AI
Thursday, January 11, 2007 9:11:18 PM
Market Update 070111
http://biz.yahoo.com/mu/update.html
4:20 pm : The major averages finished in strong fashion Thursday as investors rallied around renewed optimism about the pace of economic growth.
With six months of market gains still predicated on the chances of the Fed engineering a soft landing for the U.S. economy, today's only economic report showing no indication of any weakening in the labor market helped to ease concerns about the health of the consumer.
Weekly jobless claims fell a larger than expected 26,000 to 299,000, the lowest level since late July. Even though the data also serve as a reminder that policy makers remain concerned about the potential inflationary impact of higher wages, which contributed to a surprise rate hike from the Bank of England, more evidence of strong labor conditions proved reassuring.
Just two days into the Q4 earnings season, biotech behemoth Genentech (DNA 87.40 +3.66) topped Wall Street estimates and raised its FY07 outlook, prompting several price target increases. Albeit not an S&P 500 constituent, Genetech's net income surging 75% year/year left investors hopeful that aggregate earnings will grow at a double-digit rate for a 14th straight quarter.
Aside from strength in Health Care, which provided notable leadership for the broader market, continued momentum throughout the Technology sector again provided some influential support. Microsoft (MSFT 30.70 +1.04) soared 3.5% to a new four-year high amid upbeat analyst commentary after Windows Vista was named "Best of CES" at this year's International Consumer Electronics Show.
Also helping the Dow close at a new record high was fellow component Intel (INTC 21.87 +0.35). A recommended holding in the Briefing.com Active Portfolio, last year's worst performing Dow stock is this best performer on the blue-chip index as bargain hunters helped tack on 1.6% to yesterday's 2.3% advance. It is worth noting, though, that SAP AG (SAP 49.03 -5.10) warned late in the day that Q4 sales will be well below expectations. That news sent sent shares tumbling 9.4% and took some steam out of the tech rally.
Oil prices closing lower for a fourth straight day provided the bulls even more ammunition to keep last year's second-half rally intact. Crude for February delivery closed below $52/bbl for the first time in 19 months following reports showing U.S. fuel consumption plunged to the lowest level since April 2004.
Consumer Discretionary was another bright spot as plunging oil prices ahead of a long holiday weekend continued to improve the earnings prospects for retailers. Investors also applauded eBay (EBAY 30.23 +0.93), another suggested holding in our Active Portfolio that surged 3% following its $310 mln bid for StubHub. Industrials also showed relative strength as transportation stocks finally began to take advantage of oil's continued downturn.
Not surprising in the face of the further deterioration in crude prices, the Energy sector disappointed yet again as its earnings potential comes into question with every sharp pullback in oil. However, Exxon Mobil (XOM 70.88 -0.11) barely losing any ground despite a 4% drubbing in crude was noteworthy. The stock opened the session down 7.4% on the year but a sense that the sector has been oversold of late kept the Dow component's decline at a minimum. DJ30 +72.82 NASDAQ +25.52 SP500 +8.97 NASDAQ Dec/Adv/Vol 1035/2008/2.40 bln NYSE Dec/Adv/Vol 973/2321/1.67 bln
3:30 pm : More of the same for stocks as buyers remain an active bunch going into the close. It is worth noting, though, that the indices have recently pulled back following a warning from SAP AG (SAP 51.13 -3.00). Within the last few minutes, SAP warned that Q4 sales will be well below expectations, which has sparked a reversal of more than 1.5% in rival Oracle (ORCL 17.49 -0.28). Fortunately for the bulls, the biggest software company in the world, Microsoft (MSFT 30.45 +0.79), is still up nearly 3% and at a multi-year high, which is more than offsetting the collateral damage to Oracle shares.DJ30 +65.73 NASDAQ +18.04 SP500 +7.46 NASDAQ Dec/Adv/Vol 1052/1980/1.96 bln NYSE Dec/Adv/Vol 927/2337/1.32 bln
3:00 pm : The bears' recent attempts to take some money off the table appears short lived as the major averages have almost as quickly regained their upward momentum. A renewed wave of bargain-hunting interest now leaves the Energy sector relatively unchanged while Technology's intraday advance is back above 1.0%, matching similar performances from Health Care, Consumer Discretionary and Materials. DJ30 +92.35 NASDAQ +26.74 SP500 +10.50 NASDAQ Dec/Adv/Vol 1112/1886/1.78 bln NYSE Dec/Adv/Vol 978/2271/1.19 bln
10:00 am : The indices extend their reach to the upside as nine out of 10 sectors are now trading higher. Despite another decline in oil prices, the Energy sector (+1.1%) is leading the charge. With the potential of negative guidance prompting extensive consolidation in the sector, bargain hunters spurred in part by analyst upgrades on refiners Valero Energy (VLO 48.79 +0.58) and Sunoco (SUN 57.94 +0.82) have stepped back into the beaten down sector.
Not surprisingly, though, continued upward momentum in Tech is providing the bulk of early support. As evidenced by Internet Software & Services (+1.7%) turning in this morning's best performance, Google (GOOG 498.37 +8.91) is up nearly 2% after Goldman Sachs raised their Q4 EPS and revenue forecasts on the stock. Follow-through in the semiconductor space, as Intel (INTC 21.94 +0.42) tacks a 2.0% gain onto yesterday's 2.3% surge, is providing additional sector support. Intel is a recommended holding in the Briefing.com Active Portfolio. DJ30 +40.13 NASDAQ +13.45 SOX +0.8% SP500 +5.87 XOI +1.0% NASDAQ Dec/Adv/Vol 656/1766/204 mln NYSE Dec/Adv/Vol 744/1342/90 mln
09:40 am : Stocks open with little fanfare but are currently holding a slightly positive bias. Albeit not an S&P 500 constituent, Genentech (DNA 85.90 +2.17) is doing its part to grow quarterly profits at a double-digit rate and lend some optimism on the earnings front. The biotech giant topped estimates as Q4 earnings surged 75% year/year.
After plunging to its lowest level in more than two years, crude for February delivery down for a fourth straight day ($53.71/bbl) is also providing some relief regarding overall inflation. Earlier, the Bank of England unexpectedly raised its benchmark interest rate by 25 bps to 5.25%, citing wage-based inflation as a big concern, which serves as a reminder that central bankers in the U.S. are also closely watching labor cost trends. DJ30 +16.21 NASDAQ +9.86 SP500 +3.04 NASDAQ Vol 90 mln NYSE Vol 52 mln
09:00 am : S&P futures vs fair value: +0.3. Nasdaq futures vs fair value: -0.5. Still shaping up for the cash market to open in lackluster fashion as both the S&P 500 and Nasdaq 100 futures trade close to fair value. It appears as though Apple (AAPL) will again keep the tech sector in focus, only this time around headlines carry a more negative slant. The stock is down 1% in pre-market action after Cisco Systems (CSCO) said it's suing Apple in a trademark dispute over its new iPhone.
08:33 am : S&P futures vs fair value: -1.3. Nasdaq futures vs fair value: -0.5. Futures trade has weakened since the last update and now suggest a lower start for stocks, as investors who are cognizant the Fed is also watching labor cost trends in the U.S. closely continue to grapple with an unexpected rate hike from the Bank of England due in part to curb wage-based inflation. Meanwhile, investors are sifting through today's only scheduled economic report. Initial claims fell 26K to 299K (consensus 320K), suggesting labor conditions remain strong. However, bonds selling off on the news has lifted the yield on the 10-year note (-10/32) to its highest level this year (4.72%), which is likely to add pressure to rate-sensitve Financials.
08:00 am : S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: +3.0. Early indications point to a slightly higher start for equities. Genentech (DNA) topped Wall Street estimates and raised its guidance while oil prices plunging another 1%, after falling as low as $52.94/bbl (-2.%) overnight, are also contributing to the positive disposition. It is worth noting, however, that the ongoing slide in crude still isn't being fully embraced by the market as the bullish catalyst that it is since falling oil prices also threaten the earnings potential of the Energy sector. Energy has been the biggest reason over the last several quarters behind the S&P 500's ability to generate double-digit profit growth.
06:17 am : S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: +1.8.
http://biz.yahoo.com/mu/update.html
4:20 pm : The major averages finished in strong fashion Thursday as investors rallied around renewed optimism about the pace of economic growth.
With six months of market gains still predicated on the chances of the Fed engineering a soft landing for the U.S. economy, today's only economic report showing no indication of any weakening in the labor market helped to ease concerns about the health of the consumer.
Weekly jobless claims fell a larger than expected 26,000 to 299,000, the lowest level since late July. Even though the data also serve as a reminder that policy makers remain concerned about the potential inflationary impact of higher wages, which contributed to a surprise rate hike from the Bank of England, more evidence of strong labor conditions proved reassuring.
Just two days into the Q4 earnings season, biotech behemoth Genentech (DNA 87.40 +3.66) topped Wall Street estimates and raised its FY07 outlook, prompting several price target increases. Albeit not an S&P 500 constituent, Genetech's net income surging 75% year/year left investors hopeful that aggregate earnings will grow at a double-digit rate for a 14th straight quarter.
Aside from strength in Health Care, which provided notable leadership for the broader market, continued momentum throughout the Technology sector again provided some influential support. Microsoft (MSFT 30.70 +1.04) soared 3.5% to a new four-year high amid upbeat analyst commentary after Windows Vista was named "Best of CES" at this year's International Consumer Electronics Show.
Also helping the Dow close at a new record high was fellow component Intel (INTC 21.87 +0.35). A recommended holding in the Briefing.com Active Portfolio, last year's worst performing Dow stock is this best performer on the blue-chip index as bargain hunters helped tack on 1.6% to yesterday's 2.3% advance. It is worth noting, though, that SAP AG (SAP 49.03 -5.10) warned late in the day that Q4 sales will be well below expectations. That news sent sent shares tumbling 9.4% and took some steam out of the tech rally.
Oil prices closing lower for a fourth straight day provided the bulls even more ammunition to keep last year's second-half rally intact. Crude for February delivery closed below $52/bbl for the first time in 19 months following reports showing U.S. fuel consumption plunged to the lowest level since April 2004.
Consumer Discretionary was another bright spot as plunging oil prices ahead of a long holiday weekend continued to improve the earnings prospects for retailers. Investors also applauded eBay (EBAY 30.23 +0.93), another suggested holding in our Active Portfolio that surged 3% following its $310 mln bid for StubHub. Industrials also showed relative strength as transportation stocks finally began to take advantage of oil's continued downturn.
Not surprising in the face of the further deterioration in crude prices, the Energy sector disappointed yet again as its earnings potential comes into question with every sharp pullback in oil. However, Exxon Mobil (XOM 70.88 -0.11) barely losing any ground despite a 4% drubbing in crude was noteworthy. The stock opened the session down 7.4% on the year but a sense that the sector has been oversold of late kept the Dow component's decline at a minimum. DJ30 +72.82 NASDAQ +25.52 SP500 +8.97 NASDAQ Dec/Adv/Vol 1035/2008/2.40 bln NYSE Dec/Adv/Vol 973/2321/1.67 bln
3:30 pm : More of the same for stocks as buyers remain an active bunch going into the close. It is worth noting, though, that the indices have recently pulled back following a warning from SAP AG (SAP 51.13 -3.00). Within the last few minutes, SAP warned that Q4 sales will be well below expectations, which has sparked a reversal of more than 1.5% in rival Oracle (ORCL 17.49 -0.28). Fortunately for the bulls, the biggest software company in the world, Microsoft (MSFT 30.45 +0.79), is still up nearly 3% and at a multi-year high, which is more than offsetting the collateral damage to Oracle shares.DJ30 +65.73 NASDAQ +18.04 SP500 +7.46 NASDAQ Dec/Adv/Vol 1052/1980/1.96 bln NYSE Dec/Adv/Vol 927/2337/1.32 bln
3:00 pm : The bears' recent attempts to take some money off the table appears short lived as the major averages have almost as quickly regained their upward momentum. A renewed wave of bargain-hunting interest now leaves the Energy sector relatively unchanged while Technology's intraday advance is back above 1.0%, matching similar performances from Health Care, Consumer Discretionary and Materials. DJ30 +92.35 NASDAQ +26.74 SP500 +10.50 NASDAQ Dec/Adv/Vol 1112/1886/1.78 bln NYSE Dec/Adv/Vol 978/2271/1.19 bln
10:00 am : The indices extend their reach to the upside as nine out of 10 sectors are now trading higher. Despite another decline in oil prices, the Energy sector (+1.1%) is leading the charge. With the potential of negative guidance prompting extensive consolidation in the sector, bargain hunters spurred in part by analyst upgrades on refiners Valero Energy (VLO 48.79 +0.58) and Sunoco (SUN 57.94 +0.82) have stepped back into the beaten down sector.
Not surprisingly, though, continued upward momentum in Tech is providing the bulk of early support. As evidenced by Internet Software & Services (+1.7%) turning in this morning's best performance, Google (GOOG 498.37 +8.91) is up nearly 2% after Goldman Sachs raised their Q4 EPS and revenue forecasts on the stock. Follow-through in the semiconductor space, as Intel (INTC 21.94 +0.42) tacks a 2.0% gain onto yesterday's 2.3% surge, is providing additional sector support. Intel is a recommended holding in the Briefing.com Active Portfolio. DJ30 +40.13 NASDAQ +13.45 SOX +0.8% SP500 +5.87 XOI +1.0% NASDAQ Dec/Adv/Vol 656/1766/204 mln NYSE Dec/Adv/Vol 744/1342/90 mln
09:40 am : Stocks open with little fanfare but are currently holding a slightly positive bias. Albeit not an S&P 500 constituent, Genentech (DNA 85.90 +2.17) is doing its part to grow quarterly profits at a double-digit rate and lend some optimism on the earnings front. The biotech giant topped estimates as Q4 earnings surged 75% year/year.
After plunging to its lowest level in more than two years, crude for February delivery down for a fourth straight day ($53.71/bbl) is also providing some relief regarding overall inflation. Earlier, the Bank of England unexpectedly raised its benchmark interest rate by 25 bps to 5.25%, citing wage-based inflation as a big concern, which serves as a reminder that central bankers in the U.S. are also closely watching labor cost trends. DJ30 +16.21 NASDAQ +9.86 SP500 +3.04 NASDAQ Vol 90 mln NYSE Vol 52 mln
09:00 am : S&P futures vs fair value: +0.3. Nasdaq futures vs fair value: -0.5. Still shaping up for the cash market to open in lackluster fashion as both the S&P 500 and Nasdaq 100 futures trade close to fair value. It appears as though Apple (AAPL) will again keep the tech sector in focus, only this time around headlines carry a more negative slant. The stock is down 1% in pre-market action after Cisco Systems (CSCO) said it's suing Apple in a trademark dispute over its new iPhone.
08:33 am : S&P futures vs fair value: -1.3. Nasdaq futures vs fair value: -0.5. Futures trade has weakened since the last update and now suggest a lower start for stocks, as investors who are cognizant the Fed is also watching labor cost trends in the U.S. closely continue to grapple with an unexpected rate hike from the Bank of England due in part to curb wage-based inflation. Meanwhile, investors are sifting through today's only scheduled economic report. Initial claims fell 26K to 299K (consensus 320K), suggesting labor conditions remain strong. However, bonds selling off on the news has lifted the yield on the 10-year note (-10/32) to its highest level this year (4.72%), which is likely to add pressure to rate-sensitve Financials.
08:00 am : S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: +3.0. Early indications point to a slightly higher start for equities. Genentech (DNA) topped Wall Street estimates and raised its guidance while oil prices plunging another 1%, after falling as low as $52.94/bbl (-2.%) overnight, are also contributing to the positive disposition. It is worth noting, however, that the ongoing slide in crude still isn't being fully embraced by the market as the bullish catalyst that it is since falling oil prices also threaten the earnings potential of the Energy sector. Energy has been the biggest reason over the last several quarters behind the S&P 500's ability to generate double-digit profit growth.
06:17 am : S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: +1.8.
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