YAHOO [BRIEFING.COM]: The new year began on a strong note as all three major indices made their way to new 52-week highs on the back of broad-based buying. Though trading volume wasn't quite back to average levels, the move was supported by a solid pick up in participation.

Stocks spent the entire session sporting strong gains. Initial support came amid handsome overseas gains and a pullback by the greenback.

News that the ISM Manufacturing Index for December exceeded expectations (consensus called for 54.3) by improving to 55.9 from 53.6 in November helped keep the bullish bias intact. Participants generally shrugged off two-month old construction spending data that showed a slightly steeper-than-expected 0.6% monthly decline for November (consensus called for a 0.5% decline). Construction spending for October was revised downward to reflect a 0.5% decrease.

After stocks ascended to new 12-month highs in late morning trade, they spent the rest of the session drifting sideways, which left the S&P 500 to remain in a range that spanned less than three points. Still, the steady grind locked in the stock market's best single-session percentage gain in eight weeks.

Energy stocks and materials stocks underpinned the gains. The two sectors both advanced 2.8% with help from both the broader market and higher commodity prices.

With the dollar down 0.4% against a basket of foreign currencies, the CRB Commodity Index advanced 2.1%. Crude oil prices climbed 2.7% to $81.51 per barrel as they broke the $80 per barrel barrier for the first time since November. Meanwhile, precious metals prices, as a group, gained 3.1%.

Though they weren't quite the leaders that energy stocks and materials stocks were, financials also had a strong session. The financial sector tacked on 2.1% with particular strength exhibited by investment banks and brokerages, which spiked 3.4% in conjunction with an upgrade of Morgan Stanley (MS 30.91, +1.31) by analysts at both UBS and Credit Suisse.

Despite broad strength this session, the defensive-oriented utilities sector was a relative laggard. It advanced a mere 0.2%.

Retailers also lagged. As a group they finished flat. The uninspired performance came after shares of retailers bested the broader market for the past month; during December retailers advanced 2.2%, while the S&P 500 advanced 1.8%.

Participation wasn't quite back to normal, but it did improve so that more than 1.0 billion shares exchanged hands on the NYSE. The past two weeks have been underscored by poor participant turnout as many trading desks went thinly staffed amid end-of-year holidays.

Advancing Sectors: Materials (+2.8%), Energy (+2.8%), Financials (+2.1%), Industrials (+1.7%), Tech (+1.6%), Telecom (+1.6%), Health Care (+1.4%), Consumer Staples (+1.0%), Consumer Discretionary (+0.6%), Utilities (+0.2%)
Declining Sectors: (None)DJ30 +155.91 NASDAQ +39.27 NQ100 +1.4% R2K +2.4% SP400 +1.6% SP500 +17.89 NASDAQ Adv/Vol/Dec 2150/1.94 bln/587 NYSE Adv/Vol/Dec 2465/+1.01 bln/601