YAHOO [BRIEFING.COM]: The
stock market slipped in the first few minutes of trading, but was able to
recover and log its best single-session advance by percent in two weeks. The
advance was broad-based as six of the 10 major sectors in the S&P 500
posted a gain.
There wasn't any individual
leader behind the move. Instead, health care (+2.2%), financials (+2.5%),
utilities (+2.3%), and consumer staples stocks (+1.9%) all made impressive
gains.
Health care stocks
outperformed the broader market for the third straight session. The latest
advance came via support from managed care (+6.2%) and healthcare
facilities (+3.9%) amid an increased possibility that healthcare reform is
going to be costlier and less expansive than expected.
The financial sector was
helped by regional banks (+3.2%), which snapped back from the prior session's
marked decline, and consumer finance stocks (+1.0%), which followed the lead of
Discover
Financial (DFS
9.28, +0.37). Discover issued a pleasing quarterly report and had a
relatively encouraging conference call, during which the company stated it will
repay its TARP funds when it is prudent to do so.
Amid ongoing chatter regarding
its intended offer for NRG Energy (NRG 23.81, +1.06) and recent efforts to
restructure its executive lineup and reduce costs, Exelon (EXC 50.42, +1.99) was a leader among
utilities.
Consumer staples stocks were
led by J.M. Smucker (SJM 47.88, +4.24), which posted better-than-expected quarterly earnings
and raised its guidance.
Retailers traded with weakness
for the entire session and finished 1.3% lower. Semiconductor stocks also
lagged, leading the Semiconductor Index to a 1.8% loss. Weakness among
semiconductors weighed on tech stocks (-0.5%) and caused the Nasdaq to
underperform the other headline indices.
Trading volume in the broader
market was exceptionally low this session. Hardly 1 billion shares
exchanged hands on the NYSE this session. Trading volume has averaged 1.5
billion shares during the course of the last 50 sessions.
Nonetheless, this session's
solid, broad-based gains came on the back of the latest jobless claims report,
which indicated that 608,000 initial claims were filed for the week ending June
13. Continuing claims came in at 6.69 million. Initial claims were in-line with
expectations and continue to trend lower, but continuing claims made a surprise
pullback from record highs. However, both numbers remain at disconcerting
levels.
In other economic news, the
Philadelphia Fed Index for June came in with a less dismal-than-expected
reading and leading economic indicators for May increased slightly more than
expected.
Treasuries were knocked
sharply lower after the Treasury Department announced a series of auctions
for next week. The auction will carry amounts that exceed what was expected,
which pressured the benchmark 10-year Note and sent its yield up above 3.8%.
Treasury
Secretary Geithner provided testimony to Congress about financial
regulatory reform. His comments didn't have any meaningful impact on
trading.DJ30 +58.42 NASDAQ -0.34 NQ100 -0.1% R2K +0.5% SP400 +0.7% SP500 +7.66
NASDAQ Adv/Vol/Dec 1403/2.08 bln/1239 NYSE Adv/Vol/Dec 1741/1.09 bln/1263