Continued buying helped the
stock market march higher for the third straight session. More impressive was
that steady momentum helped stocks close the session at new highs for the year.
The latest leg of the stock
market's run came with broad-based support and gave the S&P 500 its best
single-session gain in nearly one month.
Strength was most pronounced
in the financial sector, which settled 3.4% higher. Multiline insurers (+5.9%),
diversified banks (+3.1%), and regional banks (+4.9%) were the sector's standouts.
Several widely-held financial companies attempted to win support for their
shares by expressing expectations for their business and the financial industry
at professional conferences.
Despite the impressive closing
prices, stocks actually slipped in the first few minutes of trading. However,
buyers quickly stepped in as stocks hit the unchanged mark after retreating
from opening levels.
Initial gains were helped
along by rallying overseas markets, which helped the Dow Jones World Index,
excluding the U.S., advance 2.0%, its best single-session percentage advance in
more than one month. The upbeat tone was kept intact by some generally solid
economic reports, including an August Consumer Price Index that showed a 0.4%
month-over-month increase, which was a tad higher than the expected 0.3%
increase. Core consumer prices for August increased 0.1% month-over-month, but
that was spot on with the consensus forecast. CPI data for August was much more
tame than the August PPI data that were released yesterday. Meanwhile,
industrial production for August climbed 0.8%, which exceeded the 0.6% increase
that had been widely expected. Capacity utilization for August came in at
69.6%, which was slightly above the 69.0% that was widely expected.
Participants showed continued
favor for commodities, which helped the CRB Commodity Index advance 1.8% as
gold prices settled 1.4% higher at $1020.20 per ounce and silver prices climbed
2.5% to a new 12-month high of $17.43 per ounce. Oil prices jumped 2.2% to
$72.51 per barrel. Not to be outdone, natural gas prices settled 12.2% higher
at $3.77 per contract. Natural gas prices are now up more than 55% from the
7-year lows that were set earlier this month.
Adobe (ADBE 33.35, -2.27) was one of the few
companies to recently announce quarterly earnings results. The company posted
better-than-expected third quarter earnings of $0.35 per share and issued
in-line guidance for the fourth quarter, calling for earnings from $0.33 to
$0.39 per share. The company announced that it will acquire Omniture (OMTR
21.88 +4.56) for $21.50 per share in cash, which values the deal at $1.8
billion. Though participants pushed against shares of ADBE, large-cap tech
still gained 1.4%, based on the Nasdaq 100.
In the face of strong buying
in stocks and commodities Treasuries managed to limit losses. The benchmark
10-year Note finished a modest four ticks lower. It had spent part of the
session in positive territory. DJ30 +108.30 NASDAQ +30.51 NQ100 +1.4% R2K +2.1%
SP400 +2.0% SP500 +16.13 NASDAQ Adv/Vol/Dec 1899/2.76 bln/792 NYSE Adv/Vol/Dec
2543/1.58 bln/513