Stocks showed solid gains in the early going, but the advance was
rebuffed by a round of profit taking. Choppy trading ensued, leading
stocks to close with a modest gain.
Financials were up more than 5% in the early going. Diversified
banks (+3.2%) and other diversified financial services companies (+4.3%) were
among the sector's strongest performers. Citigroup (C 1.54, +0.09) also traded higher,
though it wasn't quite the leader that it was in the prior session.
Market watchers await details from tomorrow's congressional
committee meeting, which will examine mark-to-market accounting rules. The
rules have driven massive write-downs at banks and other financial companies;
temporarily suspending the rules could remove an overhang from many financial
companies, potentially allowing their shares to rip higher.
Removal of the uptick rule is another regulatory change that has
been proposed. However,
A mix of profit taking and uncertainty surrounding financial stocks
turned the financial sector's early gain into a fractional loss. Financials
were able to climb back, though. They finished 2.4% higher.
The broader market seemed to take its cues from the financial
sector for the second straight session.
Each of the major indices climbed more than 1% in the early going.
However, the S&P 500 was rebuffed after failing to push through 730, while
the Dow failed to crack 7000.
The stock market's failure to extend its advance amid ongoing
uncertainty in the financial system and broader economy opened the door for
profit taking, which resulted in a choppy session. Stocks retreated into the
red, but rebounded. Sellers redoubled their efforts in the final leg of
trading, limiting the gains for the session.
Health care (-2.0%) was the session's worst performing sector. Pfizer (PFE 12.79, -0.30) was a primary laggard.
Its credit rating was lowered by Moody's to Aa2 from Aa1.
Energy (-1.2%) was also a notable laggard. Its weakness followed a
7.4% drop in crude oil prices, which finished pit trading near $42.35 per
barrel.
There were no earnings announcements or economic reports of
consequence to influence the direction of trade, though a CNBC report indicated
JPMorgan Chase (JPM 20.40, +0.90) was
profitable in the first two months of the year.
Tomorrow's earnings calendar is also absent of market movers.
However, advance retail sales for February are due tomorrow, along with January
business inventories, and weekly jobless claims data.
Treasury Secretary Geithner will testify
tomorrow before the Senate Budget Committee on the 2010 Budget.
The G-20 also meets this week. Agenda items include how to ensure
economic recovery and restart growth, and how to reform and coordinate the
international regulatory and supervisory system to ensure that no such crisis
occurs again. DJ30 +3.91 NASDAQ +13.36 NQ100 +1.2% R2K -0.4% SP400 +0.4% SP500
+1.76 NASDAQ Dec/Adv/Vol 1343/1342/2.15 bln NYSE Dec/Adv/Vol
1263/1822/1.75 bln