YAHOO [BRIEFING.COM]: Stocks
started the second quarter on a strong note as the Dow set a new bull market
high on the back of a better-than-expected jobs report. Some late selling
interest ate into gains, though.
Uncertainty ahead of the
monthly payrolls report kept stocks stuck in a narrow trading range during the
prior session, but the mood among traders improved markedly today. Initial
buying interest was underpinned by strong gains among many of the major equity
averages abroad, but the positive tone was further solidified by an encouraging
payrolls report.
According to the latest data,
nonfarm payrolls increased by 216,000 in March. Private payrolls increased by
230,000. The consensus call among economists polled by Briefing.com had called
for respective increases of 185,000 and 203,000. The greater-than-expected
increases helped the headline unemployment rate improve to 8.8% from 8.9% in
the face of calls for it to remain unchanged.
The jobs report overshadowed
the rest of today's data, which featured a March ISM Index reading of 61.2 and
a 1.4% drop in construction spending for February. The ISM was in step with the
61.4 that had been broadly expected, but construction spending was widely
anticipated to fall only 0.7%.
Participants responded to the
jobs report with a steady, broad-based bid that took the S&P 500 to within
a few points of its 52-week high. Meanwhile, the Dow climbed to its best level
since June 2008.
However, stocks struggled to
hold those levels in the face of a late flurry selling, which actually took the
Nasdaq to the neutral line. The Nasdaq's late slip came as participants
pressured semiconductor issues. Although renewed interest among buyers helped
the tech-rich Nasdaq reclaim some of its gain, semiconductor stocks still
settled with a 1.0% loss.
Financials offered leadership
after they had lagged during the first part of the week. The sector's 0.8% gain
was led by NYSE Euronext (NYX 39.60, +4.43) following news
that Nasdaq OMX (NDAQ 28.23, +2.39) and IntercontinentalExchange
(ICE 119.75, -3.79) offered to pay $42.50 per share in cash and stock to
acquire the company. Deutsche Boerse already made a bid for the company, but
the rival offer represents a premium of about 19% over the initial tender.
The financial sector's
strength comes after it ended the first quarter with a gain of little more than
3%. That pales considerable to the 16% first quarter gain scored by the energy
sector, which advanced a less impressive 0.4% this session. Energy's first
quarter run was mostly helped by the rapid rise in oil prices, which actually
extended their climb today by setting a new two-year high above $108 per
barrel.
Trade in commodities was largely based on movement in the
dollar, following this morning's NFP number. The dollar index sold off
throughout the session to give back gains. Commodities finished mixed on the
session, but the grains (+1.4%) sector was once again the leading sector. May
corn rallied for 6.1%, following yesterday's 4.5% rally, helped by strength in
crude and margin concerns.
May crude oil gained 1.1% to close at $107.94 per barrel. It
traded to a fresh ~2.5 yr high, at $108.05, heading into the close of pit
trade. May natural gas ended lower by 0.8% to $4.35 per MMBtu.
The pullback in the dollar index helped gold and silver
recoup some of their losses. Both metals did finish in negative territory
despite their bounce. June gold shed 0.7% to $1428.10 per ounce, while May
silver closed down 0.4% to $37.73 per ounce.
Advancing Sectors: Industrials (+0.9%), Financials (+0.8%),
Consumer Discretionary (+0.7%), Utilities (+0.7%), Health Care (+0.6%),
Consumer Staples (+0.6%), Energy (+0.4%), Materials (+0.3%)
Declining Sectors: Tech (-0.1%), Telecom (-0.1%)DJ30 +56.99
NASDAQ +8.53 NQ100 +0.2% R2K +0.4% SP400 +0.8% SP500 +6.58 NASDAQ Adv/Vol/Dec
1452/2.12 bln/1149 NYSE Adv/Vol/Dec 2079/910 mln/923