YAHOO [BRIEFING.COM]: Better-than-expected
earnings from industry majors and economic bellwethers like IBM (IBM 115.42, +4.78), Google (GOOG 430.25, -12.35), Bank of America (BAC 12.89, -0.28), Citigroup (C 3.02, -0.01), and General Electric (GE 11.65, -0.75) couldn't dissuade
participants from taking a breather after the stock market's recent run. That
led to a fractional loss for the S&P 500, its first in five sessions, but
the Dow was able to log its fifth straight gain while the Nasdaq made its eighth
straight advance.
Even as participants digested
earnings reports from several widely held companies stocks traded listlessly
within a narrow trading range of just seven points. However, the sideways
action did help the S&P 500 succeed in making its first weekly advance in
more than one month. It climbed 7% this week.
Not even options expirations
could induce volatility. Expected volatility also remains low, which has the
Volatility Index, or VIX, trading below 25, near 10-month lows.
Trading volume didn't really
pick up as a result of options expirations, either. Fewer than 1 billion shares
exchanged hands on the NYSE this session. That's well below the 50-day moving
average of 1.3 billion.
Tech was the session's best
performing sector. It advanced 1.0% amid follow-through buying. The sector's
strength started early this week when a thoroughly impressive report from Intel (INTC 18.79, +0.29) attracted buyers.
Many pundits believe that continued strength among tech stocks will provide the
leadership necessary to take the broader market higher. The stock market has
already climbed to its best level in one month.
On an individual basis, some
of this session's best gains were had by CIT Group (CIT 0.70, +0.29), which surged amid
reports that the company is in talks to stave off bankruptcy by securing
financing with Goldman Sachs (GS 156.84, unch.) and JPMorgan Chase (JPM 36.89, +0.76).
Homebuilders (+2.3%) and home
improvement retailers (+1.3%) made solid gains of their own amid news that
housing starts and building permits data for June came in higher than expected.
Still, annualized starts of 582,000 are roughly half of what they were one year
ago.
On the other side of things,
industrials showed weakness for the entire session. They finished with a 1.5%
loss, worse than any other major sector. DJ30 +32.12 NASDAQ +1.58 NQ100 +0.6%
R2K -0.5% SP400 -0.3% SP500 -0.36 NASDAQ Adv/Vol/Dec 1097/1.90 bln/1534 NYSE
Adv/Vol/Dec 1438/916 mln/1499