YAHOO [BRIEFING.COM]: Stocks attempted to return to positive
territory after a mid-morning reversal took the major equity averages into the
red, but resistance at the neutral line invited sellers to redouble their
efforts and drop stocks for marked losses.
The Dow, S&P 500, and Nasdaq
each traded up to new multi-year highs in the early going, but the move was
short lived. Traders turned on stocks when prepared remarks for Fed Chairman
Bernanke's semiannual FOMC report to the House Financial Services Committee
began to circulate. His comments contained no surprises, but likely
disappointed some because they also failed to offer reassurance that the Fed
remains committed to an accommodative monetary policy, especially after fourth
quarter GDP data was revised upward.
Fourth quarter GDP grew at a clip of 3.0%, which is greater than
the 2.8% that had been reported in the advance reading. No revision had been
expected.
A stronger economic picture was painted by a
Later in the day the Fed's Beige Book reported that overall
economic activity continued to increase at a modest to moderate pace in January
and early February.
Although the macro picture continues to improve, many market
participants are questioning if that is priced into the stock market now that
the S&P 500 has climbed about 10% year to date and sits at levels not seen
since 2008. The interest in taking some risk off of the table likely played a
part in the stock market's intraday pullback and then its inability to return
to higher ground.
Financials offered leadership in the early going. The sector ran up
to a gain of about 1% before encountering any headwinds. It settled the session
with a 0.5% loss.
Materials stocks were among the worst performers. The sector
slumped 1.7% as many metals and mining issues took a hit in conjunction with a
slump in precious metals prices. Silver settled with a 7.0% loss at $34.58 per
ounce while gold prices closed at $1710 per ounce for a 4.4% loss after both
had put on impressive performances in the prior session.
Oil managed to score a gain after two days of selling, though.
Crude oil futures contract prices climbed 0.5% to close pit trade $107.09 per
barrel even after weekly inventory data showed a bigger-than-expected build of
more than 4 million barrels.
The Dollar Index set a two-month low yesterday, but it rallied to a
0.7% gain today. Most of that move is owed to weakness in the euro, which
tumbled about 1.1% to about $1.33. Earlier today it was learned that the
European Central Bank made more than $700 billion available to the continent's
banks in the form of three-year loans.
Oil prices oscillated throughout the day, but were able to muster a
0.5% gain by closing pit trade at $107.09 per barrel. Weekly inventory data
showed a bigger-than-expected build of more than 4 million barrels.
Natural gas put together an impressive performance after slumping
in the prior session. The energy component closed at $2.61 per MMBtu for a 3.6%.
Precious metals prices were dropped for sharp losses. Specifically,
silver settled with a 7.0% loss at $34.58 per ounce after it pushed up to a
multi-month closing high in the prior session. Gold prices closed at $1710 per
ounce for a 4.4% loss.
Advancing Sectors:
Consumer Staples +0.3%
Declining Sectors:
Telecom -0.1%, Utilities -0.1%, Consumer Discretionary -0.1%, Financials -0.5%,
Health Care -0.5%, Industrials -0.5%, Tech -0.5%, Energy -1.0%, Materials
-1.7%DJ30 -53.05 NASDAQ -19.87 NQ100 -0.4% R2K -1.6% SP400 -0.6% SP500 -6.50
NASDAQ Adv/Vol/Dec 656/2.11 bln/1911 NYSE Adv/Vol/Dec 1029/1.11 bln/1979