YAHOO [BRIEFING.COM]: Participants
made a concerted push against stocks Friday, leaving the major indices to end
the week on a down note and log their first weekly loss since the start of the
month. Weakness was widespread as a large batch of better-than-expected
earnings results and an improved rate of existing home sales were shrugged off.
A pair of positive earnings
surprises from Microsoft (MSFT 28.02, +1.43) and Amazon.com (AMZN 118.49, +25.04) helped the Nasdaq
get a leg up on its counterparts in the first few minutes of action. Shares of
MSFT made their way to a fresh 15-month high, while shares of AMZN hit new
record highs, which helped drive the Nasdaq to a gain of more than 1%. Their
respective strength also helped the tech sector (-0.3%) limit losses and
retailers net a strong gain (+1.4%) as weakness in the broader market spread
and knocked the Nasdaq from its perch.
Sellers took all 10 major
sectors in the S&P 500 into the red as they dismissed a raft of
better-than-expected earnings from the likes of American Express (AXP 34.58, -1.86), Honeywell (HON 38.26, -0.27) Schlumberger (SLB 65.20, -3.40), and Broadcom (BRCM 28.50, -2.23). In turn, eight of the
sectors settled with losses in excess of 1%.
Materials stocks made up the
worst performing sector. They dropped 2.1% as a confluence of broader market
weakness and a stronger dollar made commodities look less attractive. With the
Dollar Index advancing 0.5%, the CRB Commodity Index fell 0.8%.
Oil prices were a considerable
drag on the CRB. Oil prices settled 0.8% lower at $80.50 per barrel. That
helped take the energy sector to a 2.0% loss.
Fed Chairman Bernanke spoke
about financial system reform at a conference this morning, but he didn't offer
any new insight or make any original statements, so the comments had no real
affect on stocks.
The only item on the economic
calendar was existing home sales data for September. Home sales climbed to an
annualized rate of 5.57 million from 5.09 million the month before. The upturn
was stronger than had been expected, given that the consensus forecast called
for an annualized sales rate of 5.35 million units in September.
Advancing Sectors: (None)
Declining Sectors: Materials (-2.1%), Energy (-2.0%), Utilities
(-1.7%), Industrials (-1.7%), Financials (-1.6%), Telecom (-1.3%), Consumer
Staples (-1.1%), Health Care (-1.1%), Consumer Discretionary (-0.7%), Tech
(-0.3%)DJ30 -109.13 NASDAQ -10.82 NQ100 -0.5% R2K -2.0% SP400 -1.3% SP500
-13.31 NASDAQ Adv/Vol/Dec 609/2.45 bln/2040 NYSE Adv/Vol/Dec 736/1.28 bln/2284