YAHOO [BRIEFING.COM]: The
stock market made its way to fresh 2009 highs before paring its gains in
afternoon trading. Despite the weak close, stocks were still able to log solid,
broad-based gains with advancing issues outnumbering decliners by 3-to-2 in the
S&P 500.
The session's advance was
strongest among utilities stocks, which climbed 2.0%. Gains were also
impressive among energy stocks, which finished 1.8% higher.
The advance by energy stocks
came as crude oil prices extended their recent run, thanks partly to an improved
2009 global oil demand forecast from the International Energy Agency. Oil
prices settled 1.8% higher at $72.60 per barrel, a fresh closing high for the
year.
A weaker U.S. dollar also
provided a boon for oil, as well as other commodities. With the greenback
shedding 1.1% against a basket of major foreign currencies, the CRB Commodity
Index tacked on 2.0%.
Weakness in the dollar
intensified after an auction of 30-year Bonds carrying a yield of 4.72% was met
with a bid-to-cover ratio of 2.7. The results kicked up buying among
Treasuries, sending the benchmark 10-year Note higher and the Note's yield
lower. Ahead of the open the 10-year Note had been yielding nearly 4%, but it
closed with its yield below 3.9%. The 30-year Bond saw its yield pull back to 4.7%.
Higher borrowing costs
associated with higher yields have caused concern that an economic rebound
could get choked off, with particular challenges for the housing industry.
According to Bankrate.com, the overnight average for a 30-year fixed mortgage
stands at 5.74%, up from last week's 5.35%.
Economic data had little
impact on trading this session. According to the latest Advance Retail Sales
Report, both total retail sales and retail sales less autos increased 0.5%,
which marked the first increase in three months. Total sales were in-line with
expectations, while sales excluding autos were actually stronger than expected.
Still, such discretionary
spending is expected to be challenged in coming months as workers struggle to
find employment. As such, continuing unemployment claims climbed to a new
record high. However, some are encouraged by the continued decline in initial
weekly jobless claims. DJ30 +31.90 NASDAQ +9.29 NQ100 +0.1% R2K +0.5% SP400
+0.6% SP500 +5.74 NASDAQ Adv/Vol/Dec 1723/2.49 bln/966 NYSE Adv/Vol/Dec
1866/1.22 bln/1167