From Briefing.com: 4:20 pm : Unexpected economic growth out of Germany and France helped set a positive tone this morning, but a generally disappointing batch of U.S. economic data undermined the bias, leaving stocks to trade with modest gains for most of the session.
News that the German and French economies both exceeded expectations by posting second quarter growth of 0.3% brought about broad-based buying overseas and propped up U.S. stocks ahead of the opening bell. However, the positive bias was dialed down following news that the latest round of initial jobless claims were greater than expected at 558,000. That hiked the 4-week moving average up to 565,000 from 556,500. Meanwhile, continuing claims made a larger-than-expected retreat to 6.20 million, but the drop is most likely from unemployed workers losing their benefits.
Total retail sales for July made an unexpected 0.1% decline and sales less autos fell a sharper-than-expected 0.6%. That, combined with elevated jobless claims totals, pressured shares of retailers. However, Wal-Mart's (WMT 51.88, +1.37) better-than-expected earnings and solid outlook provided support to the group and helped it finish 0.3% higher.
With consumers still hesitant to open purse strings, demand for imports remains soft. With that, July import prices fell for their first time since January by declining a steeper-than-expected 0.7% month-over-month. Despite the persistently weak state of things, stocks were able to close near their best levels of the session.
Materials stocks made the best gains, helping the sector advance 2.1%. Steel (+3.0%) and diversified metals and miners players (+4.8%) were underpinned the sector's strength.
Financials were key in the broader market's strong close. The sector tacked on 2.0% amid buying in Bank of America (BAC 17.00, +1.07), which benefited from news that insiders are accumulating positions in the stock and that Paulson & Co. disclosed new positions in the stock. Shares of BAC were among the most active by trading volume this session, though trading volume in the broader market was exceptionally low with fewer than 1 billion shares trading hands on the NYSE.
Defensive-oriented sectors trailed for the entire session. Telecom and utilities both settled 0.2% lower, while health care advanced just 0.1%. Collective weakness among defensive issues actually dragged the broader market into the red in the early going, but buyers quickly stepped in to provide support.
Treasuries made strong gains following a $15 billion auction of 30-year Treasury Bonds. The auction produced a high yield of 4.54% and a bid-to-cover ratio of 2.54, which was above the average of 2.32 for the previous five auctions for 2009. That encouraged enough buying to send the benchmark 10-year Note up nearly one full point and the Note's yield back below 3.6%.DJ30 +36.58 NASDAQ +10.63 NQ100 +0.6% R2K +0.5% SP400 +0.8% SP500 +6.92 NASDAQ Adv/Vol/Dec 1495/2.11 bln/1209 NYSE Adv/Vol/Dec 1999/896 mln/1043
3:35 pm : Materials and financials are leading the broader market this session; they are up 1.9% and 1.7%, respectively.
Precious metals netted gains this session as the dollar moved lower. Both gold and silver futures opened the pit trade higher after the dollar had already made a move to the downside. December gold came off its session highs late in the session to close at $956.50 per ounce, up 0.4%. September silver finished strong, off session lows of $14.82 per ounce, to close at $14.99 per ounce, up 2.7%.
Natural gas futures prices spiked into positive territory and set a fresh session high following a slightly lower-than-expected build in inventories reported this morning. However, these gains were short-lived as the futures sold off for the rest of the session. September natural gas futures closed at $3.33 per contract, down 4.3%, just off session lows.
Meanwhile, September crude oil futures traded in positive territory for almost the entire session and closed up 0.7% at $70.65 per barrel.DJ30 +20.33 NASDAQ +6.42 SP500 +4.71 NASDAQ Adv/Vol/Dec 1354/1.75 bln/1281 NYSE Adv/Vol/Dec 1873/590 mln/1118
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