YAHOO [BRIEFING.COM]: Stocks
settled with sizable losses near session lows following a mid-session swoon.
The tone ahead of the open was
actually positive. Premarket participants were encouraged by news that China
intends to expand its investment in Europe, although enthusiasm was tempered by
a negative response to headlines that eurozone officials may wait to doll out
bailout funds to Greece due to doubts about sincerity of the flagging country's
commitment to new austerity measures which were approved by its parliament this
past weekend.
The first half of the session
was mostly mixed with the S&P 500 chopping along with a modest gain, the
Dow down because of lackluster action among blue chips, and the Nasdaq sporting
an enviable gain with help from tech stocks.
Apple (AAPL 497.67, -11.79) was also a source
of support for the Nasdaq. However, a sudden and concerted shift in sentiment
sent the stock sliding from an all-time high above $525, which reflected a
climb of more than 25% since it reported earnings less than one month ago, into
the red on strong volume. Given the stock's size and influence -- it is the
single greatest stock by market cap -- it weighed heavily on broad market
action and prompted many participants to slap on sell orders. The retreat took
the major equity averages into the red. None could recover.
Upside earnings surprises from
Comcast (CMCSA 28.52, +1.27) and Teva Pharma
(TEVA 45.04, +1.52) helped their shares maintain impressive gains in the face
of the sell-off. Despite better-than-expected results of its own, Deere
& Co. (DE 84.28, -4.77) shares dropped sharply to a new monthly
low. Strikingly, Abercrombie & Fitch (ANF 48.30, +3.71)
shares surged to a new two-month high after the apparel retailer unveiled
earnings that came short of the consensus. Encouraging commentary from company
management was credited for restoring confidence in the stock.
Economic data wasn't
altogether exciting. The Empire Manufacturing Survey hit 19.5 in February, up
from 13.5 in the prior month. It also exceeded the reading of 14.0 that had
been widely anticipated.
Industrial production for
January proved disappointing. Data showed no change, which contrasts with the
0.6% increase that had been broadly expected to follow a 1.0% increase in the
prior month.
The Housing Market Index
impressed some participants by stretching to 29 in February from 25 in the
prior month. Many thought that it would improve to just 26.
Minutes from the most recent
FOMC meeting failed to induce any meaningful broad market action. However,
Regional Fed President Lacker dissented in regard to the description of the
time period over which economic conditions were likely to warrant exceptionally
low levels of the federal funds rate, which stands at 0.00% to 0.25%, because
he expects a tightening of monetary policy to prevent inflation projections or
expectations prior to the end of 2014.
The dollar didn't see a great
deal of action today. Instead, it generally held near the flat line, which is
right about where it was by session's end. That said, the euro shed about 0.5%
against the greenback to trade at $1.31. Concerns about Greece appeared to
overshadow some eurozone GDP data that was generally better than what many had
predicted. The headline numbers for fourth quarter GDP featured a 0.3% decline
for the eurozone, a 0.2% decline in Germany, and a 0.2% increase in France.
Just the other day analysts at Moody's announced they had assigned a negative
outlook to France's credit rating.
Although it appeared that the
risk trade was turned off, oil prices finished pit trade at $101.78 per barrel
for a 1.0% gain. Buying interest was bolstered by concerns about Iran's
armament efforts and possible plans by the country to cut its exports.
Commodities closed with mixed
results, but the CRB Index still eked out a 0.3% gain.
Oil prices settled pit trade
at $101.78 per barrel for a 1.0% gain amid concerns about Iran's armament
efforts and possible plans to cut exports. In contrast, natural gas prices
slumped 4.3% to $2.42 per MMBtu, effectively wiping out the energy component's
climb in the prior session.
As for precious metals, silver
settled flat at $33.37 per ounce after it had been markedly higher this
morning. Gold still scored a 0.6% gain by settling at $1727.70 per ounce.
Advancing Sectors: (None)
Unchanged: Materials
Declining Sectors: Health Care -0.2%, Consumer Staples -0.2%,
Energy -0.3%, Consumer Discretionary -0.5%, Telecom -0.5%, Financials -0.6%,
Utilities -0.6%, Tech -0.6%, Industrials -1.4%DJ30 -97.33 NASDAQ -16.00 NQ100
-0.8% R2K -0.8% SP400 -0.3% SP500 -7.27 NASDAQ Adv/Vol/Dec 940/2.02 bln/1595
NYSE Adv/Vol/Dec 1276/806 mln/1736