio manager at TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.
“The confusion is leading to anxiety, and that’s why we are seeing the blue chips, the large caps, outperform.”
In addition to the slump in Apple shares, there were some other major players that saw a downturn in their share prices. Among those was Mattel Inc which has seen a quarterly drop in sales. Google also continues to drop after the new share split plan and due to the looming major legal battle with Oracle Inc.
Overall, the Dow Jones rose 71.82 points to 12,921.57, an increase of .56 percent. The Standard & Poor’s 500 Index .05 percent. The NASDAQ dropped by .76 percent and closed at 2,998.40 . Earnings season in currently in progress. Eighty-six companies on the S&P 500 are scheduled to report earnings. Of the 36 that have so far reported, 76 percent have reported better than forecasted results. The NYSE ratio of out-performers to under-performers is 17 to 13; the ratio for the NASDAQ was 13 to 12.