YAHOO [BRIEFING.COM]: An afternoon squeeze helped stocks slash losses, but neither the S&P 500 nor the Dow was able to turn a gain. In contrast, the Nasdaq managed to push into positive territory and settle at a session high.

A disappointing non-manufacturing PMI reading from China had dampened sentiment ahead of the open, but market participants became encouraged by a bounce by several of Europe’s bourses. The improved tone proved to be short lived, though; stocks made a modest uptick in the opening minutes of action, but quickly reversed into the red. The major equity averages were down with sizable losses that made for new multi-month lows before they were able to stabilize.

Tech offered leadership to an afternoon squeeze that took the S&P 500 just past the flat line. The broad market measure was unable to extend the move into a meaningful gain because of resistance there. Stocks made a final push into the close, but the S&P 500 was once again rebuffed where it began the session. The Dow also failed to extend its final push into positive territory, but the Nasdaq was able to book a nice gain. The Nasdaq 100 scored an even stronger gain

Although Tech takes most of the credit for leading the stock market’s afternoon rebound, Telecom was the best performing sector of the session. Telecom scored a 0.7% gain, helping to extend the near 3% advance that it achieved in May, when no other major sector was able to score a monthly gain.

Financials and Industrials were at the opposite end of things. Both sectors fell 1.0%. Financials were burdened by bank stocks, while Industrials were undercut by weakness in construction and farming machinery issues.

The CRB Commodity Index managed to snap a four session losing streak that saw it fall for a cumulative decline of nearly. The Energy complex was particularly helpful as crude oil scored a 0.9% gain at $83.95 per barrel. Shortly before the close it set a session high of $84.17 per barrel.

Little regard was given to a strong bounce by the euro while the stock market was in retreat mode this morning. The action contrasts with that of recent weeks, during which the euro was widely regarded as a primary cue for market participants. Nonetheless, the euro advanced about 0.7% against the greenback today.

The CRB Index fell in four straight sessions for a cumulative decline of nearly 5%, but that losing streak was snapped today. With help from the Energy complex the CRB scored a 0.6% gain.

Crude oil chopped around near the unchanged line for most of its pit session after spending electronic trade in the red. However, the energy component garnered buying interest in the last hour of pit action, and traded up to a session high of $84.17 per barrel moments before finishing with a 0.9% gain at $83.95 per barrel. Natural gas started the week on a positive note as it trended higher in today's pit trade. It rallied to a session high of $2.43 per MMBtu as it headed into the close and settled at $2.41 per MMBtu for a gain of 3.9%.

Precious metals reversed Friday's advance during today's pit trade, despite a drop in the dollar. Gold chopped around near the unchanged line in morning action before it fell into negative territory and touched a session low of $1610.00 per ounce. After attempting a slight recovery it settled at $1614.40 or 0.4% lower. Silver struggled in the red for its entire floor session. It dipped to a session low of $27.95 per ounce and settled at $28.03 per ounce for a 1.7% loss.

Advancing Sectors: Telecom +0.7%, Financials +0.5%, Consumer Discretionary +0.5%, Utilities +0.4%, Health Care +0.3%, Consumer Staples +0.3%, Materials +0.1%
Unchanged: Energy
Declining Sectors: Financials -1.0%, Industrials -1.0%DJ30 -17.11 NASDAQ +12.53 NQ100 +0.8% R2K +0.0% SP400 -0.5% SP500 +0.14 NASDAQ Adv/Vol/Dec 1245/1.75 bln/1267 NYSE Adv/Vol/Dec 1288/824 mln/1734