YAHOO
[BRIEFING.COM]: The major equity averages worked their way up from session
lows, but still settled with losses on the order of 1%. Negativity was
initially the result of weakness among Europe's bourses, but it was then
exacerbated by news that S&P lowered its outlook on U.S. debt to negative.
Stocks
opened trade sharply lower. The initial sell-off came as a culmination of
concerns stemming from speculation about debt restructuring for less fiscally
responsible eurozone nations like Greece, Ireland, and Portugal and news that
analysts at S&P lowered their outlook on U.S. debt to Negative. The AAA
rating currently held by the U.S. was affirmed, though.
Those
headlines completely overshadowed the latest round of earnings results, which
included upside earnings surprises from Citigroup (C 4.42,
+0.00), Halliburton (HAL 47.14, +0.32), and Eli Lilly (LLY
35.62, -0.39). As has been the case since the start of earnings season one week
ago, strong announcements didn't necessarily translate to gains, especially in
the face of broad market selling interest.
At the
depths of this session's slide, the Dow was down more than 200 points and the
S&P 500 was down more than 20 points so that it traded below the 1300 line
at 1295.
Stocks
gradually worked their way higher in afternoon trade. There wasn't a single
sector that made its way back to the flat line, but tech stocks and consumer
staples stocks did the best job of limiting losses. Each sector finished with a
loss of 0.7%. Tech's relative strength came even though only three stocks in
the sector -- Akamai Tech (AKAM 39.73, +1.64), Apple (AAPL
331.85, +4.39), and Qualcomm (QCOM 53.29, +0.15) -- managed to
make gains. Meanwhile, grocers propped up consumer staples stocks after Supervalu
(SVU 10.67, +0.05) issued upside guidance.
News of the
change to the U.S. debt outlook caused knee-jerk selling among Treasuries this
morning, but their ability to rebound to solid gains suggested that the news
was largely priced in.
The dollar
was also dropped in morning trade, but it quickly reclaimed gains and then
some. In turn, the Dollar Index climbed to a 0.9% gain. Most of the advance
came against the euro, which was quoted 1.3% lower at $1.423 as of the close of
today's trade.
Commodities
finished the session mixed today, with gains (+2.2%) leading gainers and energy
(-1.6%) leading all decliners.
Risk
aversion, following S&P's outlook revision on the US earlier this morning,
caused May crude oil to drop 2.3% to close at $107.12 per barrel. Crude oil
spent most of the session chopping around near its lows. May natural gas shed
1.7% to close at $4.13 per MMBtu.
The outlook
revision sent the precious metals higher today, in a flight to safety. June
gold finished higher by 0.5% to $1492.90 per ounce, while May silver ended up 0.9%
to $42.98 per ounce. Gold approached $1500, but came up just shy after notching
highs at $1498.60, a fresh all-time high. Silver rallied to a new ~31 yr high
at $43.56.
Despite the
dollar's advance, precious metals were able to put together strong performances
amid this session's volatility. Gold settled with a 0.5% gain at $1492.90 per
ounce after it set a record high of $1498.60 per ounce. Silver settled 0.9%
higher at $42.98 per ounce after it hit $43.56 per ounce, which is its highest
level in more than 30 years.
Advancing
Sectors: (None)
Declining Sectors: Consumer Staples (-0.7%), Tech (-0.7%),
Utilities (-0.9%), Consumer Discretionary (-0.9%), Health Care (-1.2%), Telecom
(-1.3%), Materials (-1.3%), Industrials (-1.3%), Financials (-1.4%), Energy
(-1.5%)DJ30 -140.24 NASDAQ -29.27 NQ100 -0.7% R2K -1.6% SP400 -1.7% SP500
-14.54 NASDAQ Adv/Vol/Dec 531/1.80 bln/2089 NYSE Adv/Vol/Dec 577/1.04 bln/2445