YAHOO [BRIEFING.COM]: Although
the effort encountered resistance, the stock market was able to build on an
early gain and overcome resistance to put itself back in positive territory for
the year.
Early market participants
provided a modest bid in the face of muddled action abroad and a new 11-month
low for the euro following a mixed debt auction in Italy. The euro eventually
worked its way higher and, in turn, bolstered broad market buying interest; the
currency climbed out of the red to end the trading day with a 0.4% gain against
the greenback. The euro is still down more than 3% this year, though.
Financials helped boost the
broad market by providing leadership. The sector fully recovered from their
prior session slump by bouncing to a 1.6% gain. Banks proved to be a primary
driver of that move. However, bank stocks remain the reason for the sector's
poor performance this year -- the KBW Bank Index is down 23% this year while
the broader financial sector is off by 18% year to date.
Defensive-oriented stocks have
generally outperformed in 2011. Year to date, utilities stocks are up more than
15%, consumer staples stocks are collectively up 11%, and the health care
sector is up more than 10%.
All 10 major sectors scored
strong gains today, though. Despite such broad-based strength, the S&P 500
had a hard time moving more than a couple of points above the 1258 zone, which
contains its 2011 starting point and its 200-day moving average. Still, stocks
never retreated and ultimately prevailed in overcoming resistance. The lack of
share volume likely helped the move -- with only a half billion shares traded
on the NYSE share volume was only about half of its average daily volume.
Nonetheless, the S&P 500 is now fractionally positive for the year.
Economic data had little sway
with the broad market, but shares of homebuilders were helped by a surprisingly
strong pending home sales report. Pending home sales for November increased by
7.3%, which is greater than the 0.6% increase that had been generally expected
among economists polled by Briefing.com, but less than the 10.4% increase
recorded in the prior month.
The Chicago PMI for December
also exceeded expectations. Although it eased down to 62.5 from 62.6 in the
prior month, it was better than the reading of 60.1 that had been generally
expected.
Weekly initial jobless claims
jumped to 381,000 from the multi-month low of 366,000 posted for the previous
week. Economists polled by Briefing.com had expected, on average that initial
claims would be closer to 368,000.
The commodities complex failed
to benefit from the positive tone displayed in the stock market and the
dollar's decline from a multi-month high. That left the CRB Index to suffer a
0.2% loss. That said, several commodities were able to recover from new or near
multi-month lows. The CRB is positioned for a year-to-date loss of about 8.5%.
In the energy sector, Feb
crude oil continued to trend higher in the afternoon, off its session low of
$99.26 hit in the morning session. Crude ultimately moved back to the unchanged
mark during the afternoon session. By the end of the session, crude ended 0.2%
higher at $99.68/barrel.
Jan natural gas basically trended lower until the afternoon session began. From
there, the energy component remained in a tight range for the rest of the day
and finished the session unchanged.
In the metals space, after extending yesterday's losses during the morning
session today, Feb gold traded in a narrow range before gaining steam in the
afternoon and ended 1.4% lower at $1540.80/oz. Gold remained higher in
electronic trade and moved as high as $1551.60.
March silver continued to extend losses this morning as well. After hitting a
session low of $26.15 in early morning activity, silver steadily trended higher
for the rest of its floor trading session and recovered its losses, closing
0.3% higher at $27.36/oz. March copper ended higher by 2 cents at $3.38.
Advancing Sectors: Financials +1.6%, Industrials +1.3%,
Energy +1.2%, Materials +1.1%, Consumer Discretionary +1.1%, Health Care +1.0%,
Tech +0.9%, Telecom +0.9%, Utilities +0.8%, Consumer Staples +0.7%
Declining Sectors: (None)DJ30 +135.63 NASDAQ +23.76 NQ100
+0.8% R2K +1.3% SP400 +1.4% SP500 +13.38 NASDAQ Adv/Vol/Dec 1888/1.03 bln/724
NYSE Adv/Vol/Dec 2381/531 mln/637