YAHOO [BRIEFING.COM]: A lack
of leadership left stocks to roll over this morning, but buyers provided an
afternoon lift that helped the major averages settle near session highs with
solid gains.
The mood this morning was
relatively mixed as market participants ruminated over the implications of a
resignation by Greece Prime Minister Papandreou. Last week the Papandreou
unnerved many officials, and markets for that matter, by proposing a referendum
for the country's bailout package. It is expected that a new prime minister
will be named tomorrow. The future of Italy's prime minister was questioned
this morning.
Rumors about his possible
resignation came amid concerns about the country's fiscal and financial
conditions, which continue to drive yields on the Italian debt to new heights.
Italy canceled an auction of short-term Notes that was scheduled for later this
week.
Although the primary market
averages of Italy and Greece scored gains of 1.3% and 1.7%, respectively, the
rest of the region failed to find inspiration from those headlines. In turn,
the EuroStoxx 50 fell 0.7% in its first session of the new week. For that
matter, many of Asia's major averages were weak in overnight trade.
Despite the generally weak
action abroad, domestic stocks attempted to trade higher in the opening minutes
of trade. Energy issues offered early leadership, but it proved fleeting as the
sector inevitably rolled over alongside the rest of the market.
There wasn't any specific
headline that brought buyers back into the fold, but the rally by stocks began
around the same time that the euro rebounded against the greenback. Even then
there weren't any individual leaders, but the Dow still bounced almost 200
points from its low to its high. Meanwhile, the Nasdaq was able to offset a 1%
loss.
Although the climb continued
right up until the close, share volume was quite paltry, suggesting that there
wasn't a great deal of conviction underlying the bidding. By day's end, less
than 800 million shares had been traded on the NYSE. Outside of averages, 1
billion shares often makes for a convenient benchmark for share volume and
participation.
The focus of commodity markets
was once again the European debt crisis. Focus shifted, momentarily, from
Greece to Italy and whether or not the Italian Premier, Silvio Berlusconi, will
step down. The continued uncertainty about what is happening in the Eurozone
sent precious metals higher in a flight to safety. Gold futures rallied for
1.9% to close at $1791 per ounce, while silver futures ended up 2.2% at $34.83
per ounce.
It was a relatively quiet
session for crude oil futures, which settled higher by 1.3% at $95.52 per
barrel. Prices traded in a ~50 cent range for a majority of the session, but
managed to catch a bid heading into the close to finish with gains of 1.3%. Dec
natural gas ended lower by 2.2% at $3.70.
Advancing Sectors: Health Care +1.2%, Telecom +0.8%,
Materials +0.8%, Energy +0.7%, Consumer Staples +0.7%, Tech +0.7%, Utilities
+0.6%, Consumer Discretionary +0.5%, Financials +0.4%, Industrials +0.2%
Declining Sectors: (None)DJ30 +85.15 NASDAQ +9.10 NQ100 +0.6%
R2K -0.2% SP400 -0.1% SP500 +7.89 NASDAQ Adv/Vol/Dec 1091/1.71 bln/1437 NYSE
Adv/Vol/Dec 1638/783 mln/1329