Sellers Apply Renewed Pressure

July 18, 2011, 9:51 pm

18-Jul-11 16:20 ET Dow -94.57 at 12385.23, Nasdaq -10.70 at 2779.25, S&P -24.69 at 1291.47

Stocks were slapped by sellers again this session. The subsequent slide sent stocks to a new low for July.

The three major equity averages sank steadily in the first couple of hours. All three were down in excess of 1% before pressure started to ease. The market’s push up from its session low came after the S&P 500 had managed to resist extending its slide much below the 1300 line. June was the last time the S&P 500 traded below that line. The

broad market never really managed to make any kind of meaningful run higher, however. That left the major equity averages to settle with marked losses.

Tech stocks and energy stocks did a good job of staving off sellers. The two sectors logged losses of 0.3% and 0.4%, respectively. Tech was helped by Apple (AAPL 373.80, +8.88), which printed a record high. Halliburton (HAL 53.12, +0.04) helped oil and gas services stocks after it posted an upside earnings report.

Financials were down more than 2% at their session low, but managed to lessen that to a 1.4% loss. The sector was bogged down by weakness among banks and diversified financial services names like Bank of America (BAC 9.72, -0.28), which is scheduled to report its latest results tomorrow morning.

European bank stocks were especially weak amid lingering concern regarding fiscal conditions and sovereign debt in their home continent. Stress tests throughout the region late last week failed to quell concerns over the state of finances there. Threats of the matter imbued the broader market.

Financial media also focused on the lack of progress in raising the U.S. debt ceiling. The deadline for a decision is still a few weeks away.

Safe havens like gold and the greenback were on the short list of strong performers this session. Gold prices set a record high of almost $1608 per ounce in the face of a stronger dollar, which was up 0.4% at the end of the trading day. However, the dollar had been up close to 1% at its session high.

Advancing Sectors: (None)
Declining Sectors: Tech -0.3%, Energy -0.4%, Consumer Staples -0.6%, Telecom -0.8%, Health Care -0.8%, Utilities -0.9%, Consumer Discretionary -1.1%, Industrials -1.1%, Materials -1.2%, Financials -1.4%

..Nasdaq 100 -0.5%. ..S&P Midcap 400 -1.3%. ..Russell 2000 -1.5%.

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