YAHOO [BRIEFING.COM]: A bleak
weekly jobless claims count caused consternation ahead of tomorrow's pivotal
nonfarm payrolls report. Stocks responded by plodding along with modest losses
for the entire session.
Initial jobless claims for the
week ended July 31 to a three-month high of 479,000, which was worse than the
expected initial claims count of 455,000. Continuing claims came down 34,000
from the prior week, but they remain at uncomfortably high levels above 4.5
million.
Even though the weekly claims
figures will not play a part in the calculation of the July payrolls report,
which is due tomorrow, the data stirred concern that the report might not show
the improvement that some had hoped for following a better-than-expected ADP
Employment Change reading yesterday.
Uncertainty ahead of the
payrolls report kept many on the sidelines. In turn, trading volume on the NYSE
totaled a pathetic 875 million shares.
A lack of interest in stocks
left stocks to trade listlessly for the entire session, though the major indices
were able to trim their losses into the close.
Financials and tech stocks
weighed on trade. The two sectors, which are the two largest by market cap and
combine for 35% of the stock market's weight, both fell 0.4%. Weakness in the
tech sector was partly owed to semiconductor stocks (-0.6%), while financials
fell amid losses in consumer finance plays (-1.6%).
Insurers showed relative
strength, though. Prudential Financial (PRU 58.00, +1.29) and Cigna
(CI 33.96, +1.81) both bested earnings expectations. However, Hartford
Financial (HIG 22.68, -1.16) lowered its profit outlook even though it
had an upside earnings surprise of its own.
Retailers settled near session
highs with a 0.6% gain, collectively. The group was led by Abercrombie
& Fitch (ANF 39.53, +0.73), which posted stronger-than-expected
same-store sales for July and greater-than-expected revenue figure for the
latest quarter, and Macy's (M 19.78, +0.34), which also had
stronger-than-expected same-store sales results, but went on to issue upside
guidance.
Currencies lacked influence
over the broader market as the dollar dipped 0.2%. Most of its weakness was
owed to strength in the yen, which closed near its best levels of the year, and
a bounce by the euro following the European Central Bank's decision to leave
its benchmark rate unchanged at 1.00% and the Bank of England's choice to keep
its target rate at 0.50% and maintain its bond repurchase program. ECB
President Trichet followed up the decision with bullish comments about Europe's
economy. That seemed to complement positive comments from other regional
officials regarding fiscal progress in Greece.
Commodities concluded pit
trade for Thursday with mixed results, but the CRB Commodity Index still shed
0.5%.
Natural gas was one of the
worst performers. It had been as high above $4.80 per MMBtu in the early going,
but sellers stepped in once it was learned that weekly inventories had a build
of 29 bcf, which is actually less than the 33 bcf that had been widely
expected. Contract prices for the commodity closed 2.8% lower at $4.61 per
MMBtu.
Oil prices never garnered any
real support. In turn, contracts for crude closed with a 0.6% loss at $82.01
per barrel.
Precious metals made modest
gains. Specifically, gold tacked on 0.3% to finish at $1199.30 per ounce and
silver settled 0.2% higher at $18.32 per ounce.
In the soft commodities space,
wheat prices continued their ascent. The grain gained 7.3% to close at $8.11
per bushel amid reports that Russia, which produces some 8% of the world's
wheat, will ban exports of grains in August.
Advancing Sectors: Materials (+0.3%), Telecom (+0.3%),
Consumer Discretionary (+0.2%), Industrials (+0.1%), Energy (+0.1%)
Declining Sectors: Consumer Staples (-0.4%), Financials
(-0.4%), Tech (-0.4%), Health Care (-0.1%)
Unchanged: Utilities DJ30 -5.45 NASDAQ -10.51 NQ100 -0.2% R2K
-1.2% SP400 -0.5% SP500 -1.43 NASDAQ Adv/Vol/Dec 871/1.78 bln/1740 NYSE
Adv/Vol/Dec 1273/875 mln/1733