YAHOO [BRIEFING.COM]: Movements
in the stock market today were closely correlated with comments about debt
talks in the eurozone, even if headlines suggested that officials there are
doing little more that paying lip service to the topic.
The major equity averages
spent the first part of the session chopping along listlessly before participants
were prompted to send stocks lower. Their efforts came in response to reports
about the possibility that an EU Summit this coming weekend could be postponed.
Any delay would only underscore the lack of progress in eurozone debt talks.
However, word that leaders of
France and Germany will meet in coming days began to bring buyers back into the
fold. That headline came right about the time that the S&P 500 was able to
find technical support just below the psychologically-significant 1200 line.
Financials emerged as leaders,
but the broad market was initially slow to follow the sector's lead. Financials
finished near their session high with a 1.8% gain. Regional lender Fifth
Third (FITB 11.63, +0.97) was especially strong on the back of a
better-than-expected quarterly report. In contrast, American Express (AXP
46.19, +0.06) only found higher ground in the final minutes, despite an upside
earnings surprise of its own.
eBay (EBAY 32.15, -1.03) matched the consensus
earnings estimate, but its shares still traded sharply lower, making the stock
one of the worst performers in the Nasdaq, which lagged its counterparts for
the second straight session. Tech was the real source of weakness for the
Nasdaq, though. The sector logged a 0.5% loss for the session, adding to the 2%
decline that it suffered yesterday.
There was deluge of data
today, including initial jobless claims for the week ended October 15. Claims
totaled 403,000, which is spot on with what had been expected, among economists
polled by Briefing.com. The latest tally is also little changed from the
upwardly revised count of 409,000 claims recorded for the prior week.
The latest Philadelphia Fed
Survey improved to 8.7 for October from the -17.5 that was posted in September.
The October reading had been expected to remain negative, but improve to merely
-8.8.
Existing home sales set an
annualized rate in September of 4.91 million units, which is only slightly less
than the pace of 4.92 million units that had been generally anticipated among
economists surveyed by Briefing.com. The pace recorded for September marked a
slowdown from the rate of 5.06 million units posted for the prior month.
Leading Indicators increased
by 0.2%, which narrowly missed the 0.3% increase that had been broadly
expected.
There was plenty of headline
risk today for commodities, as uncertainty about what exactly will happen next
in the euro zone took center stage. In late-morning trade, the euro fell
sharply on reports that German Ruling Coalition sources said the EU Summit will
not reach a decision on EFSF leveraging. This headlined followed reports that
the EU Summit might be delayed. These headlines, and numerous other, caused
confusion as to what exactly was going to happen and when, and in turn
pressured the euro. Gold shed 2% to close at $1612.90 while silver ended down
2.9% at $30.25 per ounce. Both metals sold off sharply on the back of the rally
in the dollar/sell-off in the euro. Gold put in lows at $1604.70, while silver
broke below $30 to put in lows at $29.93. Both metals bounced modestly off
those lows heading into the close.
Natural gas, which ended up
1.2% at $3.63 per MMBtu, surged on the back of this morning's inventory data,
which showed a smaller-than-expected build. Futures jumped approximately 10
cents to session highs at $3.72, but pulled back from those highs to give a
majority of gains back. Crude oil finished lower by 0.9% at $85.30 per barrel.
Prices were pressured by the rally in dollar. They put in lows at $84.22, but
managed to rally off those lows to end with a 0.9% decline.
Advancing Sectors: Financials +1.8%, Materials +1.0%,
Energy +0.7%, Utilities +0.6%, Industrials +0.6%, Consumer Staples +0.5%,
Consumer Discretionary +0.4%, Health Care +0.1%
Declining Sectors: Telecom -0.1%, Tech -0.5%DJ30 +37.16 NASDAQ
-5.42 NQ100 -0.5% R2K +0.3% SP400 +0.4% SP500 +5.51 NASDAQ Adv/Vol/Dec
1193/2.04 bln/1288 NYSE Adv/Vol/Dec 1806/958 mln/1174