YAHOO [BRIEFING.COM]: Stocks
faltered after fighting through premarket selling pressure before a late
rebound effort made for a mixed finish.
The mood among premarket
participants this morning was hurt by ongoing concerns related to the fiscal,
social, and political troubles of Greece. The same themes weighed heavily on
Europe's major bourses, which were all down 1% or more before eventually
improving their position in the later part of the session.
The tone ahead of the open
turned positive with the release of some encouraging data, though. The latest
initial jobless claims tally came in at 414,000, which is less than the 421,000
initial claims that had been expected, on average, among economists polled by
Briefing.com. It was the first time in several weeks that the count was
actually less than what had been widely expected.
There was also positive news
from the downtrodden housing industry. According to data, housing starts during
May hit an annualized rate of 560,000, while building permits came in at a clip
of 612,000. The consensus among economists polled by Briefing.com had called
for a rate of 540,000 housing starts and 548,000 building permits.
Buying interest was tested
shortly after the open by an ugly Philadelphia Fed Survey. The Survey slumped
to -7.7 in June, after it had been at 3.9 in the prior month. Many economists
had expected that the Survey would improve to 7.0.
Some knee-jerk selling
followed the release of the Philly Survey, but stocks quickly bounced back.
However, the major averages struggled to extend the move. The failure to
attract additional buying interest made stocks susceptible to further selling
interest, which took the broad market to a new three-month intraday low before
buyers started to step back in.
Leadership was either lacking
or inconsistent throughout the session. Financials had attempted to stage a
couple of bounces after underperforming in each of the past two sessions before
it finished with a 0.5% gain. Utilities and consumer staples, both of which are
without much market weight, tied for the strongest gains of any major sector by
advancing 0.8%. Materials stocks fell 0.9% to finish the day as the worst
performing sector.
Concerns about the
implications of Greece's precarious situation on the rest of the eurozone
weighed on the euro this morning. That helped drive the Dollar Index to its
best level in about three. The dollar gave up its gain as the session
progressed and eventually finished the day with a 0.1% loss against a basket of
major foreign currencies.
Even though the tone of trade
today was much improved from that of the prior session, volatility among stocks
sent the Volatility Index up to its highest level in about three months.
Increased volatility helped
keep traders interested in Treasuries. Buying therein took the yield on the
2-year Note to a record low near 0.30% this morning. The yield on the benchmark
10-year Note hit a multi-month low near about 2.90% in afternoon action.
It was a substantially quieter
day in the commodities markets as participants took a wait-and-see approach to
the events unfolding in Greece. August gold finished higher by 0.3% to $1529.90
per ounce, while July silver added 0.3% to close at $35.50 per ounce. Both
metals spent the session chopping around the flat line as they reacted to the
fluctuations in the dollar/euro.
Trade in July crude oil, which
closed higher by 0.2% to $94.95 per barrel, was similar to that of the precious
metals, as traders balanced this morning's econ data with events going on in
Europe and movement in the euro/dollar. July natural gas fell 3.6% to close at
$4.42 per MMBtu. This morning's inventory data, which was more-or-less inline
with expectations acted as the catalyst for today's move to the downside.
Advancing Sectors: Utilities +0.8%, Consumer staples +0.8%,
Financials +0.6%, Energy +0.3%, Industrials +0.3%, Telecom +0.2%, Health Care
+0.2%
Declining Sectors: Consumer discretionary -0.2%, Tech -0.3%,
Materials -0.9%DJ30 +64.25 NASDAQ -7.76 NQ100 -0.4% R2K +0.3% SP400 -0.1% SP500
+2.22 NASDAQ Adv/Vol/Dec 1299/1.97 bln/1171 NYSE Adv/Vol/Dec 1367/1.05 bln/1637