YAHOO [BRIEFING.COM]: A late
flurry of buying lifted the Dow almost 90 points in less than 30 minutes, but
stocks still finished the day with marked losses as participants looked past an
encouraging jobs report to focus on oil's climb to a new two-year high.
The highly anticipated monthly
payrolls report was posted prior to the open of today's trade. It indicated
that in February nonfarm payrolls increased by 192,000 and private payrolls
increased by 222,000. Economists polled by Briefing.com had expected, on
average, increases of 185,000 and 198,000, respectively. What's more, upward
revisions to prior month data helped trim the headline unemployment rate to a
22-month low of 8.9% from 9.0% in January.
A couple of disappointing
features of the jobs report were that average hourly earnings were unchanged
from the prior month and that average weekly hours worked held steady at 34.2.
That is likely to contain consumption, despite the strength of the headline
numbers.
Any enthusiasm for the jobs
report was restrained by another spike in oil prices. Oil hit a new two-year
high of $104.60 per barrel during pit trade before it closed at $104.42 per
barrel with a 2.5% gain. Even after pit trade ended oil prices continued to
climb so that they came within striking distance of $105 per barrel. The risk
of spreading social unrest and political turmoil in North Africa and the Middle
East has given oil its momentum, which earned the energy component a weekly
gain of about 6%.
Concern about the factors
underpinning oil's spike, and the higher price itself, prompted many
participants to dump stocks and seek safety in precious metals, such that
silver prices set a new 30-year high of $35.41 per ounce before they closed at
$35.22 per ounce with a 2.6% gain and gold hit a record high of $1432.80 per
ounce before they settled at $1431 per ounce with a 1.0% gain.
Neither the dollar nor
Treasuries garnered much interest from safety seekers, though. The greenback
actually gave up 0.1% to a collection of competing currencies. Treasuries
finished higher, but to varying degrees. Still, the benchmark 10-year Note saw
its yield move below 3.50%.
At session lows, the Dow was
down 1.5%, the Nasdaq was down 1.1%, and the S&P 500 was down 1.4%.
However, each of the major averages was able to slash losses in half with the
late resurgence of buying interest. There were no clear catalysts to account
for the move, but it made for a rather strong finish to what otherwise would
have been an entirely weak session for stocks.
Although the broad market was
able to recoup a large part of its loss, financials still logged a 1.3% loss,
which made them the worst performing sector. Investment banks and brokerages
(-2.3%) weighed most heavily on the sector.
Health care stocks managed to
finish with only a fractional loss. They were supported by a 2.4% gain among
shares of life science tools and services.
Oil prices set a new record
high of $104.60 per barrel in the April contract just before they closed with a
2.5% gain at $104.42 per barrel. For the week, the energy component climbed
6.7%, which was primarily underpinned by continued concern about social and
political volatility in North Africa and the Middle East.
Natural gas prices finished
0.7% higher at $3.81 per ounce. That put an end to its three-session slide.
Still, natural gas prices ended the week down about 5%.
Precious metals benefited from
a flight to safety as stocks encountered renewed selling interest. Silver
prices set a new 30-year high of $35.41 per ounce before they closed at $35.22
per ounce with a 2.6% gain. Gold hit a record high of $1432.80 per ounce and
settled just off of that mark at $1431 per ounce with a 1.0% gain.
Cotton futures also climbed to
a new record high as prices went limit up to almost $2.13 per pound.
Although it finished off of
its session high, the CRB closed with a 0.6% gain for its sixth straight
advance.
Advancing Sectors: (None)
Declining Sectors: Health Care (-0.1%), Consumer Staples
(-0.5%), Utilities (-0.6%), Energy (-0.6%), Tech (-0.7%), Consumer
Discretionary (-0.7%), Materials (-0.7%), Telecom (-0.7%), Industrials (-1.2%),
Financials (-1.3%)DJ30 -88.32 NASDAQ -14.07 NQ100 -0.5% R2K -0.5% SP400 -0.7%
SP500 -9.82 NASDAQ Adv/Vol/Dec 912/1.92 bln/1697 NYSE Adv/Vol/Dec 1029/1.04
bln/1928