YAHOO [BRIEFING.COM]: A
broad-based decline following the latest dose of data resulted in the S&P
500's first weekly decline in five weeks.
There was some modest buying
into the close that helped the stock market break out of its narrow afternoon
trading range, which spanned just five points, and close above 1000. Still, the
extended sideways drift made for an extremely subdued session. Participants
showed their lack of interest by trading just over 1 billion shares
on the NYSE.
Stocks went on their slide
immediately after the University of Michigan's preliminary consumer sentiment
survey for August hit news wires just before 10:00 AM ET. The survey's reading
retreated to its lowest level since March by coming in at 63.2, which was well
below the 69.0 that was widely expected.
July CPI and core CPI were
released ahead of the opening bell. They caused little reaction since they were
spot on with expectations, which called for a flat reading and a 0.1% monthly
increase, respectively.
Industrial production data for
July was also released before the session's start. The data showed a slightly
stronger-than-expected 0.5% increase, thanks to inventory rebuilding and the
reopening of auto plants.
Though losses were broad-based,
materials stocks caught the brunt of the selling effort. Their 2.7% loss was
the worst of any major sector and it negated the previous session's 2.1% gain.
Retailers also had a weak
session. They shed 1.7% following downside guidance from JCPenney (JCP 31.23, -2.11). The dour outlook
overshadowed the company's better-than-expected second quarter earnings
results. Nordstrom (JWN 27.88, -1.88) shared in the weakness, despite reporting
in-line earnings and raising its outlook.
Defensive-oriented stocks
outperformed on a relative basis. Health care and telecom both fell just 0.3%,
while consumer staples stocks slipped 0.1% and utilities finished just below
the unchanged mark.
Financials helped the broader
market pare its losses into the close. The financial sector had been down more
than 2% at its session low, but finished with a much more modest 0.5% loss.
Regional banks (+1.6%) and diversified financial services firms (+0.4%)
provided the sector with support.
Despite paring losses in late
trade, more than 85% of the components in the S&P 500 finished in the
red Friday. That underpinned the stock market's first weekly decline in
five weeks, even if it was a relatively tame 0.6%.DJ30 -76.79 NASDAQ -23.83
NQ100 -1.1% R2K -2.0% SP400 -1.4% SP500 -8.64 NASDAQ Adv/Vol/Dec 585/1.94
bln/2084 NYSE Adv/Vol/Dec 859/1.09 bln/2159