Brazilian stocks fell for the first time in three days after JPMorgan Chase & Co. strategists advised avoiding commodity stocks, metal and oil prices plunged and earnings for the third-biggest steelmaker missed estimates.

Cia. Siderurgica Nacional SA paced declines in metals producers after it became the second steelmaker this week to report profit that trailed estimates. Petroleo Brasileiro SA, Brazil's state-controlled oil company, dropped as crude fell more than $1 a barrel. Cia. Vale do Rio Doce slid for a third time this week as nickel plunged 2.1 percent.
``There's really not much to get excited about for stocks,'' said Felipe Taylor, an equity fund manager at Ciano Investimentos Gestao, the $142 million Sao Paulo hedge fund run by former central bank chief economist Ilan Goldfajn. ``Falling commodity prices is good for inflation but really bad for the Bovespa and stocks like Petrobras and Vale.''
The Bovespa index fell 894.32, or 1.6 percent, to 54,244.03. The index fell 4.1 percent this week. Mexico's Bolsa index gained 0.3 percent after the central bank increased its benchmark interest rate and signaled easing commodity prices and slower growth may reduce the need for further tightening. The MSCI Latin America index dropped 2.3 percent.
CSN fell 3.8 percent to 52.15 reais. Second-quarter profit rose to 1.03 billion reais, less than the 1.13 billion reais average of nine estimates compiled by Bloomberg.
Itau Corretora said CSN profit trailed its estimates. CSN may miss its forecast for iron-ore deliveries this year after ``much worse'' second-quarter volumes and prices, Itau said.
Usinas Siderurgicas de Minas Gerais SA, the second-biggest steelmaker in Brazil, dropped 3.8 percent to 53.90 reais.
Emerging-market investors should continue buying consumer shares and not be lured by commodity stocks that have become a third cheaper since May, JPMorgan said.
Commodity stock prices, relative to earnings, are in line with their long-term average and investors should continue to sell them and buy stocks that benefit from economic growth in emerging markets, JPMorgan strategist Adrian Mowat wrote.
Vale, the world's biggest iron ore and nickel miner, slid 2.2 percent to 35.70 reais. Nickel fell $400 to $18,700 a ton.
Petrobras retreated 2.3 percent to 32.67 reais. Oil has tumbled 23 percent from the record $147.27 a barrel reached on July 11. Petrobras slumped even as billionaire investor George Soros bought an $811 million stake in the second quarter, making the oil company his investment fund's largest holding.
Raw material prices plunged on concern about a slowing economy as the dollar's rebound reduced the appeal of commodities after a six-year boom. Gold plunged below $800 an ounce, and oil and slumped.
A gauge of raw material producers in the MSCI Brazil index dropped 3.8 percent for the second-steepest decline among the 10 industry groups after energy stocks.
Ultrapar Participacoes SA had the biggest gain in the Bovespa after Morgan Stanley raised its rating for the petrochemical company to ``overweight,'' saying its purchase of Chevron Corp.'s gasoline stations in Brazil will be a ``game changer'' for the company. Ultrapar agreed to pay Chevron $730 million for its Texaco-brand gasoline stations in Brazil. The stock rose 4.1 percent to 59.40 reais.
Centrais Eletricas de Santa Catarina SA, the electric company controlled by the state of Santa Catarina, jumped 3.3 percent to 46.50 reais after second-quarter profit beat analyst estimates.
In Mexico, the Bolsa gained for a third day after the central bank raised the key lending rate a quarter of a percentage point to 8.25 percent, the highest since December 2005.
``The market was expecting this,'' said Gonzalo Fernandez, a Mexico City-based analyst with Banco Santanader SA. ``The effect on the market has been muted.''
Grupo Aeroportuario del Sureste SAB, Mexico's second-largest non-state airport operator, rose 2.3 percent to 47.35 pesos on speculation falling oil prices will reduce costs for the nation's airlines, spurring air travel.
Industrias Penoles SAB, the world's top silver producer, fell for the fourth straight day as silver prices declined. Penoles slipped 4.8 percent to 188.49 pesos.
(Source: Bloomberg)