YAHOO[BRIEFING.COM]:
Commodities and commodity-related stocks logged solid gains this session.
However, profit takers had their way with financial stocks, which undercut the
broader market for virtually the entire session and brought about choppy
trading.
Energy stocks (+1.4%) and materials stocks (+1.4%) were helped by
stronger commodity prices. The CRB Commodity Index climbed more than 5% in this
year's largest single-session advance by percent. Crude oil futures prices
gained 6.5% to close pit trading at $51.25 per barrel, while gold prices
advanced 7.8% to close at $958.50 per ounce.
Underpinning the strength in commodity prices was a considerably
weaker U.S. dollar. According to the Dollar Index, the greenback sank 1.7% this
session, and more than 4% during the last two sessions. The dollar's weakness
follows the Fed's latest policy directive.
Several steel stocks (+7.0%) benefited from stronger underlying
commodity prices and reports that the Treasury will launch a $5 billion program
for car parts suppliers. Shares of autoparts
companies spiked on the news, but the enthusiasm dwindled as the session
progressed. Autoparts and equipment companies still
closed 8.6% higher.
Profit takers focused their efforts on financial stocks (-8.0%),
which were looking overbought after surging 60% in less than two weeks. That
rally carried the broader market to key resistance levels.
The S&P 500 has been unable to crack 800, which is near the
50-day simple moving average for the stock market, and a sort of psychological
line in the sand.
Corporate announcements were relatively mixed heading into trading
this session. Citigroup
(C 2.60, -0.48) has filed to exchange common stock for convertible and
nonconvertible preferred securities, and plans to authorize a reverse common
stock split.
General Electric
(GE 10.13, -0.19) continues working to restore its credibility with investors.
The company held an investor meeting today, during which the company explored
its asset holdings and reaffirmed it expects its troubled
capital arm to post a profit for the first quarter and full year.
Oracle
(ORCL 17.37, +1.54) posted better-than-expected adjusted earnings, issued
upside guidance, and declared its first dividend, winning support for large-cap
tech stocks.
Economic news remains uninspiring. Weekly initial claims dipped
12,000 to 646,000, which was better than the consensus estimate of 655,000.
Continuing claims hit another record high, though, jumping to 5.47 million from
5.29 million.
Leading indicators for February showed a 0.4% decline, which wasn't
as bad as the 0.6% decline that was expected. The report had little impact on
trading. Tomorrow's calendar is relatively light on data.
There are neither economic reports nor market-moving earnings
announcements scheduled for release, though Fed Reserve Chairman Bernanke is
giving a speech about the financial crisis and community banking (12:00 PM ET).
Absent any surprise announcements, the near-term focus will continue to be the
technical picture, with some not-too surprising profit-taking occurring at the
key 800 resistance level in the S&P 500.DJ30 -85.78 NASDAQ -7.74 NQ100
-0.2% R2K -1.1% SP400 -0.6% SP500 -10.31 NASDAQ Adv/Vol/Dec
1198/2.15 bln/1456 NYSE Adv/Vol/Dec 1525/1.95 bln/1557