YAHOO [BRIEFING.COM]: Unable
to push past 1205, the S&P 500 settled just a few points shy of its session
high with broad-based gains.
Stocks were dropped for a 1.7%
loss this past Friday, but buyers showed a willingness to step right back into
the action. Their efforts took more than six out of every seven stocks in the
S&P 500 higher. Such broad-based buying dragged volatility down, such that
the Volatility Index fell nearly 9%.
Materials stocks made up the
only major sector that failed to stage a gain. Instead, they finished flat as
diversified metals and mining plays fell to a 2.3% loss.
Some might be quick to point
to the dollar's 0.6% advance as a cause for the relative weakness of the
materials sector, but the greenback's gain did nothing to derail the broader
market from staging a strong advance. For virtually the entire session both the
dollar and the stock market with strong gains and both finished near their
session highs.
Most of the buck's upturn came
against the yen and the euro. The euro's slide followed news that the European
Union and International Monetary Fund agreed to provide Greece with 110 billion
euros in financial aid. Though that sum exceeds the 45 billion euros that had
originally been proposed, some still wonder whether it would be enough to truly
stem systemic risk in the region, especially as the fiscal health of Portugal,
Italy, Ireland, and Spain remain rather dubious. What's more, Germany remains
hesitant to commit to the recently proposed rescue plan.
Some of the strongest gains
this session were had by small-cap stocks. Collectively, they climbed 2.3%, led
by a surge in Jackson Hewitt (JTX 2.12, +0.44), which
announced a change to its credit agreement.
In other corporate news, Continental
(CAL 22.86, +0.51) and United (UAUA 22.11, +0.51)
agreed to a definitive merger that will give 1.05 shares of UAUA common stock
for each CAL share. The announcement stoked takeover chatter, which helped lift
the Amex Airline Index 2.2%.
Meanwhile, auto makers were
out with their latest monthly sales numbers. Toyota Motor (TM
77.69, +0.60) said that its U.S. sales for April increased 24% year-over-year,
while Honda Motor (HMC 33.68, -0.11) posted for April an
annual increase of almost 13% in U.S. sales. Ford Motor (F
13.30, +0.28) reported that its sales for April were up 25% from the year
before.
Commodities had sported broad
strength for most of the session, but some varied selling late in the
session made for a rather mixed finish that left the CRB Commodity Index to
settle just 0.1% higher.
Crude oil prices had been up
more than 1% at their session high, but traders turned their backs on the
energy component in late afternoon action. Oil prices closed pit trade only
fractionally higher at $86.19 per barrel.
Natural gas was able to remain
strong, however. Contracts closed with the commodity priced 2.3% higher at
$4.00 per MMBtu.
Gold gave up some of its gains
this session. The yellow metal was up as high as $1188.40 per ounce, but it
closed at $1183.30 per ounce with a tepid 0.2% gain.
Silver was better able to hold
on to its gain; it settled a sharp 1.1% higher at $18.84 per ounce.
Economic data was generally
without surprise, but that was mostly because economists had already seen
official first quarter GDP data. Personal income and personal spending for
March increased 0.3% and 0.6%, respectively -- both were in-line with
expectations. However, core personal consumption expenditures were expected to
be flat, but they eked out a 0.1% increase.
Construction spending for
March made a surprise increase of 0.2%. It had been expected to fall by 0.5%.
The ISM Manufacturing Index
for April came in at 60.4, which was essentially on par with the 60.0 that had
been widely expected.
Advancing Sectors: Consumer Discretionary (+2.1%),
Industrials (+2.1%), Financials (+1.8%), Tech (+1.4%), Utilities (+1.3%),
Telecom (+1.1%), Energy (+1.0%), Health Care (+0.6%), Consumer Staples (+0.6%)
Declining Sectors: (None)
Unchanged: Materials DJ30 +143.22 NASDAQ +37.55 NQ100 +1.6%
R2K +2.3%% SP400 +1.6% SP500 +15.57 NASDAQ Adv/Vol/Dec 1978/2.33 bln/747 NYSE
Adv/Vol/Dec 2360/1.18 bln/696