YAHOO [BRIEFING.COM]: The
S&P 500 rallied from a loss of more than 3% to an incremental gain on
Tuesday. The move began with a technical bounce, gained momentum on the back of
an upbeat consumer confidence figure, then extended the push into the final leg
of trade amid leadership from financials.
Persistent concerns about the
fiscal conditions of Europe and renewed geopolitical tensions between North
Korea and South Korea caused global equity markets to fall sharply as investors
shunned risk and sought safety. With stocks sharply out of favor roughly 95% of
the components in the S&P 500 fell to a loss and the benchmark index
dropped to a six-month low.
However, technical support at
the 1040 line brought about a bounce from the morning low. The rebound gained
upward momentum in the minutes that followed the midmorning release of the May
Consumer Confidence Index, which topped expectations by coming in at a two-year
high of 63.3.
Other data -- including a 0.1%
monthly decline by the March S&P/CaseShiller 20-City Composite and a 0.3%
increase in the FHFA's Home Price Index for March -- had no real effect on
trade. Stocks looked like they were about to stagnate midsession as the S&P
500 ran into resistance at the 1060 line. That proved to be less of a hurdle once
financial stocks started to provide leadership.
Financials found support after
CNBC reported that Representative Frank stated that the financial reform bill's
language regarding derivatives goes too far. The prospect that the proposed
rules on derivatives may be diluted or thrown out helped the financial sector
swing to a gain of 0.8%. It had been down more than 3% at its session low.
Materials stocks made one of
the most dramatic turnarounds. The sector had been down more than 3% at its
session low, but it rallied to finish with a 1.6% gain.
Retailers outperformed for
virtually the entire session to finish with a 1.4% gain. Autozone
(AZO 194.57, +10.32) was a leader after it posted quarterly earnings that
exceeded Wall Street's consensus estimate with ease.
While a few pockets of
strength helped the broader market stage a rally, the headline indices
struggled at the neutral line in the final minutes of trade. However, a final
flurry of buying pushed the broad-based S&P 500 into the green in the
waning moments of trade. Though the Dow and Nasdaq couldn't make it into higher
ground, they still settled near session highs.
The CRB Commodity index closed
1.6% lower this session as greater macro concerns weighed on the broader
market. Grain commodities led the decline in the CRB, as corn and wheat futures
were especially weak.
July crude oil ended lower by
1.7% to $68.75 per barrel, helped lower by the jittery equity markets. June
natural gas finished higher by 0.8% to $4.05 per MMBtu, as it ignored surrounding
markets to close with modest gains.
Precious metals finished the
session with a 0.1% decline, helped mostly by the 1.2% drop in July silver
futures, which closed at $17.78 per ounce. June gold futures settled higher by
0.3% to $1194 per ounce.
The afternoon sprint knocked
Treasuries back a bit. The benchmark 10-year Note saw its yield fall to a near
one-year low of almost 3.10% in the early going, but its yield stood closer to
3.15% at the close. Meanwhile, the 2-year Note finished slightly lower amid
disappointing auction results, which featured a bid-to-cover ratio of 2.9 and
indirect bidder participation of 36.2%. Results from an auction of 5-year Notes
will be released Wednesday afternoon.
Advancing Sectors: Materials (+1.6%), Financials (+0.8%), Consumer
Discretionary (+0.8%), Telecom (+0.2%)
Declining Sectors: Consumer Staples (-1.0%), Utilities
(-0.7%), Health Care (-0.7%), Tech (-0.2%), Energy (-0.1%) DJ30 -22.82 NASDAQ
-2.60 NQ100 +0.00% R2K -0.2% SP400 -0.1% SP500 +0.38 NASDAQ Adv/Vol/Dec 888/2.89
bln/1767 NYSE Adv/Vol/Dec 1118/1.88 bln/1964