YAHOO [BRIEFING.COM]: Stocks
had a choppy, range bound session that concluded with mixed results for the
major averages. The action precedes the highly anticipated payrolls report.
The major averages mustered
varied gains in the early going, but they failed to sustain the move. That
resulted in a downward drift, but only the Nasdaq was able to stay out of the
red. The Nasdaq was also the only major average to settle with a solid gain.
The Nasdaq's relative strength was partly owed to strong performances by the
likes of Amazon.com (AMZN 181.72, +2.26), which rebounded from
its prior session slide, and Qualcomm (QCOM 60.73, +1.17),
which complemented a better-than-expected earnings report with strong guidance.
Although not a Nasdaq
constituent, tech-related global payments company MasterCard
(MA 381.57, +23.95) was a top performer today. The stock rallied on the back of
an upside earnings surprise. Collectively, tech stocks scored a gain of just
0.3% today.
Social network outfit Facebook
was in focus following the company's filing for an initial public offering.
Most reports suggest the company could be valued up to $100 billion, which
would more than quadruple the $23 billion valuation that Google
(GOOG 585.11, +4.28) garnered in its IPO.
A handful of retailers had
strong results, even though only half of the 20 retailers covered today by
Briefing.com analysts posted same-store sales that exceeded expectations. Gap
(GPS 21.52, +2.07), Target (TGT 52.00, +0.58), and Costco
(COST 85.51, +2.29) were among those with more impressive results, while Macy's
(M 35.23, +1.24) and Nordstrom (JWN 49.11, -0.41) were among
those that disappointed.
Financials had been a source
of leadership in late morning trade, but the sector's gains were petered out
and it was left to drift sideways into the close. Still, it settled with a 0.5%
gain, which means that it outperformed the broad market for the third straight
session.
Health care stocks lagged all
session and settled with a 0.4% gain. The sector's weakness was partly owed to
disappointment over the latest quarterly reports from Boston Scientific
(BSX 5.84, -0.25) and CIGNA (CI 44.13, -1.55). Even Cardinal
Health (CAH 42.22, -0.86) traded lower in sympathy, despite its upside
earnings surprise.
Fed Chairman Bernanke was in
focus during his testimony to the House of Representatives Budget Committee. He
indicated that the sluggish expansion of the economy has left it vulnerable to
shocks, but noted that concerns about the domestic outlook and developments in
Europe are abating.
Bernanke's comments came a day
before the release of the official monthly payrolls report, which will be posted
tomorrow morning. The pivotal nature of the report made for a more subdued
session of trade as many market participants displayed caution. The consensus
among economists polled by Briefing.com pegs the increase to nonfarm payrolls
at 155,000. Yesterday the ADP Employment Change, which is often directionally
accurate relative to expectations, came short of the consensus estimate.
With the monthly payrolls
report on the horizon, a modest amount of attention was paid to the latest
initial jobless claims tally, which declined by 12,000 to 367,000. That's
actually less than the 375,000 initial claims that had been expected, on
average, among economists polled by Briefing.com.
Fourth quarter productivity
and cost data also made few waves. Productivity increased 0.7%, as had been
expected, but labor costs climbed 1.2%, which is greater than the 0.7% increase
that had been broadly expected.
The CRB Index fell to a 0.2%
loss today. It was weighed down by lower oil prices, which settled pit trade
with a 2.1% loss at $96.36 per barrel. Meanwhile, natural gas prices pushed up
to $2.56 per MMBtu for a 2.4% gain. Natural gas prices experienced some
volatility in the minutes that immediately followed the latest weekly inventory
report, which showed a draw of 132 bcf when a draw of 130 bcf had been
expected.
Precious metals had a
lackluster morning, but managed to stage a strong climb. The effort resulted in
a 1.0% gain for gold, which settled pit trade at $1754.50 per ounce. Silver
scored a 2.7% gain by settling at $34.15 per ounce.
Advancing Sectors: Energy +0.5%, Financials +0.5%, Consumer
Staples +0.3%, Tech +0.3%, Telecom +0.1%
Declining Sectors: Industrials -0.1%, Consumer Discretionary
-0.1%, Utilities -0.3%, Health Care -0.4%, Materials -0.5% DJ30 -11.05 NASDAQ
+11.41 NQ100 +0.3% R2K +0.4% SP400 +0.1% SP500 +1.45 NASDAQ Adv/Vol/Dec
1525/1.90 bln/990 NYSE Adv/Vol/Dec 1695/810 mln/1289