YAHOO[BRIEFING.COM]:
Stocks closed a relatively quiet session modestly higher as market
participants continue awaiting Treasury's bank rescue plan. Though the advance
was only modest, the takeaway from this session is largely positive.
Investors were made to wait one more day
for Treasury's bank bailout plan. The plan will be announced
at 11:00 AM ET Tuesday.
Though less likely to have an immediate impact on the financial
sector or capital markets, market participants are also still waiting for the
Senate to pass the more comprehensive economic recovery plan. Senators are
expected to vote on an $827 billion spending and tax cut plan early this week.
The plan still has to be reconciled with that which was already approved by the
House of Representatives.
Financial stocks continue to benefit as investors move into the
sector ahead of tomorrow's announcement from Treasury. The financial
sector closed 1.3% higher with leadership from diversified financial services
companies (+2.3%) and regional banks (+4.0%). Insurers (+5.1%) also
showed strength after Treasury indicated insurers will have access to TARP funds.
Shares of General Electric
(GE 12.64, +1.54) made their best-single session gain in years. There wasn't a
particular news item underpinning the move, but many analysts point to the
exposure of the firm's capital business to financial markets as a reason for
the renewed interest. GE provided support to the Dow, S&P 500, and
industrial stocks, which bested every other sector with a 2.6% gain.
Energy (+0.1%) and technology (+0.3%) were able to finish in the
green.
Energy advanced even though crude oil futures prices closed 1.8%
lower at $39.42 per barrel. Crude had been up as much as 5.6% after officials
from OPEC indicated supply cuts could take place. Despite lower oil
prices, select oil and gas equipment companies gained after Reuters
reported analysts at Goldman Sachs issued upgrades on certain industry
players. As a group, oil and gas equipment companies finished 0.8% higher.
Large-cap tech provided continued strength to the tech sector and
the Nasdaq 100 (+0.3%).
Their influence limited losses in the broader Nasdaq Composite (unch.),
helping it preserve its year-to-date gain of 0.9%.
Earnings news was rather light and had little impact on the
session's mood. Whirlpool
(WHR 37.13, +0.74) announced lower earnings that were partly weighed down by
charges. The company also issued downside guidance. Rohm and Haas (ROH 56.28, -0.22) announced
better-than-expected fourth quarter adjusted earnings, and issued a statement
that Dow Chemical
(DOW 10.65, -0.23) has not been focusing on the necessary steps to complete its
acquisition of ROH.
The major indices all finished the session near the neutral
line. Though a quiet session, market participants should view it
positively since stocks have thus far held on to gains registered in recent
sessions. Stocks are still up 4.5% over the course of the last three sessions.
DJ30 -9.72 NASDAQ -0.15 NQ100 +0.3% R2K -0.6% SP400 -0.2% SP500 +1.29 NASDAQ
Adv/Vol/Dec 1197/1.90 bln/1458 NYSE Adv/Vol/Dec 1653/1.26 bln/1383