YAHOO [BRIEFING.COM]: Data
helped dissolve a negative tone in early trade, but financials provided the
leadership necessary to take the stock market to a fractionally improved
two-year high.
Losses among overseas markets
weighed on stock futures this morning, but the tone improved with news that the
ADP Employment Change reading showed that 300,000 private payrolls were added
during December. Many were quick to speculate that since the ADP tally is
triple what had been expected, a strong non-farm payrolls report will likely be
released this Friday.
Participants didn't respond to
the December ISM Services Index, which hit a four-year high of 57.1 to best the
Briefing.com consensus call for a reading of 55.7.
Stocks were a bit sluggish in
the early going as financials were the only sector to sport a gain in the early
going. Financials gradually garnered additional buying and pushed to a 1.2%
gain. AIG (AIG 60.95, +4.17) was one of the sector's top
performers following news that a $3 billion bid was made for the firm's Taiwan
unit.
Strength among financials
inspired broader buying, such that utilities (-0.6%) made up the only sector to
log a loss. That helped both the S&P 500 and Dow inch past the heights
reached earlier this week for fresh two-year highs.
The Nasdaq couldn't quite
eclipse the high that it set earlier this week, but it still scored a better
gain than either of its counterparts. The Nasdaq was led by a handful of tech
plays, namely Apple (AAPL 334.00, +2.71). Qualcomm (QCOM
52.03, +1.06) was also strong after it confirmed plans to acquire Atheros
(ATHR 44.64, +0.64) for $45 per share.
Outside of the major averages,
the Amex Airline Index ascended to a 1.6% gain following a flurry of monthly
traffic reports. The Airline Index is already up 4.0% this year. That only adds
to a near 40% annual gain in 2010.
Commodities had a weak start,
but were able to rebound. More specifically, the CRB Commodity Index ended the
day with a 0.5% gain after it was down 1.0% this morning. Oil was key driver in
that bounce; it settled at $90.30 per barrel for a 1.0% gain after it had been
down more than 1% even after a larger-than-expected draw from weekly
inventories was reported.
The dollar advanced 1.0%
against a collection of competing currencies. That was its best percentage gain
in three weeks and makes for its third straight advance since settling lower in
seven straight sessions.
Treasuries were trounced
today. That left the yield on the benchmark 10-year Note to rise above 3.45% to
its highest level this week.
Commodities finished modestly
higher day, with precious metals (-0.7%) and energy (-0.1%) posting modest
declines. Grains, led by wheat (+2.4%), posted a 2% move. Industrials, led by
nickel (+1.6%), added 0.9%.
Feb natural gas finished lower
by 4% to $4.47 per MMBtu after it sold off sharply in morning trade. It spent
the afternoon bouncing around near its session lows, and closed just above
those lows. Unlike yesterday's session, where it recouped all of its losses
before the close, natural gas moved lower and closed lower today. Feb crude oil
gained 1% to end at $90.30 per barrel. It recouped losses, following inventory
data, to close back above the $90 level.
Feb gold settled lower by 0.4%
to $1375.80 per ounce, while March silver shed 1.6% to finish at $28.93 per
ounce. Both metals spent the afternoon bouncing off of their respective lows.
Gold eventually traded into positive territory, only to retrace part of its
bounce. Silver, on the other hand, never made it back to flat. Silver's lows,
at $28.58, mark its lowest levels since mid-Dec.
Advancing Sectors: Financials (+1.2%), Consumer
Discretionary (+0.8%), Tech (+0.7%), Telecom (+0.6%), Industrials (+0.5%),
Energy (+0.2%), Consumer Staples (+0.1%), Health Care (+0.1%)
Declining Sectors: Utilities (-0.6%)
Unchanged: MaterialsDJ30 +31.71 NASDAQ +20.95 NQ100 +0.8% R2K
+1.2% SP400 +0.6% SP500 +6.36 NASDAQ Adv/Vol/Dec 1879/2.07 bln/777 NYSE
Adv/Vol/Dec 1802/1.04 bln/1192