YAHOO [BRIEFING.COM]: Stocks
took their direction from the dollar today. Given their inverse relationship of
late, a bounce by the greenback meant a loss for the major equity averages.
The stock market slid to a
loss of about 1% within 90 minutes of the open. Selling pressure was stoked by
a sudden rally by the dollar, which climbed as much as 0.9%. Most of the
greenback's gain came against the euro, which came under pressure amid
rekindled concerns about fiscal conditions in both Greece and Spain, as well as
worries about the European Central Bank's debt burden. Other reports called
into question the growth prospects of Germany, which is the eurozone's largest
economy.
Strength in the dollar also
put pressure on commodities, which collectively tumbled to a 1.0% loss, as
measured by the CRB Commodity Index.
Both stocks and commodities
were able to rebound when the dollar began to grapple with some midsession
selling pressure. About half of the dollar's gain was surrendered before it
recovered to finish the trading day with a 0.8% gain.
Although the CRB Commodity Index
was able to lock in a 0.7% gain for the day, the major equity averages failed
to sustain their rebound. In turn, stocks rolled over and drifted lower into
the close.
Weakness was relatively
widespread, but defensive-oriented plays like utilities stocks (unch.) and
telecom (-0.1%) were able to limit losses. Financials suffered the worst
losses; as a group, they fell to a 1.5% loss.
Retailers were also weak.
Downside guidance by apparel and accessories retailers Gap (GPS
19.22, -4.07) and Aeropsotale (ARO 18.30, -3.04) prompted a
precipitous drop in their shares. Ann Taylor (ANN 29.09,
-1.11) shares were imbued by weakness in the space, even though the company
posted an upside earnings surprise and raised its sales forecast above what
Wall Street had projected.
Barnes & Noble (BKS 18.33, +4.22) benefited from strong
buying interest, however. The stock's surge came in response to news that Liberty
Media (LBTYA 44.82, -0.23) offered to buy the company for $17 per
share, which makes for a premium of about 20% of the prior session closing
price of BKS.
Roughly one billion shares
traded hands on the NYSE this session. On the surface it would appear that
participation increased, but the increased share volume is actually due to the
expiration of monthly options.
A midmorning rally by the
dollar sent commodities on a retreat, but they were able to rally back and
finish the week on a strong note. That has the CRB Commodity Index up 0.7%.
Oil had a whipsaw session that
saw the energy component surrender an early gain to drop to about $96.40 per
barrel before it rallied back to finish pit trade with a 1.2% gain at $100.12
per barrel.
Natural gas performed
relatively well all session. Prices settled 3.4% higher at $4.30 per MMBtu.
As for precious metals, gold
prices gained 1.2% to end the week at $1510.20 per ounce while silver prices
added a relatively modest 0.4% to close the week out at $35.09 per ounce.
Advancing Sectors: (None)
Unchanged: Utilities
Declining Sectors: Telecom (-0.1%), Consumer Staples (-0.3%),
Energy (-0.3%), Tech (-0.7%), Health Care (-0.8%), Industrials (-1.0%),
Consumer Discretionary (-1.0%), Materials (-1.0%), Financials (-1.5%)DJ30
-93.28 NASDAQ -19.99 NQ100 -0.8% R2K -0.7% SP400 -0.8% SP500 -10.33 NASDAQ
Adv/Vol/Dec 851/1.78 bln/1725 NYSE Adv/Vol/Dec 1019/1.00 bln/1965