YAHOO [BRIEFING.COM]: Market
participants were initially uninspired by mixed results from Alcoa, but
interest in tech plays ahead of Intel's latest report helped the broader market
muster a fractional gain. A slight dip by the dollar helped, too.
First quarter results from Dow
component Alcoa (AA 14.34, -0.23) unofficially marked the
start earnings season last evening. Alcoa posted adjusted earnings of $0.10 per
share, which was in-line with the consensus estimate, but earnings quality was
questioned due to smaller-than-expected revenue.
Fellow Dow component JPMorgan
Chase (JPM 45.87, -0.27) is scheduled to report its latest quarterly
results tomorrow morning, ahead of the opening bell. The stock closed at a
session low, however.
Regional bank stocks were
especially weak. The group fell 2.0% following the decision by analysts at UBS
to downgrade KeyCorp (KEY 8.14, -0.20), Huntington
Banc (HBAN 5.69, -0.34), and Regions Financial (RF
8.34, -0.40).
Meanwhile, analysts at Credit
Suisse won favor for educational services plays with an upgrade of DeVry
(DV 71.73, +6.67) and ITT Educational (ESI 119.20,
+10.42). Shares of the pair set fresh 52-week highs.
Participants chased Intel
(INTC 22.76, +0.22) to a fresh 52-week high ahead of its post-close
earnings announcement. Shares of the semiconductor giant helped give the
Philadelphia Semiconductor Index a 0.6% gain and helped the Nasdaq Composite
find a fractionally improved 52-week high.
The broader S&P 500 had
its gains capped as it continues to encounter resistance at 1200. Still, the
benchmark index was able to rebound from a midmorning loss that briefly took it
below near-term support at 1190. That slide came as the Dollar Index turned a
modest loss into a slight gain, but stocks recovered as the buck's bounce
proved unsustainable.
The CRB Commodity Index closed
with a 0.4% gain, thanks partly to a sharp bounce in natural gas prices.
Contract prices for the energy component climbed 3.5% to $4.15 per MMBtu.
Oil prices pared losses to
settle at $84.01 per barrel, down 0.4%. Oil prices had been down some 2% at
their session low.
Precious metals fell in tandem
as gold prices closed pit trade 0.8% lower at $1152.80 per ounce and silver
prices settled 0.9% lower at $18.25 per ounce.
In other commodity-related
news, the Baltic Dry Index (BDI) advanced 0.6% in its latest session. That gain
marked only the second time in 19 sessions that the BDI staged an advance.
Volatility ramped up this
session. Specifically, the Volatility Index spiked nearly 8% before it finished
the session 3.5% higher. The rebound followed a 30-month low in the prior
session.
Treasuries had a quiet, but
relatively solid session as the benchmark 10-year Note continued its gradual
climb. The yield on the Note now stands slightly above 3.80% after it had been
just above 4.00% last week.
Advancing Sectors: Consumer Discretionary (+0.6%), Tech
(+0.3%), Industrials (+0.3%)
Declining Sectors: Energy (-0.5%), Utilities (-0.4%),
Materials (-0.3%), Telecom (-0.2%)
Unchanged: Health Care, Financials, Consumer Staples DJ30
+13.45 NASDAQ +8.12 NQ100 +0.4% R2K +0.3% SP400 +0.4% SP500 +0.82 NASDAQ
Adv/Vol/Dec 1375/2.53 bln/1295 NYSE Adv/Vol/Dec 1549/1.05 bln/1481