YAHOO [BRIEFING.COM]: Resource-related
stocks helped the broad market fight off early selling to stage its first gain
in four sessions.
Losses in the previous three
sessions and renewed weakness among the major markets abroad weighed on the
early tone of trade. The latest durable goods orders data didn't help.
During April durable goods
orders dropped 3.6% and orders less transportation fell 1.5%. Economists polled
by Briefing.com had, on average, called for a 2.0% decline in overall orders
and a 0.6% increase in orders less transportation, but the worse than expected
results were met with only a mildly negative response since the sharp declines
were largely attributable to a spike in orders during the prior month. During
March overall orders climbed 4.4% while orders less transportation increased
2.5%.
Corporate news flow picked up
a bit from the anemic pace of the past few sessions, but it failed to offer
much encouragement to buyers. Announcements from retailers Express (EXPR
20.12, -2.75), American Eagle (AEO 13.02, -0.64), and Collective
Brands (PSS 15.31, -3.06) featured either disappointing quarterly
results or downside guidance.
Dow component Cisco (CSCO
16.19, -0.08) tempered its guidance in a quarterly filing. The stock extended
its multi-month descent to its lowest level since the stock market was struck
with fear of a global economic and financial system meltdown more than two
years ago.
Despite such headwinds in the
early going, the major equity averages were able to attract enough support to
find higher ground. Small-cap stocks staged one of the sharpest climbs. They
were able to overcome a slight loss in the early going and settle with a gain
of more than 1%.
Within the broad market,
natural resource plays provided the most leadership while many of the other
sectors traded listlessly. Favor for the space helped energy stocks and
materials stocks advance 1.5% and 1.4%, respectively.
Higher commodity prices helped
resource-related issues. Oil prices were especially strong; they rallied from
an opening loss on the order of about 1% to a 1.7% gain well above $101 per
barrel in the face of bearish weekly inventory data. Silver prices staged one
of the best moves with its near 4% rally to $37.56 per ounce.
The dollar did little today.
It had been higher overnight against other currencies, but was backed down to
the flat line during the day. It was largely held in check by Britain's
sterling pound, which climbed 0.6% to $1.627 following the United Kingdom's
final first quarter GDP reading, which indicated that its economy expanded by
0.5%, as had been reported in the preliminary reading.
July crude oil rallied for
1.7% to settle at $101.32 per barrel, through the top end of its recent range.
Despite this morning's inventory data, which showed a modest build vs
expectations for a draw down, an unexpected draw down in distillates helped
futures trade to their best levels in 2 weeks. It was an uneventful session for
June natural gas, which finished up 0.7% to $4.38 per MMBtu.
July silver extended its rally
to a second session, finishing higher by 3.9% to $37.56 per ounce. It has now
gained over $2.50 in the past two sessions and is trading back at levels seen
in mid-May. June gold ended up 0.2% to close at $1526.40 per ounce. After
trading to its best levels since early May, at $1532.50, it sold off back
toward the flat line to finish with modest gains.
Advancing Sectors: Energy (+1.5%), Materials (+1.4%),
Industrials (+0.8%), Tech (+0.5%), Health Care (+0.1%), Financials (+0.1%)
Unchanged: Consumer Discretionary
Declining Sectors: Utilities (-0.3%), Consumer Staples
(-0.7%), Telecom (-0.7%)DJ30 +38.45 NASDAQ +15.22 NQ100 +0.3% R2K +1.3% SP400
+0.7% SP500 +4.19 NASDAQ Adv/Vol/Dec 1713/1.90 bln/876 NYSE Adv/Vol/Dec
1961/963 mln/1031