Markets are down between 0.4% and 1% . Oil is getting the homo hammer which is good for consumers.
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1:00 pm : The major equity averages are in the red with varied losses after a lack of leadership left stocks to slide shortly after the open.
Ahead of the open market participants were given the good news that the latest weekly initial jobless claims tally of 365,000 is down from the prior week and less than what had been widely expected. A 2.0% increase in first quarter unit labor costs and a 0.5% decline in first quarter productivity received less attention.
Stocks opened the session on a relatively flat note, but a disappointing ISM Non-Manufacturing Index reading of 53.5 for April invited some selling. The effort gained participation, but stocks attempted to rebound. The effort, however, lost momentum, leaving stocks to roll over so that they remain in the red.
Energy stocks are weighing on action for the second straight session. On the heels of the sector’s 1.6% drop in the prior session, Energy is down another 1.1% today. Of course, a 2.5% drop in oil prices to $102.60 per barrel hasn’t helped the sector’s prospects.
Tech, which represents the largest sector by market weight, is also in weak shape. Its 0.8% loss is matched by the Materials sector; only Energy is in worse shape.
Even strong earnings reports have failed to help win favor for many stocks. Visa (V 117.90, -4.29) is down well in excess of 3%, despite its upside surprise. General Motors (GM 22.48, -0.45) is also under pronounced pressure, while shares of Prudential (PRU 54.79, -1.15) have fallen precipitously. In contrast, Allstate (ALL 34.50, +1.59) has climbed almost 5% following the release of its latest quarterly results. DJ30 -42.87 NASDAQ -28.00 SP500 -6.73 NASDAQ Adv/Vol/Dec 710/910 mln/1750 NYSE Adv/Vol/Dec 1080/340 mln/1815
12:30 pm : Stocks have been unable to recover from their recent retreat. That has left the major equity averages to remain in the red with varied losses.
Among the headline indices, the Nasdaq is in the worst shape as large-cap Tech issue Intel (INTC 28.58, -0.39) has a decidedly negative impact on the Index. Akamai (AKAM 33.00, -1.09) is in especially weak shape as it contends with a loss on the order of 3%. Green Mountain Coffee Roasters (GMCR 25.84, -23.68) remains the worst performer in the Nasdaq, however. DJ30 -36.93 NASDAQ -26.4 SP500 -6.39 NASDAQ Adv/Vol/Dec 670/830 mln/1785 NYSE Adv/Vol/Dec 1030/315 mln/1870
12:00 pm : A recent flurry of selling forced stocks lower, such that the S&P 500 is back at the depths it set this morning while the Nasdaq is now at a new session low. The Dow is also down, but not yet back to its worst level of the day.
Energy stocks continue to trade with weakness. The sector is down 1.0% as oilfield services stocks come under stiff pressure. Integrated players like Exxon Mobil (XOM 85.83, -0.37) and Chevron (CVX 106.18, -0.85) are also in the red by their losses are less severe.”
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