YAHOO [BRIEFING.COM]: Aggressive, broad-based selling drove the
stock market lower for its worst single-session loss since December, eating
into the heady gains that had been scored during the course of the four
sessions leading up to a series of Fed announcements made yesterday.
Only one day ago did the Fed announce its intent to extend
“Operation Twist” into the end of the year and unveil a reduced economic
forecast, playing a part in the prior session's lackluster finish.
Market participants were given little reassurance about prospects abroad today,
though. China posted another decline in its PMI manufacturing report, which
pointed to the eighth consecutive month of contraction. Germany, Europe’s most
diverse and robust economy, also posted a disappointing number that pointed to
tighter activity, but activity in
Domestic data featured a Flash PMI Manufacturing
of 52.9 – the worst reading in 11 months. Worse still, the
Existing home sales were less jarring. They set an annualized rate
of 4.55 million units during May. That is in stride with the rate of 4.56
million units that had been generally expected among economists surveyed by
Briefing.com. However, the pace for May is down from the prior month rate of
4.62 million units.
Leading Indicators for May proved pleasing. They increased by 0.3%,
which is better than the flat reading that had been widely forecasted to follow
the 0.1% decline in the prior month.
No sector was able to avoid the sell-off. Losses ranged from a 0.7%
slide by the defensive-oriented Telecom sector to the Energy sector’s 4.0%
tumble.
Energy’s outsized loss was owed to a combination of broad market
weakness and a sharp drop in oil prices amid demand concerns. Crude oil notched
a new 2012 low of $77.96 per barrel for the August contract before it settled
with a 3.9% loss at $78.26 per barrel.
While stocks settled at session lows with steep losses, the
Volatility Index ended the day near its high with a gain of about 15.5%. It
only recently registered a monthly low.
Treasuries traded with relatively limited gains, despite such
pronounced weakness among stocks. Buying in the benchmark 10-year Note took its
yield back near 1.6%. As an aside,
The greenback garnered strong interest. By session’s end it was up
almost 1.0% against a basket of major foreign currencies, namely the euro and
the sterling pound.
The dollar’s advance likely exacerbated selling among precious
metals. Gold closed with a 3.1% loss at $1565.90 per ounce, just above its
session low of $1564.80 per ounce. Silver tumbled to a new multi-month low of
$26.80 per ounce for the July contract before it settled pit trade at $26.86
per ounce for a 5.4% loss.
Soured sentiment in the stock market and a series of economic
reports that included weak PMI manufacturing numbers from abroad and a
disappointing
In particular, crude oil extended its descent to a new 2012 low of
$77.96 per barrel for the August contract before it settled with a 3.9% loss at
$78.26 per barrel. Natural gas, however, popped to a floor session high of
$2.63 per MMBtu and settled with a 2.4% gain at $2.58
per MMBtu, despite a weekly inventory build that was
greater than what had been widely expected.
Precious metals were under stiff selling pressure during their pit
sessions. Efforts were likely exacerbated by a stronger dollar, which was
recently up as 0.9% against a basket of major foreign currencies. Gold extended
its overnight slide as it fell deeper into negative territory, closing with a
3.1% loss at $1565.90 per ounce, just above its session low of $1564.80 per
ounce. Silver tumbled to a new multi-month low of $26.80 per ounce for the July
contract before it settled pit trade at $26.86 per ounce for a 5.4% loss.
Advancing Sectors:
None
Declining Sectors:
Energy -4.0%, Materials -3.3%, Tech -2.6%, Financials -2.3%, Consumer Discretionary
-2.2%, Industrials -2.1%, Health Care -1.4%, Consumer Staples -1.2%, Utilities
-1.0%, Telecom -0.7%DJ30 -250.82 NASDAQ -71.36 NQ100 -2.5% R2K -2.5% SP400
-2.7% SP500 -30.18 NASDAQ Adv/Vol/Dec 516/1.77
bln/1973 NYSE Adv/Vol/Dec 571/865 mln/2470