YAHOO[BRIEFING.COM]:
The major indices traded sideways for much of the session. Word that
congressional officials have agreed on a comprehensive economic stimulus plan
provided stocks with a late bounce, helping stocks close with a solid gain.
A subdued tone permeated Wednesday's trading. Market participants
seemed to be settling in after sending stocks sharply lower in the prior
session. However, news that the Senate and House have agreed on the terms of a
$789.5 billion economic stimulus bill combined with support at key technical
levels spurred stocks higher.
Though the announcement didn't contain anything new or surprising,
the idea that further steps toward progressing economic conditions also
provided short-sellers reason to cover their positions. According to reports,
final votes for the stimulus bill are expected to occur during the next couple
of days so that it can be signed by this coming weekend.
Other headlines had little overall influence on the action this
session.
Genzyme
(GENZ 71.08, -0.11), Marsh McLennan
(MMC 21.41, +2.70), and Reynolds
American (RAI 39.84, +0.94) all announced better-than-expected
quarterly earnings results. Arcelor Mittal (MT 25.75, +0.95), Credit Suisse (CS 26.93, +0.95), and NVIDIA (NVDA 8.15, -1.17) fell short.
Applied Materials (AMAT
9.77, +0.08) broke even, excluding certain items, but that was expected by Wall
Street. AMAT delivered downside revenue guidance, though, and said it will cut
roughly 14% of its work force. Nike
(NKE 44.31, -0.74) indicated it could cut 4% of its work force.
Research In Motion (RIMM 48.76, -8.28) expects
fourth quarter earnings to be at the low end of its previous forecasts. Its
pessimistic outlook weighed on other large-cap tech stocks, which caused the Nasdaq 100 to lag the headline
indices. The Nasdaq 100
finished 0.2% lower.
Most of Wall Street's top executives testified today about their
use of TARP funds. Their testimony largely made for background noise, and had
little bearing on the stock market's direction.
Still, financial stocks were the session's best performers. The
sector gained 5.2%. However, that is still shy of what it will reclaim before
it can offset the prior session's near 11% drop.
Energy was the session's poorest performing sector. Energy stocks fell
1.3% as crude oil futures tumbled for the third time this week. Crude prices
were hampered by a larger-than-expected inventory build and a reduced forecast
for global oil demand from the IEA. Crude closed at $35.80 per barrel, down
4.7%.
While crude dropped, gold registered impressive gains for the
second straight session. Gold closed at $944.50 per ounce, up more than 3% to
its highest level in more than six months.
According to the latest trade data, the December deficit totaled
$39.9 billion, which is up from the prior reading. The improved deficit
reflected a drop in imports, but that was partly offset by a drop in exports.
That feeds concern that overall global trade is contracting sharply.
Additionally, revised data are expected to lead to a downward revision to the
fourth quarter GDP. DJ30 +50.65 NASDAQ +5.77 SP500 +6.58 NASDAQ Dec/Adv/Vol 1169/1464/2.15 bln NYSE
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