The stock market moved higher for the third straight session. Stocks tried twice to overtake the technical line at the 1170, but they rolled over after they failed on both attempts. Still, stocks were able to close the session with solid gains. Financials and natural resource plays were steady leaders during the session. Oil and gas equipment stocks advanced 1.7% to help the energy sector secure a 1.1% gain. A 1.5% rise in oil prices to $82.93 per barrel helped.
U.S. data did little for participants this session. Producer prices for February fell 0.6%, which was a sharper drop than expected, but core prices climbed a tame 0.1%, as expected.

FEAR METER: The Volatility Index dropped to a 22-month low. It closed down 5.0% on a positive bias among broader market participants.
Advancing Sectors: Financials, Energy, Materials, Telecom, Consumer Discretionary, Consumer Staples, Tech, Utilities, Industrials, Health Care.
Declining Sectors: None
IN FOCUS: Consumer Price Index, Initial Jobless Claims, Fed Balance Sheet and Money Supply are due out today. FDX earnings report is expected before Thursday’s open and PALM report – after the close.

Investors ignored early economic data. Stocks closed higher after Fed decided to keep interest rates at historic lows and Standard & Poor’s did not downgrade Greece’s credit rating. But the trading volume has been relatively low, suggesting that many investors are on the sidelines. Intel jumped 4% after the chip maker unveiled new processors. General Electric rose 4.5% after the conglomerate said during a conference with analysts that it expects higher profits. The market is deeply overbought in the short-term.

Advancing Sectors: Materials (+1.5%), Financials (+1.3%), Industrials (+1.2%), Utilities (+1.1%), Energy (+0.9%), Tech (+0.7%), Consumer Discretionary (+0.6%), Consumer Staples (+0.4%), Telecom (+0.2%), Health Care (+0.2%)
Declining Sectors: (None)
FEAR METER: The S&P 500 implied volatility inched lower amid extraordinary market optimism.

Investors weighed Moody’s warning about the United States’ AAA rating and a proposed bank regulation. Stocks may see volatility this week in the aftermath of an advance that propelled the market higher in four of the last five weeks. Wal-Mart Stores rose 2.8% after Citigroup upgraded it to “buy” from “hold” and raised its price target to $65 from $54. Philips-Van Heusen will buy fashion brand Tommy Hilfiger.

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

A disappointing consumer sentiment survey weighed on the mood of investors. National Semiconductor served up better-than-expected earnings and an upside forecast, but that did little for the overall semiconductor sector, which finished with a loss of 0.5%. However, upside seen limited.

Advancing Sectors: Industrials (+0.7%), Materials (+0.6%), Consumer Discretionary (+0.2%), Tech (+0.1%)
Declining Sectors: Utilities (-0.7%), Financials (-0.4%), Health Care (-0.4%); Telecom (-0.2%), Energy (-0.1%)
FEAR METER: The S&P 500 implied volatility little changed.

Stocks have been on an upswing lately. Financials showed leadership amid strength in banks. This helped the stock market close at its session high, which is actually in-line with the S&P 500’s 52-week closing high. Weekly jobless claims in-line with expectations. Trade balance for January comes in smaller than expected. Data out of China did little to lift the spirits of global participants. Tech stocks took tentative steps forward. Energy stocks fell in early action on Thursday, as oil dropped below $82 a barrel and the broad market slipped. BP (BP) said it will pay Devon Energy (DVN) $7 billion for exploration rights. Market breadth was positive.

FEAR METER: The market volatility inched lower amid a lack of market-moving headlines.
Advancing Sectors: Financials, Consumer Discretionary, Materials, Health Care, Tech, Telecom, Industrials, Utilities, Consumer Staples;
Declining Sectors: None
IN FOCUS: Retail sales, Reuters/UofM consumer sentiment and business inventories.

Stocks rose Wednesday, with the Nasdaq ending at its highest level in more than 18 months, on strength in the financial services sector and an upbeat report on wholesale inventories. Banks were among the best overall performers in the sector. Bank stocks advanced on upbeat analyst comments and bullish statements from some executives. Citigroup was a strong performer amid news that it has issued a $2 billion trust preferred offering, it also got upbeat analyst comments and bullish statements. Meanwhile, financial analysts gave positive grades to Visa (V) and MasterCard (MA). In the week’s first dose of data neither the Treasury statement nor the wholesale inventory data did anything for stocks. Wholesale inventories for January slipped 0.2% when a 0.2% increase had been expected. Though the decline can undermine GDP, some suggested that it could be indicative of stronger-than-expected demand. The Treasury’s budget statement for February showed a deficit of $220.9 billion, which was essentially in step with the $222.0 billion consensus. Market breadth was positive.

FEAR METER: The market volatility inched higher.
Advancing Sectors: Financials (+1.1%), Tech (+0.8%), Energy (+0.6%), Industrials (+0.4%), Consumer Discretionary (+0.3%), Health Care (+0.1%), Utilities (+0.1%)
Declining Sectors: Consumer Staples (-0.2%), Telecom (-0.1%), Materials (-0.1%)

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.