YAHOO [BRIEFING.COM]: Stocks
had appeared to be headed for another day of broad losses, but an afternoon
retreat by oil prices helped the major averages rebound for a mixed finish.
Continued concerns about
political and social turmoil in the Middle East and North Africa hampered trade
in the early going. Sellers eventually intensified their efforts so that the
Dow faced its third straight loss of at least 100 points. At its session low,
the Dow broke below the 12,000 line. Meanwhile, the S&P 500 probed the 1294
zone, but the Nasdaq managed to limit its loss and remain above its prior
session low.
However, buyers were pulled
back into the action by a drop in oil prices. Oil futures cleared $103 per
barrel overnight for a new two-year high, but spent most of pit trade near $99
per barrel before afternoon selling took it to a 0.8% loss at $97.28 per
barrel. A smaller-than-expected build in weekly inventories had no real
influence on oil's trade.
Oil's pullback undercut energy
stocks, which had already spent the session trading as laggards. In turn, the
sector fell to a 1.4% loss after it had staged a 2.0% gain in the prior
session. Transocean (RIG 80.62, -1.41) was down almost 5% following news of its
light revenue figure, but the stock pared its loss into the close.
Airlines found strong favor
after oil prices moved lower. In turn, the Amex Airline Index ascended 1.4%
after it had fallen in excess of 8% during the two previous sessions.
Semiconductor stocks also had
a strong showing. Their 1.7% gain helped prop up the Nasdaq so that it
outperformed its counterparts.
Retailers had a strong session
overall. As a group they gained 0.8%, despite a mixed batch of quarterly
reports from Target (TGT 52.00, +1.74), Kohl's (KSS 53.80, +1.78), Sears
Holding (SHLD 82.40, -4.83), and Limited (LTD 32.14, +0.37).
Shares of General Motors (GM
33.02, -1.57) set a post-IPO low, but they managed pare losses as the broader
market staged its afternoon recovery. Selling against GM came in the face of
news that the automaker had strong quarterly sales.
As for data, initial jobless
claims for the week ended February 19 totaled 391,000, which is down 22,000
from the prior week and less than the 410,000 that had been expected, on
average, among economists polled by Briefing.com. Continuing claims came down
145,000 from the prior week to total 3.79 million.
Durable goods orders for
January increased 2.7%, which is on par with what had been widely anticipated.
Orders for the prior month were revised upward to reflect a 0.4% decline.
Excluding transportation, durable goods orders for January tumbled 3.6%, which
comes in stark contrast to the Briefing.com consensus 0.6% increase.
New home sales for January
fell 12.6% month over month to an annualized rate of 284,000, which is less
than the rate of 310,000 units per year that had been generally expected among
economists polled by Briefing.com. The sharper-than-expected drop in sales
comes after they had bounced by 15.7% in the prior month.
Treasuries advanced, but
settled off of their highs. The latest Treasury auction featured the 7-year
Note. It drew a bid-to-cover of 2.86, dollar demand of $82.9 billion, and an
indirect bidder participation rate of 49.7%.
Headline risk related to the
turmoil of the Middle East and North Africa, corporate news, and data continue
to underpin strong participation. As such, more than 1.20 billion shares traded
hands on the NYSE today. That follows tallies in excess of 1.30 billion shares
for each of the past two sessions.
Commodities finished mostly
lower today, with softs (+0.8%) the lone advancer.
April WTI crude oil finished
lower by 0.8% to $97.28 per barrel, sharply off its overnight and $2.5 yr highs
at $103.41 per barrel. Crude's sell off accelerated heading into the close
after crude oil failed to break through $100. This morning's inventory data was
a relative non-event after it showed an inline build. March natural gas shed
0.2% to close at $3.88 per MMBtu.
April gold ended hear
unchanged at $1413.80 per ounce, while March silver closed off 0.2% to $33.18
per ounce. The flight to safety was off for the session with very little new
news flow out of the Middle East. However, in afterhours trade both metals
dropped sharply on the heels of crude oil's sell off.
Advancing Sectors: Consumer Discretionary (+0.5%),
Industrials (+0.4%), Health Care (+0.4%), Tech (+0.3%)
Declining Sectors: Energy (-1.4%), Materials (-0.6%), Consumer
Staples (-0.4%), Utilities (-0.3%), Telecom (-0.2%), Financial (-0.2%)DJ30
-37.28 NASDAQ +14.91 NQ100 +0.5% R2K +0.6% SP400 -0.1% SP500 -1.30 NASDAQ
Adv/Vol/Dec 1583/2.07 bln/1051 NYSE Adv/Vol/Dec 1585/1.22 bln/1381