Stocks fell Monday as worries over Europe's debt crisis again took center stage. But the low volume softened the blow of the selling.
The S&P 500 lost 1% and the Nasdaq 0.8%. Hurt largely by financials, the NYSE composite dropped 1.1%. The Dow Jones industrial average fell a milder 0.6%, thanks in part to Boeing's (BA) 1.5% gain. The aerospace giant won a record $18 billion passenger jet order from Emirates.
Volume fell, even though Veterans Day kept trading light on Friday. In fact, volume was the lowest of the year on both major exchanges. The low trade helped the market avoid another distribution day, which would signal more institutional selling than has already occurred in recent weeks.
Headlines out of Europe have helped and hurt the market. On Monday, there was a round of bad news. Yields on five-year Italian bonds spiked to new euro-era highs, while 10-year bonds rose to nearly 7%. Spanish bond yields also rose.
German Chancellor Angela Merkel said that Europe is facing its toughest challenge since World War II. Industrial output in the euro zone fell 2% in September — the most since early 2009.
The rocky environment has led to a mixed market and tough trading conditions. The number of distribution days on the market is relatively high. But leading stocks continue to act well. Many leaders from various industries have staged breakouts.
Tibco Software (TIBX) joined the club Monday. It cleared a cup-with-handle base. The stock closed off its session high, but still above the 29.66 buy point.
VMware (VMW) cleared a tight trading area in heavy volume Monday. The stock is shaping a base with a 111.53 buy point. VMware's Relative Strength line is at a new high.
Alexion Pharmaceuticals (ALXN) found support at its 50-day moving average in the heaviest volume in more than a month. The stock breached the line last week, but only moderately and in light volume.
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