YAHOO [BRIEFING.COM]: An early
selling effort dropped stocks from an initial gain to a loss of more than 1%,
but stocks gradually made their way back to positive ground before falling
under a second wave of selling pressure. Although they finished the session
with a loss, stocks still logged impressive gains for the month.
Better-than-expected earnings
from several companies, including Nike (NKE 64.70, +4.61) and Jabil Circuit (JBL 13.41, +1.13) helped prop up the bias
in the broader market this morning. The tone of trade improved further from
news that second quarter GDP was revised upward to show an annualized decline
of 0.7%, which is better than the 1.2% annualized decline that had been
expected.
The GDP headline overshadowed
the latest ADP Employment Change Report, which indicated that 254,000 private
jobs were lost during September. Since that is worse than the consensus
forecast for 200,000 job losses, some wonder whether the government's official
nonfarm payrolls report on Friday will be worse than expected.
Despite early signs of
strength, stocks reversed direction in the first few minutes of trade. The
slide was exacerbated by news that the Chicago PMI reading for September came
in at 46.1, below the consensus forecast of 52.0 and down from the previous
reading of 50.0.
Within the first hour of
trading the S&P 500 saw a modest gain turn into a loss of 1.3%. However,
buyers waded back into the action and helped stocks turn their losses into a
midday gain. The rally was challenged, though, as the S&P 500 failed to
push through its opening highs.
Tech had been a primary source
of support for the midsession advance, but renewed selling pressure in the
second half of the session left the sector to finish with a mere 0.2% gain.
Semiconductor stocks were able to hold on to a near 0.9% gain, however.
Materials stocks had also
provided leadership as commodities prices soared. Though the sector faltered
and finished with a 0.5% loss, the CRB Commodity Index jumped 2.9% in its best
single-session percentage gain in nearly two months.
The CRB's impressive
performance came as bullish gasoline inventory data helped underpin a 5.7% gain
by crude oil prices, which settled at $70.49 per barrel. Meanwhile, gold prices
shot up a strong 1.5% to settle at $1009.50 per ounce.
The strong performance by
commodities helped give the CRB Commodity Index a 0.6% gain for September and a
3.8% gain for the third quarter.
Though stocks finished
September on a rather dour note, the S&P 500 was still able to book a
monthly gain of 2.7% and a quarterly gain of 14.9%, which is the second best
quarterly performance for the S&P 500 this decade. The best quarter came in
the second quarter of this year, when the stock market advanced 16.7%.
With the end of the quarter at
hand, investors and portfolio managers drove trading volume in the NYSE sharply
higher as they juggled their portfolios. In turn, nearly 1.8 million shares
traded hands on the NYSE. That's the second highest single-session tally this
month.
Advancing Sectors: Technology +0.2%, Consumer Staples +0.2%
Declining Sectors: Industrials -0.9%, Utilities -0.9%, Energy
-0.5%, Materials -0.5%, Health Care -0.5%, Financials -0.5%, Consumer
Discretionary -0.4%, Telecom -0.3%DJ30 -29.92 NASDAQ -1.62 NQ100 +0.1% R2K
-1.0% SP400 -0.6% SP500 -3.53 NASDAQ Adv/Vol/Dec 996/2.67 bln/1704 NYSE
Adv/Vol/Dec 1257/1.77 bln/1757