YAHOO [BRIEFING.COM]: Jobs
data and a speech from Fed Chairman Bernanke were the focus of early trade, but
it was weakness in the financial sector that threatened to drop the stock
market for its worst percentage loss in more than a month. However, stocks were
able to trim their losses in afternoon trade so that in the end only a mild
loss was suffered.
Stocks were mixed amid a
flurry of headlines this morning, which first featured news that during
December nonfarm payrolls increased by 103,000 and private payrolls increased
by 113,000. They had been expected to increase by 150,000 and 162,000,
respectively.
Some were distracted from the
smaller-than-expected increase by a surprise drop in the headline unemployment
rate to 9.4% from 9.7%, but the drop is most likely due to lower participation,
the expiration of unemployment benefits, and even some seasonality effects.
Fed Chairman Bernanke stated
in a testimony to the Senate Banking Committee that the economic recovery seems
likely to be stronger in 2011 than 2010, but the pace is insufficient to
significantly reduce the unemployment rate.
The tone of trade turned
negative as weakness among financials imbued the broader market. The sector
slid to a loss of more than 2% as bank stocks were undercut by word that the
Massachusetts Supreme Court ruled against Wells Fargo (WFC
31.50, -0.65) and US Bancorp (USB 26.09, -0.20) in a case
regarding the treatment of mortgage securitization by the banks. That has
caused concern about mortgage putbacks among lenders that originated mortgage
loans, but some continue to question whether the Court's decision will carry
implications for bank operations in other parts of the country. Softer selling
in the afternoon left the sector to end the day with a 0.9% loss.
FedEx (FDX 93.15, +0.05) and UPS
(UPS 72.15, -0.34) saw their shares slip on some knee-jerk selling that was
spurred by news of an investigation by the Department of Justice regarding
actions by the firms to block customers from third party shipping consultants
and negotiators. Both stocks recovered.
Earnings season gets under way
next week with the latest from Dow component Alcoa (AA 16.42,
+0.06), but there were a couple of reports out last evening. Immucor
(BLUD 20.96, +1.65) shares set a new eight-month high on the back of
better-than-expected earnings, but Liz Claiborne (LIZ 6.01,
-0.89) posted a miss that sent its shares below their 200-day moving average to
a three-month low.
The dollar ended the day with
up 0.3% against a collection of competing currencies. The greenback gained 2.6%
for the week; that was its best weekly performance since November. Most of the
move has come against the euro, which set today a three-month low of $1.291
after yield spreads widened on the sovereign debt of countries in the
eurozone's periphery. Sovereign debt troubles haven't been as closely followed
by the financial media in recent weeks, but the tenuous conditions in those
countries certainly continues to carry a threat for investors.
The CRB Commodity Index fell
0.4% today. That fed a 2.7% weekly loss, which made for the CRB's worst weekly
performance since mid November.
Silver prices were among this
week's worst performing commodities. The precious metal fell 0.9% to settle
this session at $28.87 per ounce, which left it down 6.7% for the week.
Meanwhile, gold prices lost a more tepid 0.2% to close today's pit trade at
$1368.70 per ounce, but that is 3.7% lower than where it ended last week.
Crude oil prices fell 0.4% to
close pit trade at $88.03 per barrel. That makes for a 3.6% weekly loss. Natural
gas prices were essentially unchanged week over week, but down 0.4% today to
$4.42 per MMBtu.
Advancing Sectors: Energy (+0.7%), Utilities (+0.4%),
Industrials (+0.2%)
Declining Sectors: Financials (-0.9%), Telecom (-0.9%),
Consumer Staples (-0.5%), Tech (-0.3%), Materials (-0.1%), Health Care (-0.1%)
Unchanged: Consumer DiscretionaryDJ30 -22.55 NASDAQ -6.72
NQ100 +0.00% R2K -0.5% SP400 -0.3% SP500 -2.35 NASDAQ Adv/Vol/Dec 968/1.99
bln/1644 NYSE Adv/Vol/Dec 1303/1.09 bln/1661