Close Dow -80.03 at 10796.65, Nasdaq -74.40 at 2146.20, S&P -18.85 at 1248.58: [BRIEFING.COM] The market's recent enthusiasm for owning equities was tempered today by a batch of weaker than expected economic data, talk of an impending price war in the PC industry, and a bothersome view of order trends from chip equipment maker, Novellus Systems (NVLS -3.05)... Overall, though, it was the economic data that dictated the course of today's trade as they forced traders to question the prospects for an economic rebound, and an earnings rebound, in the latter half of the year, not to mention the idea that perhaps the market has come too far without enough fundamental support... The disconcerting details included a 9K increase in initial claims for unemployment benefits to 421K for the week of April 28 which brought the 4-wk moving average to 405K-- the highest level since Oct. 1992... In addition, job-placement firm, Challenger, Gray & Christmas, reported that businesses in April announced plans to eliminate165.6K positions-- the largest for any month since the firm started tracking such announcements in 1993... The other troubling indicator was the non-manufacturing NAPM Index... It fell to 47.1% in April from 50.3% in March... The fall below the 50% neutral mark was below expectations for 50.2%, and suggests a broadening of scope in terms of the economic downturn... Altogether, the data set an ominous stage for tomorrow's employment report and prompted Briefing.com to revise its payrolls forecast to a decline of 75K from a gain of 20K... For additional projections, be sure to visit Briefing.com's Economic Calendar... Aside from the economic data, talk of a brewing price war between Dell (DELL -1.80) and Compaq (CPQ -0.55), and a comment from the CEO at Novellus that he doesn't see a recovery in orders until Q4 at best, investors found little incentive to own equities in today's trade with the exception of some late buying activity that was probably a case of some short covering ahead of the jobs report... Interestingly, a number of bank stocks were contributors in the closing rebound effort... That development notwithstanding, today's selling interest was broad-based from an industry and market-cap standpoint... Pacing the declines were the technology, drug, retail, brokerage, homebuilding, and basic materials companies... By the closing bell, alcohol, tobacco, and conglomerates were the only S&P industry groups to gain at least 1.0%... DJTA -1.1%... DJUA -1%... SOX -3.5%... DOT -6.5%... XOI -0.7%... BTK -4.6%... Nasdaq 100 -4.3%... S&P Midcap 400 -1.6%... Russell 2000 -1.2%... NYSE Adv/Dec 1200/1848... Nasdaq Adv/Dec 1421/2328.
15:30 ET Dow -85, Nasdaq -79, S&P -21.96: [BRIEFING.COM] Indices still not getting a great deal of help from buyers, but they have shown some improvement since the last update... Overall, it has been a weak session, highlighted by weaker than expected economic data that have left traders in a guarded mood ahead of tomorrow's employment report... Briefing.com is expecting a 75K decline in payrolls, a 4.4% unemployment rate, a 0.3% increase in hourly earnings, and an avg. workweek of 34.3... Separately, we continue to expect a 50bp easing by the Fed at the May 15 FOMC meeting... NYSE Adv/Dec 1118/1907... Nasdaq Adv/Dec 1304/2440. |
