YAHOO [BRIEFING.COM]: The
first session of the fourth quarter saw plenty of selling pressure. The effort
culminated in a sharp loss for stocks, which settled at new 52-week lows.
Stocks just booked their worst
quarter in almost three years, but sellers aren't yet ready to let up. As such,
action today opened in negative territory. Participants continued to take their
cues from Europe, where Greece admitted that it does not expect to hit a
deficit target and the eurozone's PMI Manufacturing Index for September
slipped. Between Germany, France, and the United Kingdom, only the UK
experienced an increase in its monthly Manufacturing PMI.
The major averages managed to
lure some buyers into the fold with help from a dose of upbeat data.
Specifically, the ISM Manufacturing Index for September improved to 51.6 from
50.6 when it was widely expected to slip to 50.5. Construction spending swung
from a 1.3% decline in July to a 1.4% increase in August, contrasting with the
consensus call for a 0.5% decline.
Still, stocks struggled to
sustain their midmorning move into positive territory. Once stocks faltered,
the broad market was never able to return to higher ground. The struggle
invited additional selling pressure, which prompted a steady descent. Bleeding
was broad, but financials suffered the worst loss of any major sector by
falling 4.5%.
Airlines experienced a
dramatic drop, led lower by AMR (AMR 1.98, -0.98), which was
caught up in rumors about bankruptcy. The company stated, though, that it is
not seeking a prepackaged bankruptcy.
Given such aggressive selling
pressure this session, the S&P 500 broke below the 1100 line and settled
there for the first time in little more than a year. Both the Dow and Nasdaq
also booked 52-week closing lows, but neither breached their one-year intraday
lows.
Amid such weakness, many
participants sought safety. In turn, the dollar advanced 1.1% against a basket
of major foreign currencies and the benchmark 10-year Note climbed about a
point and a half so that its yield tumbled to 1.75%. Gold prices advanced more
than 2% to almost $1758 per ounce.
Concerns about the euro zone
were once again the focus in commodities. Those concerns led to a flight to
safety in the precious metals. Gold futures did most of their rallying in the
overnight session. Throughout pit trade, prices moved sideways. Gold closed
with gains of 2.2% at $1657.70 per ounce. Silver futures had a very similar
pattern of trade, rallying in overnight trade only to spend pit trade range
bound. Silver ended with gains of 2.8% at $30.79 per ounce.
Strength in the dollar,
coupled with concerns about the euro zone, pressured crude oil prices, which
finished lower by 2% at $77.61 per barrel, its lowest settlement in a year.
Crude did rally into positive territory at one point, but quickly gave back
those gains to trade back toward lows. Natural gas prices shed 2% to finish at
$3.62 per MMBTu
Advancing Sectors: (None)
Declining Sectors: Consumer Staples -1.5%, Telecom -1.8%,
Utilities -2.3%, Tech -2.3%, Materials -2.6%, Consumer Discretionary -2.9%,
Industrials -3.0%, Health Care -3.2%, Energy -3.3%, Financials -4.5%DJ30
-258.08 NASDAQ -79.57 NQ100 -2.5% R2K -5.4% SP400 -4.6% SP500 -32.19 NASDAQ
Adv/Vol/Dec 209/1.71 bln/2352 NYSE Adv/Vol/Dec 294/1.39 bln/2789