AI
Monday, May 07, 2007 10:28:32 PM
Market Update 070507
http://biz.yahoo.com/mu/update.html
4:20 pm : The indices finished mixed Monday as investors weighed another round of M&A activity and falling oil prices against growing concerns that stocks are overbought at current levels.
With notable quarterly results now few and far between to keep investors on the buying track, a proposed blockbuster deal from the very blue chip that officially kicked off the Q1 earnings season four weeks ago helped the Dow close in record territory again and log its 24th advance in 27 sessions. Alcoa (AA 38.57 +2.91) soared more than 8% as investors applauded its decision to launch a hostile bid for rival Alcan (AL 82.49 +21.46).
The proposed blockbuster deal carries an enterprise value of about $33 bln, easily earmarking Aluminum as today's best performing S&P industry group (+8.3%) and Materials as the day's best performing sector (+1.3%). However, even though all 10 S&P 500 sectors finishing higher on the surface speaks to the broad-based nature of yet another blue-chip advance, the fact that Materials only sports a 3.1% weighting is also why gains on the Dow and S&P 500 were minimal.
Investors also embraced some upbeat commentary from Warren Buffett. The billionaire investor said over the weekend at Berkshire Hathaway's annual shareholder meeting that it is open to making a "huge" acquisition of between $40 and $60 bln.
Oil falling for a sixth straight session, the commodity's longest losing streak since last September, was also noteworthy, as was the Energy sector's ability to still eke out a small gain and lend some additional leadership.
Crude for June delivery fell 0.7% to $61.47/bbl as traders unwound some more of the risk premium that has been priced into potentially inadequate gasoline supplies to meet summer driving demand. Nonetheless, Energy's 0.1% advance was mirrored by three other notable sectors, one of which was Technology. The latter sector's inability to exhibit more convincing leadership to the upside contributed to the Nasdaq's recent four-day winning streak being snapped.
With recent economic reports showing that inflationary pressures have eased a bit, alongside more evidence to sideline the worst of recession fears, the absence of any key data today to possibly upset the apple cart was also viewed as a net positive since it allowed investors to stay focused on the liquidity factor that continues to drive up valuations.
With Fed officials meeting just two days from now to discuss monetary policy, though, it also wasn't overly surprising to see investors avoid making any huge bets before an accompanying policy statement that will garner added attention.
As has been the case for weeks, the bulk of today's performance was again dictated by strength in a only handful of large-cap names. Alcoa, for one, accounted for nearly half of the Dow's 48-point intraday advance. DJ30 +48.35 NASDAQ -1.20 SP500 +3.86 NASDAQ Dec/Adv/Vol 1624/1428/1.67 bln NYSE Dec/Adv/Vol 1463/1781/1.26 bln
3:30 pm : So much for the Nasdaq keeping its head above water as a renewed wave of modest selling interest within the last 30 minutes pushes the index back below the flat line.
A reversal in the software space, coupled with further deterioration among several semiconductor stocks and networking names, have contributed to the tech-heavy Composite's pullback. The index's decline is minimal, though, and only relevant to note from a psychological standpoint since the underlying bullish tone has lifted every index virtually unabated since bottoming in mid March. DJ30 +40.17 NASDAQ -1.08 SOX -0.3% SP500 +3.16 NASDAQ Dec/Adv/Vol 1686/1362/1.35 bln NYSE Dec/Adv/Vol 1495/1739/1.02 bln
3:00 pm : Buyers remain in control of the action but the Nasdaq still clinging to the smallest of intraday gains hardly guarantees the tech-heavy Composite will extend its winning streak to four.
The Dow, on the other hand, is very likely to close higher for the 24th time in 27 tries, a feat not seen since 1927. The index's biggest winner today, Alcoa (AA 38.58 +2.92), is currently hitting fresh session highs. The stock is up more than 8% on the session and, since it now accounts for almost 24 Dow points, positions the price-weighted index to finish with its fourth consecutive record. DJ30 +49.16 NASDAQ +0.44 SP500 +3.57 NASDAQ Dec/Adv/Vol 1601/1425/1.21 bln NYSE Dec/Adv/Vol 1403/1819/930 mln
2:30 pm : After being down as much as 1.7% earlier, oil prices have bounced off of six-week lows heading into the close of trading on the NYMEX. The rebound has lifted the commodity to within 20 cents of breakeven on the day after U.S. Energy Secretary Bodman said oil supply remains adequate and that the problem now is refinery bottlenecks.
While those remarks are not surprising, since such concerns have resulted in prices at the pump surging 11% over the past month and hitting record levels last week, the Energy sector's (+0.1%) inability to take advantage of oil's recovery attempt has kept market gains in check. DJ30 +47.05 NASDAQ +1.22 SP500 +4.14 NASDAQ Dec/Adv/Vol 1547/1465/1.12 bln NYSE Dec/Adv/Vol 1409/1814/852 mln
2:00 pm : Buyers step back since the last update, but only enough to inch the Nasdaq back into the plus column. Technology retracing its best levels of the day is the most obvious reason for the index's turnaround; but the sector's 0.25% advance is hardly anything to get overly excited about.
Tech is currently up 6.7% year to date, has been a big reason behind the market's eight-week wave of upward momentum, and is expected to be a significant contributor to aggregate earnings growth on the S&P 500 in 2007. DJ30 +47.13 NASDAQ +2.26 SP500 +4.12 NASDAQ Dec/Adv/Vol 1565/1405/1.02 bln NYSE Dec/Adv/Vol 1442/1750/770 mln
1:30 pm : Sellers show some resolve within the last 30 minutes, pushing the Nasdaq into negative territory for the first time today. Among the today's biggest laggards responsible for the tech-heavy index's recent reversal, Activision (ATVI 20.24 -1.03) is turning in the worst performance (-4.8%) on the Nasdaq 100; but the stock hit an all-time high on Friday and was up 23% this year.
Other Nasdaq disappointments include AKAM -2.5%, AMZN -2.7%. LLTC -2.0%, SBUX -1.2%, WYNN -2.3%, and YHOO -2.5%. A pullback in the latter also isn't that surprising since Yahoo! (YHOO 30.28 -0.69) soared more than 9% Friday amid reports that Microsoft (MSFT 30.64 +0.08) may be trying to acquire it.DJ30 +31.37 NASDAQ -0.60 SP500 +2.66 NASDAQ Dec/Adv/Vol 1569/1398/950 mln NYSE Dec/Adv/Vol 1404/1773/714 mln
1:00 pm : Range-bound trading persists, with the indices still hovering in positive territory; but market internals don't paint an overwhelming optimistic picture. The market's holding pattern has been further evidenced in the A/D line, as advancers on the NYSE hold a slim 17-to-13 advantage over decliners while both advancing and declining issues on the Nasdaq remain evenly matched.
The lack of conviction on the part of buyers is even more noticeable on the S&P 400 MidCap Index and Russell 2000. Both are unchanged on the day after posting respective gains of only 0.6% and 0.5% last week. That compares to stronger gains of 2.3%, 1.4%, and 1.8% on the Dow, S&P 500, and Nasdaq, respectively, over the previous five days. DJ30 +40.55 NASDAQ +2.79 SP500 +3.71 NASDAQ Dec/Adv/Vol 1498/1451/864 mln NYSE Dec/Adv/Vol 1360/1788/644 mln
12:30 pm : No real change in the proceedings as the afternoon session gets underway. Nine of 10 sectors are still trading in positive territory, but the majority of buying interest remains center around this year's best performing sectors. Materials (+1.3%), Utilities (+0.8%) and Telecom (+0.4%) rank 1, 2, and 3 today and are up 13.7%, 15.4%, and 10.4%, respectively, year to date.
Since oil makes up roughly 60% of the costs for chemical companies, and crude is currently down 1.5%, Materials components like Dow Chemical (DOW 45.30 +0.38), DuPont (DD 51.77 +0.53), Rohm & Haas (ROH 52.91 +1.26), and PPG Industries (PPG 75.55 +0.75) have joined forces with Alcoa (AA 37.94 +2.28) as sources of sector support.DJ30 +41.04 NASDAQ +3.53 SP500 +3.90 NASDAQ Dec/Adv/Vol 1468/1466/780 mln NYSE Dec/Adv/Vol 1281/1837/576 mln
12:00 pm : Stocks are trading modestly higher midday as some M&A news lends further support for the underlying bullish momentum that has lifted stocks for five consecutive weeks.
Per usual for a Monday, at least lately, today's most notable deal comes from Alcoa (AA 38.04 +2.38). The Dow component is soaring nearly 7%, helping the index climb even further into record territory, as investors applaud its decision to make a hostile cash and stock bid for rival Alcan (AL 81.27 +20.24). While the proposed blockbuster deal carries an enterprise value of about $33 bln and earmarks Aluminum as today's best performing S&P industry group (+6.7%); the Materials sector carries only a 3.1% weighting, making it the least influential on the S&P 500.
Investors are also finding comfort in some upbeat commentary from Warren Buffett. The billionaire investor said over the weekend at Berkshire Hathaway's annual shareholder meeting that it is open to making a "huge" acquisition of between $40 and $60 bln.
With economic data of late showing that inflation measures have eased a bit and that recession fears have abated, the absence of potentially troubling data scheduled this morning has also helped investors stay focused on the liquidity factor that continues to drive up valuations. However, with Fed officials meeting in two days to discuss monetary policy, it's also not surprising to see investors avoid making huge bets before an accompanying policy directive that will garner added attention Wednesday since it is a foregone conclusion that rates will remain unchanged for a seventh straight time. DJ30 +35.84 NASDAQ +3.96 SP500 +3.84 NASDAQ Dec/Adv/Vol 1443/1445/685 mln NYSE Dec/Adv/Vol 1290/1815/498 mln
11:30 am : The market continues to trade relatively sideways above the flat line; but buyers are still struggling to find enough overwhelming evidence to more aggressively build on recent market gains. Meanwhile, crude for June delivery is now down 1.7% at session lows and back below $61/bbl in sympathy with a 2.7% plunge in gasoline futures.
For a sixth straight session traders are removing some of risk premium that has been priced into potentially inadequate supplies to meet summer driving demand. However, while falling oil prices certainly bode well for consumers, a recent reversal in Energy (-0.3%) removes enough leadership to act as an offset to oil's diminishing inflationary characteristics. DJ30 +34.78 NASDAQ +3.72 SP500 +3.69 XOI -0.5% NASDAQ Dec/Adv/Vol 1431/1423/580 mln NYSE Dec/Adv/Vol 1213/1780/416 mln
11:00 am : The major averages continue to sport respectable gains but, as has been the case for weeks, the bulk of today's performance is being dictated by strength in a handful of large-cap names. Of the 17 Dow components trading higher, Alcoa (AA 38.03 +2.37) paces the way; but its 6.6% surge currently accounts for 19 of the Dow's 22-point intraday advance.
Moving over to the Nasdaq, the tech-heavy index is not getting much help from semiconductor stocks; but a 1.9% rally in shares of one of its most influential components -- Apple (AAPL 102.68 +1.87) -- is having the most noticeable impact behind the Nasdaq's push to fresh six-year highs. Apple is in record territory amid speculation it will introduce a new iPod as early as tomorrow. DJ30 +22.91 NASDAQ +3.78 SOX -0.2% SP500 +3.44 NASDAQ Dec/Adv/Vol 1418/1407/476 mln NYSE Dec/Adv/Vol 1243/1738/326 mln
10:30 am : The Energy sector has recently turned the corner, which is noteworthy since oil prices are falling for a sixth straight session. However, Energy's leadership has not been enough to offset pullbacks in more influential areas.
As evidenced by the Nasdaq seeing its opening gains more than halved and decliners on the tech-heavy Composite recently edging past advancers, Technology now clinging to a miniscule 0.08% advance is contributing to the lack of conviction on the part of buyers. Brokerage stocks failing to take advantage of more M&A news is also acting as an offset to the stronger gains enjoyed at the onset of today's trading. The Financials sector is up only 0.2%. DJ30 +24.94 NASDAQ +2.91 SOX -0.1% SP500 +3.40 NASDAQ Dec/Adv/Vol 1434/1307/318 mln NYSE Dec/Adv/Vol 1204/1663/202 mln
10:00 am : The indices are holding steady near their opening highs as the bulk of industry leadership remains positive. Of the nine sectors trading higher, Materials (+1.1%) is pacing the way; but that is to be expected since the 20% premium Alcoa is paying for Alcan earmarks Aluminum (+5.2%) as today's best performing S&P industry group.
Unfortunately for the bulls, the sector is the least influential on the S&P 500, holding only a 3.1% weighting. Telecom (+0.7%) and Utilities (+0.6%) round out today's top three; but again, their combined weighting of 7.4% is also why overall market gains remain modest in scope. DJ30 +33.50 NASDAQ +5.65 SP500 +4.61 NASDAQ Dec/Adv/Vol 1096/1467/142 mln NYSE Dec/Adv/Vol 951/1663/74 mln
09:40 am : Per usual for a Monday, some more M&A news has armed the bulls with an opportunity to build on five consecutive weeks of market gains. The most notable deal this morning involves Alcoa (AA 37.50 +1.84). The Dow component is actually up more than 5% after making a hostile cash and stock bid valued at approximately $33 bln for rival Alcan (AL 80.30 +19.27).
Investors are also finding comfort in some upbeat commentary from Warren Buffett. The billionaire investor said over the weekend at Berkshire Hathaway's annual shareholder meeting that it is open to making a "huge" acquisition of between $40 and $60 bln. Berkshire ended March with $46 bln in cash. DJ30 +31.94 NASDAQ +6.34 SP500 +3.92 NASDAQ Vol 90 mln NYSE Vol 48 mln
09:15 am : S&P futures vs fair value: +2.5. Nasdaq futures vs fair value: +2.0.
http://biz.yahoo.com/mu/update.html
4:20 pm : The indices finished mixed Monday as investors weighed another round of M&A activity and falling oil prices against growing concerns that stocks are overbought at current levels.
With notable quarterly results now few and far between to keep investors on the buying track, a proposed blockbuster deal from the very blue chip that officially kicked off the Q1 earnings season four weeks ago helped the Dow close in record territory again and log its 24th advance in 27 sessions. Alcoa (AA 38.57 +2.91) soared more than 8% as investors applauded its decision to launch a hostile bid for rival Alcan (AL 82.49 +21.46).
The proposed blockbuster deal carries an enterprise value of about $33 bln, easily earmarking Aluminum as today's best performing S&P industry group (+8.3%) and Materials as the day's best performing sector (+1.3%). However, even though all 10 S&P 500 sectors finishing higher on the surface speaks to the broad-based nature of yet another blue-chip advance, the fact that Materials only sports a 3.1% weighting is also why gains on the Dow and S&P 500 were minimal.
Investors also embraced some upbeat commentary from Warren Buffett. The billionaire investor said over the weekend at Berkshire Hathaway's annual shareholder meeting that it is open to making a "huge" acquisition of between $40 and $60 bln.
Oil falling for a sixth straight session, the commodity's longest losing streak since last September, was also noteworthy, as was the Energy sector's ability to still eke out a small gain and lend some additional leadership.
Crude for June delivery fell 0.7% to $61.47/bbl as traders unwound some more of the risk premium that has been priced into potentially inadequate gasoline supplies to meet summer driving demand. Nonetheless, Energy's 0.1% advance was mirrored by three other notable sectors, one of which was Technology. The latter sector's inability to exhibit more convincing leadership to the upside contributed to the Nasdaq's recent four-day winning streak being snapped.
With recent economic reports showing that inflationary pressures have eased a bit, alongside more evidence to sideline the worst of recession fears, the absence of any key data today to possibly upset the apple cart was also viewed as a net positive since it allowed investors to stay focused on the liquidity factor that continues to drive up valuations.
With Fed officials meeting just two days from now to discuss monetary policy, though, it also wasn't overly surprising to see investors avoid making any huge bets before an accompanying policy statement that will garner added attention.
As has been the case for weeks, the bulk of today's performance was again dictated by strength in a only handful of large-cap names. Alcoa, for one, accounted for nearly half of the Dow's 48-point intraday advance. DJ30 +48.35 NASDAQ -1.20 SP500 +3.86 NASDAQ Dec/Adv/Vol 1624/1428/1.67 bln NYSE Dec/Adv/Vol 1463/1781/1.26 bln
3:30 pm : So much for the Nasdaq keeping its head above water as a renewed wave of modest selling interest within the last 30 minutes pushes the index back below the flat line.
A reversal in the software space, coupled with further deterioration among several semiconductor stocks and networking names, have contributed to the tech-heavy Composite's pullback. The index's decline is minimal, though, and only relevant to note from a psychological standpoint since the underlying bullish tone has lifted every index virtually unabated since bottoming in mid March. DJ30 +40.17 NASDAQ -1.08 SOX -0.3% SP500 +3.16 NASDAQ Dec/Adv/Vol 1686/1362/1.35 bln NYSE Dec/Adv/Vol 1495/1739/1.02 bln
3:00 pm : Buyers remain in control of the action but the Nasdaq still clinging to the smallest of intraday gains hardly guarantees the tech-heavy Composite will extend its winning streak to four.
The Dow, on the other hand, is very likely to close higher for the 24th time in 27 tries, a feat not seen since 1927. The index's biggest winner today, Alcoa (AA 38.58 +2.92), is currently hitting fresh session highs. The stock is up more than 8% on the session and, since it now accounts for almost 24 Dow points, positions the price-weighted index to finish with its fourth consecutive record. DJ30 +49.16 NASDAQ +0.44 SP500 +3.57 NASDAQ Dec/Adv/Vol 1601/1425/1.21 bln NYSE Dec/Adv/Vol 1403/1819/930 mln
2:30 pm : After being down as much as 1.7% earlier, oil prices have bounced off of six-week lows heading into the close of trading on the NYMEX. The rebound has lifted the commodity to within 20 cents of breakeven on the day after U.S. Energy Secretary Bodman said oil supply remains adequate and that the problem now is refinery bottlenecks.
While those remarks are not surprising, since such concerns have resulted in prices at the pump surging 11% over the past month and hitting record levels last week, the Energy sector's (+0.1%) inability to take advantage of oil's recovery attempt has kept market gains in check. DJ30 +47.05 NASDAQ +1.22 SP500 +4.14 NASDAQ Dec/Adv/Vol 1547/1465/1.12 bln NYSE Dec/Adv/Vol 1409/1814/852 mln
2:00 pm : Buyers step back since the last update, but only enough to inch the Nasdaq back into the plus column. Technology retracing its best levels of the day is the most obvious reason for the index's turnaround; but the sector's 0.25% advance is hardly anything to get overly excited about.
Tech is currently up 6.7% year to date, has been a big reason behind the market's eight-week wave of upward momentum, and is expected to be a significant contributor to aggregate earnings growth on the S&P 500 in 2007. DJ30 +47.13 NASDAQ +2.26 SP500 +4.12 NASDAQ Dec/Adv/Vol 1565/1405/1.02 bln NYSE Dec/Adv/Vol 1442/1750/770 mln
1:30 pm : Sellers show some resolve within the last 30 minutes, pushing the Nasdaq into negative territory for the first time today. Among the today's biggest laggards responsible for the tech-heavy index's recent reversal, Activision (ATVI 20.24 -1.03) is turning in the worst performance (-4.8%) on the Nasdaq 100; but the stock hit an all-time high on Friday and was up 23% this year.
Other Nasdaq disappointments include AKAM -2.5%, AMZN -2.7%. LLTC -2.0%, SBUX -1.2%, WYNN -2.3%, and YHOO -2.5%. A pullback in the latter also isn't that surprising since Yahoo! (YHOO 30.28 -0.69) soared more than 9% Friday amid reports that Microsoft (MSFT 30.64 +0.08) may be trying to acquire it.DJ30 +31.37 NASDAQ -0.60 SP500 +2.66 NASDAQ Dec/Adv/Vol 1569/1398/950 mln NYSE Dec/Adv/Vol 1404/1773/714 mln
1:00 pm : Range-bound trading persists, with the indices still hovering in positive territory; but market internals don't paint an overwhelming optimistic picture. The market's holding pattern has been further evidenced in the A/D line, as advancers on the NYSE hold a slim 17-to-13 advantage over decliners while both advancing and declining issues on the Nasdaq remain evenly matched.
The lack of conviction on the part of buyers is even more noticeable on the S&P 400 MidCap Index and Russell 2000. Both are unchanged on the day after posting respective gains of only 0.6% and 0.5% last week. That compares to stronger gains of 2.3%, 1.4%, and 1.8% on the Dow, S&P 500, and Nasdaq, respectively, over the previous five days. DJ30 +40.55 NASDAQ +2.79 SP500 +3.71 NASDAQ Dec/Adv/Vol 1498/1451/864 mln NYSE Dec/Adv/Vol 1360/1788/644 mln
12:30 pm : No real change in the proceedings as the afternoon session gets underway. Nine of 10 sectors are still trading in positive territory, but the majority of buying interest remains center around this year's best performing sectors. Materials (+1.3%), Utilities (+0.8%) and Telecom (+0.4%) rank 1, 2, and 3 today and are up 13.7%, 15.4%, and 10.4%, respectively, year to date.
Since oil makes up roughly 60% of the costs for chemical companies, and crude is currently down 1.5%, Materials components like Dow Chemical (DOW 45.30 +0.38), DuPont (DD 51.77 +0.53), Rohm & Haas (ROH 52.91 +1.26), and PPG Industries (PPG 75.55 +0.75) have joined forces with Alcoa (AA 37.94 +2.28) as sources of sector support.DJ30 +41.04 NASDAQ +3.53 SP500 +3.90 NASDAQ Dec/Adv/Vol 1468/1466/780 mln NYSE Dec/Adv/Vol 1281/1837/576 mln
12:00 pm : Stocks are trading modestly higher midday as some M&A news lends further support for the underlying bullish momentum that has lifted stocks for five consecutive weeks.
Per usual for a Monday, at least lately, today's most notable deal comes from Alcoa (AA 38.04 +2.38). The Dow component is soaring nearly 7%, helping the index climb even further into record territory, as investors applaud its decision to make a hostile cash and stock bid for rival Alcan (AL 81.27 +20.24). While the proposed blockbuster deal carries an enterprise value of about $33 bln and earmarks Aluminum as today's best performing S&P industry group (+6.7%); the Materials sector carries only a 3.1% weighting, making it the least influential on the S&P 500.
Investors are also finding comfort in some upbeat commentary from Warren Buffett. The billionaire investor said over the weekend at Berkshire Hathaway's annual shareholder meeting that it is open to making a "huge" acquisition of between $40 and $60 bln.
With economic data of late showing that inflation measures have eased a bit and that recession fears have abated, the absence of potentially troubling data scheduled this morning has also helped investors stay focused on the liquidity factor that continues to drive up valuations. However, with Fed officials meeting in two days to discuss monetary policy, it's also not surprising to see investors avoid making huge bets before an accompanying policy directive that will garner added attention Wednesday since it is a foregone conclusion that rates will remain unchanged for a seventh straight time. DJ30 +35.84 NASDAQ +3.96 SP500 +3.84 NASDAQ Dec/Adv/Vol 1443/1445/685 mln NYSE Dec/Adv/Vol 1290/1815/498 mln
11:30 am : The market continues to trade relatively sideways above the flat line; but buyers are still struggling to find enough overwhelming evidence to more aggressively build on recent market gains. Meanwhile, crude for June delivery is now down 1.7% at session lows and back below $61/bbl in sympathy with a 2.7% plunge in gasoline futures.
For a sixth straight session traders are removing some of risk premium that has been priced into potentially inadequate supplies to meet summer driving demand. However, while falling oil prices certainly bode well for consumers, a recent reversal in Energy (-0.3%) removes enough leadership to act as an offset to oil's diminishing inflationary characteristics. DJ30 +34.78 NASDAQ +3.72 SP500 +3.69 XOI -0.5% NASDAQ Dec/Adv/Vol 1431/1423/580 mln NYSE Dec/Adv/Vol 1213/1780/416 mln
11:00 am : The major averages continue to sport respectable gains but, as has been the case for weeks, the bulk of today's performance is being dictated by strength in a handful of large-cap names. Of the 17 Dow components trading higher, Alcoa (AA 38.03 +2.37) paces the way; but its 6.6% surge currently accounts for 19 of the Dow's 22-point intraday advance.
Moving over to the Nasdaq, the tech-heavy index is not getting much help from semiconductor stocks; but a 1.9% rally in shares of one of its most influential components -- Apple (AAPL 102.68 +1.87) -- is having the most noticeable impact behind the Nasdaq's push to fresh six-year highs. Apple is in record territory amid speculation it will introduce a new iPod as early as tomorrow. DJ30 +22.91 NASDAQ +3.78 SOX -0.2% SP500 +3.44 NASDAQ Dec/Adv/Vol 1418/1407/476 mln NYSE Dec/Adv/Vol 1243/1738/326 mln
10:30 am : The Energy sector has recently turned the corner, which is noteworthy since oil prices are falling for a sixth straight session. However, Energy's leadership has not been enough to offset pullbacks in more influential areas.
As evidenced by the Nasdaq seeing its opening gains more than halved and decliners on the tech-heavy Composite recently edging past advancers, Technology now clinging to a miniscule 0.08% advance is contributing to the lack of conviction on the part of buyers. Brokerage stocks failing to take advantage of more M&A news is also acting as an offset to the stronger gains enjoyed at the onset of today's trading. The Financials sector is up only 0.2%. DJ30 +24.94 NASDAQ +2.91 SOX -0.1% SP500 +3.40 NASDAQ Dec/Adv/Vol 1434/1307/318 mln NYSE Dec/Adv/Vol 1204/1663/202 mln
10:00 am : The indices are holding steady near their opening highs as the bulk of industry leadership remains positive. Of the nine sectors trading higher, Materials (+1.1%) is pacing the way; but that is to be expected since the 20% premium Alcoa is paying for Alcan earmarks Aluminum (+5.2%) as today's best performing S&P industry group.
Unfortunately for the bulls, the sector is the least influential on the S&P 500, holding only a 3.1% weighting. Telecom (+0.7%) and Utilities (+0.6%) round out today's top three; but again, their combined weighting of 7.4% is also why overall market gains remain modest in scope. DJ30 +33.50 NASDAQ +5.65 SP500 +4.61 NASDAQ Dec/Adv/Vol 1096/1467/142 mln NYSE Dec/Adv/Vol 951/1663/74 mln
09:40 am : Per usual for a Monday, some more M&A news has armed the bulls with an opportunity to build on five consecutive weeks of market gains. The most notable deal this morning involves Alcoa (AA 37.50 +1.84). The Dow component is actually up more than 5% after making a hostile cash and stock bid valued at approximately $33 bln for rival Alcan (AL 80.30 +19.27).
Investors are also finding comfort in some upbeat commentary from Warren Buffett. The billionaire investor said over the weekend at Berkshire Hathaway's annual shareholder meeting that it is open to making a "huge" acquisition of between $40 and $60 bln. Berkshire ended March with $46 bln in cash. DJ30 +31.94 NASDAQ +6.34 SP500 +3.92 NASDAQ Vol 90 mln NYSE Vol 48 mln
09:15 am : S&P futures vs fair value: +2.5. Nasdaq futures vs fair value: +2.0.
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