YAHOO [BRIEFING.COM]: Thanks
to a late-session surge, the stock market closed at its session high with a
gain of 6.3%. Though the rally was impressive, stocks still finished the week
8.4% lower due to heavy losses earlier in the week.
Those heavy losses prompted
bargain hunters to bid stocks higher. Whether the push was merely rooted in
short-term interest or marked a true turning point for the stock market will
only be seen in time.
The move was supported by
relatively heavy volume. Nearly 2.4 billion shares traded hands on the New York
Stock Exchange this session, compared with average volume of 1.5 billion shares
this month.
Despite the strong finish,
stocks traded in mixed fashion throughout much of the session, and struggled to
find direction. During that time the financial sector stood out as a notable
laggard. At one point the financial sector was down 7.5%, which marked the
sector's lowest level since 1995. However, it finished 3.4% higher.
Weakness in the financial
sector stemmed from the large-cap names included among other diversified
financial services companies (-3.8%), such as Citigroup (C 3.75, -0.96). Speculation continues to
surround Citi's fate. Reports indicate the financial services giant is weighing
its strategic options, but the stock extended its downturn and fell through the
prior session's low to its worst level since 1992.
While financials lagged,
energy posted the largest advance. Energy finished the session 11.7% higher. A
2% rebound in crude oil futures helped give energy a lift. Crude settled around
$50.40 per barrel, though it actually fell to a new multiyear low of $48.25 per
barrel midway through the session.
It appeared that Dell (DELL 9.30, -0.51) was going to provide
stocks with some support after it posted better-than-expected earnings per
share results for the third quarter. However, shares fell under pressure as
investors and analysts critiqued the quarterly report.
The tech sector still finished
with a 5.8% gain, though, thanks largely to strength among large-cap tech
stocks.
The renewed interest in stocks
caused Treasuries to fall substantially, especially at the long end of the
curve. The 10-year Note fell 49 ticks, while the 30-year Bond dropped 117
ticks. The downturn reverses some of the gains Treasuries made in the prior
session.
Investors got a little bit of
clarity regarding the future face of the Treasury team; President-Elect Obama
has nominated New York Fed President Geitner for Treasury Secretary. Obama is
expected to announce the rest of his economic team Monday.DJ30 +494.13 NASDAQ
+68.23 NQ100 +4.7% R2K +5.5% SP400 +5.9% SP500 +47.59 NASDAQ Adv/Vol/Dec
1781/3.12 bln/1170 NYSE Adv/Vol/Dec 2019/2.37 bln/975