Both the Dow Jones Industrial Average and the S&P 500 set new highs yesterday, but you wouldn’t have guess that from the slow pace of trading. The morning was spent lower due to a quiet news day, but some slightly positive economic news brought in late buyers and the markets closed higher and mixed.

In corporate news, Chevron Corporation (NYSE: CVX) rose following a report that one of its refineries that had previously been reported closed is now operating. And Hewlett-Packard Company (NYSE: HPQ) rose following the award of a $2.5 billion contract from NASA. General Motors Company (NYSE: GM) rose 2.08% on a slew of positive reports from Wall Street analysts. 

Energy was strong with Chesapeake Energy Corporation (NYSE: CHK) up 1.1%, Murphy Oil Corporation (NYSE: MUR) gaining 1%, and Occidental Petroleum Corporation (NYSE: OXY) rising 0.86%. Metal and mining stocks recovered most of Monday’s losses and rose in direct relation to an advance in gold and copper futures.

In economic news, consumer discretionary stocks fell on a dip in the consumer confidence numbers from the Conference Board. Case-Shiller reported that their home-price index showed a decline in prices in October. But according to the Richmond Fed, economic activity in the central Atlantic region expanded at a fast pace. 

Treasurys fell with the 10-year note rising to yield 3.479%, and the 30-year rose to 4.548%. The U.S. dollar rose against the euro, which fell to $1.3119 versus $1.3148 on Monday. 

At the close, the Dow rose 21 points to 11,576, the S&P 500 gained a point at 1,259, and the Nasdaq fell 4 points to 2,663. The NYSE traded 560 million shares, and the Nasdaq traded 291 million. There were slightly more decliners than advancers on the Big Board, but the Nasdaq showed more decliners than advancers by over 1.4-to-1.

Crude oil for February delivery rose 49 cents a barrel to $91.49. The Energy Select Sector SPDR (NYSE: XLE) rose 25 cents to $67.42. December gold rose $22.80 to $1,405.20 an ounce. The PHLX Gold/Silver Sector Index (NASDAQ: XAU) gained 4.39 points to 224.89. Copper rose to another new high with the March contract closing at $4.3280 a pound, up 1.2%.

What the Markets Are Saying

After a sleepy morning of low-volume boredom, stocks popped in the afternoon and despite a last-minute round of mini-profit-taking, generally closed on the plus side. The real winners were oil and other commodities. This has to encourage economists since metals, and especially the industrial metals like copper, aluminum, titanium, etc., are considered harbingers of an economic upturn — in other words, leading indicators.

But there is a fly in the ointment, and that has to do with the rush to buy agricultural commodities since they could be telling us that inflation is coming despite protestation by the Fed that there are no indicators that hint of such a phenomenon. It’s no wonder, when all the Fed considers as an inflationary index is the “core inflation” number, which excludes energy and food. Evidence of another economic indicator: The supply of ostrich meat is increasing in D.C.

Now for some top ETFs for 2011: The first is yesterday’s Trade of the Day, the PowerShares DB Agricultural Fund (NYSE: DBA). The next is Monday’s Trade of the Day, the PowerShares Dynamic Energy Sector Portfolio Fund (NYSE: PXI). And finally, we have our most recent Trade of the Day, the PowerShares DB Base Metals Fund (NYSE: DBB).

Today’s Trading Landscape

To see a list of the companies reporting earnings today, click here.

For a list of this week’s economic reports due out, click here.

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.