YAHOO [BRIEFING.COM]: Stocks
got off to a slow start after bearish data from around the world overshadowed
investor optimism. Japan reported a wider-than-expected trade deficit while the
French and Eurozone PMI readings were well short of expectations. Domestically,
the weekly initial claims exceeded expectations. After marking session lows
thirty minutes into the trading day, the major averages set off on a day-long
climb towards positive territory. As a result, the S&P 500 finished flat.
Healthcare stocks were generally higher as they benefited from the day's
risk-off sentiment. Within the sector, Questcor (QCOR 30.33, +3.98) closed higher by
15.1% after losing nearly 49.0% during yesterday's sell-off which was sparked
by doubts as to whether insurance companies will cover Questcor's Acthar gel.
Providers of health care equipment and supplies also saw strength within the
defensive sector. CryoLife (CRY 5.90, +0.14), Meridian Bioscience (VIVO 18.84, +0.38), and Masimo (MASI 24.87, +0.39) all posted gains
between 1.6% and 2.4%. On the downside, Horizon Pharmaceuticals (HZNP 3.48, -1.10) slumped 24.0% after
pricing a $75 million public offering of common stock and warrants at $3.50 per
unit.
The Dow Jones Transportation Average ended lower by 2.8% as it trailed the
broader market. The bellwether group showed considerable weakness as railroads
weighed on the complex. The four railroad components of the average were firmly
lower after Norfolk Southern (NSC 66.11, -6.58) cut its guidance due to slumping demand,
and decreasing revenues from fuel surcharges. Norfolk Southern slid 9.1% while CSX (CSX 21.49, -1.30), Kansas City Southern (KSU 76.90, -2.22), and Union Pacific (UNP 120.95, -4.10) all fell between 2.8%
and 6.0%.
Only Overseas Shipholding Group (OSG 7.16, +0.15) managed to stay positive within the
transportation average while CH Robinson (CHRW 57.55, +0.15) spent the session
hovering around its flat line.
Looking at the industrial sector, CLARCOR (CLC 43.75, -5.82) slumped 11.7% after
delivering a disappointing quarterly report. The company missed on earnings and
revenues and the conference call contributed to the negative sentiment as
management issued downside fourth quarter and full-year guidance.
Apogee
Enterprises (APOG
19.50, +1.88) was a notable outlier among industrial stocks. The producer of
building materials advanced 10.7% after beating on earnings and revenues.
Management was upbeat in its conference call as upside guidance was issued for
full-year 2013.
Green
Mountain Coffee Roasters (GMCR 27.84, -2.97) shed 9.6% after Starbucks (SBUX 51.19, +1.07) announced it will
begin selling a single-serve brewing machine for $199.00. The Verismo will
first be sold online before becoming available at Starbucks cafes next month.
In addition to the $199.00 model, the company will also sell a $399.00 version
which contains a larger water tank and an LCD display. Starbucks' presence in
the single-serve market is expected to take a chunk out of a market previously
dominated by Green Mountain's Keurig machines.
Two names made their exchange debut today. Online real estate search service, Trulia (TRLA 24.00, +1.90) surged 41.2% in its
public debut. Shares of the company began trading at $22.00 after the initial
public offering was priced at $17.00. Trulia's peer, Zillow (Z 46.17, +0.62) has risen over 130.0%
since the company went public in July of last year. Meanwhile, Susser Petroleum (SUSP 22.91, -0.49) added 11.8% to its
initial public offering price of $20.50.
The latest weekly initial jobless claims count totaled 382,000, which is higher
than the 375,000 that had been expected. The tally is above the revised prior
week count of 385,000. As for continuing claims, they fell to about 3.272
million from 3.304 million.
Separately, the Philadelphia Fed Survey rose to -1.9 for September. The reading
shows an improvement over last month's -7.1. Economists polled by Briefing.com
had expected that the Survey would improve to a -4.0 reading.
Lastly, leading indicators for August decreased by 0.1%, which is worse than
the unchanged reading that had been widely expected to follow the prior month's
0.4% increase.
Crude oil erased overnight
losses as it inched higher into positive territory during morning pit trade.
The energy component peaked at a session high of $92.69 per barrel and
pulled-back slightly in afternoon action. Crude settled 0.1% higher at $92,35
per barrel, booking its first gain in four sessions.
Natural gas traded higher despite bearish inventory data that showed a build of
67 Bcf when a build of 65 Bcf was anticipated. It initially dropped to a
session low of $2.77 per MMBtu but quickly recovered. After trading in a
relatively consolidative pattern in afternoon floor trade, natural gas settled
with a 1.1% gain at $2.80 per MMBtu.
Gold slid further into the red and to its pit session low of $1757.70 per ounce
following the Philadelphia Fed and August Leading Indicators data. However,
buyers stepped in and brought prices up to the unchanged line by afternoon
action. The yellow metal settled just 0.1% lower at $1770.10 per ounce despite
a stronger dollar index.
Silver also slid to its session low of $34.12 per ounce on the economic data
but recovered into positive territory in late morning action. It brushed a
session high of $34.76 per ounce and settled for a 0.3% gain at $34.69 per
ounce.
There are no notable releases on tomorrow's economic calendar. However, it is
important to note that quadruple witching occurs tomorrow. This means that
stock index futures, stock index options, stock options, and single stock
futures are all set to expire.DJ30 +18.97 NASDAQ -6.66 SP500 -0.79 NASDAQ
Adv/Vol/Dec 909/1.76 bln/1524 NYSE Adv/Vol/Dec 1182/678.5 mln/1821