AI
Tuesday, May 01, 2007 8:04:41 PM
Market Update 070501
http://biz.yahoo.com/mu/update.html
4:20 pm : After struggling to find their footing all morning and much of the afternoon Tuesday, stocks finally garnered some of the momentum that just helped propel stocks to their best monthly performance since 2003. The underlying bullish momentum vaulted the Dow to another record close, finishing the first trading day in May with its eighth gain over the last ten years.
Absent a catalyst to get buying efforts back on track following a 4.9% decline in March pending home sales and a higher than expected prices paid component in today's ISM Index report feeding into inflation fears, oil prices spiking to session lows late in the day gave investors something to cheer about. Crude for June delivery closed down 2% at $64.40/bbl amid speculation tomorrow's weekly inventories report will show a build in crude supplies. The fact that the Energy sector did not relinquish much in the way of its intraday leadership was also noteworthy.
Of the eight sectors finishing higher, Utilities (+1.1%) continued to provide the safest bet for investors unsure if the two-decade old adage "sell in May and go away" will hold true this year, especially since there is no reason for the stock market to have rallied so strongly in April based on deteriorating fundamentals.
Some more M&A activity also helped to keep sellers sidelined into the close of trading. Dow Jones & Co. (DJ 56.30 +19.97) confirming receipt of an unsolicited $60 per share offer (or roughly $5 bln) from News Corp (NWS 22.99 -1.01) was the day's biggest surprise. Speculation about more consolidation throughout Publishing (+3.7%) helped to offset weakness among retailers like Circuit City (CC 16.55 -0.90), which lowered Q1 expectations and withdrew guidance, and Liz Claiborne (LIZ 37.13 -7.59), which handily missed analysts' expectations.
Microsoft (MSFT 30.40 +0.46) also made news on the M&A front, and the bellwether's 1.5% surge was an integral part of the leadership exhibited by Technology Tuesday. Shareholders applauded reports that Microsoft may make a bid for 24/7 Real Media (TFSM 11.97 +2.02) to keep pace with similar deals made recently by Internet search-engine rivals.
On the earnings front, Dow component Procter & Gamble (PG 62.98 -1.42) highlighted the list of reporters posting a 14% rise in Q3 profits and raising the lower end of its FY07 EPS outlook. Vulcan Materials (VMC 115.27 -8.40) also turned in a solid earnings report. Be that as it may, with PG and VMC running higher in anticipation of strong results yesterday, both were greeted with a sell-the-news response and were among their respective sectors' worst performing components. Consumer Staples and Materials were the only sectors failing to start the new month on an upbeat note. BTK +0.2% DJ30 +73.23 DJTA -0.1% DJUA +1.0% NASDAQ +6.44 NQ100 +0.3% SOX +0.1% SP400 +0.3% SP500 +3.93 XOI +0.2% NASDAQ Dec/Adv/Vol 1624/1434/2.15 bln NYSE Dec/Adv/Vol 1518/1723/1.68 bln
3:30 pm : The major averages are off their best levels of the session but still holding on to the bulk of their afternoon gains going into the close. The Dow's ability to break through a key resistance level (13,125) within the hour exacerbated the blue-chip index's move to the upside and leaves it on pace to close at a new record.
From a sector standpoint, the Utilities sector continues to pace the way higher. However, a 1.0% gain that lifts the sector' year-to-date gain to nearly 13%, which leads all sectors, also speaks to what may be shaping up to be a more risk averse market looking for defensive-oriented, dividend-paying names like utilities heading into the summer. DJ30 +60.34 DJUA +0.9% NASDAQ +3.68 SP500 +2.91 NASDAQ Dec/Adv/Vol 1599/1434/2.02 bln NYSE Dec/Adv/Vol 1490/1720/1.43 bln
3:00 pm : The indices are extending their reach to the upside as bargain hunters continue to scoop up some of the market's most beaten-down stocks. Homebuilding (+1.8%) and Human Resources (+1.3%), two of this year's worst performers, rank among today's biggest winners. In contrast, sector rotation leaves Construction Materials (-6.5%), Agricultural Products (-6.5%), and Tires & Rubber (-3.3%), three top performing groups in 2007, among today's biggest laggards.
Meanwhile, the Dow has now erased yesterday's entire 58-point decline as 26 of its 30 components are trading higher. The S&P 500 and Nasdaq are also trading at session highs, as eight of 10 sectors are now positive, but index gains remain modest in scope and leave plenty of room for sellers to step back in before the closing bell sounds an hour from now. DJ30 +66.44 NASDAQ +5.01 SP500 +3.81 NASDAQ Dec/Adv/Vol 1561/1458/1.85 bln NYSE Dec/Adv/Vol 1515/1689/1.29 bln
2:30 pm : Absent a catalyst throughout much of today's sluggish session, investors have finally found something to get excited about. Oil prices plunging 2.0% heading into the close of trading on the NYMEX have helped improved sentiment enough to inch the Nasdaq above the flat line for the first since the market opened. Crude for June delivery is at $64.40/bbl amid speculation tomorrow's weekly inventories report will show a build in oil supplies as some refineries were shut down for maintenance.
Also noteworthy is the fact that the Energy sector so far has yet to sacrifice much in the way of any leadership to the upside. Refiners (+1.2%), this year's second best performing S&P industry group (+35.5%), continue to provide the bulk of sector support as the summer driving fast approaches. DJ30 +41.39 NASDAQ +0.50 SP500 +1.79 XOI +0.2% NASDAQ Dec/Adv/Vol 1732/1274/1.73 bln NYSE Dec/Adv/Vol 1770/1411/1.21 bln
2:00 pm : The indices are bouncing off their afternoon lows some, spearheaded by a turnaround in Technology. The Financials sector paring nearly its entire intraday decline is also contributing to the market's improved stance.
However, gains on the blue-chip averages are modest at best while market internals still carrying a negative bias lend little conviction on the part of the bulls trying to get buying efforts back on track to kick off a month that historically paces the worst six-month period of the year. DJ30 +28.61 NASDAQ -4.51 SP500 +0.30 NASDAQ Dec/Adv/Vol 1849/1132/1.53 bln NYSE Dec/Adv/Vol 1847/1306/1.07 bln
1:30 pm : Stocks continue to trend lower as a renewed wave of selling interest within the last 30 minutes removes some notable leadership. The most noticeable sector turning negative has been Energy, in sympathy with oil prices recently hitting fresh session lows near $65/bbl. Reversals in Health Care and Industrials have also contributed to recent weakness that has pushed the Dow into the red for the first time this afternoon.
It is worth noting, though, that the Dow's decline is still modest in scope and, if history is any indication, the Dow has finished the first trading day in May with a gain in seven of the last nine years, according to the Stock Trader's Almanac. DJ30 -14.51 NASDAQ -13.20 SP500 -4.15 NASDAQ Dec/Adv/Vol 1893/1091/1.44 bln NYSE Dec/Adv/Vol 1866/1282/986 mln
1:00 pm : More of the same for stocks as the S&P 500 and Nasdaq continue to trade in opposing directions to the Dow. The latter is clinging to a small gain, all of which is can be attributed to continued strength in Honeywell (HON 54.91 +0.73), the Dow's best performing component last month (+17.6%).
Procter & Gamble (PG 62.83 -1.57) is still the price-weighted index's worst performer (-2.4%) with Alcoa (AA 34.64 -0.85) posting a similarly dismal performance that is keeping intraday gains in check. DJ30 +5.51 NASDAQ -7.81 SP500 -1.80 NASDAQ Dec/Adv/Vol 1750/1202/1.28 bln NYSE Dec/Adv/Vol 1743/1385/880 mln
12:30 pm : After being halted over an hour ago, Dow Jones & Co. (DJ 56.92 +20.59) has reopened and is up more than 56%. Unfortunately for the bulls, while recent confirmation of News Corp's (NWS 23.47 -0.53) $60/share bid and reopening of DJ shares has vaulted Publishing & Printing (+5.5%) into today's top two spot amid speculation of more industry consolidation, the group as a whole accounts for a small weighting within in a Consumer Discretionary sector that ranks fifth in terms of influence on the S&P 500.
The sector, which Briefing.com has rated at Underweight, is still under pressure amid the lack of leadership from Apparel & Accessories (-4.4%), following a huge earnings shortfall from Liz Claiborne (LIZ 36.61 -8.11), and Computer & Electronics Retail (-2.1%) after Circuit City (CC 16.10 -1.35) lowering Q1 expectations and withdrawing guidance prompted multiple analyst downgrades. DJ30 +10.88 NASDAQ -6.89 SP500 -1.42 NASDAQ Dec/Adv/Vol 1785/1166/1.17 bln NYSE Dec/Adv/Vol 1728/1365/794 mln
12:00 pm : The month of May has started on a somewhat mixed note for the equity market, which has been asked to digest another round of earnings and economic news.
For the most part, the earnings results were decent, yet they failed to light the same fire under the market that we witnessed in the back half of April. We suspect today's guarded response has to do with an underlying sense that the market has gotten ahead of itself in terms of discounting the good earnings news.
Procter & Gamble (PG 62.86, -1.54) highlighted the list of reporters and turned in a solid third quarter report that met expectations and was replete with upbeat guidance for the fiscal year. Its stock, however, has suffered from a sell-the-news response and currently stands as the worst-performing Dow component today.
Separately, a fiscal first quarter warning from Circuit City (CC 15.99, -1.46), which was linked to April sales being substantially below the company's plan, has cast a pall on the proceedings, too, as it has piqued concerns about a slowdown in consumer spending.
A report of a 4.9% decline in March pending home sales has also played into those concerns. Economists had been expecting a gain of 0.1%.
On the flip side, the April ISM Index, which is a survey of national manufacturing activity, checked in stronger than expected and alleviated concerns about a further weakening in the manufacturing sector. That news was viewed as favorable as it relates to economic growth prospects, yet enthusiasm was mitigated by the realization that the prices paid component of the report was also higher than expected. That, in turn, fed into inflation fears that have weighed on the Treasury market today.
Remarks on free trade from Fed Chairman Bernanke haven't had any impact on the market, because his speech was devoid of any references to the economic outlook or Fed policy. The next FOMC meeting will be held May 9.
Finally, Dow Jones (DJ 57.28, +20.95, halted) has vaulted into the "stock of the day" position as it has gotten a huge boost from a report that News Corp. (NWS 23.38, -0.62), a suggested holding in the Briefing.com Active Portfolio, has made an unsolicited $60 per share offer for the company. DJ30 +26.58 NASDAQ -6.20 SP500 -1.03 NASDAQ Dec/Adv/Vol 1717/1190/1.00 bln NYSE Dec/Adv/Vol 1654/1398/671 mln
11:30 am : The market continues in a mixed state and has been fairly resistant to selling efforts today. Still, the new month has started on a somewhat guarded note that can be attributed to a sense that stock prices have run ahead of fundamentals as they relate to the earnings picture.
Accordingly, good earnings reports, like the one from Procter & Gamble (PG 62.88, -1.52) this morning, have been greeted with a sell-the-news response.
In other developments, Fed Chairman Bernanke gave a speech on free trade. He maintained the view that protectionist policies are not in the best interest of the U.S. He didn't offer any comments on the economic outlook or Fed policy, so his remarks - or lack thereof - haven't been market-moving.
The stock of Dow Jones (DJ 57.28, +20.95) is moving, though, after a CNBC report saying News Corp. (NWS 23.32, -0.68) has made an unsolicited $60 per share offer for Dow Jones.
DJ30 +32.84 NASDAQ -3.99 SP500 -0.48 NASDAQ Dec/Adv/Vol 1815/1076/877 mln NYSE Dec/Adv/Vol 1855/1122/510 mln
11:00 am : Selling pressure has abated after the knee-jerk response to the ISM and pending home sales reports. Overall, though, neither buyers nor sellers have shown a great deal of conviction today.
The end result is that the major indices are mixed and little changed for the session. Fittingly, there are five economic sectors sporting a gain right now and five economic sectors sporting a loss.
The materials sector (-1.0%), which Briefing.com has rated at Overweight, is pacing the losers while telecom services (+0.50%), also rated Overweight by Briefing.com, is leading the gainers.DJ30 +20.97 NASDAQ -4.52 SP500 -1.29 NASDAQ Dec/Adv/Vol 1876/930/700 mln NYSE Dec/Adv/Vol 1906/1046/417 mln
10:30 am : The major indices have pulled back in the wake of the economic releases at the top of the hour.
The ISM Index, which is a survey of national manufacturing activity, bounced back in April to a reading of 54.7 from 50.9 in March. That suggests the manufacturing sector did not weakening substantially as had been feared. However, the enthusiasm over the rebound has been mitigated by the recognition that the prices-paid component of the report jumped up to 73.0 from 65.5.
Concerns about inflation, combined with a 4.9% decline in pending home sales for March, have taken the wind out of the market's sails at this juncture.DJ30 -7.96 NASDAQ -14.42 SP500 -5.47 NASDAQ Dec/Adv/Vol 1757/970/464 mln NYSE Dec/Adv/Vol 1467/1356/170 mln
10:00 am : The major averages are off their opening highs and now trade in split fashion as investors exhibit a cautionary stance heading into economic data which will be out momentarily. The Nasdaq has recently turned negative as BEA Systems (BEAS 10.73 -1.06) cutting its Q1 sales guidance brings the tech sector's growth prospects back into question.
Health Care Services (-3.7%) now rank among today's worst performing S&P industry groups as Medco Health Solutions (MHS 72.73 -5.29) more than doubling Q1 profits and raising its full-year forecasts prompts a sell-the-news response in a group that ran up ahead of earnings. Rival Express Scripts (ESRX 92.66 -2.89) is down 3.0% but hit an all-time high last week.DJ30 +19.51 NASDAQ -2.12 SP500 +0.03 NASDAQ Dec/Adv/Vol 1496/1056/236 mln NYSE Dec/Adv/Vol 1378/1342/110 mln
09:40 am : Stocks are rebounding from Monday's late-day consolidation efforts as a sense the sell-off was exaggerated and new fund inflows expected to hit the market on the first day of trading in May help offset a mixed bag of earnings reports. Procter & Gamble (PG 62.72 -1.69) is today's headliner; but the Dow component merely matching analysts' expectations has prompted investors to consolidate all of yesterday's 2.3% run-up ahead of earnings.
It is worth noting that early market gains are modest in scope, though, as investors slowly shifting their focus from earnings to economic data over the next few weeks await today's ISM Index and Pending Home Sales reports. Both are scheduled to hit the wires at the top of the hour. DJ30 +30.54 NASDAQ +4.74 SP500 +2.97 NASDAQ Vol 86 mln NYSE Vol 42 mln
09:16 am : S&P futures vs fair value: +1.5. Nasdaq futures vs fair value: +1.0.
09:00 am : S&P futures vs fair value: +1.5. Nasdaq futures vs fair value: +1.5. Early indications are off their best levels but still point to a modest rebound for stocks as bargain hunters view yesterday's sell-off as overdone. Whether or not the bounce holds could prove significant as investors begin to look past the main driver behind April's rally -- better than feared quarterly earnings results -- and shift their focus to economic data which are not likely to be particularly encouraging.
With the ISM Index checking in with a reading of 50.9 in March, just above the level that separates contraction concerns from expansion, today's report will be watched closely to see if manufacturing conditions have edged higher or if the sector simply remains in a rut.
http://biz.yahoo.com/mu/update.html
4:20 pm : After struggling to find their footing all morning and much of the afternoon Tuesday, stocks finally garnered some of the momentum that just helped propel stocks to their best monthly performance since 2003. The underlying bullish momentum vaulted the Dow to another record close, finishing the first trading day in May with its eighth gain over the last ten years.
Absent a catalyst to get buying efforts back on track following a 4.9% decline in March pending home sales and a higher than expected prices paid component in today's ISM Index report feeding into inflation fears, oil prices spiking to session lows late in the day gave investors something to cheer about. Crude for June delivery closed down 2% at $64.40/bbl amid speculation tomorrow's weekly inventories report will show a build in crude supplies. The fact that the Energy sector did not relinquish much in the way of its intraday leadership was also noteworthy.
Of the eight sectors finishing higher, Utilities (+1.1%) continued to provide the safest bet for investors unsure if the two-decade old adage "sell in May and go away" will hold true this year, especially since there is no reason for the stock market to have rallied so strongly in April based on deteriorating fundamentals.
Some more M&A activity also helped to keep sellers sidelined into the close of trading. Dow Jones & Co. (DJ 56.30 +19.97) confirming receipt of an unsolicited $60 per share offer (or roughly $5 bln) from News Corp (NWS 22.99 -1.01) was the day's biggest surprise. Speculation about more consolidation throughout Publishing (+3.7%) helped to offset weakness among retailers like Circuit City (CC 16.55 -0.90), which lowered Q1 expectations and withdrew guidance, and Liz Claiborne (LIZ 37.13 -7.59), which handily missed analysts' expectations.
Microsoft (MSFT 30.40 +0.46) also made news on the M&A front, and the bellwether's 1.5% surge was an integral part of the leadership exhibited by Technology Tuesday. Shareholders applauded reports that Microsoft may make a bid for 24/7 Real Media (TFSM 11.97 +2.02) to keep pace with similar deals made recently by Internet search-engine rivals.
On the earnings front, Dow component Procter & Gamble (PG 62.98 -1.42) highlighted the list of reporters posting a 14% rise in Q3 profits and raising the lower end of its FY07 EPS outlook. Vulcan Materials (VMC 115.27 -8.40) also turned in a solid earnings report. Be that as it may, with PG and VMC running higher in anticipation of strong results yesterday, both were greeted with a sell-the-news response and were among their respective sectors' worst performing components. Consumer Staples and Materials were the only sectors failing to start the new month on an upbeat note. BTK +0.2% DJ30 +73.23 DJTA -0.1% DJUA +1.0% NASDAQ +6.44 NQ100 +0.3% SOX +0.1% SP400 +0.3% SP500 +3.93 XOI +0.2% NASDAQ Dec/Adv/Vol 1624/1434/2.15 bln NYSE Dec/Adv/Vol 1518/1723/1.68 bln
3:30 pm : The major averages are off their best levels of the session but still holding on to the bulk of their afternoon gains going into the close. The Dow's ability to break through a key resistance level (13,125) within the hour exacerbated the blue-chip index's move to the upside and leaves it on pace to close at a new record.
From a sector standpoint, the Utilities sector continues to pace the way higher. However, a 1.0% gain that lifts the sector' year-to-date gain to nearly 13%, which leads all sectors, also speaks to what may be shaping up to be a more risk averse market looking for defensive-oriented, dividend-paying names like utilities heading into the summer. DJ30 +60.34 DJUA +0.9% NASDAQ +3.68 SP500 +2.91 NASDAQ Dec/Adv/Vol 1599/1434/2.02 bln NYSE Dec/Adv/Vol 1490/1720/1.43 bln
3:00 pm : The indices are extending their reach to the upside as bargain hunters continue to scoop up some of the market's most beaten-down stocks. Homebuilding (+1.8%) and Human Resources (+1.3%), two of this year's worst performers, rank among today's biggest winners. In contrast, sector rotation leaves Construction Materials (-6.5%), Agricultural Products (-6.5%), and Tires & Rubber (-3.3%), three top performing groups in 2007, among today's biggest laggards.
Meanwhile, the Dow has now erased yesterday's entire 58-point decline as 26 of its 30 components are trading higher. The S&P 500 and Nasdaq are also trading at session highs, as eight of 10 sectors are now positive, but index gains remain modest in scope and leave plenty of room for sellers to step back in before the closing bell sounds an hour from now. DJ30 +66.44 NASDAQ +5.01 SP500 +3.81 NASDAQ Dec/Adv/Vol 1561/1458/1.85 bln NYSE Dec/Adv/Vol 1515/1689/1.29 bln
2:30 pm : Absent a catalyst throughout much of today's sluggish session, investors have finally found something to get excited about. Oil prices plunging 2.0% heading into the close of trading on the NYMEX have helped improved sentiment enough to inch the Nasdaq above the flat line for the first since the market opened. Crude for June delivery is at $64.40/bbl amid speculation tomorrow's weekly inventories report will show a build in oil supplies as some refineries were shut down for maintenance.
Also noteworthy is the fact that the Energy sector so far has yet to sacrifice much in the way of any leadership to the upside. Refiners (+1.2%), this year's second best performing S&P industry group (+35.5%), continue to provide the bulk of sector support as the summer driving fast approaches. DJ30 +41.39 NASDAQ +0.50 SP500 +1.79 XOI +0.2% NASDAQ Dec/Adv/Vol 1732/1274/1.73 bln NYSE Dec/Adv/Vol 1770/1411/1.21 bln
2:00 pm : The indices are bouncing off their afternoon lows some, spearheaded by a turnaround in Technology. The Financials sector paring nearly its entire intraday decline is also contributing to the market's improved stance.
However, gains on the blue-chip averages are modest at best while market internals still carrying a negative bias lend little conviction on the part of the bulls trying to get buying efforts back on track to kick off a month that historically paces the worst six-month period of the year. DJ30 +28.61 NASDAQ -4.51 SP500 +0.30 NASDAQ Dec/Adv/Vol 1849/1132/1.53 bln NYSE Dec/Adv/Vol 1847/1306/1.07 bln
1:30 pm : Stocks continue to trend lower as a renewed wave of selling interest within the last 30 minutes removes some notable leadership. The most noticeable sector turning negative has been Energy, in sympathy with oil prices recently hitting fresh session lows near $65/bbl. Reversals in Health Care and Industrials have also contributed to recent weakness that has pushed the Dow into the red for the first time this afternoon.
It is worth noting, though, that the Dow's decline is still modest in scope and, if history is any indication, the Dow has finished the first trading day in May with a gain in seven of the last nine years, according to the Stock Trader's Almanac. DJ30 -14.51 NASDAQ -13.20 SP500 -4.15 NASDAQ Dec/Adv/Vol 1893/1091/1.44 bln NYSE Dec/Adv/Vol 1866/1282/986 mln
1:00 pm : More of the same for stocks as the S&P 500 and Nasdaq continue to trade in opposing directions to the Dow. The latter is clinging to a small gain, all of which is can be attributed to continued strength in Honeywell (HON 54.91 +0.73), the Dow's best performing component last month (+17.6%).
Procter & Gamble (PG 62.83 -1.57) is still the price-weighted index's worst performer (-2.4%) with Alcoa (AA 34.64 -0.85) posting a similarly dismal performance that is keeping intraday gains in check. DJ30 +5.51 NASDAQ -7.81 SP500 -1.80 NASDAQ Dec/Adv/Vol 1750/1202/1.28 bln NYSE Dec/Adv/Vol 1743/1385/880 mln
12:30 pm : After being halted over an hour ago, Dow Jones & Co. (DJ 56.92 +20.59) has reopened and is up more than 56%. Unfortunately for the bulls, while recent confirmation of News Corp's (NWS 23.47 -0.53) $60/share bid and reopening of DJ shares has vaulted Publishing & Printing (+5.5%) into today's top two spot amid speculation of more industry consolidation, the group as a whole accounts for a small weighting within in a Consumer Discretionary sector that ranks fifth in terms of influence on the S&P 500.
The sector, which Briefing.com has rated at Underweight, is still under pressure amid the lack of leadership from Apparel & Accessories (-4.4%), following a huge earnings shortfall from Liz Claiborne (LIZ 36.61 -8.11), and Computer & Electronics Retail (-2.1%) after Circuit City (CC 16.10 -1.35) lowering Q1 expectations and withdrawing guidance prompted multiple analyst downgrades. DJ30 +10.88 NASDAQ -6.89 SP500 -1.42 NASDAQ Dec/Adv/Vol 1785/1166/1.17 bln NYSE Dec/Adv/Vol 1728/1365/794 mln
12:00 pm : The month of May has started on a somewhat mixed note for the equity market, which has been asked to digest another round of earnings and economic news.
For the most part, the earnings results were decent, yet they failed to light the same fire under the market that we witnessed in the back half of April. We suspect today's guarded response has to do with an underlying sense that the market has gotten ahead of itself in terms of discounting the good earnings news.
Procter & Gamble (PG 62.86, -1.54) highlighted the list of reporters and turned in a solid third quarter report that met expectations and was replete with upbeat guidance for the fiscal year. Its stock, however, has suffered from a sell-the-news response and currently stands as the worst-performing Dow component today.
Separately, a fiscal first quarter warning from Circuit City (CC 15.99, -1.46), which was linked to April sales being substantially below the company's plan, has cast a pall on the proceedings, too, as it has piqued concerns about a slowdown in consumer spending.
A report of a 4.9% decline in March pending home sales has also played into those concerns. Economists had been expecting a gain of 0.1%.
On the flip side, the April ISM Index, which is a survey of national manufacturing activity, checked in stronger than expected and alleviated concerns about a further weakening in the manufacturing sector. That news was viewed as favorable as it relates to economic growth prospects, yet enthusiasm was mitigated by the realization that the prices paid component of the report was also higher than expected. That, in turn, fed into inflation fears that have weighed on the Treasury market today.
Remarks on free trade from Fed Chairman Bernanke haven't had any impact on the market, because his speech was devoid of any references to the economic outlook or Fed policy. The next FOMC meeting will be held May 9.
Finally, Dow Jones (DJ 57.28, +20.95, halted) has vaulted into the "stock of the day" position as it has gotten a huge boost from a report that News Corp. (NWS 23.38, -0.62), a suggested holding in the Briefing.com Active Portfolio, has made an unsolicited $60 per share offer for the company. DJ30 +26.58 NASDAQ -6.20 SP500 -1.03 NASDAQ Dec/Adv/Vol 1717/1190/1.00 bln NYSE Dec/Adv/Vol 1654/1398/671 mln
11:30 am : The market continues in a mixed state and has been fairly resistant to selling efforts today. Still, the new month has started on a somewhat guarded note that can be attributed to a sense that stock prices have run ahead of fundamentals as they relate to the earnings picture.
Accordingly, good earnings reports, like the one from Procter & Gamble (PG 62.88, -1.52) this morning, have been greeted with a sell-the-news response.
In other developments, Fed Chairman Bernanke gave a speech on free trade. He maintained the view that protectionist policies are not in the best interest of the U.S. He didn't offer any comments on the economic outlook or Fed policy, so his remarks - or lack thereof - haven't been market-moving.
The stock of Dow Jones (DJ 57.28, +20.95) is moving, though, after a CNBC report saying News Corp. (NWS 23.32, -0.68) has made an unsolicited $60 per share offer for Dow Jones.
DJ30 +32.84 NASDAQ -3.99 SP500 -0.48 NASDAQ Dec/Adv/Vol 1815/1076/877 mln NYSE Dec/Adv/Vol 1855/1122/510 mln
11:00 am : Selling pressure has abated after the knee-jerk response to the ISM and pending home sales reports. Overall, though, neither buyers nor sellers have shown a great deal of conviction today.
The end result is that the major indices are mixed and little changed for the session. Fittingly, there are five economic sectors sporting a gain right now and five economic sectors sporting a loss.
The materials sector (-1.0%), which Briefing.com has rated at Overweight, is pacing the losers while telecom services (+0.50%), also rated Overweight by Briefing.com, is leading the gainers.DJ30 +20.97 NASDAQ -4.52 SP500 -1.29 NASDAQ Dec/Adv/Vol 1876/930/700 mln NYSE Dec/Adv/Vol 1906/1046/417 mln
10:30 am : The major indices have pulled back in the wake of the economic releases at the top of the hour.
The ISM Index, which is a survey of national manufacturing activity, bounced back in April to a reading of 54.7 from 50.9 in March. That suggests the manufacturing sector did not weakening substantially as had been feared. However, the enthusiasm over the rebound has been mitigated by the recognition that the prices-paid component of the report jumped up to 73.0 from 65.5.
Concerns about inflation, combined with a 4.9% decline in pending home sales for March, have taken the wind out of the market's sails at this juncture.DJ30 -7.96 NASDAQ -14.42 SP500 -5.47 NASDAQ Dec/Adv/Vol 1757/970/464 mln NYSE Dec/Adv/Vol 1467/1356/170 mln
10:00 am : The major averages are off their opening highs and now trade in split fashion as investors exhibit a cautionary stance heading into economic data which will be out momentarily. The Nasdaq has recently turned negative as BEA Systems (BEAS 10.73 -1.06) cutting its Q1 sales guidance brings the tech sector's growth prospects back into question.
Health Care Services (-3.7%) now rank among today's worst performing S&P industry groups as Medco Health Solutions (MHS 72.73 -5.29) more than doubling Q1 profits and raising its full-year forecasts prompts a sell-the-news response in a group that ran up ahead of earnings. Rival Express Scripts (ESRX 92.66 -2.89) is down 3.0% but hit an all-time high last week.DJ30 +19.51 NASDAQ -2.12 SP500 +0.03 NASDAQ Dec/Adv/Vol 1496/1056/236 mln NYSE Dec/Adv/Vol 1378/1342/110 mln
09:40 am : Stocks are rebounding from Monday's late-day consolidation efforts as a sense the sell-off was exaggerated and new fund inflows expected to hit the market on the first day of trading in May help offset a mixed bag of earnings reports. Procter & Gamble (PG 62.72 -1.69) is today's headliner; but the Dow component merely matching analysts' expectations has prompted investors to consolidate all of yesterday's 2.3% run-up ahead of earnings.
It is worth noting that early market gains are modest in scope, though, as investors slowly shifting their focus from earnings to economic data over the next few weeks await today's ISM Index and Pending Home Sales reports. Both are scheduled to hit the wires at the top of the hour. DJ30 +30.54 NASDAQ +4.74 SP500 +2.97 NASDAQ Vol 86 mln NYSE Vol 42 mln
09:16 am : S&P futures vs fair value: +1.5. Nasdaq futures vs fair value: +1.0.
09:00 am : S&P futures vs fair value: +1.5. Nasdaq futures vs fair value: +1.5. Early indications are off their best levels but still point to a modest rebound for stocks as bargain hunters view yesterday's sell-off as overdone. Whether or not the bounce holds could prove significant as investors begin to look past the main driver behind April's rally -- better than feared quarterly earnings results -- and shift their focus to economic data which are not likely to be particularly encouraging.
With the ISM Index checking in with a reading of 50.9 in March, just above the level that separates contraction concerns from expansion, today's report will be watched closely to see if manufacturing conditions have edged higher or if the sector simply remains in a rut.
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