YAHOO [BRIEFING.COM]: Large-cap
tech issues gave a modest lift to the Nasdaq, but the broader market finished
flat after interest in a better-than-expected consumer confidence report
dissipated.
A stronger-than-expected
improvement in the May Consumer Confidence Index to 52.5 further improved what
was already a generally positive tone in the early going. Though gains were
modest, the morning advance was broad based.
However, the mood among market
participants deteriorated as the dollar made a move up from negative territory
to finish with a 0.3% gain against competing currencies. The greenback's gain
was somewhat restricted by strength in the British pound, which garnered
support amid news that Britain's fourth quarter GDP was upwardly revised to
reflect a 0.4% increase.
Still, credit analysts at
S&P remain concerned about Britain's fiscal deficit. Such concern offers
another reminder that even historically stable global economies face sovereign
debt challenges. To its credit, though, France's AAA rating was affirmed by
Fitch analysts, who also said the outlook for France's grade is stable.
Strength in the dollar dragged
down the broader market, but tech stocks showed resilience. That gave the
sector a 0.5% gain and helped the Nasdaq edge out its counterparts.
Apple (AAPL 235.83, +3.44) was a primary leader
in its space after reports indicated that the company is developing a network
that will enable its highly coveted iPhone to team with more companies than
just AT&T (T 25.95, -0.56). The news dropped shares of T,
but Verizon (VZ 31.23, +0.78) staged a strong gain.
Financials were part of the
reason that the broader market struggled to post a gain. The sector, which is
second to tech by market weight, finished with a 0.7% loss. That made it the
worst performing sector in the S&P 500. Diversified financial services
stocks (-1.3%) were the weakest performers in the sector; they were also among
the most actively traded names by volume in the entire market.
Commodities were also little
changed this session. They finished 0.3% higher, collectively. May Crude oil
chopped above the $82 level for most of the session. It closed 0.2% higher at
$82.37 per barrel. After bouncing off a 6-month low at $3.85 per MMBtu, May
natural gas actually closed 1.5% higher at $3.98 per MMBtu this session.
Natural gas futures had been down 30% since mid-February and 36% since early
January. Strength in the dollar this morning caused precious metals to trade
modestly lower this session. April gold closed down 0.5% at $1104.50 per ounce
while May silver closed down 0.3% at $17.33 per ounce.
Overall trading volume was
underwhelming once again as fewer than 1 billion shares traded hands on the
NYSE. The low-volume trade has been consistent in recent weeks as
participants continue to take a cautious stance, wary of jumping in or out of
the market for fear of a correction or missing further gains.
Advancing Sectors: Tech (+0.5%), Materials (+0.2%),
Industrials (+0.2%), Health Care (+0.1%), Consumer Staples (+0.1%)
Declining Sectors: Financials (-0.7%), Telecom (-0.4%),
Utilities (-0.2%)
Unchanged: Energy, Consumer Discretionary DJ30 +11.56 NASDAQ
+6.33 NQ100 +0.3%% R2K +0.3% SP400 +0.1% SP500 +0.05 NASDAQ Adv/Vol/Dec
1446/2.07 bln/1246 NYSE Adv/Vol/Dec 1552/907 mln/1462