YAHOO[BRIEFING.COM]: Following
the stock market's near 11% rebound during the previous three sessions,
participants were compelled Friday to take profits amid a lack of positive
catalysts. Still, stocks showed resolve to the selling effort by climbing back
from a loss of more than 1% to finish the session with a solid gain.
Sellers focused their efforts
on financials, which had surged nearly 40% from last week's intraday lows to
the prior session's close. That gain was inspired by reassuring headlines
indicating JPMorgan Chase (JPM 23.75, +0.55), Bank of America (BAC 5.76, -0.09), and Citigroup (C 1.78, +0.11) are profitable so far this
year. More recently, Citigroup went on to say it will not need additional funds
from the government.
Financials have also been
bolstered in recent sessions by headlines suggesting possible relaxation from
mark-to-market rules and short-selling rules. Though there haven't been any new
details released about those matters, the potential for more positive headlines
is challenging short sellers.
Financials initially showed
strength Friday, but fell to a loss of more than 4%. Given the gains financials
registered in recent sessions, the downward move wasn't very surprising
considering the lack of positive catalysts and listless trading in early
action. What was encouraging, though, was the fact financials came rallying
back to close with a gain (+0.3%).
Despite a lack of clear
leadership and very choppy trading, the broader market was also able to muster
a gain and close above its November closing low. Stocks have now closed higher
in four straight sessions, which was last done more than one month ago.
Health care, which is the
largest sector in the S&P 500 by market weight, was this session's best
performing sector. Health care stocks advanced 3.3% as investors show renewed
interest in the sector following its string of weakness. Stocks in the sector
had become battered during recent weeks as investors feared health care reform
would crimp profits. Recent merger and acquisition activity has also induced a
bit of a snap back in buying.
Energy was the session's worst
performing sectors. Energy shed 0.7% amid downgrades of several oil equipment
and services stocks and a 1.7% decline in crude oil prices. Crude oil for April
delivery settled at $46.25 per barrel. Oil prices had actually traded higher in
the early going, but this weekend's OPEC meeting has created a sense of uncertainty
among traders.
The Federal Open Market
Committee (FOMC) will meet March 17-18 to make its latest monetary policy
decision. The FOMC is expected to keep interest rates in the target range of 0%
to 0.25%. Per usual, though, market participants will look for insights into
the FOMC's plans to support financial markets.
This session's economic news
had little effect on trading. February import prices were down 0.2%
month-over-month, which is a softer downturn than the 0.7% decline that was
widely expected.
Meanwhile, the January Trade
Balance showed a $36.0 billion deficit, which is less steep than the $38.0
billion deficit that was expected. A drop in exports slightly offset a drop in
imports. The deficit has narrowed every month since July, revealing an overall
contraction in global trade.
With global trade slowing,
Japan and China indicated they are willing to devise fresh stimulus. That
sentiment helped drive a 5.2% gain in Japan's Nikkei and a 4.4% gain in Hong
Kong's Hang Seng. The MSCI Asia-Pacific Index closed 3.5% higher.DJ30 +53.92
NASDAQ +5.40 NQ100 +0.3% R2K +0.8% SP400 +0.4% SP500 +5.81 NASDAQ Dec/Adv/Vol
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