YAHOO [BRIEFING.COM]: A loss
of excitement for Ireland's financial aid request left the stock market to drop
more than 1%, but technical support provided a base for a rebound that helped
the broader market slash its loss and the Nasdaq Composite stage a nice gain.
Officials from Ireland
announced during the weekend a request for financial aid from the European
Union as part of an effort to sturdy its tenuous financial state. Nothing
official has been put forth, but most estimates point toward a plan that will
feature something on the order of 100 billion euros.
Global participants initially
reacted to the announcement by boosting the euro and giving European bourses a
strong start to the week, but attention was quickly diverted to the persisting
problems of Portugal and Spain. That left Europe's equities to roll over and
the euro to drop against the dollar.
At its overnight low the
dollar was down 0.7%, but it swung to a gain of about 0.4% at its session high.
It gave up part of that gain so that at the close of trade it was only up 0.2%
against a basket of competing currencies. The dollar's rebound from its
overnight low and the recognition that ineffective fiscal practices continue to
trouble countries in the EU periphery caused stocks to come under a broad wave
of selling. The effort took both the Dow and the S&P 500 down more than 1%.
Just as was the case in
Europe, financials were the weakest performers and undermined broader market
action. At its low the financial sector was down more than 2%, but it finished
with a 1.4% loss. Goldman Sachs (GS 161.05, -5.62) was one of
the hardest hit, no thanks to news of trading probes at a couple of hedge
funds.
The financial sector was
helped by a broader market rebound that began after support for the S&P 500
held in the 1184 to 1186 area.
Tech, the largest sector in
the S&P 500 by market weight, provided a helping hand in the move. The
sector showed leadership as it worked its way to a 0.6% gain. Most of that move
was owed to strength in semiconductor stocks like SanDisk (SNDK
42.57, +2.59), which set a three-month high after an analyst upgrade, and Broadcom
(BRCM 44.17, +0.95), which hit a four-year high after it announced a
definitive agreement to acquire Gigle Networks for approximately $75 million.
The afternoon climb helped
volatility cool, such that the Volatility Index was up just 3% at the close
after it was up more than 10% during the day.
Trading volume was lackluster
on the NYSE. Though some key economic releases in coming days will likely
attract some participation, overall share volume in coming days will likely
lack due to the holiday shortened week -- U.S. markets will be closed Thursday
in observance of Thanksgiving and Friday will be a half day.
Treasuries saw some seesaw
action as well today. The benchmark 10-year Note ran into some pressure after
results from an auction of 2-year Notes showed a bid-to-cover ratio of 3.70,
dollar demand of $129.5 billion, and an indirect bidder participation rate of
38.3%. For comparison, the average for the past three auctions holds a
bid-to-cover ratio of 3.44, dollar demand of $123.9 billion, and indirect
bidder participation of 36.1%.
It was a mixed session for
commodities, as energy (+0.2%), grains (+0.2%) and precious metals (+1.3%) all
ended higher and soft commodities (-0.1%), livestock (-0.2%) and industrials
(-0.9%) all finished lower.
Dec gold futures closed higher
by 0.7% to $1357.80 per ounce, while Dec silver rallied for 1.9% to end at
$27.46 per ounce. Both metals bounced off of their session lows, set in
mid-morning trade, to recoup some gains from overnight trade.
Dec natural gas ended higher
by +2.6% to $4.28 per MMBtu. Forecasts for colder-than- average temps pushed
natural gas prices to their best levels since mid-Aug. Dec crude oil finished
lower by 0.3% to $81.74 per barrel.
Advancing Sectors: Tech (+0.6%), Consumer Discretionary
(0.3%), Utilities (+0.2%), Materials (+0.2%)
Declining Sectors: Financials (-1.4%), Energy (-0.4%), Telecom
(-0.3%), Industrials (-0.3%), Consumer Staples (-0.1%)
Unchanged: Health CareDJ30 -24.82 NASDAQ +13.90 NQ100 +0.7%
R2K +0.4% SP400 +0.7% SP500 -1.88 NASDAQ Adv/Vol/Dec 1336/1.85 bln/1303 NYSE
Adv/Vol/Dec 1520/917 mln/1453