YAHOO [BRIEFING.COM]: Earnings,
Bernanke, and data were in focus on Friday, but the major averages diverged as
the Nasdaq jumped, the Dow dragged, and the S&P 500 settled flat.
Google (GOOG 601.45, +60.52) announced last evening
a huge upside earnings surprise that provided support to its shares for the
entire session. The stock actually booked its best single-session gain in more
than a year. The move took the stock to new nine-month highs.
GOOG represents 4% of the Nasdaq's
market weight and, in turn, helped the tech rich index sport a handsome gain
for the entire session. It also helped drive the tech sector 2.0% higher with
help from Seagate Technology (STX 15.51, +2.82), which
expressed an interest in going private.
Though tech, the largest
sector by market weight, traded with strength, financials fell 1.7% as bank
stocks lost another battle with sellers. The KBW Bank Index dropped 2.4%, which
came on top of the 2.6% slide that it had endured in the prior session. Amid
the slide the Bank Index set its lowest level in over a month.
General Electric (GE 16.30, -0.86) was also caught in a
sharp selling effort that was triggered by disappointment over its light
revenue figure, which led shares of the conglomerate to drop back below their
200-day moving average in their worst single-session slide in nearly five
months.
Comments from Fed Chairman
Bernanke were also in focus this morning. His comments indicated that further
quantitative easing and accommodation are likely, all else equal, caused the
dollar to dance. The greenback swung sharply between positive and negative
ground before it settled near its session high with a 0.6% gain.
A much anticipated currency
report from the Treasury was delayed.
For the second straight day
data had little meaningful impact on overall trade.
Retail sales for September
increased 0.6%, which is stronger than the 0.4% increase that had been widely
expected among economists polled by Briefing.com. Sales less autos for
September increased 0.4%, as expected.
Consumer prices for September
were muted. Overall prices increased 0.1% month-over-month and core prices were
unchanged month-over-month. The consensus among economists polled by
Briefing.com had called for a 0.2% monthly increase in overall prices and a
0.1% monthly increase in core prices.
The New York Empire
Manufacturing Index for October came in at 15.73, which is not only an
improvement from the 4.10 registered in the prior month, but also well above
the 5.75 that had been widely expected.
The preliminary Consumer
Sentiment reading for October from the University of Michigan came in at 67.9,
down from 68.2 in the prior month and below the 68.5 that had been widely
expected.
Business inventories for
August increased 0.6%, which is a bit more than the expected increase of 0.5%
after a 1.1% increase for the prior month.
The Treasury Budget for
September showed a deficit of $34.5 billion, which is a bit deeper than the
$33.5 billion deficit that had been expected among economists polled by
Briefing.com. Still, the latest deficit isn't as deep as the $45.2 billion
shortfall that was recorded for the same period one year ago.
Trading volume was robust amid
all of the headlines. It was also stoked with the expiration of monthly
options. The 1.4 billion shares traded on the NYSE was the second highest total
since July.
Commodities were weak today,
with all but one sector (livestock) closing in negative territory. Energy
(-1.9%) led the way lower today, with Nov crude oil futures shedding 1.7% to
close at $81.25 per barrel. In fact, crude oil posted its first weekly loss in
a month. Nov natural gas didn't fare much better after it dropped 2.3% to
finish at $3.532. Continued bearish fundamentals helped natural gas prices
traded to their lowest levels in 13 months.
A rebound in the dollar index
sent Dec gold, which finished lower by 0.9% to $1372.00 per ounce, and Dec
silver, which ended off 0.9% to $24.29 per ounce, lower today. Both metals have
extended their sell off in electronic trade, and are approaching their
respective lows.
Advancing Sectors: Tech (+2.0%), Consumer Discretionary
(+0.7%), Health Care (+0.4%), Energy (+0.3%), Utilities (+0.3%), Materials
(+0.3%), Consumer Staples (+0.2%)
Declining Sectors: Financials (-1.7%), Industrials (-0.9%),
Telecom (-0.5%)DJ30 -31.79 NASDAQ +33.39 NQ100 +2.1% R2K -0.2% SP400 +0.1%
SP500 +2.38 NASDAQ Adv/Vol/Dec 1253/2.25 bln/1340 NYSE Adv/Vol/Dec 1188/1.42
bln/1796