YAHOO [BRIEFING.COM]: The
stock market moved higher for the third straight session; a fresh 52-week high
was set along the way. Though the latest advance was broad based, the stock
market surrendered part of its gain after an encounter with near-term technical
resistance.
Momentum from recent advances
carried over into early action and positioned stocks to extend their gains. The
upward trend only seems to have begotten more buying.
A positive bias among broader
market participants has taken volatility down considerably. As such, the
Volatility Index dropped to a 22-month low. It closed down 5.0%.
The upbeat tone in the broader
market lifted advancing issues at a rate of more than 2-to-1 in the S&P
500. Financials and natural resource plays were steady leaders during the
session.
Financials finished 1.1%
higher. The sector's strength was underpinned by banks, especially regional
banks, which tacked on 2.4% to extend their year-to-date gain to 29.8%.
Meanwhile, oil and gas
equipment stocks advanced 1.7% to help the energy sector secure a 1.1% gain. A
1.5% rise in oil prices to $82.93 per barrel helped. Oil's climb came in the
face of a smaller-than-expected inventory build of 1.01 million barrels for the
week ended Mar. 12. In other oil-related news, OPEC opted to keep output
unchanged at its latest meeting, as had been expected.
Metal mining giant Alcoa
(AA 14.46, +0.66) helped the materials sector stage a 0.7% gain.
Reuters reported that the Italian parliament has approved a decree that offers
favorable conditions to some industrial consumers after Alcoa had recently
threatened to idle smelters in the country.
While buyers kept stocks in
positive territory for the entire session, they couldn't propel the S&P 500
past near-term resistance at the 1170 line. Stocks tried twice to overtake the
technical line, but they rolled over after they failed on both attempts. Still,
stocks were able to close the session with solid gains.
Overseas markets, including
those in both Europe and Asia, also made strong gains in their latest showing.
Their advances followed better-than-expected employment data out of Britain and
minutes from a recent Bank of England meeting that showed committee members
voted unanimously to keep interest rate targets unchanged. Japan's central bank
voted in its latest meeting to keep its own interest rates low and doubled the
amount available under its short-term lending program to 20 trillion yen.
Current Fed Chairman Bernanke
and former Fed Chairman Volcker testified about banking regulation to the House
Committee on Financial Services this afternoon, but neither made any stark
comments.
U.S. data did little for
participants this session. Producer prices for February fell 0.6%, which was a
sharper drop than expected, but core prices climbed a tame 0.1%, as expected.
The US Dollar Index has
rebounded back near the unchanged line, which pushed most commodities modestly
lower.
April crude oil pushed to new
session highs of $83.09 per barrel after trending higher over the last four
hours on weakness in the dollar index. By the end of today's session,
crude closed 1.5% higher at $82.93 per barrel.
Natural gas was weak again for
the second straight session, relative to most of the commodity complex. April
natural gas continued to trade in a narrow range for the second half of today's
trading session. Lows of $4.28 per MMBtu were hit approx. 30 minutes after pit
trading open and it closed just above that level at $4.30, down 1.1%.
Precious metals traded
independently from each other in the last half of today's session with April
gold trending lower and May silver moving higher. Gold ended today's pit
trading session 0.2% higher at $1124.80 per ounce, just above its pit session
low of $1120.90. However, in electronic trading, gold pushed to newer lows for
the day of $1120.90 per ounce. Silver remained in positive territory all session
and regained some losses in the second half of the day, closing 0.6% higher at
$17.455.
Advancing Sectors: Financials (+1.1%), Energy (+1.1%),
Materials (+0.7%), Telecom (+0.6%), Consumer Discretionary (+0.5%), Consumer
Staples (+0.5%), Tech (+0.4%), Utilities (+0.4%), Industrials (+0.4%), Health Care
(+0.1%)
Declining Sectors: (None) DJ30 +47.69 NASDAQ +11.08 NQ100
+0.2% R2K +0.7% SP400 +0.7% SP500 +6.75 NASDAQ Adv/Vol/Dec 1577/2.22 bln/1093
NYSE Adv/Vol/Dec 2161/1.02 bln/886