YAHOO [BRIEFING.COM]: Stocks
surrendered some of their gains, but the broad market still settled in higher
ground for the sixth time in seven sessions.
Another round of broad-based
buying took stocks to their highest level in a dozen days. The ascent has come
in the face of political and social instability in the Middle East and North
Africa, not to mention Japan's radiation risk two weeks after massive
earthquakes damaged nuclear facilities.
As a group, energy stocks
staged some of the strongest gains today. The sector's 0.9% gain was led by the
likes of Newfield Exploration (NFX 75.68, +2.91) and Valero
Energy (VLO 29.93, +1.14). Schlumberger (SLB 86.89,
-1.21) was one of only a few names in the sector that failed to put together a
gain.
Tech had initially displayed
leadership following an upside earnings surprise and strong forecast from Oracle
(ORCL 32.64, +0.50), but a loss of support in afternoon trade left the
sector to finish with a gain of less than 0.2%. That caused the tech-rich
Nasdaq Composite to drift to a rather lackluster finish after it been up about
1% at its session high. Research In Motion (RIMM 56.89, -7.20)
was a primary source of weakness; its dramatic drop stemmed from disappointment
over the firm's forecast and a subsequent downgrade by analysts at Deutsche
Bank.
The only data of consequence
today was the third estimate for fourth quarter GDP, which was revised upward
to reflect growth of 3.1%. The consensus among economists polled by Briefing.com
had called for a 2.9% increase.
That news came before
Philadelphia Fed President Plosser acknowledged that an improving economy needs
for a strategy to normalize monetary policy. Plosser expressed favor for a
strategy that involves raising rates and shrinking the balance sheet
concurrently and tying the pace of asset sales to the pace and size of interest
rate increases. Although economists continue to believe that any such move is
unlikely in the near term, the statement was a more direct indication that the
Fed is thinking about the day when it will need to act.
A late run up made natural gas one of today's top performing
commodities. The energy component settled pit trade with a 3.6% gain at almost
$4.40 per MMBtu.
Oil had a relatively quiet
session. Prices settled just 0.2% lower at $105.39 per barrel.
As for precious metals, gold
prices closed with a 0.6% loss at $1426.30 per ounce and silver settled at
$37.18 per ounce with a 0.5% loss. Both encountered selling pressure after
Philadelphia Fed President Plosser stated his proposal for normalizing monetary
policy.
Advancing Sectors: Energy (+0.9%), Telecom (+0.8%),
Materials (+0.5%), Industrials (+0.3%), Health Care (+0.3), Consumer
Discretionary (+0.2%), Tech (+0.2%), Financial (+0.2%)
Unchanged: Utilities, Consumer Staples
Declining Sectors: (None)DJ30 +50.03 NASDAQ +6.64 NQ100 +0.2%
R2K +0.8% SP400 +0.8% SP500 +4.14 NASDAQ Adv/Vol/Dec 1512/1.86 bln/1092 NYSE
Adv/Vol/Dec 1969/823 mln/1015