YAHOO [BRIEFING.COM]: The
S&P 500 scored a solid gain as stocks staged a late bounce in the face of a
stronger dollar. The Nasdaq and S&P 500 were left mired near the neutral
line, though.
The major indices were stuck
in choppy trade for virtually the entire session. Any attempts to advance were
restricted by a stronger dollar, which managed to gain 0.9%.
The dollar had shown early
strength as it began to rebound from three straight slides, but extended the
move following news that nonfarm payrolls for October climbed by 151,000 and
that private payrolls increased by 159,000 -- each had been expected to show
increases of 60,000. The increases were the biggest in several months, but the
headline unemployment rate remained at 9.6%, as had been widely expected.
The greenback's gain tempered
support for stocks, even as financials attempted to provide leadership.
Financials outperformed for the entire session. They booked a 2.1% gain with
help from bank stocks, which continued to climb amid speculation that
better capitalized banks may soon receive a blessing from regulators to raise
dividends and re-institute share purchases. The KBW Bank Index booked a 2.2%
gain and set a three-month high, but finished just below its 50-day moving
average.
Though the other sectors
failed to follow financials, the sector's size and strength helped give the
S&P 500 a modest lead over its counterparts.
AIG (AIG 45.61, +0.87) was able to share in
the financial sector's strength as trade progressed. The stock was down close
to 4% in the wake of a disappointing earnings report, but the stock rallied to
finish with a gain of almost 2%.
Dow component Kraft
(KFT 31.08, -0.71) was dogged all session as a disappointing revenue figure
cast a pall over its upside earnings surprise.
Better-than-expected earnings
from Starbucks (SBUX 30.87, +1.12), CBS (CBS
17.01, -0.65), Blue Nile (NILE 48.30, +2.80), and Crocs
(CROX 14.46, -0.34) received less attention from the financial media
as their announcements had little influence over broader market trade.
The tone of trade was also
uninfluenced by news that pending home sales for September fell 1.8%
month-over-month when they had been expected to make a monthly increase of
2.5%.
Precious metals put on another
impressive performance. Gold in the continuous contract hit a new record of
$1398.70 per ounce before they settled with a 1.1% gain at $1397.70 per ounce.
Silver prices set a new 30-year record of $26.92 per ounce in the continuous
contract. It settled with a 2.6% gain at $26.71 per ounce. For the week silver
advanced 8.8% and gold gained 3.0%.
Consumer credit, which
increased $2.1 billion in September, also did nothing to inspire participants.
The consensus among economists polled by Briefing.com called for a $3.3 billion
drop. Credit for the prior month was revised lower to reflect a $4.9 billion
decline.
Precious metals put in another
strong session that was highlighted by their push to new highs. Gold in the
continuous contract hit a new record of $1398.70 per ounce before the yellow
metal settled near that mark with a 1.1% gain at $1397.70 per ounce. Gold
prices gained 3.0% this week. Silver prices set a new 30-year record of $26.92
per ounce in the continuous contract. It settled with a 2.6% gain at $26.71 per
ounce. Silver advanced 8.8% for the week.
Oil prices extended their
string of gains with a 0.4% to settle the week at $86.86 per barrel. Oil prices
ascended 6.7% this week.
Natural gas prices put in a
strong session after they had lagged yesterday. The energy component climbed
2.0% to settle at $3.93 per MMBtu. Natural gas prices actually fell 2.4% this
week.
Advancing Sectors: Financials (+2.1%), Energy (+0.5%),
Consumer Discretionary (+0.5%), Industrials (+0.5%), Materials (+0.3%)
Declining Sectors: Telecom (-0.6%), Health Care (-0.5%),
Consumer Staples (-0.4%)
Unchanged: Utilities; TechDJ30 +9.24 NASDAQ +1.64 NQ100 -0.1%
R2K +0.4% SP400 +0.6% SP500 +4.79 NASDAQ Adv/Vol/Dec 1456/2.10 bln/1168 NYSE
Adv/Vol/Dec 1740/1.24 bln/1241