YAHOO [BRIEFING.COM]: Despite
an early slide, stocks were able to settle with solid, broad gains Tuesday.
The major averages opened with
narrow gains after a member of the Bank of England made the case for further
monetary stimulus. The comments, along with speculation that European central
banks will purchase troubled debt, helped relieve worries about sovereign debt.
However, sellers were quick to
step into the action. Their efforts intensified with the September Consumer
Confidence Index, which made a surprise drop to a seven-month low of 48.5.
The stock market attracted
support as it came within close contact of its summer trading range top.
Technical support provided a floor from which stocks could rebound, but a lack
of actual leadership left stocks to spend most of the afternoon hugging the
neutral line until a late spurt of buying helped stocks finish near their
session highs.
Thanks to better-than-expected
earnings, Walgreen (WAG 33.81, +3.46) was the best performer
of the day. Its spike made for its best single-session performance in more than
a year.
In contrast, Monsanto
(MON 48.75, -4.32) was the worst performer of the day. Its dive came amid
cautious comments about the company's seeds products and some negative numbers
from an Australian agricultural chemical company. The stock weighed on the
broader materials sector, which had lagged for most of the session and only
mustered a fractional gain in the moments ahead of the close.
Though the broader market's
overall gain was a bit restricted, advancing issues outnumbered decliners by
4-to-1. More upbeat were small-cap stocks, which helped the Russell 2000
advance 1.1%.
Treasuries had a strong
session as the 30-year Bond climbed a full point, the 10-year Note tacked on 16
ticks, and the 5-year Note gained about eight ticks. Results from the latest
5-year Note auction drew a bid-to-cover ratio of 2.96, dollar demand of $103.6
billion, and an indirect bidder participation rate of 50.1%. Though the latest
auction saw slightly better demand than the sale did in August, dollar demand
still was not that strong since it was the third lowest of the last twelve
auctions.
The dollar dropped to a new
seven-month low as the euro rallied 1.0% against the greenback. From its
session low to its session high the euro swung 1.6% to end the day near $1.36.
The grains sector was the
largest decliner in commodities today. It shed 2.4%. That selloff was led by a
3.1% drop in December wheat futures, which settled at $6.85 per bushel.
December corn shed 2.5% to end at $5.00 per bushel.
Weakness in the dollar helped
precious metals finish in positive territory. December gold gained 0.8% to
settle at $1308.60 per ounce. It was another record day for the continuous
gold contract, which set a fresh all time high at $1309.80 per ounce. December silver
rallied from a marked loss to a 1.3% gain to end at $21.73 per ounce. The
continuous silver contract traded to a fresh 30-year high at $21.65 per ounce.
As for energy, November crude
oil settled higher by 0.4% to $76.18 per barrel, while November natural gas
gained 1.2% to $3.95 per MMBtu.
Advancing Sectors: Health Care (+0.9%), Consumer Staples
(+0.8%), Consumer Discretionary (+0.8%), Energy (+0.8%), Industrials (+0.5%),
Financials (+0.3%), Utilities (+0.2%), Tech (+0.1%), Telecom (+0.1%)
Declining Sectors: (None)
Unchanged: MaterialsDJ30 +46.10 NASDAQ +9.82 NQ100 +0.1% R2K
+1.1% SP400 +0.8% SP500 +5.54 NASDAQ Adv/Vol/Dec 1760/2.14 bln/853 NYSE
Adv/Vol/Dec 2114/1.03 bln/870