YAHOO [BRIEFING.COM]: Despite
some encouraging economic data, stocks had a listless session and made another
lackluster finish. Nonetheless, the major indices managed to eke out a
fractional gain, which means that the Dow has finished higher seven straight
times.
There weren't any individual
leaders for the broader market this session, but retailers (+0.7%) did garner
support following better-than-expected earnings and an upside forecast from Dollar Tree (DLTR 50.13, +2.23) and Williams-Sonoma (WSM 17.21, +1.74). Home improvement
retailers (+1.4%) also gained, but their strength was owed to an encouraging
new home sales report.
Annualized new home sales for
July hit 433,000 units, which is well above the 390,000 that had been expected.
What's more, the 9.6% month-over-month increase for July is the sharpest rise
since 2005. That helped bring inventory down to a 7.5 month supply from an 8.5
month supply.
The better-than-expected new
home sales report brought about a broad-based buying effort that took stocks to
their best levels of the session. However, gains were capped as buyers seemed
unwilling to chase stocks higher. That left the major indices to drift lower.
With participants sitting on
the sidelines the rest of the day's news items didn't have much of an impact on
the overall market. As such, participants were essentially unimpressed by
news that durable goods orders made their sharpest increase in two years by
spiking 4.9% in July. Economists had called for a 3.0% increase. Though the
increase exceeded expectations, the results were generally the result of the
Cash for Clunkers program. Excluding autos, durable goods orders increased
0.8%, which was largely in-line with expectations.
Stocks did drift to afternoon
lows following news that an auction of 5-year Treasuries produced a high yield
of roughly 2.49% and a bid-to-cover ratio of approximately 2.5. A lack of
conviction behind the selling effort enabled the stock market to make its way
back to neutral territory.
The lack of interest on the
part of participants was also made evident by the lack of trading volume this
session. Hardly 1 billion shares traded hands on the NYSE.DJ30 +4.23 NASDAQ
+0.20 NQ100 -0.2% R2K +0.1% SP400 -0.1% SP500 +0.12 NASDAQ Adv/Vol/Dec
1392/2.08 bln/1262 NYSE Adv/Vol/Dec 1429/1.05 bln/1561