YAHOO [BRIEFING.COM]: Stocks
slipped to modest losses in the early going, but the gradual accumulation of
buying interest helped stocks work their way to strong gains. Although the
S&P 500 still couldn't push past the 1300 line, the advance offset losses dealt
during the prior session.
Morning participants opted to
put pressure on stocks. Early efforts were generally broad based, but
financials were hit the hardest after the Fed refused a proposal by Bank
of America (BAC 13.65, -0.23) to distribute capital to shareholders in
the second half of 2011. That headline completely overshadowed an upside
earnings surprise and dividend hike from Discover Financial (DFS
23.44, +1.19).
Financials were down more than
1% at their morning low, but slashed that in afternoon trade. The sector
settled with a relatively tame loss of 0.3% as materials stocks helped lead
buyers back into the market.
Materials stocks were only
down slightly in early trade, but swung to a 1.4% gain with help from metals
and mining issues, namely Freeport McMoRan (FCX 54.94, +2.66)
and Newmont Mining (NEM 54.83, +1.66). DuPont (DD
53.46, -0.21) was one of the few materials sector members that failed to move
higher.
Despite the sector's overall
strength, it lacks the weight necessary to take the S&P 500 above the 1300
line, which has represented a formidable point of resistance for the past
couple of sessions. The S&P 500 had hugged the 1300 line during the last
hour of trade, but pulled back a couple of points in the final few minutes. The
late slip coincided with headlines that indicated Portugal's Parliament
rejected government austerity measures.
In terms of individual
performances, Jabil Circuit (JBL 20.99, +2.06) was one of
today's top performers. The stock posted its strongest percentage gain in
months on high share volume following an upside earnings surprise and upside
guidance.
Cree (CREE 42.90, -6.10) was pummeled after the
company cut its forecast. A disappointing outlook from Adobe Systems (ADBE
31.68, -1.20) brought about a strong push against its shares.
Economic data was limited to
new home sales figures for February. They fell 17% month-over-month to an
annualized rate of 250,000, which is a record low and considerably less than
Briefing.com consensus for 288,000. The SPDR S&P Homebuilders ETF (XHB
18.01, +0.12) managed to shake off the news and stage a strong gain.
Tomorrow's economic calendar
features weekly jobless claims and the latest durable goods orders data.
Tomorrow also brings the latest weekly natural gas inventory report and results
from an auction of 10-year TIPS.
Commodities ended mixed on the session, with precious metals
(+1.7%), energy (+0.6%), and industrials (+0.1%) all posting gains, while
grains (-1%), softs (-0.9%) and livestock (-0.7%)all posted losses.
May crude oil rallied for 0.7%
to close at $105.75 per barrel. Today's closing price marks crude oil's best in
~2.5 yrs. Continued uncertainty about how the situation in Libya will play out,
coupled with heightened tensions in other parts of the country -including in
Gaza, supported prices in crude. April natural gas rallied for 1.9% to end at
$4.41 per MMBtu.
Global unrest, including
recent attacks in Israel, sent the precious metals higher in a flight to
safety. April gold rallied for 0.7% to finish at $1438.00 per ounce, while May
silver surged 2.5% to end at $37.19 per ounce. Silver traded to a fresh ~30 yr
high at $37.29, while gold put in highs at $1441.20, about 4 points shy of its
all time.
Advancing Sectors: Materials (+1.4%), Consumer
Discretionary (+0.8%), Tech (+0.6%), Industrials (+0.4%), Consumer Staples
(+0.3%), Telecom (+0.2%), Energy (+0.2%)
Unchanged: Utilities
Declining Sectors: Health Care (-0.1%), Financials (-0.3%)
DJ30 +67.39 NASDAQ +14.43 NQ100 +0.6% R2K +0.3% SP400 -0.1% SP500 +3.77 NASDAQ
Adv/Vol/Dec 1386/1.76 bln/1216 NYSE Adv/Vol/Dec 1624/868 mln/1334