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[BRIEFING.COM] On the heels of yesterday's advance, the major averages spent the session in the red. Interest rate concerns continue to plague the market, and today's better than expected housing data underpinned them. A batch of disappointing news from the earnings front gave investors further reason to sell, and spiking energy prices did not help matters.

The FOMC is expected to raise interest rates again on Tuesday. Anxiety ahead of that - and ahead of the accompanying policy directive - has been mounting. For a market cognizant of the fact that the Fed will base its policy decisions on the economic data, today's Existing Home Sales report was not inspiring. The reading checked in at a 6.91 million annual rate, which was up from the prior month and well above analysts' projection. Essentially, the data, which is considered a lagging indicator, undercuts the argument that a slowing housing sector will give the Fed a reason to pause its tightening cycle. To that point, Treasuries sold off. For both markets, the housing data exacerbated the lingering interest rate uncertainty and the pre-FOMC nervousness. Bonds continue to occupy much of equity traders' attention, and rising yields helped keep buyers at bay. Rate-sensitive areas, particularly the Financial sector (-0.4%), did not fare well. Utilities (-0.2%) also declined.

Homebuilding was one area of the market that took the opposite cue. In the early going, KB Homes (KBH 67.82 +3.23) had been a sore spot. After Wednesday's bell, the company delivered better than expected profit and reaffirmed its full-year guidance. But, like many of its peers, KB Homes cautioned that softening in some markets is likely. That assertion appeared to be overshadowed, today, by the existing home sales report. Tomorrow, new home sales data will be reported. Across the board strength lifted the industry close to 4% and helped push the Discretionary sector (-0.1%) towards the unchanged mark. That area of the market was also supported by retailers, which demonstrated interesting resilience to interest rate worries and surging energy prices. Apparel stocks did well, and home improvement retail benefited from the housing data. General Motors (GM 22.00 -0.01) again occupied headlines, due to its 78% sale of GMACCH to a private equity consortium, but the stock had little effect on trade.

With respect to today's energy price action, natural gas led the advance. The commodity gained about 4% despite the fact that the Energy Department reported a less than expected inventory drawdown. Crude, meanwhile, closed near $64 per barrel. While equity trade has lately appeared to be less affected by energy price fluctuations, oil today broke out of its recent range. Ongoing geopolitical concerns continue to support energy prices, and reports that the Italian company Eni declared a "force majeure" in Nigeria added fuel to the fire. Additionally, crude's advance may have been a delayed reaction to yesterday's unexpected drop in supply. The price action coupled with a profit warning from YRC Worldwide (YRCW 38.56 -6.73) in challenging transportation stocks and taking Industrials 0.6% lower. On the bright side, the action sparked some buying action across the Energy sector. Its 1.1% gain was not enough to take the indices to positive turf, but it did help limit their decline. Metal commodities also rose today, and resulted in the Materials sector's (+0.2%) advance.

Further to the earnings front, downside guidance from Adobe Systems (ADBE 36.33 -0.29) weighed heavily upon trade. There were a few pockets of strength that helped offset its effect, but the sector still booked a 0.4% loss. Yahoo (YHOO 31.83 +1.08), following an analyst upgrade, and Jabil Circuit (JBL 42.75 +4.51), due to its upside guidance, were two of the brightest spots. Semiconductors had offered some leadership intra-day, mostly to Advanced Micro Device's (AMD 34.75 +0.38) credit, but the industry pared its gain and took some of the steam out of the sector. As a side note, AMD's rise appeared to have been the result of Dell's announced acquisition of Alienware - a high end PC maker that uses AMD chips. The Consumer Staples sector, despite better than expected earnings reports from General Mills (GIS 50.23 +0.25) and ConAgra (CAG 20.54 +0.28), also spent the session submerged. Upgraded Sysco (SYY 32.36 +0.88) shares were a separate source of support, but, like the broader market, the sector ultimately faced wide-spread selling that left it with a loss.NYSE Adv/Dec 1579/1662...Nasdaq Adv/Dec 1604/1410