YAHOO [BRIEFING.COM]: Stocks
attempted to stage another gain in the latest round of trade, but some late
selling pressure left the major indices to finish in mixed fashion.
Cautious trade in the early
going left stocks to start the session in the red. Participants were generally
uninspired by Advance Retail Sales for August. The report indicated that retail
sales in August increased 0.4%, which is slightly stronger than the 0.3%
increase that had been expected, on average, among economists surveyed by
Briefing.com. Excluding autos, August sales increased 0.6%, which is double the
0.3% increase that had been widely expected. Enthusiasm over August sales was
partly tempered by downward revisions to sales for the prior month.
In other data, business
inventories for July increased 1.0%, which is more than the 0.7% increase that
had been widely expected. The greater-than-expected increase in business
inventories ought to bode well for third quarter GDP.
Stocks overcame initial
weakness to stage a steady climb, but the advance failed to take the S&P
500 through 1128, which marks the "flash crash" close and the top of
the summer trading range. The major averages lacked direction after being
rebuffed by the resistance line.
Shares of retailers still
fared well, though. As a group they settled with a 1.2% gain. Best Buy
(BBY 36.73, +2.08) was a primary leader in the group after it posted
better-than-expected earnings and an increased profit outlook. The stock made
its biggest bounce by percent in four months to book a two-month closing high.
Tech stocks were strong, too,
although their gains were more than halved to 0.5%. Cisco
(CSCO 21.46, +0.20) was a leader in the bunch after hinting at a potential
dividend in 2011 during a presentation today.
JPMorgan (JPM 40.72, -0.40) resumed the discussion
on its dividend during a conference as well by saying that it plans to restore
its dividend payout ratio to a range of 30% to 40%. That did little to get bank
stocks out of their funk, though some banks briefly benefited from news that
embattled SunTrust Bank (STI 25.91, +0.60) believes it will
post a third quarter profit, rather than log a loss as many have forecasted.
Trading volume on the NYSE
failed to break 1 billion shares for the eighth straight session. Participation
could pick up as monthly options come closer to their expiration at the end of
the week.
Gold prices under the
continuous contract set a new all-time high of $1274.60 per ounce, well above
the previous all time high of $1266.50 per ounce. Silver prices continued their
ascent as well. Specifically, the December contract for the precious metal hit
$20.55 per ounce.
Meanwhile, the greenback
dropped sharply against competing currencies. Specifically, the euro rallied
0.9% against the dollar and the yen climbed 0.7% and, in doing so, booked a
fresh 15-year high against the dollar.
Though stocks settled with
mixed results and volatility was muted, Treasuries caught a strong bid this
session. In turn, the yield on the benchmark 10-year Note pulled back below
3.70% after it broke above its 50-day moving average in the prior session.
The real story today in the
commodities sector was the new all-time highs set in the continuous gold
contract, which traded to $1274.60, well above the previous all time high of
$1266.50. Dec gold futures finished higher by 2.2% to $1271.70 per ounce while
Dec silver settled up 1.6% to $20.43 per ounce. The precious metals rallied on
the back of a substantially weaker dollar. Note that today's highs in silver
futures represent a fresh ~2.5 year high.
It was a much quieter session
for the energy commodities. Oct crude oil finished lower by 0.5% to $76.80 per
barrel, after it was unable to maintain early gains. Oct natural gas closed up
0.5% to $3.96 per MMBtu. Natural gas futures did trade back above the $4 level
for the first time in ~3 weeks, but was unable to close above that level.
Advancing Sectors: Tech (+0.5%), Health Care (+0.4%),
Telecom (+0.1%), Consumer Staples (+0.1%), Consumer Discretionary (+0.1%)
Declining Sectors: Financials (-1.0%), Industrials (-0.3%),
Energy (-0.3%), Utilities (-0.2%), Materials (-0.1%)DJ30 -17.64 NASDAQ +4.06
NQ100 +0.4% R2K -0.5% SP400 +0.1% SP500 -0.80 NASDAQ Adv/Vol/Dec 1108/2.10
bln/1486 NYSE Adv/Vol/Dec 1369/922 mln/1581