YAHOO [BRIEFING.COM]: A retreat by the euro to a near two-year low
caused stocks to surrender gains, but the major equity averages were able to
find support and tick higher into afternoon trade.
The major equity averages were bid up more than 1% this morning as
momentum built amid speculation that plans for new spending in China were a
sign of the country’s plans for further stimulus. Comments that political
leaders in
What was a narrow loss for the euro in the early going grew to
something more sizable by midsession. The currency’s drop to $1.250, its lowest
level in almost two years, came shortly after analysts at Egan Jones announced
they had downgraded the debt rating of
The euro’s retreat prompted market participants to pare their
positions in stocks, forcing all three major equity averages to hand over about
half of their gains before stabilizing. The broad market became range bound for
the next few hours, but managed to gradually reclaim gains into the close. The
euro was also able to lift off of its session low into the close.
Materials stocks were the strongest performers throughout the
session. The sector settled the session with a 1.7% gain. It was up about 2% at
its best level of the day. Steel stocks were among the sector's strongest
performers.
Energy stocks were also strong in the early going, but the sector
had a harder time of retracing its pullback. In turn, Energy settled with a
gain of 1.3%. Meanwhile, crude oil settled with a 0.1% loss at $90.75 per
barrel after it had been up more than 1% at its pit session high of $92.25 per
barrel in morning action.
Tech, the largest sector by market weight, provided steady broad
market support. The sector also settled shy of its session high, but still
booked a 1.4% gain. The highly influential Financial sector finished with a
similar gain.
There wasn’t a single sector that suffered a loss, but
defensive-oriented Utilities slipped into negative territory on a few
occasions. Despite that, the sector managed to muster a 0.4% gain. Fellow
defensive issues also lagged.
Economic data were largely inconsequential today. Although, many
were surprised to see the Consumer Confidence Index for May fall to 64.9 from a
downwardly revised 68.7 in the prior reading since just last week the
University of Michigan had posted the strongest Consumer Sentiment Survey in
four years.
The economic calendar will remain light ahead of the second reading
on first quarter GDP on Thursday and the official monthly payrolls report on
Friday.
Crude oil traded up to its pit session high of $92.25 per barrel in
morning action, but tumbled into negative territory in response to a
bounce by the dollar. The energy component fell as low as $90.25 per
barrel before it recovered slightly to close 0.1% lower at $90.75 per barrel.
Natural gas spent its entire floor session in the red. It traded near
$2.59 per MMBtu for most of pit trade, but extended losses into the close,
settling at its session low of $2.48 per MMBtu for a 5.3% loss.
Gold began pit trade in positive territory and climbed up to its
session high of $82.40 per ounce in morning action. However, a pop by the
greenback also pressured the yellow metal, leaving gold to give up all of its
gain and slide as low as $1545.70 per ounce. It settled the session with a 1.3%
loss at $1548.90 per ounce. Silver touched a pit session high of $28.67 per
ounce before it lost steam and plunged into the red to touch a session low of
$27.71 per ounce. Silver closed just above that level at $27.75 per ounce
for a 2.4% loss.
Advancing Sectors:
Health Care +0.4%, Utilities +0.4%, Consumer Staples +0.6%, Telecom +0.8%,
Industrials +1.2%, Energy +1.3%, Consumer Discretionary +1.3%, Financials
+1.4%, Tech +1.4%, Materials +1.7%
Declining Sectors: None
Dow +1.0%, S&P 500 +1.1%, Nasdaq +1.2%, Nasdaq 100 +1.3%, S&P 400
+1.3%, Russell 2000 +1.4%DJ30 +125.86 NASDAQ +33.46 NQ100 +1.3% R2K +1.4% SP400
+1.3% SP500 +14.60 NASDAQ Adv/Vol/Dec 1755/1.64 bln/757 NYSE Adv/Vol/Dec 2391/708
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