YAHOO [BRIEFING.COM]: Stocks
were mixed for most of the morning, but an upturn by the dollar and weakness
among tech stocks encouraged selling. Pressure was most pronounced against the
Nasdaq, which dropped to its lowest level in almost one month.
The tone of early trade was
lackluster. Losses abroad and news that IMF managing director Strauss-Kahn was
arrested ahead of an important meeting undermined sentiment. A downturn in the
dollar stirred up some buying interest, but the greenback eventually bounced
back so that it ended the day with a tepid loss of 0.2%.
The dollar started to pare
losses at about the same time that the Nasdaq failed to push into positive
territory. The broader market endured a more gradual decline, but the Nasdaq
suffered a sharper slide that left it with a loss that was more than double
that of the S&P 500 and about four times that of the Dow.
Large-cap tech stocks weighed
most heavily on the Nasdaq, which closed just above its 50-day moving average.
Consumer discretionary stocks
also came under sharp pressure. The sector's 1.4% decline came as Lowe's
Companies (LOW 24.84, -0.92) dropped to a three-month low following a
disappointing quarterly report, which featured an earnings miss and
disappointing forecast. Retailer JC Penney (JCP 37.21, -1.23)
gapped up to a two-year high following an upside earnings surprise and strong
outlook, but the stock quickly rolled over.
Financials had lagged last
week, but traded with relative strength for most of this session. The sector's
slide was limited to a fractional loss amid support from consumer finance
stocks following the release of several monthly card metric reports.
June crude oil settled lower
by 2.3% to $97.37 per barrel. A selloff in gasoline futures, to the tune of
4.5%, weighed on crude oil throughout the afternoon session. A weaker dollar
had little bearing on crude's movement after it was unable to trade above the
flat line. June natural gas ended up 1.6% to $4.32 per MMBtu, after it traded
to its best levels of the session heading into the close of pit trade.
Weakness in the dollar
initially helped precious metals move higher, but both metals pulled back,
after trading to their respective highs, despite continued weakness in the
greenback. June gold shed 0.2% to close at $1490.60 per ounce, while July
silver fell 2.5% to end at $34.11 per ounce.
Advancing Sectors: Health Care (+0.1%)
Unchanged: Utilities, Consumer Staples
Declining Sectors: Tech (-1.5%), Consumer Discretionary
(-1.4%), Telecom (-0.8%), Energy (-0.8%), Industrials (-0.4%), Materials
(-0.4%), Financials (-0.1%)DJ30 -47.38 NASDAQ -46.16 NQ100 -1.7% R2K -1.5%
SP400 -0.9% SP500 -8.30 NASDAQ Adv/Vol/Dec 528/2.08 bln/2085 NYSE Adv/Vol/Dec
957/904 mln/2033