YAHOO [BRIEFING.COM]: Performances
among the major equity averages varied today. Data were generally
disappointing.
Stocks traded near the neutral
line in the early going. The tepid tone came amid mixed action abroad and news
that the second estimate of first quarter GDP showed growth of 1.8%, which is
unchanged from the advance reading, but less than the 2.0% growth rate that had
been expected among economists surveyed by Briefing.com.
Initial jobless claims for the
week ended May 21 totaled 424,000. Not only is that up by 10,000 from the prior
week, but it exceeds the 400,000 initial claims that had been widely expected.
The dollar was down markedly
this morning, but that didn't seem to matter too much to traders in the wake of
the data. The greenback pared its loss as the session progressed, but it was
still down 0.5% against a basket of competing currencies at the close of trade.
After struggling to find
direction for the first couple of hours, stocks began a gradual climb higher. Microsoft
(MSFT 24.67, +0.48) and NetApp (NTAP 55.31, +3.58)
led the tech-rich Nasdaq. Shares of MSFT were helped by favorable comments
about the stock from hedge fund manager David Einhorn while NTAP was aided by a
satisfactory quarterly report.
The S&P 500 managed to
make a modest advance with help from consumer discretionary stocks (+0.8%) after
Tiffany & Co. (TIF 76.04, +6.00) and Guess? (GES
44.57, +4.47) reported impressive quarterly results. Other retailers shared in
their strength, such that the SPDR S&P Retail ETF (XRT
53.23, +0.87) ascended to a weekly high.
The Dow ended the day at the
unchanged mark. Despite strength in MSFT shares, other blue chips traded in
mixed fashion.
Small-cap stocks outperformed
again. For the second straight session their strength has sent the Russell 2000
to a gain in excess of 1%.
Share volume remains sluggish.
The anemic pace will most likely continue tomorrow since many traders will take
off early to get a jump on the long, Memorial Day weekend.
Treasuries attracted strong
support and closed near session highs. The climb sent the yield on the
benchmark 10-year Note down to 3.06%, which makes for a new 2011 low. Gains
were helped along in the wake of an auction of 7-year Notes that drew a
bid-to-cover of 3.20, dollar demand of $94.0 billion -- the highest since early
2010 -- and an indirect bidder participation rate of 47.6%.
July natural gas shed 1.3% to
close at $4.36 per MMBtu. This morning's inventory data, which showed a larger
than expected build, sent natural gas prices to session lows at $4.23. They
were able to rebound off those lows to close near levels seen heading into the
data. July crude oil settled lower by 1.1% to $100.23 per barrel.
Despite weakness in the
dollar, the precious metals finished lower on the day. June gold shed 0.3% to
close at $1522.40 per ounce, while July silver closed down 0.8% to $37.37 per
ounce.
Advancing Sectors: Consumer Discretionary (+0.8%), Tech
(+0.6%), Telecom (+0.6%), Energy (+0.5%), Financials (+0.5%), Industrials
(+0.4%), Materials (+0.2%), Consumer Staples (+0.2%)
Declining Sectors: Health Care (-0.1%), Utilities (-0.1%)DJ30
+8.10 NASDAQ +21.54 NQ100 +0.7% R2K +1.2% SP400 +0.9% SP500 +5.22 NASDAQ
Adv/Vol/Dec 1830/1.92 bln/712 NYSE Adv/Vol/Dec 2154/861 mln/846