YAHOO [BRIEFING.COM]: Unmoved
by the latest jobs report, participants traded stocks in low volume and in a
limited range, until a late rally by financial stocks helped take the broader
market to session highs heading into the close. Stocks slipped into the red in
early action due to an absence of leadership.
Participants were content to
let a recent string of gains consolidate after receiving word from the Labor
Department that 663,000 jobs were slashed in March, lifting the unemployment
rate to 8.5% from 8.1%. The data were on par with expectations.
The March ISM Nonmanufacturing
Index was also given a cool response. The index showed continued contraction by
coming in at 40.8, which was a bit worse than the reading of 42.0 that was
widely expected, and down from 41.6 in February.
After falling to a loss of
0.8% stocks began their upward turn, which ran into a couple of resistance
efforts but gathered momentum heading into the close as bids came in from the
sideline, lifting share volume on the NYSE to 1.5 billion shares. That helped
stocks close 1.0% higher at their best levels of the
session, bringing stocks to their best closing level in more than one
month.
Financials underpinned the
late rally effort and closed 4.2% higher as the best performing sector.
Financials had traded in a quiet manner for most of the session, uninspired by
strength in European bank shares, which were bid higher after Royal Bank of Scotland (RBS 9.42, +1.27) indicated it is targeting
considerable annual cost savings and plans to resume dividend payments as soon
as possible.
As has been the case in the
last few sessions, health care (-1.6%) stocks lagged the broader market. The
sector's weakness followed Congress' decision to overhaul healthcare.
Corporate news flow was rather
slow, but better-than-expected quarterly results and upside guidance from Research In Motion (RIMM 59.29, +10.20) helped the Nadsaq
outperform its counterparts. Shares of RIMM were also upgraded by analysts at
Deutsche Bank.
Traditional safe havens were
under pressure this session. Gold prices nearly spent the entire course of pit
trading in the red before closing 1.3% lower at $897.30 per ounce. The
benchmark 10-year Treasury Note fell by more than one full point, lifting its
yield to roughly 2.89%. DJ30 +39.51 NASDAQ +19.24 NQ100 +1.7% R2K +1.3% SP400
+1.7% SP500 +8.12 NASDAQ Adv/Vol/Dec 1631/2.13 bln/1058 NYSE Adv/Vol/Dec
2087/1.48 bln/957