As they say in golf, it’s not how, it’s how many.
Investors didn’t show a huge amount of conviction in pushing stocks higher on Thursday, but nonetheless the market posted a win and moved back to their highs of 2011.
The Dow Jones added 20 points to close at 12,062, the Nasdaq rose 4 points to 2754, and the S&P 500 gained 3 points to 1307.
As has been the case recently, it was another last-hour kick that put stocks over the top, when they otherwise traded in the red for much of the day. With Thursday’s rally, stocks essentially regained the few points lost on Wednesday, re-establishing a possible foothold for another leg higher.
This week we’ve spotlighted the interplay between financials and the broader market, and sure enough on Thursday, it was a late push by banks that either helped or joined in the market’s move into the green. The SPDR Financial Select Sector (NYSE:XLF) exchange-traded fund ended flat at $16.61 after being modestly lower all day.
As the slight final gain would attest, it wasn’t a spectacular day for most sectors but merely a small bounceback from Tuesday. The real action this week (after Tuesday’s huge move higher in equities) continues to be in the bond market, where the 10-year note continues to sell off – the yield pushed higher to 3.55%.
Friday brings the Labor Dept.’s unemployment report, which could have a lot to say about whether bond yields continue to break out or return to their recent rangebound ways.
Not that stocks didn’t have outperformers – airlines bounced back Thursday after weeks of selling off after posting generally positive traffic numbers for January.
Retailers also had a strong day after announcing same-store sales results in the morning, particularly those peddling consumer electronics and apparel. Sony (NYSE:SNE), Limited (NYSE:LTD), Ann Taylor (NYSE:ANN) and TJX (NYSE:TJX) all closed significantly higher.
However, drug retailers were generally weaker. CVS Caremark (NYSE:CVS) dropped nearly 5% after a disappointing financial forecast that accompanied its earnings forecast this morning.
Strength also was seen in the precious metals trade – gold and silver mining stocks rose, as did the prices of gold and silver.
Soft commodities, on the other hand sold off. Sugar prices plunged 9% after news that a cyclone hitting Australia was downgraded to a Category 1 storm.
