YAHOO [BRIEFING.COM]: Stocks
struggled to set forth on a clear path for the entire session. That left the
major indices to finish a bit mixed.
The Dow was able to net a
modest gain as Exxon Mobil (XOM 74.91, +1.68) and Chevron (CVX 76.59, +1.14) shared in strength stemming
from a better-than-expected earnings report from BP PLC (BP 57.82, +2.34). IBM (IBM 120.65, +0.54) also provided
leadership to blue chips by announcing that it has authorized $5.0 billion for
stock repurchases, which not only help improve earnings per share results by
reducing the number of outstanding shares, but also sends a signal to investors
that strong companies are now willing to fund buybacks, rather than stash cash
into their coffers amid economic tumult.
Despite IBM's strength, many
large-cap tech issues traded as laggards following downside guidance from
Internet search engine Baidu.com (BIDU 383.66, -49.31). Collective
weakness among large-cap tech caused the Nasdaq to underperform the other
headline indices.
Shares of consumer discretionary
stocks were among the worst performers this session, though. They dropped 1.7%
as retailers recoiled following a disappointing Consumer Confidence Index
reading of 47.7 for October. The consensus had called for a reading of 53.5.
Even shares of Under Armour (UA 29.27, -3.82) slumped, despite better-than-expected
quarterly earnings and a raised forecast.
Steel stocks also suffered.
They dropped 5.8% amid ongoing concerns regarding demand from such players as U.S. Steel (X 37.41, -3.17) and Schnitzer Steel (SCHN 47.38, -3.81), though both beat
earnings expectations.
Energy stocks steadily
outperformed the broader market for the entire session. The sector was helped
along by a 1.6% gain by integrated oil stocks and a 1.0% increase in oil
prices, which settled pit trade at $79.44 per barrel.
Oil's advance came in the face
of a 0.2% gain by the U.S. dollar against a basket of foreign currencies. The
Dollar Index has now advanced for four straight sessions.
Treasuries advanced solidly
amid the mixed action among stocks. They were also helped along by a strong 3.6
bid-to-cover outcome for a $44 billion auction of 2-year Treasuries. That
helped the benchmark 10-year Note climb nearly one full point and push its
yield back below 3.5%.
Advancing Sectors: Energy (+1.1%), Telecom (+1.0%), Health
Care (+0.6%), Consumer Staples (+0.2%)
Declining Sectors: Consumer Discretionary (-1.7%), Industrials
(-1.0%), Tech (-0.9%), Materials (-0.9%), Financials (-0.7%), Utilities
(-0.3%)DJ30 +14.21 NASDAQ -25.76 NQ100 -1.4% R2K -1.1% SP400 -1.1% SP500 -3.54
NASDAQ Adv/Vol/Dec 860/2.40 bln/1802 NYSE Adv/Vol/Dec 1053/1.40 bln/1977