YAHOO [BRIEFING.COM]: Stocks
started March with a strong, broad-based push to fresh one-month highs in the
face of a stronger dollar, but equities ran into resistance as the S&P 500
attempted to turn positive for the year.
All three major indices spent
the entire session in higher ground with solid gains. The Nasdaq Composite was
the strongest of the headline indices, thanks to leadership from large-cap
tech. SanDisk (SNDK 32.63, +3.48) was one of the best
performers in the Nasdaq after the company's improved outlook during its
investor conference this past Friday won it the favor of several Wall Street
firms.
Though gains in the S&P
500 were strong, the broad market index struggled to move above the 1115 line,
which separates year-to-date positive from year-to-date negative. The line was
balanced for the entire afternoon, but stocks made a last minute spurt so that
the broad market index was able to eke out a fractional year-to-date gain and
settle back above its 50-day moving average.
Materials stocks were among
the better performers in the broader market. The sector settled with a 1.6%
gain as diversified metals and miners plays climbed amid copper supply concerns
that stemmed from the recent earthquake in copper-rich Chile.
Such sentiment helped
materials stocks shrug off a stronger dollar, which advanced roughly 0.5%
against a basket of competing currencies. Though that was a strong gain for the
greenback, it only half of what the dollar had traded with while at its session
high. The greenback's gain came as the euro and British pound fell out of favor
amid concerns related to deficits in Europe.
Despite concerns about the
fiscal health of Europe's economies, strong manufacturing data out of the euro
zone helped the major European bourses put together solid gains of their own in
the week's first session. Those gains contributed to a 1.0% advance in the Dow
Jones World Index.
U.S. economic data was met
with little response as January personal income increased 0.1%, which was below
the 0.4% increase that had been expected. Spending for January increased 0.5%,
which was a bit sharper than the 0.4% increase that many had come to expect.
Core personal consumption expenditures were flat from the prior month, but that
was in-line with economists' consensus call.
The ISM Manufacturing Index
for February came in at 56.5, which was below both the 57.9 that had been
widely expected and below the 58.4 that was posted for the prior month.
Meanwhile, construction
spending in January decreased 0.6% month-over-month, as expected.
There was a fair amount of
news related to mergers and acquisitions this morning. German drug and chemical
company Merck KGaA will acquire Millipore (MIL 104.90, +10.49)
for $7.2 billion. Other biotech and life science stocks traded higher in
sympathy to help the health care sector climb to a 1.0% gain.
European insurer Prudential
PLC (PUK 16.13, -2.37) agreed to buy a pan-Asia insurance business
from AIG (AIG 25.78, +1.01) for $35.5 billion in cash and
stock. Though support for AIG faded into the close, it was still a leader in
the financial sector which finished the session with a 0.4% gain after it
failed to follow the broader market higher.
Advancing Sectors: Materials (+1.6%), Consumer
Discretionary (+1.6%), Tech (+1.5%), Utilities (+1.3%), Health Care (+1.0%),
Industrials (+1.0%), Energy (+1.0%), Consumer Staples (+0.7%), Telecom (+0.6%),
Financials (+0.4%)
Declining Sectors: (None)DJ30 +78.53 NASDAQ +35.31 NQ100 +1.5%
R2K +2.2% SP400 +1.7% SP500 +11.22 NASDAQ Adv/Vol/Dec 2022/2.45 bln/684 NYSE
Adv/Vol/Dec 2418/967 mln/633