YAHOO [BRIEFING.COM]: Stocks
finished the day with modest losses after a choppy session, with commodities
and related sectors pacing the downside. The decline in commodities comes
despite weakness in dollar. Market participants also processed the latest dose
of economic data, and prepared for the quarterly reports of a couple of
bellwethers. While broad-based buying in the prior session sent the major
averages to new two-year highs, the tone was less optimistic in today's trade.
Uninspiring initial jobless claims data set this tone before the open. For the
week ended January 8, initial jobless claims totaled 445,000, which is more
than the 415,000 expectation. Continuing claims dropped sharply to a two-year
low of 3.88 million, but that is most likely due to the expiration of unemployment
benefits... The Producer Price Index for December climbed a
sharper-than-expected 1.1%, but core producer prices increased 0.2%, as had
been expected... The November trade deficit received less attention. It totaled
$38.3 billion, which is only slightly changed from the prior month.
Italy and Spain held the most recent auctions in a strong of successful
sovereign debt offerings from the eurozone. While the results spurred Spain's
IBEX sharply higher, the more widely-watched European bourses moved in mixed
fashion as the European Central Bank (ECB) and Bank of England (BOE) both left
their target lending rates unchanged, as expected. The BOE and left its asset
purchase plan unaltered, also as expected... A combination of successful bond
auctions in higher-risk regions, along with comments from ECB President
Trichet, helped the euro trade sharply higher vs. the dollar. The euro is
actually up 1.6% to $1.335. That has helped drive down the Dollar Index to a
~1% loss.
Fed Chairman Bernanke also made some intraday comments on CNBC intraday, noting
that risks are more balanced now, as opposed to the downside a few months ago,
and that 3-4% growth in 2011 seems reasonable. His comments didn't seem to
impact the market. Corporate news flow has been light today, but earnings
season is beginning to pick up with tonight's earnings from Intel (INTC 21.25,
-0.06), which just hit the wires. Shares are +0.40 at ~21.70 in after-hours
after beating consensus on the top and bottom lines, and issuing upside revenue
guidance for Q1. Tomorrow morning, all eyes will be on JPMorgan Chase's (JPM
44.49, -0.22) earnings report before the bell.
Outside of earnings, pharmaceutical giant Merck (MRK 34.65, -2.50) fell more
than 6% following the company's statement on changes to the clinical studies
for vorapaxar, an investigational cardiovascular medicine.
Commodities finished mixed
today, as grains and industrials posted gains, while softs, energy, precious
metals and livestock all lost ground.
Feb natural gas shed 2.8% to
settle at $4.38 per MMBtu. Futures sold off throughout the session following
this morning's inventory data, which showed a smaller than expected draw down.
It closed just above its session lows at $4.37. Feb crude oil shed 0.5% to end
at $91.40 after it sold off heading into the close. It spent most of the
session chopping around the flat line.
Feb gold ended higher by 0.1%
to $1387.00 per ounce, in what was a very uneventful session for the yellow
metal. March silver shed 1.1% to end at $29.26 per ounce.
Advancing
Sectors: Telecom
(+0.4%), Consumer Staples (+0.3%), Industrials (+0.1%).
Declining
Sectors:
Materials (-0.9%), Utilities (-0.8%), Health Care (-0.6%), Financials (-0.3%),
Energy (-0.3%), Tech (-0.2%), Consumer Discretionary (-0.2%).
DJ30 -23.54 NASDAQ -2.04 SP500 -2.20 NASDAQ Adv/Vol/Dec 1136/1919861/1448 NYSE
Adv/Vol/Dec 1361/926773/1623