YAHOO [BRIEFING.COM]: Despite
plenty of trading catalysts, participants kept stocks confined to a relatively
narrow trading range as they allowed the previous session's sell-off to
consolidate in low-volume trade.
There weren't any widely-held
companies making announcements this morning, so economic data dominated
headlines. The ADP Employment Change Report for August topped the calendar, but
its suggestion that 298,000 private jobs were lost last month proved disappointing
since economists were expecting 250,000 job losses. Given the magnitude of the
miss, many are wondering whether the current consensus forecast for 225,000 job
losses in the government's official nonfarm payrolls report is too
conservative. The official jobs report for August will be released Friday.
Concerns about job losses and
the weakness of labor markets were expressed in the minutes from the FOMC's
latest meeting, which concluded on Aug. 15.
The FOMC minutes also
indicated that some of the committee members disagreed about whether slack in
the economy will keep inflation low. At least for now, though, inflationary
pressures remain in check. That was made evident by news that unit labor costs
for the second quarter were down a sharp 5.9%, which was slightly steeper than
what had been expected, while second quarter productivity spiked 6.6% in its
sharpest percentage increase since 2003. The increase in productivity was
slightly better than the 6.4% increase that was widely expected.
Factory orders made for July
made their sharpest increase since June 2008 by climbing 1.3%, but that was
still short of the 2.2% increase that had been generally expected. Despite the
less-than-stellar batch of economic data, stocks spent nearly the entire
session trading just a few points to either side of the neutral line before
sliding a bit into the close.
Aside a rather weak close, the
overall temperament of participants contrasted that of the previous session,
when stocks were sent sharply lower following a bevy of generally upbeat
reports. Trading volume wasn't what it was in the previous session, either.
Some 1.6 billion shares traded hands in the NYSE on Wednesday, but 1.3
billion shares were exchanged this time around.
Action was largely listless
this session, though materials stocks managed to sport solid gains for most of
the session. Aside from a 0.2% advance by the consumer staples sector,
materials stocks made up the only major sector in the S&P 500 to log a
gain. They advanced 0.6% as metals and mining stocks followed a surge in gold
prices.
Gold prices settled pit
trading 2.3% higher at $978.50 per ounce, near its best level since June.
Oil prices weren't quite so
fortunate. Early in the session oil prices pushed higher as they shrugged off
weekly inventory data that showed a smaller-than-expected draw of 372,000
barrels. Oil actually made its way to roughly $68.70 per barrel, but finished
flat at $68.05 per barrel.
Treasuries had a strong
session. Helped by a subdued mood among equity traders and the FOMC minutes,
the benchmark 10-year Note added 18 ticks, which pushed its yield below 3.3%
for the first time since May.
There aren't any widely-held
companies scheduled to make quarterly announcements tomorrow, but several
retailers will be out with their latest same-store sales results. Still, most
of the session's focus will be on the latest batch of economic data, which
includes the latest jobless claims numbers and the August ISM Service Index.
DJ30 -29.93 NASDAQ -1.82 NQ100 -0.1% R2K -0.4% SP400 -0.5% SP500 -3.29 NASDAQ
Adv/Vol/Dec 1266/2.00 bln/1386 NYSE Adv/Vol/Dec 1159/1.38 bln/1836