YAHOO [BRIEFING.COM]: A bevy
of data brought buyers back into the stock market today. Their support spurred
the broad market to its best single-session percentage gain in almost two
months.
A positive backdrop to early
trade was established by solid gains abroad, which followed a flurry of
economic numbers, including the latest price indices from China. Neither
China's PPI nor CPI for May came with any negative surprise. They increased
6.8% and 5.5%, respectively. An increase of 50 basis points to the country's
reserve requirement ratio was no surprise. Meanwhile, Japan's central bank
announced a new lending facility intended to stimulate growth; the target
interest rate remains at just 0.1%. Japan also posted strong monthly industrial
production.
The positive tone of morning
trade was further bolstered by domestic data, which featured a 0.2% increase in
both overall producer prices and core producer prices for May. The consensus
had called for such increases.
Retail sales for May proved
more resilient than anticipated. Even though overall sales slipped 0.2%, that
was softer than the 0.7% slide that had been expected among economists polled
by Briefing.com. Excluding autos, retail sales actually increased by 0.3%,
which is greater than the 0.2% increase that had been forecasted.
Corporate news flow continues
to be limited, but Best Buy (BBY 30.13, +1.31) posted an
upside earnings surprise, which complemented the retail sales report. Consumer
discretionary stocks scored a collective gain of 1.7%.
Energy stocks outperformed for
most of the session. They settled with a 2.0% gain. Other cyclical plays
weren't far behind; materials stocks and industrial stocks scored gains of 1.9%
and 1.8%, respectively.
Riskier issues were also
fashionable. That helped both the S&P 400 and the Russell 2000 advance
almost 2%. Still, financials found it difficult to match the broader market's
rally. The sector settled with a gain of 0.5%, which is less than half of what
the S&P 500 achieved.
Fed Chairman Bernanke noted in
a speech today that the failure to raise the debt ceiling in a timely matter
could result in severe market disruptions, but that was taken in stride by
stocks.
Stocks petered out a portion
of their gains inside the final hour of the session, but the downward drift was
modest relative to overall advance, which helped more than 90% of the stocks in
the S&P 500 score gains.
Treasuries were never able to
recover from selling pressure and concluded the day's trade near session lows.
That left the benchmark 10-year Note to log a loss of almost a full point,
which took its yield back up to 3.10% for a 10-day high.
August gold finished higher by
0.6% to $1524.40 per ounce, while July silver ended up 1.9% to $35.42 per
ounce. Both metals traded higher today on a weaker dollar as well as concerns
about inflation. In electronic trade, both metals extended their respective
rallies as they traded to fresh highs.
July crude oil rallied for
2.1% to close at $99.37 per barrel, ending the session just shy of its highs at
$99.44 per barrel. Better-than-expected econ data in the US, as well as China,
helped crude oil trade back to near the $100 level. July natural gas finished
lower by 1.4% to $4.58 per MMBtu, extending its pullback to a second
consecutive session.
Advancing Sectors: Energy (+2.0%), Materials (+1.9%),
Industrials (+1.8%), Consumer Discretionary (+1.7%), Tech (+1.3%), Consumer
Staples (+1.0%), Health Care (+0.9%), Telecom (+0.6%), Financials (+0.5%),
Utilities (+0.4%)
Declining Sectors: (None)DJ30 +123.14 NASDAQ +39.03 NQ100
+1.3% R2K +1.8% SP400 +1.8% SP500 +16.04 NASDAQ Adv/Vol/Dec 2035/1.72 bln/593
NYSE Adv/Vol/Dec 2543/915 mln/513