YAHOO [BRIEFING.COM]: Early
buying spurred strong, broad-based gains among stocks, but action quickly
steadied so that the broader market spent the session moving sideways in a
narrow range. Though that didn't make for much excitement, the advance was
interesting in that it held firm despite a strong bounce by the U.S. dollar.
Moderate weakness in the
greenback drove the Dollar Index to an early loss of 0.3%, which helped win
support for stocks and keep all 10 major sectors in positive territory for the
entire session.
The greenback gradually turned
its loss into a 0.4% gain, though. That marked the fifth straight advance for
the Dollar Index. The move undercut commodities considerably, sending the CRB
Commodity Index from a 0.6% gain to a 0.5% loss, but it didn't disrupt the
gains made by stocks.
Even with commodity prices
pressured, materials stocks still booked a gain of 1.2%. Diversified metals and
mining players (+2.0%) were a primary source of strength amid an upgrade of Alcoa
(AA 15.73, +1.15) by analysts at Morgan Stanley.
Financials concluded the
session as the best performing sector. They advanced 1.5% as diversified banks
booked a 2.3% gain after Barron's published an article that portrayed major
U.S. banks in positive light.
Meanwhile, continued support
for large-cap tech drove the Nasdaq Composite to a fresh 52-week high. Intel
(INTC 20.09, +0.46) was a primary leader in that move; it also hit its
own 52-week high, thanks partly to an upgrade from analysts at Barclays.
Health care had been one of the
better performing sectors in the early going, but scaled back its advance a
bit. It still finished 1.1% for the better as participants responded favorably
to news that Senate Democrats have come closer to moving past Republican
objections to health care reform.
Global pharmaceutical Sanofi-Aventis
(SNY 39.07, -0.04) made news this morning with the announcement that
it will pay $93.50 in cash for each outstanding share of Chattem
(CHTT 93.14, +23.16).
Chattem, which makes
over-the-counter personal care products, won some support for smaller consumer
staples plays as participants speculated over which companies could also become
takeover candidates, but larger consumer staples stocks weighed on the sector.
Consumer staples stocks, as a group, still settled with a 0.8% gain.
Walgreens (WAG 36.61, -0.03) was a primary laggard
among consumer staples stocks. Though the company announced this morning
better-than-expected adjusted earnings of $0.52 per share for the latest
quarter, it wasn't enough to please its investors.
ConAgra (CAG 22.03, -0.13) had a similar struggle.
It also brought in better-than-expected adjusted earnings of $0.52 per share
for the latest quarter, but even went on to increase its expected earnings for
fiscal 2010 to $1.73 per share, up from $1.70 per share. That still wasn't
enough to win it favor, though.
Despite the relative weakness
of a few consumer staples stocks, the broader market booked a solid gain.
Nearly 90% of its components were able to stage an advance. Such support
for stocks drove Treasuries sharply out of favor. In turn, the benchmark
10-year Note dropped more than one point to send its yield to a four-month
high. It settled with its yield near 3.68%.
Advancing Sectors: Financials (+1.5%), Consumer
Discretionary (+1.3%), Materials (+1.2%), Energy (+1.1%), Tech (+1.1%), Health
Care (+1.1%), Telecom (+0.9%), Consumer Staples (+0.8%), Industrials (+0.7%),
Utilities (+0.4%)
Declining Sectors: (None)DJ30 +85.25 NASDAQ +25.97 NQ100 +1.2%
R2K +1.3% SP400 +1.4% SP500 +11.58 NASDAQ Adv/Vol/Dec 1814/1.84 bln/914 NYSE
Adv/Vol/Dec 2193/1.01 bln/844