YAHOO [BRIEFING.COM] : For the
third straight session the stock market rode a modest gain into the close. The
moves may not have been exciting to watch, but they've put the broad market on
pace for its sixth straight weekly gain and at its best level in seven months.
Trade this week has kept a
consistent pattern: stocks run into some morning selling pressure, but
gradually work their way higher. In the first session of the week stocks
finished flat, but in the past three they have managed modest gains.
In each of the past two
sessions tech stocks have provided support. The largest sector by market weight
advanced 0.7% yesterday and another 1.0% in the latest round of action. The
sector's latest effort was led by the likes of Akamai Tech
(AKAM 38.06, +3.62) and Visa (V 112.42, +4.07). Each posted an
upside earnings surprise for the latest quarter. Cisco (CSCO
20.00, -0.43) also posted better-than-expected bottom-line results, but the
stock still ran into selling pressure.
Shares of Whole Foods (WFMI
82.02, +4.09) won over market participants with its latest quarterly report.
The stock helped lead the consumer staples sector to a 0.5% gain. In contrast, PepsiCo
(PEP 64.27, -2.47) dropped sharply following its upside earnings surprise.
The positive correlation
between stock prices and the euro has lessened in recent days. As such, the
major averages moved little in response to the euro's 0.4% climb to a near
two-month high of $1.33. However, the euro remains sensitive to headlines
regarding a forthcoming austerity plan from Greece's politicians -- to little
surprise the story was the topic of rumors again today.
Market participants were also
unsurprised by the decision of the European Central Bank to keep its target
lending rate at 1.00%, but some were pleased to learn that the ECB expanded
collateral guidelines. Meanwhile, the Bank of England kept its target rate at
0.5%, but expanded its lending program by 50 billion to 225 billion pounds.
China attracted some attention
for its latest inflationary reading, which showed that consumer prices there
experienced a 4.5% increase in January. That proved to be hotter than many had
anticipated.
Domestic data featured the
latest initial weekly jobless claims tally, which totaled 358,000. Economists
polled by Briefing.com had, on average, called for an initial claims count
closer to 370,000.
Wholesale inventories showed a
1.0% increase during December, but that number was given very little attention
by market participants.
Treasuries attracted buyers
after a weak start, which actually sent the yield on the benchmark 10-year Note
to a 10-day high. By session's end the Note's yield eased back below 2.05%. In play
were results from an auction of 30-year Bonds that featured strong dollar
demand of $39.5 billion, a bid-to-cover of 2.47, and an indirect bidder rate of
29.2%. For comparison, an average of the past six auctions results in dollar
demand of $36.7 billion, a bid-to-cover of 2.65, and an indirect bidder
participation rate of 28.8%.
The CRB Index settled today's
trade with a modest gain of 0.2%. It will enter Friday on pace for a 0.4%
weekly gain.
Oil performed well today. The
primary energy component scored a 1.2% gain by settling pit trade at $99.84 per
barrel. Meanwhile, natural gas prices experienced plenty of volatility, but
ultimately the commodity scored a 1.6% gain by settling at $2.48 per MMBtu.
Prices had been as high as $2.59 per MMBtu and near $2.40 per MMBtu at its
session low. Weekly inventory data showed a draw of 78 bcf, which is less than
the draw of 90 bcf that had been broadly expected.
Precious metals maintained
strong gains throughout the session. Gold contracts settled with the yellow
metal priced at $1741.20 per ounce for a 0.6% gain. Silver settled with a 0.7%
gain at $34.01 per ounce.
Advancing Sectors: Tech +1.0%, Consumer Staples +0.5%,
Consumer Discretionary +0.2%, Materials +0.1%, Industrials +0.1%
Declining Sectors: Telecom -0.1%, Energy -0.1%, Utilities
-0.2%, Financials -0.4%, Health Care -0.4% DJ30 +6.51 NASDAQ +11.37 NQ100 +0.7%
R2K -0.4% SP400 +0.2% SP500 +1.99 NASDAQ Adv/Vol/Dec 1134/2.14 bln/1405 NYSE
Adv/Vol/Dec 1522/759 mln/1482