YAHOO [BRIEFING.COM]: Stocks
managed to slash losses, but still settled in the red following another gain by
the greenback and disappointing guidance from Dow component Cisco.
The S&P 500 was down about
1% at its session low and the Nasdaq was off by close to 2% at its worst level
of the session. The selloff came as participants responded negatively to
another gain by the greenback -- 0.6% this session. The dollar has now advanced
in five straight sessions for a cumulative gain of about 3%, which makes for
its longest and strongest streak in months.
Support for the dollar has
come amid concerns about the debt of such fiscally challenged eurozone
countries as Ireland, Portugal, Spain, and Italy. Wider yield spreads on their
debt has made for a less than tacit indication of that concern.
Participants were also
inclined to sell after Cisco (CSCO 20.52, -3.97) dropped a
disappointing outlook on investors. The downside forecast completely
overshadowed the firm's better-than-expected earnings results and sent shares
of CSCO to their worst single-session percentage drop of the year. Such extreme
weakness imbued the rest of the tech sector, which logged a 1.8% loss.
Stocks gradually recovered
from their session lows so that broader market losses on the session were less
than half of what they had been at the depths of today's trade.
Momentum was lost late in the
day, though. Disney (DIS 35.93, -1.06) disrupted some of the
action by posting an earnings miss shortly before the close.
Despite the broader market's
failure to fully recover, resource-linked stocks staged some impressive gains.
More specifically, energy stocks swung to a 1.0% gain while materials settled
0.9% higher. The two sectors outperformed for virtually the entire session, but
the broader market never really rallied around the pair.
With stocks settling in the
red for the third time this week, they enter Friday with a weekly loss of close
to 1%, which would be its worst weekly loss in about three months.
There were no economic
releases today. The U.S. Treasury market was closed in observance of Veterans
Day.
Commodities were mixed today,
with precious metals rallying for 1.9% while soft commodities fell 3.2%. March
sugar futures plunged 9.6% to finish at 29.66 cents a pound following news that
India could produce a bigger-than-expected surplus.
Dec gold finished higher by
0.6% to $1403.30 per ounce, while Dec silver gained 3% to settle at $27.41 per
ounce. Both metals finished higher despite a stronger dollar.
Dec natural gas extended its
sell off to a second session after it shed 2.9% to end at $3.93 per MMBtu.
Forecasts for milder-than-usual temps weighed on prices. Dec crude oil finished
flat on the session at $87.81 per barrel.
Advancing Sectors: Energy (+1.0%), Materials (+0.9%),
Health Care (+0.2%)
Declining Sectors: Tech (-1.8%), Financials (-0.9%), Telecom
(-0.7%), Industrials (-0.6%), Consumer Discretionary (-0.1%)
Unchanged: Utilities, Consumer StaplesDJ30 -73.94 NASDAQ
-23.26 NQ100 -0.7% R2K -0.5% SP400 -0.2% SP500 -5.17 NASDAQ Adv/Vol/Dec
897/2.57 bln/1739 NYSE Adv/Vol/Dec 1041/951 mln/1903