YAHOO [BRIEFING.COM]: Stocks
had run into resistance at their 200-day moving average during the prior
session, but this time the broader market staged a strong, steady climb past
that key technical line to settle at a three-week high.
The tone to trade was positive
for the entire session. Initial strength was underpinned by continued support
for the euro, which was sent another 0.9% higher to $1.234 following a
successful debt offering from Spain and Ireland. The success of that offering
suggested that even in the face of continued concerns about tenuous fiscal
conditions in Europe there is still an appetite for risk. A positive reaction
among Europe's major bourses also helped perpetuate a positive tone among
market participants.
Broad-based buying helped
stocks build upon their strong start. In fact, all 10 major sectors garnered
support; each finished with a gain in excess of 1%.
Industrial stocks saw the
strongest move. As a group they swung to a 3.0% gain as all 57 members of the industrial
sector settled in positive territory. Illinois Tool (ITW
46.78, +1.13) was among them. The company reaffirmed an in-line earnings
forecast for fiscal 2010.
Tech provided some of the most
leadership, though. The sector, which is the largest by market weight, advanced
2.9%. Semiconductor and semiconductor equipment stocks collectively surged
5.5%, according to the Philadelphia Semiconductor Index.
Energy stocks ascended to a
2.7% gain. Even BP Plc (BP 31.40, +0.73) found favor in the
face of negative political rhetoric and continued questions about its dividend.
The company also had its debt downgraded by analysts at Fitch.
Only a handful of stocks
failed to make gains this session. Best Buy (BBY 38.56, -2.49)
and GameStop (GME 20.71, -1.17) were among the losers. Best
Buy's weakness was rooted in an earnings miss for the latest quarter, but the
company gave details of a plan to exchange gift cards for video game trade ins.
The game exchange plan is what pressured shares of GameStop.
Overall, some 98% of stocks in
the S&P 500 staged a gain. Such extensive strength sent the S&P 500 to
its best level in three weeks and up through its 200-day moving average, which
had stood around 1108. On a few separate occasions during recent weeks the stock
market had only encountered resistance at its 200-day moving average.
Continued weakness in the
dollar index helped support the broader commodities market, as the CRB
Commodities Index gained 1.4%.
Energy was the session's
largest gainer, led by a 3.5% rally in July natural gas, which closed at $5.18
per MMBtu. Concerns about a busy Atlantic hurricane season as well as forecasts
for hot weather once again supported natural gas prices. July crude oil gained
1.8% to settle at $76.94 per barrel, on the back of the weaker dollar as well
as the strength in global equity indices.
Precious metals had a much
more modest move higher today, finishing with a 0.8% gain. August gold futures
closed the session higher by 0.7% to $1234.00 per ounce, while July silver
ended higher by 0.9% to $18.57 per ounce.
There wasn't a whole lot of
trading volume behind this session's move, though. Specifically, trading volume
on the NYSE this session was 1.16 billion shares, which is below the 50-session
average of 1.45 billion shares.
Advancing Sectors: Industrials (+3.0%), Tech (+2.9%),
Energy (+2.7%), Financials (+2.6%), Materials (+2.6%), Consumer Discretionary
(+2.4%), Utilities (+2.0%), Health Care (+1.7%), Telecom (+1.6%), Consumer
Staples (+1.1%)
Declining Sectors: (None) DJ30 +213.88 NASDAQ +61.92 NQ100
+2.8% R2K +2.5% SP400 +2.4% SP500 +25.60 NASDAQ Adv/Vol/Dec 2151/2.25 bln/532
NYSE Adv/Vol/Dec 2622/1.16 bln/442