YAHOO [BRIEFING.COM]: A big
rebound by bank stocks on the back of an upbeat report from Citigroup helped
drive the broader market markedly higher Monday.
Citigroup (C 4.17, +0.22) not only posted
bigger-than-expected bottom line results, but also reported reduced credit
provisions. That, along with a good conference call, helped overshadow a light
revenue figure. The stock rallied for its best single-session percentage gain
since a 7% surge in April on the strongest volume of any other stock in the
S&P 500.
Strength in C helped drive
buying among bank stocks, such that the KBW Bank Index bounced to a 3.0% gain
after it booked a 4.5% loss last week.
Strength among bank stocks
boosted the broader financial sector to a 2.3% gain, which was the best gain of
any major sector.
Energy stocks handed back some
of their gains just ahead of the close as Halliburton
(HAL 34.09, -1.73) was hammered amid disappointment over its third quarter
earnings report. However, BP (BP 41.49, +0.87) provided
leadership amid news that it has agreed to sell its upstream businesses and
associated interests in Venezuela and Vietnam to TNK-BP for $1.8
billion. A 2.3% spike in crude oil prices, which settled a bit above
$83.00 per barrel, also helped the sector. Energy stocks collectively advanced
0.8%.
While the broader market was
able to book a strong gain and settle near its session high, retailers failed
to rally. They settled the day with a collective loss of 0.5% as JC
Penney (JCP 33.30, -0.57) dropped in response to a short-term
stockholder rights plan that is likely intended to fight off institutional
control.
Semiconductor stocks also
slumped in the face of broader market strength. They shed 0.7% on the session,
and hampered the Nasdaq in the process.
Treasuries also put in a
strong session, but they pulled back a bit into the close. Still, the benchmark
10-year Note settled about 15 ticks higher with its yield quoted at 2.51%.
The dollar had less of an
impact on trade than it has had in recent weeks. It was up 0.8% at its
overnight high, but finished with a 0.1% loss. The reversal was never met with
much of a response by market participants.
Data also had a little role in
this session's trade. Participants were generally unmoved in news that
September industrial production unexpectedly fell 0.2% and capacity utilization
remained just shy of 75%. Separately, net Long-term Treasury International
Capital Flow for August doubled month-over-month to $128.7 billion.
Trading volume was
unimpressive again as fewer than 1 billion shares were exchanged on the NYSE.
That comes after Friday's total hit 1.42 billion shares, the second highest sum
since mid-July.
Energy was the leading sector
for commodities today, after it rallied for 1.3%. Nov crude oil finished higher
by 2.3% to $83.08 per barrel. An ongoing strike at French refineries, coupled
with a pullback in the dollar index, helped prices move higher. Nov natural gas
shed 1.4% to end at $3.43 per MMBtu as forecasts for mild temps, coupled with
bearish fundamentals, weighed on prices. Natural gas traded to a fresh 13 month
low at $3.42 per MMBtu.
A pullback in the dollar index
helped precious metals recoup overnight losses. Dec gold finished just
fractionally higher at $1372.10 per ounce, while Dec silver closed up 0.8% to
$24.41 per ounce.
Advancing Sectors: Financials (+2.3%), Health Care (+0.9%),
Utilities (+0.9%), Energy (+0.8%), Telecom (+0.7%), Tech (+0.5%), Consumer
Staples (+0.3%), Materials (+0.3%), Industrials (+0.1%)
Declining Sectors: Consumer Discretionary (-0.2%)DJ30 +80.91
NASDAQ +11.89 NQ100 +0.3% R2K +1.0% SP400 +0.6% SP500 +8.52 NASDAQ Adv/Vol/Dec
1727/1.74 bln/893 NYSE Adv/Vol/Dec 1995/995 mln/1021