DJ30 PointChange: -142.97 Level: 12411.23 NASDAQ PointChange: -48.69 Level: 2809.73 NQ100 PercentChange: -1.6 R2K PercentChange: -2.4 SP400 PercentChange: -2.0 SP500 PointChange: -16.73 Level: 1308.93 NASDAQ-Adv:566 Dec: 1931 NYSE-Adv:617 Dec: 2411

[BRIEFING.COM] Spain’s first step toward shoring up its banking system brought about a bid that gave the major equity averages a positive open, but support waned steadily throughout the session, leaving stocks to settle at session lows with sizable losses.

Market participants initially applauded news that Spain has requested $125 billion for its banks since that would help provide confidence and security to the rest of Europe’s banking system, in which domestic financial outfits are heavily invested. However, any form of euphoria that remained by the time US markets opened dithered away throughout the trading day as focus returned to the persistently precarious conditions facing the rest of Europe.

Strength in the euro also faded. It was up modestly in morning action, but by the afternoon it was trailing the dollar. Unable to recover, the euro fell about 0.3% against the greenback.

While selling was broad, Financials, Tech, and Materials were hit the hardest. Each sector slid to a loss of almost 2%. Spanish banking outfit Banco Santander (STD 5.92, -0.19) slumped – the firm had its rating cut by analysts at Fitch. Meanwhile, Apple (AAPL 571.17, -9.15) also reversed into the red to cause a heavy drag. The company’s latest developers conference failed to inspire sustainable gains in the stock.

Telecom scored the only gain of the session. The sector was up about 1% at its session high, but settled only narrowly above the neutral line. Telecom stocks outperformed during the month of May, but were relatively quiet last week. AT&T (T 34.59, +0.04) was a source of strength as it traded up to $35 per share for the first time since 2008 before being imbued by broad market weakness.

A few key commodities were also caught up in the selling effort. Crude oil prices were up in early pit trade, but settled with a 1.8% loss at $82.59 per barrel, just above its session low of $82.51 per barrel. Selling even extended into electronic trade so that prices were below $82 per barrel after the close of pit trade. However, gold prices were able to recover from an early retreat into the red to push its way back above the breakeven line. Gold managed to settle 0.3% higher at $1596.70 per ounce.

Advancing Sectors: Telecom +0.1%
Declining Sectors: Utilities -0.2%, Consumer Staples -0.4%, Health Care -0.9%, Industrials -1.2%, Energy -1.2%, Consumer Discretionary -1.6%, Tech -1.7%, Materials -1.8%, Financials -1.9%

Source: Briefing