YAHOO [BRIEFING.COM]: High-volume
buying gave the stock market its best single-session percentage gain in more
than one month. The S&P 500 is now just 1% below its 52-week high, which
was set earlier this week. Strength was steady and broad based for the entire
session.
The positive tone came after
Greece, Portugal, and Spain saw their bond yields contract. Such a development
is suggestive of calmed concern about the fiscal health of those countries, at
least for the time being. The news also drove down the dollar, which closed
with a 0.4% loss against competing currencies.
Gold, a traditional safe
haven, also fell out of favor. The yellow metal closed pit trade priced at
$1158.80 per ounce, down 0.3%.
Oil prices gained 2.3% to
close trade at $85.18 per barrel. Natural gas was pressured by bearish
inventory data; prices settled 8.5% lower at $3.98 per MMBtu.
The divergence in energy
prices did nothing for the energy sector, which finished the session with a
gain of just 0.1%. The sector's relative weakness was largely the result of a
drop by shares of BP Plc (BP 52.56, -4.78) to a multimonth low
amid word that costs to clean up its recent oil spill will be more than
initially expected.
Concern about BP translated
into a gain for Chevron (CVX 82.29, +1.67). The Dow component
helped its case with a near 6% increase in its quarterly dividend. Fellow Dow
component and integrated energy giant Exxon Mobil (XOM 68.66,
-0.53) slipped, though; it came short of the consensus earnings estimate.
Consumer staples giant and Dow
component Procter & Gamble (PG 62.20, -0.97) was
pressured even though it posted an upside earnings surprise. The company's
guidance was a bit tepid, however, and many market participants have come to
expect bottom line beats and upside forecasts.
With a 2.5% spike, financials
were the best overall performers this session. Gains within the sector were
broad, but REITs were especially strong.
There was also a bit of merger
and acquisition news to keep the mood of market participants propped up as Palm
(PALM 5.84, +1.21) announced it will be acquired for $1.2 billion by Hewlett-Packard
(HPQ 52.88, -0.40). The announcement brings to an end speculation
about a takeover of the handset maker.
Commodities were slightly
higher as the dollar sold off this session following its recent gains.
May silver rallied this
session. It closed 2.4% higher at $18.55 per ounce. June gold was unable to
take advantage of the weak dollar; it traded marginally lower for most of the
session and closed down $3.00 at $1158.80 per ounce.
Energy commodities traded 0.9%
lower this session. This is misleading, though. Gasoline, crude and heating oil
all finished noticeably higher. However, natural gas was obliterated this
session following a greater-than-expected inventory build reported this
morning. Natural gas closed 8.5% lower at $3.98 per MMBtu. On the other hand, crude
oil is now up over 5% in less than two sessions. The June contract closed 2.3%
higher at $85.18 per barrel.
Trading volume was strong for
the fourth straight session as 1.4 billion shares exchanged hands on the NYSE.
The pickup in volume is often suggestive of increased conviction among market
participants.
The economic calendar was
sparse ahead of the first quarter GDP reading. The only items were initial
jobless claims and continuing claims. Initial claims for the week ended April
24 totaled 448,000, which is slightly above the consensus estimate of 445,000
initial claims, while continuing claims came in at 4.65 million, which was
higher than the 4.62 million continuing claims that had been widely forecast.
Advancing Sectors: Financials (+2.5%), Industrials (+2.1%),
Consumer Discretionary (+2.1%), Health Care (+1.3%), Tech (+1.0%), Telecom
(+0.8%), Materials (+0.8%), Consumer Staples (+0.4%), Energy (+0.1%)
Declining Sectors: (None)
Unchanged: Utilities DJ30 +122.05 NASDAQ +40.19 NQ100 +1.8%
R2K +2.1% SP400 +1.5% SP500 +15.42 NASDAQ Adv/Vol/Dec 2010/2.99 bln/696 NYSE
Adv/Vol/Dec 2305/1.41 bln/744