YAHOO [BRIEFING.COM]: Buying interest in the early going gave way
to selling pressure that resulted in the ninth loss in 11 sessions for the
S&P 500. Many traders took their cues from the euro.
Despite sizable losses in Asia during overnight trade and mixed
action among
Industrial production also proved impressive. It increased during
April by 1.1%, which is more than double the 0.5% increase that had been
broadly expected.
Within the first hour of action the S&P 500 was up almost 1%
and within about five points of its prior session high, but the move failed to
hold as early strength among Energy and Financials faded. Those two sectors
descended to losses of 0.5% and 1.5%, respectively. That put the Energy sector
at a new low for 2012, while Financials sit at their worst level since January.
Retailers JC Penney
(JCP 26.75, -6.75) and Abercrombie
& Fitch (ANF 39.50, -5.90) were among the poorest
individual performers of the session. Both stocks plummeted to new multi-month
lows in the wake of underwhelming quarterly reports. Target (TGT 55.32, +0.24) managed to
maintain a modest gain following its latest earnings announcement, though.
Deere
(DE 74.18, -2.44) was also out today with its latest quarterly report, which
featured a better-than-expected bottom line. However, shares of the farming
machinery outfit still fell.
A few minutes of broad market turbulence followed the release of
the latest FOMC minutes, which indicate that broad financial market conditions
have changed little. The minutes state that bank credit slowed in
March, but overall it expanded at a solid pace for the first quarter. It was
also noted that financial strains within the euro area increased.
The latter point in mind, headlines today suggested that the ECB
may be suspending services to certain banks in
Crude oil experienced volatility in today’s pit trade as it
continued its decline for a fourth consecutive session. It briefly popped into
positive territory in morning action, but quickly returned to the red.
Weaker-than-anticipated inventory data that showed a build of 2.1 million
barrels in the face of calls for a build of 1.5 million barrels was in the mix.
Crude touched a session low of $92.28 per barrel ahead of the FOMC minutes, and
settled the session with a 1.3% loss at $92.78 per barrel.
Natural gas outperformed again. It soared 5.2% to $2.62 per MMBtu. The energy component is now up more than 30% since
the low that it set last month.
Precious metals extended losses, despite only a marginal gain
by the dollar. Both gold and silver spent the entire pit sessions in negative
territory. Although they attempted to erase losses in morning action, taking
gold up to $1552.20 per ounce and silver to $27.97 per ounce, the move was
unsustainable. Gold and silver set respective session lows of $1534.10 per
ounce and $27.13 per ounce before gold settled with a 1.4% loss at $1536.30 per
ounce and silver finished at $27.18 per ounce for a 3.0% loss.
Advancing Sectors: Consumer Staples +0.3%, Health Care +0.2%
Declining Sectors: Utilities -0.1%, Industrials -0.1%, Consumer Discretionary
-0.1%, Telecom -0.4%, Energy -0.5%, Tech -0.8%, Materials -1.2%, Financials
-1.5%DJ30 -33.45 NASDAQ -19.72 NQ100 -0.7% R2K -0.6% SP400 -0.9% SP500 -5.86
NASDAQ Adv/Vol/Dec 839/1.96 bln/1660 NYSE Adv/Vol/Dec 985/872 mln/2024