YAHOO [BRIEFING.COM]: The
major equity averages were up more than 1% this morning, but some afternoon
selling caused the market to wobble. Still, stocks managed to hold on for
varied gains.
An improved mood among
investors in both Europe and at home has perpetuated further buying interest
during recent sessions. That carried over into trade this morning, such that
buyers barely reacted to the August ADP Employment Change, which indicated that
private payrolls increased by 91,000 when the consensus among economists polled
by Briefing.com had called for an increase of 100,000.
In contrast to the prior
session, financials provided leadership to the broad market, but the sector's
strength wasn't enough to carry stocks through resistance around the 50%
retracement of the market's July-August trading range. Stocks gradually
descended from there, but buyers resurfaced once stocks slipped into the red.
Their efforts were challenged in the final few minutes, but the market managed
to hold on for a gain.
Late support helped the stock
market lock in its fourth straight gain, or seventh advance in eight sessions.
During those eight sessions the S&P 500 has climbed about 8.5%. Despite
such a feat, the S&P 500 actually ended August 5.7% lower. The stock market
hasn't had such a poor monthly performance since it fell 8.2% in May 2010.
For the month, financials and
energy stocks were the worst performers. Both sectors ended August about 10%
below their beginning levels. Utilities were actually the best performers of
August. They managed to advance 1.7% as a group. Their strength was largely due
to the preference of participants for steady businesses and relatively rich
dividend yields amid all of the volatility in the first half of the month.
Telecom plays had also traded
with strength in the face of volatility, but still ended the month with a 1.4%
loss. Part of that is due to a 1.6% drop today. AT&T (T
28.48, -1.14) weighed on the space following word that the Justice Department
is challenging the company's acquisition of T-Mobile.
It was a very uneventful
session for Dec gold, which settled slightly lower at $1831.70 per ounce, and
Sept silver, which gained 0.4% to finish at $41.77 per ounce, as both metals
chopped around the flat line. The metals did manage to rally off the flat line
to put in highs intraday, at $1842.70 and $42.09 respectively, but were unable
to hold on to most of those gains after pulling back toward the flat line
heading into the close. Trade tomorrow could be muted as well as the markets
await Friday's jobs data.
Similar to trade in gold and
silver, crude oil settled near unchanged at $88.81 per ounce. This morning's
inventory data showed a larger than expected build in crude inventories and a
larger than expected draw down in gasoline inventories and that caused for
little reaction in futures, which closed just above unchanged. Oct natural gas
rallied 3.7% to settle at $4.05 per MMBtu. Natural gas turned its attention to
tropical storm Katia, currently out in the Atlantic. The NHC updated its
forecast today, which said Katia is likely to become a hurricane later today.
Futures put in highs at $4.07 in morning trade, their best levels since Aug 12,
and spent the remainder of the day chopping around just shy of those levels.
Advancing Sectors: Financials +1.2%, Utilities +0.7%,
Energy +0.7%, Industrials +0.7%, Health Care +0.7%, Consumer Discretionary
+0.6%, Materials +0.3%, Consumer Staples +0.3%, Tech +0.1%
Declining Sectors: Telecom -1.6%DJ30 +53.58 NASDAQ +3.35 NQ100
+0.2% R2K -0.2% SP400 +0.3% SP500 +5.97 NASDAQ Adv/Vol/Dec 1277/1.99 bln/1284
NYSE Adv/Vol/Dec 1971/1.27 bln/1066