YAHOO [BRIEFING.COM]: Equities spent the bulk of today's session in negative territory before afternoon buying lifted the major averages out of the red. As a result, the S&P 500 settled higher by 0.6%.

Although stocks finished with gains, leadership was mixed, suggesting a certain level of indecision was present among market participants. Both consumer sectors ended ahead of the broader market with the defensively-oriented staples in the lead.

Staple stocks outperformed amid broad strength in beverage and tobacco producers. Coca-Cola (KO 40.86, +0.78) rose 2.0% and Philip Morris (PM 94.44, +1.72) advanced 1.9%.

Meanwhile, the growth-sensitive discretionary space outperformed on the back of homebuilders as the group rallied broadly. PulteGroup (PHM 19.73, +0.60) gained 3.1% while the broader SPDR S&P Homebuilders ETF (XHB 29.49, +0.58) added 2.0%.

Elsewhere in discretionary shares, quick-service restaurants ended on a mixed note. Yum! Brands (YUM 67.33, +0.36), who owns the KFC brand, was under early pressure amid concerns the Chinese bird flu outbreak will impact KFC sales. However, the stock was able to shake off the early weakness, and end higher by 0.5%.

In addition to consumer stocks, the Dow Jones Transportation Average outperformed, and settled with a gain of 0.9%. While most index components settled in the black, airlines displayed notable strength. Delta Air Lines (DAL 14.93, +0.54) and United Continental (UAL 30.05, +0.78) climbed 3.8% and 2.7%, respectively.

On the downside, the health care sector lagged after outperforming last week. BioCryst Pharmaceuticals (BCRX 1.92, +0.22) was an exception as the stock surged 12.9% after Chinese authorities approved the company's peramivir flu treatment in light of the recent bird flu outbreak.

In M&A news, Lufkin Industries (LUFK 87.96, +24.03) surged 37.6% after the company agreed to be acquired by General Electric (GE 23.12, +0.19) for $3.3 billion or $88.50 per share. The transaction price represents a 38% premium to Lufkin's Friday closing price.

Today's volume was well below average as less than 600 million shares changed hands on the floor of the New York Stock Exchange.

Reviewing the day's final sector performance, consumer staples (+1.1%), consumer discretionary (+1.1%), financials (+1.0%), and utilities (+0.8%) traded ahead of the broader market. Meanwhile, telecom (-0.5%), health care (+0.2%), and technology (+0.4%) lagged.

There was no notable economic data released today.

Tomorrow, February wholesale inventories will be reported at 10:00 ET.

The U.S. Treasury will auction off $32 billion in 3-yr notes.DJ30 +48.23 NASDAQ +18.39 SP500 +9.79 NASDAQ Adv/Vol/Dec 1463/1.28 bln/987 NYSE Adv/Vol/Dec 2069/582.8 mln/933

3:30 pm :

• May crude oil dipped into negative territory and to a session low of $92.46 per barrel in late morning action but quickly recovered into the black and trended higher for the remainder of pit trade. It booked a gain of 0.7% as it settled at $93.36 per barrel, slightly below its session high of $93.46 per barrel.
• May natural gas began pit trade in the black but lost momentum in mid-morning action. It pulled back from its session high of $4.18 per MMBtu and fell into negative territory. It brushed a session low of $4.05 per MMBtu and eventually settled with a 1.2% loss at $4.08 per MMBtu.
• June gold fell during today's floor trade as a stronger dollar index weighed on prices. The yellow metal dipped to a session low of $1566.60 per ounce in late morning action and settled with a 0.2% loss at $1572.60 per ounce.
• May silver also chopped around in negative territory for most of its session. It touched a session low of $27.07 per ounce and closed 0.2% lower at $27.16 per ounce.