YAHOO [BRIEFING.COM]: Markets closed lower for a fourth consecutive
session as a drop of 1.0% saw the Nasdaq
pace the decline. Stocks shrugged off the disappointing import/export data from
Shares of Cummins
(CMI 86.91, -8.53) fell sharply after the company announced it expects its
full-year revenue outlook for 2012 to match 2011 despite prior guidance
suggesting an increase of 10%. The company also announced it anticipates second
quarter revenues will come in at around $4.45 billion, well short of the
Capital IQ Consensus Estimate which is calling for $5.08 billion. Not to go
unnoticed was the company increasing its quarterly dividend 25% to $0.50 per
share. Today’s weakness dropped the stock to levels not seen since December. Caterpillar (CAT 80.27, -2.87) moved lower in
reaction to the announcement.
Alcoa (AA 8.40) slid 4.1% despite
announcing in-line earnings per share results, and a revenue beat that was
accompanied by the company reaffirming its aluminum outlook for the remainder
of 2012.
Applied Materials
(AMAT 10.71, -0.30) shed 2.7% after the company lowered its fiscal year 2012
sales guidance, and announced it expects both third quarter earnings per share
and revenues to come in at the lower end of the their expected ranges.
Patriot Coal (PCXCQ.PK 0.21, -0.10)
plunged more than 50% after the company confirmed plans to file for Chapter 11
reorganization. Those who follow the stock should note the ticker change from
‘PCX’ to ‘PCXCQ.PK.’ Peabody Energy
(BTU 22.44, -0.87) and Arch Coal
(ACI 6.11, -0.56) are names that have some exposure to the company.
Coca-Cola (KO 77.98, +0.00) finished
flat after the company announced a two-for-one stock split which will increase
its shares outstanding to 11.2 billion from 5.6 billion.
Miners were under pressure as the underlying metals saw heavy selling. Gold
lost more than $20 at $1568 per ounce while the selling pressure in silver has
dropped it $0.65 to near $26.75 per ounce. Agnico Eagle Mines
(AEM 38.74, -1.67) was one of the worst performing gold miners while pure play
silver miner Silver Wheaton
(SLW 26.12, -1.19) slipped 4.4% on the session. Both underperformed the
broad-based Market Vectors Gold Miners ETF
(GDX 42.87, -1.38).
Treasuries ended on session highs as an afternoon selloff in equities sparked a
safety bid. The long bond ended the day up close to half a point as its yield
slid 2.6 bps to 2.594%. A less aggressive bid in the 10-yr note lowered its
yield by 1.5 bps to 1.498%. Flattening along the yield curve caused the 2-10-yr
spread to narrow to 122 bps.
Crude oil struggled in the red for its entire floor session as the
dollar advanced. The energy component set a session high of $85.79 per barrel
in early morning action but quickly pulled-back and fell lower. The decline
accelerated in afternoon pit trade as crude plummeted to a session low of
$83.68 per barrel and settled with a 2.3% loss at $83.92 per barrel.
Natural gas also fell deeper into negative territory as its pit session
progressed. Despite efforts to consolidate losses and brushing a session high
of $2.83 per MMBtu in late morning action, nat gas slid further and closed with a 4.9% loss at $2.74
per MMBtu.
Gold rose to a pit session high of $1602.00 per ounce in early morning action
on EU finance ministers' announcement that
Silver briefly broke into positive territory and brushed a pit session high of
$27.53 per ounce before trending lower for the remainder of the session. It
dropped as low as $26.82 per ounce before closing the session at $26.89 per
ounce, or 2.0% lower.
Data picks up tomorrow as the weekly MBA Mortgage Index, the trade balance,
wholesale inventories, and the FOMC minutes are all released. Treasury will
hold a $21 bln 10-yr note reopening. DJ30
-83.17 NASDAQ -29.44 SP500 -10.99 NASDAQ Adv/Vol/Dec
817/1.65 bln/1653 NYSE Adv/Vol/Dec 1024/727.3
mln/2010