YAHOO [BRIEFING.COM]: Strength
in the early going had the stock market up 1% to trade near its five-month
high, but the mix of a stronger dollar, technical resistance, and uncertainty
ahead of this week's major events left stocks to slide and nearly finish with a
loss.
Trade ended on a flat note
last week, but buyers were brought back into the mix by data. Manufacturing
data out of China was impressive as the country's PMI improved to a six-month
high of 54.7. That was complemented by domestic data that showed an October ISM
Manufacturing Index of 56.9, which marked also marked a six-month high and
exceeded the 54.0 that had been widely expected.
U.S. construction spending for
September was also strong. It increased 0.5% when a 0.7% decline had been
expected to follow a downwardly revised 0.2% decline in the prior month.
Income and spending data was
rather disappointing, but participants shrugged it off anyway. September
personal income slipped 0.1% and spending increased a tepid 0.2% -- the
consensus had called for a 0.2% increase in income and a 0.4% increase in
spending. Core personal consumption expenditures for September were flat, as
expected, though.
The collective body of data
helped drive the S&P 500 to within less than one point of its best level
since May, but the move was unable to push through resistance in that zone.
At the same time stocks ran
into resistance they had to grapple with a bounce by the greenback, which was
also spurred higher by today's data since it could help make the case for
smaller steps toward further quantitative easing.
It is widely expected that the
FOMC will announce some sort of plan to augment monetary policy on Wednesday,
but the size and scope of the plan remains a mystery. Participants are also
brooding over the implications of midterm elections and the latest monthly
payrolls report on Friday.
Uncertainty about what will
unfold this week also kept many investors on the sidelines. In turn, trading
volume on the NYSE did not even break 1 billion shares.
Those that did trade left to
surrender all of their gains and then some as the stock market actually fell to
a modest loss in late trade. Though it recovered, the stock market's fractional
gain paled in comparison to what it had sported in the early going.
Energy stocks had been early
leaders with a 1.5% gain at their session high, but they settled just 0.3% for
the better. Baker Hughes (BHI 48.37, +1.95) was one of the
best performers in the group, thanks to an upside earnings surprise.
Though defensive oriented,
utilities underperformed by a wide margin. The sector's 0.9% slide was also its
worst loss in more than a month.
Dec natural gas shed 4.9%
today to settle at $3.84 per MMBtu. It was quite an interesting session for
natural gas futures, which traded to its best levels, at $4.187, before falling
over 9% throughout the day to its lowest levels at $3.825. The dramatic sell
off ended a three session rally for natural gas prices. Dec crude oil finished
higher by 2% to $82.95 per barrel. It spiked to its highs of the session, at
$83.86, shortly after the open of pit trade and spent the remainder of the day
chopping around just shy of those highs.
Dec gold finished lower by
0.6% to $1350.60 per ounce, while Dec silver closed off 0.1% to $24.55 per
ounce. Both metals were pressured lower throughout the day as the dollar moved
higher. In overnight trade, Dec silver futures traded to a fresh 30-year high
at $25.05 per ounce.
Advancing Sectors: Tech (+0.4%), Telecom (+0.4%), Energy
(+0.3%), Health Care (+0.2%), Industrials (+0.1%)
Declining Sectors: Utilities (-0.9%), Consumer Staples (-0.1%)
Unchanged: Consumer Discretionary, Materials, FinancialsDJ30
+6.13 NASDAQ -2.57 NQ100 +0.2% R2K -0.7% SP400 -0.2% SP500 +1.12 NASDAQ
Adv/Vol/Dec 971/1.92 bln/1684 NYSE Adv/Vol/Dec 1556/958 mln/1405