YAHOO [BRIEFING.COM]: Stocks
spent most of the session plodding along the neutral line until a
late lift helped them settle with solid gains. However, the late climb
couldn't quite build enough momentum to make a move past key resistance levels.
Moderate weakness at the open
led to a lower start, but the broader market was able to attract support as the
1115 line held for the S&P 500. The 1115 line not only marks the stock
market's 200-day moving average, but it is also the dividing point between
year-to-date gains and losses.
Technical support helped
participants shrug off a disappointing September Empire Manufacturing Index,
which slipped to 4.1 from 7.1. It had been expected that it would come in at
6.4.
Import prices heated up in
August with a 0.6% monthly increase. They had increased just 0.1% in the prior
month.
Industrial production
increased 0.2% in August, but the consensus called for a slightly stronger hike
of 0.3% after a 0.6% increase in the prior month. Capacity utilization in
August was 74.7%, not too different than the 75.0% that was widely forecasted.
Market participants were
hardly surprised by the decision of Japan's government to curtail the yen's
strength by intervening in currency markets since there had been plenty
speculation about such a measure in recent weeks. Still, Japan's Nikkei Index
spiked more than 2% overnight as exporters found favor amid a 3% drop in the
yen. Though Japan's currency remains near its 15-year high, a cheaper yen makes
U.S. exports more expensive to Japan.
Stocks spent latter part of
the morning and most of the afternoon confined to a relatively narrow range.
There was no headline or clear catalyst responsible for the bounce, but stocks
broke free in the final hour to finish near session highs. However, the S&P
500 could not attract enough support to take it back to the prior session's
high, which are in line with the top of the summer trading range and the
"flash crash" close.
Participation was unimpressive
once again as trading volume on the NYSE failed to break above 1 billion
shares.
Despite the apparent lack of
conviction, the only thing investors care about at the end of the day is
whether their holdings advanced. That said, health care stocks had the best
performance. The sector swung to a 0.8% gain. Savient Pharmaceuticals (SVNT
19.98, +5.22) was a standout after the FDA approved a gout drug from the firm.
Tech stocks were relatively
strong for the second straight session, though their collective 0.6% gain came
without help from semiconductor stocks (-0.3%).
Financials (+0.4%) had a
relatively quiet session as bank stocks were mixed following their pullback in
the prior session. However, MasterCard (MA 210.18, +10.43)
outperformed after it announced the approval of a $1.0 billion share repurchase
plan and stated it expects earnings per share to achieve a compound annual
growth rate of 20% or more until fiscal 2013.
Energy stocks lagged for the
entire session, but the sector managed to limit its loss to 0.2%. A 1.0%
decline in oil prices to $76.02 per barrel weighed on the sector. Oil prices
had been down more than 2% ahead of an in-line inventory report, though.
The CRB Commodity Index shed
0.4% this session. Lower oil prices were mostly responsible for that loss.
Oil futures prices fell 1.0%
to $76.02 per barrel. They had been down more than 2% at their session low,
which preceded the midmorning release of weekly inventory data. The data showed
a draw of 2.49 million barrels, which is essentially what had been expected.
In contrast, natural gas
attracted support. Contracts for the commodity closed pit trade with a 0.9%
gain at $4.00 per MMBtu.
In the precious metals space,
gold prices gave up 0.2% to settle at $1268.70 per ounce, while silver extended
its climb another 0.7% to $20.57 per ounce. Silver was as high as $20.65 per
ounce, which marked a new 30-month high for the metal.
Advancing Sectors: Health Care (+0.8%), Consumer Staples
(+0.7%), Tech (+0.6%), Telecom (+0.5%), Financials (+0.4%), Consumer
Discretionary (+0.2%), Industrials (+0.1%)
Declining Sectors: Utilities (-0.5%), Energy (-0.2%),
Materials (-0.1%)DJ30 +46.24 NASDAQ +11.55 NQ100 +0.6% R2K +0.5% SP400 +0.4%
SP500 +3.97 NASDAQ Adv/Vol/Dec 1480/2.08 bln/1109 NYSE Adv/Vol/Dec 1591/900
mln/1406