YAHOO [BRIEFING.COM]: Equities
got off to a strong start today but could not hold their gains into the
afternoon. The S&P 500 briefly touched a 4-year high before retreating to
session lows. Total volume was better than what has been seen in recent days,
but remained well below average. The Dow underperformed and finished lower by
0.5% while the S&P 500 shed 0.4%.
Financial stocks outperformed the broader market as the components appeared to
be benefit from the rotation out of traditionally safer stocks found in the
utility and telecom sectors. Major names showed considerable intraday strength,
but final gains were a bit slimmer due to the afternoon sell-off. JPMorgan Chase (JPM 38.04, +0.67) and Citigroup (C 30.73, +0.75) added 1.8% and 2.5%,
respectively. Today's strength has Citigroup up nearly 16.0% since its earnings
report in mid-July. European financials were even more exuberant as Deutsche Bank (DB 34.07, +1.38) and Credit Suisse (CS 18.68, +0.59) gained 4.2% and 3.3%,
respectively.
The materials sector also showed strength. Within the group, A.M. Castle & Co (CAS 11.69, +2.47) surged 26.8% after
Platinum Equity bought a 6.0% stake through metal processor Ryerson. The
private equity firm also said it might try to buy the rest of the company.
Meanwhile, Freeport-McMoRan (FCX 36.49, +1.13) advanced 3.2%.
The Dow Jones Transportation Average outperformed the market. After yesterday's
rally in airline stocks was brought on by a fare hike, Delta Airlines (DAL 9.71, +0.25) enjoyed its second day
of gains. Shares of the carrier ended higher by 2.6%. Trucking stocks were also
stronger with Con-Way (CNW 31.24, +0.46) up 1.5%.
Coal stocks rallied after the U.S. Court of Appeals in Washington threw out an
Environmental Protection Agency rule over limits on sulfur dioxide and nitrogen
oxide emissions. Alpha Natural Resources (ANR 6.90, +0.40) jumped 6.2% on the
news. Other coal names have faded some of the post-ruling gains, but they
remained bid. Westmoreland Coal (WLB 7.94, +0.45) and Peabody Energy (BTU 23.79, +0.85) advanced by 6.0% and
3.7%, respectively.
Earlier today, tech giant Apple (AAPL 656.06, -9.08) marked an all-time high at $674.88, but
some late morning selling dropped it into negative territory. The stock
remained there for the remainder of the session and finished with a loss of
1.4%. Elsewhere, Daktronics (DAKT 9.43, +1.37) soared 17.0% after beating on earnings and
revenues.
Shares within the telecommunications space weighed on the major averages. Neutral Tandem (IQNT 10.99, -0.56) slid 4.9% as selling
pressure pushed the stock down to levels last seen in mid-March. Meanwhile, Verizon (VZ 42.89, -0.81) and AT&T (T 36.59, -0.30) ended lower by 1.9% and
0.8%, respectively.
There are a few names of interest remaining on the tail end of the earnings
calendar. Dell (DELL 12.34, -0.22) will report earnings after today's close. The
personal computer retailer is expected to earn $0.45 on $14.66 billion
revenues. Meanwhile, Williams-Sonoma (WSM 38.23, +0.90) will also report after
the bell. The culinary retailer is expected to report earnings of $0.41 on $863.84
million revenues.
Tomorrow morning, two apparel companies will report their quarterly results.
Analysts expect American Eagle Outfitters (AEO 20.83, +0.38) to earn $0.21 on
revenues of $738.72 million. Elsewhere, expectations call for Express (EXPR 16.90, -0.03) to earn $0.17 on
$467.42 million revenues.
Crude oil traded higher in today's floor trade on a decline in the dollar and
further tensions in the Middle East. Earlier today, reports suggested that
President Obama has warned about military action against Syria if the country
deploys chemical or biological weapons. The energy component climbed to a
session high of $97.85 per barrel but lost steam in afternoon action. Despite
the pull-back, crude still managed to book a gain of 0.6% as it settled at
$96.89 per barrel.
Natural gas fell 11 cents, or 4%, to a floor session low of $2.70 per MMBtu
following reports that a U.S. Court put on hold an EPA rule over limits on
sulfur dioxide and nitrogen oxide emissions. However, concerns over
weather-related disruption of production in the Gulf had buyers step in and
quickly correct the move. It then popped to a session high of $2.84 per MMBtu,
but a sell-off heading into the close left natural gas to settle unchanged at
$2.78 per MMBtu.
Precious metals gained steam as the dollar fell in response to reports of
further evidence that the ECB may be moving toward capping yields on Italy and
Spain. In addition, Spain held a successful auction which has helped sentiment.
Gold traded higher for a fifth consecutive pit session and touched a new
three-and-a-half month high of $1643.60 per ounce. The yellow metal then traded
in a consolidative pattern and settled with a 1.2% gain at $1642.90 per ounce.
Silver also climbed higher in today's floor trade. It came off its session low
of $28.92 per ounce and settled with a solid 2.9% gain at $29.42 per ounce, or
just below its session high of $29.44 per ounce
Tomorrow's economic calendar includes three releases. The MBA Mortgage Index
will be announced at 7 AM ET, and existing home sales will be reported at 10 AM
ET. Finally, the FOMC minutes will be released at 2 PM ET.DJ30 -68.06 NASDAQ
-8.95 SP500 -4.96 NASDAQ Adv/Vol/Dec 1065/1.53 bln/1385 NYSE Adv/Vol/Dec
1309/640.9 mln/1648