YAHOO [BRIEFING.COM]: Despite
a sluggish start and a lack of concerted leadership, the stock market made its
way back above 1100 as buyers offered broad-based support for the second
straight session.
For fear that the previous
session's low-volume rally was anything more than a reflex bounce that followed
last week's losses, participants showed reservation in the early going. That
made for listless, choppy trade.
However, buyers stepped back
in after a couple of early dips failed to gain momentum. Broad buying ensued,
but stocks paused to consolidate their gains at a couple of near-term
resistance levels in the S&P 500 -- last week's closing highs and the
psychologically-significant 1100.
Though the S&P 500 was
able to make its way back above 1100, it remains 4% below its January high.
Nonetheless, all 10 major sectors finished the latest session in higher ground;
seven of them gained in excess of 1%.
Materials stocks consistently
lagged. The sector still gained 0.4%, but Dow Chemical (DOW
27.57, -1.06) proved to be a drag as participants dismissed its
better-than-expected earnings.
Some materials stocks sported
strong gains, though. Particularly, an upgrade of Alcoa (AA
13.67, +0.31) and Freeport McMoRan (FCX 72.51, +0.92) by
analysts at Citigroup won support for aluminum and diversified metals plays,
while an upgrade of Schnitzer Steel (SCHN 45.51, +3.09) by
analysts at UBS helped steel stocks.
Higher commodity prices also
offered support to the sector. With a 1.9% gain, the CRB Commodity Index made
its best single-session percentage gain in nearly one month.
A modest 0.2% decline by the
Dollar Index played a minor role in the CRB's move, but oil prices were a
primary underpinning of the gain. Pit trade closed with crude oil priced 3.7%
higher at $77.17 per barrel. That played a part in the energy sector's 1.4%
bounce. Of the 39 components listed in the S&P 500 Energy Sector, only Baker
Hughes (BHI 47.26, -0.07) failed to log a gain.
Energy names topped this
session's list of most actively traded stocks by volume. Overall volume was
slightly above average as almost 1.2 billion shares exchanged hands on the NSYE
this session.
Still, participants don't seem
to be reacting much to earnings. UPS (UPS 58.62, +0.23) posted
an upside surprise that helped its shares climb, but the broader market was
generally unfazed. Whirlpool (WHR 82.23, +6.17) missed Wall
Street's consensus, but its strong outlook won it favor.
There wasn't much reaction to
the latest economic data or economic commentary as an in-line 1.0%
month-over-month increase in December pending home sales was generally
dismissed by market participants.
Treasury Secretary Geithner's
testimony about the government's fiscal 2011 budget was also generally
disregarded, while former Fed Chairman and current Chair of the President's
Economic Recovery Advisory Board Paul Volcker gave a testimony on reining in
risk taking at commercial banks that offered little additional detail.
Advancing Sectors: Health Care (+1.9%), Industrials
(+1.9%), Consumer Discretionary (+1.5%), Energy (+1.4%), Telecom (+1.3%),
Consumer Staples (+1.3%), Financials (+1.1%), Tech (+0.8%), Utilities (+0.8%),
Materials (+0.4%)
Declining Sectors: (None)DJ30 +111.32 NASDAQ +18.86 NQ100
+0.9% R2K +0.8% SP400 +1.4% SP500 +14.13 NASDAQ Adv/Vol/Dec 1479/2.50 bln/1164
NYSE Adv/Vol/Dec 2341/1.18 bln/695