YAHOO [BRIEFING.COM]: Disappointing jobs data played a part in
sending the major equity averages to sizable losses in early trade, but stocks
were able to improve their position, resulting in a relatively mixed finish.
Early participants were generally uninspired by the latest round of
earnings reports, which featured upside surprises from MasterCard (MA 451.58, -4.32), Broadcom (BRCM 36.89, +0.18), CVS Caremark (CVS 45.92, +1.21), and Time Warner (TWX 37.29, -0.63). Their
reports were partly overshadowed by another disappointing Manufacturing PMI
reading from the eurozone.
Sentiment ahead of the open soured further when it was learned that
the latest ADP Employment Report suggested that nonfarm private payrolls
increased by only 119,000 during April, despite expectations for an increase of
170,000. The report is often regarded as a harbinger for the government's
official monthly payrolls report, the latest of which will be released this
Friday.
Energy and Financial stocks were leaders in the prior session, but
they lagged this session. Persistent weakness in the pair hampered the broad
market's effort to trade higher. Energy settled with a 1.6% loss;
The Consumer Discretionary sector put together a 0.5% gain in the
face of broad market weakness, but its lack of weight limited its ability to
offer any real leadership. Teen apparel retailers were especially strong after American Eagle (AEO
20.90, +3.01) raised its earnings forecast; the ensuing surge in shares of AEO
took its stock price to its best level in about four years.
Although stocks were able to fight through some selling,
commodities were clipped for sizable losses. As a result, the CRB Commodity
Index suffered a 1.3% loss, which snapped a six-session streak of gains. The
CRB hasn't had such a weak performance in three weeks. A stronger dollar
certainly didn't help the case for commodities; the greenback gained 0.4%
against a basket of major foreign currencies, but most of that move came
because the euro was weakened in the wake of disappointing eurozone
data.
Crude oil extended its losses following inventory data that showed
a build of 2.84 million barrels when a build of 2.5 million barrels was widely
anticipated. It set a session low of $104.84 per barrel in morning pit
activity. The energy component attempted a rebound, but ran out of steam as it
consolidated near $105.30 per barrel. It settled pit trade with a 0.9% loss at
$105.26 per barrel.
Natural gas trended downward to a pit session low of $2.24 per MMBtu. Any recovery attempt was dashed, leaving it to
settle pit trade at $2.25 per MMBtu, or 5.1% lower.
Precious metals traded in the red for the entire floor session.
Gold rallied to a session high of $1660.60 per ounce following a disappointing
ADP Employment Report. However, the metal gave up the gains shortly after and
spent the afternoon trying to trim losses. Gold settled pit trade 0.5% lower at
$1654.40 per ounce. Silver touched a session low of $30.41 per ounce before
leveling off and chopping around in a consolidative manner. It inched slightly
higher before the close, but finished the session with a 1.1% loss at $30.63
per ounce.
Advancing Sectors:
Consumer Discretionary +0.5%, Consumer Staples +0.3%, Industrials +0.1%, Tech
+0.1%
Unchanged: Telecom
Declining Sectors:
Health Care -0.1%, Utilities -0.6%, Materials -0.6%, Financials -1.0%, Energy -1.6%DJ30
-10.75 NASDAQ +9.41 NQ100 +0.3% R2K +0.3% SP400 +0.2% SP500 -3.51 NASDAQ Adv/Vol/Dec 1367/1.83 bln/1157 NYSE Adv/Vol/Dec
1304/779 mln/1683