YAHOO [BRIEFING.COM]: Despite
a lower start, the stock market was able to finish a choppy trading session
with modest gains, thanks largely to a rebound in energy stocks. Still, trading
volume was low, suggesting that many investors were sitting on the sidelines.
Less than 1.3 billion shares
traded hands on the NYSE this session, but the lack of participation didn't
stop stocks from concluding the week on a positive note. In turn, stocks logged
a weekly gain of 1.3%.
Energy stocks snapped back
from a 2.1% loss in the prior session to log a 3.0% gain Friday. The energy
sector's rebound was helped along by higher energy prices; natural gas prices
spiked 5.1% to close at $3.55 per contract, while crude oil futures finished
pit trading with oil priced 3.4% higher at $52.84 per barrel.
Still, lower oil prices than
those seen last year are weighing on profits at many oil companies. Such has
been the case for Chevron (CVX 66.87, +0.77), which reported
this morning that its first quarter earnings per share were more than
halved since last year. Shares of CVX were able to finish higher, though.
Strength among energy stocks
provided support to the broader market while the other major sectors traded in
mixed fashion.
Financial stocks attempted to
make an early move from negative territory into the green, but sputtered and
finished the session with a 1.7% loss, worse than any other sector. The
sector's decline came amid weakness in life and health insurers (-3.2%)
following some ugly quarterly results from MetLife (MET 27.45,
-2.30).
MasterCard (MA 172.90, -10.55) also fell under
pressure for posting some disappointing quarterly metrics, even though the
company was still able to top analysts' consensus earnings estimate for the
latest quarter.
Banks came under pressure as
investors became a bit skittish after hearing that results from the
government's bank stress tests won't be released until May 7, which is later
than the May 4 release that was originally planned. The delay comes after
executives at several banks began to debate the test results, which suggests
the government's findings weren't entirely positive. According to The Wall
Street Journal, regulators are expected to disclose potential loss
estimates for individual banks and tally certain results across all tested
banks.
Early cycle stocks were able
to log respectable gains as the industrial sector climbed 1.1% and the
materials sector advanced 0.3%. Their gains have compounded in recent sessions
as many investors attempt to chase stocks they expect to benefit first from an
economic revival.
However, economic conditions
remain dour. Factory orders for March declined 0.9%, which is worse than the
0.6% decline that was widely expected, and February orders were revised lower
to reflect an increase of 0.7%.
Meanwhile, the ISM Manufacturing
Index for April showed continued contraction. It came in at 40.1. However, that
was better than the 38.4 that was expected, and was also up from 36.3 in March.
With economic conditions
continuing to challenge businesses and consumers, Ford (F 5.69,
-0.29) announced April auto sales fell 31.6%, while General Motors (GM
1.81, -0.11) said its US sales fell 34% in April.
As part of an effort to loosen
credit flow and stimulate economic conditions, the Federal Reserve announced
that, starting in June, commercial mortgage backed securities and securities
backed by insurance premium finance loans will be eligible collateral under the
TALF plan. DJ30 +44.29 NASDAQ +1.90 NQ100 +0.2% R2K -0.1% SP400 -0.4% SP500
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