YAHOO [BRIEFING.COM]: A
gradual afternoon ascent helped the broad market slash its loss, but pronounced
weakness among tech issues undermined the rebound effort. That left the major
equity averages to settle with varied results.
Stocks were dragged down in
the early going when participants responded to a reversal by Europe's major
bourses, which failed to sustain gains that followed a bank borrowing report
from the European Central Bank. Although the report suggested that the needs of
banks have been more than adequately met, it also indicated that more firms
were in need of funding. The euro was never able to fully overcome selling
pressure; it was down 0.5% against the greenback by session's end.
Oracle (ORCL 25.77, -3.40) added to the
pessimistic tone of early trade. The software outfit disappointed investors
with weaker-than-expected revenue and earnings. The company's quarterly report
was further tainted by a tepid outlook. The stock was able to resist efforts to
take it to a new 52-week low and even got some relief in late afternoon trade,
but the shares still suffered their worst single-session slide in years.
Many other tech stocks were
weakened by Oracle's report, such that the overall sector sank to a 2.0% loss.
Tech stocks, which make up the largest sector by market cap, weighed heavily on
broad market trade. In fact, tech was the only sector in 10 that failed to
finish in positive territory, but the S&P 500 still only managed to muster
a narrow gain. Meanwhile, the tech-rich Nasdaq was never able to catch up with
its counterparts.
Leadership was never clear,
but energy stocks helped provide a broad market lift in afternoon trade.
Collectively they scored a 1.2% gain with help from higher oil prices, which
closed at $98.70 per barrel for a 1.5% gain following an unexpectedly large
draw from weekly inventories.
While the broad market was
mired in the red for most of the session utilities ascended 1.5%, notching a
new 52-week high along the way. Even when excluding dividends utilities have been
one of the best performing sectors of the year; they're up more than 13% year
to date. Constellation Energy (CEG 39.45, +0.95) came into
closer focus when the stock dove in response to headlines that its merger with Exelon
(EXC 43.24, +0.91) could be blocked, but that rumor was later
dispelled.
A better-than-expected bottom
line and a solid future orders increase gave shares of Nike (NKE
96.23, +2.60) strong gains, but not enough to send the stock back to the record
high that it had set earlier this month. The rest of the discretionary space
mustered only a modest gain.
Data today was limited to
November existing home sales numbers, which improved to an annualized rate of
4.42 million units from 4.25 million units, but that was still short of the
5.03 million unit rate that had been expected, on average, among economists
polled by Briefing.com. Authorities also reported that sales from 2007 through
2010 were revised downward by 14%.
Crude oil settled higher by
1.5% at $98.70 per barrel. Futures spiked sharply on the back of this morning's
inventory data, which showed a substantially larger-than-expected drawdown.
Futures put in highs at $99.25, but quickly pulled back from those highs. They
spent the remainder of trade slowly pushing back toward those levels. Natural
gas finished up 0.9% at $3.16 per MMBtu. Futures spiked in late-morning trade,
eventually putting in highs at $3.19. Prices fell from those highs however to
close just above flat.
It was a quiet session for the
precious metals. Gold futures ended lower by 0.1% at $1613.40 per ounce, while
silver futures closed down 0.8% at $29.27 per ounce.
Advancing Sectors: Utilities +1.5%, Energy +1.2%, Consumer
Staples +1.1%, Health Care +0.7%, Financials +0.6%, Telecom +0.4%, Materials
+0.3%, Consumer Discretionary +0.3%, Industrials +0.2%
Declining Sectors: Tech -2.0%DJ30 +4.16 NASDAQ -25.76 NQ100
-1.4% R2K +0.2% SP400 +0.2% SP500 +2.42 NASDAQ Adv/Vol/Dec 1255/1.85 bln/1298
NYSE Adv/Vol/Dec 1852/820 mln/1169