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 China and opened with solid gains after EU finance ministers announced a plan to expedite EUR30 billion for the recapitalization of Spanish banks. The major averages gave up those gains in the first hour of trading, and then dropped precipitously after engine maker Cummins lowered its full-year 2012 revenue outlook.   

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 Spain would be given EUR 30 bln by the end of July to help recapitalize banks. However, the enthusiasm faded and sellers stepped in as the dollar regained strength. The yellow metal erased all of its earlier gains and slid to a session low of $1578.70 per ounce before settling floor trade with a 0.6% loss at $1579.40 per ounce.

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