YAHOO [BRIEFING.COM]: After setting session lows 40 minutes before
the close, stocks recovered some losses in the final minutes of trading. The
S&P 500 and Nasdaq led
the decline at nearly 1% each, with the Dow slightly outperforming at -0.8%.
All sectors were in the red as energy, consumer discretionaries,
and materials led the losses. Today's trading was driven by slim earnings
outperformance coupled with lowered full year guidance from multiple firms. The
only economic data of note came from the FHFA which reported the Housing Price
Index. For May, the index increased by 0.8%, which follows a 0.8% increase in
the prior month.
Buffalo Wild Wings
(BWLD 78.90, -1.79) and Panera Bread
(PNRA 141.91, -0.81) traded lower ahead of their after-hours reports. The
results of the two restaurants should shed some light on consumer spending
during the past quarter.
In the technology sector, besides the highly anticipated Apple (AAPL 600.92, -2.91) earnings, reports
from Broadcom (BRCM 30.77, -0.21), and Juniper Networks (JNPR 14.82, -0.41) bear watching as
well.
Homebuilders saw significant underperformance today as the SPDR S&P Homebuilders ETF (XHB 21.12, -0.46) traded down 2%.
Homebuilder KB Homes
(KBH 9.63, -0.53) led the sector lower with today's 5.2% decline dropping the
stock back onto near-term support.
The energy sector was the primary laggard this session, down over 2.5%.
Coal producer Peabody Energy
(BTU 20.55, -2.61) traded at more than a three-year low after a mixed second
quarter report with downside third quarter earnings guidance. The company
expects lower thermal coal pricing in the third quarter.
The industrial sector also underperformed, down over 1.5%. UPS (UPS 74.34, -3.61), Rockwell Collins (
Shares of Cisco Systems
(CSCO 15.12, -0.95) were under severe pressure all day after VMware (VMW 88.89, -0.34) acquired network
virtualization company Nicira. The acquisition posed
as a potential competitive threat for both Cisco and rival Juniper Networks (JNPR 14.82, -0.41). Today's selling has
dropped Cisco onto support in the $15.00 area that dates back to both last
summer and the 2009 bottom.
Crude oil spent the majority of its pit session chopping around
just above the unchanged line. Moves in the energy component came on improved
Chinese manufacturing data and weak manufacturing data for
Natural gas continued its fifth session of gains as it inched higher for most
of floor trade and brushed a session high of $3.20 per MMBtu
in afternoon action. It settled 1.9% higher at $3.18 per MMBtu.
Precious metals dropped for a second session as the dollar rose on Europe's
worsening debt crisis after Moody's lowered its credit-rating outlook yesterday
for Germany, the Netherlands, and Luxembourg. Gold managed to break into
positive territory and touch a session high of $1584.00 per ounce following
weak manufacturing data but lost steam as the dollar regained its momentum. The
yellow metal then fell to a session low of $1567.80 per ounce but recovered
most of its losses in afternoon action and settled just 0.1% lower at $1576.00
per ounce.
Silver also briefly touched a session high of $27.15 per ounce in morning
action but quickly dropped to a session low of $26.58 per ounce. Like gold, it
then traded higher for the remainder of floor trade and settled with a 0.8%
loss at $26.81 per ounce.
Treasuries declined to record low levels with the 10-yr yields dropping to
1.40%DJ30 -104.1 NASDAQ -27.16 SP500 -12.21 NASDAQ Adv/Vol/Dec
662/1.68 bln/1743 NYSE Adv/Vol/Dec 768/808.2 mln/2238