YAHOO [BRIEFING.COM]: Stocks
made some dramatic swings this session, but the broader market failed to find
enough support to prevent a sharp loss that secured its worst monthly
performance since February 2009.
The major equity averages
traded in negative territory for the entire session as many buyers took a break
after the S&P 500 surged more than 3% in the prior session. Many were also
inclined to get an early start on the long, holiday weekend (U.S. markets will
be closed on Monday in observance of Memorial Day).
The absence of many
participants led to low trading volume for most of the session, but a flurry of
trades in the final hour pushed total trading volume on the NYSE to 1.4 billion
shares. That is actually above both the 200-day and 50-day moving average.
The heightened share volume on
what would ordinarily be a low-volume session suggested there was some
conviction among those that participated in Friday's trade. Their efforts
were partly fueled by news that ratings agency Fitch downgraded the debt
of Spain to AA+ from AAA. The announcement wasn't a total surprise given the
persistent fiscal problems that face the country, but it was still enough to
bring about a barrage of selling.
The headline also put pressure
on the euro, which fell roughly 0.8% to $1.227.
All 10 major sectors in the
S&P 500 settled in negative territory (utilities had a fractional loss).
Financial stocks, which fell 2.1%, felt the worst of the selling effort. They
were followed by energy stocks, which dropped 2.0%.
Weakness among energy stocks
was made worse by a drop in oil prices, which failed to recover from their
afternoon slide and, in turn, closed pit trade with a 0.8% loss at $73.92 per
barrel. Oil futures prices fell 14% this month.
Such weakness weighed heavily
on the CRB Commodity Index. In turn, the CRB recorded its worst monthly
performance in 16 months by dropping more than 8% in May.
The stock market performed
just as poorly this month. It closed May with a monthly loss of roughly 8.2%.
That made for its worst monthly showing in 15 months.
The latest dose of data had
little effect on trade. Reports included news that personal income for April
increased 0.4%, as expected, but personal spending was flat when a 0.3%
increase had been widely anticipated. Core personal consumption expenditures
made a monthly increase of just 0.1% for the second straight month, as had been
expected.
The University of Michigan's
final Consumer Confidence Survey for May improved to 73.6, which was slightly
better than expected.
The Chicago Purchasing
Managers Index for May came in at 59.7, which was a bit below what had been
expected after the index set a five-year high in April.
Precious metals put in a
lackluster session Friday, which marked the final trading day of the month since
markets will be closed on Monday in observance of Memorial Day. As for specific
action, gold prices mustered a fractional gain to settle pit trade at $1212.20
per ounce, while silver prices settled 0.2% lower at $18.42 per ounce.
Natural gas prices were
strong. Specifically, the commodity closed pit trade priced at $4.35 per MMBtu,
up 1.3%.
Oil prices failed to recover
from their afternoon slide. In turn, the commodity closed pit trade with a 0.8%
loss at $73.92 per barrel. That made for a modest pullback from the 8%
surge that oil prices recorded during the course of the two preceding sessions,
but even those gains couldn't prevent the worst monthly performance for oil
prices since December 2008 -- oil futures prices fell 14% this month.
Such weakness weighed heavily
on the CRB Commodity Index all month. In turn, the CRB Commodity Index
finished May 8.2% lower than where it started. That makes for the CRB's worst
monthly performance in 16 months.
Advancing Sectors: (None)
Declining Sectors: Financials (-2.1%), Energy (-2.0%),
Materials (-1.7%), Industrials (-1.5%), Consumer Discretionary (-1.4%), Telecom
(-1.0%), Tech (-0.9%), Health Care (-0.6%), Consumer Staples (-0.4%)
Unchanged: Utilities DJ30 -122.36 NASDAQ -20.64 NQ100 -0.6%
R2K -1.3% SP400 -1.1% SP500 -13.65 NASDAQ Adv/Vol/Dec 844/2.18 bln/1819 NYSE
Adv/Vol/Dec 968/1.45 bln/2071