YAHOO[BRIEFING.COM]:
Market-moving news was lacking this session. In turn, stocks traded with little
direction and finished with mixed results.
All three major indices fell to losses in excess of 1% in the early
going. Only the Nasdaq was
able to finish with a gain, thanks to help from large-cap tech stocks. Microsoft (MSFT 17.83, +0.73) was a primary leader
in its space. It staged its largest single-session advance in more than one
week, enabling it to reclaim losses in the prior two sessions.
Large-cap industrial stocks sent the the
Dow to new lows for 2009. The Dow is up 6.5% from its bear market low, though. General Electric (GE 11.62, -0.51) was a primary laggard
in the Dow and the industrial sector (-2.5%), which was the worst performing
sector in the S&P 500. Shares of GE actually registered a 13-year low amid
ongoing concerns regarding the health of the company's capital arm. GE
remains one of the only companies to boast a
AAA credit rating, though.
Financial stocks, which have led the market in recent
weeks, managed to finish a volatile session with a 0.2% gain. Financials
were down as much as 3.5%.
Investors continue awaiting further details regarding a
government-led plan to help restore the nation's financial system. Though
there is doubt that any such plan will spur an immediate recovery, investors
are anxious to make progress. According to The Wall Street Journal, Treasury
Secretary Geithner indicated he will lay out plans
for the financial crisis in his speech next week.
With the health of the financial system and the broader economy
still uncertain, companies continue to issue warnings and make cuts where
necessary. Macy's (M
8.59, -0.36) projects lower earnings for fiscal 2009 and is cutting dividend to
$0.05 per share from $0.1325 per share. Macy's also plans to eliminate some
7,000 jobs. Shares of M dragged retailers 0.3% lower this session.
Earnings news was light this morning. Humana (HUM 40.13, +2.20) was one of the few
widely-held companies to report; it announced lower fourth quarter earnings,
strong revenue growth, and reaffirmed its full-year outlook. Humana's report
was largely in-line with expectations.
There was some economic data released this morning, but it came
with little surprise. Hard pressed by ongoing headwinds, personal spending in
December was down 1%, while personal income decreased 0.2%. The personal
spending data was largely reflected already in last week's advance fourth
quarter GDP report.
Meanwhile, January ISM Manufacturing came in a better-than-expected
35.6. The consensus called for a reading of just 32.5. Still, the data reflect
continued contraction in manufacturing.
Construction spending in December fell 1.4%, which is a bit steeper
than the 1.2% decline that was widely expected. The drop in December indicates
an accelerated decline from the 1.2% decline registered in the prior month.
DJ30 -64.11 NASDAQ +18.01 SP500 -0.45 NASDAQ Dec/Adv/Vol
1248/1451/2.02 bln NYSE Dec/Adv/Vol
1656/1378/1.33 bln