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From Briefing.com: Weekly Recap - Week ending 04-Feb-11The major indices posted sharp gains this week, bolstered by strong earnings reports. The S&P 500 rallied +2.7% in a broad-based advance. Realization that the U.S. economy is improving, the understanding that the Fed isn't going to withdraw its policy support anytime soon and the ability to shake off concerns about Egypt helped bolster stocks.

All 10 of the sectors gained, with eight advancing more than 2%.

Energy (+4.2%) and materials (+4.6%) outperformed thanks to better-than-expected results from Exxon Mobil (XOM, +5.4%) and Dow Chemical (DOW +5.6%).

Defensive sectors underperformed on a relative basis, with consumer staples gaining 0.9% and utilities climbing 0.2%.

A bevy of S&P 500 companies reported earnings this week. Of the 104 S&P 500 components that reported results, 70% topped EPS estimates and 68% topped revenue expectations.

Heavyweight Exxon Mobil reported a solid EPS beat as revenue rose 17.1% y/y. Exxon's advance of +5.4% led fellow energy stocks higher.

Among other Dow components, Pfizer (PFE +6.3%) acted as a positive influence on the market after the pharma giant posted slightly-better-than-expected earnings. Merck (MRK -0.5%) also topped earnings expectations, but traders sold the stock after the company issued fiscal year 2011 EPS guidance that was about 5% below the consensus estimate.

On the downside, CVS Caremark (CVS) sank 6.4% after issuing FY2011 EPS guidance that was about 4% below expectations. In addition, the company withdrew its previous long-term target of high single-digit non-GAAP EPS compound annual growth between 2009 and 2013.

Among big movers, Electronic Arts (ERTS +21.5%) surged 22% after the video game maker posted a bottom line beat and announced a share repurchase plan. JDS Uniphase (JDS +34.5%) was the top percent gainer in the wake of its strong earnings report.

Meanwhile, retailers posted better-than-expected monthly same-store sales results for January. In total, 17 of the 25 companies Briefing.com covers exceeded expectations last month.

In economic news, nonfarm payrolls increased by 36,000 while private sector payrolls increased by 50,000. Both figures were well below the Briefing.com consensus estimates of 148,000 and 163,000, respectively.

Weather issues created a lot of variability in consensus forecasts and a lot of noise around the actual report. On a related note, the BLS indicated the weather kept 886,000 American workers from getting to work in the payroll week.

The headlines for payrolls aren't good, but the market has been slow to take them at face value as a true, and deep, disappointment.

The January report was also clouded by updated population estimates. That explained why the unemployment rate dipped from 9.4% to 9.0% while the labor force participation rate remain unchanged at 64.2%.

As equities rallied, Treasuries on the long end of the curve got hammered. The 10-year interest rate spiked from 3.32% to 3.64%, the highest level since spring 2010.

Commodities gained about 1% as the dollar fell 0.1%.

 
 Index	  Started Week	Ended Week  Change % Change  YTD % 
 DJIA	    11823.70	 12092.15   268.45    2.3    4.4 
 Nasdaq	     2686.89	  2769.30    82.41    3.1    4.4 
 S&P 500	     1276.34	  1310.87    34.53    2.7    4.2 
 Russell 2000  775.40	   800.11    24.71    3.2    2.1