YAHOO[BRIEFING.COM]:
Action was choppy and trading volume was light this session, but stocks were
able to close higher for the third straight session.
Financial stocks (+3.7%) finished as the best performing sector
with gains being shared by big and small players alike. American Express (AXP 16.68, +1.48)
was one of the strongest performers in the sector and the Dow, for that matter.
Though the company missed analysts' quarterly estimates, and management expects
write-offs to rise, investors were relieved the company didn't report any truly
horrendous developments. Given the challenges facing financial companies and
consumers, investors have become conditioned to expect lower earnings and
higher accounting charges.
Such was the case with Zions Bank (
Wells Fargo
(WFC 16.19, +0.71) contributed the most leadership to the financial sector,
though. The diversified bank reports its latest quarterly results tomorrow.
Wall Street expects earnings of $0.33 per share.
Healthy gains were also had in the health care sector,
which finished higher after Bristol-Myers
(BMY 23.13, +0.88) and McKesson
(MCK 45.22, +4.82) topped analysts' quarterly earnings estimates. Amgen (AMGN 53.09, -1.32), however,
missed expectations.
Semiconductors also had a solid session, thanks to leadership from
Steel emerged as a strong performer after industry stalwarts
The overall strength in steel helped
advance the materials sector, where Rohm
& Haas (ROH 58.75, +1.65) was a relative leader. Rohm
& Haas fell Monday after Dow
(DOW 13.19, -0.05) reported it would not be closing its offer for Rohm &
Haas by today. Buyout hopes remain alive, though, according to comments by
Dow's chief executive in a CNBC interview. Meanwhile, industry peer DuPont (DD 23.27, +0.09) posted a
worse-than-expected loss for the latest quarter, and lowered its outlook.
However, amid the collapse of the Rohm & Haas - Dow deal, investors were
largely prepared for DuPont's results.
Retail stocks were among the session's weakest performers. The
group traded lower as investors reacted to reports suggesting the National
Retail Federation expects retail sales to fall a 0.5% from last year. Home
improvement retailers (-2.6%) were hit especially hard.
Telecom stocks (-3.0%) logged the worst performance of any sector
in the S&P 500. Verizon (VZ
29.96, -1.03) was a laggard in its space and in the Dow even though its
earnings met expectations. AT&T
(T 25.93, -0.90) traded lower in related weakness; the company is scheduled to
announce its latest earnings results tomorrow morning.
Though the stock market was able to extend its winning streak with
this session's advance, the move seemed to lack conviction as less than
1.2 billion shares traded hands on the NYSE.
More than 35 companies will announce quarterly results ahead of
tomorrow's opening bell, but market participants will be looking forward to the
latest Federal Open Market Committee statement. Now that the fed funds target
ranges from 0.00% to 0.25%, investors will be looking for hints regarding the
committee's methods of steering the economy without using rate cuts.
The latest crude oil inventory data is also due tomorrow. Traders
expect a build of inventory, given persistently weak demand. Demand concerns
seemed to return to focus this session. After crude futures climbed more than
20% last week, traders pushed crude oil futures more than 9% lower this session.
Crude finished near $41.60 per barrel.DJ30 +58.70 NASDAQ +15.44 SP500 +9.14
NASDAQ Adv/Vol/Dec 1679/1.82 bln/1014 NYSE Adv/Vol/Dec 2078/1.17 bln/950