SPX Hits New High; Financials M(oo)ves Wall St

Bullish Bank Stocks Graze The Greens

The S&P 500 hit a 17-month closing high as rising bank shares led a late rally that lifted stocks on Thursday, more than offsetting worries China may move to cool its overheating economy.

Financial stocks added to recent sharp gains, helped in part by the possibility new banking regulations being studied by Congress could be watered down. The KBW bank index .BKX rose 1.7 percent to a fresh 16-month high of 50.92.

In fact, the Dow Jones Industrial Average (DJIA – 10,611.84) wrapped up the session on the north side of 10,600 for the first time since Jan. 20. The Dow tacked on 44.5 points, or 0.4%, as all but five of its 30 components closed in positive territory. Merck and IBM paced the 25 advancing equities, while 3M Company set the tone for the four laggards. Meanwhile, Exxon Mobil split the difference by ending the day right where it began.

In similar fashion, the S&P 500 Index (SPX – 1,150.24) notched a daily finish north of 1,150 for the first time since Jan. 19, with the index adding 4.6 points, or 0.4%. The SPX finished just fractions of a point below its current annual high of 1,150.45.

Finally, the Nasdaq Composite (COMP – 2,368.46) one-upped its peers by finishing squarely at a new 52-week peak, settling at its highest price since Sept. 2, 2008. The COMP collected a daily gain of 9.5 points, or 0.4%.

Trading action showed the Dow had recovered from an initial wave of selling but hadn't yet made a successful push into positive territory.

The last hour brought buyers into the mix. The S&P 500 (SPX) and Nasdaq Composite (COMP) also posted moderate rallies.

Throughout morning trading the S&P 500 was still near resistance. The afternoon rally put the index back at its former highs but it wasn't enough to secure a decisive breakout.

The COMP, however, did tick to new annual high. All in all, we head into tomorrow with the near-term uptrends still intact. And that is where I will pick up in the morning. Have a nice trading day folks.

Thanks to the day's mixed bag of economic data, crude futures closed nearly flat as bulls and bears played tug-of-war. Earlier this week, black gold gained on news that China imported a robust 4.85 million barrels of crude oil in February. However, today's report of rapidly rising inflation in the emerging country raised concerns that Chinese oil demand could cool during the near term. By the close, crude oil for April delivery eked out a gain of just 2 cents to finish at $82.11 per barrel.

Gold futures also experienced a generally sluggish day of trading. China's inflationary woes applied predictable pressure to the malleable metal, but the front-month contract benefited from a bit of technical support in the $1,100 region. April-dated gold futures wrapped up the day on a gain of 10 cents at $1,102.20 per ounce.

Levels to Watch in Trading:
Dow Jones Industrial Average (DJIA – 10,611.84) - support at 9,000; resistance at 11,000
S&P 500 Index (SPX – 1,150.24) - support at 950; resistance at 1,300
Nasdaq Composite (COMP – 2,368.46) - support at 1,900; resistance at 2,600