YAHOO [BRIEFING.COM]: The
major equity averages scored varied gains even though the highly anticipated
European Union Summit concluded without providing market participants with a
framework for shoring up financial conditions in the continent.
Investors looking for a plan
regarding the EU's approach to improving financial conditions will have to wait
a few more weeks. Until then, headline risk related to financial conditions in
Europe will likely persist, given that little insight was given into the
discussions made by members of the EU during a summit today. Despite that,
stocks were able to attract buying interest and rebound after rolling over in
morning trade.
Even though there is still
concern about the exposure of banks to Europe, financials provided leadership
this session. In doing so, the sector helped stocks recover from a morning
retreat that took the major averages down sharply from their opening levels.
Financials collectively scored a 2% gain.
Energy stocks were even
stronger today. The sector advanced 2.3%, even though oil prices fell more than
3% to conclude pit trade at $90.20 per barrel. The selling was largely driven
by bearish weekly inventory data and a degree of profit taking from the energy
component's recent climb to a two-month high.
Consumer discretionary stocks
underperformed all session. They settled with a collective loss of 0.4%, making
them the only major sector that failed to finish in positive territory. Amazon.com
(AMZN 198.40, -28.75) was an especially heavy drag on the sector after
its earnings came short of the consensus forecast. Weakness in AMZN also
hampered the Nasdaq all session, leaving it to underperform its counterparts.
The Dow maintained a healthy
lead over the other averages for the entire session. Boeing
(BA 66.56, +2.84) was one of its best performers, thanks to a
better-than-expected earnings report.
Data today featured a 0.8%
decline in total durable goods orders for September and a 1.7% jump in orders
less transportation. The consensus call was for a 1.0% decline in total orders
and a 0.4% increase in orders less transportation.
The rally in precious metals
continued into its fourth consecutive session. Gold futures gained 1.3% to end
at $1723.60 per ounce, while silver futures closed higher by 1.9% to end at
$33.65 per ounce. The flight to safety is back on for the precious metals
(evidenced by today’s strength in the dollar) as uncertainty reigns over what
is next to come in the euro zone. Both metals traded to fresh ~1 month highs
today as well.
Bearish inventory data,
concerns about the euro zone, and profit taking from its recent rally to back
above $90 all pressured crude oil prices, which ended lower by3.2 % at $90.20
per barrel. Natural gas futures ended lower by 7 cents at $3.59 per MMBtu.
Advancing Sectors: Energy +2.2%, Financials +2.0%,
Materials +1.9%, Health Care +1.4%, Telecom +1.1%, Consumer Staples +0.9%,
Industrials +0.7%, Utilities +0.7%, Tech +0.4%
Declining Sectors: Consumer Discretionary -0.4%, DJ30 +162.42
NASDAQ +12.25 NQ100 -0.1% R2K +1.9% SP400 +1.2% SP500 +12.95 NASDAQ Adv/Vol/Dec
1853/2.12 bln/690 NYSE Adv/Vol/Dec 2432/1.11 bln/588