YAHOO [BRIEFING.COM]: Stocks
faltered in the final hour of trade to finish the day with a fractional loss.
The slide came in the face of leadership from financials and some upbeat retail
sales data.
Financials spent the entire
session out in front of the broader market. At its best level the sector was up
1.6% as banks caught a bid and consumer finance plays attracted support
following the release of their latest monthly card metrics. Financials failed
to hold their gains, though, as sellers reclaimed control of broader market
action in late trade.
Support from the financial
sector had helped lift the broader market as much as 0.7% in the face of a
stronger dollar, but the dollar eventually broke out of its trading range so
that it was up 0.8% at the close of trade. The dollar's move and the S&P
500's inability to extend its intraday high beyond the 1207 line in afternoon
action left stocks susceptible to the efforts of sellers. The major averages
finished mixed near session lows as a result.
Deal making during the weekend
helped drive some early buying. Isilon Systems (ISLN 33.77,
+7.48) will be acquired for $33.85 per share by EMC Corp (EMC
21.45, -0.27), while Mediacom Communications (MCCC 8.37,
+1.51) will be acquired for $8.75 per share by Rocco Commisso and an entity
created by Commisso. The biggest deal was Caterpillar's (CAT
81.82, +0.78) purchase of Bucyrus (BUCY 89.80, +20.18) for $92
per share. Each acquisition came at a premium of close to 30% over where the
takeover targets settled trade last week.
Outside of the merger and
acquisition activity, Lowe's (LOW 21.46, -0.23) reported an
upside earnings surprise. Its shares initially tested a one-month high, but
they rolled over to finish with a sizable loss.
The rest of the retail space
was not much better off as it collectively fell 1.0%. Not even news that retail
sales for October increased at a stronger-than-expected clip of 1.2% could
help. Sales less autos saw a more mild and in-line increase of 0.4%. The
consensus among economists polled by Briefing.com had called for a 0.7%
increase in overall sales and a 0.4% increase in sales less autos.
The Empire Manufacturing
Survey was more disappointing. Following a reading of 15.7 last month, it was
expected to come in at 11.7 for November. Instead, it came in at -11.1. Some
disappointment was tempered by the fact that the report is not underpinned by
any actual data, but is survey on sentiment among regional manufacturers.
Treasuries fell under a stiff
bout of pressure that drove the yield on the benchmark 10-year Note up to 2.95%
at the close of trade. That makes for the Note's highest yield since August.
Soft commodities and grains
led the way higher for the CRB Commodities Index. Both groups posted +1.9%
gains. March corn rallied for 3.8% to settle at $5.69 per bushel. March sugar
rebounded, modestly, from last week's sizeable sell off as it gained 3.1% to
finish at $0.2703 per pound.
Dec gold ended marginally
higher at $1368.70 per ounce, while Dec silver also closed just above the flat
line at $25.95 per ounce. Neither precious metal had a very eventful session.
Dec crude oil closed lower by
0.02% to $84.85 per barrel, in what was a very mundane start to the week. Dec
natural gas gained 1.3% to $3.84 per MMBtu. It bounced of its intraday lows, at
$3.71, to retrace its morning sell off and finish in positive territory, end
its recent 3-session sell off.
Advancing Sectors: Financials (+0.4%), Telecom (+0.3%),
Utilities (+0.3%), Industrials (+0.2%)
Declining Sectors: Materials (-0.9%), Energy (-0.5%), Tech
(-0.4%), Consumer Discretionary (-0.3%), Health Care (-0.2%), Consumer Staples
(-0.1%)DJ30 +9.39 NASDAQ -4.39 NQ100 -0.3% R2K +0.1% SP400 +0.2% SP500 -1.46
NASDAQ Adv/Vol/Dec 1420/1.86 bln/1195 NYSE Adv/Vol/Dec 1386/877 mln/1577