Despite a pullback of -$3.45/bbl in Crude Oil ($WTIC) as well as improved US manufacturing data, yesterday saw more steep losses in the equity market. The automakers were largely to blame.
The DJIA (-100.97 -0.81% to 12402.85), S&P 500 (-8.02 -0.58% to 1377.65) and NASDAQ Composite (-11.05 -0.44% to 2480.48) closed down on the session, but also higher than the intra-day lows, where the DJIA hit 12342.
Automakers reported very downbeat April sales data, with the other General, General Motors (GM) GM announcing a -29% decline; Chrysler a -26% decline, which put it into 5th position in North America; Ford down -16%; and even fuel-efficient car manufacturer Toyota down -4.3%. The aggregate sales result was alarming to the Bulls.
The sector leaders were Healthcare (XLV +0.66%) and Consumer Staples (XLP +0.53%), whereas Energy (XLE -2.15%) reversed track from the previous day’s leadership and led the market lower.
Airlines ($XAL +2.9%) liked the lower oil price, while Goldminers ($XAU) and Oil Services ($OSX) were down -1.9%.
The higher stocks for the Cara 100 companies were SanDisk (SNDK +5.5%), Garmin (GRMN +4.5%, which followed the prior day’s gain of +2.9%), Target (TGT +4.1% and Brunswick Corp (+3.6%).
The Cara 100 losers were China Telecom (CHA -11.4%), which reversed the previous day’s leading gain of +5.0%, PetroBrazil (PBR -4.6%) and India’s HDFC Bank (HDB -3.9%). HDB had lost -5.4% the previous day as well as the India stock market continues to sink.
On the earnings front, house-builder Toll Brothers (TOL) reverted to a Q2 loss of -$93.7 million (-$0.59 cents a share) versus earnings of +$36.7 million a year ago.
Crude Oil lost -$3.45/bbl to close at 124.31. In futures trading early today, the price is down to $123.70. Comments by Fed Head Bernanke and moves by India and Malaysia to cut fuel subsidies weakened the oil price, and firmed up the US Dollar ($USD +0.46% to 73.29).
With the stronger $USD, precious metal prices tumbled. $GOLD futures dropped -$11.50/oz to close yesterday at 885.50.
The US Treasury market firmed during the day, especially after 1:45pm ET when equities started falling quickly. At the close the long bond ($USB) closed up +0.73% to 115.89. The T-Bill yield is at 1.81 percent.
In the morning spot market, prices for precious metals are a tad lower (with prices compared in brackets to the previous day) for Gold, Palladium, Platinum and Silver: 878.52 (892.92); 426 (429); 1986 (2011); and 16.64 (16.73), respectively.
The Euro futures are trading a tad stronger early today at 1.5463, but still down from early yesterday’s 1.5580. Crude Oil futures are soft, down -0.61/bbl to 123.70. The DJIA near futures are down -38 to 12366.
