YAHOO [BRIEFING.COM]: Despite
a lack of leadership amid choppy action, stocks still scored varied gains on
Friday. That gave the stock market its first back-to-back advance in three
weeks.
After the prior session's
surge, which was the stock market's second best single-session surge since
March 2009, broad market stock futures traded with moderate gains. Big gains by
Europe's bourses provided a positive backdrop. Strength there came amid news
that France, Spain, Italy, and Belgium all announced short-selling bans
intended to calm volatility there. Word also circulated that leaders of France
and Germany will meet next week, presumably to discuss the eurozone's tenuous
fiscal and financial conditions.
Early buyers were emboldened
by news that both total retail sales and sales less autos increased by 0.5%
during July. The consensus among economists polled by Briefing.com had called
for increases of 0.5% and 0.2%, respectively. June numbers were revised upward
to reflect respective increases of 0.3% and 0.2%.
The stock market's early
advance had cold water thrown on it by the preliminary Consumer Sentiment
Survey for August from the University of Michigan. On average, economists
polled by Briefing.com had expected the Survey to come in at 62.5, but instead it
dropped to 54.9, which is its worst level since 1980.
Disappointment over the Survey
dashed all of the stock market's early gain, which stood at more than 1%, but
the broad market gradually worked its way higher. The effort came without help
from the financial sector, which had been a steady broad market driver during
each of the past four sessions. Instead, lingering uncertainty about the
fundamental health of financials and their exposure to potentially problematic
markets left the sector to log a 1.2% loss, which made them the worst
performing group of the day. Utilities and telecom, both defensive in nature,
were the only other two sectors that suffered losses; both fell 0.6%.
The other sectors settled with
varied gains. Industrials were the best performers. As a group, industrials
advanced 1.8%. Their relative strength helped the Dow outperform its
counterparts. Although they outperformed, industrials weren't really leaders,
given their lack of broad market weight. So, even though the tone of trade was
mostly positive today, listlessness made for choppy movement.
Sharp losses during the last
few weeks dragged down the S&P 500's 50-day moving average, causing it to
close below the stock market's 200-day moving average to effectively form what
is known among traders as a Death Cross. Despite its ominous sound, since 1970
the stock market has typically stabilized and trended higher following the
formation of the Death Cross.
Many investors are certainly
wondering if such a point of stabilization has been formed now that stocks have
finally booked back-to-back gains for the first time in three weeks -- three
weeks that resulted in sequential weekly losses of 3.9%, 7.2%, and 1.7%.
That said, there was still a
strong appetite for Treasuries. In turn, the benchmark 10-year Note climbed
nearly one full point, which took its yield a hair below 2.25%.
Commodities had a rather
unexciting session. As such, the CRB Commodity Index settled with a fractional
gain.
Among the more widely watched
commodities, silver was one of the biggest movers. It swung to $39.08 per ounce
for a 1.0% gain. Gold prices fell 0.5% to $1743.20 per ounce. The decline
marked gold's second straight loss after it had advanced for four straight
sessions.
Oil prices eased down 0.2% to
close the week at $85.24 per barrel. Natural gas finished flat at $4.06 per
MMbtu.
Advancing Sectors: Industrials +1.8%, Consumer
Discretionary +1.2%, Consumer Staples +1.0%, Health Care +0.8%, Energy +0.7%,
Tech +0.6%, Materials +0.6% Declining Sectors: Utilities
-0.6%, Telecom -0.6%, Financials -1.2%DJ30 +125.71 NASDAQ +15.30 NQ100 +0.7%
R2K +0.2% SP400 +0.5% SP500 +6.17 NASDAQ Adv/Vol/Dec 1344/2.23 bln/1247 NYSE
Adv/Vol/Dec 1954/1.26 bln/1103