YAHOO [BRIEFING.COM]: The stock market fell from an opening gain to a loss of more than 1% before it came clawing back. However, resistance at the neutral line kept the move from extending into positive territory, so stocks settled with modest losses.

Stocks were up broadly in the first few minutes of the session. The positive tone came as the euro hit a new two-month high and Europe's major bourses advanced amid data that suggested eurozone economic confidence was stronger-than-expected in July. Though the euro remained strong and finished with a 0.6% gain, the continent's primary bourses retreated into the red.

Europe's markets weakened as the U.S. averages began to descend. The slide wasn't caused by any particular catalyst, but it gained momentum as sellers started to turn against tech stocks. Tech stocks settled with a 0.9% loss as participants reacted negatively to the latest earnings and forecasts from Akamai (AKAM 38.35, -5.68) and NVIDIA (NVDA 9.13, -1.00).

Consumer staples were stomped for a 1.1% loss in response to disappointing reports from Colgate-Palmolive (CL 78.12, -5.74) and Kellogg (K 47.98, -3.54). A downgrade of CVS (CVS 30.90, -0.64) further hampered the consumer staples space.

Financials helped lead an afternoon rebound attempt. Life and health insurers (+2.0%) attracted considerable support amid better-than-expected earnings from Lincoln National (LNC 25.76, +1.67). The financial sector finished with a 0.3% gain - it was the only sector to settle in higher ground.

The inability of the broader market to follow the financial sector into positive territory resulted from resistance at the neutral line, which was just above the 1105 line for the S&P 500.

Despite such resistance, health care stocks held on to close flat. Express Scripts (ESRX 44.66, +2.46), which exceeded earnings expectations for the latest quarter, was a primary source of strength. Genzyme (GENZ 69.79, +1.80) provided additional support amid ongoing speculation about its takeover.

Energy stocks settled just below the neutral line. Several members of the sector were out with their latest results, including Dow component Exxon Mobil (XOM 60.34, -0.57), National Oilwell Varco (NOV 38.88, +1.55), and Noble Energy (NE 32.03, -0.08). Each reported an upside earnings surprise. In contrast, Pride International (PDE 23.38, -1.22) came short of the consensus earnings estimate.

Today's data was limited to news that initial jobless claims for the week ended July 24 came in at 457,000, which is below the expected total of 464,000. Continuing claims hit 4.57 million, which is up from the 4.48 million continuing claims that had been registered for the previous week.

Treasuries saw mixed interest. Disappointing results from an auction of 7-year Notes did nothing to stimulate demand. The auction drew a bid-to-cover of 2.9 and dollar demand of $80.6 billion, which is the lowest amount in nearly one year.

It was a sizeable up-day for the commodities sector, as the CRB Commodity Index rallied for 1.5%. Every group in the index finished in positive territory today. Energy was the session's largest advancer as it posted a 2.1% gain. Sept natural gas finished higher by 2.4% to $4.82 per MMBtu. This morning's smaller-than-expected build in inventories help natural gas higher today. Sept crude oil gained 1.9% to finish at $78.36 per barrel.

Sept silver gained 1% to close at $17.62 per ounce, rebounding from the recent two session sell off where silver dropped over 75 cents. August gold finished up 0.7% to $1168.40 per ounce.

Advancing Sectors: Financials (+0.3%)
Declining Sectors: Utilities (-1.6%), Consumer Staples (-1.1%), Tech (-0.9%), Consumer Discretionary (-0.6%), Telecom (-0.5%), Industrials (-0.2%), Energy (-0.1%)
Unchanged: Health Care, Materials DJ30 -30.72 NASDAQ -12.87 NQ100 -0.7% R2K -0.1% SP400 -0.5% SP500 -4.60 NASDAQ Adv/Vol/Dec 1238/2.33 bln/1348 NYSE Adv/Vol/Dec 1591/1.18 bln/1423