YAHOO [BRIEFING.COM]: For the
second straight session broad-based buying on light share volume took stocks
sharply higher. Greece's vote on new austerity measures remains on the horizon,
however.
Word that Germany backs
France's proposal to involve the private sector in Greece's efforts to restore
its finances turned the tepid tone of premarket trade into something decidedly
more optimistic. Participants' positive response was attributable to the
appearance of a unified front in attacking the problems plaguing fiscally
woeful Greece. In turn, traders were more dismissive of the uncertainty
regarding Greece's vote on a set of austerity measures established by country
officials, the EU, and the IMF.
Once trade opened, stocks set
out on a steady ascent that took the three major equity averages to gains in
excess of 1%. A 2.7% aggregate gain made energy stocks the biggest drivers of
the advance. However, Nike (NKE 89.90, +8.28) surged 10% to book one of the best
percentage gains for an individual issue following its upside earnings
surprise.
Financials failed to find any
meaningful support. The sector settled with a gain of just 0.4%. What's more,
that modest move came after the sector had spent some time in negative
territory.
Commodities were a bit more
volatile today as participants eyed tomorrow's austerity vote in Greece...
August crude oil rallied for 2.5%, its largest single day move in over a month,
to close at $92.89 per barrel. Crude pushed higher heading into the close to
put in highs at $92.96. Weakness in the dollar helped crude oil stem its three
session sell-off. August natural gas rallied for 2.1% to end at $4.35 per
MMBtu.
August gold ended higher by
0.3% to $1500.60 per ounce, while July silver closed up 0.2% to $33.66 per
ounce. Gold futures traded to their best levels, at $1507.00, in midmorning
trade, but spent the remainder of the session pulling back from those highs to
end with only modest gains. Silver saw a similar move as gold, in morning
trade, but was unable to take out its overnight highs at $34.13. It too spent
the remainder of the session retracing that spike to finish just above
unchanged.
Participation was paltry once
again. In turn, share volume dwindled, which made it easier for stocks to score
outsized gains. Thin trading volume is expected to be an ongoing theme this
week, given that many traders are taking vacation ahead of the holiday weekend.