YAHOO [BRIEFING.COM]: Broad-based
buying on the back of better-than-expected earnings took both the Dow and
S&P 500 to their best level in almost three years. The Nasdaq actually
extended its three-year high.
Although there is some
uncertainty about what might be said in tomorrow's FOMC policy statement,
market participants were in the mood to buy today. In turn, stocks were up more
than 1% at session highs and advancing share volume was more than double
declining share volume. Overall trading volume, about 900 million shares on the
NYSE, still wasn't very impressive, though.
Buying interest was generally
broad, but industrial stocks put together some of the best gains. The sector's
1.8% surge was led by Illinois Tool Works (ITW 57.73, +3.32),
which posted an upside earnings surprise then complemented the report by
issuing a strong revenue forecast. The stock surged to a new three-year high in
response. In a similar vein, 3M (MMM 95.94, +1.82) shares
recorded a new all-time high following its quarterly results and increased forecast.
Strong guidance, the
implementation of a $0.25 cash dividend, and the designation of $1 billion for
share repurchases made Humana (HUM 76.69, +4.01) a top
performer. Its leadership spread to other managed care providers and propped up
the overall health care sector, which achieved a 1.1% gain.
UPS (UPS 74.30, +0.66) benefited from a nice
bid on the back of its latest quarterly report and forecast. Ford (F
15.66, +0.12) also found favor following its latest quarterly announcement.
Ford's Japanese competitors Honda (HMC 37.61, -0.22), Toyota
(TM 78.66, -0.85), and Nissan (NSANY 18.76, +0.31)
received less favorable treatement amid news that their rating outlooks were
lowered by analysts at S&P due to the impact of the massive earthquakes in
Japan last month.
Airline stocks were some of
today's top performers. Higher oil prices have weighed on the space in recent
weeks, but the space ascended sharply with news that earnings from both Delta
Air Lines (DAL 9.99, +0.99) and US Airways (LCC 8.80,
+0.52) exceeded what had been expected on Wall Street.
Not every quarterly
announcement was treated positively. Blue chip IBM (IBM
168.49, +0.82) mustered a modest gain, but actually lagged the overall market
after it announced a 15% hike to its dividend and the designation of $8 billion
for share repurchases. Fellow Dow component Coca-Cola (KO
66.93, -0.81) fell after its earnings came short of the consensus estimate.
Netflix (NFLX 228.91, -22.76) dropped
precipitously in high volume to probe monthly lows as participants shunned the
stock because of its disappointing forecast, which overshadowed an upside
earnings surprise. Under Armour (UA 69.64, -8.83) also took a
dramatic dive, even though the company reported richer-than-expected earnings
and issued strong sales guidance.
Treasuries attracted buying
interest in the face of the stock market's strength and a relatively
unimpressive auction of 2-year Notes. The auction drew a bid-to-cover of 3.06,
dollar demand of $107.1 billion, and an indirect bidder participation rate of
37.9%.
As for the dollar, it
continues to descend against a basket of major foreign currencies. In turn, it
logged a new 52-week low and was quoted with a 0.3% loss at the close of
today's trade.
Commodities failed to benefit
from the dollar's downturn. More specifically, oil prices settled with a 0.1%
loss at $112.11 per barrel. Gold prices closed with a fractional loss at
$1501.40 per ounce and silver settled with a 0.8% loss at $44.70 per ounce.
Commodities had a lackluster
session today. As such, oil prices spent the day near the neutral line before
they settled with a 0.1% loss at $112.11 per barrel. Natural gas prices spent
most of the session in the red, but successfully staged a late recovery that
gave it a flat finish at $4.39 per MMBtu.
Precious metals were unable to
reclaim the gains that they forfeited in the prior session. In turn, gold
prices closed with a fractional loss at $1501.40 per ounce. Meanwhile, silver
settled with a 0.8% loss at $44.70 per ounce.
Commodities failed to benefit
from the greenback's ongoing struggle. The dollar set a new 52-week low against
a basket of major foreign currencies today; it was last quoted with a 0.3%
loss.
Advancing Sectors: Industrials (+1.8%), Telecom (+1.5%),
Energy (+1.2%), Health Care (+1.1%), Materials (+1.0%), Utilities (+0.9%), Tech
(+0.8%), Financials (+0.6%), Consumer Staples (+0.6%), Consumer Discretionary
(+0.3%)
Declining Sectors: (None)DJ30 +115.49 NASDAQ +21.66 NQ100
+0.5% R2K +1.0% SP400 +1.0% SP500 +11.99 NASDAQ Adv/Vol/Dec 1648/2.06 bln/941
NYSE Adv/Vol/Dec 2188/906 mln/837