Stocks failed to extend the advance in afternoon trade. No one wants to be in a vulnerable position if a correction takes place. Still, the major indices finished the session modestly higher. Stocks are just 1% off of their 52-week highs. Texas Instruments announced an improved its earnings outlook. However, the semiconductor company’s shares slipped. Cisco unveiled plans for its new router. The daily chart is approaching the resistance.

Advancing Sectors: Telecom (+1.2%), Industrials (+0.8%), Tech (+0.4%), Financials (+0.3%), Energy (+0.1%)
Declining Sectors: Materials (-0.5%), Utilities (-0.3%), Consumer Staples (-0.2%), Health Care (-0.1%), Consumer Discretionary (-0.1%)
FEAR METER: The implied volatility inched higher.

Investors showed little willingness to step back into the stock market after it advanced more than 3% last week. In addition to the light trade, action was also rather quiet and stocks spent most of the session stuck in a narrow range. Hewlett-Packard did disappoint with its downward revision of first quarter earnings. Research In Motion was a primary leader after it was upgraded. The tech sector has managed to maintain a modest gain as large-cap tech issues like Cisco Systems provide support.

Advancing Sectors: Telecom (+1.1%), Consumer Discretionary (+0.4%), Tech (+0.3%), Financials (+0.2%)
Declining Sectors: Industrials (-0.5%), Health Care (-0.4%), Consumer Staples (-0.4%), Energy (-0.2%), Materials (-0.1%), Utilities (-0.1%)
FEAR METER: The S&P 500 implied volatility remained low.

Stocks spent the entire session in higher ground. The Nasdaq ended at an 18-month high. Apple gained 4% after the company said it would release its iPad tablet April 3. The S&P 500 index is approaching the resistance level.

Advancing Sectors: Financials (+2.0%), Energy (+1.8%), Consumer Discretionary (+1.6%), Industrials (+1.5%), Tech (+1.4%), Materials (+1.4%), Health Care (+1.2%), Utilities (+1.1%), Consumer Staples (+0.5%), Telecom (+0.1%)
Declining Sectors: (None)
FEAR METER: The S&P 500 implied volatility inched lower as large traders bet on the uptrend.

Trade was subdued for most of the session ahead of the nonfarm payrolls report and a stronger dollar acted as an overhang. In other economic news, pending home sales fell 7.6% month-over-month. A 1.0% monthly increase had been expected.

Advancing Sectors: Consumer Discretionary (+1.0%), Financials (+0.9%), Tech (+0.5%), Industrials (+0.4%), Consumer Staples (+0.4%), Telecom (+0.3%), Materials (+0.3%), Utilities (+0.1%)
Declining Sectors: Energy (-0.4%), Health Care (-0.2%)
FEAR METER: The QQQQ implied volatility inched lower as bearish momentum faded away.

The market erased early gains, as relief about the day’s economic news gave way to concerns about the job and manufacturing reports due out over the next two days. The Semiconductor Industry Association reported that worldwide semiconductor sales in January rose 0.3 percent from December. RIMM upgraded. More upside seen.

Advancing Sectors: Materials (+1.0%), Energy (+0.2%), Industrials (+0.2%), Consumer Staples (+0.1%), Tech (+0.1%), Financials (+0.1%)
Declining Sectors: Health Care (-0.5%), Telecom (-0.2%), Utilities (-0.1%)
Unchanged: Consumer Discretionary
FEAR METER: The S&P 500 implied volatility little changed.

The positive tone helped stocks extend the prior session’s advance but broad-based gains faded into the close. The question is whether recovery jitters have been fully discounted by the market. Qualcomm said that it was hiking its dividend by 12% and initiating a new stock buyback program. Investors welcomed the news, propelling the stock up 6.7%. Ford Motor said February sales jumped 43% and outpaced those of General Motors for the first time in 10 years.

Advancing Sectors: Materials (+1.0%), Energy (+0.8%), Utilities (+0.5%), Health Care (+0.4%), Consumer Staples (+0.4%), Financials (+0.3%), Industrials (+0.3%)
Declining Sectors: Telecom (-0.1%), Tech (-0.2%), Consumer Discretionary (-0.3%)
FEAR METER: The S&P 500 implied volatility little changed.

The market started March with a strong, broad-based push to fresh one-month highs in the face of a stronger dollar. Large-cap techs led the rally. Investors welcomed AIG’s $35 billion asset sale. SanDisk was one of the best performers after the company’s improved its outlook. Market breadth was positive.
Advancing Sectors: Materials (+1.6%), Consumer Discretionary (+1.6%), Tech (+1.5%), Utilities (+1.3%), Health Care (+1.0%), Industrials (+1.0%), Energy (+1.0%), Consumer Staples (+0.7%), Telecom (+0.6%), Financials (+0.4%)
Declining Sectors: (None)

FEAR METER: The S&P 500 implied volatilty slipped further as jitters over Greece faded.

Investors showed caution after a surprise drop in existing home sales, a surprise rise in GDP growth and AIG’s worse-than-expected quarterly decline. If we don’t see some improvement in the economic indicators, stocks are most likely going to keep moving sideways. Monday, the Commerce Department releases its January personal income and spending reports before the start of trading. Construction spending, due out after the start of trading.

Advancing Sectors: Financials (+0.7%), Industrials (+0.4%), Consumer Discretionary (+0.2%), Energy (+0.2%), Telecom (+0.2%), Health Care (+0.1%), Tech (+0.1%)
Declining Sectors: Utilities (-0.7%), Consumer Staples (-0.5%)
FEAR METER: The QQQQ implied volatility dropped to the record 17.19 level.

Pessimism among investors was rooted in a disappointing batch of economic data and moderate strength in the dollar. Palm said it expects revenue to fall far below current forecasts due to worse-than-expected sales of its new smartphones. Shares plunged 19% on the forecast. However, the market managed to cut losses as buyers stepped in.
Advancing Sectors: (None)
Declining Sectors: Telecom (-0.4%), Utilities (-0.3%), Financials (-0.3%), Industrials (-0.3%), Tech (-0.2%), Materials (-0.2%), Energy (-0.2%), Consumer Staples (-0.1%), Health Care (-0.1%), Consumer Discretionary (-0.1%)

FEAR METER: The QQQQ implied volatility remained on the low level.

Stocks posted slim gains, lost some steam after a worse-than-expected new home sales report and then turned higher again after the Fed chief pledged to keep interest rates low for the foreseeable future. With the outlook for economic growth and inflation unchanged, the dollar came under pressure and fell to a loss of 0.7% against competing currencies. The weaker dollar lifted dollar-traded commodities. Financial and technology shares were on the rise. JPMorgan led the list of analysts downgrading forecasts on the company. Monthly new home sales numbers disappointed. Retailers also had a strong session. The sector outperformed for the second straight session with a 2.0% gain. Market breadth was positive.

FEAR METER: The market volatility slid on renewed optimism.
STOCKS ON THE MOVE: Printing services firm R.R. Donnelley (RRD) said it is buying Bowne & Co. (BNE), a printer of corporate regulatory filings, in a deal worth $481 million. BNE rallied 60% in unusually-active New York Stock Exchange trading, while RRD shares gained 1%.
BULLISH INDUSTRIES: Financials, Consumer Discretionary, Tech, Industrials, Energy, Health Care, Consumer Staples;
BEARISH INDUSTRIES: Materials;
IN FOCUS: Durable goods, initial jobless claims, Fed’s Bernanke: ‘Monetary Policy and State of Economy’ reports are due out today.