YAHOO [BRIEFING.COM]: The
major equity averages were up with big gains before broad selling pressure cut
down stocks in afternoon action. A late bounce made for a better looking
finish, though.
Stocks ended the prior session
in weak fashion, but buyers came rushing back in this morning. Their interest
was stirred by news that Germany gave its support to the expansion of the
European Financial Stability Facility, which is aimed at shaping up the
otherwise precarious financial conditions of the region.
For the first time in a few
weeks data also proved encouraging. The latest weekly initial jobless claims
count dropped by 37,000 from the prior week to 391,000, which is the first time
in more than a month that initial claims fell below 400,000. The consensus
among economists polled by Brieifng.com had been pegged at 419,000 initial
claims.
What's more, the final reading
for second quarter GDP showed growth of 1.3%, which not only marks an increase
from the 1.0% growth rate posted in the prior reading, but it also exceeds the
1.2% growth that had been broadly expected.
Both the Dow and S&P 500
pushed ahead to gains in excess of 2% in the early going. Financials led the
advance, but tech stocks had a harder time attracting buyers.
Tech's sluggishness eventually
gave way to outright weakness, which weighed heavily on the Nasdaq. In fact,
the Nasdaq descended all the way to a 2.3% loss after it had been up with a
gain of almost 2% in the opening minutes of the session. A bounce in the final
hour helped the tech-rich Index recover, however.
Several Chinese stocks also
sold off in aggressive fashion, but never really rebounded. Youku.com (YOKU
16.24, -3.64), SINA Corp (SINA 73.23, -7.87), and Baidu.com
(BIDU 110.29, -11.13) all tumbled amid reports that suggested
authorities are investigating accounting irregularities at many US-listed
Chinese companies. Also in the backdrop, China's stock market underperformed
other global averages in overnight action by falling 1% to a new 15-month low.
Tomorrow marks the final
session of the week and of the third quarter. The S&P 500, up 2% during the
course of the past four sessions, is trying to score its third weekly gain in
10 weeks, but such a lengthy stretch of losses has the market down 12% this
quarter. That's the worst quarterly performance since the fourth quarter of
2008.
It was another quiet session
for gold. It chopped around the flat line for a majority of the session, but
eked out a gain of 0.1% to close at $1617.30 per ounce. Silver ended up 1% at
$30.53 per ounce.
Natural gas futures had a
volatile session following this morning's inventory data, which showed a
larger-than-expected build. Prices dropped approximately six cents on that
data, to lows at $3.69, but spent the remainder of the session rallying off
those lows to end with losses of 1.5% at $3.75 per MMBu. Crude oil ended up
1.2% at $82.14 per barrel. Futures spent the session chopping around in
positive territory.
Advancing Sectors: Financials +2.8%, Utilities +1.5%,
Energy +1.4%, Industrials +1.4%, Consumer Staples +1.0%, Health Care +0.8%,
Telecom +0.8%
Unchanged: Materials
Declining Sectors: Tech -0.4%, Consumer Discretionary
-0.9%DJ30 +143.08 NASDAQ -10.82 NQ100 -1.0% R2K +1.7% SP400 +1.0% SP500 +9.34
NASDAQ Adv/Vol/Dec 1580/2.29 bln/957 NYSE Adv/Vol/Dec 2164/1.12 bln/855