YAHOO [BRIEFING.COM]: After a
back-and-forth start to the day, stocks again succumbed to selling pressure in
a continuation of the four week trend that has taken the S&P 500 down 16%
during that time. Today, the S&P 500 lost another 1.5%.
Shares of Hewlett Packard (HPQ 23.60, -5.91) fell after the company
announced yesterday that it will sell its PC business and acquire European data
analytics company Autonomy. In other news, the company reported slightly better
than expected earnings of $1.10 per share (Capital IQ Consensus Estimate of
$1.11 per share) and saw in-line revenues of $31.2 billion. The company did
however announce downside guidance of $1.12-1.16 per share (Capital IQ
Consensus Estimate of $1.31 per share) and revenues of $32.1-32.5 billion
(Capital IQ Consensus Estimate of $33.99 billion).
Financials were one of the
worst performing sectors in the S&P 500, trading down 2.0% collectively.
Bank of America (BAC 6.97, -0.04) lost 0.6% after announcing they will cut 3,500 jobs
this quarter.
Clearwire (CLWR 3.01, +0.70) saw strong gains of 30%
following a Bloomberg report that Sprint (S 3.42, -0.07) will buy the remaining
equity in the company that it doesn't already own.
Intuit (INTU 43.65, +3.35) was among the top
performers today after beating on both the top and bottom lines. The company
announced earnings of $0.02 per share, excluding non-recurring items, which was
$0.02 better than the Capital IQ Consensus Estimate of $0.00. Revenues rose
10.4% YoY to $593 million versus the $583.7 million consensus. Management issued
in-line guidance for full year 2012, expecting earnings per share of
$2.85-2.94, excluding non-recurring items, vs. $2.85 Capital IQ Consensus
Estimate and revenues of $4.19-4.29 billion vs. $4.2 billion Capital IQ
Consensus Estimate.
Treasuries across most of the
complex finished little changed with outperformance coming from the long bond.
Today's quiet session saw the 10-yr yield settle at 2.071%.
Next week's calendar is
relatively light until the end of the week, which brings the annual Jackson Hole
economic policy meeting next week (Aug 26-28), where central bankers and
economists will be discussing the current economic situation. We've already
seen a bit of this, but we would expect speculation about Fed acitivity to
intensify in the coming week as we approach that meeting. Prior to that
however, econ data of interest includes New Home Sales (Tues), Durable Orders
(Wed), and revised GDP and Michigan Sentiment on Friday. There are also ~70
companies we cover reporting earnings next week, including a number of
specialty retailers. Some of the more interesting reports out next week
include: Tuesday: HNZ, WSM; Wednesday: AEO, TOL, AMAT; Thursday: P and Friday:
TIF.
Precious metals were once
again beneficiaries of the flight to safety on continued concerns about global
economies. In overnight trade gold futures rallied to a new all time high at $1881.40,
while silver surged to its best levels, at $42.64, since May 3. Neither metal
extended their respective rally after pit trade opened. Gold pulled back to
near the $1850 mark and spent the remainder of the session chopping around that
area. Silver pulled back to the $41.50 mark but manage to rebound off that
level to finish near highs. Gold ended with gains of 1.6% at $1851.50 per
ounce, while silver finished up 3.9% to $42.30 per ounce.
Sept crude oil, which settled
higher by 0.2% to $82.26 per barrel, had an uneventful end to the day as it
chopped around the flat line for most of the afternoon. Earlier in the session
futures did manage to recoup overnight losses, where they traded as low as
$79.17, but it trade was quiet after that. Sept natural gas ended higher by
1.3% to $3.94 per MMBtu.
Advancing Sectors: None
Declining Sectors: Consumer
Staples XLP (-0.2%), Healthcare XLV (-0.3%), Utilities XLU (-0.6%), Telecom IYZ
(-1.0%), Consumer Discretionary XLY (-1.1%), Materials XLB (-1.2%), Industrials
XLI (-1.2%), Energy XLE (-1.4%), Financials XLF (-1.5%), Technology XLK
(-2.1%)DJ30 -172.93 NASDAQ -38.59 SP500 -17.12 NASDAQ Adv/Vol/Dec 721/2.33
bln/1860 NYSE Adv/Vol/Dec 732/1.51 bln/2320