YAHOO [BRIEFING.COM]: Stocks
tried to rally back from another stiff selling effort, but the broader market's
inability to extend beyond the neutral line led stocks to waver into the close.
Sellers attempted to take
control of trade right away. Their efforts were motivated by worries that China
might have to tighten monetary policy to contain inflation after the country
reported that its economy expanded at a torrid clip of 9.8% in the fourth
quarter. Some stepped in with a bid that took the S&P 500 and the Dow back
to the neutral line, but resistance there encouraged sellers to redouble their
efforts.
For the second straight
session the Nasdaq was hit the hardest. At its session low, the tech-rich Index
was down 1.4%. The S&P 500 was down 0.8% and the Dow was down 0.7% at their
worst levels of the day. Selling pressure began to ease midsession, though
there wasn't any headline to account for the shift in sentiment. Amid the
improved tone stocks staged a gradual climb in afternoon action, but neither
the Dow nor the S&P 500 could do more than briefly poke into positive
territory before drifting into the close.
eBay (EBAY 30.78, +1.68) was one of the few
strong performers in the Nasdaq today. Its near 6% surge followed
better-than-expected earnings and strong guidance. Fell Nasdaq component Google
(GOOG 626.77, -4.98) was weak ahead of its latest report.
Morgan Stanley (MS 29.02, +1.27) was a standout in the
broader market, thanks to an upside earnings surprise. It led the financial
sector to a 0.5% gain, even though regional lenders like FifthThird (FITB
14.22, -0.39) and PNC Financial (PNC 61.00, -0.81) lagged
following strong results of their own.
Freeport McMoRan (FCX 110.90, -4.26) also tumbled after it
reported better-than-expected earnings. It was caught up in a push against
basic materials stocks, which collectively fell to a 1.5% loss.
There was a substantial dose
of data to digest this morning. It included news that initial jobless claims
for the week ended January 15 came in at 404,000, which is below the 425,000
initial claims that had been widely expected. The week-over-week decline took
the four-week moving average down to 411,750. As for continuing claims, they
fell to 3.86 million from 3.89 million.
Existing home sales for
December spiked 12.3% to an annualized rate of 5.28 million units. Not only is
that better than the rate of 4.80 million units that had been widely expected,
but it was also the highest rate since Spring.
Leading indicators for
December increased by 1.0%. That bested the 0.6% increase that was widely
expected, but it remained on level with what had been recorded for the prior
month.
The Philadelphia Fed Index for
January was a bit disappointing. It came in at 19.3, which is both shy of the
20.0 that had been anticipated and below the downwardly revised reading of 20.8
for the prior month.
The dollar scored only its
second gain in nine sessions with a 0.2% advance against a basket of major
foreign currencies. Most of that move came against the yen, which was down 1.2%
to 83.0 yen per dollar at the closing bell.
Treasuries turned sharply
lower in the face of a weaker equity market. They had already been under
pressure, but their slide steepened with the release of results from a $13
billion auction of 10-year TIPS. Weak demand at the auction caused the
benchmark 10-year Note to drop to a loss of about a full point. It settled off
of that low so that its yield was just shy of 3.45%.
Tomorrow's economic calendar
is empty so most of the market's attention will be on the latest from Dow
components General Electric (GE 18.43, +0.10) and Bank
of America (BAC 14.54, +0.17).
Commodities finished mixed,
once again, on the session, with grains (+1.1%) leading the way higher and
precious metals (-2.7%) leading the decliners.
Precious metals sold off today
on concerns about continued tightening in China following better-than-expected
GDP data. Feb gold finished lower by 1.5% to $1345.60 per ounce, while March
silver dropped 4.2% to close at $27.47 per ounce. Gold's lows, at $1342.40,
represent its lowest levels in 2 months, while silver's low at $27.37 represent
its lowest levels in over 1.5 months.
March crude oil ended lower by
2.3% to $89.61 per barrel. It too sold off on concerns about continued
tightening in China. In fact, this morning's inventory data had little effect
on prices. Crude oil's lows, at $88.90, marked its worst levels in about two
weeks. Feb natural gas rallied for 2.5% to close at $4.69 per MMBtu, following
bullish inventory data. It notched highs at $$4.703, its best level since early
Jan.
Advancing Sectors: Utilities (+0.6%), Financials (+0.5%),
Consumer Staples (+0.4%), Consumer Discretionary (+0.2%), Health Care (+0.2%)
Declining Sectors: Telecom (-0.2%), Industrials (-0.4%), Tech
(-0.7%), Energy (-0.7%), Materials (-1.5%)DJ30 -2.49 NASDAQ -21.07 NQ100 -0.8%
R2K -1.1% SP400 -0.8% SP500 -1.66 NASDAQ Adv/Vol/Dec 731/2.33 bln/1908 NYSE
Adv/Vol/Dec 1124/1.19 bln/1845