AI
Wednesday, January 10, 2007 7:00:36 PM
Market Update 070110
http://biz.yahoo.com/mu/update.html
4:20 pm : After struggling to find direction for most of the session, some afternoon buying interest, buoyed by another mass exodus out of oil and fears of missing out on an extended tech rally, helped all three major averages close modestly higher.
While lower oil prices are certainly good for the economy, as they've substantially reduced overall consumer price inflation of late, lingering concerns that diminishing demand for crude may foreshadow even weaker than expected economic growth acted as an offset to oil's continued downturn. After tumbling as much as 3.6%, as larger than expected builds in gasoline and distillate supplies continued to ease supply concerns, crude for February delivery closed down 2.9% at $54.02/bbl. That was the first time oil closed below $55/bbl since June 2005.
Another cautious-sounding statement out of the Energy sector (-1.6%) also contributed to the lack of leadership from one of the biggest contributors to aggregate earnings growth on the S&P 500 for several quarters that minimized blue-chip gains. Chevron (CVX 69.41 -1.22) said Q4 will be adversely affected relative to its record Q3 results, serving as the latest reminder that earnings estimates for other energy names will likely be revised lower.
The inability by economically-sensitive transportation stocks to take full advantage of another sell-off in oil also lent some credibility to concerns about diminishing demand for crude being a result of weaker than expected economic growth. In fact, airlines were among the only transports attracting buyers, but that was largely due to US Airways (LCC 58.90 +1.00) raising its hostile bid for Delta by 25% to $10.2 bln.
Aside from M&A activity, Alcoa (AA 29.61 +1.09) kicking off the Q4 earnings season Tuesday night on a solid note, topping Wall Street forecasts, was another positive. Even though Alcoa is not a bellwether for overall earnings trends, a 6.0% advance on today's best performing Dow component left Aluminum as today's best performing S&P industry group.
Turning in the second best performance on the Dow was Intel (INTC 21.52 +0.49) whose 2.3% advance helped lift the influential Tech sector's 2007 gain to nearly 3% just six trading days into the new year. Intel is providing chips for the recently introduced Apple TV. Sizable gains in two companies believed to be beneficiaries of Apple's iPhone -- Marvell Technology Group (MRVL 20.88 +1.15) and Nvidia (NVDA 34.90 +1.65) -- prompted even more rotation out of areas like Energy and into Tech, which Briefing.com rates as "Overweight." Meanwhile, Apple (AAPL 96.80 +4.23) tacked a 4.6% gain onto yesterday's 8% rally to close at a new all-time high following upbeat analyst commentary and several price target increases.
Consumer Staples was another bright spot for investors after Dow component Altria Group (MO 89.19 +1.07) surged 1.2% to a fresh all-time high, as investors continue to find value tied to the upcoming spin-off of its stake in Kraft. BTK +0.6% DJ30 +25.56 DJTA +0.2% DJUA +0.1% DOT +0.3% NASDAQ +15.50 NQ100 +1.1% R2K +0.1% SOX +1.8% SP400 +0.3% SP500 +2.74 XOI -1.7% NASDAQ Dec/Adv/Vol 1539/1493/2.15 bln NYSE Dec/Adv/Vol 1638/1640/1.45 bln
3:30 pm : More of the same for equities as the Nasdaq continues to turn in a better performance than its blue-chip peers going into the close. Thus, of the nine sectors trading higher, it's not surprising to see Technology (+0.7%) leading the charge. The Materials sector (+0.6%) is a close second, as Alcoa's (AA 30.22 +1.70) strong Q4 results helps to earmark Aluminum as today's best performing S&P industry group (+6.0%).DJ30 +28.92 NASDAQ +14.07 SP500 +3.08 NASDAQ Dec/Adv/Vol 1587/1411/1.86 bln NYSE Dec/Adv/Vol 1744/1476/1.22 bln
3:00 pm : Stocks regain some upward momentum since the last update, lifting the indices to fresh session highs. Crude oil prices recently closing below $55/bbl for the first time since June 2005, actually settling near $54/bbl, remains the driving factor behind this afternoon's market recovery. Be that as it may, it is worth noting that negative market breadth continues to lend little conviction on the part of buyers, suggesting that most of today's modest market gains can be attributed to strength from a handful of large-cap names (e.g. PG +1.1%, MO +1.3%, INTC +2.0%, AAPL 4.1%, HD +1.3%, QCOM +1.0%, YHOO +3.3%, SUNW +4.7%, S +1.6%, TXN +1.7% and AA +5.8%). DJ30 +26.52 NASDAQ +11.56 SP500 +2.60 NASDAQ Dec/Adv/Vol 1657/1329/1.72 bln NYSE Dec/Adv/Vol 1853/1366/1.12 bln
2:30 pm : The major averages are off their best levels but continue to sport modest gains. Turning in today's best performance among the most closely-watched indices, though, is the Nasdaq 100 (+0.8%). A 3.5% surge in Apple (AAPL 95.85 +3.28) is providing the bulk of support, while gains of more than 5.0% are also being enjoyed by Marvell Technology Group (MRVL 20.82 +1.09) and Nvidia (NVDA 34.95 +1.70), which are believed to be beneficiaries of Apple's iPhone. XM Satellite Radio (XMSR 16.72 +1.60) is pacing the way with a 10.6% advance, after Citigroup raised their price target to $21 from $16, while Sears Holding (SHLD 170.32 +4.09), after raising its Q4 and full-year profit outlook, is also a notable gainer. DJ30 +11.30 NASDAQ +6.53 SP500 +0.75 NASDAQ Dec/Adv/Vol 1669/1299/1.57 bln NYSE Dec/Adv/Vol 1880/1337/1.02 bln
2:00 pm : Buyers continue to show their resolve as recovery efforts help the indices try to abandon their neutral stance. Oil prices recently breaking through $54/bbl (-3.3%), and a simultaneous turnaround in the influential Financials sector, have been the big reasons behind the Dow and S&P 500 turning positive for the first time today. The Energy sector’s ability to again show some resilience in the face of plunging oil prices is also noteworthy. Energy (-1.1%) is now the only sector in the red. However, respectable gains of roughly 0.4% for Tech, Consumer Discretionary and Staples are the driving forces behind the market's recent improvement. DJ30 +18.67 NASDAQ +7.79 SOX +0.9% SP500 +1.95 NASDAQ Dec/Adv/Vol 1726/1239/1.42 bln NYSE Dec/Adv/Vol 1927/1225/928 mln
1:30 pm : The market has inched higher since the last update, but all three indices still vacillate around the unchanged mark. While the number of sectors trading higher (6) outnumber those trading lower (4) for the first time today, it is also worth noting that gains/losses only average about 0.1% to 0.2% for every sector, excluding Energy (-1.4%). DJ30 -6.81 NASDAQ +2.97 SP500 -1.35 NASDAQ Dec/Adv/Vol 1719/1221/1.26 bln NYSE Dec/Adv/Vol 1973/1226/840 mln
1:00 pm : Stocks remain mired in relatively tight trading ranges, showing little reaction to recent testimony from Chicago Fed President Moskow. Moskow, who is a voting Fed member this year, said 30 minutes ago that he remains optimistic the economy will pick up in coming months and return to its potential growth rate of around 3.0%, also noting that housing is not spilling over into broader economy. However, with the threat of higher inflation still Moskow's "predominant concern," his mixed remarks have done little to help set a more definitive tone to today's lackluster trading action. DJ30 -20.35 NASDAQ +0.86 SP500 -1.61 NASDAQ Dec/Adv/Vol 1798/1131/1.16 bln NYSE Dec/Adv/Vol 2079/1104/770 mln
12:30 pm : No real change in sentiment as traders make their way through the New York lunch hour. The hesitation on the part of buyers, as the Nasdaq clings to the smallest of gains, is further evidenced in negative market internals. As reflected in the A/D line, decliners hold a 17-to-11 margin over advancers on the tech-heavy Composite while those on the NYSE hold a 2-to-1 edge. Down volume also outpacing down volume by a healthy margin at both the Big Board and Composite further underscores the developing nervousness amongst investors. DJ30 -21.39 NASDAQ +1.24 SP500 -2.46 NASDAQ Dec/Adv/Vol 1719/1167/1.01 bln NYSE Dec/Adv/Vol 2053/1079/670 mln
12:00 pm : Stocks are trading with a sense of caution midday as plunging oil prices continue to play havoc with investor psyche. Market participants are also showing some reserve ahead of testimony about the economic outlook from Chicago Fed President Moskow at 12:30 ET.
While lower oil prices are certainly good for the economy, substantially reducing overall consumer price inflation, lingering concerns that diminishing demand for crude may foreshadow even weaker than expected economic growth is acting as an offset to oil's continued downturn. Crude for February delivery is down 2.0% at $54.50/bbl following much larger than expected builds in gasoline and distillate supplies. Another warning in the Energy sector (-1.8%) is also contributing to the lack of leadership from one of the biggest contributors to aggregate earnings growth on the S&P 500 for several quarters. Chevron (CVX 69.12 -1.51) is down more than 2.0% after saying Q4 will be adversely affected relative to its record Q3 results.
Of the five other sectors trading lower, the most influential S&P 500 sector -- Financials -- turning in the day's second worst performance also remains an obstacle for the bulls to overcome.
On a positive note, Alcoa (AA 29.61 +1.09) kicked off the Q4 earnings season last night on a solid note after topping Wall Street forecasts. The Dow component is up 3.8%. However, since Alcoa is not a bellwether for overall earnings trends and the Q4 season doesn't pick up in earnest until next week, buyers remain worried that last year's second-half rally left stocks overextended when faced with the likelihood of a slower rate of earnings growth this year.
As evidenced by the Nasdaq clinging to a small gain, Technology remains the best story so far in 2007. The sector is getting the bulk of its support from hardware (HWI +1.2%), especially a 5.2% surge in Apple (AAPL 97.38 +4.81) following upbeat analyst commentary and several price target increases. Relative strength in chip stocks is also lending some support, especially from Dow component Intel (INTC 21.22 +0.19), which is reportedly slated to make the CPU for Apple's iPhone. With IBM (IBM 98.27 -1.80) hitting multi-year highs yesterday, however, AG Edwards downgrading the Dow component on valuation concerns may leave investors questioning the sustainability of strong gains in other tech names.DJ30 -20.71 NASDAQ +1.27 SOX +0.5% SP500 -2.37 NASDAQ Dec/Adv/Vol 1695/1155/902 mln NYSE Dec/Adv/Vol 2069/1028/580 mln
11:30 am : Not much has changed since the last update as the major averages continue to trade in split fashion. Energy's recent recovery efforts, however, are short lived as the sector slips to its worst levels of the day (-1.7%). The absence of upside leadership from even more influential areas like Financials, Health Care and Industrials is also overshadowing carryover momentum in Technology. DJ30 -23.71 NASDAQ +2.43 SOX +0.4% SP500 -2.85 XOI -2.0% NASDAQ Dec/Adv/Vol 1618/1202/760 mln NYSE Dec/Adv/Vol 2009/1050/492 mln
11:00 am : Buyers continue to trickle in from the sidelines as investors become more bullish about the positive impact of lower oil prices on the economy. Oil prices still languishing near session lows (-2.4%) and Energy's resilience (-0.5%), as evidenced by the sector attracting some bargain-hunting interest within the last 30 minutes, is offering some reassurance about the sustainability of the second-half rally in stocks.
Also noteworthy have been turnarounds in Consumer Discretionary, as retailers become more attractive at the expense of oil's pullback, and Technology. The latter is getting the bulk of its support from hardware (HWI +0.9%), especially a 3.8% surge in Apple (AAPL 96.07 +3.50), while renewed enthusiasm for chip stocks provides additional support. The PHLX Semiconductor Sector Index has turned positive, getting a lift from a 1.1% surge in Dow component Intel (INTC 21.26 +0.23), which is reportedly slated to make the CPU for Apple's iPhone. DJ30 -13.54 NASDAQ +2.98 SOX +0.6% SP500 -1.08 NASDAQ Dec/Adv/Vol 1506/1247/596 mln NYSE Dec/Adv/Vol 1983/1030/378 mln
10:30 am : All three major averages have more than halved their intraday losses since the last update. Further deterioration in oil prices is the most noticeable catalyst for the market's recent recovery efforts. Crude for February delivery is now down 2.2% at $54.40/bbl amid concerns among commodity traders that the weekly inventory report, which will be out momentarily, will show a large build in stockpiles. Energy (-0.9%) barely budging in response to oil's latest move to the downside also helps to alleviate renewed concerns about the sector's potential to still generate solid earnings growth. DJ30 -20.58 NASDAQ -3.09 SP500 -2.37 NASDAQ Dec/Adv/Vol 1697/934/388 mln NYSE Dec/Adv/Vol 2068/846/236 mln
10:00 am : The blue-chip indices extend their reach to the downside as all 10 sectors are now in negative territory. With the mass exodus out of oil just six trading days into the New Year, Energy not surprisingly is pacing the way lower (-0.9%). Aside from oil's 1.1% slide this morning ahead of upcoming weekly inventories data, the Energy sector is under additional pressure amid more earnings uncertainty. Chevron (CVX 69.70 -0.93) saying Q4 will be adversely affected relative to its record Q3 results serves as the latest reminder that earnings estimates for other energy names will likely be revised lower.
Following upbeat analyst commentary and several price target increases, Apple Inc. (AAPL 94.74 +2.17) tacking a 2.3% gain onto yesterday's 8% rally to a new all-time high is helping the Nasdaq bounce off morning lows; but the tech-heavy Composite is still languishing below the flat line. DJ30 -50.75 NASDAQ -8.16 SP500 -5.91 NASDAQ Dec/Adv/Vol 1778/706/188 mln NYSE Dec/Adv/Vol 2074/602/86 mln
09:40 am : As futures trade presaged, stocks open lower across the board as huge losses in foreign markets exacerbate valuation concerns and overshadow a solid start to earnings season. Kicking things off last night was Alcoa (AA 29.56 +1.04), which topped Wall Street forecasts. The Dow component is up 3.6% as a nearly 60% year/year rise in Q4 earnings lends some optimism for the S&P 500 to extend its streak of double-digit growth to 14 straight quarters. However, since Alcoa is not a bellwether for overall earnings trends and the Q4 season doesn't pick up in earnest until next week, buyers remain on the sidelines amid worries last year's second-half rally left it overextended when faced with the likelihood of a slower rate of earnings growth this year. DJ30 -40.77 NASDAQ -13.54 SP500 -5.71 NASDAQ Vol 82 mln NYSE Vol 50 mln
09:15 am : S&P futures vs fair value: -5.7. Nasdaq futures vs fair value: -8.5.
09:00 am : S&P futures vs fair value: -5.6. Nasdaq futures vs fair value: -8.2. Futures indications are showing some improvement since the last update but still maintain a negative bias, suggesting stocks will open lower. Oil selling off again, down 1% near $55/bbl amid concerns that today's weekly inventory report (10:30 ET) will show a large build in stockpiles, is providing some support. However, with investors more preoccupied with the pace of economic growth than easing inflation pressures, attributing lower demand for crude to a weak economy and digesting another warning in the Energy sector, the subsequent loss of leadership throughout Energy may again act as an offset. Chevron (CVX) said Q4 will be adversely affected relative to its record Q3 results.
http://biz.yahoo.com/mu/update.html
4:20 pm : After struggling to find direction for most of the session, some afternoon buying interest, buoyed by another mass exodus out of oil and fears of missing out on an extended tech rally, helped all three major averages close modestly higher.
While lower oil prices are certainly good for the economy, as they've substantially reduced overall consumer price inflation of late, lingering concerns that diminishing demand for crude may foreshadow even weaker than expected economic growth acted as an offset to oil's continued downturn. After tumbling as much as 3.6%, as larger than expected builds in gasoline and distillate supplies continued to ease supply concerns, crude for February delivery closed down 2.9% at $54.02/bbl. That was the first time oil closed below $55/bbl since June 2005.
Another cautious-sounding statement out of the Energy sector (-1.6%) also contributed to the lack of leadership from one of the biggest contributors to aggregate earnings growth on the S&P 500 for several quarters that minimized blue-chip gains. Chevron (CVX 69.41 -1.22) said Q4 will be adversely affected relative to its record Q3 results, serving as the latest reminder that earnings estimates for other energy names will likely be revised lower.
The inability by economically-sensitive transportation stocks to take full advantage of another sell-off in oil also lent some credibility to concerns about diminishing demand for crude being a result of weaker than expected economic growth. In fact, airlines were among the only transports attracting buyers, but that was largely due to US Airways (LCC 58.90 +1.00) raising its hostile bid for Delta by 25% to $10.2 bln.
Aside from M&A activity, Alcoa (AA 29.61 +1.09) kicking off the Q4 earnings season Tuesday night on a solid note, topping Wall Street forecasts, was another positive. Even though Alcoa is not a bellwether for overall earnings trends, a 6.0% advance on today's best performing Dow component left Aluminum as today's best performing S&P industry group.
Turning in the second best performance on the Dow was Intel (INTC 21.52 +0.49) whose 2.3% advance helped lift the influential Tech sector's 2007 gain to nearly 3% just six trading days into the new year. Intel is providing chips for the recently introduced Apple TV. Sizable gains in two companies believed to be beneficiaries of Apple's iPhone -- Marvell Technology Group (MRVL 20.88 +1.15) and Nvidia (NVDA 34.90 +1.65) -- prompted even more rotation out of areas like Energy and into Tech, which Briefing.com rates as "Overweight." Meanwhile, Apple (AAPL 96.80 +4.23) tacked a 4.6% gain onto yesterday's 8% rally to close at a new all-time high following upbeat analyst commentary and several price target increases.
Consumer Staples was another bright spot for investors after Dow component Altria Group (MO 89.19 +1.07) surged 1.2% to a fresh all-time high, as investors continue to find value tied to the upcoming spin-off of its stake in Kraft. BTK +0.6% DJ30 +25.56 DJTA +0.2% DJUA +0.1% DOT +0.3% NASDAQ +15.50 NQ100 +1.1% R2K +0.1% SOX +1.8% SP400 +0.3% SP500 +2.74 XOI -1.7% NASDAQ Dec/Adv/Vol 1539/1493/2.15 bln NYSE Dec/Adv/Vol 1638/1640/1.45 bln
3:30 pm : More of the same for equities as the Nasdaq continues to turn in a better performance than its blue-chip peers going into the close. Thus, of the nine sectors trading higher, it's not surprising to see Technology (+0.7%) leading the charge. The Materials sector (+0.6%) is a close second, as Alcoa's (AA 30.22 +1.70) strong Q4 results helps to earmark Aluminum as today's best performing S&P industry group (+6.0%).DJ30 +28.92 NASDAQ +14.07 SP500 +3.08 NASDAQ Dec/Adv/Vol 1587/1411/1.86 bln NYSE Dec/Adv/Vol 1744/1476/1.22 bln
3:00 pm : Stocks regain some upward momentum since the last update, lifting the indices to fresh session highs. Crude oil prices recently closing below $55/bbl for the first time since June 2005, actually settling near $54/bbl, remains the driving factor behind this afternoon's market recovery. Be that as it may, it is worth noting that negative market breadth continues to lend little conviction on the part of buyers, suggesting that most of today's modest market gains can be attributed to strength from a handful of large-cap names (e.g. PG +1.1%, MO +1.3%, INTC +2.0%, AAPL 4.1%, HD +1.3%, QCOM +1.0%, YHOO +3.3%, SUNW +4.7%, S +1.6%, TXN +1.7% and AA +5.8%). DJ30 +26.52 NASDAQ +11.56 SP500 +2.60 NASDAQ Dec/Adv/Vol 1657/1329/1.72 bln NYSE Dec/Adv/Vol 1853/1366/1.12 bln
2:30 pm : The major averages are off their best levels but continue to sport modest gains. Turning in today's best performance among the most closely-watched indices, though, is the Nasdaq 100 (+0.8%). A 3.5% surge in Apple (AAPL 95.85 +3.28) is providing the bulk of support, while gains of more than 5.0% are also being enjoyed by Marvell Technology Group (MRVL 20.82 +1.09) and Nvidia (NVDA 34.95 +1.70), which are believed to be beneficiaries of Apple's iPhone. XM Satellite Radio (XMSR 16.72 +1.60) is pacing the way with a 10.6% advance, after Citigroup raised their price target to $21 from $16, while Sears Holding (SHLD 170.32 +4.09), after raising its Q4 and full-year profit outlook, is also a notable gainer. DJ30 +11.30 NASDAQ +6.53 SP500 +0.75 NASDAQ Dec/Adv/Vol 1669/1299/1.57 bln NYSE Dec/Adv/Vol 1880/1337/1.02 bln
2:00 pm : Buyers continue to show their resolve as recovery efforts help the indices try to abandon their neutral stance. Oil prices recently breaking through $54/bbl (-3.3%), and a simultaneous turnaround in the influential Financials sector, have been the big reasons behind the Dow and S&P 500 turning positive for the first time today. The Energy sector’s ability to again show some resilience in the face of plunging oil prices is also noteworthy. Energy (-1.1%) is now the only sector in the red. However, respectable gains of roughly 0.4% for Tech, Consumer Discretionary and Staples are the driving forces behind the market's recent improvement. DJ30 +18.67 NASDAQ +7.79 SOX +0.9% SP500 +1.95 NASDAQ Dec/Adv/Vol 1726/1239/1.42 bln NYSE Dec/Adv/Vol 1927/1225/928 mln
1:30 pm : The market has inched higher since the last update, but all three indices still vacillate around the unchanged mark. While the number of sectors trading higher (6) outnumber those trading lower (4) for the first time today, it is also worth noting that gains/losses only average about 0.1% to 0.2% for every sector, excluding Energy (-1.4%). DJ30 -6.81 NASDAQ +2.97 SP500 -1.35 NASDAQ Dec/Adv/Vol 1719/1221/1.26 bln NYSE Dec/Adv/Vol 1973/1226/840 mln
1:00 pm : Stocks remain mired in relatively tight trading ranges, showing little reaction to recent testimony from Chicago Fed President Moskow. Moskow, who is a voting Fed member this year, said 30 minutes ago that he remains optimistic the economy will pick up in coming months and return to its potential growth rate of around 3.0%, also noting that housing is not spilling over into broader economy. However, with the threat of higher inflation still Moskow's "predominant concern," his mixed remarks have done little to help set a more definitive tone to today's lackluster trading action. DJ30 -20.35 NASDAQ +0.86 SP500 -1.61 NASDAQ Dec/Adv/Vol 1798/1131/1.16 bln NYSE Dec/Adv/Vol 2079/1104/770 mln
12:30 pm : No real change in sentiment as traders make their way through the New York lunch hour. The hesitation on the part of buyers, as the Nasdaq clings to the smallest of gains, is further evidenced in negative market internals. As reflected in the A/D line, decliners hold a 17-to-11 margin over advancers on the tech-heavy Composite while those on the NYSE hold a 2-to-1 edge. Down volume also outpacing down volume by a healthy margin at both the Big Board and Composite further underscores the developing nervousness amongst investors. DJ30 -21.39 NASDAQ +1.24 SP500 -2.46 NASDAQ Dec/Adv/Vol 1719/1167/1.01 bln NYSE Dec/Adv/Vol 2053/1079/670 mln
12:00 pm : Stocks are trading with a sense of caution midday as plunging oil prices continue to play havoc with investor psyche. Market participants are also showing some reserve ahead of testimony about the economic outlook from Chicago Fed President Moskow at 12:30 ET.
While lower oil prices are certainly good for the economy, substantially reducing overall consumer price inflation, lingering concerns that diminishing demand for crude may foreshadow even weaker than expected economic growth is acting as an offset to oil's continued downturn. Crude for February delivery is down 2.0% at $54.50/bbl following much larger than expected builds in gasoline and distillate supplies. Another warning in the Energy sector (-1.8%) is also contributing to the lack of leadership from one of the biggest contributors to aggregate earnings growth on the S&P 500 for several quarters. Chevron (CVX 69.12 -1.51) is down more than 2.0% after saying Q4 will be adversely affected relative to its record Q3 results.
Of the five other sectors trading lower, the most influential S&P 500 sector -- Financials -- turning in the day's second worst performance also remains an obstacle for the bulls to overcome.
On a positive note, Alcoa (AA 29.61 +1.09) kicked off the Q4 earnings season last night on a solid note after topping Wall Street forecasts. The Dow component is up 3.8%. However, since Alcoa is not a bellwether for overall earnings trends and the Q4 season doesn't pick up in earnest until next week, buyers remain worried that last year's second-half rally left stocks overextended when faced with the likelihood of a slower rate of earnings growth this year.
As evidenced by the Nasdaq clinging to a small gain, Technology remains the best story so far in 2007. The sector is getting the bulk of its support from hardware (HWI +1.2%), especially a 5.2% surge in Apple (AAPL 97.38 +4.81) following upbeat analyst commentary and several price target increases. Relative strength in chip stocks is also lending some support, especially from Dow component Intel (INTC 21.22 +0.19), which is reportedly slated to make the CPU for Apple's iPhone. With IBM (IBM 98.27 -1.80) hitting multi-year highs yesterday, however, AG Edwards downgrading the Dow component on valuation concerns may leave investors questioning the sustainability of strong gains in other tech names.DJ30 -20.71 NASDAQ +1.27 SOX +0.5% SP500 -2.37 NASDAQ Dec/Adv/Vol 1695/1155/902 mln NYSE Dec/Adv/Vol 2069/1028/580 mln
11:30 am : Not much has changed since the last update as the major averages continue to trade in split fashion. Energy's recent recovery efforts, however, are short lived as the sector slips to its worst levels of the day (-1.7%). The absence of upside leadership from even more influential areas like Financials, Health Care and Industrials is also overshadowing carryover momentum in Technology. DJ30 -23.71 NASDAQ +2.43 SOX +0.4% SP500 -2.85 XOI -2.0% NASDAQ Dec/Adv/Vol 1618/1202/760 mln NYSE Dec/Adv/Vol 2009/1050/492 mln
11:00 am : Buyers continue to trickle in from the sidelines as investors become more bullish about the positive impact of lower oil prices on the economy. Oil prices still languishing near session lows (-2.4%) and Energy's resilience (-0.5%), as evidenced by the sector attracting some bargain-hunting interest within the last 30 minutes, is offering some reassurance about the sustainability of the second-half rally in stocks.
Also noteworthy have been turnarounds in Consumer Discretionary, as retailers become more attractive at the expense of oil's pullback, and Technology. The latter is getting the bulk of its support from hardware (HWI +0.9%), especially a 3.8% surge in Apple (AAPL 96.07 +3.50), while renewed enthusiasm for chip stocks provides additional support. The PHLX Semiconductor Sector Index has turned positive, getting a lift from a 1.1% surge in Dow component Intel (INTC 21.26 +0.23), which is reportedly slated to make the CPU for Apple's iPhone. DJ30 -13.54 NASDAQ +2.98 SOX +0.6% SP500 -1.08 NASDAQ Dec/Adv/Vol 1506/1247/596 mln NYSE Dec/Adv/Vol 1983/1030/378 mln
10:30 am : All three major averages have more than halved their intraday losses since the last update. Further deterioration in oil prices is the most noticeable catalyst for the market's recent recovery efforts. Crude for February delivery is now down 2.2% at $54.40/bbl amid concerns among commodity traders that the weekly inventory report, which will be out momentarily, will show a large build in stockpiles. Energy (-0.9%) barely budging in response to oil's latest move to the downside also helps to alleviate renewed concerns about the sector's potential to still generate solid earnings growth. DJ30 -20.58 NASDAQ -3.09 SP500 -2.37 NASDAQ Dec/Adv/Vol 1697/934/388 mln NYSE Dec/Adv/Vol 2068/846/236 mln
10:00 am : The blue-chip indices extend their reach to the downside as all 10 sectors are now in negative territory. With the mass exodus out of oil just six trading days into the New Year, Energy not surprisingly is pacing the way lower (-0.9%). Aside from oil's 1.1% slide this morning ahead of upcoming weekly inventories data, the Energy sector is under additional pressure amid more earnings uncertainty. Chevron (CVX 69.70 -0.93) saying Q4 will be adversely affected relative to its record Q3 results serves as the latest reminder that earnings estimates for other energy names will likely be revised lower.
Following upbeat analyst commentary and several price target increases, Apple Inc. (AAPL 94.74 +2.17) tacking a 2.3% gain onto yesterday's 8% rally to a new all-time high is helping the Nasdaq bounce off morning lows; but the tech-heavy Composite is still languishing below the flat line. DJ30 -50.75 NASDAQ -8.16 SP500 -5.91 NASDAQ Dec/Adv/Vol 1778/706/188 mln NYSE Dec/Adv/Vol 2074/602/86 mln
09:40 am : As futures trade presaged, stocks open lower across the board as huge losses in foreign markets exacerbate valuation concerns and overshadow a solid start to earnings season. Kicking things off last night was Alcoa (AA 29.56 +1.04), which topped Wall Street forecasts. The Dow component is up 3.6% as a nearly 60% year/year rise in Q4 earnings lends some optimism for the S&P 500 to extend its streak of double-digit growth to 14 straight quarters. However, since Alcoa is not a bellwether for overall earnings trends and the Q4 season doesn't pick up in earnest until next week, buyers remain on the sidelines amid worries last year's second-half rally left it overextended when faced with the likelihood of a slower rate of earnings growth this year. DJ30 -40.77 NASDAQ -13.54 SP500 -5.71 NASDAQ Vol 82 mln NYSE Vol 50 mln
09:15 am : S&P futures vs fair value: -5.7. Nasdaq futures vs fair value: -8.5.
09:00 am : S&P futures vs fair value: -5.6. Nasdaq futures vs fair value: -8.2. Futures indications are showing some improvement since the last update but still maintain a negative bias, suggesting stocks will open lower. Oil selling off again, down 1% near $55/bbl amid concerns that today's weekly inventory report (10:30 ET) will show a large build in stockpiles, is providing some support. However, with investors more preoccupied with the pace of economic growth than easing inflation pressures, attributing lower demand for crude to a weak economy and digesting another warning in the Energy sector, the subsequent loss of leadership throughout Energy may again act as an offset. Chevron (CVX) said Q4 will be adversely affected relative to its record Q3 results.
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