YAHOO [BRIEFING.COM]: Sellers
crowded the market to hand stocks their worst loss in four weeks. The
broad-based push came despite better-than-expected earnings from bellwethers
Intel and JPMorgan.
Semiconductor giant Intel
(INTC 20.80, -0.68) announced after the previous session's close
better-than-expected earnings of $0.40 per share. It even went on and issued
solid revenue guidance for the current quarter. However, participants opted to
sell the news of the beat after they had watched the stock climb appreciably in
the sessions ahead of its report. The stock is still up roughly 2% since the
start of the year.
Meanwhile, banking giant JPMorgan
(JPM 43.68, -1.01) was dropped for a loss as participants showed
dissatisfaction in the company's need to remain cautious toward consumer credit
and persistent loss provisions. The reaction reflects the requirement of
participants for higher quality earnings and explicit signs that the economic
recovery is for real after watching stocks surge since March.
The latest batch of economic
data did little for participants. December's Consumer Price Index (CPI)
increased 0.1% month-over-month, which is a slightly softer increase than the
0.2% monthly increase that many economists had forecast, but still generally
in-line with expectations. Excluding food and energy, the December CPI
increased 0.1% month-over-month, as expected.
Industrial production in
December increased 0.6%, as expected. Capacity utilization for December came in
at 72.0%, which is on par with the 71.8% utilization rate that many had come to
expect.
The preliminary January
Consumer Sentiment Survey from University of Michigan came in at 72.8, which
was slightly below the expected reading of 74.0, and slightly changed from the
72.5 that was posted in the previous month.
Without any data to inspire
buyers to keep the stock market's recent uptrend intact, sellers were able to
wrest control. Their efforts were broad based, but weakness was particularly
noticeable among banks, which shared in JPMorgan's weakness and dropped 2.2%,
according to the KBW Bank Index. That loss made financials the worst performing
sector of the session -- it shed 2.0% in its worst percentage loss in one
month.
Every other major sector also
logged a loss; half of the sectors fell by at least 1%.
A stronger dollar, which was
helped by continued concern about the financial health of Greece, exacerbated
this session's weakness and helped the selling effort spread to commodities.
Weakness in the commodities complex dragged the CRB Commodity Index to a 1.1%
loss. The slide made for a weak finish to an already-feeble week that saw
commodities fall more than 3% since Monday.
Weakness among stocks and
commodities helped win support for Treasuries, such that gains in the benchmark
10-year Note trimmed its yield to a three-week low. The 10-year finished with a
gain of roughly 15 ticks and a yield of 3.67%.
The expiration of January
options drove trading volume on the NYSE above 1.4 billion shares to a near
one-month high. However, the expiration of those options distorts conviction in
this session's move.
U.S. markets will be
closed this coming Monday in observance of Martin Luther King Jr. Day.
However, participants will return from the long weekend to a bevy of earnings
releases as more than 100 companies are scheduled to report their latest
quarterly results next week. A complete calendar of those reports is available
at Briefing.com.
Advancing Sectors: (None)
Declining Sectors: Financials (-2.0%), Telecom (-1.4%), Tech
(-1.3%), Industrials (-1.2%), Materials (-1.1%), Consumer Discretionary
(-0.9%), Energy (-0.8%), Consumer Staples (-0.7%), Utilities (-0.6%), Health
Care (-0.4%)DJ30 -100.90 NASDAQ -28.75 SP500 -12.43 NASDAQ Adv/Vol/Dec 704/2.68
bln/1996 NYSE Adv/Vol/Dec 935/1.41 bln/2110