YAHOO [BRIEFING.COM]: Concerted
selling sent stocks down sharply to their lowest level in a month this session.
The effort came amid renewed concern about global economic growth, the fiscal
condition of countries in the eurozone periphery and, as a corollary, a
stronger dollar.
Stocks gapped down at the open
and never really made any effort to recover. Weakness was largely rooted in the
negative reaction to news that eurozone linchpins Greece and France both saw
their latest PMI Manufacturing readings make marked pullbacks to 58.2 and 55.0,
respectively, from the prior month. The overall eurozone PMI Manufacturing
reading also pulled back; it came in at 54.8.
A downwardly revised forecast
for Italy's debt and a cut to Greece's rating during the weekend offered
another reminder to traders about the tenuous conditions of the eurozone
economy.
The euro retreated in the wake
of those headlines. That bolstered buying in the greenback, which climbed to a
near two-month high before easing off of that mark into the afternoon. At the
end of the trading day, the dollar was up 0.6% against a basket of competing
currencies.
Eurozone concerns and a
stronger dollar culminated in one of the market's worst single-day drops in
months and also made for a new monthly low.
No sector went unscathed, but
defensive-oriented issues like consumer staples stocks (-0.7%) and telecom
(-0.7%) managed to limit their collective losses to less than 1%.
Commodities were also clipped
this session. Their overall weakness led the CRB Commodity Index to drop in
excess of 1%.
Such widespread selling
interest stoked volatility, although it cooled as the session progressed. In
the early going the Volatility Index spiked toward 20 for the first time in
about two months. It later eased off of that mark, but was still up roughly 5%
as of the close of trade.
Increased volatility and
concerted selling among equities compelled some traders to rotate into
Treasuries. In turn, the yield on the benchmark 10-year Note returned to its
2011 low near 3.10% before a few basis points were added back in afternoon
action.
Concerns about sovereign debt
issues in Europe dictated the direction of some commodities today. July crude
oil, which shed 2.4% to close at $97.70 per barrel, sold off as investors
looked for safer havens. June gold, which finished up 0.4% to $1515.50 per
ounce, was one of those havens. Gold prices have continued to push higher in
electronic trade. July silver ended lower by 0.5% to $34.91 per ounce. In
overnight trade it sold off on the back of a stronger dollar, but it was unable
to recoup all of its losses.
June natural gas finished
higher by 2.8% to $4.35 per MMBtu. Hotter than average temps in parts of the US
helped natural gas higher today.
Advancing Sectors: (None)
Declining Sectors: Consumer Staples (-0.7%), Telecom (-0.7%),
Consumer Discretionary (-0.9%), Materials (-1.0%), Health Care (-1.0%),
Utilities (-1.2%), Financials (-1.3%), Industrials (-1.4%), Energy (-1.5%),
Tech (-1.5%)DJ30 -130.78 NASDAQ -44.42 NQ100 -1.5% R2K -1.8% SP400 -1.6% SP500
-15.90 NASDAQ Adv/Vol/Dec 487/1.80 bln/2117 NYSE Adv/Vol/Dec 615/865 mln/2379