YAHOO [BRIEFING.COM]: Blue
chips managed modest gains amid a bevy of better-than-expected earnings, but
the results acted as a positive catalyst for the broader market, which settled
with a strong gain.
The S&P 500 extended its
rebound from the prior session so that it is now less than 1% below the 52-week
high that it tumbled from late last week. Its strength in the latest session
was broad based with all 10 major sectors booking gains.
Broader market strength
coupled with a 0.9% increase in crude oil prices to $83.91 per barrel to take
energy stocks to a 1.9% gain. That was the best of the major indices.
Financials were next in line.
The sector settled 1.3% higher with regional banks up 3.5% following
better-than-expected bottom line results from Marshal & Isley (MI
9.31, +0.90), Regions Financial (RF 8.80, +0.47), and Zions
Bank (ZION 27.42, +1.99).
Goldman Sachs (GS 159.98, -3.34) reported an upside
earnings surprise of its own on the heels of fraud charges by the SEC. As for
the latter matter, Britain's financial regulator started a formal enforcement
investigation into the firm.
IBM (IBM 129.69, -2.54) and Johnson
& Johnson (JNJ 65.99, -0.04) also bested Wall Street's
expectations for the latest quarter, but a lowered forecast from Johnson &
Johnson and dissatisfaction with IBM's margins dampened enthusiasm over the
reports.
Market participants also
showed little interest in upbeat earnings from Coca-Cola (KO
54.47, -0.85) and a dividend hike from Procter & Gamble
(PG 63.19, -0.03). Their subsequent weakness hampered the consumer staples
sector, which closed just 0.1% for the better.
Commodities advanced nearly 1%
this session.
The move to the upside was led
by grains. July wheat futures rose 4%. July Corn futures rose over 2%.
Meanwhile, the energy complex
traded about 1% higher this session. June crude oil closed 0.9% higher at
$83.91 per barrel. June natural gas futures closed 0.8% higher at $3.97 per
MMBtu. June gasoline and heating oil futures closed about 1% higher.
Gold and silver futures ended
higher this session despite the mild strength in the dollar index. June gold
closed 0.3% higher at $1139.20 per ounce; May silver closed 0.5% higher at
$17.82 per ounce.
Still, buying in the broader
market was impressive as stocks climbed for the eighth time in nine sessions
and the Volatility Index dropped by 9.3%. The VIX is now just 3% above the
multiyear low that it hit last week.
Advancing Sectors: Energy (+1.9%), Financials (+1.3%),
Utilities (+1.1%), Consumer Discretionary (+1.1%), Industrials (+0.7%), Telecom
(+0.7%), Tech (+0.4%), Health Care (+0.3%), Materials (+0.2%), Consumer Staples
(+0.1%)
Declining Sectors: (None) DJ30 +25.01 NASDAQ +20.20 NQ100
+0.5% R2K +1.4% SP400 +1.3% SP500 +9.65 NASDAQ Adv/Vol/Dec 2045/2.08 bln/651
NYSE Adv/Vol/Dec 2499/1.13 bln/556