The stock market has pulled back slightly from yesterday's record levels. The Dow is currently lower by 57 points. The Nasdaq is down by 4 points. The S&P 500 is lower by 4.91, or 0.32%.
Interestingly, those sectors which have been the strongest in recent weeks are those who are feeling the selling pressure today. It is likely a much needed breather as investors take some profits in these high flying stocks.
Basic material stocks are showing the largest losses of the day today, with profit-taking and lower gold prices largely to blame. Barrick Gold Corporation (NYSE:ABX) is lower by 4.88% on the day so far. Yamana Gold Inc. (NYSE:AUY) is lower by 4.42% as the entire gold producers group is under significant pressure so far today. Industrial gas supplier Praxair (NYSE:PX) is also quite weak so far today, losing 2.79%.
The other very notable loser today is the energy sector. Crude oil prices are down by about a dollar today, trading below $80 a barrel. Major oil companies are lower, led by ConocoPhillips (NYSE:COP) which is down by over 3% on the day. Hess Corporation (NYSE:HES) shares are shedding 4.16% of their value today as explorers and producers come under pressure. Smith International (NYSE:SII) which has doubled in the past year, is lower by 3.82% so far today.
Tech stocks are mixed on the day so far. Garmin Limited (Nasdaq:GRMN) continues to be torched, losing an additonal 7.44% after yesterday's 10.5% loss due to the news of Nokia buying rival Navteq. EMC Corporation (NYSE:EMC) shares are up by 2.11%, hitting a new 52 week high today.
Financials are actually the strongest sector thus far today. Fannie Mae (NYSE:FNM) is following up recent strong performances with another one today, higher by 3.73%. Bank of America (NYSE:BAC) leads the major money center banks higher today, gaining 1.66% so far on the day.
Headlines around the major newswires such as this one seem to point to today's poor housing number as the cause for today's moderate losses in the stock market. I'm not sure this is the case. The market certainly should have expected another record low in the exisiting home sales data. I think the fact that stocks have ran so quickly upward of late is the more likely cause of today's small selloff than the home sales which were expectedly bad.
A positive sign for the bulls is that today's pullback comes amid lighter volume than yesterday's runup. This lends credence to the theory that this move today could well be just some profit-taking.
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