AI
Wednesday, January 03, 2007 6:00:40 PM
Market Update 070103
http://biz.yahoo.com/mu/update.html
4:20 pm : What was shaping up to be a very strong start to 2007 actually ended on a rather lackluster note, as diminishing hopes of a possible interest rate cut left the sustainability of a nearly six-month rally in stocks up for debate.
With U.S. markets closed Tuesday to commemorate the recent passing of President Ford, and equity markets rallying around the world, investors feeling left behind embraced upbeat corporate news, some positive analyst commentary, falling oil prices and the seasonality factor to get back into buying mode.
As a reminder, today marked the second-to-last trading day of the classic year-end Santa Claus rally which, according to the Stock Trader's Almanac, has resulted in an average return of 1.5% for the S&P 500 since 1950. In fact, an influx of new fund inflows that typically hit the market on the first day of trading for the month/quarter/year, as evidenced by the biggest volume in several weeks, provided an additional floor of market support.
After contracting for the first time in more than three years, the ISM index rebounding to 51.4 in December (from a sub-50 read in November) provided even more confirmation that manufacturing is holding up nicely, helping to alleviate the worst of recession fears. In fact, the report more than offset monthly ADP employment data that suggested Friday's closely-watched and more credible Dec. jobs report will disappoint.
Throw in Wal-Mart (WMT 47.50 +1.32) providing an additional vote of confidence about the health of the consumer, after saying December same-store sales rose more than expected, the surprise resignation of Home Depot (HD 41.12 +0.96) Chairman and CEO Robert Nardelli, and bargain hunters jumping at the chance to buy last year's worst performing Dow component, Intel (INTC 20.32 +0.07), and Wednesday had all the makings of a broad-based rally. Intel was up more than 3% at one point, providing a huge boost for the influential Tech sector.
Be that as it may, with the market pricing in the chances of a soft landing for the U.S. economy and an eventual Fed rate cut, investors already anxious about what the FOMC minutes from the December 12 meeting would say about inflation and the direction of Fed policy grew even more concerned in afternoon trading.
At 2:00 ET, investors sifted through a report showing that all Fed members agreed that the risk of inflation failing to moderate remained the "predominant concern." With the market even more preoccupied about the pace of economic growth, several policy makers also acknowledging that the "downside risks to economic growth in the near term had increased a little," with economic activity in the second half of this year probably "a touch softer than had been expected," also took a toll on overall sentiment. In fact, today's volatile action resulted in the biggest range for the Dow (175 points) since August 2006.
Oil prices posting their biggest one-day decline (-4.5%) since April 27, 2005 (-4.8%), was another source of support; but the subsequent absence of leadership in the Energy sector (-3.7%) also served as a reminder of how crucial profits from the likes of explorers, drillers, refiners and integrated oil companies are to the overall earnings picture. Crude for February delivery slipped below $59/bbl for the first time since November 24 and closed at $58.32/bbl after the National Weather Service called for warmer temperatures through the 15th of January in the U.S. Northeast, the largest customer of heating oil. DJ30 +11.37 NASDAQ +7.87 SP500 -1.70 NASDAQ Dec/Adv/Vol 1496/1624/2.30 bln NYSE Dec/Adv/Vol 1870/1863/2.24 bln
3:30 pm : Stocks bounce off session lows but continue to languish in negative territory. Further underscoring renewed skepticism about the sustainability of the second-half rally in equities has been continued deterioration in market breadth. Decliners, which were edging out advancers on the Nasdaq 45 minutes ago, now outpace advancing issues on the NYSE as well. As a reminder, the Dow has closed at new record highs more than 20 times since October and the S&P 500 is fresh off of posting its seventh straight monthly gain -- its longest winning streak in a decade. DJ30 -13.28 NASDAQ -6.71 SP500 -5.22 NASDAQ Dec/Adv/Vol 1813/1281/2.06 bln NYSE Dec/Adv/Vol 1960/1390/2.04 bln
3:00 pm : Sellers continue to show their resolve as industry leadership changes hands to favor the bears; seven out of 10 sectors are now posting losses. Energy continues to pace the way lower, but the absence of upside leadership from influential areas like Technology, Financials and Health Care are weighing even more heavily on the broader market. Adding to the market's recent struggles have been the indices' inability to find initial support near key technical levels of 12420, 1410 and 2400 on the Dow, S&P and Nasdaq, respectively.DJ30 -50.56 NASDAQ -18.58 SP500 -9.86 NASDAQ Dec/Adv/Vol 1733/1357/1.89 bln NYSE Dec/Adv/Vol 1773/3363/1.82 bln
2:30 pm : The major averages now trade in split fashion as a five-month rally predicated on the chances of the Fed engineering a soft landing for the U.S. economy comes into question following the FOMC Minutes. At the top of the hour, investors sifted through a report showing that all Fed members agreed that the risk of inflation failing to moderate remained the "predominant concern." With the market even more preoccupied about the pace of economic growth, several Fed members also acknowledging that the "downside risks to economic growth in the near term had increased a little," with economic activity in the second half of this year probably "a touch softer than had been expected" have also taken a toll on overall sentiment.DJ30 +13.29 NASDAQ -3.20 SP500 -2.75 NASDAQ Dec/Adv/Vol 1409/1676/1.62 bln NYSE Dec/Adv/Vol 1410/3475/1.56 bln
2:00 pm : Market continues to pare some of its gains as investors anxiously wait to see what the FOMC minutes from the Dec 12 meeting, which are due out momentarily, say about inflation and the direction of Fed policy. Even though the markets have priced in a high probability that policy makers will cut rates before getting back to tightening, that assumption could be undermined somewhat with the minutes since the details have the ability to alter policy expectations for the Fed's next meeting on January 30-31.DJ30 +62.24 NASDAQ +23.01 SP500 +3.88 NASDAQ Dec/Adv/Vol 1224/1843/1.48 bln NYSE Dec/Adv/Vol 1277/3439/1.40 bln
1:30 pm : Stocks continue to put together a solid advance but sellers have recently stepped in to leave the major averages at afternoon lows. With the Treasury market in a holding pattern ahead of today's FOMC Minutes (2:00 ET), the rate-sensitive Financials sector has seen its intraday gains nearly halved. Oil prices still off more than 4% continue to provide a floor of market support; but the subsequent absence of leadership in the Energy sector also serves as a reminder of how crucial profits from the likes of explorers, drillers, refiners and integrated oil companies are to the overall earnings picture.DJ30 +74.27 NASDAQ +28.76 SP500 +5.22 XOI -2.6% NASDAQ Dec/Adv/Vol 1136/1930/1.36 bln NYSE Dec/Adv/Vol 1212/3388/1.29 bln
1:00 pm : Stocks are retracing morning highs as oil prices hit fresh session lows. Crude for February delivery is now down more than 4.0% near $58.50/bbl. Aside from recent weather forecasts calling for mild temperatures possibly curbing the demand for heating oil there are already concerns among traders that tomorrow's weekly inventories report, which has been delayed by a day due to the New Year's holiday, will also show that the market remains well supplied. Oil prices are heading for their biggest one-day decline since Nov. 16., when the December contract plunged 4.3% to $56.26/bbl amid growing doubts that OPEC would live up to output cuts. DJ30 +106.99 NASDAQ +34.99 SP500 +9.04 NASDAQ Dec/Adv/Vol 1123/1943/1.26 bln NYSE Dec/Adv/Vol 1220/3220/1.18 bln
12:30 pm : The indices are off their best levels, but a bullish market breadth remains firmly intact. As reflected in the A/D line, advancers on the NYSE hold a nearly 3-to-1 margin over decliners while those on the Nasdaq enjoy a almost 2-to1 edge. Exacerbating today's widespread rally has been the indices' ability to break through key technical levels of 12542, 1424 and 2445 on the Dow, S&P 500 and Nasdaq, respectively.DJ30 +90.49 NASDAQ +30.45 SP500 +7.13 NASDAQ Dec/Adv/Vol 1102/1929/1.13 bln NYSE Dec/Adv/Vol 1142/3131/1.03 bln
12:00 pm : Stocks are trading near session highs midday as pent-up buying interest, seasonal factors, plunging oil prices and more evidence of a soft landing kick off 2007 on an upbeat note.
With U.S. markets closed yesterday, while equity markets rallied around the world, investors feeling left behind and an influx of new fund inflows that typically hit the market on the first day of trading for the month/quarter/year have provided the initial floor of market support.
After contracting for the first time in more than three years in November, the ISM index rebounding to 51.4 in December has provided more confirmation that manufacturing is holding up nicely, helping to alleviate the worst of recession fears. The report has more than offset monthly ADP employment data that suggest Friday's closely-watched and more credible Dec. jobs report will disappoint.
From a sector standpoint, Technology is today's runaway winner (+1.8%) as several of its most influential components (e.g. CSCO, INTC, GOOG, DELL, ORCL, and YHOO) post gains of more than 2.0%. Bargain hunting interest appears to be playing an added role behind the 3.0% surge in Intel (INTC 20.86 -0.61), last year's worst performing Dow component (-18%).
The Industrials sector is also providing some notable leadership with a gain of more than 1.0%. The unexpected increase in manufacturing activity is acting as the biggest source of sector support while Transports are benefiting from some analyst upgrades (e.g. CHRW, JBHT) and a 3.6% sell-off in oil prices. Oil, which accounts for roughly 30% of the costs for airlines (+4.3%), is trading below $59/bbl for the first time since November 24 due in large part to more warm weather forecasts.
Consumer Discretionary, which has been in focus and garnering support following the surprise resignation of Home Depot's (HD 41.46 +1.30) CEO, is also benefiting from oil's decline while Consumer Staples is getting a lift after Wal-Mart (WMT 47.56 +1.38) said that December same-store sales rose more than expected. Both are among the 25 Dow components trading higher today and lifting the blue-chip index to new all-time intraday highs. BTK +0.8% DJ30 +107.43 DJTA +2.6% DJUA +0.7% DOT +1.8% NASDAQ +34.95 NQ100 +1.7% R2K +0.9% SOX +1.9% SP400 +0.9% SP500 +9.28 XOI -2.1% NASDAQ Dec/Adv/Vol 1048/1978/1.03 bln NYSE Dec/Adv/Vol 1100/3055/930 mln
11:30 am : More of the same for stocks as the Nasdaq (+1.5%) continues to outpace its blue chip counterparts to the upside. With the tech-heavy Composite lagging the Dow and S&P 500 in 2006, which were up 16% and 14%, respectively, versus a 9.5% gain for the Nasdaq, it isn't all that surprising to see some bargain hunting interest take hold. Most notably has been a 2.8% surge in Intel (INTC 20.82 +0.57), which was the biggest laggard on the Dow Industrials last year with an 18% decline. Albeit posting an 11% gain in 2006, Google (GOOG 472.11 +11.63) surging 2.5% today, after Piper Jaffray raised their price target to $630 from $600 and rated the company their top pick for 2007, has investors jumping into another tech bellwether that is 8% off its all-time high of $513 (Nov. 22).DJ30 +110.97 DOT +1.6% NASDAQ +35.79 SP500 +9.33 NASDAQ Dec/Adv/Vol 992/1989/864 mln NYSE Dec/Adv/Vol 1098/2794/724 mln
11:00 am : Stocks are holding steady at sharply higher levels as buyers remain in complete control of the action. Crude for February delivery now down 3.8% and slipping below $59/bbl for the first time since Nov. 24 is providing an additional level of market support. The National Weather Service calling for warmer temperatures through the 15th of January in the U.S. Northeast (the largest customer of heating oil) raises concerns among commodity traders about diminishing demand for heating oil. Since oil make up roughly 60% of the costs for chemical companies, the Materials sector recently turning positive is also helping to offset further consolidation in the Energy sector (-4.1%). DJ30 +102.70 NASDAQ +33.91 SP500 +9.15 NASDAQ Dec/Adv/Vol 917/2037/730 mln NYSE Dec/Adv/Vol 1039/2705/604 mln
10:30 am : Equities extend their reach to the upside following an unexpected increase in manufacturing activity. After contracting for the first time in more than three years in November, the ISM index rebounded to 51.4 in December as a rise in new orders (to 52.1) and production (to 51.8) lend some additional support to an economy plagued by weakness in autos and housing. The prices paid index falling to 47.5%, coupled with a sell-off in oil prices (-3.2% at $59/bbl), also ease concerns on the inflation front. DJ30 +111.91 NASDAQ +32.14 SP500 +10.72 NASDAQ Dec/Adv/Vol 850/2051/516 mln NYSE Dec/Adv/Vol 1029/2427/400 mln
10:00 am : The major averages are still on the offensive as the bulk of industry leadership remains positive. Of the eight sectors trading higher, Technology is pacing the way as several of its most influential components (e.g. CSCO, INTC, GOOG, AAPL, DELL, and YHOO) post gains of at least 1.0%. Health Care is also providing some notable leadership, fueled in part by an analyst upgrade on Merck (MRK 44.16 +0.56), while the rate-sensitive Financials sector takes full advantage of a decline in borrowing costs amid a rally in the Treasury market. Energy, though, is plunging more than 3.0% in sympathy with a 2.1% in oil prices (to below $60/bbl) and a slew of analyst downgrades (e.g. XTO -2.8%, NBR -3.9%, HES -2.7%, SUN -2.1%).DJ30 +66.61 NASDAQ +21.08 SP500 +5.52 NASDAQ Dec/Adv/Vol 739/2003/220 mln NYSE Dec/Adv/Vol 763/1729/112 mln
09:40 am : Stocks kick off the first trading day of 2007 on a positive note. With U.S. markets closed yesterday, while equity markets rallied around the world, investors feeling left behind and an influx of new fund inflows that typically hit the market on the first day of trading for the month/quarter/year are adding to the bullish disposition. On the corporate front, Home Depot (HD 41.25 +1.07) surging nearly 3%, following the surprise resignation of Chairman and CEO Robert Nardelli, and a 4% rise on shares of larger Dow component Wal-Mart (WMT 48.05 +1.87), after saying December same-store sales rose more than expected, are also contributing to the improved sentiment after the last two trading days of 2006 ended in the red. Home Depot was one of last year's worst performing Dow components.DJ30 +78.06 NASDAQ +24.27 SP500 +6.23 NASDAQ Vol 122 mln NYSE Vol 80 mln
09:15 am : S&P futures vs fair value: +6.7. Nasdaq futures vs fair value: +13.0.
09:00 am : S&P futures vs fair value: +7.8. Nasdaq futures vs fair value: +15.0. Bullish bias persists in pre-market trading, and as such, expectations for the cash market to open higher remain intact. Aside from expected leadership coming from the Consumer Discretionary sector, following the surprise resignation of Home Depot’s CEO and amid further deterioration in oil prices (-1.4% at $60.20/bbl), a drop in interest rates is likely to provide a floor of support for rate-sensitive Financials. Merrill Lynch upgrading U.S. healthcare and U.S. consumer staples stocks to Overweight from Market Weight are also contributing to this morning's upbeat sentiment.
Note how Q and AAPL trend in the same direction
http://biz.yahoo.com/mu/update.html
4:20 pm : What was shaping up to be a very strong start to 2007 actually ended on a rather lackluster note, as diminishing hopes of a possible interest rate cut left the sustainability of a nearly six-month rally in stocks up for debate.
With U.S. markets closed Tuesday to commemorate the recent passing of President Ford, and equity markets rallying around the world, investors feeling left behind embraced upbeat corporate news, some positive analyst commentary, falling oil prices and the seasonality factor to get back into buying mode.
As a reminder, today marked the second-to-last trading day of the classic year-end Santa Claus rally which, according to the Stock Trader's Almanac, has resulted in an average return of 1.5% for the S&P 500 since 1950. In fact, an influx of new fund inflows that typically hit the market on the first day of trading for the month/quarter/year, as evidenced by the biggest volume in several weeks, provided an additional floor of market support.
After contracting for the first time in more than three years, the ISM index rebounding to 51.4 in December (from a sub-50 read in November) provided even more confirmation that manufacturing is holding up nicely, helping to alleviate the worst of recession fears. In fact, the report more than offset monthly ADP employment data that suggested Friday's closely-watched and more credible Dec. jobs report will disappoint.
Throw in Wal-Mart (WMT 47.50 +1.32) providing an additional vote of confidence about the health of the consumer, after saying December same-store sales rose more than expected, the surprise resignation of Home Depot (HD 41.12 +0.96) Chairman and CEO Robert Nardelli, and bargain hunters jumping at the chance to buy last year's worst performing Dow component, Intel (INTC 20.32 +0.07), and Wednesday had all the makings of a broad-based rally. Intel was up more than 3% at one point, providing a huge boost for the influential Tech sector.
Be that as it may, with the market pricing in the chances of a soft landing for the U.S. economy and an eventual Fed rate cut, investors already anxious about what the FOMC minutes from the December 12 meeting would say about inflation and the direction of Fed policy grew even more concerned in afternoon trading.
At 2:00 ET, investors sifted through a report showing that all Fed members agreed that the risk of inflation failing to moderate remained the "predominant concern." With the market even more preoccupied about the pace of economic growth, several policy makers also acknowledging that the "downside risks to economic growth in the near term had increased a little," with economic activity in the second half of this year probably "a touch softer than had been expected," also took a toll on overall sentiment. In fact, today's volatile action resulted in the biggest range for the Dow (175 points) since August 2006.
Oil prices posting their biggest one-day decline (-4.5%) since April 27, 2005 (-4.8%), was another source of support; but the subsequent absence of leadership in the Energy sector (-3.7%) also served as a reminder of how crucial profits from the likes of explorers, drillers, refiners and integrated oil companies are to the overall earnings picture. Crude for February delivery slipped below $59/bbl for the first time since November 24 and closed at $58.32/bbl after the National Weather Service called for warmer temperatures through the 15th of January in the U.S. Northeast, the largest customer of heating oil. DJ30 +11.37 NASDAQ +7.87 SP500 -1.70 NASDAQ Dec/Adv/Vol 1496/1624/2.30 bln NYSE Dec/Adv/Vol 1870/1863/2.24 bln
3:30 pm : Stocks bounce off session lows but continue to languish in negative territory. Further underscoring renewed skepticism about the sustainability of the second-half rally in equities has been continued deterioration in market breadth. Decliners, which were edging out advancers on the Nasdaq 45 minutes ago, now outpace advancing issues on the NYSE as well. As a reminder, the Dow has closed at new record highs more than 20 times since October and the S&P 500 is fresh off of posting its seventh straight monthly gain -- its longest winning streak in a decade. DJ30 -13.28 NASDAQ -6.71 SP500 -5.22 NASDAQ Dec/Adv/Vol 1813/1281/2.06 bln NYSE Dec/Adv/Vol 1960/1390/2.04 bln
3:00 pm : Sellers continue to show their resolve as industry leadership changes hands to favor the bears; seven out of 10 sectors are now posting losses. Energy continues to pace the way lower, but the absence of upside leadership from influential areas like Technology, Financials and Health Care are weighing even more heavily on the broader market. Adding to the market's recent struggles have been the indices' inability to find initial support near key technical levels of 12420, 1410 and 2400 on the Dow, S&P and Nasdaq, respectively.DJ30 -50.56 NASDAQ -18.58 SP500 -9.86 NASDAQ Dec/Adv/Vol 1733/1357/1.89 bln NYSE Dec/Adv/Vol 1773/3363/1.82 bln
2:30 pm : The major averages now trade in split fashion as a five-month rally predicated on the chances of the Fed engineering a soft landing for the U.S. economy comes into question following the FOMC Minutes. At the top of the hour, investors sifted through a report showing that all Fed members agreed that the risk of inflation failing to moderate remained the "predominant concern." With the market even more preoccupied about the pace of economic growth, several Fed members also acknowledging that the "downside risks to economic growth in the near term had increased a little," with economic activity in the second half of this year probably "a touch softer than had been expected" have also taken a toll on overall sentiment.DJ30 +13.29 NASDAQ -3.20 SP500 -2.75 NASDAQ Dec/Adv/Vol 1409/1676/1.62 bln NYSE Dec/Adv/Vol 1410/3475/1.56 bln
2:00 pm : Market continues to pare some of its gains as investors anxiously wait to see what the FOMC minutes from the Dec 12 meeting, which are due out momentarily, say about inflation and the direction of Fed policy. Even though the markets have priced in a high probability that policy makers will cut rates before getting back to tightening, that assumption could be undermined somewhat with the minutes since the details have the ability to alter policy expectations for the Fed's next meeting on January 30-31.DJ30 +62.24 NASDAQ +23.01 SP500 +3.88 NASDAQ Dec/Adv/Vol 1224/1843/1.48 bln NYSE Dec/Adv/Vol 1277/3439/1.40 bln
1:30 pm : Stocks continue to put together a solid advance but sellers have recently stepped in to leave the major averages at afternoon lows. With the Treasury market in a holding pattern ahead of today's FOMC Minutes (2:00 ET), the rate-sensitive Financials sector has seen its intraday gains nearly halved. Oil prices still off more than 4% continue to provide a floor of market support; but the subsequent absence of leadership in the Energy sector also serves as a reminder of how crucial profits from the likes of explorers, drillers, refiners and integrated oil companies are to the overall earnings picture.DJ30 +74.27 NASDAQ +28.76 SP500 +5.22 XOI -2.6% NASDAQ Dec/Adv/Vol 1136/1930/1.36 bln NYSE Dec/Adv/Vol 1212/3388/1.29 bln
1:00 pm : Stocks are retracing morning highs as oil prices hit fresh session lows. Crude for February delivery is now down more than 4.0% near $58.50/bbl. Aside from recent weather forecasts calling for mild temperatures possibly curbing the demand for heating oil there are already concerns among traders that tomorrow's weekly inventories report, which has been delayed by a day due to the New Year's holiday, will also show that the market remains well supplied. Oil prices are heading for their biggest one-day decline since Nov. 16., when the December contract plunged 4.3% to $56.26/bbl amid growing doubts that OPEC would live up to output cuts. DJ30 +106.99 NASDAQ +34.99 SP500 +9.04 NASDAQ Dec/Adv/Vol 1123/1943/1.26 bln NYSE Dec/Adv/Vol 1220/3220/1.18 bln
12:30 pm : The indices are off their best levels, but a bullish market breadth remains firmly intact. As reflected in the A/D line, advancers on the NYSE hold a nearly 3-to-1 margin over decliners while those on the Nasdaq enjoy a almost 2-to1 edge. Exacerbating today's widespread rally has been the indices' ability to break through key technical levels of 12542, 1424 and 2445 on the Dow, S&P 500 and Nasdaq, respectively.DJ30 +90.49 NASDAQ +30.45 SP500 +7.13 NASDAQ Dec/Adv/Vol 1102/1929/1.13 bln NYSE Dec/Adv/Vol 1142/3131/1.03 bln
12:00 pm : Stocks are trading near session highs midday as pent-up buying interest, seasonal factors, plunging oil prices and more evidence of a soft landing kick off 2007 on an upbeat note.
With U.S. markets closed yesterday, while equity markets rallied around the world, investors feeling left behind and an influx of new fund inflows that typically hit the market on the first day of trading for the month/quarter/year have provided the initial floor of market support.
After contracting for the first time in more than three years in November, the ISM index rebounding to 51.4 in December has provided more confirmation that manufacturing is holding up nicely, helping to alleviate the worst of recession fears. The report has more than offset monthly ADP employment data that suggest Friday's closely-watched and more credible Dec. jobs report will disappoint.
From a sector standpoint, Technology is today's runaway winner (+1.8%) as several of its most influential components (e.g. CSCO, INTC, GOOG, DELL, ORCL, and YHOO) post gains of more than 2.0%. Bargain hunting interest appears to be playing an added role behind the 3.0% surge in Intel (INTC 20.86 -0.61), last year's worst performing Dow component (-18%).
The Industrials sector is also providing some notable leadership with a gain of more than 1.0%. The unexpected increase in manufacturing activity is acting as the biggest source of sector support while Transports are benefiting from some analyst upgrades (e.g. CHRW, JBHT) and a 3.6% sell-off in oil prices. Oil, which accounts for roughly 30% of the costs for airlines (+4.3%), is trading below $59/bbl for the first time since November 24 due in large part to more warm weather forecasts.
Consumer Discretionary, which has been in focus and garnering support following the surprise resignation of Home Depot's (HD 41.46 +1.30) CEO, is also benefiting from oil's decline while Consumer Staples is getting a lift after Wal-Mart (WMT 47.56 +1.38) said that December same-store sales rose more than expected. Both are among the 25 Dow components trading higher today and lifting the blue-chip index to new all-time intraday highs. BTK +0.8% DJ30 +107.43 DJTA +2.6% DJUA +0.7% DOT +1.8% NASDAQ +34.95 NQ100 +1.7% R2K +0.9% SOX +1.9% SP400 +0.9% SP500 +9.28 XOI -2.1% NASDAQ Dec/Adv/Vol 1048/1978/1.03 bln NYSE Dec/Adv/Vol 1100/3055/930 mln
11:30 am : More of the same for stocks as the Nasdaq (+1.5%) continues to outpace its blue chip counterparts to the upside. With the tech-heavy Composite lagging the Dow and S&P 500 in 2006, which were up 16% and 14%, respectively, versus a 9.5% gain for the Nasdaq, it isn't all that surprising to see some bargain hunting interest take hold. Most notably has been a 2.8% surge in Intel (INTC 20.82 +0.57), which was the biggest laggard on the Dow Industrials last year with an 18% decline. Albeit posting an 11% gain in 2006, Google (GOOG 472.11 +11.63) surging 2.5% today, after Piper Jaffray raised their price target to $630 from $600 and rated the company their top pick for 2007, has investors jumping into another tech bellwether that is 8% off its all-time high of $513 (Nov. 22).DJ30 +110.97 DOT +1.6% NASDAQ +35.79 SP500 +9.33 NASDAQ Dec/Adv/Vol 992/1989/864 mln NYSE Dec/Adv/Vol 1098/2794/724 mln
11:00 am : Stocks are holding steady at sharply higher levels as buyers remain in complete control of the action. Crude for February delivery now down 3.8% and slipping below $59/bbl for the first time since Nov. 24 is providing an additional level of market support. The National Weather Service calling for warmer temperatures through the 15th of January in the U.S. Northeast (the largest customer of heating oil) raises concerns among commodity traders about diminishing demand for heating oil. Since oil make up roughly 60% of the costs for chemical companies, the Materials sector recently turning positive is also helping to offset further consolidation in the Energy sector (-4.1%). DJ30 +102.70 NASDAQ +33.91 SP500 +9.15 NASDAQ Dec/Adv/Vol 917/2037/730 mln NYSE Dec/Adv/Vol 1039/2705/604 mln
10:30 am : Equities extend their reach to the upside following an unexpected increase in manufacturing activity. After contracting for the first time in more than three years in November, the ISM index rebounded to 51.4 in December as a rise in new orders (to 52.1) and production (to 51.8) lend some additional support to an economy plagued by weakness in autos and housing. The prices paid index falling to 47.5%, coupled with a sell-off in oil prices (-3.2% at $59/bbl), also ease concerns on the inflation front. DJ30 +111.91 NASDAQ +32.14 SP500 +10.72 NASDAQ Dec/Adv/Vol 850/2051/516 mln NYSE Dec/Adv/Vol 1029/2427/400 mln
10:00 am : The major averages are still on the offensive as the bulk of industry leadership remains positive. Of the eight sectors trading higher, Technology is pacing the way as several of its most influential components (e.g. CSCO, INTC, GOOG, AAPL, DELL, and YHOO) post gains of at least 1.0%. Health Care is also providing some notable leadership, fueled in part by an analyst upgrade on Merck (MRK 44.16 +0.56), while the rate-sensitive Financials sector takes full advantage of a decline in borrowing costs amid a rally in the Treasury market. Energy, though, is plunging more than 3.0% in sympathy with a 2.1% in oil prices (to below $60/bbl) and a slew of analyst downgrades (e.g. XTO -2.8%, NBR -3.9%, HES -2.7%, SUN -2.1%).DJ30 +66.61 NASDAQ +21.08 SP500 +5.52 NASDAQ Dec/Adv/Vol 739/2003/220 mln NYSE Dec/Adv/Vol 763/1729/112 mln
09:40 am : Stocks kick off the first trading day of 2007 on a positive note. With U.S. markets closed yesterday, while equity markets rallied around the world, investors feeling left behind and an influx of new fund inflows that typically hit the market on the first day of trading for the month/quarter/year are adding to the bullish disposition. On the corporate front, Home Depot (HD 41.25 +1.07) surging nearly 3%, following the surprise resignation of Chairman and CEO Robert Nardelli, and a 4% rise on shares of larger Dow component Wal-Mart (WMT 48.05 +1.87), after saying December same-store sales rose more than expected, are also contributing to the improved sentiment after the last two trading days of 2006 ended in the red. Home Depot was one of last year's worst performing Dow components.DJ30 +78.06 NASDAQ +24.27 SP500 +6.23 NASDAQ Vol 122 mln NYSE Vol 80 mln
09:15 am : S&P futures vs fair value: +6.7. Nasdaq futures vs fair value: +13.0.
09:00 am : S&P futures vs fair value: +7.8. Nasdaq futures vs fair value: +15.0. Bullish bias persists in pre-market trading, and as such, expectations for the cash market to open higher remain intact. Aside from expected leadership coming from the Consumer Discretionary sector, following the surprise resignation of Home Depot’s CEO and amid further deterioration in oil prices (-1.4% at $60.20/bbl), a drop in interest rates is likely to provide a floor of support for rate-sensitive Financials. Merrill Lynch upgrading U.S. healthcare and U.S. consumer staples stocks to Overweight from Market Weight are also contributing to this morning's upbeat sentiment.
Note how Q and AAPL trend in the same direction
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