YAHOO [BRIEFING.COM]: Better-than-expected
economic data helped to bring about broad-based buying, which took the S&P
500 to fresh highs for the year and helped it close above the psychologically
significant 1000 mark for the first time since November.
The ISM Manufacturing Index
made its seventh straight increase by coming in at 48.9 for June. While the
sub-50 reading still connotes contraction in the manufacturing sector, the
reading was still better than what had been expected.
Construction spending data for
June made a surprise 0.3% increase. It was expected to fall 0.5%. The data was
released at the same time as the ISM, so the pair of pleasing reports helped to
fend off an early challenge from sellers, who had actually halved the stock
market's opening gains.
Emboldened buyers helped to
prop up the broader market, but materials stocks provided the most leadership
and saw the richest gains. The sector's 3.5% advance was helped along by a
sharp rise in steel stocks (+6.5%) and diversified metals and mining stocks
(+8.0%).
Sharply higher commodity
prices provided a catalyst for the run by basic materials stocks. The CRB
Commodity Index spiked 3.4% and is now up more than 9% during the course of the
past three sessions. A weaker dollar helped the case for commodities.
Oil prices jumped 3.0% to
$71.53 per barrel. That's the highest price for oil in one month. Energy stocks
responded by jumping 2.3%.
Financial stocks also saw
solid buying interest. They finished 2.7% higher and were early leaders in the
broader market, thanks to encouraging midyear reports from Barclays (BCS 22.15, +1.61) and HSBC (HBC 54.50, +3.80). Both banks provided
leadership to the European bourses.
Earnings announcements didn't
have much of an impact on trading this session, mostly because many bellwethers
have already reported. Nonetheless, Humana (HUM 33.76, +0.91) reported an upside
earnings surprise, but that wasn't enough to lift other managed care providers
(-0.6%).
In other corporate news, Ford (F 8.33, +0.33) reported its first uptick
in monthly sales results since 2007 by registering a 2.3% increase in June.
Treasuries were under pressure
for the entire session. The benchmark 10-year Note shed more than a full point
to put its yield above 3.6%.DJ30 +114.95 NASDAQ +30.11 NQ100 +1.5% R2K +1.6%
SP400 +2.1% SP500 +15.15 NASDAQ Adv/Vol/Dec 1880/2.17 bln/791 NYSE Adv/Vol/Dec
2542/1.21 bln/522