YAHOO [BRIEFING.COM]: A
drastically improved tone among participants caused stocks to climb quickly and
sharply early on, but the S&P 500 spent the rest of the session trending
alongside its 50-day moving average.
Strong overseas gains and
pleasing data from abroad inspired buyers to return to the fold after an
extended absence in recent weeks. Their bids even persisted in the face of the
August ADP Employment Change report, which indicated that private payrolls fell
by 10,000 last month, when an increase of 13,000 had been widely expected.
Stocks extended their advance
with help from the August ISM Manufacturing Index, which came in at 56.3. Its
increase from 55.5 from July flew in the face of calls for a decline to 52.9.
While this session's surge was
underpinned by an improved mood among market participants, short covering
augmented the move as many scrambled to cover bets they had made against the
market ahead of the official nonfarm payrolls report on Friday. That report
will likely play a pivotal part in this week's remaining sessions, given that
it offers insight into the health of U.S. companies and it carries implications
for the broader economy. Concerns about the pace and sustainability of the
economic recovery have led to cautious trade in recent sessions.
Still, it was a bullish sign
that more than 98% of the names in the S&P 500 staged gains. Some of the
biggest moves were made by financials and industrial stocks. Coming off of
monthly losses of approximately 7% and 8%, respectively, both sectors climbed
3.9%.
Despite such strength, the
S&P 500 could not push past its 50-day moving average, which is in the 1080
zone. Still, the broad market measure made its best gain in nearly two months.
That gain and those booked by overseas markets helped the Dow Jones World Index
spike 2.7% in its best single-session move in three months.
With participants showing a
willingness to hold riskier issues, the dollar dropped to a 0.9% loss, its
worst single-session slide in a month. Treasuries also toppled to drive yields
markedly higher. Meanwhile, the CRB Commodity Index rallied to a 1.6% gain, its
best single-session move in more than a month, most of which was owed to a
spike in oil prices.
Oil prices spiked 2.8% to
$73.91 per barrel. The energy component had been as high as $74.48 per barrel.
Precious metals failed to find
sustainable support this session. As such, gold prices climbed to a new
two-month high of about $1255.30 per ounce, but inevitably slipped to a 0.2%
loss at $1248.10 per ounce. In similar fashion, silver prices climbed to about
$19.50 per ounce, a three-month high, before slipping to $19.39 per ounce to
log a 0.2% loss.
The CRB Commodity Index
rallied to a 1.6% gain, its best single-session move in more than a month. Most
of that move was owed to a spike in oil prices.
Oil prices spiked 2.8% to
$73.91 per barrel. The energy component had been as high as $74.48 per barrel.
Natural gas prices resumed
their slide with a 1.6% drop to $3.76 per MMBtu. Prior to back-to-back gains on
Monday and Tuesday, prices for the energy component fell for seven straight
sessions to take contract prices to 11-month lows near $3.60 per MMBtu.
Precious metals failed to find
sustainable support this session. As such, gold prices climbed to a new
two-month high of about $1255.30 per ounce, but inevitably slipped to a 0.2%
loss at $1248.10 per ounce. In similar fashion, silver prices climbed to about
$19.50 per ounce, a three-month high, before slipping to $19.39 per ounce to
log a 0.2% loss.
Advancing Sectors: Industrials (+3.9%), Financials (+3.9%),
Energy (+3.6%), Consumer Discretionary (+3.4%), Materials (+2.9%), Tech
(+2.7%), Health Care (+2.3%), Utilities (+2.2%), Consumer Staples (+1.7%),
Telecom (+1.6%)
Declining Sectors: (None)DJ30 +254.75 NASDAQ +62.81 NQ100
+3.0% R2K +3.8% SP400 +3.4% SP500 +30.96 NASDAQ Adv/Vol/Dec 2186/2.16 bln/475
NYSE Adv/Vol/Dec 2649/1.19 bln/422