YAHOO [BRIEFING.COM]: Stocks
spent the session chopping along in a relatively narrow trading range. The lack
of direction left the major indices to finish the session in mixed fashion.
The May Existing Home Sales
report was the day's headlining news item, though it failed to produce a
sustainable move in stock prices. Annualized existing home sales for May hit
4.77 million units, which is the highest rate since October, and up 2.4% from
the previous month. However, expectations were set on a 3.0% month-over-month
increase.
Trading was choppy both before
and after the report's release.
Financial stocks finished 1.7%
higher amid optimistic comments from widely followed analyst Richard Bove, who
agreed that buying Citigroup (C 3.01, +0.01) now would be like buying
it in the 1990s. Shares of Citigroup saw some of the most trading volume in the
broader market.
Trading volume in the broader
market was rather paltry as just 1.2 billion shares traded hands on the NYSE.
Still, participants showed
considerable interest in materials stocks (+1.7%), thanks to an uptick in
commodities prices amid a weaker dollar. With the Dollar Index losing 1.3%, the
CRB Commodity Index rebounded 1.5% after dropping 2.7% in the previous session.
Gains were perhaps most
impressive in crude oil futures, which finished 2.6% higher at $69.25 per
barrel after shaking off an early fit of selling pressure. Thanks to the
impressive advance by oil prices, energy stocks saw their gains reach 0.8%.
After trading with relative
strength for the last several sessions, health care stocks faltered a bit
before finishing unchanged. Still, Boston Scientific (BSX 9.51, +0.27) made an impressive move
higher after issuing positive results from a defibrillator test.
Airline stocks fell 1.5%. Boeing (BA 43.87, -3.03) pushed back the first
flight date of its long anticipated 787 Dreamliner. Just last week Boeing
affirmed it would hold the plane's first flight by the end of the second
quarter.
News flow will pick up tomorrow
morning with the release of durable goods orders for May and May new home sales
data. In the afternoon, the FOMC will release its latest policy statement,
which is expected to keep interest rates unchanged, but close attention will be
paid to whether the Fed will be using any new policy tools in its effort to
right the U.S. economy.DJ30 -16.10 NASDAQ -1.27 NQ100 -0.2% R2K -0.6% SP400
-0.4% SP500 +2.06 NASDAQ Adv/Vol/Dec 1075/2.18 bln/1574 NYSE Adv/Vol/Dec
1418/1.21 bln/1577