YAHOO [BRIEFING.COM]: Despite
mediocre data, the Dow and the S&P 500 made their way to fractionally
improved 52-week highs amid modest support. Stocks were generally flat in the
early going.
Participants showed little
reaction to news that advance retail sales for December decreased 0.3%, which
was weaker than the 0.5% increase that had been expected. Sales less autos
decreased 0.2%, but that was also worse than the 0.3% increase that many had
forecast. The figures were underwhelming, but many attributed the drop to the
previous month's 1.8% spike in retail sales and 1.9% jump in sales less autos.
Still, the reversal in retail
sales suggests that all isn't well in the economic recovery. To that point, the
latest initial jobless claims tally increased 11,000 from the previous week to
444,000. That was balanced by a larger-than-expected drop by continuing claims
to 4.60 million, though lower continuing claims have stemmed from the
expiration of jobless benefits.
In other economic news, the
Import Price Index for December was flat month-over-month, as expected.
Despite lackluster action in
the early going, Intel (INTC 21.48, +0.52) provided leadership
to the tech sector ahead of its latest quarterly report. Tech finished the
session with a 0.7% gain, but other semiconductor stocks slipped 0.6%,
collectively.
Regional bank stocks climbed
2.4% to help the financial sector finish with a 0.6% gain. Support for regional
lenders came amid speculation that proposals to slap banks with fees for risk
taking would be focused on larger lenders.
Upward momentum from the
previous session helped health care stocks finish with a 0.8% gain, which made
for the best performance of any major sector.
Continued weakness in AT&T
(T 26.19, -0.45) and Verizon (VZ 31.22, -0.65) took telecom
down 1.8%. That came in addition to the sector's 0.4% slip in the previous
session, when it was the only sector to log a loss. Telecom stocks are now down
5.1% since the start of the year, worse than any other sector.
Materials stocks were also
weak this session, though. The sector shed 1.0% as Monsanto (MON
82.79, -1.16) moved lower amid confirmation that the Justice Dept. has
confirmed that it is investigating the possibility of anticompetitive practices
in the seed industry.
Still, strength among health
care, tech, and financials, the three largest sectors by market weight, lifted
the broader market to a modest gain, which marked its seventh advance in eight
sessions.
Despite that accomplishment,
conviction appears questionable as fewer than 1 billion shares traded hands on
the NYSE once again.
Advancing Sectors: Health care (+0.8%), Tech (+0.7%),
Financials (+0.6%), Energy (+0.2%)
Declining Sectors: Telecom (-1.8%), Materials (-1.0%),
Utilities (-0.3%), Industrials (-0.1%), Consumer Staples (-0.1%)
Unchanged: Consumer StaplesDJ30 +29.78 NASDAQ +8.84 NQ100
+0.0% R2K +0.5% SP400 +0.2% SP500 +2.78 NASDAQ Adv/Vol/Dec 1561/2.29 bln/1105
NYSE Adv/Vol/Dec 1727/888 mln/1290