YAHOO [BRIEFING.COM]: Stocks
were hit hard at the open by sellers who were focused on disappointing guidance
from Cisco and Akamai Tech, rather than a better-than-expected initial jobless
claims report, but the major averages rallied when it became clear that buyers
remain in control.
This morning's sell-off was a
broad based affair, but it didn't last much more than half an hour. Once stocks
stabilized, a buy-the-dip mentality became apparent as participants pushed back
in for fear of missing out on further gains. Overall share volume was not
completely impressive -- it did break above 1 billion shares on the NYSE for
the first time in seven sessions -- but watching the tape today left little
doubt that bullish participants continue to call the shots.
Even though the broader market
rallied, sellers barely let up on Cisco (CSCO 18.92, -3.12)
and Akamai (AKAM 40.75, -7.24). The 15% loss suffered by AKAM
was its worst single-session slide in more than a year and left shares at a
six-month low. As for CSCO, its 14% drop was its worst in three months and
caused shares to set a new 52-week low. Weakness in CSCO proved a principal
cause in the Dow's failure to find higher ground, ultimately snapping its
eight-session streak of gains.
The rest of the earnings
picture was rather mixed as Molson Coors (TAP 45.48, -2.09)
and Sprint Nextel (S 4.60, +0.25) both missed the consensus
earnings estimate, but PepsiCo (PEP 63.36, -1.06), MetLife
(MET 47.27, -0.33) and Prudential (PRU 65.00, +1.87)
posted upside surprises. Whole Foods (WFMI 60.05, +6.30)
surged after it complemented an upside earnings estimate with increased
guidance.
There was some volatility to
late trade. Stocks seemed to gyrate with every word of Egypt's President
Mubarak, who indicated in a speech that he will not leave office until
September, despite calls from his citizens for him to step down immediately.
Mubarak's refusal in the face of protests carries potential for geopolitical
upset.
Participants got their first
dose of data in a few days with the release of initial jobless claims for the
week ended January 29. Initial claims totaled 383,000, which is less than
Briefing.com consensus of 410,000 and only the second time since July 2008 that
initial claims came in below 400,000.
Wholesale inventories for
December increased 1.0%, but that news was of little concern to participants.
News that the Treasury Budget for January featured a smaller-than-expected
$49.8 billion deficit was also shrugged off.
Treasuries resumed their
descent this session, but the yield on the benchmark 10-year Note remains below
3.70% after its rally in the prior session. Results from today's 30-year Bond
auction proved less inspiring. The auction drew a bid-to-cover of 2.51, dollar
demand of $40.2 billion, and an indirect bidder participation rate of 43.1%.
Commodities had a relatively
mixed session that ended with the CRB Commodity Index up less than 0.2%.
Among the more widely followed
natural resources, crude oil prices finished flat at $86.73 per barrel. It hit
a session high of $87.90 per barrel, but failed to hold that position as the
afternoon wore on.
Natural gas prices slid 1.7%
to $3.98 per MMBtu after failing to hold a sharp spike to $4.15 per MMBtu amid
news that weekly inventories had a greater-than-expected draw.
As for precious metals, gold
prices finished 0.2% lower at $1362.50 per ounce. Gold's session high was set
at $1364.50 per ounce. Silver prices shed 0.6% to settle pit trade at $30.09
per ounce. They were at $30.28 per ounce at session highs.
Advancing Sectors: Energy (+0.9%), Telecom (+0.5%),
Industrial (+0.4%), Materials (+0.3%), Consumer Discretionary (+0.2%), Health
Care (+0.1%), Utilities (+0.1%)
Unchanged: Financial
Declining Sectors: Consumer Staples (-0.5%), Tech (-0.5%)DJ30
-10.60 NASDAQ +1.38 NQ100 +0.1% R2K +0.4% SP400 +0.6% SP500 +0.99 NASDAQ
Adv/Vol/Dec 1347/2.51 bln/1244 NYSE Adv/Vol/Dec 1570/1.02 bln/1390