YAHOO [BRIEFING.COM]: A drop
by the dollar brought buyers in from the sidelines after stocks had fallen for
three straight sessions. Early support helped the S&P 500 come within just
a couple of points of a new 2009 high, but resistance at current highs left
stocks to gradually pare gains for the remainder of the session.
The Dollar Index erased its
gains from the previous two sessions with a 0.6% fall. Indian Prime Minister
Singh offered support for the greenback, but comments by Chicago Fed President
Evans and St. Louis Fed President Bullard stirred selling pressure against the
currency. Evans made it known that he thinks near-zero interest rates will
remain well into 2010, while Bullard wants to keep the Fed's Mortgage-Backed
Securities program active beyond the first quarter of 2010.
There weren't many
market-moving headlines for participants to digest this session, though the
latest home sales figures proved pleasing. Existing home sales for October made
a sharp 10.1% month-over-month spike, which lifted sales to an annualized rate
of 6.10 million units. The consensus had called for a 2.3% monthly increase to
an annual rate of 5.70 million units. The stronger-than-expected increase in
sales took supply down to 7.0 months, the lowest since February 2007.
All 10 major sectors were able
to put together solid gains as a result of broad-based support. Telecom settled
with the best gains; it advanced 2.6% after AT&T (T 26.78,
+0.76) received positive coverage by Barron's.
The energy sector had been a
leader in the early going. It had benefited from broader market support and a
sharp rise in oil prices, which were also bolstered by the dollar's downturn.
However, energy surrendered some of its advance to finish with a 1.6% gain as
oil prices pulled back to settle with a fractional gain at $77.52 per barrel.
Gold prices maintained steady
strength, though. The precious metal ascended to a new all-time high at
$1174.00 per ounce and closed with a 1.6% gain at $1164.80 per ounce. That sent
gold stocks up 2.1% and the SPDR Gold Trust (GLD 114.29,
+1.35) up solidly.
Treasuries were able to resist
an early selling effort and finish fractionally higher. That put the yield on
the benchmark 10-year at 3.35%, while the yield on the 2-year stands at 0.72%.
Treasuries came into closer focus with the results of a $44 billion auction of
2-year Treasuries. The auction drew a yield of 0.80% and a bid-to-cover ratio
of 3.16, which is better than recent averages.
Overall trading volume on the NYSE
was well below the 50-day moving average of 1.28 billion shares. The light
action is expected to continue with the Thanksgiving holiday coming up on
Thursday.
Advancing Sectors: Telecom (+2.6%), Tech (+1.6%), Energy
(+1.6%), Industrials (+1.5%), Financials (+1.5%), Utilities (+1.4%), Health
Care (+1.1%), Consumer Staples (+1.0%), Consumer Discretionary (+0.9%),
Materials (+0.9%)
Declining Sectors: (None)DJ30 +132.79 NASDAQ +29.97 SP500
+14.86 NASDAQ Adv/Vol/Dec 1911/1.86 bln/772 NYSE Adv/Vol/Dec 2343/980 mln/665