YAHOO [BRIEFING.COM]: Stocks
finished the week on a strong note after a disappointing monthly retail sales
report had initially dampened hope for an extension to the prior session's
surge.
The S&P 500 rallied 3% on
Thursday, but action in the early going suggested that participants were
interested in pocketing some of that gain. The worst Advance Retail Sales
Report in months provided the excuse. Many had expected a modest increase in
May retail sales, but they got a 1.2% drop instead. Sales less autos had also
been expected to make a slight increase, but they fell 1.1% in their worst drop
in over one year.
Stocks got some relief from
the preliminary Consumer Confidence Survey for from University of Michigan. The
survey exceeded expectations for a reading of 74.5 by improving to a two-year
high of 75.5.
Business inventory data for
April had little impact on trade. As had generally been expected, inventories
increased 0.4% for the month.
Given the lack of corporate
news flow, market participants were left to take their cues from the economic
data. However, the conflicting nature of those reports left stocks to trade in
a relatively tight range in lackluster fashion for most of the session.
Soft commodities (+2.1%) led
the CRB Commodities Index higher today. Coffee futures were the largest
contributor to that move; they closed 5.3% higher.
Energy futures finished lower
by 0.2%, as a group. Individually, July crude oil fell 2.2% to $73.78 per
barrel. Worse-than-expected economic data set the commodity's direction of
trade.
Meanwhile, July natural gas
prices gained 2.2% to close at $4.78 per MMBtu. Reports cited forecasts for
warm weather across the Midwest and East as sources of strength. This was the
first session in four that natural gas gained.
As for precious metals, gold prices
closed higher by 0.6% to $1230.20 per ounce. July silver shed 0.6% to finish
the week at $18.23 per ounce.
The major averages were pushed
higher in the final few minutes to settle at session highs, though. The move
was likely helped by the light volume, which often makes for more exaggerated
swings among stocks.
Nonetheless, the Nasdaq netted
a gain of more than 1%. That helped it secure weekly gain of just over 1%. For
comparison, the S&P 500 tacked on a 2.5% weekly gain and the Dow added a
2.8% weekly gain, even though their gains were moderate this session.
Underlying gains were varied. Microsoft
(MSFT 25.66, +0.66) was a steady source of strength for the Nasdaq, while
better-than-expected earnings and upbeat guidance made National
Semiconductor (NSM 14.21, +0.68) a leader in the broader S&P 500.
Strength in MSFT and NSM helped drive the overall tech sector to a 1.1% gain,
which was second only to the materials sector's 1.2% advance.
Health care stocks also saw
strong support. They advanced 0.8% as pharmaceutical plays found favor
following Citigroup's upgrade of Bristol-Myers Squibb (BMY
25.08, +0.44). The stock was also named a top pick among pharmaceutical plays
by Barclays.
Airline stocks saw some of the
best gains. As such, the Amex Airline Index ascended to a 2.5% gain. The index
is now up more than 16% year-to-date, while the S&P 500 is down more than
2% since the start of 2010.
Consumer staples stocks lagged
for the entire session. They closed with a 0.8% loss. Tobacco stocks (-1.3%),
household products (-1.1%), and soft drinks (-0.9%) were among the sector's
worst performing plays.
Advancing Sectors: Materials (+1.2%), Tech (+1.1%), Health
Care (+0.8%), Industrials (+0.5%), Energy (+0.4%), Financials (+0.4%), Telecom
(+0.2%), Consumer Discretionary (+0.2%)
Declining Sectors: Consumer Staples (-0.8%)
Unchanged: Utilities DJ30 +38.54 NASDAQ +24.89 NQ100 +0.9% R2K
+1.4% SP400 +1.1% SP500 +4.76 NASDAQ Adv/Vol/Dec 1888/1.81 bln/752 NYSE
Adv/Vol/Dec 2212/1.04 bln/805