YAHOO [BRIEFING.COM]: Stocks
were confined to a narrow trading range just below the neutral line for most of
the session, but a late bounce by financials gave the broader market its ninth
gain in ten sessions and helped it close in-line with its 52-week high.
Stocks climbed to session
highs as the dollar index is reaching session lows.
A subdued mood governed trade
in the early going and for most of the afternoon. Participants appeared
inclined to sit on recent gains amid a lack of market-moving headlines,
including an initial jobless claims count of 462,000 for the week ended Mar. 6.
The consensus had called for 460,000 initial claims that had been expected.
Meanwhile, continuing claims
totaled 4.56 million, which was greater than the 4.50 million continuing claims
that had been expected.
The trade balance for January
came in with a $37.3 billion deficit, which was not quite as dramatic as the
$41.0 billion deficit that had been forecast.
Data out of China did little
to lift the spirits of global participants. News that the country's consumer
prices for February spiked a stronger-than-expected 2.7% year-over-year
rekindled concerns that the country may have to apply tighter monetary policy
to keep from overheating. Arguably, such a move could slow the global economic
recovery.
Meanwhile, Japan revised lower
its fourth quarter GDP to a 0.9% increase from the preliminary 1.1% growth
rate. However, reports suggested that the Japanese government may upgrade its
economic assessment in its monthly report.
The broader market's reaction
to the announcements was generally muted, but it followed financial stocks to
higher ground as the sector shook free from its confines to climb to a 0.9%
gain. Strength in the sector continues to be underpinned by banks, which
advanced 1.7%, as measured by the KBW Bank Index. The KBW is up nearly 5% this
week.
Leadership from the financial
sector helped the stock market close at its session high, which is actually
in-line with the S&P 500's 52-week closing high. The high has acted as a
point of resistance in recent sessions.
In the commodity space, May
copper closed 0.7% higher at $3.38 pound. Copper futures spiked following news
that another aftershock struck copper rich Chile. However, a report from
Codelco stating there was no damage to any of its mines tempered the move to
the upside.
Precious metals had a
relatively quiet day after the move to the downside in the prior session. A
decline in the dollar index allowed both gold and silver futures to move higher
following early losses. April gold traded in narrow range. After hitting a
session low at $1110.50 per ounce in the morning, it closed flat at $1108.20
per ounce. May silver closed 0.8% higher at $17.16 per ounce.
Crude oil futures also opened
the pit trade lower but worked their way back to the flat line as the dollar
weakened. April crude oil closed essentially flat at $82.11 per barrel.
While the close looked strong,
volume was unimpressive as fewer than 1 billion shares traded hands on the
NYSE. Such a scenario is often considered a sign of little conviction.
Advancing Sectors: Financials (+0.9%), Consumer
Discretionary (+0.6%), Materials (+0.5%), Health Care (+0.4%), Tech (+0.4%),
Telecom (+0.4%), Industrials (+0.3%), Utilities (+0.3%), Consumer Staples
(+0.1%)
Declining Sectors: (None)
Unchanged: EnergyDJ30 +44.51 NASDAQ +9.51 NQ100 +0.3% R2K
+0.3% SP400 +0.5% SP500 +4.63 NASDAQ Adv/Vol/Dec 1487/2.18 bln/1126 NYSE
Adv/Vol/Dec 1794/981 mln/1215