YAHOO [ BRIEFING.COM ]: Stocks
traded listlessly again today. The lack of action comes after last week's heady
advance, but precedes the payrolls report on Friday.
The broad equity market was
mired near the neutral line for the second straight session. Participants
continue to rest on the laurels of last week's 5.6% gain, which was the best
weekly performance for the S&P 500 in about two years.
There weren't many headlines
that acted as trading cues for participants this session. The only item on the
economic calendar was the ISM Non-Manufacturing Survey for June. It came in at
53.3, which is less than the 54.0 that had been expected, on average, among
economists polled by Briefing.com. The reading is also less than the 54.6 that
was reported for the prior month.
Tomorrow's calendar features
the latest weekly initial jobless claims tally and the ADP Employment Report,
which is offers a glimpse into the always pivotal official Nonfarm Payrolls
Report on Friday. Uncertainty surrounding the jobs report ahead of its release
often results in range bound trade.
Tech stocks and industrial
issues displayed strength today. Those sectors settled with 0.5% gains, but
that was offset by weakness among financial stocks, which collectively shed
0.6%.
Financials were a primary
source of weakness for foreign markets in their latest round of trade. More
specifically, Commerzbank and Deutsche Bank (DB 58.40, -1.02)
weighed down Germany's DAX; BNP Paribas and Credit Agricole undercut France's
CAC, and; Britain's FTSE faltered amid weakness in Barclays (BCS
16.15, -0.59) and Royal Bank of Scotland (RBS 12.12, -0.45).
Banks in China were weak a day after Moody's made it know that loans to local
governments were likely understated by about a half trillion dollars. As an
aside, China tacked on another 25 basis points to its target interest rate, as
had been widely speculated in recent weeks.
The dollar displayed strength
all day long. Relative to a basket of competing currencies, the dollar advanced
0.6%. Most of the move was against the euro, which slid 0.8% to $1.431 as it
extended its prior session slide after analysts at Moody's downgraded
Portugal's debt yesterday afternoon.
Without any major surprises or
new catalysts to drive trade, share volume remained depressed. Participation
has been anemic all summer, but it has been especially sluggish in the days
that have bracketed the Independence Day holiday.
Precious metals extended their
respective rallies to a second session, with August gold gaining 1.1% to settle
at $1529.00 per ounce, while Sept silver rallied for 1.6% to end at $35.97 per
ounce. Despite strength in the dollar, both metals moved higher in light of
yesterday afternoon's news that Moody's cut Portugal's debt rating, as well as
inflation concerns following a rate hike in China.
It was an uneventful session
for August crude oil, which shed 0.3% to close at $96.65 per barrel. Crude
spent the session chopping around the unchanged mark, as the market awaits
tomorrow's inventory data, as well as Friday's jobs data. August natural gas
finished lower by 2.7% to $4.22 per MMBtu.
Advancing Sectors: Consumer Staples +0.6%, Industrials
+0.5%, Tech +0.5%, Materials +0.4%, Health Care +0.3%, Utilities +0.2%
Declining Sectors: Energy -0.2%, Consumer Discretionary -0.3%,
Financials -0.6%, Telecom -0.8%DJ30 +56.15 NASDAQ +8.25 NQ100 +0.3% R2K +0.4%
SP400 +0.6% SP500 +1.34 NASDAQ Adv/Vol/Dec 1453/1.65 bln/1101 NYSE Adv/Vol/Dec
1686/820 mln/1299