Financial Stocks Hold Market Back

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Includes: BC, DIA, GLD, GM, OIL, PDA, POT, QQQ, SPY, UDN, UUP, VCP, VIP, WDC, XLF, XLV, XLY
by: Bill Cara

[Excerpted from Bill Cara's Daily Report]

Financial stocks held the market back again on Tuesday. The broad market indexes finished mixed after a final half-hour sell-off. NASDAQ was under selling pressure all day.

At the close, the DJIA (8,469.11 +50.34 +0.60%) was higher, but both the S&P 500 (908.35 -0.89 -0.10%) and NASDAQ Composite (1,715.92 -15.32 -0.88%) were down.

The Toronto Composite (10,077.70 -16.44 -0.16%) and Toronto Venture Board (1,078.27 +15.16 +1.43%) also closed mixed on the day.

Earlier Wednesday, prices were mixed in Asia Pacific markets. Japan’s Nikkei 225 (9,340.5 +41.88 +0.45%) and Shanghai Composite (2,663.8 +45.6 +1.74%) were up, while the Aussie All Ordinaries (3,842.5 -21.1 -0.55%), India BSE 30 (12,019.7 -138.38 -1.14%), and Hong Kong Hang Seng (17,059.6 -94.0 -0.55%) closed lower. The French CAC (3,193.6 7:47AM ET -1.16%), German DAX (4,769.3 7:32AM ET -1.75%) and UK FTSE 100 (4,380.1 7:32AM ET -1.03%) were all down between 1 and 2 percent as banks were weak in European trading.

In NY, the leader was Healthcare (XLV +1.6%), but only the Goldminers industry group ($XAU +3.6%) was remarkable. The Financials (XLF -2.1%) were led south by Banks ($BKX -4.2%). Consumer Discretionary (XLY -2.1%) was also weak, led south by GM.

The Cara 100 company stocks were led on the up side by PDA +13.8%, POT +6.2%, and VIP +5.9%. The losers were headed by BC -10.7%, VCP -7.5%, SNDK -6.2%.

The $USD (82.36 -0.36 -0.43%) returned to its downside trend. The Euro (136.47 +0.70 +0.52%), Pound (103.69 +1.14 +1.11%), Cdn Loonie (86.02 +0.35 +0.41%) and Yen (103.69 +1.14 +1.11%) were all stronger against the USD.

With the weak $USD, commodity prices gained strength.

Crude Oil ($WTIC 59.71 +0.30 +0.50%) lifted but still failed to hold the 60 mark again yesterday. Futures were a tad stronger (59.98 +0.27 +0.45% 07:22am ET).

$GOLD futures had a break-out to the upside (923.50 +10.20 +1.12%), but were a tad weaker Wednesday morning. But in recent weeks, the charts show a couple higher highs and higher lows, and the prices are higher than the 50- and 200-day Moving Averages, so the trend has changed to the Bull. Volatility is expected, and the cycle may be a short one.

Spot (cash) market prices earlier today were: Gold (922.23 -3.27 -0.35% 07:50am ET), Palladium (231.0 -1.0 -0.43% 07:50am ET), Platinum (1126.0 -3.0 -0.27% 07:50am ET), and Silver (14.11 -0.17 -1.19% 07:50am ET).

The Euro futures were a tad weaker earlier (1.3632 -0.0005 -0.04% 07:37am ET).

Stock futures for the DJIA were weaker (8360 -76 -0.90% 07:36am ET).

Wednesday, the EU announced a fine of $1.45 billion levied against Intel (NASDAQ:INTC) for predatory pricing practices that disadvantaged Advanced Micro Devices (NYSE:AMD). Intel said it would appeal. With advance knowledge, however, some traders sold INTC heavily for the past couple days. Regulators ought to investigate and prosecute.