YAHOO [BRIEFING.COM]: Stocks closed near session lows in their worst single-session percentage loss in more than two weeks as sellers were stirred to action by a disappointing consumer confidence reading and a stronger dollar. 

A relatively weak start quickly turned to something more ugly with the midmorning release of the February Consumer Confidence Index, which came in below expectations at a 10-month low of 46.0. Broad-based pressure immediately followed to take each of the three major indices back below its 50-day moving average after the technical line acted as a supportive floor in the previous session.

Losses among stocks worsened as the greenback gained ground against competing currencies. The dollar settled the session 0.5% higher after it extended a moderate gain from the early going.

The confluence of broad market weakness and a stronger dollar dragged down the materials sector to a 1.7%. Steel was one of the worst performing groups in the sector after it had been a leader during recent sessions. Steel stocks shed a collective 4.0%.

In addition to weakness among basic materials, commodities had a poor session. As such, the CRB Commodity Index dropped 1.6%. The fall takes the CRB back below its 50-day moving average after it had hit a one-month high in the previous session.

Financials were officially the worst performing sector of the session, though they had actually traded with relative strength in the early going. They finished with a 1.8% loss, which undid the sector's outsized gains from Monday.

While the broader market was mired in weakness, retailers were able to limit losses. Retailers in the S&P 500 finished with a collective loss of 0.5%, but that was mostly owed to strength in Home Depot (HD 30.75, +0.43), which actually hit a fresh 52-week high after it announced better-than-expected earnings, issued an upside guidance, and increased its quarterly dividend.

Macy's (M 18.67, +0.20) was also able to finish higher after it reported better-than-expected results of its own. The company's earnings outlook was in-line with what Wall Street has surmised.

Not every retailer was able to fare so well, though. Both Target (TGT 50.06, -0.58) and Sears Holdings (SHLD 93.80, -1.86) exceeded earnings expectations, but failed to book gains.

Treasuries had a strong session, which saw the benchmark 10-year Note climb nearly one full point. That trimmed its yield nearly 10 basis points to 3.69%. Treasuries were partly helped by results from a $44 billion auction of 2-year Notes that attracted a yield of nearly 0.90% with an above-average bid-to-cover of 3.3 and a strong indirect bid of 53.6%.

Advancing Sectors: (None)
Declining Sectors: Financial (-1.8%), Materials (-1.7%), Tech (-1.4%), Energy (-1.5%), Industrials (-1.2%), Health Care (-1.1%), Telecom (-1.0%), Utilities (-0.8%), Consumer Discretionary (-0.6%), Consumer Staples (-0.6%)DJ30 -100.97 NASDAQ -28.59 NQ100 -1.3% R2K -1.1% SP400 -1.3% SP500 -13.41 NASDAQ Adv/Vol/Dec 875/2.27 bln/1759 NYSE Adv/Vol/Dec 939/1.08 bln/2113