Wall St Takes a Breather

Bulls Call Time Out Ahead of GS Date With Senate Subcommittee

It was an uneven day in the equities market, as traders weighed a solid round of corporate earnings against fresh mayhem in the financial sector. Dow member Caterpillar (CAT) provided a boost for the blue chips after raising its full-year earnings forecast, while home appliances heavyweight Whirlpool rallied to a new annual high in the wake of its quarterly report. However, Citigroup weighed on financial stocks as the U.S. Treasury began to unwind its stake in the bailed-out bank, and Goldman Sachs (GS) also slipped ahead of its date with a Senate subcommittee.

Elsewhere, ongoing concerns about the Greek debt crisis sent the dollar higher against the euro and yen, with many traders losing their taste for higher-risk assets. All three major market indexes rose to new 52-week highs today, but that didn't necessarily translate to a positive finish for stocks.

In fact, by the time the closing bell sounded, the Dow Jones Industrial Average (DJIA – 11,205.03) was barely able to keep its footing above the breakeven line. The Dow added just 0.75 point, or 0.01%, after rising to a new annual high of 11,258.01 earlier in the session. Thirteen of the 30 blue chips closed higher, led by Caterpillar, while financial firms Travelers Cos., JPMorgan Chase and Bank of America set the pace for the 16 decliners. Meanwhile, Kraft Foods finished flat. Despite a relative lack of conviction from the bulls, the Dow finished its second straight session above 11,200.

The S&P 500 Index (SPX – 1,212.05) didn't fare as well, with the index settling on a deficit of 5.23 points, or 0.4%. The SPX tapped a new 52-week peak of 1,219.80 earlier in the day, though, and is still perched above its 10-day moving average.

Finally, the Nasdaq Composite (COMP – 2,522.95) joined its peers by finding a new annual high of 2,535.28 in morning trading, but ended the day on a drop of 7.2 points, or 0.3%. However, the COMP maintained its position above the 2,520 region, which acted as resistance earlier this month.

Crude Turned Lower Checked By Rising Dollar

Oil turned lower today, with commodity traders taking their cues from a rise in the U.S. dollar. Additionally, the threat of oversupply continues to dog crude futures, with consensus expectations calling for another weekly increase in petroleum stockpiles. Following a round of robust economic data on the domestic front, traders also steeled themselves ahead of this week's policy announcement from the Federal Open Market Committee (FOMC); while the group is not expected to raise rates, the market will take a fine-toothed comb to the FOMC's language regarding future rate hikes. With these bearish catalysts at the forefront, crude oil ended the session on a deficit of 92 cents, or 1.1%, at $84.20 per barrel.

HAPPY TRADING & GOODLUCK2ALL