YAHOO [BRIEFING.COM]: A strong, steady ascent gave the stock market another big gain. In turn, the S&P 500 has advanced more than 7% in just five sessions.

The stock market's upward momentum in recent days has been helped along by improved sentiment in Europe, where the major bourses have been fighting to overcome concerns about fiscal and financial instability among countries in the region's periphery. That said, reports of consolidation in Greece's banking industry were widely regarded as a step toward stabilizing the country's banking system, so most of Europe's major bourses bounced by more than 2%.

Strength abroad made it easier for the stock market to resume the upward climb that it began last week, when the S&P 500 finished in positive territory in four out of five sessions for a cumulative gain of almost 5% -- its first weekly advance in five weeks.

The most recent effort favored financials the most; they swung to a gain of more than 4%. Insurers were among the sector's top performers as traders regarded Hurricane Irene's damage to the Northeast as less severe than what had been feared potential. Banks were back in favor as they resumed their rally from the beat downs that were repeatedly suffered in recent weeks.

Although they weren't the day's top performers, pharmaceutical plays Pfizer (PFE 18.88, +0.67) and Bristol Myers Squibb (BMY 29.29, +0.57) staged impressive gains following positive results from a joint Phase III drug trial.

With stocks looking so strong and participants showing an increased tolerance for risk, small-cap stocks swung sharply higher. Collectively, small-cap stocks advanced almost 5%, as measured by the Russell 2000.

An increased preference for risk put pressure on safe havens like gold. Gold prices had started pit trade with a gain of more than 1%, but reversed course to close with a 0.3% loss at $1791.60 per ounce.

Treasuries were also pressured, but the benchmark 10-year Note managed to limit its loss. As a result, its yield remains below 2.30%.

Economic data neither added to nor detracted from the market's upward momentum. According to the latest numbers, personal income increased in July by 0.3%, which is slightly less than the 0.4% increase that had been broadly expected. However, spending spiked 0.8%, which bested the 0.5% increase that had been anticipated. Separately, pending home sales fell in June by 1.3%, which is slightly less than the 1.4% decline that had been generally expected.

The rally in equities, coupled with better-than-expected economic data helped Oct crude oil settle higher by 2.2% to $87.27 per barrel today. Crude oil's initial move higher came at the beginning of pit trade as it rallied roughly $1.50 off of overnight levels. Futures remained range-bound for the rest of the session, trading in a ~50 cent range. Sept natural gas futures shed 2.9% to close at $3.83 per MMBtu after Hurricane Irene's impact on the East Coast was far less destructive than originally thought.

Precious metals were weighed on by the rally in equities today, which signaled that the risk switch was switched back on -at least mometarily. Both metals sold off sharply following the open of equities, with gold future shedding approximately 40 points, while silver futures dropped around 70 cents. Dec gold finished lower by 0.3% to $1791.60 per ounce, while Sept silver shed 0.9% to finish at $40.55 per ounce.

Advancing Sectors: Financials +4.2%, Industrials +3.2%, Materials +3.0%, Tech 2.8%, Consumer Discretionary +2.9%, Energy +2.9%, Health Care +2.6%, Utilities +1.9%, Consumer Staples +1.8%, Telecom +1.2%
Declining Sectors: (None)DJ30 +254.71 NASDAQ +82.26 NQ100 +2.9% R2K +4.8% SP400 +3.9% SP500 +33.28 NASDAQ Adv/Vol/Dec 2267/1.62 bln/342 NYSE Adv/Vol/Dec 2820/912 mln/271