YAHOO [BRIEFING.COM]: Buying
was strong and broad this morning, but it took little time before the effort
was challenged. Support at the flat line ultimately helped prevent a broad
market loss, though.
Given that the stock market
has fallen in each of the past four weeks for a cumulative loss of about 16%,
early participants bid stocks higher with the notion that they are likely due
for a bounce, especially since the tone of trade in Europe had improved so much
in the region's first session of the new week. As of last week's close, the
EuroStoxx 50 had fallen more than 15% during August to a new two-year low, but
it bounced back to a 1% gain today.
Europe's major bourses actually
gave up some of their gains, though. That drift off of session highs provided
an excuse to some domestic participants to capitalize on the opening pop by
U.S. markets. The S&P 500 was up about 2% at the open, but steadily
surrendered all of that until it came in contact with the flat line. On a few
occasions participants provided support to stocks near the neutral line, but
none of that ever provided stocks with a floor for a sustainable rebound.
Financials hampered the broad
market all session. Along with the rest of the market, the sector had been up
about 2% in the first few minutes of trade, but it was ultimately beaten down
to a 1.3% loss. The sector's weakness was largely rooted in losses among bank
stocks, especially Bank of America (BAC 6.42, -0.55), which
continues to wrestle with investor concerns about capital levels and exposure
to relatively risky markets. Goldman Sachs (GS 106.51, -5.25)
was clipped aggressively late in trade when it was reported that the investment
bank's chief executive hired a lawyer.
Technology stocks offered some
support. The sector, which is the largest by market weight, ended the day with
a 0.7% gain. That was only exceeded by telecom stocks, which advanced 0.8% as a
group.
The market's struggle to
sustain any kind of a gain bolstered the case to continue buying gold. The
precious metal closed pit trade with a 2.1% gain at $1891.90 per ounce, but
afterward it extended its move above $1900 per ounce for a fresh record high.
Oil prices were also pushed
higher. The energy component closed pit trade with a 2.3% gain at $84.12 per
barrel. In the backdrop of the action, rebels entered the Libyan capital city,
leaving traders to wonder just how long it will take before the country's oil
output returns to full capacity.
General strength within the
commodity complex took the CRB Commodity Index up 0.7% today.
Among the better performers,
gold prices climbed more than 2% to trade within $1 of $1900 per ounce in this
afternoon. The move took the precious metal to a new record high before it
closed pit trade with a 2.1% gain at $1891.90 per ounce.
Silver was also a strong
performer. It settled with a 2.5% gain at $43.47 per ounce, but had actually
cleared $44 per ounce in early morning trade.
Oil prices pushed as high as
$84.80 per barrel in the final minutes of pit trade, but ultimately settled at
$84.12 per barrel with a 2.3% gain.
In contrast to the other
widely-watched commodities, natural gas succumbed to selling pressure. As such,
the energy component settled with a 1.3% loss at $3.89 per MMBtu.
Advancing Sectors: Telecom +0.8%, Tech +0.7%, Industrials
+0.4%, Consumer Discretionary +0.3%, Consumer Staples +0.3%, Health Care +0.2%
Unchanged: Materials
Declining Sectors: Utilities -0.1%, Energy -0.6%, Financials
-1.3%DJ30 +37.00 NASDAQ +3.54 NQ100 +0.3% R2K -0.1% SP400 +0.1% SP500 +0.29
NASDAQ Adv/Vol/Dec 1137/1.95 bln/1457 NYSE Adv/Vol/Dec 1254/1.19 bln/1749