AI
Tuesday, April 17, 2007 7:07:31 PM
Market Update 070417
http://biz.yahoo.com/mu/update.html
4:20 pm : The major averages closed in split fashion Tuesday as investors weighed another round of upbeat earnings reports and tame inflation data against the temptation to lock in some of the market's recent gains. As a reminder, the Dow, S&P 500 and Nasdaq have climbed roughly 3.6% on average during the month of April amid heightened expectations Wall Street analysts may have revised their earnings estimates too low.
Meanwhile, with policy makers recently emphasizing their inflation concerns, and the monthly CPI report's ability to influence monetary decision making, early indications were signaling a lower start for stocks. The market's sizable gains a day earlier and the Dow less than 60 points away from its all-time closing high also contributed to the lack of buying interest at the onset of trading.
Core consumer prices rising a lower than expected 0.1%, though, helped to ease renewed fears about pricing pressures and provided a floor of buying support. In the end, however, the soft number, coupled with rising energy costs that left total CPI with its biggest increase (+0.6%) since last April, did not exactly signal that inflation is back under control. The recent uptrend in energy prices threatens to raise overall inflation pressures and keep the core trends above Fed targets.
Further proof of stabilization in housing, following unexpected 0.8% increases in monthly starts and permits, was also encouraging; but the data merely prompted bargain-hunting interest in Homebuilding (+2.8%), this year's worst performing S&P industry group (-17.9%).
The bigger story Tuesday was earnings. Coca-Cola (KO 51.62 +1.35) and Johnson & Johnson (JNJ 64.60 +1.58), which topped Wall Street expectations, were the biggest reasons behind the Dow briefly eclipsing its all-time closing high of 12,786.64 (Feb.20). While both blue chips acted as notable sources of support for their respective Consumer Staples and Health Care sectors, the defensive nature of both stocks suggested there was less conviction in today's follow-through buying efforts. Coca-Cola and J&J accounted for nearly half of the Dow's 52-point advance.
Technology was also in focus as investors placed their bets on solid earnings reports from tech bellwethers like IBM (IBM 97.16 +0.98) and Intel (INTC 20.97 +0.28). Average gains of more than 1.0% from each Dow component, which were scheduled to report after the bell, accounted for another 10 Dow points. DJ30 +52.58 NASDAQ -1.38 SP500 +3.01 NASDAQ Dec/Adv/Vol 1751/1278/1.92 bln NYSE Dec/Adv/Vol 1685/1589/1.47 bln
3:30 pm : The blue-chip averages remain poised to close higher, albeit off their highs, with the Dow on pace to finish with its 12th advance in 13 sessions. The Nasdaq, however, is still exhibiting a lack of conviction from either buyers or sellers, as it languishes around the unchanged mark with 30 minutes left in the trading day anda slew of tech earnings out after the bell.
Adding to the market's recent struggles have been the Dow, S&P 500 and Nasdaq's inability to break through key resistance levels of 12780, 1473 and 2524, respectively. DJ30 +49.01 NASDAQ -2.20 SP500 +1.79 NASDAQ Dec/Adv/Vol 1702/1286/1.57 bln NYSE Dec/Adv/Vol 1643/1594/1.20 bln
3:00 pm : Slowly but surely stocks are trending higher heading into the final hour of trading. Oil prices recently settling near their lows of the session, down 0.8% near $63/bbl after being up as much as 1.6% earlier, have given the market an added boost.
As evidenced by the Nasdaq inching back above the flat line, upward momentum in Technology (+0.4%) has been the bigger story. Investors already exhibiting a fair amount of optimism heading into the Q1 earnings season are placing their bets on solid reports from tech bellwethers like Intel (INTC 20.94 +0.25), IBM (IBM 97.53 +1.35) and Yahoo! (YHOO 32.04 +0.43). All three report quarterly results after the close.DJ30 +62.90 NASDAQ +0.52 SP500 +3.84 NASDAQ Dec/Adv/Vol 1706/1281/1.46 bln NYSE Dec/Adv/Vol 1688/1528/1.11 bln
2:30 pm : The indices are trading at improved levels but the blue-chip averages and Nasdaq continue to trade in opposing directions. The Dow is again flirting with record territory and still the best performer among the majors.
Be that as it may, a modest 0.5% advance fueled largely by a rally in two defensive-oriented components (e.g. KO +2.7%, JNJ +3.0%) does not exactly provide overwhelming conviction on the part of the bulls. Coca-Cola (KO 51.61 +1.34) and Johnson & Johnson (JNJ 64.92 +1.90) currently account for nearly half of the Dow's 61-point advance. DJ30 +61.08 NASDAQ -0.68 SP500 +3.54 NASDAQ Dec/Adv/Vol 1718/1279/1.34 bln NYSE Dec/Adv/Vol 1720/1484/1.02 bln
2:00 pm : Stocks are bouncing off their afternoon lows but hardly enough to make a significant change in the standings. Oil prices recently turning negative has helped provide a floor of buying support.
However, further consolidation throughout the Energy sector (-0.6%), especially among Refiners (-2.4%) -- today's second worst performing S&P industry group, is countering the diminished inflationary potential attributed to rising oil prices. Coal & Consumable Fuel (-2.2%) and Drillers (-1.7%) are also among today's biggest laggards.DJ30 +41.42 NASDAQ -4.78 SP500 +1.43 NASDAQ Dec/Adv/Vol 1751/1212/1.19 bln NYSE Dec/Adv/Vol 1796/1407/932 mln
1:30 pm : More of the same for stocks as market sentiment continues to deteriorate. As reflected in the A/D line, decliners on the NYSE now outpace advancers by a slim 16-to-15 margin while those on the Nasdaq now hold a wider 17-to-11 margin.
The very narrow ratio of up to down volume further dictates the sense of reserve on the part of buyers as the sustainability of gains seen yesterday and over the course of the past few weeks come into question. The Dow, S&P 500 and Nasdaq have climbed 3.4% on average during the month of April alone amid heightened expectations the first quarter won't be as bad as initially thought. DJ30 +34.63 NASDAQ -5.96 SP500 +0.66 NASDAQ Dec/Adv/Vol 1675/1279/1.10 bln NYSE Dec/Adv/Vol 1647/1533/852 mln
1:00 pm : Sellers show some resolve within the last 30 minutes, pushing the indices to afternoon lows. As evidenced by the reversal on the Nasdaq, the Tech sector relinquishing most of its intraday advance to now trade relatively flat is contributing to the market's pullback.
The Energy sector (-0.2%) recently slipping into negative territory, despite oil prices holding near $64/bbl, is also removing some notable leadership. Crude for May delivery is off its best levels but still up 0.6% at $63.98/bbl ahead of a report tomorrow that may show gasoline inventories fell for a 10th straight week. DJ30 +46.16 NASDAQ -4.22 SP500 +2.04 NASDAQ Dec/Adv/Vol 1599/1307/972 mln NYSE Dec/Adv/Vol 1504/1637/750 mln
12:30 pm : Not much has changed since the last update as traders make their way through the New York lunch hour. Meanwhile, aside from oil prices hovering above $64/bbl (+1.0%) giving investors an excuse to consolidate recent gains that have lifted the Dow Jones Transportation Average nearly 12% already this year, an analyst downgrade on Burlington Northern Santa Fe (BNI 92.22 -1.23) has placed added pressure on Railroads (-1.1%).
The latter is among today's worst performing S&P industry groups and contributing to the lack of upside leadership from Industrials. A valuation-based downgrade on Eaton Corp (ETN 86.52 -0.98), which surged 2.7% yesterday to a new all-time high following an upbeat Q1 report, has also stalled momentum in the economically-sensitive sector. DJ30 +60.29 DJTA -0.2% NASDAQ +0.54 SP500 +4.30 NASDAQ Dec/Adv/Vol 1584/1309/878 mln NYSE Dec/Adv/Vol 1488/1636/676 mln
12:00 pm : The indices are building on yesterday's sizable gains and holding onto the bulk of today's modest advance midday as investors embrace another batch of solid earnings reports and a triumvirate of encouraging economic data.
With policy makers recently emphasizing its inflation concerns and the ability of monthly CPI data to influence Fed policy, core consumer prices rising just 0.1% have helped to ease heightened fears about pricing pressures. Capacity utilization falling to 81.4% (consensus 81.9%) from a revised 81.6% is also good news on the inflation front. Further proof of stabilization in housing, following unexpected 0.8% increases in monthly starts and permits, has also been encouraging.
On the earnings front, Coca- Cola (KO 51.78 +1.51) and Johnson & Johnson (JNJ 64.86 +1.84), which topped Wall Street expectations, are the biggest reasons behind the Dow recently eclipsing its all-time closing high of 12,786.64 (Feb.20). While both blue chips have acted as notable sources of support for their respective Staples and Health Care sectors, follow through in Financials and Technology is even more noteworthy. Bank earnings that were initially viewed as mediocre gave investors a reason early on to consolidate some of the Financials sector's surprising 2.1% advance yesterday.
However, strength among asset managers (e.g. STT, MEL, and NTRS) following solid earnings and a decline in borrowing costs have helped the rate-sensitive sector turn the corner and provide some influential leadership. The 10-year note is up 12 ticks following this morning's tame read on consumer inflation, pushing the yield down to 4.68%. DJ30 +63.79 NASDAQ +2.08 SP500 +4.85 NASDAQ Dec/Adv/Vol 1540/1335/770 mln NYSE Dec/Adv/Vol 1415/1696/584 mln
11:30 am : The blue-chip averages are off their recent highs but are still turning in a respectable performance, especially given early temptations to lock in some of yesterday's sizable gains. The Nasdaq, however, hasn't been so lucky as it now languishes near the unchanged mark.
Weakness in the tech-heavy Composite isn't overly shocking, though, since its year-to-date advance of 4.3% still outpaces 2007 gains of 2.5% and 3.8% for the Dow and S&P 500, respectively. It is worth noting that the S&P 400 MidCap Index and Russell 2000 small-cap index are also trading fairly flat on the day, but both closed at all-time highs yesterday. DJ30 +49.49 NASDAQ +0.09 SP500 +4.10 NASDAQ Dec/Adv/Vol 1532/1296/668 mln NYSE Dec/Adv/Vol 1299/1729/498 mln
11:00 am : The indices are extending their reach to the upside as the market's recent momentum evidently remains intact. On the Dow, 17 of 30 components are now trading higher and leave the blue-chip index well within striking distance of eclipsing its all-time closing high of 12,786.64, which was reached on February 20.
After opening at a new multi-year high after posting a 14% rise in Q1 profits, Coca- Cola (KO 51.68 +1.41) paces the way with a 2.8% advance while Johnson & Johnson (JNJ 64.60 +1.58) ranks second (+2.5%) following its solid Q1 report. Home Depot (HD 39.27 +0.71) is another noticeable gainer (+1.8%), getting some help following further evidence of stabilization in housing. DJ30 +60.41 NASDAQ +3.74 SP500 +5.31 NASDAQ Dec/Adv/Vol 1514/1253/538 mln NYSE Dec/Adv/Vol 1356/1623/390 mln
10:30 am : So much for the absence of key leadership stalling yesterday’s momentum. Within the last 30 minutes, the Financials and Technology sectors turning positive have given the market a nice boost.
After being down more than 1.0% earlier, Citigroup (C 52.90 -0.03) now trading relatively flat is contributing to the sector’s recovery effort, as is Moody's Corp (MCO 70.35 +4.66). The latter has spiked higher since the last update and is now tacking a 7.0% surge onto yesterday’s upgrade-induced 4.6% advance.
DJ30 +43.64 NASDAQ +1.37 SP500 +3.92 NASDAQ Dec/Adv/Vol 1476/1225/382 mln NYSE Dec/Adv/Vol 1315/1601/256 mln
10:00 am : Investors still don't appear overly convinced that today's economic and earnings data are encouraging enough to keep buying efforts on track. The Dow and S&P 500 have recently joined the Nasdaq in negative territory amid the lack of leadership from three of the four most heavily-weighted sectors. A number of banks (e.g. MTB, STI, and WFC) and asset managers (e.g. STT, MEL, NTRS) turned in better-than-expected earnings; but the huge 2.1% advance in Financials yesterday suggests investors already priced in the upside surprises. Citigroup (C 52.52 -0.41) is consolidating some of yesterday's earnings-induced 2.6% surge.
Technology and Industrials are two other notable weak spots offsetting a modest 0.5% advance in Health Care. The latter is getting its biggest lift after Dow component Johnson & Johnson (JNJ 64.97 +1.95) handily topped Wall Street expectations. Analyst upgrades on Medtronic (MDT 51.92 +0.52) and St. Jude Medical (STJ 41.50 +0.58) are providing additional sector support. DJ30 -8.57 NASDAQ -6.24 SP500 -1.12 NASDAQ Dec/Adv/Vol 1532/995/170 mln NYSE Dec/Adv/Vol 1236/1413/86 mln
09:40 am : Despite upbeat economic data and another batch of solid earnings reports, stocks open in lackluster fashion. Given Monday's broad-based rally and the Dow less than 60 points away from its all-time closing high, it's not a big surprise to see stocks taking somewhat of a breather. On the economic front, core CPI rising just 0.1% (consensus 0.2%) has brought the year/year increase down slightly to 2.5% from 2.6%, easing recently heightened inflation concerns. Some stabilization in the housing sector, following an unexpected 0.8% rise in starts, has also been encouraging.
Nonetheless, with economic data taking more of a backseat to quarterly results over the next couple of weeks, it appears investors are waiting to get more validation on the earnings front before aggressively committing new money to a market that looks ripe for a pullback. DJ30 +6.71 NASDAQ -3.30 SP500 +0.70 NASDAQ Vol 88 mln NYSE Vol 46 mln
09:17 am : S&P futures vs fair value: +2.6. Nasdaq futures vs fair value: +3.5. Stocks still look to open on an upbeat note as investors sift through the day's last scheduled economic report. March Industrial Production fell 0.2% (consensus 0.0%); but Capacity Utilization, a key inflation gauge, fell to 81.4% (consensus 81.9%) from a revised 81.6%.
09:00 am : S&P futures vs fair value: +2.2. Nasdaq futures vs fair value: +4.5. The stage remains set for stocks to pick up where they left off yesterday, trading higher, as futures indications remain above fair value. While good news on the inflation front and more evidence of stabilization in housing remain the biggest catalysts behind the positive disposition, solid earnings reports continue to sideline the worst of fears about decelerating profit growth. With nearly half of the Dow posting results this week, Coca-Cola (KO) and Johnson & Johnson (JNJ) topping Wall Street expectations should help the Dow garner some of the roughly 67 points needed to surpass its record closing high (Feb. 20).
08:35 am : S&P futures vs fair value: +1.4. Nasdaq futures vs fair value: +3.3. Futures trade spikes higher following encouraging economic data, now suggesting a slightly higher start for stocks. Total CPI rose 0.6% (consensus 0.6%) in March, the most since April 2006; but the more closely-watched core rate rose just 0.1% (consensus 0.2%).
That lowers the year/year rate to 2.5%, easing recently heightened inflation concerns. Housing starts unexpectedly rose 0.8% to 1.518 mln (consensus 1.50 mln), the highest level this year, while building permits also rose 0.8% to 1.544 mln (consensus 1.515 mln). Bonds have strengthened in response to the tame inflation read; the 10-year note is now up 7 ticks to yield 4.70%.
08:00 am : S&P futures vs fair value: -4.3. Nasdaq futures vs fair value: -5.2. So much for Monday's rally carrying over into this morning's opening bell as futures indications signal a lower start for stocks. That's not all that surprising, though, given the temptation to take some money off the table following such sizable gains a day earlier.
http://biz.yahoo.com/mu/update.html
4:20 pm : The major averages closed in split fashion Tuesday as investors weighed another round of upbeat earnings reports and tame inflation data against the temptation to lock in some of the market's recent gains. As a reminder, the Dow, S&P 500 and Nasdaq have climbed roughly 3.6% on average during the month of April amid heightened expectations Wall Street analysts may have revised their earnings estimates too low.
Meanwhile, with policy makers recently emphasizing their inflation concerns, and the monthly CPI report's ability to influence monetary decision making, early indications were signaling a lower start for stocks. The market's sizable gains a day earlier and the Dow less than 60 points away from its all-time closing high also contributed to the lack of buying interest at the onset of trading.
Core consumer prices rising a lower than expected 0.1%, though, helped to ease renewed fears about pricing pressures and provided a floor of buying support. In the end, however, the soft number, coupled with rising energy costs that left total CPI with its biggest increase (+0.6%) since last April, did not exactly signal that inflation is back under control. The recent uptrend in energy prices threatens to raise overall inflation pressures and keep the core trends above Fed targets.
Further proof of stabilization in housing, following unexpected 0.8% increases in monthly starts and permits, was also encouraging; but the data merely prompted bargain-hunting interest in Homebuilding (+2.8%), this year's worst performing S&P industry group (-17.9%).
The bigger story Tuesday was earnings. Coca-Cola (KO 51.62 +1.35) and Johnson & Johnson (JNJ 64.60 +1.58), which topped Wall Street expectations, were the biggest reasons behind the Dow briefly eclipsing its all-time closing high of 12,786.64 (Feb.20). While both blue chips acted as notable sources of support for their respective Consumer Staples and Health Care sectors, the defensive nature of both stocks suggested there was less conviction in today's follow-through buying efforts. Coca-Cola and J&J accounted for nearly half of the Dow's 52-point advance.
Technology was also in focus as investors placed their bets on solid earnings reports from tech bellwethers like IBM (IBM 97.16 +0.98) and Intel (INTC 20.97 +0.28). Average gains of more than 1.0% from each Dow component, which were scheduled to report after the bell, accounted for another 10 Dow points. DJ30 +52.58 NASDAQ -1.38 SP500 +3.01 NASDAQ Dec/Adv/Vol 1751/1278/1.92 bln NYSE Dec/Adv/Vol 1685/1589/1.47 bln
3:30 pm : The blue-chip averages remain poised to close higher, albeit off their highs, with the Dow on pace to finish with its 12th advance in 13 sessions. The Nasdaq, however, is still exhibiting a lack of conviction from either buyers or sellers, as it languishes around the unchanged mark with 30 minutes left in the trading day anda slew of tech earnings out after the bell.
Adding to the market's recent struggles have been the Dow, S&P 500 and Nasdaq's inability to break through key resistance levels of 12780, 1473 and 2524, respectively. DJ30 +49.01 NASDAQ -2.20 SP500 +1.79 NASDAQ Dec/Adv/Vol 1702/1286/1.57 bln NYSE Dec/Adv/Vol 1643/1594/1.20 bln
3:00 pm : Slowly but surely stocks are trending higher heading into the final hour of trading. Oil prices recently settling near their lows of the session, down 0.8% near $63/bbl after being up as much as 1.6% earlier, have given the market an added boost.
As evidenced by the Nasdaq inching back above the flat line, upward momentum in Technology (+0.4%) has been the bigger story. Investors already exhibiting a fair amount of optimism heading into the Q1 earnings season are placing their bets on solid reports from tech bellwethers like Intel (INTC 20.94 +0.25), IBM (IBM 97.53 +1.35) and Yahoo! (YHOO 32.04 +0.43). All three report quarterly results after the close.DJ30 +62.90 NASDAQ +0.52 SP500 +3.84 NASDAQ Dec/Adv/Vol 1706/1281/1.46 bln NYSE Dec/Adv/Vol 1688/1528/1.11 bln
2:30 pm : The indices are trading at improved levels but the blue-chip averages and Nasdaq continue to trade in opposing directions. The Dow is again flirting with record territory and still the best performer among the majors.
Be that as it may, a modest 0.5% advance fueled largely by a rally in two defensive-oriented components (e.g. KO +2.7%, JNJ +3.0%) does not exactly provide overwhelming conviction on the part of the bulls. Coca-Cola (KO 51.61 +1.34) and Johnson & Johnson (JNJ 64.92 +1.90) currently account for nearly half of the Dow's 61-point advance. DJ30 +61.08 NASDAQ -0.68 SP500 +3.54 NASDAQ Dec/Adv/Vol 1718/1279/1.34 bln NYSE Dec/Adv/Vol 1720/1484/1.02 bln
2:00 pm : Stocks are bouncing off their afternoon lows but hardly enough to make a significant change in the standings. Oil prices recently turning negative has helped provide a floor of buying support.
However, further consolidation throughout the Energy sector (-0.6%), especially among Refiners (-2.4%) -- today's second worst performing S&P industry group, is countering the diminished inflationary potential attributed to rising oil prices. Coal & Consumable Fuel (-2.2%) and Drillers (-1.7%) are also among today's biggest laggards.DJ30 +41.42 NASDAQ -4.78 SP500 +1.43 NASDAQ Dec/Adv/Vol 1751/1212/1.19 bln NYSE Dec/Adv/Vol 1796/1407/932 mln
1:30 pm : More of the same for stocks as market sentiment continues to deteriorate. As reflected in the A/D line, decliners on the NYSE now outpace advancers by a slim 16-to-15 margin while those on the Nasdaq now hold a wider 17-to-11 margin.
The very narrow ratio of up to down volume further dictates the sense of reserve on the part of buyers as the sustainability of gains seen yesterday and over the course of the past few weeks come into question. The Dow, S&P 500 and Nasdaq have climbed 3.4% on average during the month of April alone amid heightened expectations the first quarter won't be as bad as initially thought. DJ30 +34.63 NASDAQ -5.96 SP500 +0.66 NASDAQ Dec/Adv/Vol 1675/1279/1.10 bln NYSE Dec/Adv/Vol 1647/1533/852 mln
1:00 pm : Sellers show some resolve within the last 30 minutes, pushing the indices to afternoon lows. As evidenced by the reversal on the Nasdaq, the Tech sector relinquishing most of its intraday advance to now trade relatively flat is contributing to the market's pullback.
The Energy sector (-0.2%) recently slipping into negative territory, despite oil prices holding near $64/bbl, is also removing some notable leadership. Crude for May delivery is off its best levels but still up 0.6% at $63.98/bbl ahead of a report tomorrow that may show gasoline inventories fell for a 10th straight week. DJ30 +46.16 NASDAQ -4.22 SP500 +2.04 NASDAQ Dec/Adv/Vol 1599/1307/972 mln NYSE Dec/Adv/Vol 1504/1637/750 mln
12:30 pm : Not much has changed since the last update as traders make their way through the New York lunch hour. Meanwhile, aside from oil prices hovering above $64/bbl (+1.0%) giving investors an excuse to consolidate recent gains that have lifted the Dow Jones Transportation Average nearly 12% already this year, an analyst downgrade on Burlington Northern Santa Fe (BNI 92.22 -1.23) has placed added pressure on Railroads (-1.1%).
The latter is among today's worst performing S&P industry groups and contributing to the lack of upside leadership from Industrials. A valuation-based downgrade on Eaton Corp (ETN 86.52 -0.98), which surged 2.7% yesterday to a new all-time high following an upbeat Q1 report, has also stalled momentum in the economically-sensitive sector. DJ30 +60.29 DJTA -0.2% NASDAQ +0.54 SP500 +4.30 NASDAQ Dec/Adv/Vol 1584/1309/878 mln NYSE Dec/Adv/Vol 1488/1636/676 mln
12:00 pm : The indices are building on yesterday's sizable gains and holding onto the bulk of today's modest advance midday as investors embrace another batch of solid earnings reports and a triumvirate of encouraging economic data.
With policy makers recently emphasizing its inflation concerns and the ability of monthly CPI data to influence Fed policy, core consumer prices rising just 0.1% have helped to ease heightened fears about pricing pressures. Capacity utilization falling to 81.4% (consensus 81.9%) from a revised 81.6% is also good news on the inflation front. Further proof of stabilization in housing, following unexpected 0.8% increases in monthly starts and permits, has also been encouraging.
On the earnings front, Coca- Cola (KO 51.78 +1.51) and Johnson & Johnson (JNJ 64.86 +1.84), which topped Wall Street expectations, are the biggest reasons behind the Dow recently eclipsing its all-time closing high of 12,786.64 (Feb.20). While both blue chips have acted as notable sources of support for their respective Staples and Health Care sectors, follow through in Financials and Technology is even more noteworthy. Bank earnings that were initially viewed as mediocre gave investors a reason early on to consolidate some of the Financials sector's surprising 2.1% advance yesterday.
However, strength among asset managers (e.g. STT, MEL, and NTRS) following solid earnings and a decline in borrowing costs have helped the rate-sensitive sector turn the corner and provide some influential leadership. The 10-year note is up 12 ticks following this morning's tame read on consumer inflation, pushing the yield down to 4.68%. DJ30 +63.79 NASDAQ +2.08 SP500 +4.85 NASDAQ Dec/Adv/Vol 1540/1335/770 mln NYSE Dec/Adv/Vol 1415/1696/584 mln
11:30 am : The blue-chip averages are off their recent highs but are still turning in a respectable performance, especially given early temptations to lock in some of yesterday's sizable gains. The Nasdaq, however, hasn't been so lucky as it now languishes near the unchanged mark.
Weakness in the tech-heavy Composite isn't overly shocking, though, since its year-to-date advance of 4.3% still outpaces 2007 gains of 2.5% and 3.8% for the Dow and S&P 500, respectively. It is worth noting that the S&P 400 MidCap Index and Russell 2000 small-cap index are also trading fairly flat on the day, but both closed at all-time highs yesterday. DJ30 +49.49 NASDAQ +0.09 SP500 +4.10 NASDAQ Dec/Adv/Vol 1532/1296/668 mln NYSE Dec/Adv/Vol 1299/1729/498 mln
11:00 am : The indices are extending their reach to the upside as the market's recent momentum evidently remains intact. On the Dow, 17 of 30 components are now trading higher and leave the blue-chip index well within striking distance of eclipsing its all-time closing high of 12,786.64, which was reached on February 20.
After opening at a new multi-year high after posting a 14% rise in Q1 profits, Coca- Cola (KO 51.68 +1.41) paces the way with a 2.8% advance while Johnson & Johnson (JNJ 64.60 +1.58) ranks second (+2.5%) following its solid Q1 report. Home Depot (HD 39.27 +0.71) is another noticeable gainer (+1.8%), getting some help following further evidence of stabilization in housing. DJ30 +60.41 NASDAQ +3.74 SP500 +5.31 NASDAQ Dec/Adv/Vol 1514/1253/538 mln NYSE Dec/Adv/Vol 1356/1623/390 mln
10:30 am : So much for the absence of key leadership stalling yesterday’s momentum. Within the last 30 minutes, the Financials and Technology sectors turning positive have given the market a nice boost.
After being down more than 1.0% earlier, Citigroup (C 52.90 -0.03) now trading relatively flat is contributing to the sector’s recovery effort, as is Moody's Corp (MCO 70.35 +4.66). The latter has spiked higher since the last update and is now tacking a 7.0% surge onto yesterday’s upgrade-induced 4.6% advance.
DJ30 +43.64 NASDAQ +1.37 SP500 +3.92 NASDAQ Dec/Adv/Vol 1476/1225/382 mln NYSE Dec/Adv/Vol 1315/1601/256 mln
10:00 am : Investors still don't appear overly convinced that today's economic and earnings data are encouraging enough to keep buying efforts on track. The Dow and S&P 500 have recently joined the Nasdaq in negative territory amid the lack of leadership from three of the four most heavily-weighted sectors. A number of banks (e.g. MTB, STI, and WFC) and asset managers (e.g. STT, MEL, NTRS) turned in better-than-expected earnings; but the huge 2.1% advance in Financials yesterday suggests investors already priced in the upside surprises. Citigroup (C 52.52 -0.41) is consolidating some of yesterday's earnings-induced 2.6% surge.
Technology and Industrials are two other notable weak spots offsetting a modest 0.5% advance in Health Care. The latter is getting its biggest lift after Dow component Johnson & Johnson (JNJ 64.97 +1.95) handily topped Wall Street expectations. Analyst upgrades on Medtronic (MDT 51.92 +0.52) and St. Jude Medical (STJ 41.50 +0.58) are providing additional sector support. DJ30 -8.57 NASDAQ -6.24 SP500 -1.12 NASDAQ Dec/Adv/Vol 1532/995/170 mln NYSE Dec/Adv/Vol 1236/1413/86 mln
09:40 am : Despite upbeat economic data and another batch of solid earnings reports, stocks open in lackluster fashion. Given Monday's broad-based rally and the Dow less than 60 points away from its all-time closing high, it's not a big surprise to see stocks taking somewhat of a breather. On the economic front, core CPI rising just 0.1% (consensus 0.2%) has brought the year/year increase down slightly to 2.5% from 2.6%, easing recently heightened inflation concerns. Some stabilization in the housing sector, following an unexpected 0.8% rise in starts, has also been encouraging.
Nonetheless, with economic data taking more of a backseat to quarterly results over the next couple of weeks, it appears investors are waiting to get more validation on the earnings front before aggressively committing new money to a market that looks ripe for a pullback. DJ30 +6.71 NASDAQ -3.30 SP500 +0.70 NASDAQ Vol 88 mln NYSE Vol 46 mln
09:17 am : S&P futures vs fair value: +2.6. Nasdaq futures vs fair value: +3.5. Stocks still look to open on an upbeat note as investors sift through the day's last scheduled economic report. March Industrial Production fell 0.2% (consensus 0.0%); but Capacity Utilization, a key inflation gauge, fell to 81.4% (consensus 81.9%) from a revised 81.6%.
09:00 am : S&P futures vs fair value: +2.2. Nasdaq futures vs fair value: +4.5. The stage remains set for stocks to pick up where they left off yesterday, trading higher, as futures indications remain above fair value. While good news on the inflation front and more evidence of stabilization in housing remain the biggest catalysts behind the positive disposition, solid earnings reports continue to sideline the worst of fears about decelerating profit growth. With nearly half of the Dow posting results this week, Coca-Cola (KO) and Johnson & Johnson (JNJ) topping Wall Street expectations should help the Dow garner some of the roughly 67 points needed to surpass its record closing high (Feb. 20).
08:35 am : S&P futures vs fair value: +1.4. Nasdaq futures vs fair value: +3.3. Futures trade spikes higher following encouraging economic data, now suggesting a slightly higher start for stocks. Total CPI rose 0.6% (consensus 0.6%) in March, the most since April 2006; but the more closely-watched core rate rose just 0.1% (consensus 0.2%).
That lowers the year/year rate to 2.5%, easing recently heightened inflation concerns. Housing starts unexpectedly rose 0.8% to 1.518 mln (consensus 1.50 mln), the highest level this year, while building permits also rose 0.8% to 1.544 mln (consensus 1.515 mln). Bonds have strengthened in response to the tame inflation read; the 10-year note is now up 7 ticks to yield 4.70%.
08:00 am : S&P futures vs fair value: -4.3. Nasdaq futures vs fair value: -5.2. So much for Monday's rally carrying over into this morning's opening bell as futures indications signal a lower start for stocks. That's not all that surprising, though, given the temptation to take some money off the table following such sizable gains a day earlier.
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