Stocks Lower on Global Growth Woes

Published on Monday, 13 August 2012 18:18 Written by Christopher Lynn

New York, August 13^th (TradersHuddle.com) – Stocks pared losses, but still closed in negative territory, with the major benchmark indices ending mixed for the session and the S&P 500 snapping a six-day winning streak. Participants worried over a global economic slowdown after additional data around the world signaled a struggling global economy.

The Dow Jones Industrial Average lost 38.52 points, or 0.29%. The S&P 500 index fell climbed 1.76 points, or 0.13%, while the NASDAQ added 1.66 points, or 0.05%.

The market started with modest losses after a quiet pre-market, in which much lower than expected GDP data in Japan weighed on overseas markets. Additionally, over the weekend, Germany's Economy Minister Philipp Roesler voiced his disappointment on the limited progress from Greece. Finland's prime minister reaffirmed his opposition to granting the ESM a banking license and is not convinced the ECB should follow through with additional government bond purchases.

Most S&P 500 sectors ended lower, led by materials, energy, and healthcare. Meanwhile technology, consumer discretionary, and financials closed in positive territory. Trading volume was well below the daily average, as stocks traded in lackluster fashion.

The material sector was weighed down by concerns over future demand amid a sluggish global economy. Alcoa (NYSE: AA) lost 1.7%, posting the biggest decline in the Dow Jones Industrial Average, while Titanium Metals (NYSE: TIE) logged the biggest decline in the sector, dropping 2.4%. Last week, the company beat earnings expectations on revenues that missed consensus.

On the flip side in the sector, International Paper (NYSE: IP) jumped 4% to $33.94, posting the biggest percentage gain after the stock was upgraded to Outperform from Neutral at Credit Suisse.

In the energy space, ancillary plays like coal stocks weighed on performance, as Alpha Natural Resources (NYSE: ANR) slumped 3%.

QEP Resources (NYSE: QEP) was the worst performing stock in the sector, as shares tumbled 3.5%, while Tesoro (NYSE: TSO), the independent oil refiner, surged more than 9% in the session to top the S&P 500 Index. Shares jumped on news that the company will acquire BP's refinery in Carson, California, and related assets for about $2.5 billion.

In the consumer space, Sears Holdings (NASDAQ: SHLD) rallied 5.7% to $54.36 after positive comments from Barron’s. The financial publication said that the stock could double if Edward Lampert succeeds in his restructuring efforts. Campbell Soup (NYSE: CPB) gained 3% to $34.35 after Goldman Sachs upgraded the stock to a Buy and added it to its coveted Conviction Buy List.

Sysco (NYSE: SYY) rallied 4.5% after beating expectations on both the top and bottom lines. On the flip side, TripAdvisor (NASDAQ: TRIP) slumped 4.5%, the most in the broad market index amid news that Google (NASDAQ: GOOG) was acquiring Frommer’s Travel Guides from John Wiley & Sons.

Shares of Google saw upside, rallying 2.8% to $660, as the company announced that it would cut 20% of the workforce of recently acquired Motorola Mobility and after Morgan Stanley upgraded the stock to Overweight.

Salesforce.com (NYSE: CRM) was the top performer in the sector, jumping 3.8% to $145.15 after a bullish report from Piper Jaffray. The firm said the company landed an unexpected $140 million contract.

Apple (NASDAQ: AAPL) outperform in the session, jumping 1.3% to $630 and moved closer to challenge its all-time high of $644. Many participants believe the stock will post new highs amid the heightened expectations for the product refresh cycle due out in September.

Another stock showing outperformance was eBay (NASDAQ: EBAY). The owner of paypal and auction site gained 3% to $45.32 after ChannelAdvisor said that July’s same-store sales surged 28% from a year ago.