YAHOO [BRIEFING.COM]: Despite
plenty of potential catalysts for trade, the broader stock market lacked
direction for the second straight session. Natural resource plays showed
considerable strength, though.
Participants got a glimpse
into the government's official nonfarm payrolls report, which is due Friday,
via the latest ADP Employment Report. The ADP report stated that 84,000 jobs
were lost in December, down from 145,000 job losses in November. Still, the
December tally was a bit more than the 75,000 that many had expected.
The December ISM Service Index
improved to 50.1 from the 48.7 that was registered in November. Though the
latest index suggested that activity made a modest pick up, since it was above
the 50 that delineates expansion from contraction, it was still a bit below the
50.5 that economists, on average, had forecast.
Neither the ADP report nor the
ISM reading caused much of a stir among participants.
Reactions were also muted to
the latest FOMC meeting minutes, which indicated that some members think more
stimulus might become desirable. That did put pressure on the dollar, though;
the dollar shed 0.2% against a basket of foreign currencies.
The dollar's drop provided an
extra boon to commodities and gave the CRB Commodity Index a 1.5% gain. Oil
prices climbed 1.7% to finish pit trade at $83.18 per barrel. Prices had been
up as high as $83.52 per barrel, a fresh 52-week high. More impressive, though,
is that the high came after oil prices rallied from a modest loss, which was
induced by news that crude oil inventories for the week that ended January 1
increased by 1.33 million barrels. The consensus had called for a 1 million
barrel draw.
Higher oil prices helped the
energy sector climb to a 1.0% gain, which was second only to the 1.5% gain
registered by the materials sector.
Steel stocks were leaders in
the materials sector. They tacked on 3.5% amid better-than-expected earnings
from Worthington Industries (WOR 16.73, +2.85), which put
together one of its best single-session percentage gains of the past
52 weeks, and a few upgrades on sector players.
Agricultural chemical outfits Mosaic
(MOS 65.57, +2.42) and Monsanto (MON 86.64, +1.63)
managed to garner support, even though they both came short of Wall Street's
respective earnings estimates for the latest quarter. Shares of MOS hit a fresh
52-week high, while shares of MON made it to a multimonth high.
Though natural resource plays
made their way to marked gains, the broader market was weighed down by
large-cap tech stocks, which dragged the tech sector to a 0.9% loss and caused
the tech-rich Nasdaq to lag its counterparts.
Telecom was the worst
performing sector this session, though. It dropped 3.0% as integrated telecom
fell 3.3%.
Advancing Sectors: Materials (+1.5%), Energy (+1.0%),
Health Care (+0.5%), Utilities (+0.5%), Financials (+0.4%), Industrials (+0.2%)
Declining Sectors: Telecom (-3.0%), Tech (-0.9%), Consumer
Staples (-0.1%)
Unchanged: Consumer DiscretionaryDJ30 +1.66 NASDAQ -7.62 NQ100
-0.5% R2K -0.3% SP400 +0.5% SP500 +0.62 NASDAQ Adv/Vol/Dec 1198/2.27 bln/1488
NYSE Adv/Vol/Dec 1815/1.11 bln/1206