Energy (XLE -1.49%) was the hardest hit sector. The strongest sector was Utilities (XLU +1.21%), and the strongest industry group was Airlines ($XAL +2.0%). The Oils ($XOI -3.1%) and Goldminers ($XAU -1.9%) were weakest as the equity market was hinged on oil prices and the US Dollar.

The ADP/Macroeconomic Advisors employment report forecasted a +40,000 increase in private payrolls, well above the expected -60000 decline. Will Friday’s Jobs Report be better than expected?

With record high energy costs, the airlines are losing a bundle—over $6 billion in losses expected this year. The #2 US carrier United Airlines announced it is grounding older jets (mostly 737’s), which are less fuel efficient, and will cut 1,600 employees.

On the financing scene, a number of banks have put their goodwill on the line. Royal Bank of Scotland (RBS) appears to have dodged the bullet—this time at least.

UK mortgage lender Bradford & Bingley also dodged a bullet, but the circumstances appear to be questionable.

Lehman Bros (LEH) was desperately issuing statements the bank needs no new capital, or hasn’t been borrowing, or whatever. The stock gained +3.0% to 31.40.

This morning, Goldman opines that Wachovia Bank (WB) needs to cut its dividend. Imagine!

The strongest stocks for the Cara 100 companies were Whole Food Markets (WFMI +4.4%), Disney (DIS +3.5%) and Qualcomm (QCOM +3.1%).

The Cara 100 losers were mostly oils, including China National Offshore Oil (CEO), PetroBrazil (PBR), and Statoil (STO) as well as Vimpel (VIP), all of them down -3.9%.

With the stronger $USD (+0.27% to 73.49), precious metal prices softened. $GOLD closed down -$1.70/oz to 883.80. There will be more of that today because the $USD is very strong at this point in the morning.