Stocks Mixed as P&G Forecast Offsets Yum, Boeing
NEW YORK ( TheStreet) -- Disappointments from Procter & Gamble
Goldman Sachs, in a client report, said it expects markets to move higher into summer, telling investors to ignore the usual "sell in May and go away" mentality. The investment bank raised its equities forecast to "overweight" over the coming three months on expectations of an acceleration in global growth.
Despite the Goldman report, markets were weighed down by Procter & Gamble's sales forecast that fell short of expectations. The consumer goods manufacturer tumbled 5.9% to $77.12.
Edwards Lifesciences was one of the heaviest decliners on the S&P 500, plunging 22% to $64.60 after the medical company on Tuesday cut its full-year outlook on sluggish sales of its transcatheter heart valves.
The Census Bureau reported that durable goods orders fell 5.7% in March after rising 5.7% in February. Orders excluding the transportation component slid 1.4%. Economists polled by Thomson Reuters, on average, estimated durable goods orders would fall 2.8% and that core durable goods orders would rise 0.5%.
"One of the main reasons for the market rally is the continued easing policies from the Federal Reserve ," Brian Amidei, HighTower Palm Desert's managing director and partner, said in an emailed comment. "This has allowed the markets to disregard some of the less than positive economic reports that we have seen over the last several months.
"We do not see the Fed changing its policy over the summer so we believe that after the short-term volatility we are seeing, markets will be higher at year's end," Amidei said.
In the interim, Amidei said that the market should consolidate over the next few weeks with a pullback in the 5% to 7% range from the S&P 500's record closing price of 1,593.37 on April 11 heading higher again.