YAHOO [BRIEFING.COM]: Broad-based buying drove the stock market to
another strong gain today. The action makes for the broad market's best
back-to-back performance in more than three months.
All 10 major sectors staged gains, but Materials and Industrials
put on the most impressive performances. They scored gains of 1.6% and 1.4%,
respectively. Hot Topic (HOTT
9.86, +1.07) and Coach (COH
76.82, +3.43) led the Consumer Discretionary sector to a 1.0% gain. Shares of
HOTT spiked to a near three-year high as buying interest heated up in response
to stronger-than-expected earnings, upside guidance, and a dividend hike.
Encouraging comments from Coach management at a
conference took shares of the apparel and accessories outfit up sharply to a
record high before momentum began to wane.
McDonald's (MCD
96.96, -3.22) was unable to take part in the Consumer Discretionary sector's
climb due to disappointment over the company's latest monthly comparable store
sales report. Comparable sales in the
Heavyweight Apple (AAPL
541.99, +11.30) advanced impressively as investors and traders dismissed news
that the Justice Department claims that the company colluded to raise
electronic book prices.
The highly influential Financial sector
experienced some seesaw-like action before fighting its way to a 1.0% gain. AIG (AIG 28.31, -1.14) failed to
follow the rest of the sector after it was learned that the Treasury Department
has filed to offer more than 200 million common shares of AIG for $29.00 per
share.
Positive sentiment was supported by confidence that
The euro was hardly influenced by the European Central Bank's
decision to keep its target interest rate at 1.00%, as had been generally
expected. The Bank of
The only dose of data was the latest weekly jobless claims, which
totaled 362,000. Economists polled by Briefing.com had expected, on average, a
tally closer to 355,000 on the heels of an upwardly revised claims count of
354,000 for the prior week. The numbers are unlikely to influence expectations
for the official monthly payrolls report that will be released tomorrow morning
-- the consensus among economists polled by Briefing.com calls for non-farm
payrolls to increase by 250,000, private payrolls to climb by 275,000, and a
headline unemployment rate of 8.3%.
Strong buying in back-to-back sessions has the S&P 500 up 1.7%
in only two days. It also has the Volatility Index back below 18. This past
Tuesday a barrage of selling caused the euphemistically labeled Fear Gauge to
spike to 21.
Natural gas prices extended their slide with constant futures
prices settling pit trade with a 1.3% loss at $2.27 per MMBtu,
which makes for a new multi-year closing low for the energy component. Today's
weekly inventory report showed a draw of 80 bcf,
which is less than the draw of 85 bcf that had been
broadly expected. In contrast, oil prices wavered some this morning, but the
commodity closed pit trade with a 0.5% gain at $106.63 per barrel.
Precious metals performed well in that silver settled with a 1.0%
gain at $33.83 per ounce while gold gained 0.9% to close pit trade at $1698.60
per ounce.
Advancing Sectors:
Materials +1.6%, Industrials +1.4%, Health Care +1.2%, Tech +1.1%, Financials
+1.0%, Consumer Discretionary +1.0%, Telecom +0.7%, Consumer Staples +0.6%,
Energy +0.5%, Utilities +0.4%
Declining Sectors:
(None)DJ30 +70.61 NASDAQ +34.73 NQ100 +1.1% R2K +1.3% SP400 +1.2% SP500 +13.28
NASDAQ Adv/Vol/Dec 1824/1.61 bln/695 NYSE Adv/Vol/Dec 2406/716 mln/615