YAHOO[BRIEFING.COM]:
The major indices began the session with solid gains, helped by ongoing efforts
to bolster the financial system, but choppy trading and more negative headlines
eventually took their toll on stocks, sending them into the red.
Stocks climbed as much as 2% in the early going after participants
reacted positively to reports the
To address potential future challenges to the
The planning in
At its session high, the financial sector was up almost 7%, while
banks were up more than 13%, according to the KBW Banking Index. Those gains
were eventually pared, though.
FDIC reported that at the end of the fourth quarter its list of
troubled institutions grew to 252 from 171 at the end of the third quarter.
News that there is a larger number of institutions
challenged by dour economic conditions didn't necessarily tell investors anything
new. However, the report still accounts for one more negative headline.
Financials finished the session 2% higher. The KBW Banking Index
finished almost 5% higher. JPMorgan Chase (JPM
23.05, +1.32) provided leadership after it indicated first quarter results are
solidly profitable thus far, and the company's outlook is roughly in-line with
analysts' expectations.
Though the broader market has followed the lead of financial stocks
in recent weeks, financials were unable to induce buying in the broader market.
All three major indices gradually surrendered their early gains and finished
the session with a loss.
Health care stocks lagged for the entire session. The sector closed
with a 5.1% loss. Particular weakness was seen in managed care companies, which
dropped amid concern that health care reform will reduce Medicare spending.
Bleak economic data did little to support stock buying.
The latest data indicated January durable goods orders fell a
more-than-expected 5.2%. Excluding transportation, durable goods fell 2.5%,
which was also steeper than expected.
January new home sales fell more than expected to an annualized
rate of 309,000 units, which is a record low.
Jobless claims continue to rise beyond expectations. Initial claims
climbed 36,000 to 667,000 from the prior week. Continuing claims came in just
below 5.03 million, up from nearly 5.00 million in the prior reading.
Earnings news had little impact on trading. General Motors (GM 2.38, -0.17) missed expectations, as
did Safeway (SWY 18.37, -2.75). Fluor (FLR 34.90, +1.95) posted
better-than-expected results and issued upside guidance. Express Scripts (ESRX 52.79, -4.67) reported in-line
results. DJ30 -88.81 NASDAQ -33.96 NQ100 -2.9% R2K -2.1% SP400 -1.8% SP500
-12.07 NASDAQ Dec/Adv/Vol 1675/956/2.15 bln NYSE Dec/Adv/Vol
1674/1412/1.49 bln