YAHOO [BRIEFING.COM]: Strength
in the dollar overshadowed another batch of better-than-expected earnings this
morning. While that left stocks to start the session in the red, the broader
market was able to recover to the neutral line, where it was mired amid
resistance.
The dollar rebounded solidly
from its loss in the prior session, such that the Dollar Index settled 0.7%
higher today. That move came in the face of a stronger British pound, which was
helped by news that the United Kingdom's economic output for the third quarter
hit a stronger-than-expected clip of 0.8%. Moreover, Standard & Poor's
affirmed the UK's AAA credit rating.
With the dollar a primary
catalyst for trade, the broader market was uninspired by the latest round of
quarterly reports. The most recent lot included upside earnings surprises from Amgen
(AMGN 57.26, -0.69), Biogen Idec (BIIB 59.99, +0.09),
Bristol-Myers Squibb (BMY 26.86, -0.30), Johnson
Controls (JCI 34.49, -0.25), and Texas Instruments (TXN
28.88, -0.10). Coach (COH 49.78, +5.30), National-Oilwell
Varco (NOV 52.03, +4.06), and Ford Motor (F 14.36,
+0.21) each posted better-than-expected earnings, too, but their shares set
fresh 52-week highs.
IBM (IBM 140.67, +0.83) already reported its
results for the latest quarter, but managed to attract support with its
announcement that its board has authorized $10.0 billion for share repurchases.
Though moderate, a broadly
positive response followed the midmorning release of the Consumer Confidence
Index for October. It improved to 50.2 from 48.5, but had only been expected to
improve to 49.0, according to economists polled by Briefing.com.
Despite positive data and
generally upbeat corporate reports, the stock market never successfully staged
an advance. Sellers kept the S&P 500 out of positive territory by standing
ready at the neutral line.
Treasuries also had an
unimpressive session. The benchmark 10-year Note fell 21 ticks so that its
yield climbed to 2.64%. The 30-year Bond fell more than a full point so that
its yield returned to the 4.00% mark.
Similar to the prior session,
Treasuries extended their losses in the wake of the latest Note auction.
Today's auction featured $35 billion of 2-year Notes that drew a bid-to-cover
ratio of 3.43 on dollar demand of $120.1 billion and an indirect bidder
participation rate of 40.0%. The 2-year Note ended the day down a couple of
ticks so that its yield was last quoted at 0.39%.
Despite strength in the
dollar, all but two commodities groups finished higher today. Industrials
(+1.2%) and grains (+1.1%) led the way higher. Dec cotton surged 2.8% to finish
at $1.28 per pound. Dec wheat futures closed higher by 2.7% to $6.92 per bushel.
Precious metals shed weakness
in the dollar to recoup overnight losses. Dec gold finished more-or-less flat
at $1338.60 per ounce, while Dec silver gained 0.9% to end at $23.83 per ounce.
It was an uneventful session
for energy commodities. Dec crude oil settled higher by 0.1% to $82.55 per
barrel. It spent the afternoon session chopping around the flat line. Nov
natural gas finished higher by 0.7% to $3.34 per MMBtu.
Advancing Sectors: Consumer Discretionary (+0.4%), Energy
(+0.3%), Tech (+0.1%), Telecom (+0.1%), Financials (+0.1%),
Declining Sectors: Consumer Staples (-0.4%), Health Care
(-0.3%), Industrials (-0.3%), Materials (-0.2%), Utilities (-0.2%)DJ30 +5.41
NASDAQ +6.44 NQ100 +0.3% R2K -0.1% SP400 -0.2% SP500 +0.02 NASDAQ Adv/Vol/Dec
1298/1.94 bln/1335 NYSE Adv/Vol/Dec 1360/962 mln/1614