YAHOO [BRIEFING.COM]: The stock chopped its way to a flat finish after struggling to find direction during the first half of the session. Yet despite a sense of uncertainty among stocks, neither Treasuries nor precious metals found favor.

Stocks put together a strong start on the back of better-than-expected earnings from diversified financial services outfit UBS (UBS 16.50, +1.35) and an increase in income at Deutsche Bank (DB 68.06, +1.88). News that the Basel Committee on Banking Supervision will allow less strict capital and liquidity requirements for banks added to the positive backdrop surrounding financials in the early going.

Dow component DuPont (DD 40.38, +1.39) added to the positive tone by turning in an upside earnings surprise.

Meanwhile, embattled energy giant BP (BP 38.00, -0.65) reported a steep second quarter loss that was the result of expenses related to the oil spill in the Gulf. The oil outfit also announced plans to sell some $30 billion in assets during the next 18 months and confirmed that CEO Tony Hayward will be replaced by Robert Dudley in October.

Not all reports were strong. An earnings miss by U.S. Steel (X 45.76, -3.13) sent its shares to their worst loss in more than a month. The slide was exacerbated by profit taking, given that the stock had climbed more than 30% from its July low to the prior session's close. Peer AK Steel (AKS 14.49, -0.71) actually exceeded expectations for the quarter, but that couldn't keep profit takers away.

Retailers traded with outsized losses for almost the entire session. The group dropped 1.9%. Though there is no empirical evidence linking spending with consumer confidence, some suggested that the Conference Board's latest Consumer Confidence Index played a part in the weakness of the retail space. The Consumer Confidence Index for July came in at 50.4, which is down from the upwardly revised 54.3 that had been recorded for the prior month and slightly below the 61.0 that had been widely expected.

The broader market actually made a solid bounce shortly after the release of the report, but they were quick to give up that gain. Stocks then struggled to find their direction for the rest of the session.

The choppy, sideways slog that characterized afternoon trade came after stocks cleared their 200-day moving average in the prior session and settled at one-month highs. What's more, with stocks up more than 9% since their July low some wonder if the market is overbought in the near-term.

Such a prospect seemed to boost utilities stocks, which outperformed with a 1.6% gain. The sector remains in focus tomorrow with the release of earnings from Dominion (D 43.27, +0.67) and Southern Co. (SO 36.73, +0.65).

However, Treasuries, traditional safe havens, were weak for the entire session. Results from a $38 billion auction of 2-year Notes didn't do anything to lift demand. The auction attracted a bid-to-cover of 3.3, an indirect bidder participation rate of 33%, and dollar demand of $126.5 billion, each of which was down from the prior auction.

Precious metals had to grapple with stiff selling. In the process the price of gold dropped to its lowest level since May and settled with a 1.9% loss at $1158 per ounce. Silver prices settled 3.0% lower at $17.63 per ounce.

Weakness in the CRB Commodity Index (-0.8%) was led by a 2.5% drop in precious metals. Aug gold settled lower by 1.9% to $1158.00 per ounce and traded to its lowest levels since May 5. Sept silver shed 3% to close at $17.63 per ounce. Both metals sold off as money fled to riskier investments.

Sept crude oil settled lower by 1.8% to $77.50 per barrel. A weaker-than-expected consumer confidence number weighed on futures. Aug natural gas finished higher by 1.4% to $4.67 per MMBtu.

Advancing Sectors: Utilities (+1.6%), Consumer Staples (+0.4%), Telecom (+0.4%), Financials (+0.1%), Tech (+0.1%)
Declining Sectors: Consumer Discretionary (-1.2%), Industrials (-0.8%), Materials (-0.6%), Energy (-0.4%)
Unchanged: Health Care DJ30 +12.26 NASDAQ -8.18 NQ100 -0.1% R2K -0.5% SP400 -0.7% SP500 -1.17 NASDAQ Adv/Vol/Dec 1104/2.07 bln/1493 NYSE Adv/Vol/Dec 1332/1.11 bln/1686