AI
Friday, October 19, 2007 8:20:36 PM
Market Update 071019
http://biz.yahoo.com/mu/update.html
4:30 pm : Friday marked the 20th anniversary of the 1987 stock market crash, otherwise known as Black Monday. On that October day, the Dow Jones Industrial Average plummeted 22.6%. Against such a benchmark, today's 2.6% decline in the Dow doesn't look all that bad.
That was then, of course, and this is now. Before discussing the action on October 19, 2007, however, let's get one thing out of the way. It is nonsense to think participants were selling because of the psychological impact of the anniversary. Friday's bearish disposition was merely a coincidence and nothing more.
What Friday's action did signal, though, was some genuine concern about the U.S. economy that emanated from cautious commentary/lackluster results out of leading companies such as Caterpillar (CAT73.57, -4.09), Harley-Davidson (HOG 48.30, -0.65), Wachovia (WB 46.40, -1.74), 3M (MMM 86.62, -6.11) and Schlumberger (SLB 99.32, -12.30).
With the exception of Wachovia, each of the aforementioned companies topped third quarter earnings estimates. The stumbling point for investors were comments regarding weakness, or expected weakness, in the U.S./North American markets.
In terms of Wachovia, it missed the consensus EPS estimate of $1.04 by 14 cents, and like others in its industry reporting this week, it made note of an increased provision for credit losses and a deterioration in credit quality.
The latter played into concerns that the third quarter might not have marked the worst for the financial sector. That sense of uncertainty factored into Briefing.com's decision to reiterate its Underweight rating on the financial sector on October 8.
Separately, the rash of lousy earnings reports from the banking sector, combined with signs this week that the housing market continues to deteriorate, raised the market's fear factor about ongoing credit market risk. A telltale sign of the concern was the rally in the Treasury market.
The 10-year note jumped 28 ticks, lowering its yield to 4.38%. The 2-year note, meanwhile, saw its yield drop 14 basis points to 3.76%. When the week began the yields on these government-backed issues were 4.68% and 4.23%, respectively.
The indiscriminate selling in the stock market was another indication of investors' angst. Some groups, like energy (-4.3%), financial (-2.9%) and industrials (-2.9%), were hit harder than others, but the recognition that all sectors were down at least 1.0% showed there was little appetite for owning stocks in this uncertain period.
In light of the weak showing from the stock market, the dollar stayed on the defensive as the dollar index shed 0.24% against a basket of other major currencies.
Taking a step back, the action in the major indices on Friday was pretty much the equal and opposite reaction to the gains that were registered on September 18th when the FOMC cut the fed funds rate by 50 basis points to 4.75%. Recall that the Dow, Nasdaq and S&P surged 336, 70, and 43 points that day. How fitting then that the fed funds futures are now pricing in a near 100% probability of a rate cut at the October 30-31 meeting after pricing in only a 50% probability just a few days ago.
It wasn't a good day at all on Wall Street. Down volume swamped up volume at the NYSE by a 19-to-1 margin; and the ratio was 10-to-1 at the Nasdaq. An options expiration today added to the trading totals.
After Friday's retreat, the broader market is still up up 5.80% for the year.DJ30 -366.94 NASDAQ -74.15 SP500 -39.45 NASDAQ Dec/Adv/Vol 2507/478/2.41 bln NYSE Dec/Adv/Vol 2775/522/1.78 bln
3:30 pm : The bears are in control as the market slips further. The three major indices are at new session lows and down at least 2.3%.
The energy sector (-3.8%) is currently the main laggard. The sector, however, is still the leader this year, as it is up 31.9% year-to-date.
The ten-year note closed up 26/32, pushing its yield down to 4.39%
Next week brings another barrage of earnings reports. Some notable names set to report on Monday include, Merck (MRK 53.52, +0.13), American Express (AXP 57.44, -1.22), Apple (AAPL 172.48, -1.02) and Texas Instruments (TXN 33.98, -0.42)
DJ30 -322.54 NASDAQ -67.00 SP500 -35.74 NASDAQ Dec/Adv/Vol 2405/546/1.88 bln NYSE Dec/Adv/Vol 2652/594/1.29 bln
3:00 pm : Downward pressure persists, as the indices trade into new session lows. The major indices are now trading with losses close to 2.0%.
The financial sector (-2.5%) continues to lag. All of its industries are in the red, with investment banks & brokerages (-4.0%) down the most.
Defensive sectors are performing slightly better. The telecom (-0.4%), consumer staples (-0.5%), healthcare (-0.7%) and utilities (-1.7%) sectors are performing relatively well. DJ30 -282.89 NASDAQ -52.87 SP500 -30.02 NASDAQ Dec/Adv/Vol 2302/630/1.70 bln NYSE Dec/Adv/Vol 2616/623/1.17 bln
2:30 pm : Selling pressure has picked up, as the indices have hit fresh intraday lows since the last update. The financial sector (-2.2%) is playing a large role in the dip, as it is now substantially underperforming.
Oil field operator Schlumberger Limited's (SLB 100.50, -11.12) stock is down sharply despite the company's earnings beating both the top and bottom lines. Bloomberg.com stated the drop is due to Schlumberger's CEO commenting that projects will be delayed in Nigeria and the Caspian region. DJ30 -233.00 NASDAQ -44.32 SP500 -24.44 NASDAQ Dec/Adv/Vol 2250/669/1.55 bln NYSE Dec/Adv/Vol 2574/660/1.05
2:00 pm : The indices continue to trade in the red, as all ten economic sectors hold in negative territory.
Harley-Davidson's (HOG 48.61, -0.34) stock is in the red, despite topping earnings estimates. A 15.3% year-over-year decrease in its third quarter income, equal to $265 million, is weighing on the stock. Earnings per share declined 10.8% to $1.07, which was three cents better than the consensus estimate.
Separately, according to Bloomberg, Morgan Stanley said crude oil is "likely to come down sharply" and has "overshot fundamentals." DJ30 -203.55 NASDAQ -40.44 SP500 -21.87 NASDAQ Dec/Adv/Vol 2210/664/1.45 bln NYSE Dec/Adv/Vol 2567/657/1.01 bln
1:35 pm : Since the last update, the stock market has had some slight selling pressure, and is currently trading near its lowest levels of the session.
Advancers are outweighing decliners this session. At the NYSE, only 590 stocks are in the green, while 2508 are in the red. Volume is on the heavier side, when compared to recent trading sessions.
Crude oil is currently down 1.6% to $88.00.DJ30 -226.15 NASDAQ -46.74 SP500 -24.40 NASDAQ Dec/Adv/Vol 2199/655/1.35 bln NYSE Dec/Adv/Vol 2508/590/923 mln
1:00 pm : The indices are largely unchanged since the last update. The Dow is slightly lagging the S&P.
25 of the 30 Dow components are in the red. 3M (MMM 88.61, -6.11), Caterpillar (CAT 74.81, -2.86) and Honeywell (HON 58.51, -2.18) are the main laggards in the DJIA.
3M beat third quarter earnings expectations and issued in-line FY07 earnings guidance. The stock is down though, reportedly because the company said it would reduce the price on film for LCD televisions due to competitive pressures.
On top of missing its consensus estimate by $0.03 per share, Caterpillar now sees FY07 EPS of $5.20-5.60, compared to previous guidance of $5.30-5.80 and consensus of $5.45.
Honeywell reported earnings of $0.81 per share, which fell one cent shy of its consensus estimate. DJ30 -195.26 NASDAQ -37.99 SP500 -19.89 NASDAQ Dec/Adv/Vol 2118/701/1.25 bln NYSE Dec/Adv/Vol 2469/706/865 mln
12:30 pm : The major indices are off their lows after a modest broad-based pickup in buying interest. The indices, though, are still trading down more than 1.2%.
The small-cap Russell 2000 Index is performing slightly worse than its large-cap counterparts.
DJ30 -196.43 NASDAQ -36.98 R2K -1.4% SP500 -19.57 NASDAQ Dec/Adv/Vol 2125/676/1.13 bln NYSE Dec/Adv/Vol 2497/667/799 mln
12:00 pm : The major indices have been in negative territory throughout the session. The lack of buying interest stems from increased concerns about a further deterioration in credit quality and risks to the credit market.
Third quarter earnings news was mixed, as another major bank missed its earnings expectations.
Wachovia (WB 47.15, -0.99) reported third quarter earnings of $0.90 per share, which was $0.14 less than the consensus estimate. Punk Ziegel and Friedman Billings downgraded the company to Market Perform. Ziegel based its downgrade on the significant deterioration in the quality of Wachovia's loan portfolio as evidenced in its third quarter report.
Other major companies that missed their earnings estimates include Caterpillar (CAT 74.84, -2.82 ) and Honeywell (HON 58.02, -2.67).
On a positive note, Google (GOOG 647.20, +7.58) reported a 46% increase in third quarter earnings, beating analysts' expectations, as it continued to expand its vast advertising network. Revenue totaled $4.23 billion in the quarter, an increase of 57.3% from last year and better than the consensus estimate of $4.13 billion.
Harley-Davidson (HOG 48.51, -0.44), Advanced Micro Devices (AMD 13.84, -0.71), SanDisk (SNDK 44.65, -5.66) and 3M (MMM 88.09, -6.64) topped their earning expectations. McDonald's (MCD 56.70, -0.09 ) earnings were in-line with expectations.
All ten economic sectors are in negative territory, with the energy sector (-2.7%) currently the worst performer. The industrial (-1.8%), financial (-1.3%) and tech (-1.2%) sectors are also notable drags.
There has been a flight to quality to the Treasury market. The 10-year note is up 19/32, pushing the yield down to 4.41%.
Crude oil has slipped 0.6% to $88.95, but still remains a concern as prices are historically high. The dollar index is flat. DJ30 -188.51 NASDAQ -35.28 SP500 -18.47 NASDAQ Dec/Adv/Vol 2191/587/1.02 bln NYSE Dec/Adv/Vol 2516/604/721 mln
11:30 am : The stock market is trading slightly above its intraday lows. The recent decline was broad-based, but the financial sector (-1.4%) is a major drag as it went from being an outperformer to an underperformer.
SanDisk (SNDK 44.89, -5.42), the world's largest flash memory maker, posted net income of $84.6 million, or $0.36 per share, versus $103 million, or $0.51 per share, a year earlier. However, excluding acquisition-related charges and other one-time items, the company earned $0.54 per share. That easily beat analysts' expectations for earnings of $0.33 per share.
Despite the company beating estimates, the stock is currently down 10.8%. Investors are disappointed that company's gross margins were only 26.4%, below the 31.8% forecast. DJ30 -201.19 NASDAQ -37.89 SP500 -20.21 NASDAQ Dec/Adv/Vol 2137/577/875 mln NYSE Dec/Adv/Vol 2459/586/560 mln
11:00 am : The major indices have extended their losses amid a dearth of buying interest. All 10 economic sectors are in negative territory, with energy (-2.5%) being the worst performer today.
There is notable weakness in other key leadership areas, namely technology (-1.3%), financial (-1.2%) and industrials (-1.9%).
The lack of buying interest stems from increased concerns about a further deterioration in credit quality and risks to the credit market. A flight to quality bid is evident in the Treasury market where buying interest has been notable at both the front-end and the back-end of the yield curve.DJ30 -207.53 NASDAQ -43.12 SP500 -21.24 NASDAQ Dec/Adv/Vol 2041/586/658 mln NYSE Dec/Adv/Vol 2360/641/481 mln
10:30 am : The major indices have slipped since the last update. The telecom sector (+0.1%), however, has managed to make it to positive territory. Sprint (S 17.73, +0.11) is the sector leader.
Google (GOOG 648.25, +8.63) is one of the relatively few Nasdaq components currently posting a gain. The company reported a 46% increase in third quarter earnings, beating analysts' expectations, as it continued to expand its vast advertising network. Revenue totaled $4.23 billion in the quarter, an increase of 57.3% from last year and better than the consensus estimate of $4.13 billion.DJ30 -157.35 NASDAQ -30.90 SP500 -14.89 NASDAQ Dec/Adv/Vol 1948/593/515 mln NYSE Dec/Adv/Vol 2380/528/395 mln
10:00 am : The major indices are posting losses. There are concerns over deteriorating credit quality.
All ten economic sectors are in negative territory. The energy (-2.1%) and industrials (-1.1%) sectors are the main laggards. The financial sector (-0.5%), which was a laggard yesterday, is slightly outperforming the broader market.
Crude oil futures have slipped -0.8% to $88.72. DJ30 -104.94 NASDAQ -18.43 SP500 -10.29 NASDAQ Dec/Adv/Vol 1780/607/312 mln NYSE Dec/Adv/Vol 2032/592/256 mln
09:45 am : The major indices opened in the red after another major bank failed to meet earnings expectations.
Wachovia (WB) reported third quarter earnings of $0.90 per share, compared to the consensus estimate of $1.04. Tech companies fared better. Google (GOOG), Sandisk (SNDK) and Advanced Micro Devices (AMD) beat their earnings estimates. DJ30 -129.25 NASDAQ -17.15 SP500 -12.30
09:15 am : S&P futures vs fair value: -9.0. Nasdaq futures vs fair value: -0.5.
09:00 am : S&P futures vs fair value: -6.7. Nasdaq futures vs fair value: +4.0. There aren't any economic releases scheduled for today.
08:30 am : S&P futures vs fair value: -7.3. Nasdaq futures vs fair value: +3.0. Futures continue to point to a mixed opening. McDonald’s (MCD) third quarter earnings came in at $0.83 per share, which was in-line with the consensus estimate.
08:00 am : S&P futures vs fair value: -6.7. Nasdaq futures vs fair value: +5.5. Futures point to a mixed opening. Google (GOOG), Advanced Micro Devices (AMD), Sandisk (SNDK), Harley-Davidson (HOG) and 3M (MMM) topped their earning expectations. Meanwhile, Honeywell (HON), Caterpillar (CAT) and Wachovia (WB) missed their earnings estimates. Crude oil is pushing towards $90 a barrel, and is weighing on the market.
06:18 am : S&P futures vs fair value: -8.7. Nasdaq futures vs fair value: -3.5.
http://biz.yahoo.com/mu/update.html
4:30 pm : Friday marked the 20th anniversary of the 1987 stock market crash, otherwise known as Black Monday. On that October day, the Dow Jones Industrial Average plummeted 22.6%. Against such a benchmark, today's 2.6% decline in the Dow doesn't look all that bad.
That was then, of course, and this is now. Before discussing the action on October 19, 2007, however, let's get one thing out of the way. It is nonsense to think participants were selling because of the psychological impact of the anniversary. Friday's bearish disposition was merely a coincidence and nothing more.
What Friday's action did signal, though, was some genuine concern about the U.S. economy that emanated from cautious commentary/lackluster results out of leading companies such as Caterpillar (CAT73.57, -4.09), Harley-Davidson (HOG 48.30, -0.65), Wachovia (WB 46.40, -1.74), 3M (MMM 86.62, -6.11) and Schlumberger (SLB 99.32, -12.30).
With the exception of Wachovia, each of the aforementioned companies topped third quarter earnings estimates. The stumbling point for investors were comments regarding weakness, or expected weakness, in the U.S./North American markets.
In terms of Wachovia, it missed the consensus EPS estimate of $1.04 by 14 cents, and like others in its industry reporting this week, it made note of an increased provision for credit losses and a deterioration in credit quality.
The latter played into concerns that the third quarter might not have marked the worst for the financial sector. That sense of uncertainty factored into Briefing.com's decision to reiterate its Underweight rating on the financial sector on October 8.
Separately, the rash of lousy earnings reports from the banking sector, combined with signs this week that the housing market continues to deteriorate, raised the market's fear factor about ongoing credit market risk. A telltale sign of the concern was the rally in the Treasury market.
The 10-year note jumped 28 ticks, lowering its yield to 4.38%. The 2-year note, meanwhile, saw its yield drop 14 basis points to 3.76%. When the week began the yields on these government-backed issues were 4.68% and 4.23%, respectively.
The indiscriminate selling in the stock market was another indication of investors' angst. Some groups, like energy (-4.3%), financial (-2.9%) and industrials (-2.9%), were hit harder than others, but the recognition that all sectors were down at least 1.0% showed there was little appetite for owning stocks in this uncertain period.
In light of the weak showing from the stock market, the dollar stayed on the defensive as the dollar index shed 0.24% against a basket of other major currencies.
Taking a step back, the action in the major indices on Friday was pretty much the equal and opposite reaction to the gains that were registered on September 18th when the FOMC cut the fed funds rate by 50 basis points to 4.75%. Recall that the Dow, Nasdaq and S&P surged 336, 70, and 43 points that day. How fitting then that the fed funds futures are now pricing in a near 100% probability of a rate cut at the October 30-31 meeting after pricing in only a 50% probability just a few days ago.
It wasn't a good day at all on Wall Street. Down volume swamped up volume at the NYSE by a 19-to-1 margin; and the ratio was 10-to-1 at the Nasdaq. An options expiration today added to the trading totals.
After Friday's retreat, the broader market is still up up 5.80% for the year.DJ30 -366.94 NASDAQ -74.15 SP500 -39.45 NASDAQ Dec/Adv/Vol 2507/478/2.41 bln NYSE Dec/Adv/Vol 2775/522/1.78 bln
3:30 pm : The bears are in control as the market slips further. The three major indices are at new session lows and down at least 2.3%.
The energy sector (-3.8%) is currently the main laggard. The sector, however, is still the leader this year, as it is up 31.9% year-to-date.
The ten-year note closed up 26/32, pushing its yield down to 4.39%
Next week brings another barrage of earnings reports. Some notable names set to report on Monday include, Merck (MRK 53.52, +0.13), American Express (AXP 57.44, -1.22), Apple (AAPL 172.48, -1.02) and Texas Instruments (TXN 33.98, -0.42)
DJ30 -322.54 NASDAQ -67.00 SP500 -35.74 NASDAQ Dec/Adv/Vol 2405/546/1.88 bln NYSE Dec/Adv/Vol 2652/594/1.29 bln
3:00 pm : Downward pressure persists, as the indices trade into new session lows. The major indices are now trading with losses close to 2.0%.
The financial sector (-2.5%) continues to lag. All of its industries are in the red, with investment banks & brokerages (-4.0%) down the most.
Defensive sectors are performing slightly better. The telecom (-0.4%), consumer staples (-0.5%), healthcare (-0.7%) and utilities (-1.7%) sectors are performing relatively well. DJ30 -282.89 NASDAQ -52.87 SP500 -30.02 NASDAQ Dec/Adv/Vol 2302/630/1.70 bln NYSE Dec/Adv/Vol 2616/623/1.17 bln
2:30 pm : Selling pressure has picked up, as the indices have hit fresh intraday lows since the last update. The financial sector (-2.2%) is playing a large role in the dip, as it is now substantially underperforming.
Oil field operator Schlumberger Limited's (SLB 100.50, -11.12) stock is down sharply despite the company's earnings beating both the top and bottom lines. Bloomberg.com stated the drop is due to Schlumberger's CEO commenting that projects will be delayed in Nigeria and the Caspian region. DJ30 -233.00 NASDAQ -44.32 SP500 -24.44 NASDAQ Dec/Adv/Vol 2250/669/1.55 bln NYSE Dec/Adv/Vol 2574/660/1.05
2:00 pm : The indices continue to trade in the red, as all ten economic sectors hold in negative territory.
Harley-Davidson's (HOG 48.61, -0.34) stock is in the red, despite topping earnings estimates. A 15.3% year-over-year decrease in its third quarter income, equal to $265 million, is weighing on the stock. Earnings per share declined 10.8% to $1.07, which was three cents better than the consensus estimate.
Separately, according to Bloomberg, Morgan Stanley said crude oil is "likely to come down sharply" and has "overshot fundamentals." DJ30 -203.55 NASDAQ -40.44 SP500 -21.87 NASDAQ Dec/Adv/Vol 2210/664/1.45 bln NYSE Dec/Adv/Vol 2567/657/1.01 bln
1:35 pm : Since the last update, the stock market has had some slight selling pressure, and is currently trading near its lowest levels of the session.
Advancers are outweighing decliners this session. At the NYSE, only 590 stocks are in the green, while 2508 are in the red. Volume is on the heavier side, when compared to recent trading sessions.
Crude oil is currently down 1.6% to $88.00.DJ30 -226.15 NASDAQ -46.74 SP500 -24.40 NASDAQ Dec/Adv/Vol 2199/655/1.35 bln NYSE Dec/Adv/Vol 2508/590/923 mln
1:00 pm : The indices are largely unchanged since the last update. The Dow is slightly lagging the S&P.
25 of the 30 Dow components are in the red. 3M (MMM 88.61, -6.11), Caterpillar (CAT 74.81, -2.86) and Honeywell (HON 58.51, -2.18) are the main laggards in the DJIA.
3M beat third quarter earnings expectations and issued in-line FY07 earnings guidance. The stock is down though, reportedly because the company said it would reduce the price on film for LCD televisions due to competitive pressures.
On top of missing its consensus estimate by $0.03 per share, Caterpillar now sees FY07 EPS of $5.20-5.60, compared to previous guidance of $5.30-5.80 and consensus of $5.45.
Honeywell reported earnings of $0.81 per share, which fell one cent shy of its consensus estimate. DJ30 -195.26 NASDAQ -37.99 SP500 -19.89 NASDAQ Dec/Adv/Vol 2118/701/1.25 bln NYSE Dec/Adv/Vol 2469/706/865 mln
12:30 pm : The major indices are off their lows after a modest broad-based pickup in buying interest. The indices, though, are still trading down more than 1.2%.
The small-cap Russell 2000 Index is performing slightly worse than its large-cap counterparts.
DJ30 -196.43 NASDAQ -36.98 R2K -1.4% SP500 -19.57 NASDAQ Dec/Adv/Vol 2125/676/1.13 bln NYSE Dec/Adv/Vol 2497/667/799 mln
12:00 pm : The major indices have been in negative territory throughout the session. The lack of buying interest stems from increased concerns about a further deterioration in credit quality and risks to the credit market.
Third quarter earnings news was mixed, as another major bank missed its earnings expectations.
Wachovia (WB 47.15, -0.99) reported third quarter earnings of $0.90 per share, which was $0.14 less than the consensus estimate. Punk Ziegel and Friedman Billings downgraded the company to Market Perform. Ziegel based its downgrade on the significant deterioration in the quality of Wachovia's loan portfolio as evidenced in its third quarter report.
Other major companies that missed their earnings estimates include Caterpillar (CAT 74.84, -2.82 ) and Honeywell (HON 58.02, -2.67).
On a positive note, Google (GOOG 647.20, +7.58) reported a 46% increase in third quarter earnings, beating analysts' expectations, as it continued to expand its vast advertising network. Revenue totaled $4.23 billion in the quarter, an increase of 57.3% from last year and better than the consensus estimate of $4.13 billion.
Harley-Davidson (HOG 48.51, -0.44), Advanced Micro Devices (AMD 13.84, -0.71), SanDisk (SNDK 44.65, -5.66) and 3M (MMM 88.09, -6.64) topped their earning expectations. McDonald's (MCD 56.70, -0.09 ) earnings were in-line with expectations.
All ten economic sectors are in negative territory, with the energy sector (-2.7%) currently the worst performer. The industrial (-1.8%), financial (-1.3%) and tech (-1.2%) sectors are also notable drags.
There has been a flight to quality to the Treasury market. The 10-year note is up 19/32, pushing the yield down to 4.41%.
Crude oil has slipped 0.6% to $88.95, but still remains a concern as prices are historically high. The dollar index is flat. DJ30 -188.51 NASDAQ -35.28 SP500 -18.47 NASDAQ Dec/Adv/Vol 2191/587/1.02 bln NYSE Dec/Adv/Vol 2516/604/721 mln
11:30 am : The stock market is trading slightly above its intraday lows. The recent decline was broad-based, but the financial sector (-1.4%) is a major drag as it went from being an outperformer to an underperformer.
SanDisk (SNDK 44.89, -5.42), the world's largest flash memory maker, posted net income of $84.6 million, or $0.36 per share, versus $103 million, or $0.51 per share, a year earlier. However, excluding acquisition-related charges and other one-time items, the company earned $0.54 per share. That easily beat analysts' expectations for earnings of $0.33 per share.
Despite the company beating estimates, the stock is currently down 10.8%. Investors are disappointed that company's gross margins were only 26.4%, below the 31.8% forecast. DJ30 -201.19 NASDAQ -37.89 SP500 -20.21 NASDAQ Dec/Adv/Vol 2137/577/875 mln NYSE Dec/Adv/Vol 2459/586/560 mln
11:00 am : The major indices have extended their losses amid a dearth of buying interest. All 10 economic sectors are in negative territory, with energy (-2.5%) being the worst performer today.
There is notable weakness in other key leadership areas, namely technology (-1.3%), financial (-1.2%) and industrials (-1.9%).
The lack of buying interest stems from increased concerns about a further deterioration in credit quality and risks to the credit market. A flight to quality bid is evident in the Treasury market where buying interest has been notable at both the front-end and the back-end of the yield curve.DJ30 -207.53 NASDAQ -43.12 SP500 -21.24 NASDAQ Dec/Adv/Vol 2041/586/658 mln NYSE Dec/Adv/Vol 2360/641/481 mln
10:30 am : The major indices have slipped since the last update. The telecom sector (+0.1%), however, has managed to make it to positive territory. Sprint (S 17.73, +0.11) is the sector leader.
Google (GOOG 648.25, +8.63) is one of the relatively few Nasdaq components currently posting a gain. The company reported a 46% increase in third quarter earnings, beating analysts' expectations, as it continued to expand its vast advertising network. Revenue totaled $4.23 billion in the quarter, an increase of 57.3% from last year and better than the consensus estimate of $4.13 billion.DJ30 -157.35 NASDAQ -30.90 SP500 -14.89 NASDAQ Dec/Adv/Vol 1948/593/515 mln NYSE Dec/Adv/Vol 2380/528/395 mln
10:00 am : The major indices are posting losses. There are concerns over deteriorating credit quality.
All ten economic sectors are in negative territory. The energy (-2.1%) and industrials (-1.1%) sectors are the main laggards. The financial sector (-0.5%), which was a laggard yesterday, is slightly outperforming the broader market.
Crude oil futures have slipped -0.8% to $88.72. DJ30 -104.94 NASDAQ -18.43 SP500 -10.29 NASDAQ Dec/Adv/Vol 1780/607/312 mln NYSE Dec/Adv/Vol 2032/592/256 mln
09:45 am : The major indices opened in the red after another major bank failed to meet earnings expectations.
Wachovia (WB) reported third quarter earnings of $0.90 per share, compared to the consensus estimate of $1.04. Tech companies fared better. Google (GOOG), Sandisk (SNDK) and Advanced Micro Devices (AMD) beat their earnings estimates. DJ30 -129.25 NASDAQ -17.15 SP500 -12.30
09:15 am : S&P futures vs fair value: -9.0. Nasdaq futures vs fair value: -0.5.
09:00 am : S&P futures vs fair value: -6.7. Nasdaq futures vs fair value: +4.0. There aren't any economic releases scheduled for today.
08:30 am : S&P futures vs fair value: -7.3. Nasdaq futures vs fair value: +3.0. Futures continue to point to a mixed opening. McDonald’s (MCD) third quarter earnings came in at $0.83 per share, which was in-line with the consensus estimate.
08:00 am : S&P futures vs fair value: -6.7. Nasdaq futures vs fair value: +5.5. Futures point to a mixed opening. Google (GOOG), Advanced Micro Devices (AMD), Sandisk (SNDK), Harley-Davidson (HOG) and 3M (MMM) topped their earning expectations. Meanwhile, Honeywell (HON), Caterpillar (CAT) and Wachovia (WB) missed their earnings estimates. Crude oil is pushing towards $90 a barrel, and is weighing on the market.
06:18 am : S&P futures vs fair value: -8.7. Nasdaq futures vs fair value: -3.5.
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