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[BRIEFING.COM] The major averages bounced back nicely in the wake of Wednesday's modest consolidation efforts, this time embracing a sell-off in oil prices and getting some validation about the strength of the consumer amid solid April same-store sales growth across the board.

Yesterday gasoline futures lost 4.0% while crude oil futures lost 3.0% after the EIA showed that demand for gasoline was flat last week as inventories rose for the first time in more than two months; but the market failed to take advantage. Today, however, follow-through selling sparked by yesterday's unexpected build in gas supplies continued to weigh on prices across the energy complex, alleviating some worries about higher energy bills crimping discretionary spending.

Speaking of consumption, even in the face of a 13% surge in prices at the pump last month, retailers in April posted a 6.5% increase in same-store sales as Easter came later, incomes were higher and the weather was warmer. That was the strongest showing since May 2004 according to Lazard. Notable names included Costco (COST 55.53 +1.57), which topped forecasts with a 7% rise in April comps, teen retailers American Eagle (AEOS 33.61 +1.08) and Abercrombie & Fitch (ANF 63.26 +2.92), which posted gains of 19.0% and 17.0%, respectively, and Gymboree (GYMB 32.87 +1.80), a suggested Active Portfolio holding which blew away forecasts again with 19% year/year comps growth. Coupled with plummeting oil prices, investors lifted virtually every industry into positive territory as the Dow Industrials enjoyed its best close in six years and came within 280 points away from an all-time high.

The Dow Transports fared even better, recording their biggest one-day rally since July 2005 and closing at historic levels. Plunging energy prices and a 70% rise in Q1 profits at Expeditors International (EXPD 103.80 +16.04) were contributing factors that also helped the Industrials sector turn in the day's best performance. A fivefold surge in Q2 profits at Tyco International (TYC 27.92 +0.98) provided additional sector support and helped keep the S&P 500 on pace for an 11th straight quarter of double-digit profit growth.

Among the other eight economic sectors posting gains, Materials extended its 12% year-to-date performance as a weaker dollar and concerns about inadequate supplies helped copper futures hit another record high and lifted gold prices back to their best levels since 1980. Technology also provided some notable leadership to the upside, fueled by follow-through buying in semiconductor and a rebound in Microsoft (MSFT 23.44 +0.27) spurred by reports of a new targeted advertising offensive against Google (GOOG 394.75 +0.58). Chip stocks got a boost from a 2.7% surge in Applied Materials (AMAT 18.55 +0.49) Wall Street believes its agreement to acquire Applied Films (AFCO 28.03 +5.06) complements AMAT's existing business and presents new growth opportunities.

Financial also showed relative strength, benefiting from multiple upgrades on Franklin Resources (BEN 90.40 +1.73) as the Treasury market sat firmly in a holding pattern, temporarily stalling continued interest-rate worries that have been at the heart of the market's inability to sustain a convincing advance. Even though evidence that accelerating wage growth, supported by a 2.5% rise in labor costs in this morning's preliminary read on Q1 productivity, may raise concerns that Fed tightening has further to go than expected, bond traders waited for tomorrow's employment data to dictate whether or not the economy is growing too fast.

Consumer Staples eked out a small gain as Whole Foods Market (WFMI 70.42 +8.27) boosting its 2006 sales guidance after posting strong earnings, Costco's strong comps, and record results from CVS Corp. (CVS 30.32 +0.32) helped offset an analyst downgrade on Archer Daniels Midland (ADM 40.00 -3.32) which prompted investors to lock in some of the stock's 69% year-to-date gain as one of this year's biggest winners. Energy, however, extended yesterday's consolidation efforts amid further deterioration in the price of crude and was the only sector that didn't participate in Thursday's recovery effort.
NYSE Adv/Dec 2014/1215...Nasdaq Adv/Dec 18887/1129