YAHOO [BRIEFING.COM]: The
Nasdaq logged a modest gain as biotech stocks advanced in the face of broader
market selling pressure, which kept the Dow and S&P 500 in the red for the
entire session.
Coming off of a gain of more
than 2% last week, participants moved against stocks in broad fashion. Of the
10 major sectors in the S&P 500, health care was the only one to sport a
steady gain for the vast majority of the session. It finished 0.7% higher as
biotechs climbed 2.4%.
Biotechs were also primary
leaders in the Nasdaq Composite and the Nasdaq 100, where large-cap technology
typically determines the direction of trade. Tech stocks finished fractionally
higher, but Dell (DELL 16.01, -0.68) was dropped for a sizable loss. It announced
that it will acquire Perot Systems (PER 29.56, +11.65) for $3.9 billion, or
$30 per share in cash, which represents a near 70% premium to the closing price
of PER last Friday.
This session's losses were
steepest among financials, energy stocks, and materials stocks. All three shed
0.9%. Financials fell as consumer finance stocks (-2.5%) and life and health
insurers (-2.1%) faltered, but energy and materials stocks were pressured by
falling natural resource prices.
Oil futures prices dropped
3.2% to $69.71 per barrel, while natural gas fell 5.4% to $3.57 per contract.
Gold prices finished 0.5% lower at $1004.90 per ounce, while silver prices
settled 1.1% lower at $16.88 per ounce. Their collective weakness took the CRB
Commodity Index down 2.2%, which is its worst single-session percentage loss in
more than one month.
A rebounding U.S. dollar,
which lifted the Dollar Index to a 0.5% gain, only emboldened the desire of
participants to dump commodities.
For the fifth consecutive
month, the Leading Indicators Index posted positive growth. However, the 0.6%
increase for August was slightly less than the 0.7% increase that was widely
expected and was also down from the upwardly revised 0.9% increase that was
registered in July. There wasn't much importance placed on the report since it
has done a poor job in past recessionary cycles of predicting the shape of
economic recovery.DJ30 -41.34 NASDAQ +5.18 NQ100 +0.4% R2K -0.3% SP400 -0.3%
SP500 -3.64 NASDAQ Adv/Vol/Dec 1243/2.41 bln/1430 NYSE Adv/Vol/Dec 1010/1.20
bln/2003