Stocks Advance Despite Late-Day Sales

By ALAN R. ELLIOTT

Indexes squeezed out a second gain for the week after retail sales, jobless claims and a well-received Treasuries auction outflanked worries over rising bond and mortgage rates.

May retail sales rose 0.5% over April, the Commerce Department reported, meeting expectations. But gains were skewed by rising gasoline prices. Excluding fuel, retail sales added only 0.2%.

Retail groups suffered six of the day's 10 deepest losses among the 197 industries tracked by IBD.

The number of workers filing new claims for jobless benefits also slumped unexpectedly last week, extending the recent declines in job losses.


Those numbers triggered an early rally. The market mounted a second surge after bond buyers scooped up yields of more than 4% in the Treasury's $11 billion auction of 30-year bonds.

By the end of the day, the NYSE had pulled off a 1.1% advance. Rising oil and natural gas prices drove its energy index to a 1.6% gain. Chevron (CVX) was among the Dow's biggest high-volume advancers.

The Nasdaq composite held out for a 0.5% gain, after marking a 1.5% high in early afternoon trading. Telecommunications was among its stronger sectors.

Flextronics (FLEX) and Intuitive Surgical (ISRG) led the Nasdaq 100's big-volume movers throughout the day.

The S&P 500 survived a late-day sell-off to end 0.6% higher. The Dow brought up the rear, adding 0.4%. Among the Dow's gainers, Alcoa (AA) moved in the highest volume, thanks to higher aluminum prices.

Volume ended slightly higher on both exchanges.

The session's intraday high knocked off the May 5 and May 20 distribution days logged by the Dow and the S&P 500.

That leaves the Dow, S&P 500 and the Nasdaq with one distribution day apiece.

Steel-related plays got a boost from Keybanc Capital, which upgraded U.S. Steel (X) and Olympic Steel (ZEUS) on an improving market for flat-rolled products.

U.S. Steel added 4%. Olympic jumped 5%, raising its gains so far this week to 29%.

Upgrades from Keefe, Bruyette & Woods and Goldman Sachs helped boost banks, which led the S&P 500 all day. Bank of America (BAC) was the Dow's biggest price percentage gainer.

M&F Worldwide (MFW), a provider of checks and other products to banks and their customers, powered ahead 3.97 to 22.20 in nearly four times its average trade.

Southwestern Energy (SWN) popped 2.84 to 45.19 in powerful trade. That pushed the oil and gas producer to within 14% of its 52-week high.

Neutral Tandem (TNDM), which provides switching services between different wireless carriers, dived 10% in heavy trade.

Chinese mass-market jeweler Fuqi International (FUQI) fell 7% in very heavy trading. But it has been on a torrid streak for a month.