YAHOO
[BRIEFING.COM]: For the first time in quite a while buyers failed to provide
near-term support in the face of selling pressure. That left the S&P 500 to
suffer its worst single-session slide in almost a month and close below its
50-day moving average for the first time in three weeks.
The tone of
trade was initially weakened by a concerted selling effort among the major
foreign averages, most of which suffered losses of at least 1%. Japan's Nikkei
was one of the worst performers; it tumbled 1.7% following news that officials
have increased Japan's nuclear crisis rating to the maximum level of 7.
Dow
component Alcoa (AA 16.70, -1.07) gave market participants
their first glimpse into earnings season, but apparently they didn't like the
view. Even though Alcoa announced its fourth consecutive upside earnings
surprise, a light revenue figure suggested softer demand than what Wall Street
had wanted. Shares of AA recouped some of their losses, but still settled about
6% lower for one of their worst losses of the past year.
In contrast
to the action of recent weeks, market participants refused to provide support
to the broad market's early drop. Not even another drop in oil prices could
stir support for stocks. Oil prices closed pit trade with a 3.3% loss at
$106.25 per barrel. Selling against oil accelerated with news that analysts at
Goldman Sachs predict that oil prices will see a substantial pullback in coming
months. Just yesterday morning oil prices were above $113 per barrel to mark
their highest level in more than two years.
The
combination of sharply lower oil prices and broad market weakness led energy
stocks to collectively lose 3.0%, which was the sector's worst single-session
slide in one month.
Financials
attracted buyers in the face of widespread weakness before they were backed
down in the final hour of trade. The sector actually turned a loss of about 1%
into a fractional gain, but settled with a 0.4% loss.
Treasuries
were spurred higher amid the stock market's slide. Buying interest in that
space was supported by a solid auction of 3-year Notes. The auction drew a
bid-to-cover of 3.25, dollar demand of $104.0 billion, and an indirect bidder
participation rate of 33.7%.
The dollar's
doldrums continued today. In turn, the euro set a new one-year high of about
$1.45. It was quoted with a 0.4% gain just below that level at session's end.
Commodities
finished lower across the board today, led lower by a 3.5% sell off in grains.
July wheat ended lower by 4.8% to $7.92 per bushel in profit taking from the
grain's recent run to above $8.
May crude
oil shed 3.3% to settle at $106.25 per barrel, extending its sell off to a
second consecutive session. Crude oil has now shed over $6.50 (or 5.8%) from
yesterday morning's ~2.5 yr highs at $113.46. Further headline risk shook out
speculative money that recently pushed crude to those ~2.5 yr highs. It was an
uneventful session for May natural gas, which finish near unchanged at $4.10
per MMBtu.
The sell-off
in crude oil weighed on the precious metals, with June gold dropping 0.9% to
$1453.60 per ounce and May silver shedding 1.4% to close at $40.06 per ounce.
Neither metal was able to retrace is mid-morning sell off. DJ30 -125.78 NASDAQ
-31.08 SP500 -11.69 NASDAQ Adv/Vol/Dec 714/1.4 bln/1890 NYSE Adv/Vol/Dec
774/656.3 mln/2201
Even though
action today was more exciting than it has been in recent weeks, participation
remains at unimpressive levels. More specifically, share volume on the NYSE
failed to break 1 billion again.
Advancing
Sectors: Consumer
Staples (+0.3%)
Declining Sectors: Health Care (-0.1%), Utilities (-0.2%),
Consumer Discretionary (-0.2%), Financials (-0.4%), Telecom (-0.6%),
Industrials (-0.8%), Tech (-0.9%), Materials (-1.4%), Energy (-3.0%)DJ30
-117.53 NASDAQ -26.72 NQ100 -0.7% R2K -1.4% SP400 -1.% SP500 -10.30 NASDAQ
Adv/Vol/Dec 638/1.82 bln/1989 NYSE Adv/Vol/Dec 756/946 mln/2225