YAHOO [BRIEFING.COM]: Stocks
fought off moderate selling pressure in the early going to work their way
toward new two-year highs. Buying was further bolstered by news that Egypt's
president gave into calls for his resignation.
A buy-the-dip response helped
stocks rally from a sell-off in the prior session. A positive bias came through
again this morning as stocks quickly overcame a lower open to push into
positive territory. The move gained momentum as Egyptian President Mubarak
finally submitted to demands for his resignation, although it is still unclear
how order and leadership in the country will be restored.
While stocks showed a positive
reaction to the news, oil prices were pushed to a 1.4% loss at $85.55 per
barrel. Many believe Mubarak's resignation will pacify protesters in Egypt and
help mitigate risk of broader geopolitical uncertainty in the Middle East and
near the Suez Canal.
The tumble in oil prices
undermined interest in the energy sector, which fell to a fractional loss.
Utilities (-0.2%) made up the only other sector that settled in the red.
Financials outperformed by a
wide margin. The sector advanced 1.4% with help from bank stocks, which
collectively climbed 1.8%, according to the KBW Bank Index.
Large-cap tech also showed
leadership. That helped the Nasdaq close near its session high. Microsoft
(MSFT 27.25, -0.25) was a laggard, however, following news that the
company has formed a business partnership with Nokia (NOK
9.36, -1.52).
Corporate announcements also
included in-line earnings from Dow component Kraft (KFT 30.66,
-0.45) and an upside surprise from Chipotle (CMG 268.73,
+12.10). Other earnings reports received less attention from broad market
participants.
The dollar added to its prior
session bounce today. In the process it set a three-week high against competing
currencies. Although it finished shy of its session high, the greenback's 0.2%
gain helped to give the Dollar Index a 0.5% weekly gain.
Data had little sway with
participants. The December trade deficit totaled $40.6 billion, which is
essentially on par with the $40.4 billion deficit that had been estimated by
economists who were surveyed by Briefing.com. However, the December deficit is
greater than the $38.3 billion deficit reported for the prior month.
The preliminary consumer
sentiment reading for February from the University of Michigan came in at 75.1,
which isn't quite as strong as the 75.5 that had been widely expected. However,
it is stronger than the 74.2 that was registered for the prior month.
Sellers put the pressure on
commodities this afternoon. Their efforts led the CRB Commodity Index to a 0.6%
loss.
Oil prices were a particularly
heavy drag on the commodities space. The energy component settled with a 1.4%
loss at $85.55 per barrel. Its push lower primarily came in response to news
that Mubarak has resigned his position as the country's president, an event
that many believe will pacify protesters in Egypt and help mitigate against the
risk of broader geopolitical uncertainty in the Middle East and near the Suez
Canal.
Natural gas prices were hit
even harder. Futures contract prices fell 1.9% to $3.91 per MMbtu.
Precious metals failed to go
unscathed, even though the dollar handed back some of its gain in afternoon
trade. Gold prices finished with a 0.4% loss at $1357.20 per ounce while silver
prices settled 0.1% lower at $30.50 per ounce.
Advancing Sectors: Financial (+1.4%), Consumer
Discretionary (+1.0%), Industrial (+0.7%), Telecom (0.7%), Materials (+0.5%),
Consumer Staples (+0.5%), Tech (+0.3%), Health Care (+0.1%)
Unchanged: Energy
Declining Sectors: Utilities (-0.2%)DJ30 +43.97 NASDAQ +18.99
NQ100 +0.6% R2K +1.2% SP400 +1.0% SP500 +7.28 NASDAQ Adv/Vol/Dec 1775/2.07
bln/841 NYSE Adv/Vol/Dec 2233/995 mln/754