AI
Thursday, November 01, 2007 5:20:22 PM
Market Update 071101
http://biz.yahoo.com/mu/update.html
4:25 pm : The stock market started November on a sharply lower note. On Thursday, a downgrade of Citigroup (C 38.51, -2.85), a disappointing earnings report from Exxon Mobil (XOM 88.48, -3.52), and a less than stellar ISM Index reading in the wake of Wednesday's questionable rally prompted a broad-based sell off.
Yesterday, the stock market rallied following the Fed's decision to cut policy rates by 25 basis points. Briefing.com believes the market got ahead of itself, considering a 25 basis point cut was expected. Additionally, wording in the Fed's directive indicates that future rate cuts are far from certain.
Citigroup was downgraded by CIBC to Sector Perform from Sector Outperform this morning. The downgrade, though, isn't the focal point for investors so much as the thesis behind the ratings change.
CIBC analyst Meredith Whitney believes that Citigroup will need to raise more than $30 billion in capital over the near-term through either asset sales, a dividend cut, a capital raise, or a combination thereof. Whitney adds that Citigroup's tangible capital ratio stands at just 2.8 percent versus an average of 5.0 percent for its peers.
Meanwhile, Exxon Mobil, the world's largest company by market cap, reported its biggest drop in quarterly profits in more than three years. The company reported net income of $9.41 billion or $1.70 per share - four cents below estimates.
Economic data were mixed on Thursday. The national ISM survey of manufacturing conditions for October disappointedly dipped to 50.9 from 52.0 in September. This was only a bit below expectations of a 51.5 reading, but gave investors a reason to take additional profits. A reading above 50 is intended to reflect manufacturing growth.
The Core PCE Deflator, income and spending for September were generally in-line with expectations. The core PCE deflator for September was up only 0.2 percent, indicating that inflation remains well contained.
New claims for unemployment for the week ended October 27 fell to 327,000 from 333,000 the week before. Despite sluggish economic growth, layoffs are low. When the recession started in 2001, claims jumped to 450,000 per month. This won't alter expectations of an 80,000 to 100,000 October payroll gain to be reported tomorrow.
All ten of the economic sectors spent the day in the red. Given the negative Citigroup headlines, it was not surprising that the financial sector (-4.6%) was the main laggard. The materials (-3.4%) and telecom (-2.9%) sectors also underperformed.
The tech (-1.7%), healthcare (-1.7%) and consumer staples (-1.9%) sectors outperformed on a relative basis.
There was risk aversion in the market today as indicated by the rally in bonds and the relative outperformance of the defensive sectors. Also, the small-cap Russell 2000 Index had a steep 4.0 percent drop.
Crude oil hit an all-time high of $96.24 in electronic trade, but retreated during the day to $92.86.DJ30 -362.14 NASDAQ -64.29 SP500 -40.94 NASDAQ Dec/Adv/Vol 2465/576/2.58 bln NYSE Dec/Adv/Vol 2838/436/1.75 bln
3:30 pm : The major indices have hit fresh intraday lows following another increase in selling interest. There is not a specific news item that accounts for the dip and selling is broad-based.
Tomorrow, the market will be digesting earnings reports from 172 companies. On the economic front, the potentially market moving employment report will be released. This report includes nonfarm payrolls, unemployment rate, hourly earnings and average workweek.DJ30 -313.94 NASDAQ -54.95 SP500 -36.14 NASDAQ Dec/Adv/Vol 2373/633/1.97 bln NYSE Dec/Adv/Vol 2694/540/1.21 bln
2:55 pm : The stock market is off its lows following a modest increase in broad-based buying interest.
California utility holding company PG&E Corp. (PCG, 46.44, -2.49) announced third quarter earnings of $0.77 per share this morning , which were $0.08 below the consensus analyst estimate. Year-over-year, earnings per share decreased approximately 10 percent. DJ30 -236.22 NASDAQ -39.05 SP500 -26.13 NASDAQ Dec/Adv/Vol 2375/615/1.81 bln NYSE Dec/Adv/Vol 2716/496/1.11 bln
2:30 pm : The stock market is floating around its intraday lows. All ten economic sectors are in the red, with tech (-0.8%) outperforming on a relative basis.
Some large-cap tech stocks are giving a boost to the sector. Google (GOOG 709.84, +2.84 ) and Microsoft (MSFT 36.97, +0.16) are providing leadership.
Separately, the bond market continues to see a good deal of buying interest.DJ30 -261.42 NASDAQ -44.40 SP500 -28.53 NASDAQ Dec/Adv/Vol 2374/602/1.68 bln NYSE Dec/Adv/Vol 2704/504/1.03 bln
2:00 pm : Buyers remain on the sidelines as the Dow hits a fresh intraday low. The energy sector (-1.8%) has fallen in conjunction with crude oil for December delivery, which is down 1.8% to $92.88.
For the July to September period, CVS Caremark (CVS 40.57, -1.09) registered a 142.6 percent increase in net earnings to $689.5 million, or $0.45 per diluted share. Excluding a negative impact of approximately $0.01 per share for merger integration costs, the company's profit of $0.46 per diluted share topped analysts' consensus estimate by two cents. Net revenues surged 83 percent to $20.5 billion.
CVS shares have enjoyed a strong run of late (up 20 percent since the July low at today's opening price), so some profit taking on today's news was expected. Overall, though, Briefing.com continues to like what it sees unfolding at CVS and would recommend investors stick with the stock.
DJ30 -272.97 NASDAQ -45.81 SP500 -30.25 NASDAQ Dec/Adv/Vol 2319/636/1.51 bln NYSE Dec/Adv/Vol 2619/564/927
1:30 pm : Since the economic releases in the morning, there has not been much market moving news. That has kept the major indices heading mostly sideways relative to their large intraday ranges.
In currency trading, the dollar has strengthened as indicated by the DXY Index which is up 0.13%. Meanwhile the CRB Index, which tracks commodities, is down 0.27%.DJ30 -218.99 NASDAQ -34.36 SP500 -23.44 NASDAQ Dec/Adv/Vol 2293/637/1.40 bln NYSE Dec/Adv/Vol 2585/585/873 mln
12:55 pm : The major indices continue to trade in negative territory, with the Dow slightly trailing the broader market.
Only five of the 30 components in the Dow Jones Industrial Average are currently showing gains, with Microsoft (MSFT 37.29, +0.48) providing leadership. Financial stocks are the largest drags on the Dow. Citigroup (C 38.70, -2.66), AIG (AIG 60.39, -2.73) and JPMorgan (JPM 45.06, -1.94) are the main laggards.DJ30 -206.55 NASDAQ -35.50 SP500 -22.12 NASDAQ Dec/Adv/Vol 1.27 bln/2298/625 NYSE Dec/Adv/Vol 2596/547/786 mln
12:30 pm : Since the last update, the stock markets recovered some losses, but the gains are modest compared to this session's range. The energy sector (+0.02%) has had a notable turnaround as it follows crude oil's recovery.
Crude has pared a good portion of its intraday losses, and is now down 0.4% to $94.12. On Sept. 11th, OPEC decided to increase production by 500,000 barrels a day, which officially took effect today. DJ30 -183.39 NASDAQ -31.55 SP500 -19.66 NASDAQ Dec/Adv/Vol 2280/615/1.15 bln NYSE Dec/Adv/Vol 2619/498/703 mln
12:00 pm : Following yesterday's Fed induced rally, the stock market opened with substantial losses, and has remained in the red throughout the session. The main catalysts for the profit taking have been Dow components Citigroup (C 38.60, -2.76) and Exxon Mobil (XOM 89.90, -2.09).
CIBC downgraded Citigroup to Sector Perform from Sector Outperform this morning. The downgrade, though, isn't the focal point for investors so much as the thesis behind the ratings change.
CIBC analyst Meredith Whitney believes that Citigroup will need to raise more than $30 billion in capital over the near-term through either asset sales, a dividend cut, a capital raise, or a combination thereof. Whitney adds that Citigroup's tangible capital ratio stands at just 2.8 percent versus an average of 5.0 percent for its peers.
Meanwhile, Exxon Mobil , the largest company in the world by market cap, reported its biggest drop in quarterly profits in more than three years. The company reported net income of $9.41 billion or $1.70 per share - four cents below estimates.
Economic data were slightly negative this morning. The core PCE deflator for September and the weekly initial jobless claims were in-line with expectations. The ISM Index , however, came up short of economists' forecasts.
All ten economic sectors are in the red. Some of the most influential sectors are underperforming which is acting as a major drag on the broader market. The financial (-3.7%), energy (-1.7%) and consumer discretionary (-1.8%), which combined make up roughly 41 percent of the S&P 500, are laggards.
The tech, healthcare and utilities sectors are outperforming on a relative basis, but are still posting losses around 0.7%
Crude oil hit an all-time high of $96.24 in electronic trading, but has since retreated and is now down 1.3% to $93.33. DJ30 -220.00 NASDAQ -36.65 SP500 -24.73 NASDAQ Dec/Adv/Vol 2282/568/999 mln NYSE Dec/Adv/Vol 2600/500/607 mln
11:30 am : The stock market has headed mostly sideways in the past half hour.
Shares of shoemaker Crocs (CROX 53.50. -21.40) are getting clipped. The company reported earnings that beat expectations by $0.03 per share, but missed on the top line and gave just in-line FY07 guidance. Investors are disappointed that Crocs did not beat by more, as it has in the past.DJ30 -182.09 NASDAQ -29.24 SP500 -20.65 NYSE Adv 449
11:00 am : The major indices are off their lows after making modest gains. Losses are still substantial, though.
At the NYSE, the overwhelming majority of stocks are currently in the red. The advancers to decliners ratio is a mere 0.13. Meanwhile, volume is heavier than it has been the past few days.
The small-cap Russell 2000 Index is underperforming the broader market.DJ30 -189.89 NASDAQ -30.0 R2K -2.2% SP500 -21.37 NASDAQ Dec/Adv/Vol 2224/528/683 mln NYSE Dec/Adv/Vol 2637/378/409 mln
10:30 am : Buyers are not showing much interest as the stock market extends its losses following a disappointing economic report.
Released at the bottom of the hour, the October ISM Index, a survey of national manufacturing activity, dropped to 50.9, from a prior reading of 52.0. The number was also lower than consensus estimate of 51.5. A number above 50 is intended to indicate growth.
Conversely, the bond market has had a pickup in buying interest as stocks slide.DJ30 -217.37 NASDAQ -35.22 SP500 -25.43 NASDAQ Dec/Adv/Vol 2249/429/464 mln NYSE Dec/Adv/Vol 2537/356/185 mln
10:00 am : The Dow and S&P have given up all of yesterday's gains and then some as the stock market has had a substantial decline in the early-going. All of the major indices are in the red due to broad-based selling pressure. The financial sector (-3.3%) is the main drag as Citigroup's (C 38.43, -2.95) stock plummets.
Although third quarter GDP was strong, economic growth will slow in the fourth quarter. The earnings outlook is mediocre. So, it is understandable that the market will sell-off some today after yesterday's big rally. Of course, that is not to say a recovery is not possible today.
Meanwhile, crude oil is now down 2.0% to $92.73 after hitting an all-time high of $96.24 in electronic trading.DJ30 -191.43 NASDAQ -31.15 SP500 -21.75 NASDAQ Dec/Adv/Vol 2077/410/199 mln NYSE Dec/Adv/Vol 1722/270/58 mln
09:40 am : The stock market opened decidedly lower. Yesterday, the stock market rallied following the FOMC decision to cut policy rates by 25 basis points.
There are a few profit taking catalysts this morning. A CIBC analyst downgraded Citigroup (C) and asserted that the company may be forced to cut its dividend or sell off assets to meet a $30 billion capital shortfall.
A report from RealtyTrac that U.S. foreclosure activity increased 30 percent in the third quarter from the previous quarter and nearly doubled from the year-ago period.
Earnings reports were mixed today. Dow component Exxon Mobil (XOM), which has the largest market cap in the world, is a drag on the market after the company reported worse than expected third quarter earnings.
Core PCE Inflation and weekly initial jobless claims were in-line with expectations. DJ30 -181.92 NASDAQ -36.74 SP500 -22.61
09:16 am : S&P futures vs fair value: -16.3. Nasdaq futures vs fair value: -17.3.
09:00 am : S&P futures vs fair value: -18.8. Nasdaq futures vs fair value: -20.3. Additional profit taking has pushed the futures market lower. Oil is now flat at $94.58 a barrel.
08:33 am : S&P futures vs fair value: -10.0. Nasdaq futures vs fair value: -9.5. Futures dipped following a worse than expected earnings report from Dow component Exxon Mobil (XOM). At 8:30 ET, futures then made a slight recovery immediately following the Core PCE Inflation reading of 0.2% and the weekly initial jobless claims reading of 327k. Economists were expected the Core PCE Inflation to be 0.2% and the weekly initial jobless claims to be 330K.
08:01 am : S&P futures vs fair value: -8.3. Nasdaq futures vs fair value: -6.5. Futures are pointing to a lower open, but losses are modest compared to yesterday’s rally following the 25 basis point rate cuts. Profit taking catalysts include rising oil prices, a CIBC assertion that the Citigroup (C) has a $30 billion capital shortfall, and a report from RealtyTrac that U.S. foreclosures increased in the third quarter by 30%. The majority of today’s earnings reports have beat estimates.
06:21 am : S&P futures vs fair value: -6.7. Nasdaq futures vs fair value: -5.5.
06:20 am : FTSE...6681.00...-40.60...-0.6%. DAX...7995.98...-23.14...-0.3%.
http://biz.yahoo.com/mu/update.html
4:25 pm : The stock market started November on a sharply lower note. On Thursday, a downgrade of Citigroup (C 38.51, -2.85), a disappointing earnings report from Exxon Mobil (XOM 88.48, -3.52), and a less than stellar ISM Index reading in the wake of Wednesday's questionable rally prompted a broad-based sell off.
Yesterday, the stock market rallied following the Fed's decision to cut policy rates by 25 basis points. Briefing.com believes the market got ahead of itself, considering a 25 basis point cut was expected. Additionally, wording in the Fed's directive indicates that future rate cuts are far from certain.
Citigroup was downgraded by CIBC to Sector Perform from Sector Outperform this morning. The downgrade, though, isn't the focal point for investors so much as the thesis behind the ratings change.
CIBC analyst Meredith Whitney believes that Citigroup will need to raise more than $30 billion in capital over the near-term through either asset sales, a dividend cut, a capital raise, or a combination thereof. Whitney adds that Citigroup's tangible capital ratio stands at just 2.8 percent versus an average of 5.0 percent for its peers.
Meanwhile, Exxon Mobil, the world's largest company by market cap, reported its biggest drop in quarterly profits in more than three years. The company reported net income of $9.41 billion or $1.70 per share - four cents below estimates.
Economic data were mixed on Thursday. The national ISM survey of manufacturing conditions for October disappointedly dipped to 50.9 from 52.0 in September. This was only a bit below expectations of a 51.5 reading, but gave investors a reason to take additional profits. A reading above 50 is intended to reflect manufacturing growth.
The Core PCE Deflator, income and spending for September were generally in-line with expectations. The core PCE deflator for September was up only 0.2 percent, indicating that inflation remains well contained.
New claims for unemployment for the week ended October 27 fell to 327,000 from 333,000 the week before. Despite sluggish economic growth, layoffs are low. When the recession started in 2001, claims jumped to 450,000 per month. This won't alter expectations of an 80,000 to 100,000 October payroll gain to be reported tomorrow.
All ten of the economic sectors spent the day in the red. Given the negative Citigroup headlines, it was not surprising that the financial sector (-4.6%) was the main laggard. The materials (-3.4%) and telecom (-2.9%) sectors also underperformed.
The tech (-1.7%), healthcare (-1.7%) and consumer staples (-1.9%) sectors outperformed on a relative basis.
There was risk aversion in the market today as indicated by the rally in bonds and the relative outperformance of the defensive sectors. Also, the small-cap Russell 2000 Index had a steep 4.0 percent drop.
Crude oil hit an all-time high of $96.24 in electronic trade, but retreated during the day to $92.86.DJ30 -362.14 NASDAQ -64.29 SP500 -40.94 NASDAQ Dec/Adv/Vol 2465/576/2.58 bln NYSE Dec/Adv/Vol 2838/436/1.75 bln
3:30 pm : The major indices have hit fresh intraday lows following another increase in selling interest. There is not a specific news item that accounts for the dip and selling is broad-based.
Tomorrow, the market will be digesting earnings reports from 172 companies. On the economic front, the potentially market moving employment report will be released. This report includes nonfarm payrolls, unemployment rate, hourly earnings and average workweek.DJ30 -313.94 NASDAQ -54.95 SP500 -36.14 NASDAQ Dec/Adv/Vol 2373/633/1.97 bln NYSE Dec/Adv/Vol 2694/540/1.21 bln
2:55 pm : The stock market is off its lows following a modest increase in broad-based buying interest.
California utility holding company PG&E Corp. (PCG, 46.44, -2.49) announced third quarter earnings of $0.77 per share this morning , which were $0.08 below the consensus analyst estimate. Year-over-year, earnings per share decreased approximately 10 percent. DJ30 -236.22 NASDAQ -39.05 SP500 -26.13 NASDAQ Dec/Adv/Vol 2375/615/1.81 bln NYSE Dec/Adv/Vol 2716/496/1.11 bln
2:30 pm : The stock market is floating around its intraday lows. All ten economic sectors are in the red, with tech (-0.8%) outperforming on a relative basis.
Some large-cap tech stocks are giving a boost to the sector. Google (GOOG 709.84, +2.84 ) and Microsoft (MSFT 36.97, +0.16) are providing leadership.
Separately, the bond market continues to see a good deal of buying interest.DJ30 -261.42 NASDAQ -44.40 SP500 -28.53 NASDAQ Dec/Adv/Vol 2374/602/1.68 bln NYSE Dec/Adv/Vol 2704/504/1.03 bln
2:00 pm : Buyers remain on the sidelines as the Dow hits a fresh intraday low. The energy sector (-1.8%) has fallen in conjunction with crude oil for December delivery, which is down 1.8% to $92.88.
For the July to September period, CVS Caremark (CVS 40.57, -1.09) registered a 142.6 percent increase in net earnings to $689.5 million, or $0.45 per diluted share. Excluding a negative impact of approximately $0.01 per share for merger integration costs, the company's profit of $0.46 per diluted share topped analysts' consensus estimate by two cents. Net revenues surged 83 percent to $20.5 billion.
CVS shares have enjoyed a strong run of late (up 20 percent since the July low at today's opening price), so some profit taking on today's news was expected. Overall, though, Briefing.com continues to like what it sees unfolding at CVS and would recommend investors stick with the stock.
DJ30 -272.97 NASDAQ -45.81 SP500 -30.25 NASDAQ Dec/Adv/Vol 2319/636/1.51 bln NYSE Dec/Adv/Vol 2619/564/927
1:30 pm : Since the economic releases in the morning, there has not been much market moving news. That has kept the major indices heading mostly sideways relative to their large intraday ranges.
In currency trading, the dollar has strengthened as indicated by the DXY Index which is up 0.13%. Meanwhile the CRB Index, which tracks commodities, is down 0.27%.DJ30 -218.99 NASDAQ -34.36 SP500 -23.44 NASDAQ Dec/Adv/Vol 2293/637/1.40 bln NYSE Dec/Adv/Vol 2585/585/873 mln
12:55 pm : The major indices continue to trade in negative territory, with the Dow slightly trailing the broader market.
Only five of the 30 components in the Dow Jones Industrial Average are currently showing gains, with Microsoft (MSFT 37.29, +0.48) providing leadership. Financial stocks are the largest drags on the Dow. Citigroup (C 38.70, -2.66), AIG (AIG 60.39, -2.73) and JPMorgan (JPM 45.06, -1.94) are the main laggards.DJ30 -206.55 NASDAQ -35.50 SP500 -22.12 NASDAQ Dec/Adv/Vol 1.27 bln/2298/625 NYSE Dec/Adv/Vol 2596/547/786 mln
12:30 pm : Since the last update, the stock markets recovered some losses, but the gains are modest compared to this session's range. The energy sector (+0.02%) has had a notable turnaround as it follows crude oil's recovery.
Crude has pared a good portion of its intraday losses, and is now down 0.4% to $94.12. On Sept. 11th, OPEC decided to increase production by 500,000 barrels a day, which officially took effect today. DJ30 -183.39 NASDAQ -31.55 SP500 -19.66 NASDAQ Dec/Adv/Vol 2280/615/1.15 bln NYSE Dec/Adv/Vol 2619/498/703 mln
12:00 pm : Following yesterday's Fed induced rally, the stock market opened with substantial losses, and has remained in the red throughout the session. The main catalysts for the profit taking have been Dow components Citigroup (C 38.60, -2.76) and Exxon Mobil (XOM 89.90, -2.09).
CIBC downgraded Citigroup to Sector Perform from Sector Outperform this morning. The downgrade, though, isn't the focal point for investors so much as the thesis behind the ratings change.
CIBC analyst Meredith Whitney believes that Citigroup will need to raise more than $30 billion in capital over the near-term through either asset sales, a dividend cut, a capital raise, or a combination thereof. Whitney adds that Citigroup's tangible capital ratio stands at just 2.8 percent versus an average of 5.0 percent for its peers.
Meanwhile, Exxon Mobil , the largest company in the world by market cap, reported its biggest drop in quarterly profits in more than three years. The company reported net income of $9.41 billion or $1.70 per share - four cents below estimates.
Economic data were slightly negative this morning. The core PCE deflator for September and the weekly initial jobless claims were in-line with expectations. The ISM Index , however, came up short of economists' forecasts.
All ten economic sectors are in the red. Some of the most influential sectors are underperforming which is acting as a major drag on the broader market. The financial (-3.7%), energy (-1.7%) and consumer discretionary (-1.8%), which combined make up roughly 41 percent of the S&P 500, are laggards.
The tech, healthcare and utilities sectors are outperforming on a relative basis, but are still posting losses around 0.7%
Crude oil hit an all-time high of $96.24 in electronic trading, but has since retreated and is now down 1.3% to $93.33. DJ30 -220.00 NASDAQ -36.65 SP500 -24.73 NASDAQ Dec/Adv/Vol 2282/568/999 mln NYSE Dec/Adv/Vol 2600/500/607 mln
11:30 am : The stock market has headed mostly sideways in the past half hour.
Shares of shoemaker Crocs (CROX 53.50. -21.40) are getting clipped. The company reported earnings that beat expectations by $0.03 per share, but missed on the top line and gave just in-line FY07 guidance. Investors are disappointed that Crocs did not beat by more, as it has in the past.DJ30 -182.09 NASDAQ -29.24 SP500 -20.65 NYSE Adv 449
11:00 am : The major indices are off their lows after making modest gains. Losses are still substantial, though.
At the NYSE, the overwhelming majority of stocks are currently in the red. The advancers to decliners ratio is a mere 0.13. Meanwhile, volume is heavier than it has been the past few days.
The small-cap Russell 2000 Index is underperforming the broader market.DJ30 -189.89 NASDAQ -30.0 R2K -2.2% SP500 -21.37 NASDAQ Dec/Adv/Vol 2224/528/683 mln NYSE Dec/Adv/Vol 2637/378/409 mln
10:30 am : Buyers are not showing much interest as the stock market extends its losses following a disappointing economic report.
Released at the bottom of the hour, the October ISM Index, a survey of national manufacturing activity, dropped to 50.9, from a prior reading of 52.0. The number was also lower than consensus estimate of 51.5. A number above 50 is intended to indicate growth.
Conversely, the bond market has had a pickup in buying interest as stocks slide.DJ30 -217.37 NASDAQ -35.22 SP500 -25.43 NASDAQ Dec/Adv/Vol 2249/429/464 mln NYSE Dec/Adv/Vol 2537/356/185 mln
10:00 am : The Dow and S&P have given up all of yesterday's gains and then some as the stock market has had a substantial decline in the early-going. All of the major indices are in the red due to broad-based selling pressure. The financial sector (-3.3%) is the main drag as Citigroup's (C 38.43, -2.95) stock plummets.
Although third quarter GDP was strong, economic growth will slow in the fourth quarter. The earnings outlook is mediocre. So, it is understandable that the market will sell-off some today after yesterday's big rally. Of course, that is not to say a recovery is not possible today.
Meanwhile, crude oil is now down 2.0% to $92.73 after hitting an all-time high of $96.24 in electronic trading.DJ30 -191.43 NASDAQ -31.15 SP500 -21.75 NASDAQ Dec/Adv/Vol 2077/410/199 mln NYSE Dec/Adv/Vol 1722/270/58 mln
09:40 am : The stock market opened decidedly lower. Yesterday, the stock market rallied following the FOMC decision to cut policy rates by 25 basis points.
There are a few profit taking catalysts this morning. A CIBC analyst downgraded Citigroup (C) and asserted that the company may be forced to cut its dividend or sell off assets to meet a $30 billion capital shortfall.
A report from RealtyTrac that U.S. foreclosure activity increased 30 percent in the third quarter from the previous quarter and nearly doubled from the year-ago period.
Earnings reports were mixed today. Dow component Exxon Mobil (XOM), which has the largest market cap in the world, is a drag on the market after the company reported worse than expected third quarter earnings.
Core PCE Inflation and weekly initial jobless claims were in-line with expectations. DJ30 -181.92 NASDAQ -36.74 SP500 -22.61
09:16 am : S&P futures vs fair value: -16.3. Nasdaq futures vs fair value: -17.3.
09:00 am : S&P futures vs fair value: -18.8. Nasdaq futures vs fair value: -20.3. Additional profit taking has pushed the futures market lower. Oil is now flat at $94.58 a barrel.
08:33 am : S&P futures vs fair value: -10.0. Nasdaq futures vs fair value: -9.5. Futures dipped following a worse than expected earnings report from Dow component Exxon Mobil (XOM). At 8:30 ET, futures then made a slight recovery immediately following the Core PCE Inflation reading of 0.2% and the weekly initial jobless claims reading of 327k. Economists were expected the Core PCE Inflation to be 0.2% and the weekly initial jobless claims to be 330K.
08:01 am : S&P futures vs fair value: -8.3. Nasdaq futures vs fair value: -6.5. Futures are pointing to a lower open, but losses are modest compared to yesterday’s rally following the 25 basis point rate cuts. Profit taking catalysts include rising oil prices, a CIBC assertion that the Citigroup (C) has a $30 billion capital shortfall, and a report from RealtyTrac that U.S. foreclosures increased in the third quarter by 30%. The majority of today’s earnings reports have beat estimates.
06:21 am : S&P futures vs fair value: -6.7. Nasdaq futures vs fair value: -5.5.
06:20 am : FTSE...6681.00...-40.60...-0.6%. DAX...7995.98...-23.14...-0.3%.
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