Stocks were losing traction and drifting back between small
losses and gains Tuesday after Wall Street was spooked by recent
inflation and housing market data. Financial and Telecom stocks are
underperforming, but the tech sector is getting a lift from gains
in Netflix (
) and Orbitz (
) following positive ratings actions. Expectations the Federal Open
Markets Committee will retain its bullish outlook on the U.S.
economy also is working to keep losses today to a minimum
Consumer prices rose 0.4% which was twice analysts' consensus.
Even excluding the volatile food and fuel component prices were
still up by a better-than-expected 0.3% raising fears that the Fed
might tighten monetary policy sooner than expected.
The housing market data didn't help the negative sentiment as
April starts fell 6.5% to a seasonally-adjusted annual pace of 1.00
million, missing estimates for a decline to only 1.036 million.
Permits dropped 6.4% to 991,000, below the consensus for a decline
to 1.062 million. In addition, April was revised lower to 1.06
million from 1.08 million initially.
In Europe, stocks slipped off their best levels, tracking U.S.
equities lower, but closed with conservative gains as the continent
digested its own round of inflation data. UK consumer prices fell
in April dropping odds for the Bank of England to raise rates
sooner than expected. In addition, UK housing prices improved and
strong European car sales.
Crude oil was up $0.16 to $107.50 per barrel. Natural gas was
unchanged at $4.70 per 1 million BTU. Gold was down $4.80 to
$1,270.50 an ounce, while silver was down $0.04 to $19.68 an ounce.
Copper was up $0.01 to $3.06 per pound.
Among energy ETFs, the United States Oil Fund was up 0.26% to
$39.27 with the United States Natural Gas Fund was down 0.27% to
$25.99. Amongst precious-metal funds, the Market Vectors Gold
Miners ETF down 0.18% to 24.01 while SPDR Gold Shares were down
0.12% to $122.28. The iShares Silver Trust was up 0.28% to
Here's where the U.S. markets stand at mid-day:
NYSE Composite Index up 10.32 (+0.10%) to 10,873.54
Dow Jones Industrial Average up 12.26 (+0.07%) to 16,793.27
S&P 500 up 2.50 (+0.13%) to 1,940.28
Nasdaq Composite Index up 18.10 (+0.42%) to 4,339.20
Nikkei 225 Index up 0.29%
Hang Seng Index down 0.42%
Shanghai China Composite Index down 0.92%
FTSE 100 Index up 0.18%
CAC 40 up 0.58%
DAX up 0.37%
NYSE SECTOR INDICES
NYSE Energy Sector Index down 0.56%
NYSE Financial Sector Index up 0.42%
NYSE Healthcare Sector Index up 0.09%
(+) BIOL (+20.21%) Oracle Partners prevails in board, legal
fight, forcing CEO's outster.
(+) GWPH (+15.78%) Preliminary data from a trial into its
Epidiolex treatment for drug-resistant epilepsy showed positive
(+) GIGA (+80.82%) $2.4 mln order from U.S. Navy for Model 8003
Precision Scalar Analyzers.
(+) BTUI (+21.83%) Raises Q2 revenue guidance.
(+) MRCS Oracle (
) reportedly in deal to buy Micros Systems.
(-) REI (-9.54%) Places 2 mln shares at discounted $15/share,
gets $150 mln secured credit facility.
(-) WSTC (-4.41%) Offering $1 bln senior notes.
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