YAHOO [BRIEFING.COM]: Tuesday's
trade ended with modest losses for stocks. The slide came amid a small, but
rather underwhelming dose of data.
Traders were largely inclined
to take profits after stocks hit their best levels in more than one month
during the prior session. In fact, a pronounced spell of selling dropped stocks
for a loss of almost 1% in the first hour of trade as participants reacted to
news that pending home sales for June fell 2.6% month-over-month. Though that
was less severe than the 5.0% decrease that had been expected, on average, by a
sample of economists polled by Briefing.com, many on Wall Street had
anticipated an increase.
As for other data, factory
orders for June fell a worse-than-expected 1.2%, while orders for May were
revised lower to reflect a 1.8% decline.
Personal income, spending, and
core personal consumption were flat in June. While income wasn't expected to
change, a slight increase in spending had been anticipated.
Technical support near the
1117 line helped the S&P 500 rebound from its morning slide, but resistance
at the neutral line kept it from turning positive. Once stocks were backed down
again, they spent the rest of the session chopping along in muddled trade.
Materials stocks were in the
worst shape this session. The sector shed 1.7% after Dow Chemical (DOW
25.50, -2.83) fell short of the consensus earnings estimate.
Financials fell 1.1%. The
sector was dragged down by life and health insurers (-2.6%) after Principal
Financial (PFG 24.80, -1.28) missed what Wall Street had projected for
earnings. MasterCard (MA 200.91, -1.61) also slipped, even
though it reported an upside earnings surprise. Mash & McLennan
(MMC 23.93, +0.05) also posted a better-than-expected bottom line, but it
managed to muster a slight gain.
Procter & Gamble (PG 59.94, -2.12) was the worst performer
in the Dow this session. The consumer staples giant disappointed with an
earnings miss.
In contrast, fellow Dow
component Pfizer (PFE 16.25, +0.77) was a top performing blue
chip after it exceeded earnings expectations for the latest quarter. Among blue
chips, its shares were also the most actively traded by volume this session.
Biotech play and takeover
target Genzyme (GENZ 70.20, -0.16) slipped in the face of
reports that Sanofi-Aventis (SNY 30.17, +0.34) believes the
company will not accept a buyout offer of less than $80 per share.
Collective strength among
health care stocks helped the sector climb 0.8%.
Baker Hughes (BHI 43.66, -6.57) got a beat down after
it reported earnings that were short of expectations. Still, the overall energy
sector advanced 0.2%, thanks to oil's climb. Oil prices closed pit trade at
$82.55 per barrel with a 1.5% gain after they set a new three-month high of
$82.64 per barrel.
Automakers were out with their
latest monthly sales figures. Ford Motor (F 12.91, -0.25)
announced that sales for July increased 5% year-over-year. Honda Motor (HMC
32.73, -0.20) had a near 6% year-over-year decline in American sales, while Toyota
Motor (TM 72.77, +0.73) reported a near 7% year-over-year decline in
July sales.
In currency trade, the dollar
dropped another 0.4% to breach its 200-day moving average and set a new
three-month low. Most of its weakness was owed to the euro's 0.4% advance to
its own three-month high.
The commodities pits saw mixed
action this session. That left the CRB Commodity Index to lose less than 0.1%
of its value.
Oil traded with strength for
the entire session. The commodity climbed to a new three-month high of $82.64
per barrel before it settled at $82.55 per barrel with a 1.5% gain.
Natural gas initially
attempted to rebound from its 4% loss in the prior session, but it inevitably
succumbed to further selling to finish with a 1.0% loss at $4.65 per MMBtu.
Gold prices garnered modest
support, such that the yellow metal closed with a tepid 0.2% gain at $1187.50
per ounce.
Meanwhile, silver settled flat
at $18.42 per ounce.
Advancing Sectors: Health Care (+0.8%), Energy (+0.2%)
Declining Sectors: Materials (-1.7%), Consumer Discretionary
(-1.3%), Financials (-1.1%), Consumer Staples (-0.7%), Industrials (-0.5%),
Tech (-0.4%), Utilities (-0.3%), Telecom (-0.1%) DJ30 -38.00 NASDAQ -11.84
NQ100 -0.4% R2K -0.9% SP400 -0.8% SP500 -5.40 NASDAQ Adv/Vol/Dec 933/2.01
bln/1694 NYSE Adv/Vol/Dec 1178/1.00 bln/1826