AI
Friday, November 02, 2007 5:38:16 PM
Market Update 071102
http://biz.yahoo.com/mu/update.html
4:25 pm : Market bulls got the news they were waiting for on Friday when the October jobs report turned out to be better than expected. The data fueled some opening gains, but then was quickly relegated to an afterthought amid renewed concerns about the financial sector's prospects.
Once again, Merrill Lynch (MER 57.28, -4.91) was at the epicenter of the concerns as it got rocked by a Wall Street Journal article that suggested the investment bank was working with hedge funds in an attempt to delay taking losses on its mortgage-backed securities. In essence, the article insinuated that Merrill Lynch might be trying to hide the losses from investors, which evoked bad memories about the Enron scandal.
As if the Journal article wasn't enough, Deutsche Securities downgraded Merrill Lynch to Hold from Buy amid its concerns that new write-downs for collateralized debt obligations could approach $10 billion.
Merrill Lynch eventually defended itself against the Journal article, saying it had no reason to believe that any such inappropriate transactions occurred since that would be a clear violation of Merrill Lynch policy.
The defense helped stem some of the bleeding in the financial sector, which was down as much as 3.4 percent at one point, but it didn't do much to aid Merrill's stock. On a related note, there were rumors circulating that Goldman Sachs (GS 229.60, -10.61) might be announcing a large write-down, but Goldman Sachs told CNBC those rumors were not true.
By the end of the session, the financial sector (-1.5%) managed to cut its losses in half. Famed value investor Bill Miller of Legg Mason played a part in that happening as he was quoted as saying some of the greatest gains over the next five years will be in securities people are panicked about today (i.e., financials).
Also, there was a late report from CNBC, citing Dow Jones, that Citigroup (C 37.73, -0.78) was going to be holding an emergency board meeting over the weekend. Details of the meeting were not mentioned, but it was assumed that it might lead to a change in leadership at the troubled bank. That assumption was reflected in Citigroup's stock price, which pared its losses in the final hour.
The rebound in the financials helped the broader market recover from its morning lows, which were established with losses of 121, 21 and 16 points, respectively, for the Dow, Nasdaq and S&P. By the closing bell, though, all three major indices were back in positive territory.
Outside of the financial sector, there were several pockets of strength. The technology sector (+0.9%) was one such area as it refused to relinquish its leadership post thanks to the relative strength of large-cap issues.
The energy sector (+1.1%) was the best-performing area Friday, as it garnered support from a 2.6 percent gain in oil prices to $95.93 per barrel.
The jump in oil prices came in the wake of the jobs report that suggested the U.S. economy is still holding up quite well despite the troubles in the housing and credit markets. That consideration translated into an expectation that demand for energy will remain high.
With respect to the employment report, the government reported that nonfarm payrolls rose 166,000 in October while September payrolls were revised down slightly to 96,000 (from 110,000). The unemployment rate held steady at 4.7 percent as did the average workweek at 33.8 hours. Hourly earnings, meanwhile, were up just 0.2 percent versus an expectation for an increase of 0.3 percent.
Despite the solid growth indication from the employment report, the Treasury market moved higher as it benefited from a flight-to-quality trade that followed the downturn in the financial sector. Separately, the dollar lost ground again Friday, which provided a boost to a number of commodities, including gold which traded up 1.9 percent to $815.20 per ounce.
DJ30 +27.23 NASDAQ +15.55 SP500 +1.21 NASDAQ Dec/Adv/Vol 1482/1488/2.46 bln NYSE Dec/Adv/Vol 1720/1516/1.72 bln
3:30 pm : Going into the last half-hour of trading, the market continues to be volatile as the Nasdaq makes it back into the green. The VIX Index, which measures volatility, is up 3.1% today.
Meanwhile, Bloomberg.com reports that the risk of owning the debt of Merrill Lynch (MER 55.85, -6.35) and Citigroup (C 36.98, -1.53) rose to the highest in at least five years on speculation that losses from the mortgage-market collapse will worsen.
Next week, the market will have another barrage of earnings reports to process. Cisco (CSCO 34.42, +0.24) is the headliner in the coming week, although the reports from AIG (AIG 57.91, -1.39), Time Warner (TWX 17.75, -0.25), Walt Disney (DIS 33.56, -0.24), News Corp. (NWS.A 21.05, -0.29 ), Qualcomm (QCOM 41.41, +0.13), General Motors (GM 36.82, -0.46) and Ford (F 8.82, +0.32) will also command added attention.
The economy will remain a hot topic of debate with Fed Chairman Bernanke adding to the debate on Thursday with testimony on the U.S. economic outlook before the Joint Economic Committee. DJ30 -34.51 NASDAQ +7.36 SP500 -5.88 NASDAQ Dec/Adv/Vol 1723/1225/2.04 bln NYSE Dec/Adv/Vol 2032/1190/1.29 bln
3:00 pm : Broad-based selling interest has picked up, pushing the stock market lower. Financial stocks (-3.0%) continue to be out of favor with investors this session. The S&P 500 Retailing Index (-1.3%) also has had a good deal of selling pressure.
Of the top ten laggards currently in the S&P 500, seven are financial stocks. Exxon Mobil (XOM 87.40, -1.29 ) is one of the top ten laggards as investors continue to be disappointed with its third quarter earnings. DJ30 -79.42 NASDAQ -1.11 SP500 -10.61 NASDAQ Dec/Adv/Vol 1577/1361/1.85 bln NYSE Dec/Adv/Vol 1809/1375/1.18 bln
2:30 pm : The stock market has been slowly drifting downward from its intraday highs. Since the last update, there has not been any market moving news.
The DXY Index, which compares the dollar relative to major world currencies, is down 0.44% this session. The weakness in the dollar is supporting the gains in gold, which is up 1.9% to $808.70.
DJ30 -26.10 NASDAQ +10.99 SP500 -4.80 NASDAQ Dec/Adv/Vol 1432/1483/1.70 bln NYSE Dec/Adv/Vol 1722/1461/1.09 bln
2:00 pm : Since the last update, there has not been any concerted buying or selling interest as the major indices waver in a relatively tight range. The Russell 2000 Index, which fell 4.0% yesterday, is outperforming the broader market.
16 of the 30 Dow components are in negative territory. Not surprisingly, financial companies are the main laggards, including JPMorgan (42.77, -1.58), AIG (AIG 57.81, -1.53) and Citigroup (C 37.24, -1.27).
Caterpillar (CAT 74.85, +1.54) and Boeing (BA 97.58, +0.98) are providing leadership. DJ30 -19.75 NASDAQ +10.85 R2K +0.3% SP500 -3.24 NASDAQ Dec/Adv/Vol 1367/1538/1.57 bln NYSE Dec/Adv/Vol 1721/1441/1.00 bln
1:30 pm : The Dow and S&P have retreated back into negative territory after buying interest fades. The stock market, though, is still well off its intraday low.
eBay (EBAY 34.63, -0.32) is trailing the outperforming tech sector (+0.6%) this session. Bear Stearns downgraded eBay to Peer Perform from Outperform saying as 2007 comes closer to an end, investors are starting to focus even more on 2008 guidance. While eBay has implemented (or begun to implement) many positive changes, the firm says that there will still be more investment needed in 2008 and that eBay would sacrifice near term financials to maximize the future for the company.DJ30 -13.66 NASDAQ +14.53 SP500 -2.36 NASDAQ Dec/Adv/Vol 1335/1545/1.47 bln NYSE Dec/Adv/Vol 1578/1557/934 mln
1:00 pm : Since the last update, the Dow and S&P made it back into positive territory, and are now posting small gains. Buying interest has been broad-based, with financial now only down 1.2% after paring the majority of its losses.
Shares of Countrywide (CFC 14.51, +0.08) have rebounded off their intraday lows following positive comments made by Bill Miller of Legg Mason Value Trust in a letter to shareholders. One of the the comments he made regarded the recent price swings in CFC's shares, "The price action on both sides was driven by emotion -- first fear, then relief -- and was hardly the result of a careful analysis of Countrywide's long term business value. That, by the way, we think is in the $40's compared to its current price of about $14-15."DJ30 +21.78 NASDAQ +20.04 SP500 +2.74 NASDAQ Dec/Adv/Vol 1486/1374/1.30 bln NYSE Dec/Adv/Vol 1904/1213/826 mln
12:35 pm : The stock market continues its choppy run this session, as the Nasdaq crosses into positive territory for the fourth time today. The pickup in buying interest has been broad-based, with six of the ten economic sectors now in positive territory.
Crude oil is trading 1.8% higher to $95.18, presumably due to the possibility that demand will remain strong following U.S. employment gains. The stock market is not reflecting this same optimism, as there are continued concerns over further credit write downs saddling the market. DJ30 -36.34 NASDAQ +5.63 SP500 -4.52 NASDAQ Dec/Adv/Vol 1570/1260/1.20 bln NYSE Dec/Adv/Vol 1927/1172/757 mln
12:05 pm : The stock market fell into negative territory after renewed credit concerns overshadowed a solid employment report. Trading has been choppy. Yesterday, the stock market had a dismal day with the Dow dropping 362 points.
The financial sector (-2.8%), is the main drag after it was unable to make a recovery following its 4.6% decline yesterday and the solid employment data. The entirety of the financial sector is in negative territory and the investment banks & brokerages industry is especially weak.
Merrill Lynch (MER 54.91, -7.21) is the main laggard in the sector following a Wall Street Journal article that stated Merrill may have made deals with hedge funds to delay the day of reckoning on losses. Additionally, Merrill was downgraded to Hold from Buy, and had its target to $65 from $80 at Deutsche Bank. The downgrade was due to concerns that new collateral debt obligation write-downs could approach $10 billion given a worse CDO market.
Merrill recently responded, "We have no reason to believe that any such inappropriate transactions occurred. Such transactions would clearly violate Merrill Lynch policy."
This session's decline comes in the face of a solid jobs report. Nonfarm payrolls rose 166,000 in October, up 70,000 from the previous month. This was much stronger than the expected reading of 80,000. The unemployment rate remained at a low 4.7 percent.
Average hourly earnings rose 0.2 percent. The year-over-year increase dipped to 3.8 percent from 4.1 percent. This is good news from an inflation standpoint. It is not as good from a consumer spending standpoint, as a 0.3 percent increase had been expected in wages.
Currently three of the ten economic sectors are in the red. The second worst performing sector is consumer discretionary, which is only down 0.5%. This demonstrates how influential the financial sector is on the broader market due to its heavy weighting. The tech (+0.2%), energy (+0.2%) and utilities (+0.1%) sectors are outperforming on a relative basis.
Oil is up 1.3% to $94.73. DJ30 -67.55 NASDAQ -4.24 SP500 -8.81 NASDAQ Dec/Adv/Vol 1600/1199/1.05 bln NYSE Dec/Adv/Vol 2085/986/633 mln
11:30 am : Renewed selling interest has taken the major indices back near their intraday lows. All ten major economic sectors are in the red.DJ30 -93.08 NASDAQ -12.31 SP500 -7.81
11:00 am : Since the last update, the major indices have been choppy with the Nasdaq hovering around the unchanged mark. Although the financial sector (-2.8%) is still overwhelmingly the main laggard, it has pared about 1.2% of its intraday losses.
Electronic Arts (ERTS 61.25, +2.57) is providing leadership after the company reported earnings of $0.27 per share, $0.07 better than the Reuters Estimates consensus of $0.20.DJ30 -41.70 NASDAQ +3.42 SP500 -6.05 NASDAQ Dec/Adv/Vol 1412/1280/687 mln NYSE Dec/Adv/Vol 1730/1214/383 mln
10:30 am : The stock market continues to trade in the red as lagging financials take the wind out of the strong employment report. The financial sector (-2.6%) is down across the board, but there is a notable pocket of weakness in the investment banks & brokerages (-4.2%) industry.
Shares of Merrill Lynch (MER 57.23, -4.96) are getting trampled following a Wall Street Journal article that stated Merrill may have made deals with hedge funds to delay the day of reckoning on losses. Additionally, Merrill was downgraded to Hold from Buy, and had its target lowered to $65 from $80 at Deutsche Bank. The downgrade was due to concerns that new CDO write-downs could approach $10 billion given a worse CDO market. DJ30 -62.27 NASDAQ -9.04 SP500 -8.77 NASDAQ Dec/Adv/Vol 1552/1016/449 mln NYSE Dec/Adv/Vol 1805/1060/235 mln
10:00 am : The major indices have fallen into negative territory. The financial sector (-1.8%), is fueling the selling activity after it was unable to make a recovery following its 4.6% decline yesterday and the solid employment data.
Seven of the ten economic sectors are in the red. Only the tech (+0.3%), utilities (+0.3%) and energy (+0.3%) sectors are showing gains.
Interest in bonds has picked up as stocks decline.DJ30 -64.30 NASDAQ -11.10 SP500 -8.68
09:40 am : The stock market got off to a strong start today but quickly gave up a portion of its gains following solid October employment data . October nonfarm payrolls rose a much larger than expected 166,000. This is a 1.4 percent annual rate of increase.
The positive opening still has a long way to to offset the overall ugly day yesterday that saw the Dow drop 362 points. A CIBC downgrade of Citigroup (C) and poor earnings from Exxon Mobil (XOM) sparked the sell off.DJ30 +24.71 NASDAQ +12.07 SP500 +2.92
09:15 am : S&P futures vs fair value: +7.7. Nasdaq futures vs fair value: +19.0.
09:00 am : S&P futures vs fair value: +8.2. Nasdaq futures vs fair value: +19.0. Futures continue to point to a positive opening following the solid employment data. Crude oil is up 0.6% to $94.08 a barrel.
08:33 am : S&P futures vs fair value: +9.2. Nasdaq futures vs fair value: +21.3. Futures jump immediately following the employment data. October nonfarm payrolls increased by 166k, which is up from the previous month's reading of 96k. Unemployment came in at 4.7%, hourly earnings increased by 0.2% and the average workweek was 33.8. Economists were expecting the nonfarm payrolls to increase by 80k, a 4.7% unemployment rate, a 0.3% increase in hourly earnings and an average workweek of 33.8.
08:01 am : S&P futures vs fair value: -0.1. Nasdaq futures vs fair value: +3.0. Futures point to an opening very close to the unchanged mark. Investors are currently in a wait-and-see mode ahead of the market moving October employment report, which is slated to be released at 8:30 ET.
http://biz.yahoo.com/mu/update.html
4:25 pm : Market bulls got the news they were waiting for on Friday when the October jobs report turned out to be better than expected. The data fueled some opening gains, but then was quickly relegated to an afterthought amid renewed concerns about the financial sector's prospects.
Once again, Merrill Lynch (MER 57.28, -4.91) was at the epicenter of the concerns as it got rocked by a Wall Street Journal article that suggested the investment bank was working with hedge funds in an attempt to delay taking losses on its mortgage-backed securities. In essence, the article insinuated that Merrill Lynch might be trying to hide the losses from investors, which evoked bad memories about the Enron scandal.
As if the Journal article wasn't enough, Deutsche Securities downgraded Merrill Lynch to Hold from Buy amid its concerns that new write-downs for collateralized debt obligations could approach $10 billion.
Merrill Lynch eventually defended itself against the Journal article, saying it had no reason to believe that any such inappropriate transactions occurred since that would be a clear violation of Merrill Lynch policy.
The defense helped stem some of the bleeding in the financial sector, which was down as much as 3.4 percent at one point, but it didn't do much to aid Merrill's stock. On a related note, there were rumors circulating that Goldman Sachs (GS 229.60, -10.61) might be announcing a large write-down, but Goldman Sachs told CNBC those rumors were not true.
By the end of the session, the financial sector (-1.5%) managed to cut its losses in half. Famed value investor Bill Miller of Legg Mason played a part in that happening as he was quoted as saying some of the greatest gains over the next five years will be in securities people are panicked about today (i.e., financials).
Also, there was a late report from CNBC, citing Dow Jones, that Citigroup (C 37.73, -0.78) was going to be holding an emergency board meeting over the weekend. Details of the meeting were not mentioned, but it was assumed that it might lead to a change in leadership at the troubled bank. That assumption was reflected in Citigroup's stock price, which pared its losses in the final hour.
The rebound in the financials helped the broader market recover from its morning lows, which were established with losses of 121, 21 and 16 points, respectively, for the Dow, Nasdaq and S&P. By the closing bell, though, all three major indices were back in positive territory.
Outside of the financial sector, there were several pockets of strength. The technology sector (+0.9%) was one such area as it refused to relinquish its leadership post thanks to the relative strength of large-cap issues.
The energy sector (+1.1%) was the best-performing area Friday, as it garnered support from a 2.6 percent gain in oil prices to $95.93 per barrel.
The jump in oil prices came in the wake of the jobs report that suggested the U.S. economy is still holding up quite well despite the troubles in the housing and credit markets. That consideration translated into an expectation that demand for energy will remain high.
With respect to the employment report, the government reported that nonfarm payrolls rose 166,000 in October while September payrolls were revised down slightly to 96,000 (from 110,000). The unemployment rate held steady at 4.7 percent as did the average workweek at 33.8 hours. Hourly earnings, meanwhile, were up just 0.2 percent versus an expectation for an increase of 0.3 percent.
Despite the solid growth indication from the employment report, the Treasury market moved higher as it benefited from a flight-to-quality trade that followed the downturn in the financial sector. Separately, the dollar lost ground again Friday, which provided a boost to a number of commodities, including gold which traded up 1.9 percent to $815.20 per ounce.
DJ30 +27.23 NASDAQ +15.55 SP500 +1.21 NASDAQ Dec/Adv/Vol 1482/1488/2.46 bln NYSE Dec/Adv/Vol 1720/1516/1.72 bln
3:30 pm : Going into the last half-hour of trading, the market continues to be volatile as the Nasdaq makes it back into the green. The VIX Index, which measures volatility, is up 3.1% today.
Meanwhile, Bloomberg.com reports that the risk of owning the debt of Merrill Lynch (MER 55.85, -6.35) and Citigroup (C 36.98, -1.53) rose to the highest in at least five years on speculation that losses from the mortgage-market collapse will worsen.
Next week, the market will have another barrage of earnings reports to process. Cisco (CSCO 34.42, +0.24) is the headliner in the coming week, although the reports from AIG (AIG 57.91, -1.39), Time Warner (TWX 17.75, -0.25), Walt Disney (DIS 33.56, -0.24), News Corp. (NWS.A 21.05, -0.29 ), Qualcomm (QCOM 41.41, +0.13), General Motors (GM 36.82, -0.46) and Ford (F 8.82, +0.32) will also command added attention.
The economy will remain a hot topic of debate with Fed Chairman Bernanke adding to the debate on Thursday with testimony on the U.S. economic outlook before the Joint Economic Committee. DJ30 -34.51 NASDAQ +7.36 SP500 -5.88 NASDAQ Dec/Adv/Vol 1723/1225/2.04 bln NYSE Dec/Adv/Vol 2032/1190/1.29 bln
3:00 pm : Broad-based selling interest has picked up, pushing the stock market lower. Financial stocks (-3.0%) continue to be out of favor with investors this session. The S&P 500 Retailing Index (-1.3%) also has had a good deal of selling pressure.
Of the top ten laggards currently in the S&P 500, seven are financial stocks. Exxon Mobil (XOM 87.40, -1.29 ) is one of the top ten laggards as investors continue to be disappointed with its third quarter earnings. DJ30 -79.42 NASDAQ -1.11 SP500 -10.61 NASDAQ Dec/Adv/Vol 1577/1361/1.85 bln NYSE Dec/Adv/Vol 1809/1375/1.18 bln
2:30 pm : The stock market has been slowly drifting downward from its intraday highs. Since the last update, there has not been any market moving news.
The DXY Index, which compares the dollar relative to major world currencies, is down 0.44% this session. The weakness in the dollar is supporting the gains in gold, which is up 1.9% to $808.70.
DJ30 -26.10 NASDAQ +10.99 SP500 -4.80 NASDAQ Dec/Adv/Vol 1432/1483/1.70 bln NYSE Dec/Adv/Vol 1722/1461/1.09 bln
2:00 pm : Since the last update, there has not been any concerted buying or selling interest as the major indices waver in a relatively tight range. The Russell 2000 Index, which fell 4.0% yesterday, is outperforming the broader market.
16 of the 30 Dow components are in negative territory. Not surprisingly, financial companies are the main laggards, including JPMorgan (42.77, -1.58), AIG (AIG 57.81, -1.53) and Citigroup (C 37.24, -1.27).
Caterpillar (CAT 74.85, +1.54) and Boeing (BA 97.58, +0.98) are providing leadership. DJ30 -19.75 NASDAQ +10.85 R2K +0.3% SP500 -3.24 NASDAQ Dec/Adv/Vol 1367/1538/1.57 bln NYSE Dec/Adv/Vol 1721/1441/1.00 bln
1:30 pm : The Dow and S&P have retreated back into negative territory after buying interest fades. The stock market, though, is still well off its intraday low.
eBay (EBAY 34.63, -0.32) is trailing the outperforming tech sector (+0.6%) this session. Bear Stearns downgraded eBay to Peer Perform from Outperform saying as 2007 comes closer to an end, investors are starting to focus even more on 2008 guidance. While eBay has implemented (or begun to implement) many positive changes, the firm says that there will still be more investment needed in 2008 and that eBay would sacrifice near term financials to maximize the future for the company.DJ30 -13.66 NASDAQ +14.53 SP500 -2.36 NASDAQ Dec/Adv/Vol 1335/1545/1.47 bln NYSE Dec/Adv/Vol 1578/1557/934 mln
1:00 pm : Since the last update, the Dow and S&P made it back into positive territory, and are now posting small gains. Buying interest has been broad-based, with financial now only down 1.2% after paring the majority of its losses.
Shares of Countrywide (CFC 14.51, +0.08) have rebounded off their intraday lows following positive comments made by Bill Miller of Legg Mason Value Trust in a letter to shareholders. One of the the comments he made regarded the recent price swings in CFC's shares, "The price action on both sides was driven by emotion -- first fear, then relief -- and was hardly the result of a careful analysis of Countrywide's long term business value. That, by the way, we think is in the $40's compared to its current price of about $14-15."DJ30 +21.78 NASDAQ +20.04 SP500 +2.74 NASDAQ Dec/Adv/Vol 1486/1374/1.30 bln NYSE Dec/Adv/Vol 1904/1213/826 mln
12:35 pm : The stock market continues its choppy run this session, as the Nasdaq crosses into positive territory for the fourth time today. The pickup in buying interest has been broad-based, with six of the ten economic sectors now in positive territory.
Crude oil is trading 1.8% higher to $95.18, presumably due to the possibility that demand will remain strong following U.S. employment gains. The stock market is not reflecting this same optimism, as there are continued concerns over further credit write downs saddling the market. DJ30 -36.34 NASDAQ +5.63 SP500 -4.52 NASDAQ Dec/Adv/Vol 1570/1260/1.20 bln NYSE Dec/Adv/Vol 1927/1172/757 mln
12:05 pm : The stock market fell into negative territory after renewed credit concerns overshadowed a solid employment report. Trading has been choppy. Yesterday, the stock market had a dismal day with the Dow dropping 362 points.
The financial sector (-2.8%), is the main drag after it was unable to make a recovery following its 4.6% decline yesterday and the solid employment data. The entirety of the financial sector is in negative territory and the investment banks & brokerages industry is especially weak.
Merrill Lynch (MER 54.91, -7.21) is the main laggard in the sector following a Wall Street Journal article that stated Merrill may have made deals with hedge funds to delay the day of reckoning on losses. Additionally, Merrill was downgraded to Hold from Buy, and had its target to $65 from $80 at Deutsche Bank. The downgrade was due to concerns that new collateral debt obligation write-downs could approach $10 billion given a worse CDO market.
Merrill recently responded, "We have no reason to believe that any such inappropriate transactions occurred. Such transactions would clearly violate Merrill Lynch policy."
This session's decline comes in the face of a solid jobs report. Nonfarm payrolls rose 166,000 in October, up 70,000 from the previous month. This was much stronger than the expected reading of 80,000. The unemployment rate remained at a low 4.7 percent.
Average hourly earnings rose 0.2 percent. The year-over-year increase dipped to 3.8 percent from 4.1 percent. This is good news from an inflation standpoint. It is not as good from a consumer spending standpoint, as a 0.3 percent increase had been expected in wages.
Currently three of the ten economic sectors are in the red. The second worst performing sector is consumer discretionary, which is only down 0.5%. This demonstrates how influential the financial sector is on the broader market due to its heavy weighting. The tech (+0.2%), energy (+0.2%) and utilities (+0.1%) sectors are outperforming on a relative basis.
Oil is up 1.3% to $94.73. DJ30 -67.55 NASDAQ -4.24 SP500 -8.81 NASDAQ Dec/Adv/Vol 1600/1199/1.05 bln NYSE Dec/Adv/Vol 2085/986/633 mln
11:30 am : Renewed selling interest has taken the major indices back near their intraday lows. All ten major economic sectors are in the red.DJ30 -93.08 NASDAQ -12.31 SP500 -7.81
11:00 am : Since the last update, the major indices have been choppy with the Nasdaq hovering around the unchanged mark. Although the financial sector (-2.8%) is still overwhelmingly the main laggard, it has pared about 1.2% of its intraday losses.
Electronic Arts (ERTS 61.25, +2.57) is providing leadership after the company reported earnings of $0.27 per share, $0.07 better than the Reuters Estimates consensus of $0.20.DJ30 -41.70 NASDAQ +3.42 SP500 -6.05 NASDAQ Dec/Adv/Vol 1412/1280/687 mln NYSE Dec/Adv/Vol 1730/1214/383 mln
10:30 am : The stock market continues to trade in the red as lagging financials take the wind out of the strong employment report. The financial sector (-2.6%) is down across the board, but there is a notable pocket of weakness in the investment banks & brokerages (-4.2%) industry.
Shares of Merrill Lynch (MER 57.23, -4.96) are getting trampled following a Wall Street Journal article that stated Merrill may have made deals with hedge funds to delay the day of reckoning on losses. Additionally, Merrill was downgraded to Hold from Buy, and had its target lowered to $65 from $80 at Deutsche Bank. The downgrade was due to concerns that new CDO write-downs could approach $10 billion given a worse CDO market. DJ30 -62.27 NASDAQ -9.04 SP500 -8.77 NASDAQ Dec/Adv/Vol 1552/1016/449 mln NYSE Dec/Adv/Vol 1805/1060/235 mln
10:00 am : The major indices have fallen into negative territory. The financial sector (-1.8%), is fueling the selling activity after it was unable to make a recovery following its 4.6% decline yesterday and the solid employment data.
Seven of the ten economic sectors are in the red. Only the tech (+0.3%), utilities (+0.3%) and energy (+0.3%) sectors are showing gains.
Interest in bonds has picked up as stocks decline.DJ30 -64.30 NASDAQ -11.10 SP500 -8.68
09:40 am : The stock market got off to a strong start today but quickly gave up a portion of its gains following solid October employment data . October nonfarm payrolls rose a much larger than expected 166,000. This is a 1.4 percent annual rate of increase.
The positive opening still has a long way to to offset the overall ugly day yesterday that saw the Dow drop 362 points. A CIBC downgrade of Citigroup (C) and poor earnings from Exxon Mobil (XOM) sparked the sell off.DJ30 +24.71 NASDAQ +12.07 SP500 +2.92
09:15 am : S&P futures vs fair value: +7.7. Nasdaq futures vs fair value: +19.0.
09:00 am : S&P futures vs fair value: +8.2. Nasdaq futures vs fair value: +19.0. Futures continue to point to a positive opening following the solid employment data. Crude oil is up 0.6% to $94.08 a barrel.
08:33 am : S&P futures vs fair value: +9.2. Nasdaq futures vs fair value: +21.3. Futures jump immediately following the employment data. October nonfarm payrolls increased by 166k, which is up from the previous month's reading of 96k. Unemployment came in at 4.7%, hourly earnings increased by 0.2% and the average workweek was 33.8. Economists were expecting the nonfarm payrolls to increase by 80k, a 4.7% unemployment rate, a 0.3% increase in hourly earnings and an average workweek of 33.8.
08:01 am : S&P futures vs fair value: -0.1. Nasdaq futures vs fair value: +3.0. Futures point to an opening very close to the unchanged mark. Investors are currently in a wait-and-see mode ahead of the market moving October employment report, which is slated to be released at 8:30 ET.
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