YAHOO [BRIEFING.COM]: A push
against Citigroup and Apple mired the major equity averages for most of the
session, but stocks managed to settle higher with varied gains that were good
enough to make for fresh two-year closing highs.
The latest quarterly report
from Citigroup (C 4.80, -0.33) came short of expectations on
both the top and bottom line. Disappointment sent shares of the diversified
financial giant to their steepest loss in more than six months.
Regional bank Comerica
(CMA 37.84, -3.51) posted an impressive upside earnings surprise, but
its shares were rejected in response to news that it will acquire Sterling
Bank (SBIB 8.93, +1.23) for $10 per share, a 30% premium over its
closing price last week.
Some support was provided to
the financial sector by consumer finance plays following the publication of
monthly card metrics from American Express (AXP 46.37, +0.12)
and Discover Financial (DFS 20.74, +0.36). Results from the
two companies were generally in line with what had been expected.
Ahead of its own quarterly report,
Apple (AAPL 340.65, -7.83) shares were shunned in response to
news that company Chief Executive Steve Jobs will take another medical leave of
absence. The stock opened more than 6% lower, but losses were pared during the
day. Shares of AAPL experienced some of the heaviest trading volume that they
have seen in almost one year.
Leadership was lacking all
session, but stocks still managed to grind to modest gains. In the end,
advancing issues edged out decliners by 3-to-2 in the S&P 500.
Data wasn't very
inspirational. The Empire State Manufacturing Survey improved to 11.9 for
January. The consensus call among economists polled by Briefing.com was pegged
at 12.0.
Net Long-Term Treasury
International Capital Flows spiked in November to $85.1 billion from $28.9
billion in the prior month, but the data indicated that China's holdings of
U.S. debt were lowered by little more than 1%.
Overseas data, another
successful debt offering from Spain, and supportive comments about funding for
the European recovery from Russia's finance minister all helped spur the euro
and British pound higher against the greenback. The Dollar Index ended the
trading day down by about 0.6%, which makes for its sixth loss in seven
sessions.
Commodities, outside of the
energy sector (-0.5%), closed higher on the session, led by a 1.2% gain in
grains and 1.1% gain in livestock. Cotton futures were the largest advancing
commodity after they tacked on 2.8%.
Feb gold ended higher by 0.5%
to $1368.20 per ounce, while March silver gained 2% to close at $28.91 per
ounce. Both metals moved higher on the back of a weaker dollar.
Feb crude oil settled off 0.2%
to $91.38 per barrel in a very uneventful session Feb natural gas ended down
1.4% to $4.41 per MMBtu. Natural gas started the session on a positive note
before selling off in mid-morning trade.
Advancing Sectors: Energy (+0.7%), Materials (+0.6%),
Industrials (+0.6%), Health Care (+0.4%), Tech (+0.3%), Consumer Discretionary
(+0.3%), Utilities (+0.2%)
Unchanged: Consumer Staples
Declining Sectors: Financials (-0.8%), Telecom (-1.3%)DJ30
+50.55 NASDAQ +10.55 NQ100 +0.2% R2K +0.00% SP400 +0.9% SP500 +1.78 NASDAQ
Adv/Vol/Dec 1278/2.04 bln/1369 NYSE Adv/Vol/Dec 1626/1.22 bln/1374