AI
Tuesday, January 09, 2007 9:26:57 PM
Market Update 070109
http://biz.yahoo.com/mu/update.html
4:20 pm : The major averages finished mixed Tuesday as investors weighed upbeat news from Apple and falling oil prices against renewed concerns that 13 straight quarters of double-digit profit growth for the S&P 500 may soon come to an end.
With earnings season officially kicking off tonight with the release of Alcoa's (AA 28.52 +0.04) Q4 report, and worries that profit forecasts may still be overly optimistic, the market exhibited a cautious tone from the opening bell to the close. In fact, the lack of conviction from both buyers and sellers was further underscored in today's market internals. Advancers on the NYSE held a slim 17-to-14 advantage over decliners while both advancing and declining issues on the Nasdaq were evenly matched.
There was one advancer on the tech-heavy Composite, however, that garnered added attention today and was the biggest reason behind the Nasdaq's ability to hold onto a modest gain -- Apple Computer (AAPL 92.57 +7.10). The stock, which attracted buyers all morning amid growing enthusiasm surrounding new product introductions at the MacWorld Expo, soared 8.3% to close at a new all-time high. After introducing Apple TV and announcing a movie partnership with Paramount, Apple CEO Steve Jobs finally unveiled the long-awaited mobile phone -- the latest "everything portable, everything digital" initiative which further supports our Overweight rating on Technology.
Turning in an even better performance than Tech, though, was Consumer Discretionary. News Corp (NWS 22.82 +0.41), a recommended holding in the Briefing.com Active Portfolio, surged nearly 2.0% toward a new multi-year high. A slew of retailers becoming more attractive at the expense of oil's continued pullback provided additional sector support.
After breaking through a key area of support at $55/bbl in early trade, and being down as much as 3.3% at 18-month lows ($54.25/bbl), another down day for oil helped alleviate thoughts about the commodity's potential to sustain inflation pressures and provided some relief for consumers. Everything from fund liquidations amid continued reduction of speculative excess to growing skepticism about OPEC production cuts weighed on oil.
Unfortunately for the bulls, the subsequent loss of leadership from the profit engine that has been Energy for so many quarters served as a reminder that earnings estimates for the likes of the Integrated Oil and Refining groups -- two of today's worst performing S&P indsutry groups -- will likely be revised lower.
Another one of last year's best performers succumbing to sector rotation amid earnings uncertainty was Telecom. Sprint Nextel (S 17.45 -2.19) tumbled 11% after guiding FY06 revenues below analysts' forecasts. The guidance, in turn, prompted multiple analyst downgrades. DJ30 -6.89 NASDAQ +5.63 NQ100 +0.5% SOX +0.7% SP500 -0.73 XOI -1.6% NASDAQ Dec/Adv/Vol 1562/1508/2.14 bln NYSE Dec/Adv/Vol 1453/1777/1.70 bln
3:30 pm : The market is still trading with a tinge of caution going into the close as the blue-chip indices and Nasdaq continue to trade in opposing directions. Of the 17 Dow components weighing on the price-weighted index, United Technologies (UTX 62.27 -0.92) and Boeing (BA 88.02 -0.92) are among the biggest laggards with declines of more than 1.0%. A nearly 8% surge on Apple Computer (AAPL 92.10 +6.63), meanwhile, continues to be the biggest reason behind the Nasdaq'a ability to hold onto a modest gain. DJ30 -11.85 NASDAQ +5.65 SP500 -0.83 NASDAQ Dec/Adv/Vol 1656/1414/1.79 bln NYSE Dec/Adv/Vol 1640/1575/1.35 bln
3:00 pm : Range-bound trading persists for stocks as investors lack notable catalysts to push the major averages more convincingly in either direction. A session of choppy trading in crude oil futures has come to an end now that the NYMEX is closed for the day, lending some explanation as to why the indices are still vacillating around the flat line. Investors may also be showing some reserve ahead of Alcoa's (AA 28.77 +0.29) Q4 report after the bell, which will officially kick off an earnings season that is expected to mark the end of 13 straight quarters of double-digit profit growth for the S&P 500. DJ30 -16.58 NASDAQ +3.33 SP500 -1.37 NASDAQ Dec/Adv/Vol 1720/1322/1.64 bln NYSE Dec/Adv/Vol 1653/1547/1.25 bln
12:30 pm : The major averages extend their reach to the downside as the afternoon session gets underway. Oil traders are paring their losses, leaving crude for February delivery down just 0.5% at $55.80/bbl. That is not only removing some of the relief tied to the commodity's adverse impact on consumption patterns, but the Energy sector failing to subsequently see more of a convincing recovery effort still leaves the sector down 1.3%. DJ30 -49.70 NASDAQ -12.71 SP500 -6.94 NASDAQ Dec/Adv/Vol 1863/1067/952 mln NYSE Dec/Adv/Vol 1967/1145/772 mln
12:00 pm : Stocks are hovering near session lows midday as a sell-off in oil removing notable leadership in the profit engine that is Energy overshadows the commodity's diminishing inflationary characteristics.
After breaking through a key area of support at $55/bbl, tumbling oil prices have been the market's main focus this morning. Crude for February delivery is down 2.8% near $54.40/bbl amid everything from warm weather easing supply concerns and Goldman Sachs lower its 2007 forecasts to a continued reduction of speculative excess and growing skepticism about OPEC production cuts.
However, with BP plc (BP 62.18 -2.11) saying Q4 production and profitability fell from a year earlier, oil prices now down 11% on the year also serve as a reminder that earnings estimates for the Energy sector (-1.7%) -- the engine behind double-digit profit growth for the S&P 500 for so many quarters -- will likely be revised lower. Thus, the subsequent loss of leadership in everything from explorers to refiners is weighing on sentiment.
With earnings season officially kicking off after the bell with Alcoa's (AA 28.30 -0.18) Q4 report, a handful of warnings is also reminding investors that profit forecasts may still be overly optimistic.
Sprint Nextel (S 17.62 -2.02) is the biggest name under the earnings microscope this morning. The wireless giant is tumbling 10% after guiding FY06 revenues below analyst forecasts, prompting multiple analyst downgrades and more consolidation in last year's best performing sector, Telecom (-1.3%). Meanwhile, Celgene (CELG 54.10 -3.20) warning that 2007 profit and sales targets will miss expectations is weighing on Biotech and, in turn, is offsetting some of the defensive characteristics of the Health Care sector.
Technology is among the only bright spots, but it is clinging to the smallest of gains that can largely be attributed to a 2.6% surge in Apple Computer (AAPL 87.70 +2.23). The stock continues to climb amid growing enthusiasm about new products expected to be introduced this afternoon in a keynote speech by CEO Steve Jobs at the MacWorld Expo. BTK -0.6% DJ30 -46.46 NASDAQ -6.70 R2K -0.8% SP400 -0.3% SP500 -6.12 XOI -2.3% NASDAQ Dec/Adv/Vol 1791/1110/806 mln NYSE Dec/Adv/Vol 1809/1249/662 mln
11:30 am : A renewed wave of selling interest within the last 15 minutes spikes the major averages to their worst levels of the morning. Fortunately for the bulls, losses are minimal and much of the pullback can be attributed to further deterioration in the Energy sector (-1.7%) in sympathy with the sell-off in oil prices, which is bullish for stocks overall. Dow component Exxon Mobil (XOM 71.86 -0.78), which is also the most heavily weighted constituent on the S&P 500, is retracing session lows (-1.1%) and acting as one of the broader market's biggest constraints.DJ30 -25.08 NASDAQ -2.73 SP500 -3.48 XOI -2.1% NASDAQ Dec/Adv/Vol 1607/1244/660 mln NYSE Dec/Adv/Vol 1519/1487/546 mln
11:00 am : More of the same for stocks as the Nasdaq continues to outpace its blue-chip counterparts to the upside. Plummeting oil prices continue to be the main focal point, providing a floor of support for growth stocks but minimizing gains on the Dow and S&P 500 since so many influential constituents are tied to Energy. Of the more than 30 components that make up the Energy sector (-1.3%), none of which are listed on the Nasdaq, all of them are under pressure this morning as oil prices trading at session lows just above $54/bbl diminish the sector's earnings potential. Oil is down nearly 3.0% today but down 11% just five trading sessions into the New Year. DJ30 +20.22 NASDAQ +8.70 SOX +0.6% SP500 +1.47 NASDAQ Dec/Adv/Vol 1445/1349/514 mln NYSE Dec/Adv/Vol 1436/1507/426 mln
10:30 am : The indices are bouncing off session lows, but modest gains still offer little conviction on the part of buyers. After briefly slipping into the red, turnarounds in Financials and Health Care are lending some support. Technology's ability to pace this morning's gains, without any leadership from semiconductors, is even more noteworthy. Apple Computer (AAPL 86.73 +1.26) is surging 1.5% to intraday highs ahead of a keynote speech by CEO Steve Jobs at the MacWorld Expo. Consumer Discretionary is also providing some leadership as retailers become more attractive at the expense of oil's 2.7% decline. ..RLX +0.7%.DJ30 +23.67 NASDAQ +5.78 SOX -0.1% SP500 +1.69 NASDAQ Dec/Adv/Vol 1588/1105/330 mln NYSE Dec/Adv/Vol 1635/1220/276 mln
10:00 am : After briefly dipping below the flat line, the S&P 500 and Nasdaq inch back into the green. Oil prices bouncing off their worst levels, now down 2.3% at $54.80/bbl, have helped the Energy sector (-0.9%) nearly halve its early declines. However, the lack of any upside momentum from Financials and Health Care, coupled with paltry 0.1% gains in Technology and Industrials, leaves the door open for sellers to keep chipping away at recent gains. DJ30 +14.70 NASDAQ +2.32 SP500 +0.12 NASDAQ Dec/Adv/Vol 1358/1164/168 mln NYSE Dec/Adv/Vol 1252/1454/118 mln
09:40 am : As expected, stocks open on an upbeat note as investors embrace another sell-off in oil prices. After breaking through a key area of support at $55/bbl, crude for February is down 3% at $54.40/bbl amid everything from warm weather easing supply concerns to a continued reduction of speculative excess. While oil at 18-month lows bodes wells for consumers and corporate profitability for some sectors, it is worth noting that early market gains are modest at best since an ensuing sell-off in the large profit engine that is the Energy sector (-1.6%) removes some notable leadership.DJ30 +17.16 NASDAQ +3.11 SP500 +0.68 XOI -1.7% NASDAQ Vol 80 mln NYSE Vol 46 mln
09:15 am : S&P futures vs fair value: +2.0. Nasdaq futures vs fair value: +2.8.
09:00 am : S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +3.8. A positive bias continues to hold in the futures trade, which should translate into a higher open for the indices. Tumbling oil prices remain the primary source of early support for investors. However, with BP plc (BP) saying Q4 production and profitability fell from a year earlier, further deterioration in oil also serves as a reminder that earnings estimates for the engine behind double-digit profit growth for the S&P 500 for so many quarters (Energy) will likely be revised lower. Thus, the subsequent loss of leadership throughout the Energy sector today may act as somewhat of an offset and minimize blue-chip gains.
08:30 am : S&P futures vs fair value: +2.3. Nasdaq futures vs fair value: +3.8. Still shaping up to be a positive start for stocks as both the S&P 500 and Nasdaq 100 futures continue to trade above fair value. With economic reports of late curbing enthusiasm about the possibility of an interest rate cut early this year, the absence of any potentially troubling data this morning is offering investors an added sense of relief already buoyed by the sell-off in oil. Crude for February is now down 3.6% and close to breaking through $54/bbl.
08:00 am : S&P futures vs fair value: +2.9. Nasdaq futures vs fair value: +4.0. Early indications suggest yesterday's modest buying efforts may carry over into this morning's open. Oil prices plunging more than 3% and falling below a key support level of $55/bbl is the most noticeable reason behind the positive disposition. Reports that Dow component General Electric (GE) may garner as much as $10 bln for its plastics unit and mounting anticipation to see what new products Apple Computer (AAPL) introduces at the MacWorld Expo today are providing additional sources of support.
06:16 am : FTSE...6214.90...+20.70...+0.3%. DAX...6656.68...+49.09...+0.7%.
http://biz.yahoo.com/mu/update.html
4:20 pm : The major averages finished mixed Tuesday as investors weighed upbeat news from Apple and falling oil prices against renewed concerns that 13 straight quarters of double-digit profit growth for the S&P 500 may soon come to an end.
With earnings season officially kicking off tonight with the release of Alcoa's (AA 28.52 +0.04) Q4 report, and worries that profit forecasts may still be overly optimistic, the market exhibited a cautious tone from the opening bell to the close. In fact, the lack of conviction from both buyers and sellers was further underscored in today's market internals. Advancers on the NYSE held a slim 17-to-14 advantage over decliners while both advancing and declining issues on the Nasdaq were evenly matched.
There was one advancer on the tech-heavy Composite, however, that garnered added attention today and was the biggest reason behind the Nasdaq's ability to hold onto a modest gain -- Apple Computer (AAPL 92.57 +7.10). The stock, which attracted buyers all morning amid growing enthusiasm surrounding new product introductions at the MacWorld Expo, soared 8.3% to close at a new all-time high. After introducing Apple TV and announcing a movie partnership with Paramount, Apple CEO Steve Jobs finally unveiled the long-awaited mobile phone -- the latest "everything portable, everything digital" initiative which further supports our Overweight rating on Technology.
Turning in an even better performance than Tech, though, was Consumer Discretionary. News Corp (NWS 22.82 +0.41), a recommended holding in the Briefing.com Active Portfolio, surged nearly 2.0% toward a new multi-year high. A slew of retailers becoming more attractive at the expense of oil's continued pullback provided additional sector support.
After breaking through a key area of support at $55/bbl in early trade, and being down as much as 3.3% at 18-month lows ($54.25/bbl), another down day for oil helped alleviate thoughts about the commodity's potential to sustain inflation pressures and provided some relief for consumers. Everything from fund liquidations amid continued reduction of speculative excess to growing skepticism about OPEC production cuts weighed on oil.
Unfortunately for the bulls, the subsequent loss of leadership from the profit engine that has been Energy for so many quarters served as a reminder that earnings estimates for the likes of the Integrated Oil and Refining groups -- two of today's worst performing S&P indsutry groups -- will likely be revised lower.
Another one of last year's best performers succumbing to sector rotation amid earnings uncertainty was Telecom. Sprint Nextel (S 17.45 -2.19) tumbled 11% after guiding FY06 revenues below analysts' forecasts. The guidance, in turn, prompted multiple analyst downgrades. DJ30 -6.89 NASDAQ +5.63 NQ100 +0.5% SOX +0.7% SP500 -0.73 XOI -1.6% NASDAQ Dec/Adv/Vol 1562/1508/2.14 bln NYSE Dec/Adv/Vol 1453/1777/1.70 bln
3:30 pm : The market is still trading with a tinge of caution going into the close as the blue-chip indices and Nasdaq continue to trade in opposing directions. Of the 17 Dow components weighing on the price-weighted index, United Technologies (UTX 62.27 -0.92) and Boeing (BA 88.02 -0.92) are among the biggest laggards with declines of more than 1.0%. A nearly 8% surge on Apple Computer (AAPL 92.10 +6.63), meanwhile, continues to be the biggest reason behind the Nasdaq'a ability to hold onto a modest gain. DJ30 -11.85 NASDAQ +5.65 SP500 -0.83 NASDAQ Dec/Adv/Vol 1656/1414/1.79 bln NYSE Dec/Adv/Vol 1640/1575/1.35 bln
3:00 pm : Range-bound trading persists for stocks as investors lack notable catalysts to push the major averages more convincingly in either direction. A session of choppy trading in crude oil futures has come to an end now that the NYMEX is closed for the day, lending some explanation as to why the indices are still vacillating around the flat line. Investors may also be showing some reserve ahead of Alcoa's (AA 28.77 +0.29) Q4 report after the bell, which will officially kick off an earnings season that is expected to mark the end of 13 straight quarters of double-digit profit growth for the S&P 500. DJ30 -16.58 NASDAQ +3.33 SP500 -1.37 NASDAQ Dec/Adv/Vol 1720/1322/1.64 bln NYSE Dec/Adv/Vol 1653/1547/1.25 bln
12:30 pm : The major averages extend their reach to the downside as the afternoon session gets underway. Oil traders are paring their losses, leaving crude for February delivery down just 0.5% at $55.80/bbl. That is not only removing some of the relief tied to the commodity's adverse impact on consumption patterns, but the Energy sector failing to subsequently see more of a convincing recovery effort still leaves the sector down 1.3%. DJ30 -49.70 NASDAQ -12.71 SP500 -6.94 NASDAQ Dec/Adv/Vol 1863/1067/952 mln NYSE Dec/Adv/Vol 1967/1145/772 mln
12:00 pm : Stocks are hovering near session lows midday as a sell-off in oil removing notable leadership in the profit engine that is Energy overshadows the commodity's diminishing inflationary characteristics.
After breaking through a key area of support at $55/bbl, tumbling oil prices have been the market's main focus this morning. Crude for February delivery is down 2.8% near $54.40/bbl amid everything from warm weather easing supply concerns and Goldman Sachs lower its 2007 forecasts to a continued reduction of speculative excess and growing skepticism about OPEC production cuts.
However, with BP plc (BP 62.18 -2.11) saying Q4 production and profitability fell from a year earlier, oil prices now down 11% on the year also serve as a reminder that earnings estimates for the Energy sector (-1.7%) -- the engine behind double-digit profit growth for the S&P 500 for so many quarters -- will likely be revised lower. Thus, the subsequent loss of leadership in everything from explorers to refiners is weighing on sentiment.
With earnings season officially kicking off after the bell with Alcoa's (AA 28.30 -0.18) Q4 report, a handful of warnings is also reminding investors that profit forecasts may still be overly optimistic.
Sprint Nextel (S 17.62 -2.02) is the biggest name under the earnings microscope this morning. The wireless giant is tumbling 10% after guiding FY06 revenues below analyst forecasts, prompting multiple analyst downgrades and more consolidation in last year's best performing sector, Telecom (-1.3%). Meanwhile, Celgene (CELG 54.10 -3.20) warning that 2007 profit and sales targets will miss expectations is weighing on Biotech and, in turn, is offsetting some of the defensive characteristics of the Health Care sector.
Technology is among the only bright spots, but it is clinging to the smallest of gains that can largely be attributed to a 2.6% surge in Apple Computer (AAPL 87.70 +2.23). The stock continues to climb amid growing enthusiasm about new products expected to be introduced this afternoon in a keynote speech by CEO Steve Jobs at the MacWorld Expo. BTK -0.6% DJ30 -46.46 NASDAQ -6.70 R2K -0.8% SP400 -0.3% SP500 -6.12 XOI -2.3% NASDAQ Dec/Adv/Vol 1791/1110/806 mln NYSE Dec/Adv/Vol 1809/1249/662 mln
11:30 am : A renewed wave of selling interest within the last 15 minutes spikes the major averages to their worst levels of the morning. Fortunately for the bulls, losses are minimal and much of the pullback can be attributed to further deterioration in the Energy sector (-1.7%) in sympathy with the sell-off in oil prices, which is bullish for stocks overall. Dow component Exxon Mobil (XOM 71.86 -0.78), which is also the most heavily weighted constituent on the S&P 500, is retracing session lows (-1.1%) and acting as one of the broader market's biggest constraints.DJ30 -25.08 NASDAQ -2.73 SP500 -3.48 XOI -2.1% NASDAQ Dec/Adv/Vol 1607/1244/660 mln NYSE Dec/Adv/Vol 1519/1487/546 mln
11:00 am : More of the same for stocks as the Nasdaq continues to outpace its blue-chip counterparts to the upside. Plummeting oil prices continue to be the main focal point, providing a floor of support for growth stocks but minimizing gains on the Dow and S&P 500 since so many influential constituents are tied to Energy. Of the more than 30 components that make up the Energy sector (-1.3%), none of which are listed on the Nasdaq, all of them are under pressure this morning as oil prices trading at session lows just above $54/bbl diminish the sector's earnings potential. Oil is down nearly 3.0% today but down 11% just five trading sessions into the New Year. DJ30 +20.22 NASDAQ +8.70 SOX +0.6% SP500 +1.47 NASDAQ Dec/Adv/Vol 1445/1349/514 mln NYSE Dec/Adv/Vol 1436/1507/426 mln
10:30 am : The indices are bouncing off session lows, but modest gains still offer little conviction on the part of buyers. After briefly slipping into the red, turnarounds in Financials and Health Care are lending some support. Technology's ability to pace this morning's gains, without any leadership from semiconductors, is even more noteworthy. Apple Computer (AAPL 86.73 +1.26) is surging 1.5% to intraday highs ahead of a keynote speech by CEO Steve Jobs at the MacWorld Expo. Consumer Discretionary is also providing some leadership as retailers become more attractive at the expense of oil's 2.7% decline. ..RLX +0.7%.DJ30 +23.67 NASDAQ +5.78 SOX -0.1% SP500 +1.69 NASDAQ Dec/Adv/Vol 1588/1105/330 mln NYSE Dec/Adv/Vol 1635/1220/276 mln
10:00 am : After briefly dipping below the flat line, the S&P 500 and Nasdaq inch back into the green. Oil prices bouncing off their worst levels, now down 2.3% at $54.80/bbl, have helped the Energy sector (-0.9%) nearly halve its early declines. However, the lack of any upside momentum from Financials and Health Care, coupled with paltry 0.1% gains in Technology and Industrials, leaves the door open for sellers to keep chipping away at recent gains. DJ30 +14.70 NASDAQ +2.32 SP500 +0.12 NASDAQ Dec/Adv/Vol 1358/1164/168 mln NYSE Dec/Adv/Vol 1252/1454/118 mln
09:40 am : As expected, stocks open on an upbeat note as investors embrace another sell-off in oil prices. After breaking through a key area of support at $55/bbl, crude for February is down 3% at $54.40/bbl amid everything from warm weather easing supply concerns to a continued reduction of speculative excess. While oil at 18-month lows bodes wells for consumers and corporate profitability for some sectors, it is worth noting that early market gains are modest at best since an ensuing sell-off in the large profit engine that is the Energy sector (-1.6%) removes some notable leadership.DJ30 +17.16 NASDAQ +3.11 SP500 +0.68 XOI -1.7% NASDAQ Vol 80 mln NYSE Vol 46 mln
09:15 am : S&P futures vs fair value: +2.0. Nasdaq futures vs fair value: +2.8.
09:00 am : S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +3.8. A positive bias continues to hold in the futures trade, which should translate into a higher open for the indices. Tumbling oil prices remain the primary source of early support for investors. However, with BP plc (BP) saying Q4 production and profitability fell from a year earlier, further deterioration in oil also serves as a reminder that earnings estimates for the engine behind double-digit profit growth for the S&P 500 for so many quarters (Energy) will likely be revised lower. Thus, the subsequent loss of leadership throughout the Energy sector today may act as somewhat of an offset and minimize blue-chip gains.
08:30 am : S&P futures vs fair value: +2.3. Nasdaq futures vs fair value: +3.8. Still shaping up to be a positive start for stocks as both the S&P 500 and Nasdaq 100 futures continue to trade above fair value. With economic reports of late curbing enthusiasm about the possibility of an interest rate cut early this year, the absence of any potentially troubling data this morning is offering investors an added sense of relief already buoyed by the sell-off in oil. Crude for February is now down 3.6% and close to breaking through $54/bbl.
08:00 am : S&P futures vs fair value: +2.9. Nasdaq futures vs fair value: +4.0. Early indications suggest yesterday's modest buying efforts may carry over into this morning's open. Oil prices plunging more than 3% and falling below a key support level of $55/bbl is the most noticeable reason behind the positive disposition. Reports that Dow component General Electric (GE) may garner as much as $10 bln for its plastics unit and mounting anticipation to see what new products Apple Computer (AAPL) introduces at the MacWorld Expo today are providing additional sources of support.
06:16 am : FTSE...6214.90...+20.70...+0.3%. DAX...6656.68...+49.09...+0.7%.
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