YAHOO[BRIEFING.COM]: Stocks
finished the session with sizable losses after failing to sustain a midsession
rally. Broad-based weakness underscored the downturn, but health care stocks
attracted support amid fear of a swine flu pandemic.
The media's focus on the
implications of swine flu induced interest in pharmaceutical stocks (+0.6%) and
biotech stocks (+2.0%). That helped Bristol-Myers Squibb (BMY 20.54, +0.44) and Pfizer (PFE 13.49, +0.32) provide leadership to
the health care sector (+0.9%). The companies also benefited from interest
ahead of their quarterly announcements, which are scheduled for tomorrow
morning.
Despite leadership from big
pharma and biotech stocks, the S&P 500 underperformed the other headline
indices.
Meanwhile, General Motors (GM 2.04, +0.35) provided the Dow with
leadership after the struggling automaker announced plans to restructure its
operations in order to avoid the pitfalls of bankruptcy. GM finished the
session more than 20% higher, which is its best single-session advance by
percent in more than one month.
Fellow Dow component Verizon (VZ 30.54, -0.46) failed to give the blue
chip index a lift, even though it topped analysts' earnings expectations by
earning an adjusted $0.63 per share for the first quarter.
Financial stocks had a poor
showing Monday. The sector finished 3.2% lower as bank stocks slid. All 24
members of the KBW Banking Index fell with Wells Fargo (WFC 20.30, -1.10) leading the index's
4.9% decline. Shares of WFC were downgraded by star banking analyst Dick Bove.
There were a few glimmers of
strength in the sector, though. Property and casualty insurers (+0.4%) and
insurance brokers (+0.6%) both gained after Humana (HUM 29.25, +1.89) posted
better-than-expected earnings and an upbeat outlook.
Technology, which is the largest sector in the S&P 500 by market weight, generally traded in-line with the broader market. Qualcomm (QCOM 43.17, +1.81) provided the most support to the sector. The company announced it has entered into a settlement and multiyear patent agreement with Broadcom (BRCM 24.38, +0.16), which will result in the dismissal with prejudice of all litigation between the companies. Charges associated with settlements resulted in a loss at Qualcomm, but that was excused when the company issued an upbeat revenue forecast.DJ30 -51.29 NASDAQ -14.88 NQ100 -0.2% R2K -1.9% SP400 -1.2% SP500 -8.72 NASDAQ Adv/Vol/Dec 902/2.20 bln/1794 NYSE Adv/Vol/Dec 975/1.40 bln/2071