YAHOO [BRIEFING.COM]: In the process of setting a fresh multiyear high the stock market scored its strongest percentage gain in a month as broad-based buying welcomed stocks to a new year.

The tone of today's trade was positive from start to finish. A robust gap up was extended through the first leg of trade so that the Nasdaq hit its highest level since December 2007 and the S&P 500 cleared 1275 for the first time since September 2008. The S&P 500 spent the next few hours hugging that line before it gradually drifted off of that mark in afternoon action.

Bank of America (BAC 14.19, +0.85) scored the biggest gains of any stock in the S&P 500. The company removed an element of uncertainty surrounding repurchase obligations of residential mortgage loans sold to GSEs after it announced plans to take a fourth quarter provision of approximately $3 billion related to the matter. The firm also noted that cost estimates related to additional claims, representations, and warranties have been included in the provision.

Strength in shares of BAC inspired buying among other diversified financial services plays, which helped drive the financial sector to a 2.3% gain. No other sector came close to matching its performance.

Alcoa (AA 15.80, +0.41) was the third best performing blue chip behind shares of Bank of America and JPMorgan Chase (JPM 43.58, +1.16). The stock was partly helped by a positive rating from analysts at Deutsche Bank ahead of Alcoa's earnings report next week. Other materials stocks saw their gains clipped as natural resource plays were pressured in late afternoon trade.

Consumer staples stocks lagged all session. They settled with a gain of just 0.2%, imbued by weakness in Clorox (CLX 61.57, -1.71), which dove after the firm issued downside guidance.

Solid data seemed to uphold this session's buying effort. Construction spending for November increased by 0.4%, which exceeded the Briefing.com consensus call for a 0.2% increase after spending had increased 0.7% the month before.

The ISM Manufacturing Index for December improved to 57.0 from 56.6, but the latest reading was still slightly below the 57.3 that had been expected, on average, among economists surveyed by Briefing.com.

Prior to the open participants were able to take the pulse of some overseas manufacturing activity. Germany's final Manufacturing PMI for December came in at 60.7, down from 60.9, but the broader eurozone's December reading improved to an eight-month high of 57.1. China's Manufacturing PMI for December eased back to 53.9 from 55.2 in the prior month, but its non-Manufacturing reading improved to 56.5 from 53.2 month over month.

Overseas markets staged strong gains amid the data. Germany's DAX advanced 1.1% while France's CAC climbed 2.5%. Britain's FTSE was closed. Hong Kong's Hang Seng ascended 1.7% and South Korea's Kospi tacked on 0.9%. Both Japan's Nikkei and China's Shanghai Composite remained closed.

The dollar advanced against several key currencies, namely the yen, euro, and pound. Strength in the greenback helped the Dollar Index climb as much as 0.7% before that gain was dashed. Still, the dollar managed to fend off efforts to take it into the red; it was up about 0.3% as of the close of trade.

A mixed finish among commodities saw the CRB Commodity Index settle with a gain of just 0.1% after it had been up almost 0.8% at its session high. Soft commodities still scored a 3.4% gain while livestock shed 1.7% and lean hogs fell 2.2%. Sugar surged 5.7% while orange juice tacked on 5.0%.

Energy, which collectively gained 1.7%, was largely led by a 5.5% surge in natural gas prices to $4.65 per MMBtu in the February contract. Many reports pointed to colder-than-average temperatures as cause for the climb to a four-month high. Crude oil prices settled just 0.2% higher at $91.55 per barrel after sharp selling undercut the commodity into the close of pit trade.

Precious metals traded quietly. Gold prices in the February contract settled just 0.1% higher at $1422.90 per ounce while silver settled with a 0.1% gain at $31.13 per ounce. After pit trade closed the metals were hit with selling pressure.

Advancing Sectors: Financials (+2.3%), Telecom (+1.4%), Consumer Discretionary (+1.2%), Tech (+1.2%), Health Care (+1.0%), Energy (+1.0%), Materials (+0.7%), Industrials (+0.7%), Utilities (+0.5%), Consumer Staples (+0.2%)
Declining Sectors: (None)DJ30 +93.24 NASDAQ +38.65 NQ100 +1.6% R2K +1.9% SP400 +1.4% SP500 +14.23 NASDAQ Adv/Vol/Dec 2053/1.93 bln/636 NYSE Adv/Vol/Dec 2236/1.06 bln/791