Stock Market News For May 03, 2016

Benchmarks closed in positive territory on Monday following gains in consumer discretionary, consumer staples and financials stocks. Rise in shares of Wynn Resorts and Amazon boosted consumer discretionary sector, while increase in Sysco helped the consumer staples sector to finish in the green. Meanwhile, gains in Berkshire Hathaway had a positive impact on financials stocks. The Nasdaq snapped its seven session losing streak to end in the green following gains in Sarepta.

For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article

The Dow Jones Industrial Average (DJI) increased 0.7%, or 117.52 points, to close at 17,891.16. The S&P 500 rose 0.8% to close at 2,081.43. The tech-laden Nasdaq Composite Index closed at 4,817.59, gaining 0.9%. The fear-gauge CBOE Volatility Index (VIX) decreased 6.5% to settle at 14.68. A total of around 7.1 billion shares were traded on Monday, in line with the last 20-session average. Advancers outpaced declining stocks on the NYSE. For 62% stocks that advanced, 36% declined.

Shares of Wynn Resorts Ltd. ( (NASDAQ:WYNN) ) increased 6.8% following a lower-than-expected decline in revenue last month from its Macau casino operations. Revenue fell by 9.5% to $2.2 billion in April, as compared to a 16.3% drop in March and analysts’ expectations of 13.5%.

Also, Amazon.com, Inc’s ( (NASDAQ:AMZN) ) shares rose 3.7% after Warren Buffet said Amazon’s “accomplishments in a short time are remarkable,” while talking about the company’s success.

Gains in Wynn Resorts and Amazon had a positive impact on consumer discretionary stocks. The Consumer Discretionary Select Sector SPDR (XLY) increased 1.4% and was the highest gainer among the S&P 500 sectors. Key components including Netflix, Inc. ( (NASDAQ:NFLX) ), Starbucks Corporation ( (NASDAQ:SBUX) ), Walt Disney Company ( (NYSE:DIS) ), Home Depot, Inc. ( (NYSE:HD) ), McDonald's Corp. ( (NYSE:MCD) ) and NIKE, Inc. ( (NYSE:NKE) ) rose 3.4%, 2%, 1.1%, 1.6%, 1.4% and 1.1%, respectively.

Moreover, shares of Sysco Corporation ( (NYSE:SYY) ) advanced 5.5% after fiscal third quarter adjusted earnings of 46 cents per share beat the Zacks Consensus Estimate of 42 cents and were up 15% year over year. Sysco's sales of $12 billion marginally outpaced the Zacks Consensus Estimate of $11.91 billion and increased 2.2% year-over-year.

Rise in Sysco led the Consumer Staples Select Sector SPDR ETF (NYSE:XLP) 1.2% higher. Key consumer staples stocks including Mondelez International, Inc. ( MDLZ), Colgate-Palmolive Co. ( (NYSE:C) ), Costco Wholesale (NASDAQ:COST) Corporation ( (NYSE:C) ), Procter & Gamble Company (NYSE:PG) (PG) and CVS Health (NYSE:CVS) Corporation ( (NYSE:C) ) rose 3.1%, 2%, 1.9%, 1.1% and 1%, respectively.

Additionally, shares of Berkshire Hathaway Inc. (NYSE:BRKa) (BRK.B) rose 1% after the company said at its shareholder meeting last Saturday that it has posted first quarter net income of $5.59 billion, higher than the year-ago quarter’s $5.16 billion.

Gains in Berkshire Hathaway had a positive impact on broader financial sector, with the Financial Select Sector SPDR (XLF) gained 0.9%. Its key components from the sector such as American International Group, Inc. ( (NYSE:AIG) ), U.S. Bancorp (USB), Citigroup Inc. ( (NYSE:C) ), Bank of America Corporation ( (NYSE:BAC) ) and Wells Fargo (NYSE:WFC) & Company ( (NYSE:C) ) advanced 1.4%, 0.7%, 0.9%, 1.4% and 1.2%, respectively. Dow components JPMorgan Chase & Co (NYSE:JPM). (JPM) and Goldman Sachs Group (NYSE:GS), Inc. (GS) increased 0.9% and 1.3%, respectively.

Further, Sarepta Therapeutics, Inc’s ( (NASDAQ:SRPT) ) shares jumped 26.3% after research firm Oppenheimer upgraded Sarepta’s stock after they cited several supporting factors for eterplirsen’s accelerated approval. This in turn boosted the Nasdaq which ended in the green.

However, Apple Inc. ( (NASDAQ:AAPL) ) dropped 0.1% and posted an eight consecutive trading day decline for the first time since July 28, 1998. Apple’s losses trimmed some of the gains of the tech-based index.

Separately, U.S. dollar index declined following lower-than-expected factory activity and construction spending data which raised worries over slow economic expansion. The dollar index was down 0.5%, registering a six straight session decline for the first time since early April.

The Institute for Supply Management (ISM) manufacturing index decreased from 51.8% in March to 50.8% in April, lower than the consensus estimate of 51.3%. Also, the U.S. Census Bureau reported that construction spending increased 0.3% from February to a seasonally adjusted annual rate of $1,137.5 billion in March. However, it was lower than the consensus estimate of 0.5% increase.