YAHOO [BRIEFING.COM]: Continued
strength in cyclical stocks helped the stock market get off to an impressive
start, but Thursday's trading session concluded in lackluster fashion after
sellers moved against energy and financial stocks.
The stock market began the
session with broad-based strength and climbed as high as 1.7%. The positive
tone followed a deluge of earnings reports, which were generally better than
expected and helped investors look past another dreary dose of weekly jobless
data.
Buyers favored materials
stocks and industrial stocks in the early going. At their highs, the two
sectors were up as much as 3.9% and 3.0%, respectively. Materials finished with
a gain of 3.0%, while industrials closed 0.7% higher.
The interest in materials and
industrials compounded their recent gains, which have been underpinned by the
belief that such early cycle stocks will be the first to recover when economic
conditions improve. That argument has pushed materials stocks up 16% in the
past month and industrial stocks up 19% in the past month.
Trading volume picked up in
the final few minutes of the session to come in-line with recent trends. Until
that time, the apparent lack of conviction in the broader market's climb
seemed to enable sellers to rally around energy and financial
stocks and cause the broader market to buckle. Many expected money
managers and investors to increase their involvement this session by partaking
in some end-of-month window dressing.
Energy finished as the worst
performing sector by closing with a 2.1% loss. Oil and gas drillers (-3.5%)
were some of the weakest performers, but weakness in integrated energy plays
like Exxon Mobil (XOM 66.67, -1.77) caused the most damage in the sector, due to
their market weight. Exxon Mobil faltered after reporting earnings results that
missed analysts' expectations.
Financials fell under pressure
as investors pushed back against bank stocks, which led gains in the prior
session. Financials closed 0.8% lower.DJ30 -17.61 NASDAQ +5.36 SP500 -0.83
NASDAQ Adv/Vol/Dec 1335/2.79 bln/1360 NYSE Adv/Vol/Dec 1672/1.74 bln/1373