Reply #33: at the close [View All]

Dow 10,805.55 -30.98 (-0.29%)
Nasdaq 2,222.42 -0.32 (-0.01%)
S&P 500 1,259.62 -0.30 (-0.02%)
10-Yr Bond 44.66 +0.24 (+0.54%)
NYSE Volume 1,991,656,000
Nasdaq Volume 1,736,258,000

Stocks fell for the fourth straight day, extending the broader market's longest losing streak since October, as investors were concerned that ongoing strength in the housing market would spur further Fed tightening. Even though a smaller than expected 0.1% rise in core-PPI indicated that higher energy prices have not led to broad inflationary pressures, better than expected housing starts and building permits stole the spotlight. Nov. housing starts checked in above the 2.0 mln annual rate for a seventh straight month while strong permits suggested that builders still expect starts to stay at a strong rate in the months ahead -- one of Fed Chairman Greenspan's largest concerns. The 10-yr note closed down 5 ticks to yield 4.46%. With regard to industry leadership, seven of ten economic sectors closed in negative territory. Telecom Services turned in the day's worst performance following reports that ex-Qwest Communications (Q 5.65 -0.12) CEO Joseph Nacchio was indicted and confirmation that Sprint Nextel (S 24.47 -0.17), a suggested holding in Briefing.com's portfolio for active investors, will buy the remaining 68% of Nextel Partners (NXTP 27.84 +1.52) for about $6.5 bln. Consumer Staples was another weak spot, as consolidation efforts weighed on Altria (MO 76.06 -0.52), which a new 52-week high Dec. 15th, and Wal-Mart (WMT 48.60 -0.36) lost ground amid reports that it is under investigation for the transportation of hazardous waste. Despite a rebound in HMOs that extended the group's year-to-date gain to 42%, which plays into our Market Weight rating on Health Care, profit-taking in Pfizer (PFE 24.00 -0.32) -- yesterday's best performing blue chip -- weighed on the sector. Continued weakness in Consumer Discretionary lent further support for Briefing.com's Underweight rating on the sector. Weighing most heavily on the sector was General Motors (GM 19.85 -1.20), which hit an 18-year low amid reports that the auto maker could lose its coveted No. 1 position (by total volume) to Toyota in 2006 and is recalling nearly 426,000 vans. Despite Target (TGT 54.03 +1.23) saying Dec. comps growth of 4-5% remains on track, a 0.9% rebound in oil prices to $57.85/bbl and perhaps worries that New York City's first transit strike in 25 years could have a major negative impact on holiday shopping placed some added pressure on select retailers. Technology also lost ground as chip stocks, which struggled to offset weakness in hardware and networking, failed to hold onto the bulk of their gains. Energy, which was off nearly 4.0% over the last three sessions, however, gained ground. Financial also traded higher, benefiting from a stronger than expected Q4 report from Morgan Stanley (MWD 57.71 +1.04), one of our favored picks in the brokerage space. Nonetheless, their leadership was not enough to snap the market's four-day losing streak. DJTA -0.1, DJUA +0.3, DOT -0.3, Russell 2000 +0.1, SOX +0.5, S&P Midcap 400 +0.3, XOI +0.7, NYSE Adv/Dec 1618/1668, Nasdaq Adv/Dec 1347/1689