YAHOO [BRIEFING.COM]: A big
bounce by Europe's bourses brought about a barrage of buying interest this
morning. For the most part, the major averages held the ensuing gains -- some
bailed out of their positions in the final hour, but a last minute squeeze
lifted stocks at the close.
Market participants in Europe
were encouraged by a new eurozone fiscal pact that could make budget discipline
legally binding and enforceable, along with word that the IMF is devising a
lending plan for Italy, though the latter story was refuted. France's
CAC climbed more than 5%, while Germany's DAX advanced well in excess of 4%.
Strength throughout the region gave the EuroStoxx 50 a gain greater than 3%.
The display of such positive
sentiment in the otherwise precarious continent was welcomed by domestic
markets, which have been stuck in a downtrend for more than a week. In fact,
seven straight losses for the S&P 500 resulted in a cumulative loss of
almost 8%.
The troubles of Europe have
long overshadowed corporate news reports and even economic data, but the
improvement in the market's mood made it easier to give attention to positive
nature of early holiday shopping reports. Record spending levels this past
weekend suggest that consumer headwinds might not be as stiff as many had
feared. The SPDR S&P Retail ETF (XRT 50.17, +1.67) settled
more than 3% higher.
Data was limited to the latest
new home sales numbers, which showed that sales during October hit an
annualized rate of 307,000. That is slightly less than what had been expected,
but up slightly from the downwardly revised pace that was posted in the prior
month. The report failed to influence broad market trade, but shares of
homebuilders set session highs not long after its release. Homebuilders scored
a gain of nearly 4% on the session, as measured by the SPDR S&P
Homebuilders ETF (XHB 15.51, +0.55).
Buying interest was certainly
broad, but natural resource plays sported the strongest gains. They held their
heady gains even after several key commodities pulled back in afternoon trade,
causing the CRB Commodity Index to settle well off of its session high with a
0.8% gain.
Commodities gains were partly
challenged by the greenback's effort to gain ground against competing
currencies -- the dollar cut its loss to 0.5%, about half of what it was at
session's open, by day's end partly because interest in the euro had waned.
It was a quiet afternoon for
the precious metals, as both gold and silver traded in modest ranges. Neither
metal reacted to the bounce seen in the dollar. Gold futures gained 1.6% to
settle at $1710.80 per ounce, while silver futures rallied for 3.9% to end at
$32.20 per ounce.
The pullback in the dollar did, however, weigh on crude oil futures. Futures
extended a late-morning sell-off all the way into afternoon, where they put in
lows at $97.13. They did managed to retrace some of that sell-off, but closed
well below overnight highs at $100.74 per barrel. On the day, crude oil gained
1.5% to close at $98.12 per barrel. Natural gas shed 3.9% to finish at $3.52
per MMBtu. Futures were pressured by forecasts for warmer-than-average temps
across the country.
Advancing Sectors: Materials +3.6%, Energy +3.6%, Tech
+3.5%, Industrials +3.3%, Consumer Discretionary +3.0%, Financials +3.0%,
Health Care +2.7%, Telecom +2.1%, Consumer Staples +1.5%, Utilities +1.3%
Declining Sectors: (None)DJ30 +291.23 NASDAQ +85.83 NQ100
+3.4% R2K +4.8% SP400 +3.5% SP500 +33.88 NASDAQ Adv/Vol/Dec 2130/1.60 bln/452
NYSE Adv/Vol/Dec 2600/959 mln/496