Stocks closed mixed on Wednesday amid lingering concerns about debt problems in Europe and a sharp drop in construction of new homes in the U.S. Financials were the weak spot in yesterday's trading but strength in retailers' shares helped contain the losses.
The blue-chip Dow average closed with a drop of nearly 16 points, its fourth drop in five sessions, but managed to close above the 11,000 level. The S&P, after declining for four consecutive days, edged up less than a point, to 1178.59. The tech-heavy Nasdaq Composite index rose slightly more than 6 points, or 0.3%, to 2476.01. On the New York Stock Exchange, two stocks rose in price for everyone that advanced. The CBOE Vix, market's gauge of volatility, fell 3.6% but was still above 20.
Financials weakened after reports surfaced that the Federal Reserve would conduct a second round of “stress tests” on 19 large banks that were subjected to the tests when the financial crisis was at its peak. The banks that underwent the stress tests include, Citigroup C, Bank of America BAC, JP Morgan Chase JPM and Wells Fargo WFC.
Shares in Bank of America BAC fell 2.7% to $11.62. JP Morgan Chase JPM fell 1.1% to $39.18 and Wells Fargo WFC dropped 1.2% to $26.86.
Retailers, however, showed strength yesterday. Shares in Kohl's Corp. KSS jumped 4.2% to $52.80 and Target TGT added 3.9% to $55.62. BJ's Wholesale Club BJ rose 3% to $37.54. Shares in Coach Inc. COH added 3.3% $52.52.
Improved prospects for China demand have sent copper prices, an industrial bellwether of growth, up 2.1% this morning. However, oil prices fell yesterday to their lowest since October 19, down $1.90, or 2.3%, to $80.44, despite news that US weekly inventory figures showed a 7.3 million barrel drop in crude stockpiles for the week ended November 12. This morning oil prices are trading up 1.9% to $81.98. Gold prices also are up, trading 1.7% higher in early trade.
Yesterday, S&P500 industry sectors consumer service (+0.6%), oil and gas (+0.5%) and consumer goods (+0.3%) showed gains on the day. Financials (-0.4%) ended up on the losing side.
Shares in Qualcomm QCOM jumped 3.5% yesterday after the management told a group of analysts that its chip inventory levels had dropped below the usual level, and that it sees double-digit sales and earnings growth over the next five years.
Companies reporting their numbers include Dell DELL, GameStop GME, Gap GPS, Sears SHLD, and Staples SPLS.
BANK OF AMER CP (BAC): Free Stock Analysis Report
BJ'S WHOLESALE (BJ): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
COACH INC (COH): Free Stock Analysis Report
DELL INC (DELL): Free Stock Analysis Report
GAMESTOP CORP (GME): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
KOHLS CORP (KSS): Free Stock Analysis Report
QUALCOMM INC (QCOM): Free Stock Analysis Report
SEARS HLDG CP (SHLD): Free Stock Analysis Report
TARGET CORP (TGT): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
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