YAHOO [BRIEFING.COM]: Broad-based selling took the stock market roughly 2% lower for its
worst performance in two weeks. Only on a few occasions did sellers let up,
leaving stocks to settle at or near session lows.
Ripe for profit taking after a
6% weekly climb, stocks endured a steady descent today. The push lower began
ahead of the open as early participants watched Europe's major bourses falter.
Despite all the recent talk about comprehensive eurozone stability plans and
deadlines, nothing of substance has been unveiled. Concern that fiscal and
financial problems there could continue caused the region's major bourses to
log losses well in excess of 1%. Meanwhile, the euro dropped 1.1% to $1.373.
Europe continues to take
precedence over corporate headlines. Even a better-than-expected quarterly
report from Citigroup (C 27.93, -0.47) couldn't keep the
financial services giant from succumbing to broad market weakness. The stock
settled near its session low after it had been up markedly in morning trade. Wells
Fargo (WFC 24.42, -2.25) suffered its worst single-session percentage
loss in two months, or its second worst in two years, after the lender's
earnings came short of the consensus estimate. Concerted selling took
financials down 3.3%, which is worse than what any other sector suffered, but
marquee investment bank and brokerage outfit Goldman Sachs (GS
96.90, +0.17) managed to remain near the neutral line ahead of its report
tomorrow morning.
Shares of Halliburton (HAL
34.48, -2.95) surged this past Friday, but the stock gave it all up as analysts
shrugged off an upside earnings surprise to scrutinize the line items on the
company's latest quarterly report. Several other oil and gas services stocks
traded lower in sympathy.
Broad market weakness couldn't
completely detract from the enthusiastic response made for a $38 billion merger
between Kinder Morgan (KMI 28.19, +1.30) and El Paso (EP
24.45, +4.86). Shares of EP were able to set a new multi-year high.
Tech stocks failed to offer
the same leadership that they have in recent sessions. Imbued by broad market
weakness, the sector slid to a 1.8% loss. Heavyweight IBM (IBM
186.59, -3.94) was hit hard ahead of its quarterly report. The stock just set a
new record high this past Friday.
Utilities were today's
strongest performers. The defensive-oriented sector limited its loss to only
0.3%. Many electric utilities, most of which operate regulated businesses, were
even able to produce positive returns today.
Although participants were
decidedly pessimistic in their approach today, sending the Volatility Index
more than 18% higher as of the close, there wasn't a great deal of share volume
behind the effort. In fact, share volume on the NYSE failed to break 1 billion.
It was a relatively quiet
start to the week for commodity futures. Gold, which ended lower by 0.4% at
$1676.60 per ounce, and silver, which finished lower by 1.1% at $31.83 per
ounce, sold off in late morning trade, dropping from the flat line down to
respective lows at $1665.40 and $31.48. Both metals were able to bounce off
those lows to end with modest declines on the day. In afterhours trade, metals
have traded back toward lows. Note that the pullback in the precious metals did
not correlate with any specific move in the dollar.
Crude oil finished lower by
0.4% at $86.38 per barrel, after it spent the session chopping around the flat
line. Natural gas shed 0.7% to close at $3.68 per MMBtu.
Advancing Sectors: (None)
Declining Sectors: Financials -3.3%, Materials -3.1%,
Industrials -2.7%, Consumer Discretionary -1.9%, Tech -1.8%, Energy -1.7%,
Health Care -1.7%, Consumer Staples -0.9%, Telecom -0.7%, Utilities -0.3% DJ30
-247.49 NASDAQ -52.93 NQ100 -1.6% R2K -3.4% SP400 -2.9% SP500 -23.72 NASDAQ
Adv/Vol/Dec 463/1.68 bln/2076 NYSE Adv/Vol/Dec 571/905 mln/2456