YAHOO [BRIEFING.COM]: The
major equity averages chopped along listlessly all session as big gains from
the prior session were allowed to consolidate.
Stocks lacked direction from
the start of trade. Many opted to take a breather after the S&P 500 surged
1.8% in the prior session to settle comfortably above key psychological levels
that had not been seen since mid-2008. The lack of participation made for
sluggish action and low share volume, which failed to surpass 1 billion shares
on the NYSE.
Only a muted response was made
to the latest ADP Employment Change, which indicated that 187,000 private
payrolls were added in January. The consensus among economists polled by
Briefing.com had called for 145,000 private payroll additions. Data for the
prior month was revised downward to reflect 247,000 private payroll additions,
which is the greatest increase since 2006.
The latest round of earnings
was generally shrugged off by the broader market, but Electronic Arts (ERTS
18.09, +2.47) attracted attention with its bottom line beat and share
repurchase plan. The stock soared to an eight-month high and helped lift the
tech sector to a 0.3% gain; tech was the only sector to stage a gain.
Semiconductor stocks also
offered support to the tech sector. Their collective 0.5% gain came despite
disappointment over the latest results from Broadcom (BRCM
43.79, -2.60).
As for other announcements, Whirlpool
(WHR 83.60, -1.82) and AFLAC (AFL 57.10, -1.43)
missed consensus earnings calls, but Boston Scientific (BSX
6.85, -0.28) and Time Warner (TWX 35.10, +2.79) both exceeded
expectations. Time Warner also announced an 11% dividend increase.
Financials fell to a 0.9%
loss. They were the worst performing sector after they had staged one of the
strongest moves in the prior session. Multi-line insurers were particularly
weak today. Hartford Financial (HIG 27.93, -0.82) fell hard
ahead of its quarterly report.
Outside of equities, the
dollar caught a slight bid after it had set a two-month low in the prior
session. It was up just 0.1% against a collection of competing currencies at
the end of the trading day.
Treasuries failed to attract
sustainable support. They had been up a bit in the early going, but inevitably
fell. The retreat resulted in a 3.50% yield on the benchmark 10-year Note for
the first time since December and a 30-year Bond yield of 4.65%, which is its
highest level since April. Selling among Treasuries accelerated after it was
learned that dealers had wanted to sell more than six times the amount of
issues that the Fed was willing to buy back. Pressure eased into the close,
though.
The CRB Commodity Index
advanced another 0.5% this session. That puts the Index at a new two-year high.
Cotton futures continued their
dramatic climb. Future contracts closed with cotton priced 2.3% higher at
$1.762 per pound. Meanwhile, sugar futures climbed 4.0% to hit $0.35 per pound,
a level not seen since 1980.
Among metals, gold prices fell
0.6% to $1331.70 per ounce as silver slid 0.9% to $28.25 per ounce. Copper
remained near record highs as it eked out a fractional gain to settle pit trade
at $4.55 per pound.
Oil prices oscillated for the
entire session, but they settled with a 0.3% gain at $91.03 per barrel. Little
reaction was made to news that weekly oil inventory data showed a slightly
larger-than-expected build of 2.59 million barrels. As for natural gas, it
settled pit trade with a 2.0% gain at $4.43 per MMBtu.
Advancing Sectors: Tech (+0.3%)
Unchanged: Energy
Declining Sectors: Financials (-0.9%), Utilities (-0.5%),
Telecom (-0.5%), Consumer Staples (-0.4%), Health Care (-0.4%), Materials
(-0.3%), Industrials (-0.3%), Consumer Discretionary (-0.2%) DJ30 +1.81 NASDAQ
-1.63 NQ100 -0.2% R2K -0.3% SP400 -0.2% SP500 -3.56 NASDAQ Adv/Vol/Dec
1142/2.03 bln/1462 NYSE Adv/Vol/Dec 1391/934 mln/1571