AI
Tuesday, April 10, 2007 9:18:34 PM
Market Update 070410
http://biz.yahoo.com/mu/update.html
4:20 pm : Stocks closed higher Tuesday, but market gains were modest in scope given a lack of corporate news, no scheduled economic data, and a sense of caution that typically precedes the start of earnings season, especially one in which 14 consecutive quarters of double-digit profit growth for the S&P 500 are likely to come to an end. Alcoa (AA 34.90 +0.03), the best performing Dow component last quarter (+13.6%), was scheduled to officially kick things off with its Q1 report after the closing bell.
Speaking of the blue-chip index, it finished to the upside for an eighth consecutive day, recording its longest winning streak since March 2003. However, had it not been for respective gains of 1.6% and 1.0% in Citigroup (C 52.41 +0.83) and Exxon Mobil (XOM 77.59 +0.79), which rank as two of the most heavily-weighted constituents in the S&P 500, the Dow's streak would have been snapped.
Among the nine sectors finishing in positive territory, Energy was the only one posting a respectable gain; but its 1.4% advance was tied primarily to a rebound in oil prices, which is bearish for equities.
Crude for May delivery rose 0.6% to $61.89/bbl as yesterday's sharp 4.3% sell-off and the possibility that weekly gasoline inventories fell for a ninth week renewed buying interest. The remaining eight sectors trading higher averaged gains of only 0.15%; meanwhile, below average volume on the NYSE showed there was little conviction on the part of today's participants.
Technology was in focus following upgrades on a few notable sector components (e.g. ORCL +1.5%, AMAT +4.0%, and ADSK +3.8%), as well as upbeat analyst commentary on Intel (INTC 20.69 +0.59). However, Seagate Technology (STX 21.90 -1.56) warning that Q3 revenue will miss forecasts left investors questioning the sector's growth prospects. Tech is expected to be one of the S&P 500's biggest earnings drivers this year.
A market increasingly sensitive to weak data, especially from the housing sector, viewed a 37% drop in Q2 net sales orders at D.R. Horton (DHI 21.65 -0.39) as a reason to keep selling homebuilders (-1.2%), this year's worst performing S&P industry group (-20.1%). A report from Equifax/Moody's that showed the national mortgage delinquency rate hit an all-time high of 2.87% in Q1 also took some steam out the Consumer Discretionary sector's recent recovery efforts.
Separately, Fed Governor Mishkin saying the current rate of inflation remains too high and that policy makers will need to raise interest rates if price gains don't moderate also stalled momentum following last week's rally. BTK -0.7% DJ30 +4.71 DJTA -0.3% DJUA +0.3% DOT +0.4% NASDAQ +8.43 NQ100 +0.5% R2K +0.4% SOX 0.8% SP400 +0.3% SP500 +3.78 XOI +0.9% NASDAQ Dec/Adv/Vol 1358/1677/1.75 bln NYSE Dec/Adv/Vol 1265/2014/1.20 bln
3:30 pm : Equities continue to run in place just above the flat line as investors wait for the first quarter earnings to officially get underway tonight with quarterly results from Dow component Alcoa (AA 35.13 +0.26).
Not only does Alcoa's report help set the pace of earnings for the quarter but many on Wall Street also believe it serves as an economic barometer. According to Reuters Estimates, Alcoa is expected to post a profit of $0.77 on revenue of $7.77 bln.DJ30 +0.97 NASDAQ +5.19 SP500 +3.05 NASDAQ Dec/Adv/Vol 1388/1616/1.54 bln NYSE Dec/Adv/Vol 1279/1962/1.02 bln
3:00 pm : Stocks continue to trade sideways around the unchanged mark as investors anxiously wait to get a better look at the earnings picture. It's no secret that slower economic growth and tougher comparisons after several strong years of earnings are likely to snap 14 straight quarters of double-digit profit growth for the S&P 500. However, the possibility that guidance may be extremely cautious is also stalling momentum ahead of Alcoa's (AA 35.08 +0.21) report tonight.
It is worth noting that if it weren't for a 1.6% advance in fellow Dow component Citigroup (C 52.41 +0.83), which currently accounts for more than six Dow points, the price-weighted index would still be in negative territory and in jeopardy of seeing a seven-day winning streak come to an end. Citigroup is trading higher amid reports of a possible major restructuring announcement. DJ30 +5.38 NASDAQ +4.46 SP500 +2.84 NASDAQ Dec/Adv/Vol 1358/1636/1.39 bln NYSE Dec/Adv/Vol 1331/1914/928 mln
2:30 pm : The Dow is back in positive territory, but barely, as buyers quietly remain in control of the action. As reflected in the A/D line, advancers on the NYSE hold a 19-to-12 edge over decliners while those on the Nasdaq hold a 16-to-13 margin.
Be that as it may, market gains are modest at best while below average volume lends little credence behind the market's recent recovery attempts. In fact, the NYSE runs the risk of seeing less than 1.0 bln shares exchange hands today. DJ30 +2.16 NASDAQ +4.88 SP500 +3.03 NASDAQ Dec/Adv/Vol 1322/1668/1.30 bln NYSE Dec/Adv/Vol 1253/1948/860 mln
2:00 pm : Directionless trading continues to plague today's action as participants have few catalysts to push the indices more convincingly in either direction. Meanwhile, investors are sifting through remarks from Dallas Fed President Fisher; however, no surprises from the typically hawkish Fed official have given investors little to trade on.
On a positive note, Fisher said U.S growth will pick up through the year, citing the 'rather strong' March employment report; but he also noted the Fed has 'more work to do' on inflation. Not even bonds have budged on Fisher's comments as the 10-year note is still up 5 ticks to yield 4.72%. DJ30 -3.85 NASDAQ +3.24 SP500 +2.14 NASDAQ Dec/Adv/Vol 1331/1640/1.18 bln NYSE Dec/Adv/Vol 1249/1932/778 mln
1:30 pm : Not much has changed as the major averages remain mired in relatively narrow trading ranges. The Dow inched into positive territory within the last 15 minutes, but its recovery was short-lived and based almost entirely on Exxon Mobil (XOM 77.76 +0.96) hitting fresh session highs (+1.3%).
Seventeen of the Dow's 30 components remain negative. The S&P 500 and Nasdaq are still in the green, but their paltry 0.15% gains offer little confidence that either will finish the day in positive fashion. DJ30 -6.07 NASDAQ +4.08 SP500 +2.17 XOI +1.0% NASDAQ Dec/Adv/Vol 1357/1612/1.10 bln NYSE Dec/Adv/Vol 1312/1869/720 mln
1:00 pm : More of the same for stocks as split sector leadership further underscores the lack of conviction on the either the bullish or bearish side of the aisle. Crude for May delivery recently hitting session highs (+1.1%) has given the Energy sector an added boost.
However, with only a 10% weighting on the S&P 500, Energy's 1.2% advance is hardly enough to offset weakness in Tech, Health Care, Industrials and Discretionary, which combine to account for nearly 50% of the total influence on the broader market. DJ30 -14.47 NASDAQ +2.82 SP500 +0.48 NASDAQ Dec/Adv/Vol 1276/1655/1.00 bln NYSE Dec/Adv/Vol 1229/1920/650 mln
12:30 pm : No real change in the proceedings as the afternoon session gets underway and investors lack the catalysts needed to support last week's surprise rally. Meanwhile, Health Care has recently turned positive, but only enough to inch just above the flat line.
Fortunately for the bulls, today's biggest disappointments are coming from two of the least influential sectors -- Materials (-0.6%) and Telecom (-0.4%). Pullbacks in both, though, aren't a big surprise since their impressive year-to-date returns of 11.1% and 6.5%, respectively, just three months into 2007 are likely to invite some profit taking. DJ30 -10.32 NASDAQ +3.52 SP500 +0.83 NASDAQ Dec/Adv/Vol 1289/1616/906 mln NYSE Dec/Adv/Vol 1277/1854/584 mln
12:00 pm : The major averages are mixed midday, but that's not all that surprising given the sizable market gains of late, a lack of corporate news, no scheduled economic data, and the sense of caution that typically precedes the start of earnings season. Alcoa (AA 34.72 -0.15), this year's best performing Dow component (+16.8%), will officially kick things off when it reports Q1 results after the bell tonight.
Meanwhile, Technology has been in focus following upgrades on a handful of notable names (e.g. ORCL +0.9%, AMAT +2.8%, and ADSK +2.9%) and upbeat analyst commentary on Intel (INTC 20.29 +0.19). However, Seagate Technology (STX 21.30 -2.16) warning that Q3 revenue will miss forecasts has left investors questioning the sector's growth prospects. Tech is expected to be one of the S&P 500's biggest earnings drivers this year
A market increasingly sensitive to weak data, especially from the housing sector, has used a 37% drop in Q2 net sales orders at D.R. Horton (DHI 21.68 -0.36) as a reason to keep selling homebuilders, this year's worst performing S&P industry group (-20.2%). A report from Equifax/Moody's that showed the national mortgage delinquency rate hit an all-time high of 2.87% in Q1 is also weighing on sentiment and removing leadership from Consumer Discretionary.
Of the four sectors trading higher, Energy is the only one posting a respectable gain; but its 0.8% advance is also coming at the expense of a rebound in oil prices, which is bearish for equities. DJ30 -13.41 DJTA -0.2% DJUA +0.1% DOT +0.2% NASDAQ +3.12 NQ100 +0.1% R2K +0.3% SOX +0.1% SP400 +0.2% SP500 +0.31 XOI +0.5% NASDAQ Dec/Adv/Vol 1246/1611/798 mln NYSE Dec/Adv/Vol 1165/1924/506 mln
11:30 am : Sellers show some resolve since the last update, but only enough to push the Dow below the flat line. Reversals in the Technology and Consumer Discretionary sectors remove some notable leadership. The latter sector is expected to post a 10% decline in Q1 earnings while Tech is expected to have the second best quarter with 10% EPS growth.
However, Seagate Technology's (STX 21.38 -2.08) warning and some more discouraging developments in the housing sector leave some investors questioning whether those forecasts should be revised lower. DJ30 -4.72 NASDAQ +4.52 SP500 +1.78 NASDAQ Dec/Adv/Vol 1184/1649/700 mln NYSE Dec/Adv/Vol 1117/1962/430 mln
11:00 am : The major averages are off their best levels but still trading in positive territory. Albeit up only 10 points, the Dow is only 53 points away from where it closed on February 26 -- the day before the global sell-off.
The Dow is also positioned to extend a seven-day winning streak to eight days, something that hasn't happened in four years, while the Nasdaq, whose six-day winning streak was snapped yesterday, remains today's best performer among the majors. DJ30 +10.20 NASDAQ +7.53 SP500 +3.36 NASDAQ Dec/Adv/Vol 1040/1717/512 mln NYSE Dec/Adv/Vol 973/2000/310 mln
10:30 am : Stocks have inched higher since the last update but hardly enough to make a significant change in the standings. A turnaround in Technology, fueled primarily by several analyst upgrades (e.g. ORCL +1.2%, AMAT +2.4%, and ADSK +3.0%), has been the most noticeable reason behind the market's improvement.
Renewed enthusiasm for beaten-down brokerage and bank stocks, providing a floor of support for Financials, is also giving the market a lift. DJ30 +14.35 NASDAQ +9.25 SP500 +3.79 NASDAQ Dec/Adv/Vol 1017/1642/378 mln NYSE Dec/Adv/Vol 1042/1806/210 mln
10:00 am : The indices remain on the offensive but are still struggling to find much conviction on the part of buyers. Of the six sectors trading higher, Energy is the only one posting a respectable gain; but its modest 0.5% advance is also coming at the expense of rising oil prices, which are bearish for equities.
Health Care is catching a bid as drug stocks get a lift after Mylan Labs (MYL 22.07 +0.87) raised its fiscal 2007 EPS guidance; but the absence of leadership from the influential Tech sector is minimizing market gains. Seagate Technology (STX 21.54 -1.92) warning that Q3 revenue will miss forecasts leaves investors questioning the growth prospects of what is expected to be one of the S&P 500's biggest earnings drivers this year. DJ30 +8.64 NASDAQ +4.71 SP500 +1.95 NASDAQ Dec/Adv/Vol 914/1538/176 mln NYSE Dec/Adv/Vol 923/1601/62 mln
09:40 am : With little in the way of corporate news and no economic reports on the docket today, stocks open with little fanfare. As a reminder, the market's main focus will shift from macro-economic issues to earnings over the next few weeks.
Thus, with a winning streak of 14 straight quarters of double-digit profit growth for the S&P 500 likely to be snapped, investors are anxiously waiting for results from Alcoa (AA 34.86 -0.01) after the bell tonight to officially kick off the first-quarter earnings season and perhaps provide some insight into the health of the economy. Separately, the market is sifting through some testimony from Fed Governor Mishkin; however, his prepared remarks have failed to offer any surprises. DJ30 +1.97 NASDAQ +2.30 SP500 +0.56 NASDAQ Vol 68 mln NYSE Vol 42 mln
09:15 am : S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -1.2.
09:00 am : S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -0.8. Still shaping up to be a lackluster open for equities as investors lack the market-moving news items needed to build onto last week's sizable gains. One issue underpinning a cautious tone has been a report from Equifax/Moody's that showed the national mortgage delinquency rate hit an all-time high of 2.87% in Q1. Participants may also be anxiously waiting for some Fedspeak today to get some insight into upcoming monetary policy decisions. Fed Governor Mishkin will speak at 9:30 ET while Dallas Fed President Fisher's prepared remarks are scheduled to hit the wires around 13:20 ET.
08:30 am : S&P futures vs fair value: +0.4. Nasdaq futures vs fair value: +0.2. The futures market continues to languish around fair value, indicating a sluggish start for the major averages. Meanwhile, Seagate Technology (STX) warning that Q3 revenue will miss forecasts puts Technology's growth prospects under the microscope; but multiple analyst upgrades in the sector (e.g. ORCL, AMAT, ADSK, and AMD) may act as offsetting factors.
08:00 am : S&P futures vs fair value: -0.1. Nasdaq futures vs fair value: +0.5. Early indications are pointing to a relatively flat start for stocks. That's not all that surprising, though, since there aren't any economic reports scheduled for release today and the first-quarter earnings season doesn't officially get underway until Alcoa (AA) releasing results after the bell tonight. Over the next few weeks investors will be closely watching to see how weakness in the housing and manufacturing sectors has impacted corporate growth. Expectations are for Q1 operating earnings for the S&P 500 in aggregate to increase only 3% to 4% over the same quarter of 2006. That's the lowest level of growth in five years.
06:21 am : S&P futures vs fair value: +2.2. Nasdaq futures vs fair value: +2.3.
http://biz.yahoo.com/mu/update.html
4:20 pm : Stocks closed higher Tuesday, but market gains were modest in scope given a lack of corporate news, no scheduled economic data, and a sense of caution that typically precedes the start of earnings season, especially one in which 14 consecutive quarters of double-digit profit growth for the S&P 500 are likely to come to an end. Alcoa (AA 34.90 +0.03), the best performing Dow component last quarter (+13.6%), was scheduled to officially kick things off with its Q1 report after the closing bell.
Speaking of the blue-chip index, it finished to the upside for an eighth consecutive day, recording its longest winning streak since March 2003. However, had it not been for respective gains of 1.6% and 1.0% in Citigroup (C 52.41 +0.83) and Exxon Mobil (XOM 77.59 +0.79), which rank as two of the most heavily-weighted constituents in the S&P 500, the Dow's streak would have been snapped.
Among the nine sectors finishing in positive territory, Energy was the only one posting a respectable gain; but its 1.4% advance was tied primarily to a rebound in oil prices, which is bearish for equities.
Crude for May delivery rose 0.6% to $61.89/bbl as yesterday's sharp 4.3% sell-off and the possibility that weekly gasoline inventories fell for a ninth week renewed buying interest. The remaining eight sectors trading higher averaged gains of only 0.15%; meanwhile, below average volume on the NYSE showed there was little conviction on the part of today's participants.
Technology was in focus following upgrades on a few notable sector components (e.g. ORCL +1.5%, AMAT +4.0%, and ADSK +3.8%), as well as upbeat analyst commentary on Intel (INTC 20.69 +0.59). However, Seagate Technology (STX 21.90 -1.56) warning that Q3 revenue will miss forecasts left investors questioning the sector's growth prospects. Tech is expected to be one of the S&P 500's biggest earnings drivers this year.
A market increasingly sensitive to weak data, especially from the housing sector, viewed a 37% drop in Q2 net sales orders at D.R. Horton (DHI 21.65 -0.39) as a reason to keep selling homebuilders (-1.2%), this year's worst performing S&P industry group (-20.1%). A report from Equifax/Moody's that showed the national mortgage delinquency rate hit an all-time high of 2.87% in Q1 also took some steam out the Consumer Discretionary sector's recent recovery efforts.
Separately, Fed Governor Mishkin saying the current rate of inflation remains too high and that policy makers will need to raise interest rates if price gains don't moderate also stalled momentum following last week's rally. BTK -0.7% DJ30 +4.71 DJTA -0.3% DJUA +0.3% DOT +0.4% NASDAQ +8.43 NQ100 +0.5% R2K +0.4% SOX 0.8% SP400 +0.3% SP500 +3.78 XOI +0.9% NASDAQ Dec/Adv/Vol 1358/1677/1.75 bln NYSE Dec/Adv/Vol 1265/2014/1.20 bln
3:30 pm : Equities continue to run in place just above the flat line as investors wait for the first quarter earnings to officially get underway tonight with quarterly results from Dow component Alcoa (AA 35.13 +0.26).
Not only does Alcoa's report help set the pace of earnings for the quarter but many on Wall Street also believe it serves as an economic barometer. According to Reuters Estimates, Alcoa is expected to post a profit of $0.77 on revenue of $7.77 bln.DJ30 +0.97 NASDAQ +5.19 SP500 +3.05 NASDAQ Dec/Adv/Vol 1388/1616/1.54 bln NYSE Dec/Adv/Vol 1279/1962/1.02 bln
3:00 pm : Stocks continue to trade sideways around the unchanged mark as investors anxiously wait to get a better look at the earnings picture. It's no secret that slower economic growth and tougher comparisons after several strong years of earnings are likely to snap 14 straight quarters of double-digit profit growth for the S&P 500. However, the possibility that guidance may be extremely cautious is also stalling momentum ahead of Alcoa's (AA 35.08 +0.21) report tonight.
It is worth noting that if it weren't for a 1.6% advance in fellow Dow component Citigroup (C 52.41 +0.83), which currently accounts for more than six Dow points, the price-weighted index would still be in negative territory and in jeopardy of seeing a seven-day winning streak come to an end. Citigroup is trading higher amid reports of a possible major restructuring announcement. DJ30 +5.38 NASDAQ +4.46 SP500 +2.84 NASDAQ Dec/Adv/Vol 1358/1636/1.39 bln NYSE Dec/Adv/Vol 1331/1914/928 mln
2:30 pm : The Dow is back in positive territory, but barely, as buyers quietly remain in control of the action. As reflected in the A/D line, advancers on the NYSE hold a 19-to-12 edge over decliners while those on the Nasdaq hold a 16-to-13 margin.
Be that as it may, market gains are modest at best while below average volume lends little credence behind the market's recent recovery attempts. In fact, the NYSE runs the risk of seeing less than 1.0 bln shares exchange hands today. DJ30 +2.16 NASDAQ +4.88 SP500 +3.03 NASDAQ Dec/Adv/Vol 1322/1668/1.30 bln NYSE Dec/Adv/Vol 1253/1948/860 mln
2:00 pm : Directionless trading continues to plague today's action as participants have few catalysts to push the indices more convincingly in either direction. Meanwhile, investors are sifting through remarks from Dallas Fed President Fisher; however, no surprises from the typically hawkish Fed official have given investors little to trade on.
On a positive note, Fisher said U.S growth will pick up through the year, citing the 'rather strong' March employment report; but he also noted the Fed has 'more work to do' on inflation. Not even bonds have budged on Fisher's comments as the 10-year note is still up 5 ticks to yield 4.72%. DJ30 -3.85 NASDAQ +3.24 SP500 +2.14 NASDAQ Dec/Adv/Vol 1331/1640/1.18 bln NYSE Dec/Adv/Vol 1249/1932/778 mln
1:30 pm : Not much has changed as the major averages remain mired in relatively narrow trading ranges. The Dow inched into positive territory within the last 15 minutes, but its recovery was short-lived and based almost entirely on Exxon Mobil (XOM 77.76 +0.96) hitting fresh session highs (+1.3%).
Seventeen of the Dow's 30 components remain negative. The S&P 500 and Nasdaq are still in the green, but their paltry 0.15% gains offer little confidence that either will finish the day in positive fashion. DJ30 -6.07 NASDAQ +4.08 SP500 +2.17 XOI +1.0% NASDAQ Dec/Adv/Vol 1357/1612/1.10 bln NYSE Dec/Adv/Vol 1312/1869/720 mln
1:00 pm : More of the same for stocks as split sector leadership further underscores the lack of conviction on the either the bullish or bearish side of the aisle. Crude for May delivery recently hitting session highs (+1.1%) has given the Energy sector an added boost.
However, with only a 10% weighting on the S&P 500, Energy's 1.2% advance is hardly enough to offset weakness in Tech, Health Care, Industrials and Discretionary, which combine to account for nearly 50% of the total influence on the broader market. DJ30 -14.47 NASDAQ +2.82 SP500 +0.48 NASDAQ Dec/Adv/Vol 1276/1655/1.00 bln NYSE Dec/Adv/Vol 1229/1920/650 mln
12:30 pm : No real change in the proceedings as the afternoon session gets underway and investors lack the catalysts needed to support last week's surprise rally. Meanwhile, Health Care has recently turned positive, but only enough to inch just above the flat line.
Fortunately for the bulls, today's biggest disappointments are coming from two of the least influential sectors -- Materials (-0.6%) and Telecom (-0.4%). Pullbacks in both, though, aren't a big surprise since their impressive year-to-date returns of 11.1% and 6.5%, respectively, just three months into 2007 are likely to invite some profit taking. DJ30 -10.32 NASDAQ +3.52 SP500 +0.83 NASDAQ Dec/Adv/Vol 1289/1616/906 mln NYSE Dec/Adv/Vol 1277/1854/584 mln
12:00 pm : The major averages are mixed midday, but that's not all that surprising given the sizable market gains of late, a lack of corporate news, no scheduled economic data, and the sense of caution that typically precedes the start of earnings season. Alcoa (AA 34.72 -0.15), this year's best performing Dow component (+16.8%), will officially kick things off when it reports Q1 results after the bell tonight.
Meanwhile, Technology has been in focus following upgrades on a handful of notable names (e.g. ORCL +0.9%, AMAT +2.8%, and ADSK +2.9%) and upbeat analyst commentary on Intel (INTC 20.29 +0.19). However, Seagate Technology (STX 21.30 -2.16) warning that Q3 revenue will miss forecasts has left investors questioning the sector's growth prospects. Tech is expected to be one of the S&P 500's biggest earnings drivers this year
A market increasingly sensitive to weak data, especially from the housing sector, has used a 37% drop in Q2 net sales orders at D.R. Horton (DHI 21.68 -0.36) as a reason to keep selling homebuilders, this year's worst performing S&P industry group (-20.2%). A report from Equifax/Moody's that showed the national mortgage delinquency rate hit an all-time high of 2.87% in Q1 is also weighing on sentiment and removing leadership from Consumer Discretionary.
Of the four sectors trading higher, Energy is the only one posting a respectable gain; but its 0.8% advance is also coming at the expense of a rebound in oil prices, which is bearish for equities. DJ30 -13.41 DJTA -0.2% DJUA +0.1% DOT +0.2% NASDAQ +3.12 NQ100 +0.1% R2K +0.3% SOX +0.1% SP400 +0.2% SP500 +0.31 XOI +0.5% NASDAQ Dec/Adv/Vol 1246/1611/798 mln NYSE Dec/Adv/Vol 1165/1924/506 mln
11:30 am : Sellers show some resolve since the last update, but only enough to push the Dow below the flat line. Reversals in the Technology and Consumer Discretionary sectors remove some notable leadership. The latter sector is expected to post a 10% decline in Q1 earnings while Tech is expected to have the second best quarter with 10% EPS growth.
However, Seagate Technology's (STX 21.38 -2.08) warning and some more discouraging developments in the housing sector leave some investors questioning whether those forecasts should be revised lower. DJ30 -4.72 NASDAQ +4.52 SP500 +1.78 NASDAQ Dec/Adv/Vol 1184/1649/700 mln NYSE Dec/Adv/Vol 1117/1962/430 mln
11:00 am : The major averages are off their best levels but still trading in positive territory. Albeit up only 10 points, the Dow is only 53 points away from where it closed on February 26 -- the day before the global sell-off.
The Dow is also positioned to extend a seven-day winning streak to eight days, something that hasn't happened in four years, while the Nasdaq, whose six-day winning streak was snapped yesterday, remains today's best performer among the majors. DJ30 +10.20 NASDAQ +7.53 SP500 +3.36 NASDAQ Dec/Adv/Vol 1040/1717/512 mln NYSE Dec/Adv/Vol 973/2000/310 mln
10:30 am : Stocks have inched higher since the last update but hardly enough to make a significant change in the standings. A turnaround in Technology, fueled primarily by several analyst upgrades (e.g. ORCL +1.2%, AMAT +2.4%, and ADSK +3.0%), has been the most noticeable reason behind the market's improvement.
Renewed enthusiasm for beaten-down brokerage and bank stocks, providing a floor of support for Financials, is also giving the market a lift. DJ30 +14.35 NASDAQ +9.25 SP500 +3.79 NASDAQ Dec/Adv/Vol 1017/1642/378 mln NYSE Dec/Adv/Vol 1042/1806/210 mln
10:00 am : The indices remain on the offensive but are still struggling to find much conviction on the part of buyers. Of the six sectors trading higher, Energy is the only one posting a respectable gain; but its modest 0.5% advance is also coming at the expense of rising oil prices, which are bearish for equities.
Health Care is catching a bid as drug stocks get a lift after Mylan Labs (MYL 22.07 +0.87) raised its fiscal 2007 EPS guidance; but the absence of leadership from the influential Tech sector is minimizing market gains. Seagate Technology (STX 21.54 -1.92) warning that Q3 revenue will miss forecasts leaves investors questioning the growth prospects of what is expected to be one of the S&P 500's biggest earnings drivers this year. DJ30 +8.64 NASDAQ +4.71 SP500 +1.95 NASDAQ Dec/Adv/Vol 914/1538/176 mln NYSE Dec/Adv/Vol 923/1601/62 mln
09:40 am : With little in the way of corporate news and no economic reports on the docket today, stocks open with little fanfare. As a reminder, the market's main focus will shift from macro-economic issues to earnings over the next few weeks.
Thus, with a winning streak of 14 straight quarters of double-digit profit growth for the S&P 500 likely to be snapped, investors are anxiously waiting for results from Alcoa (AA 34.86 -0.01) after the bell tonight to officially kick off the first-quarter earnings season and perhaps provide some insight into the health of the economy. Separately, the market is sifting through some testimony from Fed Governor Mishkin; however, his prepared remarks have failed to offer any surprises. DJ30 +1.97 NASDAQ +2.30 SP500 +0.56 NASDAQ Vol 68 mln NYSE Vol 42 mln
09:15 am : S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -1.2.
09:00 am : S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -0.8. Still shaping up to be a lackluster open for equities as investors lack the market-moving news items needed to build onto last week's sizable gains. One issue underpinning a cautious tone has been a report from Equifax/Moody's that showed the national mortgage delinquency rate hit an all-time high of 2.87% in Q1. Participants may also be anxiously waiting for some Fedspeak today to get some insight into upcoming monetary policy decisions. Fed Governor Mishkin will speak at 9:30 ET while Dallas Fed President Fisher's prepared remarks are scheduled to hit the wires around 13:20 ET.
08:30 am : S&P futures vs fair value: +0.4. Nasdaq futures vs fair value: +0.2. The futures market continues to languish around fair value, indicating a sluggish start for the major averages. Meanwhile, Seagate Technology (STX) warning that Q3 revenue will miss forecasts puts Technology's growth prospects under the microscope; but multiple analyst upgrades in the sector (e.g. ORCL, AMAT, ADSK, and AMD) may act as offsetting factors.
08:00 am : S&P futures vs fair value: -0.1. Nasdaq futures vs fair value: +0.5. Early indications are pointing to a relatively flat start for stocks. That's not all that surprising, though, since there aren't any economic reports scheduled for release today and the first-quarter earnings season doesn't officially get underway until Alcoa (AA) releasing results after the bell tonight. Over the next few weeks investors will be closely watching to see how weakness in the housing and manufacturing sectors has impacted corporate growth. Expectations are for Q1 operating earnings for the S&P 500 in aggregate to increase only 3% to 4% over the same quarter of 2006. That's the lowest level of growth in five years.
06:21 am : S&P futures vs fair value: +2.2. Nasdaq futures vs fair value: +2.3.
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