YAHOO [BRIEFING.COM]: Steady
support gave stocks strong gains Tuesday, but resistance capped the climb.
The dollar was the primary
driver of today's action. It slid to a 0.7% loss as the euro rallied in the
wake of some strong eurozone PMI manufacturing data that overshadowed wider
yield spreads on riskier debt of countries like Greece.
There was no domestic data
posted today, but a barrage of reports begins tomorrow. Tomorrow also brings
the latest FOMC policy statement, which is widely expected to include plans for
further quantitative easing. Though the size and scope of any such plan are not
known, the market's reaction to the announcement will be telling of whether there
is confidence in the Fed's efforts to keep away a double dip.
With the dollar down markedly
ahead of tomorrow's events, stocks were able to attract a broad bid that
propped up all 10 major sectors. What is more, the buying effort drove the
S&P 500 back to within one point of its five-month high before it
encountered formidable resistance in the 1195 to 1196 zone. Though the stock
market failed to set a new multi-month intraday high, it did book its best
close since early May.
Of the major sectors, defensive-oriented
utilities actually settled with the strongest gain. The sector's 1.2% gain came
after it had underperformed in the prior session.
With a 1.1% gain energy stocks
were not far behind. The sector was led by oil and gas explorers (+1.5%) and oil
and gas equipment plays (+1.4) amid a 1.2% rise in oil prices to $83.90 per
barrel. BP Plc (BP 41.42, +0.65) outperformed after it posted
an upside earnings surprise.
Dow component Pfizer (PFE
17.45, -0.17) posted better-than-expected earnings of its own and issued
in-line guidance, but were out of favor for all but the first few minutes of
the session.
Financials managed only a
modest 0.3% gain. The sector was partly hampered by weakness among bank stocks,
which collectively fell to a 0.2% loss after analysts at Moody's downgraded
U.S. regional banks' supported ratings. Participation was unimpressive once
again.
Fewer than 1 billion shares
changed hands on the NYSE this session. That made it clear that many investors
would rather wait on the sidelines to see the midterm election results, hear
the Fed's latest take on and plans for the economy, and assess jobs data at the
end of the week.
The weak dollar acted as a
catalyst for select commodities today. Industrials and soft commodities led the
way higher with 1.8% gains. The dollar propped up precious metals as well, with
silver gaining 1.3% to settle at $24.84 per ounce, while Dec gold gained 0.4%
to finish at $1356.90 per ounce.
Dec crude oil gained 1.2% to
end at $83.90 per barrel. Weakness in the dollar, coupled with strength in
equities, help priced higher today. Dec natural gas rebounded, following yesterday's
sizable sell off, as it closed higher by 0.9% to $3.87 per MMBtu.
Advancing Sectors: Utilities (+1.2%), Consumer
Discretionary (+1.1%), Energy (+1.1%), Telecom (+0.9%), Materials (+0.9%), Tech
(+0.9%), Health Care (+0.8%), Industrials (+0.8%), Consumer Staples (+0.4%,
Financials (+0.3%)
Declining Sectors: (None)DJ30 +64.10 NASDAQ +28.68 NQ100 +1.1%
R2K +2.1% SP400 +1.1% SP500 +9.19 NASDAQ Adv/Vol/Dec 1948/1.93 bln/702 NYSE
Adv/Vol/Dec 2209/913 mln/772