DJ30 PointChange: -190.57 Level: 11903.16 NASDAQ PointChange: -46.59 Level: 2638.07 NQ100 PercentChange: -1.8 R2K PercentChange: -1.8 SP400 PercentChange: -1.4 SP500 PointChange: -20.90 Level: 1235.94 NASDAQ-Adv:682 Dec: 1880 NYSE-Adv:720 Dec: 2309
Stocks rolled over in the final hour of trade to logg sizable losses.
The move lower coincided with a retreat by the euro.
The major equity averages opened trade today with marked losses, but
stocks gradually worked their way up to the neutral line. The lack of
leadership left stocks to lose momentum and drift back into negative
Selling accelerated in the final hour, right around the time that the
euro began its pullback from positive territory. The euro, generally a
barometer of confidence in the eurozone, had been down against the
greenback in morning trade, but eventually mustered a modest gain. That
move proved unsustainable, though, as it forfeited its gain to trade
with a 0.3% loss against the dollar by session's end.
Although it wasn't a revelation, analysts at Fitch reminded market
participants about the risk of contagion by suggesting that domestic
banks could be hurt if the fiscal and financial problems of Europe
worsen. For now, though, the analysts have a stable outlook on the U.S.
banking industry. In contrast, analysts at Moody's downgraded credit
ratings on 10 banks in Germany, which is Europe's strongest, most
Financials had been relatively weak all session and, perhaps
appropriately, suffered some of the steepest losses. The sector's 2.5%
drop was driven by shares of large-cap diversified financial services
players like Bank of America (BAC 5.90, -0.23), which set a new monthly low.
Even energy stocks were imbued by broad market weakness, despite a
rally by oil prices to a multi-month high above $100 per barrel. The
energy component closed pit trade more than 3% higher at almost $102.60
per barrel, but energy stocks, as a group, logged a 1.5% loss.
Tech stocks tried to offer support on a few occassions, but efforts
were repeatedly checked by sellers, culminating in a 1.5% loss for the
largest sector by market weight. Dell (DELL 15.25, -0.38) was a steady drag after its tepid guidance cast a pall over an upside earnings surprise.
For the second straight session data did little for traders. The
economic calendar featured an October Consumer Price Index that slipped
by 0.1%, which is not too different than the consensus call for no
change. Core prices made a 0.1% increase, just as had been generally
expected. Separately, industrial production increased in October by
0.7%. That exceeded the 0.4% increase that had been broadly expected.
Advancing Sectors: (None)
Consumer Staples -0.8%, Utilities -1.3%, Tech -1.5%, Energy -1.5%,
Industrials -1.5%, Telecom -1.6%, Health Care -1.8%, Consumer
Discretionary -1.9%, Materials -2.4%, Financials -2.5%