<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD class=pageDate>Updated: 17-Jun-05 16:34 ET</TD><TD class=brf-smalltext align=right>Major Indices | Intraday Charts: Dow | Nasdaq | S&P500</TD></TR><TR><TD>
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</TD></TR><TR><TD vAlign=top><!-- Content Begin--><TABLE cellSpacing=0 cellPadding=1 width="100%" border=0 xmlns:msxsl="urn:schemas-microsoft-com:xslt" xmlns:user="urn:www.briefing.com"><TBODY><TR class=sectionColor><TD class=rH colSpan=3>The market at 16:20 ET</TD></TR><TR><TD class=rD vAlign=top width="40%" colSpan=2>Dow: +44.42...
Nasdaq: +0.96... S&P: +6.00... </TD><TD class=rD with="60%">NYSE Vol: 1.9 bln.. Adv: 2040.. Dec: 1221
Nasdaq Vol: 2.1 bln.. Adv: 1469.. Dec: 1588</TD></TR><TR><TD height=3></TD></TR><TR class=sectionColor><TD class=rH>Moving the Market</TD><TD class=rL rowSpan=2>
</TD><TD class=rH>Sector Watch</TD></TR><TR vAlign=top><TD class=rD rowSpan=2>10-yr note -3/32 at 4.07%
June consumer sentiment stronger than expected; oil prices surge to new all-time highs above $58.50/bbl
Quadruple-witching options expiration today </TD><TD class=rD>Strong: energy, utilities, financial, consumer discretionary, health care, industrials, consumer staples, telecom svc, homebuilding, biotech, hardware, networking, transportation
Weak: tech, materials, airline, disk drive, software</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=2 width="100%" border=0 xmlns:msxsl="urn:schemas-microsoft-com:xslt" xmlns:user="urn:www.briefing.com"><TBODY><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>16:20 ET </TD><TD class=storyTitle vAlign=top>Dow +44.42 at 10623.07, Nasdaq +0.96 at 2090.11, S&P +6.00 at 1216.96</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] The major averages showed resilience in the face of oil prices hitting record highs, as this year's first increase in consumer confidence helped underpin a floor of buying support that closed virtually every sector in positive territory... The S&P 500 finished above last year's close for the first time since March 8 and the Dow finished at its best levels since March 18 while the Nasdaq, which only eked out a slim gain, was still up 1.3% for the week... Providing even further credence behind the broad-based move to the upside were huge volumes produced by the quarterly expiration of options, index options, futures and single stock futures, known as quadruple-witching... About 15 minutes after the market opened, June consumer confidence, as measured by the University of Michigan index, rose a much better than expected 94.8 (consensus 88.8) versus a May reading of 86.9... Even though the data don't correlate well with consumer spending trends and such an improvement was widely anticipated, investors embraced the improved job market and easing of gasoline prices (in recent months) behind the index's first increase in 2005... Speaking of gasoline, worries that U.S. refineries, despite operating at their highest levels (96.7%) since last July, will not be able to meet growing demand for gasoline sparked a 3.3% surge in oil prices... Crude oil futures ($58.47/bbl +$1.89), which closed at a new all-time high, also got a boost from a security threat at a U.S. consulate in Nigeria and reluctance on the part of traders to hold short positions over the weekend... Be that as it may, investors didn't dwell on an oil rally that could perhaps crimp corporate profit margins and consumer spending and instead focused on leadership within the Energy sector... Also underpinning strong follow-through buying that helped Energy pace the way higher and close the AMEX Oil Index (XOI 912.57) and the PHLX Oil Service Sector Index (OSX 148.82) at historic highs was raised Q2 earnings guidance from Valero Energy (VLO 80.03 +3.34) and reports that CNOOC may make a counter offer for Unocal (UCL 63.64 +2.18)... Even with benchmark yields up about 4 basis points this week, as the 10-year note finished the session down 3 ticks to yield 4.07%, a Smith Barney upgrade on FirstEnergy Corp. (FE 47.06 +1.46) helped Utilities turn in the day's second best sector performance... Financial, however, was a more influential leader to the upside, getting a boost from Bank of America (BAC 46.61 +0.18), which agreed to pay $3.0 bln for a 9% stake in China Construction Bank, and Fannie Mae (FNM 60.15 +1.25), which surged on news that U.S. home sales may hit a fifth straight record in 2005 due to low mortgage rates... Reports suggesting Morgan Stanley (MWD 51.45 -0.45) may reconsider plans to spin off its Discover unit though kept brokerage gains in check... Consumer Discretionary was also a focal point for buyers, benefiting primarily from widespread gains in homebuilders... KB Home (KBH 77.25 +5.00) handily beat analysts' Q2 earnings forecasts and raised FY05 guidance while Smith Barney upgraded several homebuilding stocks (i.e. BZH, HOV, KBH, MTH, PHM and RYL) to Buy... Health Care also provided some leadership, as a rebound in drug stocks and HMOs offset losses in medical equipment after reports that two reported deaths linked to some of Guidant's (GDT 72.46 -1.20) implantable heart defibrillators prompted GDT to recall certain devices... Technology, however, closed just below the flat line amid weakness in Software (-0.4%) and Disk Drive (-1.2%)... The former declined after Adobe Systems (ADBE 31.34 -1.07) issued a disappointing Q3 outlook and disclosed a lawsuit related to its proposed acquisition of Macromedia (MACR 42.07 -1.56) while price war worries in the latter group pressured stocks like STX (-6.6%) and WDC (-7.3%)... Separately, the Q1 current-account deficit widened to a record $195.1 bln (consensus $190.0 bln), up from a revised $188.4 bln in Q4, but the expected shortfall more of an impact on the dollar - which fell against the euro (1.2244) and yen (108.87) - than it did stocks... ..DJTA +0.7%. ..DJUA +1.2%. ..SOX +0.3%. ..DOT +0.1%. ..XOI +2.1%. ..BTK +1.9%. ..Nasdaq 100 +0.1%. ..S&P Midcap 400 +0.2%. ..Russell 2000 +0.1%. ..NYSE Adv/Dec 2040/1221. ..NASDAQ Adv/Dec 1469/1588. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>15:30 ET </TD><TD class=storyTitle vAlign=top>Dow +55, Nasdaq +3, S&P +6.71</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Market continues to put together a solid advance, as stocks hold onto the bulk of today's gains going into the close... Meanwhile, with most of this week's gains being fueled by encouraging economic and earnings data, the recent rally may stall next week as market-moving economic reports will be few and far between and the market focus shifts to Q2 earnings reports... ..NYSE Adv/Dec 2028/1196. ..NASDAQ Adv/Dec 1452/1581. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>15:00 ET </TD><TD class=storyTitle vAlign=top>Dow +43, Nasdaq +1, S&P +5.17</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Major indices continue to hold their own and sport modest gains, as buyers remain an active bunch... However, with nearly every major homebuilder touching a new 52-week high today, due to a strong report from KB Homes (KBH 76.36 +4.11) and some Smith Barney upgrades, investors have been prompted to lock in some profits... Notable homebuilders trading near session lows, in addition to KBH, include MTH (+3.9%), PHM (+3.6%), RYL (+3.0%), BZH (+3.0%), HOV (+2.8%) and LEN (+1.1%)... ..NYSE Adv/Dec 2011/1203. ..NASDAQ Adv/Dec 1430/1588. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>14:30 ET </TD><TD class=storyTitle vAlign=top>Dow +46, Nasdaq +1, S&P +5.56</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] More of the same for stocks, as the indices continue to show resilience in the face of rising oil prices... Even though crude oil futures have touched new intra-day highs around $58.60/bbl (+$2.02), surpassing the previous record of $58.28/bbl (April 4), investors so far appear somewhat comfortable with $50-60/bbl oil... Concern that U.S. refineries, despite operating at their highest levels (96.7%) since last July, will not be able to meet growing demand for gasoline has been the driving force behind today's 3.5% surge... ..NYSE Adv/Dec 2069/1134. ..NASDAQ Adv/Dec 1469/1522. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>14:00 ET </TD><TD class=storyTitle vAlign=top>Dow +51, Nasdaq +3, S&P +6.11</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Market continues to trade at improved levels, but market internals still suggest a mixed bias... As reflected in the A/D line, advancers on the NYSE outpace decliners by a 20 to 11 margin while declining issues on the Nasdaq hold a 15 to 14 edge over advancing issues... The ratio of up to down volume, however, suggests a more positive sentiment at both the Big Board and the Composite... Meanwhile, the major averages continue to trade well above initial support levels but modest buying interest has not been enough to push the Dow and Nasdaq through resistance levels of 10660 and 2095, respectively... ..NYSE Adv/Dec 2004/1152. ..NASDAQ Adv/Dec 1414/1546. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>13:30 ET </TD><TD class=storyTitle vAlign=top>Dow +43, Nasdaq +1, S&P +5.03</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Indices improve their stance somewhat, as the Nasdaq climbs back into the green... The paring of losses in Adobe Systems (ADBE 31.02 -1.39), which has weighed most heavily on the Composite, has been the main catalyst behind the tech-heavy index's recent recovery effort... Other Nasdaq 100 components minimizing losses throughout technology include SANM (+2.0%), EBAY (+1.4%), CSCO (+1.1%), SUNW (+1.0%), SYMC (+0.8%), QCOM (+0.7%), INTC (+0.5%) and DELL (+0.4%)... ..NYSE Adv/Dec 1954/1201. ..NASDAQ Adv/Dec 1383/1558. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>13:00 ET </TD><TD class=storyTitle vAlign=top>Dow +33, Nasdaq -1, S&P +4.18</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Stocks still show little vigor, having barely moved in the last hour, as quarterly options expiration has yet to invite much volatility... Providing more conviction behind today's market action, however, have been huge volumes - a direct result of today's quadruple-witching - as more than 1.0 bln shares have already changed hands at both the NYSE and Nasdaq... ..NYSE Adv/Dec 1919/1214. ..NASDAQ Adv/Dec 1297/1601. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>12:30 ET </TD><TD class=storyTitle vAlign=top>Dow +28, Nasdaq -2, S&P +3.43</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Range-bound trading persists in stocks, as the major averages continue to drift sideways... While today's better than expected read on consumer sentiment has prompted modest follow-through buying interest in equities which could close out the week with a fifth straight day of gains, favorable inflation data - as evidenced in the CPI and PPI data - has been the larger catalyst behind this week's upside moves of 0.9%, 1.3% and 1.1% on the Dow, S&P and Nasdaq, respectively... ..NYSE Adv/Dec 1852/1260. ..NASDAQ Adv/Dec 1245/1619. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>12:00 ET </TD><TD class=storyTitle vAlign=top>Dow +29, Nasdaq -2, S&P +3.65</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Market somewhat mixed midday, as a boost in consumer confidence, spirited industry leadership and early momentum spurred by quadruple-witching options expiration offset surging oil prices... Earlier, the University of Michigan showed that consumer sentiment in June rose for the first time this year, checking in at 94.8 (consensus 88.8) versus a May reading of 86.9... Even though the widely anticipated data don't correlate well with consumption trends, the report has underpinned a floor of buying support that has lifted virtually every sector and so far helped investors deal with rising oil prices... Crude oil futures ($57.90/bbl +$1.32) have surged more than 2.0% amid concerns of insufficient gasoline supplies and reluctance on the part of traders to stay short over the weekend... To that end, Energy remains the best performing sector, benefiting from oil prices at 10-week highs, raised Q2 EPS guidance from Valero Energy (VLO 79.17 +2.48) and reports that CNOOC may make a counter offer for Unocal (UCL 63.52 +2.06)... The Industrials sector has been a bright spot, getting a boost from leaders like GE, UTX, BA and CAT, while Financial has also been an influential leader to the upside... However, reports suggesting Morgan Stanley (MWD 51.64 -0.26) may reconsider plans to spin off its Discover unit has weighed on the brokerage group... Consumer Discretionary has also posted a gain, getting a large lift from homebuilders following KB Home's (KBH 78.49 +6.24) strong Q2 earnings report and several upgrades on homebuilding stocks at Smith Barney... Technology, however, has recently inched into negative territory, due in large part to a 5.1% drubbing in shares of Adobe Systems (ADBE 30.75 -1.66), which issued a disappointing Q3 outlook and disclosed a lawsuit related to its proposed acquisition of Macromedia (MACR 41.37 -2.26)... Separately, the Q1 current-account deficit widened to a record $195.1 bln (consensus $190.0 bln), up from a revised $188.4 bln in Q4, but the expected shortfall has had little impact on stocks... ..DJTA +0.4%. ..DJUA +0.7%. ..SOX +0.1%. ..DOT -0.3%. ..XOI +1.4%. ..BTK +1.9%. ..S&P Midcap 400 -0.2%. ..Russell 2000 -0.2%. ..NYSE Adv/Dec 1842/1245. ..NASDAQ Adv/Dec 1272/1556. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>11:30 ET </TD><TD class=storyTitle vAlign=top>Dow +38, Nasdaq -2, S&P +3.78</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Indices back of their best levels, as the blue chip indices and Nasdaq now trade in split fashion... The Composite, which is still up over 1.0% on the week, has recently slipped below the flat line amid further deterioration in the software space... The S&P, however, which has inched into positive territory for the year and is up roughly 1.5% for the week, has found strong leadership from the likes of GE (+1.1%), CVX (+1.1%) and EMC (+1.3%), as well as several homebuilders following Smith Barney's upgrade on S&P 500 constituents KBH (+7.8%) and PHM (+4.0%)... ..NYSE Adv/Dec 1825/1177. ..NASDAQ Adv/Dec 1322/1467. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>11:00 ET </TD><TD class=storyTitle vAlign=top>Dow +52, Nasdaq +1, S&P +4.85</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Little changed since the last update, as buying remains widespread across most areas... Surrendering to sellers, however, has been the dollar... The greenback has been under pressure against major currencies after the Commerce Dept. showed a larger than expected widening in the Q1 current-account deficit to a record $195.1 bln, up from a revised $188.4 bln in Q4... ..NYSE Adv/Dec 1887/1023. ..NASDAQ Adv/Dec 1340/1369. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>10:30 ET </TD><TD class=storyTitle vAlign=top>Dow +54, Nasdaq +1, S&P +5.15</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Equities still on the offensive as all ten economic sectors remain positive... Energy has paced the way higher amid rising oil prices, raised Q2 guidance from Valero Energy (VLO 79.46 +2..77) and reports that CNOOC is set to make a counter offer for Unocal (UCL 63.45 +1.99)... Technology, however, has only traded modestly higher, as gains in hardware struggle to offset weakness in disk drive, semiconductor and software... The latter group has been under pressure after Adobe Systems (ADBE 30.98 -1.43) posted a disappointing outlook and disclosed a lawsuit related to its proposed acquisition of Macromedia (MACR 41.71 -1.92)... ..SOX -0.2%. ..NYSE Adv/Dec 1866/956. ..NASDAQ Adv/Dec 1316/1275. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>10:00 ET </TD><TD class=storyTitle vAlign=top>Dow +57, Nasdaq +4, S&P +5.77</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Major indices spike higher following a stronger than expected preliminary read on consumer sentiment, but the market just as quickly returns to previous levels... June consumer confidence, as measured by the University of Michigan index, has risen to 94.8, well above expectations of 88.8 and a May reading of 86.9... However, since the data don't correlate well with consumer spending trends and such an improvement was widely anticipated, the overall reaction has been somewhat muted given the market's bullish leanings lately... ..NYSE Adv/Dec 1873/694. ..NASDAQ Adv/Dec 1445/956. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>09:40 ET </TD><TD class=storyTitle vAlign=top>Dow +48, Nasdaq +7, S&P +6.06</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Strong follow-through seen in stocks, as the market opens higher in anticipation of this year's first increase in consumer confidence... Within the next few minutes investors will get a preliminary read on June consumer sentiment (consensus 88.8)... Some of the early upside momentum may also be attributed to quarterly options expiration, in which stock and index futures and options all expire simultaneously... ..NYSE Adv/Dec /. ..NASDAQ Adv/Dec /. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>09:15 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: +4.6. Nasdaq futures vs fair value: +5.5. Still shaping up to be a strong start for stocks, as a bullish bias remains intact... However, investors could see vigorous trading activity across the board as quadruple-witching options expiration may invite increased volatility </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>09:00 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: +3.6. Nasdaq futures vs fair value: +3.5. Stage remains set for a higher open as the futures market continues to trade above fair value... Meanwhile, financial stocks should be in focus after Bank of America (BAC) agreed to pay $3.0 bln for a 9% stake in China Construction Bank while reports suggest Morgan Stanley (MWD) may reconsider plans to spin off its Discover unit... Software should also garner some attention after Adobe Systems (ADBE) beat analysts' Q2 forecasts by a penny but merely issued in-line Q3 guidance while homebuilders could get a boost following KB Home's (KBH) strong Q2 earnings report and several Smith Barney upgrades </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>08:32 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: +3.6. Nasdaq futures vs fair value: +4.0. Futures trade holds relatively steady following economic data, still indicating solid follow-through buying interest for equities... First quarter current account figures have widened to a new record of -$195.1 bln, higher than expectations of -$190.0 bln and versus a revised Q4 figure of -$188.4 bln (from -$187.9 bln) </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>08:00 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: +4.1. Nasdaq futures vs fair value: +3.0. Futures market versus fair value suggesting a higher open for the cash market ahead of a report that may show June consumer confidence increased for the first time this year... However, before the University of Michigan releases a preliminary read on consumer sentiment (consensus 88.8) just after the market opens, it appears investors are anticipating the Commerce Dept. (at 8:30 ET) to show a more reserved widening in the U.S. current account deficit (consensus -$190.0 bln)</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>06:26 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: +3.7. Nasdaq futures vs fair value: +3.5. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>06:25 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] FTSE...5078.90...+33.90...+0.7%. DAX...4605.01...+25.14...+0.6%.</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>06:25 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Nikkei...11514.03...+97.65...+0.9%. Hang Seng...13912.03...+78.50...+0.6%.</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>16:20 ET </TD><TD class=storyTitle vAlign=top>Dow +12.28 at 10578.65, Nasdaq +14.23 at 2089.15, S&P +4.35 at 1210.93</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] The stock market opened in split fashion amid mixed economic data, but leadership from a number of sectors and a rebound in bonds helped the indices close near session highs... Before the open, May housing starts checked in with a modest 0.2% to a 2.009 annual rate (consensus 2.050 mln) while May building permits also missed economists' forecasts, falling 4.6% to 2.050 mln (consensus 2.106 mln)... However, both of the Commerce Dept.'s reports still reflected strong growth in the housing sector, as homebuilders remain on pace to record their best year since 1978... Also providing a floor of support for stocks was benign unemployment data, as weekly jobless claims rose a statistically insignificant 1K to 333K (consensus 330K), marking the fifth straight week the data have been in the narrow range of 330-335K... Meanwhile, an unexpected decline in the June Philadelphia Fed index, which posted its first negative reading (-2.2) since May 2003 and came in well below expectations of 10.0, failed to corroborate the expansion evidenced in yesterday's NY Empire State Index and took some steam out of the market's already lackluster efforts... But since the Philly Fed doesn't provide a consistent read for the national ISM figure, coupled with a six-month outlook suggesting that the slowdown may be temporary and a rebound in bonds, buyers showed enough tenacity to close seven out of ten economic sectors closed higher... The benchmark 10-year note, which got an additional boost following comments from Kansas City Fed President Hoenig, closed up 3 ticks to yield 4.08%... Pacing the way higher for the second consecutive session was Energy, as crude oil futures ($56.58/bbl +$1.01) closed near their best levels of the day... Also surging more than 1.0% was the Materials sector, amid strong follow-through buying interest in gold, copper, aluminum and steel while upside Q2 guidance from Potash Corp. (POT 99.65 +3.31) provided a boost to the nonmetallic mineral mining group... Financial was the most influential leader to the upside, taking advantage of a 1.5% surge in the Brokerage group following Goldman Sachs' (GS 102.45 +3.26) Q2 report... Even though Goldman missed analysts' expectations by $0.19, several analysts - many of which expected profits to decline for the first time in about three years due to declines in trading volatility and slower investment management activity - were out positive on the stock and Goldman's growth prospects throughout the session... Also providing some spirited leadership was Technology, which was strong across the board... Hardware was the best performing sub-sector, surging amid reports that Michael Dell may be interested in licensing Apple Computer's (AAPL 37.98 +0.85) Mac Operating System... Semiconductor was also a focal point after Banc of America upgraded the analog chip sector to Overweight from Neutral and Integrated Device Technology (IDTI 11.51 -1.02) announced plans to acquire Integrated Circuit Systems (ICST 21.77 +2.03) for $1.7 bln... Consumer Discretionary also traded higher, as a 1.3% surge in Homebuilding helped overshadow a 2.1% decline in General Motors (GM 35.37 -0.97)... GM warned the UAW that it may reduce health benefits by as much as $2.0 bln over the next two years unless the UAW agrees to cut costs... Health Care, in focus all day after Pfizer (PFE 28.60 +0.17) announced plans to buy Vicuron Pharmaceuticals (MICU 28.21 +12.41) for $1.9 bln in cash, was also strong... Providing additional sector support was Wyeth (WYE 43.51 +0.32), which received FDA approved for its antibiotic Tygacil, AmerisourceBergen (ABC 68.02 +0.81), which affirmed its FY05 and FY06 EPS outlook, and a 2.4% surge in Biotech... Telecom Services, however, closed lower amid reports that several large MCI Inc. (MCIP 25.69 -0.01) shareholders will solicit proxy cards to vote against MCI's agreed-upon $8.44 bln acquisition by Verizon Communications (VZ 34.94 -0.22)... The Utilities sector was also weak, as valuation concerns sparked consolidation in several utility stocks (i.e. EXC, PEG and AEP) trading near 52-week highs, while Consumer Staples also showed relative weakness, losing some ground after a German court ruled against parts of Wal-Mart's (WMT 49.35 -0.50) ethics code... ..DJTA +1.1%. ..DJUA -0.2%. ..SOX +0.5%. ..DOT +0.6%. ..XOI +1.3%. ..BTK +2.4%. ..Nasdaq 100 +0.5%. ..S&P Midcap 400 +0.9%. ..Russell 2000 +1.1%. ..NYSE Adv/Dec 2197/1086. ..NASDAQ Adv/Dec 1993/1035.</TD></TR></TBODY></TABLE>
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Nasdaq: +0.96... S&P: +6.00... </TD><TD class=rD with="60%">NYSE Vol: 1.9 bln.. Adv: 2040.. Dec: 1221
Nasdaq Vol: 2.1 bln.. Adv: 1469.. Dec: 1588</TD></TR><TR><TD height=3></TD></TR><TR class=sectionColor><TD class=rH>Moving the Market</TD><TD class=rL rowSpan=2>
June consumer sentiment stronger than expected; oil prices surge to new all-time highs above $58.50/bbl
Quadruple-witching options expiration today </TD><TD class=rD>Strong: energy, utilities, financial, consumer discretionary, health care, industrials, consumer staples, telecom svc, homebuilding, biotech, hardware, networking, transportation
Weak: tech, materials, airline, disk drive, software</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=2 width="100%" border=0 xmlns:msxsl="urn:schemas-microsoft-com:xslt" xmlns:user="urn:www.briefing.com"><TBODY><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>16:20 ET </TD><TD class=storyTitle vAlign=top>Dow +44.42 at 10623.07, Nasdaq +0.96 at 2090.11, S&P +6.00 at 1216.96</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] The major averages showed resilience in the face of oil prices hitting record highs, as this year's first increase in consumer confidence helped underpin a floor of buying support that closed virtually every sector in positive territory... The S&P 500 finished above last year's close for the first time since March 8 and the Dow finished at its best levels since March 18 while the Nasdaq, which only eked out a slim gain, was still up 1.3% for the week... Providing even further credence behind the broad-based move to the upside were huge volumes produced by the quarterly expiration of options, index options, futures and single stock futures, known as quadruple-witching... About 15 minutes after the market opened, June consumer confidence, as measured by the University of Michigan index, rose a much better than expected 94.8 (consensus 88.8) versus a May reading of 86.9... Even though the data don't correlate well with consumer spending trends and such an improvement was widely anticipated, investors embraced the improved job market and easing of gasoline prices (in recent months) behind the index's first increase in 2005... Speaking of gasoline, worries that U.S. refineries, despite operating at their highest levels (96.7%) since last July, will not be able to meet growing demand for gasoline sparked a 3.3% surge in oil prices... Crude oil futures ($58.47/bbl +$1.89), which closed at a new all-time high, also got a boost from a security threat at a U.S. consulate in Nigeria and reluctance on the part of traders to hold short positions over the weekend... Be that as it may, investors didn't dwell on an oil rally that could perhaps crimp corporate profit margins and consumer spending and instead focused on leadership within the Energy sector... Also underpinning strong follow-through buying that helped Energy pace the way higher and close the AMEX Oil Index (XOI 912.57) and the PHLX Oil Service Sector Index (OSX 148.82) at historic highs was raised Q2 earnings guidance from Valero Energy (VLO 80.03 +3.34) and reports that CNOOC may make a counter offer for Unocal (UCL 63.64 +2.18)... Even with benchmark yields up about 4 basis points this week, as the 10-year note finished the session down 3 ticks to yield 4.07%, a Smith Barney upgrade on FirstEnergy Corp. (FE 47.06 +1.46) helped Utilities turn in the day's second best sector performance... Financial, however, was a more influential leader to the upside, getting a boost from Bank of America (BAC 46.61 +0.18), which agreed to pay $3.0 bln for a 9% stake in China Construction Bank, and Fannie Mae (FNM 60.15 +1.25), which surged on news that U.S. home sales may hit a fifth straight record in 2005 due to low mortgage rates... Reports suggesting Morgan Stanley (MWD 51.45 -0.45) may reconsider plans to spin off its Discover unit though kept brokerage gains in check... Consumer Discretionary was also a focal point for buyers, benefiting primarily from widespread gains in homebuilders... KB Home (KBH 77.25 +5.00) handily beat analysts' Q2 earnings forecasts and raised FY05 guidance while Smith Barney upgraded several homebuilding stocks (i.e. BZH, HOV, KBH, MTH, PHM and RYL) to Buy... Health Care also provided some leadership, as a rebound in drug stocks and HMOs offset losses in medical equipment after reports that two reported deaths linked to some of Guidant's (GDT 72.46 -1.20) implantable heart defibrillators prompted GDT to recall certain devices... Technology, however, closed just below the flat line amid weakness in Software (-0.4%) and Disk Drive (-1.2%)... The former declined after Adobe Systems (ADBE 31.34 -1.07) issued a disappointing Q3 outlook and disclosed a lawsuit related to its proposed acquisition of Macromedia (MACR 42.07 -1.56) while price war worries in the latter group pressured stocks like STX (-6.6%) and WDC (-7.3%)... Separately, the Q1 current-account deficit widened to a record $195.1 bln (consensus $190.0 bln), up from a revised $188.4 bln in Q4, but the expected shortfall more of an impact on the dollar - which fell against the euro (1.2244) and yen (108.87) - than it did stocks... ..DJTA +0.7%. ..DJUA +1.2%. ..SOX +0.3%. ..DOT +0.1%. ..XOI +2.1%. ..BTK +1.9%. ..Nasdaq 100 +0.1%. ..S&P Midcap 400 +0.2%. ..Russell 2000 +0.1%. ..NYSE Adv/Dec 2040/1221. ..NASDAQ Adv/Dec 1469/1588. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>15:30 ET </TD><TD class=storyTitle vAlign=top>Dow +55, Nasdaq +3, S&P +6.71</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Market continues to put together a solid advance, as stocks hold onto the bulk of today's gains going into the close... Meanwhile, with most of this week's gains being fueled by encouraging economic and earnings data, the recent rally may stall next week as market-moving economic reports will be few and far between and the market focus shifts to Q2 earnings reports... ..NYSE Adv/Dec 2028/1196. ..NASDAQ Adv/Dec 1452/1581. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>15:00 ET </TD><TD class=storyTitle vAlign=top>Dow +43, Nasdaq +1, S&P +5.17</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Major indices continue to hold their own and sport modest gains, as buyers remain an active bunch... However, with nearly every major homebuilder touching a new 52-week high today, due to a strong report from KB Homes (KBH 76.36 +4.11) and some Smith Barney upgrades, investors have been prompted to lock in some profits... Notable homebuilders trading near session lows, in addition to KBH, include MTH (+3.9%), PHM (+3.6%), RYL (+3.0%), BZH (+3.0%), HOV (+2.8%) and LEN (+1.1%)... ..NYSE Adv/Dec 2011/1203. ..NASDAQ Adv/Dec 1430/1588. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>14:30 ET </TD><TD class=storyTitle vAlign=top>Dow +46, Nasdaq +1, S&P +5.56</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] More of the same for stocks, as the indices continue to show resilience in the face of rising oil prices... Even though crude oil futures have touched new intra-day highs around $58.60/bbl (+$2.02), surpassing the previous record of $58.28/bbl (April 4), investors so far appear somewhat comfortable with $50-60/bbl oil... Concern that U.S. refineries, despite operating at their highest levels (96.7%) since last July, will not be able to meet growing demand for gasoline has been the driving force behind today's 3.5% surge... ..NYSE Adv/Dec 2069/1134. ..NASDAQ Adv/Dec 1469/1522. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>14:00 ET </TD><TD class=storyTitle vAlign=top>Dow +51, Nasdaq +3, S&P +6.11</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Market continues to trade at improved levels, but market internals still suggest a mixed bias... As reflected in the A/D line, advancers on the NYSE outpace decliners by a 20 to 11 margin while declining issues on the Nasdaq hold a 15 to 14 edge over advancing issues... The ratio of up to down volume, however, suggests a more positive sentiment at both the Big Board and the Composite... Meanwhile, the major averages continue to trade well above initial support levels but modest buying interest has not been enough to push the Dow and Nasdaq through resistance levels of 10660 and 2095, respectively... ..NYSE Adv/Dec 2004/1152. ..NASDAQ Adv/Dec 1414/1546. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>13:30 ET </TD><TD class=storyTitle vAlign=top>Dow +43, Nasdaq +1, S&P +5.03</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Indices improve their stance somewhat, as the Nasdaq climbs back into the green... The paring of losses in Adobe Systems (ADBE 31.02 -1.39), which has weighed most heavily on the Composite, has been the main catalyst behind the tech-heavy index's recent recovery effort... Other Nasdaq 100 components minimizing losses throughout technology include SANM (+2.0%), EBAY (+1.4%), CSCO (+1.1%), SUNW (+1.0%), SYMC (+0.8%), QCOM (+0.7%), INTC (+0.5%) and DELL (+0.4%)... ..NYSE Adv/Dec 1954/1201. ..NASDAQ Adv/Dec 1383/1558. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>13:00 ET </TD><TD class=storyTitle vAlign=top>Dow +33, Nasdaq -1, S&P +4.18</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Stocks still show little vigor, having barely moved in the last hour, as quarterly options expiration has yet to invite much volatility... Providing more conviction behind today's market action, however, have been huge volumes - a direct result of today's quadruple-witching - as more than 1.0 bln shares have already changed hands at both the NYSE and Nasdaq... ..NYSE Adv/Dec 1919/1214. ..NASDAQ Adv/Dec 1297/1601. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>12:30 ET </TD><TD class=storyTitle vAlign=top>Dow +28, Nasdaq -2, S&P +3.43</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Range-bound trading persists in stocks, as the major averages continue to drift sideways... While today's better than expected read on consumer sentiment has prompted modest follow-through buying interest in equities which could close out the week with a fifth straight day of gains, favorable inflation data - as evidenced in the CPI and PPI data - has been the larger catalyst behind this week's upside moves of 0.9%, 1.3% and 1.1% on the Dow, S&P and Nasdaq, respectively... ..NYSE Adv/Dec 1852/1260. ..NASDAQ Adv/Dec 1245/1619. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>12:00 ET </TD><TD class=storyTitle vAlign=top>Dow +29, Nasdaq -2, S&P +3.65</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Market somewhat mixed midday, as a boost in consumer confidence, spirited industry leadership and early momentum spurred by quadruple-witching options expiration offset surging oil prices... Earlier, the University of Michigan showed that consumer sentiment in June rose for the first time this year, checking in at 94.8 (consensus 88.8) versus a May reading of 86.9... Even though the widely anticipated data don't correlate well with consumption trends, the report has underpinned a floor of buying support that has lifted virtually every sector and so far helped investors deal with rising oil prices... Crude oil futures ($57.90/bbl +$1.32) have surged more than 2.0% amid concerns of insufficient gasoline supplies and reluctance on the part of traders to stay short over the weekend... To that end, Energy remains the best performing sector, benefiting from oil prices at 10-week highs, raised Q2 EPS guidance from Valero Energy (VLO 79.17 +2.48) and reports that CNOOC may make a counter offer for Unocal (UCL 63.52 +2.06)... The Industrials sector has been a bright spot, getting a boost from leaders like GE, UTX, BA and CAT, while Financial has also been an influential leader to the upside... However, reports suggesting Morgan Stanley (MWD 51.64 -0.26) may reconsider plans to spin off its Discover unit has weighed on the brokerage group... Consumer Discretionary has also posted a gain, getting a large lift from homebuilders following KB Home's (KBH 78.49 +6.24) strong Q2 earnings report and several upgrades on homebuilding stocks at Smith Barney... Technology, however, has recently inched into negative territory, due in large part to a 5.1% drubbing in shares of Adobe Systems (ADBE 30.75 -1.66), which issued a disappointing Q3 outlook and disclosed a lawsuit related to its proposed acquisition of Macromedia (MACR 41.37 -2.26)... Separately, the Q1 current-account deficit widened to a record $195.1 bln (consensus $190.0 bln), up from a revised $188.4 bln in Q4, but the expected shortfall has had little impact on stocks... ..DJTA +0.4%. ..DJUA +0.7%. ..SOX +0.1%. ..DOT -0.3%. ..XOI +1.4%. ..BTK +1.9%. ..S&P Midcap 400 -0.2%. ..Russell 2000 -0.2%. ..NYSE Adv/Dec 1842/1245. ..NASDAQ Adv/Dec 1272/1556. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>11:30 ET </TD><TD class=storyTitle vAlign=top>Dow +38, Nasdaq -2, S&P +3.78</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Indices back of their best levels, as the blue chip indices and Nasdaq now trade in split fashion... The Composite, which is still up over 1.0% on the week, has recently slipped below the flat line amid further deterioration in the software space... The S&P, however, which has inched into positive territory for the year and is up roughly 1.5% for the week, has found strong leadership from the likes of GE (+1.1%), CVX (+1.1%) and EMC (+1.3%), as well as several homebuilders following Smith Barney's upgrade on S&P 500 constituents KBH (+7.8%) and PHM (+4.0%)... ..NYSE Adv/Dec 1825/1177. ..NASDAQ Adv/Dec 1322/1467. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>11:00 ET </TD><TD class=storyTitle vAlign=top>Dow +52, Nasdaq +1, S&P +4.85</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Little changed since the last update, as buying remains widespread across most areas... Surrendering to sellers, however, has been the dollar... The greenback has been under pressure against major currencies after the Commerce Dept. showed a larger than expected widening in the Q1 current-account deficit to a record $195.1 bln, up from a revised $188.4 bln in Q4... ..NYSE Adv/Dec 1887/1023. ..NASDAQ Adv/Dec 1340/1369. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>10:30 ET </TD><TD class=storyTitle vAlign=top>Dow +54, Nasdaq +1, S&P +5.15</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Equities still on the offensive as all ten economic sectors remain positive... Energy has paced the way higher amid rising oil prices, raised Q2 guidance from Valero Energy (VLO 79.46 +2..77) and reports that CNOOC is set to make a counter offer for Unocal (UCL 63.45 +1.99)... Technology, however, has only traded modestly higher, as gains in hardware struggle to offset weakness in disk drive, semiconductor and software... The latter group has been under pressure after Adobe Systems (ADBE 30.98 -1.43) posted a disappointing outlook and disclosed a lawsuit related to its proposed acquisition of Macromedia (MACR 41.71 -1.92)... ..SOX -0.2%. ..NYSE Adv/Dec 1866/956. ..NASDAQ Adv/Dec 1316/1275. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>10:00 ET </TD><TD class=storyTitle vAlign=top>Dow +57, Nasdaq +4, S&P +5.77</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Major indices spike higher following a stronger than expected preliminary read on consumer sentiment, but the market just as quickly returns to previous levels... June consumer confidence, as measured by the University of Michigan index, has risen to 94.8, well above expectations of 88.8 and a May reading of 86.9... However, since the data don't correlate well with consumer spending trends and such an improvement was widely anticipated, the overall reaction has been somewhat muted given the market's bullish leanings lately... ..NYSE Adv/Dec 1873/694. ..NASDAQ Adv/Dec 1445/956. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>09:40 ET </TD><TD class=storyTitle vAlign=top>Dow +48, Nasdaq +7, S&P +6.06</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Strong follow-through seen in stocks, as the market opens higher in anticipation of this year's first increase in consumer confidence... Within the next few minutes investors will get a preliminary read on June consumer sentiment (consensus 88.8)... Some of the early upside momentum may also be attributed to quarterly options expiration, in which stock and index futures and options all expire simultaneously... ..NYSE Adv/Dec /. ..NASDAQ Adv/Dec /. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>09:15 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: +4.6. Nasdaq futures vs fair value: +5.5. Still shaping up to be a strong start for stocks, as a bullish bias remains intact... However, investors could see vigorous trading activity across the board as quadruple-witching options expiration may invite increased volatility </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>09:00 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: +3.6. Nasdaq futures vs fair value: +3.5. Stage remains set for a higher open as the futures market continues to trade above fair value... Meanwhile, financial stocks should be in focus after Bank of America (BAC) agreed to pay $3.0 bln for a 9% stake in China Construction Bank while reports suggest Morgan Stanley (MWD) may reconsider plans to spin off its Discover unit... Software should also garner some attention after Adobe Systems (ADBE) beat analysts' Q2 forecasts by a penny but merely issued in-line Q3 guidance while homebuilders could get a boost following KB Home's (KBH) strong Q2 earnings report and several Smith Barney upgrades </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>08:32 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: +3.6. Nasdaq futures vs fair value: +4.0. Futures trade holds relatively steady following economic data, still indicating solid follow-through buying interest for equities... First quarter current account figures have widened to a new record of -$195.1 bln, higher than expectations of -$190.0 bln and versus a revised Q4 figure of -$188.4 bln (from -$187.9 bln) </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>08:00 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: +4.1. Nasdaq futures vs fair value: +3.0. Futures market versus fair value suggesting a higher open for the cash market ahead of a report that may show June consumer confidence increased for the first time this year... However, before the University of Michigan releases a preliminary read on consumer sentiment (consensus 88.8) just after the market opens, it appears investors are anticipating the Commerce Dept. (at 8:30 ET) to show a more reserved widening in the U.S. current account deficit (consensus -$190.0 bln)</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>06:26 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: +3.7. Nasdaq futures vs fair value: +3.5. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>06:25 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] FTSE...5078.90...+33.90...+0.7%. DAX...4605.01...+25.14...+0.6%.</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>06:25 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Nikkei...11514.03...+97.65...+0.9%. Hang Seng...13912.03...+78.50...+0.6%.</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>16:20 ET </TD><TD class=storyTitle vAlign=top>Dow +12.28 at 10578.65, Nasdaq +14.23 at 2089.15, S&P +4.35 at 1210.93</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] The stock market opened in split fashion amid mixed economic data, but leadership from a number of sectors and a rebound in bonds helped the indices close near session highs... Before the open, May housing starts checked in with a modest 0.2% to a 2.009 annual rate (consensus 2.050 mln) while May building permits also missed economists' forecasts, falling 4.6% to 2.050 mln (consensus 2.106 mln)... However, both of the Commerce Dept.'s reports still reflected strong growth in the housing sector, as homebuilders remain on pace to record their best year since 1978... Also providing a floor of support for stocks was benign unemployment data, as weekly jobless claims rose a statistically insignificant 1K to 333K (consensus 330K), marking the fifth straight week the data have been in the narrow range of 330-335K... Meanwhile, an unexpected decline in the June Philadelphia Fed index, which posted its first negative reading (-2.2) since May 2003 and came in well below expectations of 10.0, failed to corroborate the expansion evidenced in yesterday's NY Empire State Index and took some steam out of the market's already lackluster efforts... But since the Philly Fed doesn't provide a consistent read for the national ISM figure, coupled with a six-month outlook suggesting that the slowdown may be temporary and a rebound in bonds, buyers showed enough tenacity to close seven out of ten economic sectors closed higher... The benchmark 10-year note, which got an additional boost following comments from Kansas City Fed President Hoenig, closed up 3 ticks to yield 4.08%... Pacing the way higher for the second consecutive session was Energy, as crude oil futures ($56.58/bbl +$1.01) closed near their best levels of the day... Also surging more than 1.0% was the Materials sector, amid strong follow-through buying interest in gold, copper, aluminum and steel while upside Q2 guidance from Potash Corp. (POT 99.65 +3.31) provided a boost to the nonmetallic mineral mining group... Financial was the most influential leader to the upside, taking advantage of a 1.5% surge in the Brokerage group following Goldman Sachs' (GS 102.45 +3.26) Q2 report... Even though Goldman missed analysts' expectations by $0.19, several analysts - many of which expected profits to decline for the first time in about three years due to declines in trading volatility and slower investment management activity - were out positive on the stock and Goldman's growth prospects throughout the session... Also providing some spirited leadership was Technology, which was strong across the board... Hardware was the best performing sub-sector, surging amid reports that Michael Dell may be interested in licensing Apple Computer's (AAPL 37.98 +0.85) Mac Operating System... Semiconductor was also a focal point after Banc of America upgraded the analog chip sector to Overweight from Neutral and Integrated Device Technology (IDTI 11.51 -1.02) announced plans to acquire Integrated Circuit Systems (ICST 21.77 +2.03) for $1.7 bln... Consumer Discretionary also traded higher, as a 1.3% surge in Homebuilding helped overshadow a 2.1% decline in General Motors (GM 35.37 -0.97)... GM warned the UAW that it may reduce health benefits by as much as $2.0 bln over the next two years unless the UAW agrees to cut costs... Health Care, in focus all day after Pfizer (PFE 28.60 +0.17) announced plans to buy Vicuron Pharmaceuticals (MICU 28.21 +12.41) for $1.9 bln in cash, was also strong... Providing additional sector support was Wyeth (WYE 43.51 +0.32), which received FDA approved for its antibiotic Tygacil, AmerisourceBergen (ABC 68.02 +0.81), which affirmed its FY05 and FY06 EPS outlook, and a 2.4% surge in Biotech... Telecom Services, however, closed lower amid reports that several large MCI Inc. (MCIP 25.69 -0.01) shareholders will solicit proxy cards to vote against MCI's agreed-upon $8.44 bln acquisition by Verizon Communications (VZ 34.94 -0.22)... The Utilities sector was also weak, as valuation concerns sparked consolidation in several utility stocks (i.e. EXC, PEG and AEP) trading near 52-week highs, while Consumer Staples also showed relative weakness, losing some ground after a German court ruled against parts of Wal-Mart's (WMT 49.35 -0.50) ethics code... ..DJTA +1.1%. ..DJUA -0.2%. ..SOX +0.5%. ..DOT +0.6%. ..XOI +1.3%. ..BTK +2.4%. ..Nasdaq 100 +0.5%. ..S&P Midcap 400 +0.9%. ..Russell 2000 +1.1%. ..NYSE Adv/Dec 2197/1086. ..NASDAQ Adv/Dec 1993/1035.</TD></TR></TBODY></TABLE>
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