YAHOO [BRIEFING.COM]: Leadership
from financials helped give the broad market a modest gain after market
participants weighed the troubles of Europe against the latest dose of domestic
data.
The same old concerns about
financial and economic conditions in Europe took yields on sovereign debt in
the country higher today and kept constant pressure on the euro, which
descended more than 1% to a 15-month low just beneath $1.280. News that many of
Europe's financial institutions still prefer to park their cash at the European
Central Bank was also regarded as a sign of diffidence in the region.
Negativity stemming from those
themes was temporarily tempered prior to the open by the latest ADP Employment
Change, which offered an encouraging glimpse into the official nonfarm payrolls
report due tomorrow by suggesting that private payrolls increased by 325,000
during December. The jump in payrolls far exceeded the increase of 180,000 that
had been expected, on average, by economists polled by Briefing.com.
The latest weekly initial
jobless claims count declined by 15,000 week-over-week to 372,000, which is on
par with the 375,000 initial claims that had been widely anticipated, but that
report received less attention since it was hardly surprising.
The latest ISM Services Index,
which was released shortly after the open, didn't garner a great deal of
attention either. It came in at 52.6 for December, up from 52.0 in the prior
month, but still slightly less than the 53.0 that had actually been broadly
forecasted.
Although data was regarded as
in-line to positive, stocks still slumped to a marked loss in morning trade.
However, once initial support levels held stocks were able to begin working
their way higher. In contrast to the prior session, though, the broad market
was able to push into positive territory, rather than be rebuffed at the flat
line.
Financials were primary driver
in the stock market's effort to trade higher. The sector scored a 1.4% gain
with help from bank stocks, which collectively climbed almost 2%, as measured
by the KBW Bank Index.
Agricultural plays Monsanto
(MON 76.68, +4.01) and Mosaic (MOS 53.30, +1.00) were
among the top individual performers of the session, thanks to better-than-expected
earnings results. Despite their strength, the rest of the materials sector
scored a gain of only 0.3%.
The consumer discretionary
sector was able to put together a 0.7% gain despite early weakness among
retailers, which were initially weighed down by an underwhelming round of
same-store sales results for December.
Crude oil futures prices fell
$1.45, or 1.4%, to settle pit trade at $101.77 per barrel. The energy component
set a session low of $101.58. Bearish inventory numbers hampered the commodity
for most of the session. Natural gas inventory data wasn't particularly
encouraging to buyers either. That left the commodity to extend its descent by
another $0.12, or 3.9%, to $2.98 per MMBtu.
As for precious metals, gold
prices overcame selling pressure this morning to post a gain of $8.80, or 0.5%,
by finishing pit trade at $1622.90 per ounce. Silver also overcame selling; it
settled at $29.39 per ounce, which makes for a gain of $0.25 or 0.9%.
Despite the rebound by
precious metals, the CRB Commodity Index still suffered a 1.7% loss.
Advancing Sectors: Financials +1.4%, Consumer Discretionary
+0.7%, Tech +0.5%, Materials +0.3%, Health Care +0.2%, Utilities +0.2%
Unchanged: Industrials
Declining Sectors: Consumer Staples -0.2%, Telecom -0.5%,
Energy -0.6%DJ30 -2.72 NASDAQ +21.50 NQ100 +0.8% R2K +0.7% SP400 +0.7% SP500
+3.76 NASDAQ Adv/Vol/Dec 1537/1.85 bln/977 NYSE Adv/Vol/Dec 1839/829 mln/1186