YAHOO [BRIEFING.COM]: Stocks
overcame intraday resistance to settle at session highs for another big gain.
The stock market has now scored three strong gains in just as many days.
Financials fueled today's
rally, but only after the sector overcame early selling pressure. Following a
relatively lackluster performance in the prior session, financials faltered
this morning, falling to a loss well in excess of 1%. But bank stocks brought
the sector back from the red. Bank of America (BAC 6.28,
+0.51), one of the most actively traded names by share volume, rallied nearly
9% to its weekly high. It drove the KBW Bank Index to a 4.5% gain and led the
financial sector to a 3.2% gain.
Consumer discretionary stocks
also scored strong gains, finishing 2.2% for the better. Retailers were in
focus amid a relatively mixed round of same-store sales reports for September. J.C.
Penney (JCP 28.42, +0.78) managed to stage a strong gain, even though
the company cut its earnings forecast.
While financials drove most of
the action for the day, it was a broad push into the close that helped the
S&P 500 overcome resistance at the 1160 line, which had rebuffed the broad
market measure several times throughout the trading session. Stocks didn't
breach the line until the final 30 minutes of action.
Strength among stocks put
pressure on Treasuries. The corresponding rise in yields took that of the
10-year Note back to 2.00%.
The dollar dove to a loss of
about 0.6% against a basket of major foreign currencies. Its tumble came after
the euro rallied out of the red to end the day with a 0.6% gain at $1.344. The
sterling pound slashed a loss of more than 1% to settle at $1.544 for a loss of
only 0.2%. The pound's initial punishment came in response to a decision by the
Bank of England (BoE) to increase its asset purchase plan by 75 billion to 275
billion pounds. The BoE kept its benchmark interest rate at 0.50%, though. The
European Central Bank (ECB) kept its target at 1.50%, which surprised many
since some sort of accommodative measure had become widely expected among
market pundits.
Data had little impact on
today's trade. The only item on the docket was the latest weekly initial
jobless claims count, which increased by 6,000 week-over-week to 401,000. It
barely differed from the Briefing.com consensus call for 402,000 initial
claims.
Tomorrow brings the always
pivotal official non-farm payrolls report. Participants were given a glimpse of
the September number by a better-than-expected ADP Employment Change earlier
this week, although the ADP is not always statistically identical. No matter
the number, though, the reaction to the report should be telling of market
sentiment, especially since stocks have rallied 6% during the course of the
past three sessions.
Crude oil futures extended
their rally to a second consecutive session after posting a gain of 3.7% to
close at $82.59 per barrel. Over the past two sessions futures have now gained
9%, and have recouped close to all of their losses from the recent three session
pullback. Strength in equities helped crude oil futures trade to the upside
today. Natural gas ended higher by 1% at $3.60 per MMBtu. Futures sold off
following this morning's inventory data, which more-or-less came in line with
expectations, but managed to rally off of lows to finish the day in positive
territory.
Following the volatile trade
in gold this morning, it was a relatively quiet session for the precious metal.
Futures chopped around the flat line for a majority of the day but managed to
push into positive territory heading into the close of pit trade to post gains
of 0.7% at $1653.20 per ounce. Silver futures, which gained 5% to close at $32
per ounce, traded steadily higher throughout the session to close near highs.
Advancing Sectors: Financials +3.2%, Materials +2.5%,
Consumer Discretionary +2.2%, Industrials +2.2%, Tech +1.7%, Energy +1.6%, Utilities
+1.6%, Health Care +1.1%, Consumer Staples +1.0%, Telecom +0.6%
Declining Sectors: (None)DJ30 +183.38 NASDAQ +46.31 NQ100
+1.6% R2K +2.4% SP400 +2.5% SP500 +20.93 NASDAQ Adv/Vol/Dec 1934/2.25 bln/596
NYSE Adv/Vol/Dec 2592/1.12 bln/461