YAHOO [BRIEFING.COM]: Sellers
returned to the fold on Monday to hand stocks sizable losses. Financials led
the slide.
Financials fell to a 2.0% loss
and were weak since the open of trade, which was relatively rocky. Pressure
against the sector was largely rooted in an effort by market participants to
pare their positions in bank stocks, given the group's sensitivity to the
threats of Europe. Sentiment in Europe seemed to sour during the weekend,
resulting in losses for the region's major bourses and a sharply lower day for
the euro. Pressure came even though embattled Italy approved new austerity
measures and held another successful debt offering.
Tech stocks fought to keep
sellers at bay for the first couple of hours, but ultimately succumbed to broad
market selling pressure to settle with a 0.6% loss. Even IBM
(IBM 187.35, -0.03) surrendered a gain after it had been bid higher on the back
of word from billionaire investor Warren Buffett that he has been acquiring
shares in the company for the past month.
The economic calendar was
entirely empty today and earnings were limited to only a handful of names. Lowe's
(LOW 23.50, +0.39) posted an upside earnings surprise and issued mixed
guidance, but in-line earnings from J.C. Penney (JCP 32.98,
-0.94) were overshadowed by a disappointing forecast.
With so few catalysts for
trade today, share volume on the NYSE totaled at paltry 700 million. Over the
past 50 days share volume has been closer to 1 billion, on average.
Precious metals were pressured
today by the persistent strength in the dollar. Gold futures ended lower by
0.5% at $1778.40 per ounce, while silver futures shed 1.9% at $34.02 per ounce.
Throughout the session gold managed to remain above its overnight lows at
$1774.20. Silver, on the other hand, traded to session lows at $33.95 heading
into the close of pit trade.
Natural gas futures settled
lower by 3.5% at $3.46 per MMBtu. Relatively mild weather across the country is
stoking concerns about growing supplies, and that caused futures to close lower
for the eighth time in ten sessions. Crude oil settled lower by 0.9% at $98.14
per barrel. Strength in the dollar pressured crude futures.
Advancing Sectors: (None)
Declining Sectors: Tech -0.6%, Consumer Staples -0.7%,
Consumer Discretionary -0.7%, Health Care -0.7%, Industrials -0.7%, Materials
-0.9%, Telecom -1.1%, Utilities -1.2%, Energy -1.2%, Financials -2.0%DJ30 -74.70
NASDAQ -21.53 NQ100 -0.6% R2K -1.6% SP400 -1.1% SP500 -12.07 NASDAQ Adv/Vol/Dec
638/1.39 bln/1921 NYSE Adv/Vol/Dec 720/704 mln/2301