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Tuesday, 01 November 2011 | 22:00

DJ30 PointChange: -297.05 Level: 11657.96 NASDAQ PointChange: -77.45 Level: 2606.96 NQ100 PercentChange: -2.6 R2K PercentChange: -3.7 SP400 PercentChange: -3.3 SP500 PointChange: -35.02 Level: 1218.28 NASDAQ-Adv:409 Dec: 2158 NYSE-Adv:445 Dec: 2603

[BRIEFING.COM] Revived concerns related to Europe's ability to efficiently and effectively restore financial conditions resulted in another round of aggressive selling.

Stocks extended the prior session's sell-off by suffering another steep slide. Selling pressure was essentially underpinned by the belief that Greece could disrupt the implementation of the eurozone bailout plan by issuing a referendum, although some afternoon headlines suggested that the referendum was unlikely to win support. Selling pressure was exacerbated by dwindling confidence in Italy's financial health, as indicated by a spike in the yields of the country's debt.

Those themes took a heavy toll on Europe's bourses. In turn, the EuroStoxx 50 fell nearly 3%. The euro was also implicated; it tumbled to a 1% loss against the greenback, as of the close of trade.

Diversified bank stocks were some of the hardest hit issues in both Europe and at home. Their weight and their weakness left the overall financial sector to fall almost 5%.

Pfizer (PFE 19.33, +0.07) was the only Dow component that managed to post a gain. Its strength was owed to a better-than-expected quarterly report. That didn't do anything to inspire buying in the rest of the health care space, though. Health care stocks still suffered a collective loss of 2.0%.

As more participants turned to selling the Volatility Index surged. At session's end it was up 20%, which comes on top of the 10% jump that it made during the prior session.

Treasuries attracted a bevy of buyers amid the market's second straight tumble. That drove the yield on the benchmark 10-year Note below 2.0% after it had been near 2.4% less than one week ago.

Data did nothing to improve the mood of participants. The ISM Manufacturing Index declined to 50.8 in October from 51.6 in the prior month. It had been expected to improve to 52.1.

Construction spending increased by 0.2% in September, but it had been expected to increase by 0.3% after a 1.4% jump the month before.

Data from abroad featured the the United Kingdom third quarter GDP report, which showed a 0.5% increase, and an October PMI reading of 47.4 that followed a reading of 51.1 in the prior month. China posted a PMI of 50.4 for October, but that is down from 51.2 in the prior month.

Advancing Sectors: (None)
Declining Sectors: Telecom -1.6%, Consumer Staples -1.7%, Health Care -2.0%, Utilities -2.0%, Consumer Discretionary -2.2%, Materials -2.6%, Tech -2.8%, Industrials -3.1%, Energy -3.1%, Financials -4.7%

Source: Briefing

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