|
Sector performance (% change on day):
Financials (-0.06%), Tech (-0.53%), Health Care (-0.54%),
Consumer
Staples
(-0.47%),
Consumer Discretionary (-0.41%),
Industrials (-0.02%),
Energy (-1.13%),
Telecom (-0.23%),
Materials (-0.69%),
and Utilities (-0.72%).
Like yesterday, the major averages attempted
to advance. Again, though, attention was fixed
on the Treasury market, and bond yields stifled
the stock markets upward efforts.
Yesterday, the equity market finally
responded to the upward push in bond yields.
Conditions did not worsen today, nor did they
really improve. Over the course of the week, the
yield on the benchmark 10-year note went from
4.67% (last Friday) to 4.85%. That still leaves
it at a 21-month high. The 4.9% on the 30-year,
meanwhile, is a yield that that note hasnt seen
in about a year. In the early going, Treasuries
started to recover a bit. But the attempt was
short-lived, and with its return to unchanged
territory came the stock markets decline.
Lately, the stock market has been impressively
resilient to rising interest rates. It could not
continue to turn a blind eye to them though, and
action over the last two sessions shows that
Treasuries are back in the spotlight.
Anticipation ahead of next weeks economic
calendar, which features the closely-watched
March Employment Report, contributed to the bond
markets passive stance. Mindful that Fed policy
will continue to be data-dependent, the economic
front remains in focus. There were a few items
on todays calendar, but none had much
market-moving impact.
The
core PCE was relatively in-line with
expectations and did not change the current
trend, Personal Income and Spending reports
brought no surprise, and the
Chicago PMI reading was no diversion in
the regional manufacturing trend.
The corporate front did not provide much of a
trading catalyst, either.
General
Motors (GM 21.27 +0.21) occupied the
headlines again. Concerns that voided union
contracts at supplier Delphi will lead to
a strike sparked early selling, but the stock
recovered and really did not have a big effect
today. Still, the Discretionary sector closed
0.4% lower. It and other especially
rate-sensitive areas faced selling pressure.
Homebuilders were a weak spot, the Utilities
sector fell 0.7%. The Financial sector also
declined. It did demonstrate some resilience,
but ultimately could not sustain a gain. Its
intra-day reversal left the market without
leadership.
The Energy and Materials sectors were the
worst-faring. After surging recently, energy
prices gave back some ground. Crude retreated
from its eight-week high, but its move was not
all that impressive, given the fact that it
remained at $66.50 per barrel. The equity market
didnt take much notice to falling energy
prices, however; interest rate trends
remained the driving force. Also, ongoing
concerns over Iran helped temper enthusiasm that
the price declines could have sparked.
Conversely, the Energy sector (-1.1%) was one
area of the market that did take note. The price
action prompted some market-dragging
profit-taking. The same thing happened within
Materials (-0.7%). Several metals hit or
approached historic highs this week, and
pullbacks gave traders a reason to secure some
recent returns across that sector.
Technology (-0.5%) was an additional factor
behind the markets decline. Semiconductors had
a volatile week, and the industry's drop today
helped submerge the sector and stunt the Nasdaq.
On a separate but related note, Google
(GOOG 390.00 +1.56) received some added
attention today. After the bell rang, the stock
officially became a member of the S&P 500.
Volume was nearly twice as much as usual, as
index fund managers had to add the stock to
their portfolios, but the stocks price was
little changed.
--Lisa Beilfuss, Briefing.com
In the table below are the ten top-performing and worst-performing
S&P industry groups on Friday.
| Industry
Group |
Components |
%
Gain |
|
Industry Group
|
Components |
%
Decline |
|
Computers & Electronics |
|
+1.60% |
|
Oil
& Gas Drillers |
|
-2.16% |
|
Consumer Electronics |
HAR |
+1.59% |
|
Home
Furnishing |
|
-2.12% |
|
Environmental Services |
|
+1.30% |
|
Gold |
NEM |
-1.97% |
| Tires
& Rubber |
|
+1.11% |
|
Motorcycle Manufacturing |
HDI |
-1.95% |
|
Airlines |
LUV |
+1.01% |
|
Specialty Consulting Services |
HRB |
-1.91% |
| Home
Entertainment Software |
ERTS |
+0.98% |
|
Photo Products |
EK |
-1.66% |
| Asset
Management |
|
BK, FII, BEN, JNS, MEL, NTRS, STT, TROW |
|
+0.92% |
|
Oil
& Gas Explorers |
|
APC, APA, BR, DVN, EOG, KMG, UCL, XTO |
|
-1.63% |
|
Electronic Manufacturing Services |
|
+0.78% |
|
Diversified Metals & Mining |
|
-1.61% |
|
Industrial Gases |
|
+0.69% |
|
Steel |
|
-1.58% |
| Human
Resources & Employment |
|
+0.68% |
|
Oil
& Gas Equipment |
|
-1.55% |
In the table below are the ten top-performing and worst-performing
S&P industry groups for the week.
| Industry
Group |
Components |
%
Gain |
|
Industry Group
|
Components |
%
Decline |
|
Diversified Metals & Mining |
|
+8.80% |
|
Agricultural Products |
|
-4.27% |
|
Fertilizer & Ag Chemicals |
|
+5.01% |
|
Auto
Manufacturers |
F, GM |
-3.73% |
|
Gold |
NEM |
+4.91% |
|
Advertising |
|
-3.32% |
|
Consumer Electronics |
HAR |
+4.75% |
|
Pharmaceuticals |
|
ABT, AGN, BMY, LLY, FRX, JNJ, KG, MRK, MYL, PFE, SGP,
WPI, WYE |
|
-3.06% |
| Home
Entertainment Software |
|
+4.07% |
|
Thrifts & Mortgage |
|
CFC, FNM, FRE, GDW, MTG, SOV, WM |
|
-2.95% |
| Oil &
Gas Equipment |
|
+3.26% |
|
Home
Furnishing |
|
-2.79% |
|
Internet Software & Services |
YHOO |
+3.12 |
|
Homebuilding |
|
-2.75% |
|
Environmental Services |
|
+3.08% |
|
General Merchandise |
BLI, DG, FDO, TGT |
-2.72% |
|
Internet Retail |
AMZN, EBAY |
+2.93% |
|
Construction & Farming |
|
-2.69% |
|
Computers & Electronics |
|
+2.48% |
|
Distillers |
|
-2.65% |
|