YAHOO [BRIEFING.COM]: An
improved tone abroad brought buyers back into the fold today. Support was
unwavering.
News that a German court
rejected a lawsuit to prevent Germany from participating in European Union
bailouts helped several of Europe's bourses rally between 3% and 4% after they
had suffered a series of steep losses that left them deep in bear market
territory. The notion that Germany, Europe's most robust and diverse economy,
is still at the lending table also triggered support for the euro, which worked
its way to $1.410 for a 0.7% gain against the greenback.
Renewed confidence in Europe
compelled domestic participants to switch on the risk trade after they had sent
the stock market lower in three straight sessions for a cumulative loss of more
than 4%. The S&P 500 bounced back by staging a steady advance to settle at
its session high with a gain of almost 3%. Small-caps and mid-caps staged more
stronger performances.
Financials collectively spiked
almost 5%. They were the best performing sector this session, but only after
they had underperformed in each of the past three trading days, during which
time the sector surrendered about 8% of its market value.
Bank of America (BAC 7.48, +0.49) was a top performer in
the sector after it announced plans to streamline its management and create a
co-chief operating officer role.
Yahoo! (YHOO 13.61, +0.70) also announced
changes to its management. The company's CFO will take over the role of CEO.
That announcement, along with broad market support, made YHOO one of the better
performing names of the day.
Fellow Nasdaq component NVIDIA
(NVDA 14.25, +1.07) staged an even more impressive move. The stock's
move toward its monthly high came in the wake of a pleasing revenue forecast
for fiscal 2013.
A sharp rally in global equity
indices pressured precious metals today, with Dec gold shedding 2.9% to close
at $1817.60 per ounce, while Dec silver lost 0.6% to end at $41.63 per ounce.
With investors returning, at least momentarily, to equities gold futures traded
in close to a 100 point range from its electronic highs ($1883.20) to its
intraday lows ($1793.80). Silver futures traded to their lowest levels in
intraday trade but managed to rally of those lows to recoup a majority of
losses.
The strength in equities
supported the rally in Oct crude oil, which settled higher by 3.9% to $89.34
per barrel -its largest percentage gain in a month. Adding additional support
was a new weather system developing out in the Bay of Campeche in Mexico.
Futures traded to their best levels since the beginning of the month after
notching highs at $89.79 in late morning trade. Oct natural gas, which finished
near unchanged at $3.94 per MMBtu, also rallied on reports of the storm.
However, heading into the close of pit trade futures gave back those gains to
finish near flat on the day.
Advancing Sectors: Financials +4.8%, Energy +3.7%,
Industrials +3.1%, Tech +2.7%, Materials +2.7%, Consumer Discretionary +2.6%,
Health Care +2.4%, Consumer Staples +1.6%, Telecom +1.2%, Utilities +1.0%
Declining Sectors: (None)DJ30 +275.56 NASDAQ +75.11 NQ100
+2.6% R2K +4.2% SP400 +3.8% SP500 +33.38 NASDAQ Adv/Vol/Dec 2207/1.78 bln/391
NYSE Adv/Vol/Dec 2738/954 mln/315