YAHOO [BRIEFING.COM]: Continued
lack of leadership caused stocks to struggle in the face of resistance, which
ultimately gave way to a technical breakdown that resulted in steep losses for
the major averages.
Sellers hit stocks at the
open. The major averages fought back some, but their efforts lacked leadership.
That hampered the broad market and kept it from poking into positive territory.
Most notably, though, a barrage of selling was brought about by the inability
of the S&P 500 to push back above a rising trendline that formed the bottom
of a triangle pattern and a simultaneous pullback by the euro.
The slide stabilized once the
S&P 500 found the 1210 zone, setting a near one-month low, but stocks never
really rebounded from there. The euro also drifted into the close, resulting in
only a fractional gain for the day. It is on pace for a 2% weekly loss.
Participation picked up in
response to the market's volatility. In recent session's share volume has been
anemic, but today it approached 1 billion on the Big Board.
Market movement distracted
participants from a dose of generally pleasing data, which featured the latest
weekly initial jobless claims count. Initial jobless claims for the week ended
November 12 totaled 388,000. Not only is that less than the 398,000 initial
claims that had been broadly expected, it marked the lowest initial claims
level since April.
Housing starts in October hit
an annualized rate of 628,000, which is little changed from the downwardly
revised rate of 630,000 units in the prior month, but greater than the pace of
604,000 that had been generally expected. Building permits set an annualized
pace of 653,000 to exceed the rate of 603,000 that had been anticipated.
Building permits in the prior month had trended at an annualized pace of
589,000.
The Philadelphia Fed Survey
for November slipped to 3.6 from 8.7 in the prior month. Many had expected to
ease to just 7.5.
Gold and silver futures sold
off sharply today. Gold ended lower by 3% at $1720.20 per ounce, while silver
shed 7% to finish at $31.50 per ounce. Both metals cratered as market
participants covered positions in the precious metals to cover losses in other
asset classes. Gold futures put in lows at $1711, their lowest levels since Nov
1. Silver traded as low as $31.04, its lowest levels since Oct 21… The weakness
in equities pressured crude oil futures, which shed % to settle at $ per
barrel. Futures gave back all of yesterday’s gains and finished back below the
$99 level. Natural gas surged on the heels of this morning’s inventory data,
which posted a smaller-than-expected build. Futures traded as high as $3.48
before pulling back to the flat line in late-morning trade. Natural gas did
manage to bounce off the unchanged line to recoup some gains, but ended well
below session highs. On the day natural gas gained 1.9% to finish at $3.41.
Advancing Sectors: (None)
Declining Sectors: Telecom -0.5%, Consumer Staples -0.5%,
Utilities -0.6%, Health Care -1.2%, Consumer Discretionary -1.7%, Industrials
-1.8%, Financials -2.1%, Energy -2.1%, Tech -2.2%, Materials -2.9%DJ30 -134.86
NASDAQ -51.62 NQ100 -2.3% R2K -1.5% SP400 -1.9% SP500 -20.78 NASDAQ Adv/Vol/Dec
710/2.21 bln/1787 NYSE Adv/Vol/Dec 577/983 mln/2445