YAHOO [BRIEFING.COM]: Surprisingly
strong domestic manufacturing data helped drive the stock market to its fifth
straight gain. That helped the stock market lock in its best weekly performance
in about two years.
Recent PMI manufacturing
numbers from Europe and China either underwhelmed or disappointed, but the June
ISM Manufacturing Index impressed. It came in at 55.3, despite calls from
economists polled by Briefing.com for the number to fall to 51.1 from the 53.5
that was posted in the prior month.
Stocks responded immediately
to the stronger-than-expected ISM reading. News that the final Consumer
Sentiment Survey for June from the University of Michigan eased down to 71.5
from the 71.8 that was posted in the preliminary report received little
attention. A 0.6% decline in construction spending during May was ignored, even
though the consensus had called for no change.
Although participants showed
favor for a broad range of stocks, consumer discretionary issues were among the
top performers. As a group, they advanced 2.0%. Darden Restaurants (DRI
52.79, +3.03) was a leader in the space after the company posted in-line
earnings and hiked its dividend 34% to $0.43 per share. Apollo Group (APOL
46.46, +2.78) also provided a push following news of its upside earnings
surprise.
The combination of concerted
buying and thin volume helped take eight of the 10 sectors to gains of nearly
1% or more. Materials stocks and consumer staples stocks made up the only major
sectors that failed to advance more than 1%. Still, their respective gains of
0.9% and 0.8% remain impressive.
Although a strong ISM number
helped drive today's advance, the move really marked a continuation of an
upward climb that began early this week. Buyers began to step back in only
after stocks had logged seven weekly losses in two months -- the one weekly
gain was only an incremental move higher. Amid increasingly attractive stock
prices, traders and investors showed more willingness to re-enter the market.
Confidence was also restored amid Greece's efforts to restore its financial
health by passing new austerity measures and voting to implement the plan.
The improved tone of trade
culminated in a weekly gain of 5.6% for the S&P 500. Stocks haven't put
together a performance like that since July 2009.
Weakness in the commodity
complex led to a 0.3% decline by the CRB Commodity Complex. For the week, the
CRB fell 1.8%.
Oil prices pared losses seen
in early pit trade to log a 0.7% loss at $94.79 per barrel, but the energy
component finished the week 4% higher than where it began.
Natural gas prices fell 1.4%
to $4.34 per MMBtu. The commodity was under pressure all session, but it was
able to advance almost 3% for the week.
Precious metals also performed
poorly today. Specifically, gold prices dropped 1.3% to $1483.80 per ounce
while silver sank 3.2% to $33.72 per ounce. For the week, though, gold prices
fell 1.1% while silver prices shed 2.8%.
Advancing Sectors: Consumer Discretionary (+2.0%),
Industrials (+1.7%), Tech (+1.7%), Financials (+1.7%), Telecom (+1.3%), Health
Care (+1.3%), Utilities (+1.2%), Energy (+1.0%), Materials (+0.9%), Consumer
Staples (+0.8%)
Declining Sectors: (None)DJ30 +168.43 NASDAQ +42.51 NQ100
+1.6% R2K +1.5% SP400 +1.7% SP500 +19.03 NASDAQ Adv/Vol/Dec 1910/1.68 bln/671
NYSE Adv/Vol/Dec 2497/863 mln/527