YAHOO [BRIEFING.COM]:The stock market ended the week with a modest
gain, but it still booked a weekly loss of 0.5%, which marks the first weekly
decline for the S&P 500 in more than a month, and only the second in 12
weeks.
That hot streak took the S&P 500 to its highest level since
mid-2008 earlier this week, but many opted to take profits in response to
renewed concerns about global economic conditions. Questions about the health
of
PMI data from
Cyclical stocks encountered some concerted selling amid macro
concerns. During the course of only three days the Energy sector fell more than
4%, although it advanced 1.0% on Friday. It shed 3.0% for the week. The action
in the Energy sector was closely correlated with crude oil trade.
By settling at $106.86 per barrel oil prices gained 1.4% on Friday,
but fell 0.2% for the week. Along the way the energy component probed a monthly
low near $104.50 per barrel. Action early in the week took into account plans
for
Financial plays and bank stocks provided leadership at the start of
this week, but the sector later wavered. On Friday the Financial sector
advanced 0.9% so that it was flat for the week. Up 21% year to date, Financials
are still the top performers into the first three months of 2012.
Tech is still close behind in terms of its first quarter
performance; it is up 20% year to date. The largest sector by market weight has
been led by the largest stock by market cap – Apple (AAPL 596.05, -3.29). Narrowly off of a
record high north of $600, shares of AAPL are up nearly 50% this year. The
company made headlines at the start of the week with news that it will pay a
quarterly dividend of $2.65 per share starting in its fiscal fourth quarter of
2012, and also begin a $10 billion share repurchase program in fiscal 2013.
Apple’s cash hoard currently stands at close to $100 billion.
Other notable corporate announcements this week include
better-than-expected earnings and upside guidance from Accenture (ACN 64.88, +1.36). Nike (NKE 107.42, -3.57) announced an upside
earnings surprise of its own, along with a double-digit annual percentage
increase in futures orders. FedEx
(FDX 92.38, -0.12), Discover Financial
(DFS 33.83, +1.34), and Oracle
(ORCL 28.55, -0.08) all announced upside earnings surprises this week. Tiffany & Co. (TIF 71.45, -1.03) reported earnings that
came short of the consensus estimate, but the company made up for that failure
by offering strong guidance.
Domestic economic data released this week was limited in scope.
Indicative of an improving jobs picture, the latest weekly initial
jobless claims tally fell to a multi-year low of 348,000, which is less than
the 355,000 initial jobless claims that had been expected, on average, among
economists polled by Briefing.com.
Existing home sales hit an annualized pace of 4.59 million units in
February, down from a rate of 4.63 million in the prior month. The slower pace
came as little surprise since the consensus among economists polled by Briefing.com
had called for a clip of 4.60 million units.
New home sales declined in February by 1.6% to an annualized rate
of 313,000 units, which is less than the pace 323,000 units that had been
broadly expected. Inventory levels remained at 150,000 for the second straight
month, but months-of-supply increased to 5.8 from 5.7.
Housing starts hit an annualized rate of 698,000 units in February.
That's down from the prior month's upwardly revised rate of 706,000 units.
Economists had generally expected starts to remain near that rate. However,
building permits improved in February to a rate of 717,000 from 682,000 in the
prior month, besting the rate of 695,000 that had been generally anticipated.
Last week the dollar traded up to a near one-month high, but selling
this week caused it to suffer a 0.6% weekly loss against a basket of major
foreign currencies and settle narrowly beneath its 50-day moving average. The
euro advanced 0.5% on Friday to $1.327. That helped feed a weekly gain of 0.7%
against the greenback. The yen had perhaps the strongest finish to the week; it
rallied roughly 1% on Thursday and again on Friday to reach its best level of
the week. As of the close of trade on Friday the currency traded at 82.42 yen
per dollar.
Commodities closed higher today after a volatile week, but the CRB
Index still suffered a 1% weekly loss.
Crude oil rallied sharply in its morning session, briefly breaking
above $108.00 per barrel following a report that Iranian oil exports would drop
by 300,000 barrels per day in March. However, the energy component quickly moved
back down to chop around the $107 level, and ended with a 1.4% gain at $106.86
per barrel.
The advance came in contrast to crude’s activity in previous
sessions. Just yesterday it tested a monthly low near $104.50 per barrel before
booking a loss that left it down about 4% in only three days. Playing
part in crude’s weakness earlier this week were concerns about the implications
for global economic growth after
Natural gas hit a session high of $2.33 per MMBtu during pit trade,
but lost momentum as the session progressed. That caused it to surrender its
gains and close flat at $2.27 per MMBtu. Nat gas lost a total of 2.6%
over the past week.
Moves in the metals space this week were mostly reflective of
swings in the dollar. However, today’s pullback by the greenback provided
gold with a boost to reclaim its weekly loss. The precious metal settled
at $1662.50 per ounce, a 0.4% gain over last Friday’s closing price, despite
setting a weekly low of $1627.50 per once only yesterday. Silver also trended
higher today. The metal gained $0.86 in today’s pit trading to settle at $32.26
per ounce, but was down 1.1% week over week.
Treasuries experienced some whippy action this week. Early on the
yield of the benchmark 10-year Note had flirted with 2.40% for a multi-month
high, but by Friday it was down as low as 2.21%, which stands as its worst
level in more than a week, before easing up to about 2.24% by the end of the
trading day. DJ30 +34.59 NASDAQ +4.60 NQ100 -0.1% R2K +1.0% SP400 +0.6% SP500
+4.33 NASDAQ Adv/Vol/Dec 1669/1.42 bln/829 NYSE Adv/Vol/Dec 2123/741 mln/863