YAHOO [BRIEFING.COM]: For the second straight session concerns
about the implications of political uncertainty in
This morning market participants took their cues from Europe, where
the region's major bourses faltered, debt yields spiked, and the euro retreated
to a multi-month low of less than $1.30, all amid worries that political
impasse in Greece could undermine the country's commitment to austerity
measures and, in turn, complicate the country's next bailout tranche. Concerns about
the latter were put to rest by afternoon reports that the EFSF will make more
than 5 billion euros available to
At its low, the S&P 500 traded beneath the depths set during
the prior session, but didn't quite challenge the March low of about 1340. As
for the Dow, it dipped its prior session low, but did not break under its April
low. Meanwhile, the Nasdaq
probed its prior session low, but did not violate it.
Tech proved pivotal in helping drive stocks up from session lows.
The largest sector by market weight was down 1.5% at its session low, but
completely overcame that deficit and extended its climb to a narrow gain before
being backed down to a 0.1% loss. Microsoft
(MSFT 30.76, +0.26) was a primary leader, but shares of CISCO (CSCO 18.78, +0.07) managed a
modest gain ahead of the company's quarterly report.
Fellow Dow component Disney
(DIS 45.02, +0.72) scored a strong gain of its own. The stock was bid up to a
new 52-week high on the back of a better-than-expected earnings report.
Financials were left out of the recovery effort for the second
straight session, mostly because of the perception about their vulnerability to
eurozone tumult. The sector's 1.2% loss today came on
top of a 0.7% drop in the prior session. Month to date, the Financial sector is
down more than 3%, or slightly worse than the S&P 500 in that time.
Although the broad market was able to fight through selling
pressure, it was unable to turn the move into a gain. Once the S&P 500 came
in contact with the neutral line sellers redoubled their efforts to keep the
stock market in the red. While the Dow came close to the neutral line, the Nasdaq actually poked into
positive territory for an incremental gain before it was pushed lower.
The stock market's afternoon slip helped Treasuries reclaim only a
small portion of their gains. Early strength had the yield on the benchmark
10-year Note to a 2012 low of 1.80%. Results from an auction of 10-year Notes
drew a bid-to-cover of 2.90, dollar demand of $69.6 billion, and an indirect bidder
rate of 38.7%. For comparison, the prior auction attracted a bid-to-cover of
3.08, dollar demand of $64.7 billion, and an indirect bidder participation rate
of 38.5%, while an average of the past six auctions results in a bid-to-cover
of 3.14, dollar demand of $68.8 billion, and an indirect bidder rate of 42.9%.
Gold prices were pared again. It set a session low of $1578.50 per
ounce, but settled with a 0.7% loss at $1593.80 per ounce.
Crude oil prices fell for a sixth straight session, closing at $96.79
per barrel. Prices are down more than 8% in those six sessions.
The CRB Index was able to recover almost all of its loss today, but
still settled 0.1% lower. That marked its fifth loss in six sessions.
A close at $96.79 per barrel marked crude oil's sixth straight
slide. In that time prices have fallen more than 8% and notched a new low for
2012. A stronger dollar and weak inventory data that showed a build of 3.65
million barrels played a part in the latest leg lower. Natural gas, on the
other hand, extended its prior session climb by settling at $2.46 per MMBtu for a 2.9% gain. Along the way it touched $2.51 per MMBtu.
Precious metals prices were in the red all session as the dollar
staged another advance amid continued political concerns in
Advancing Sectors:
None
Declining Sectors:
Utilities -0.1%, Tech -0.1%, Consumer Discretionary -0.5%, Telecom -0.5%,
Consumer Staples -0.7%, Energy -0.7%, Materials -0.8%, Health Care -0.9%,
Financials -1.2%, Industrials -1.2%DJ30 -97.03 NASDAQ -11.56 NQ100 -0.3% R2K
-0.5% SP400 -0.4% SP500 -9.14 NASDAQ Adv/Vol/Dec
881/2.05 bln/1610 NYSE Adv/Vol/Dec 967/940 mln/2044