AI
Monday, November 12, 2007 6:50:20 PM
Market Update 071112
http://biz.yahoo.com/mu/update.html
4:25 pm : With the stock market declining nearly 4.0% last week, one would have expected to see a better showing on Monday from the bulls. They did flex some muscle in early trading as bargain hunting efforts helped lift the major indices. At the end of the day, though, there were no gains to be had as the market experienced another round of broad-based selling activity in the final half-hour that left them at their lows for the session.
Once again, there were headlines out of the financial sector involving the need to write-down the value of mortgage-backed securities.
E*Trade Financial (ETFC 3.55, -5.04) was the center of attention on this front as its stock plummeted 59% following the company's announcement that it would be taking further write-downs in the fourth quarter and that investors should no longer rely on the company's prior 2007 earnings outlook.
The selling pressure on E*Trade's stock was exacerbated by a Citigroup downgrade to Sell from Hold and an observation from the Citigroup analyst that an E*Trade bankruptcy filing was not out of the question. E*Trade dismissed that talk as "irresponsible," but that did little to help its stock.
Strikingly, neither E*Trade's news nor Countrywide's (CFC 13.19, -0.64) warning that it would have difficulty accessing the public corporate debt market if its debt rating was cut to junk caused the financial sector to come unglued. In fact, the financial sector (+0.2%) was one of the better-performing sectors in Monday's trading as it benefited from bottom-fishing interest in a host of names including Goldman Sachs (GS 214.71, +3.38) and Washington Mutual (WM 20.77, +0.26).
Many retail stocks also moved up on bottom-fishing interest following a weekend article in Barron's that highlighted their oversold status.
The relative strength in those two beaten-down areas, though, was more than offset by continued weakness in the technology sector (-1.5%) and material weakness in the energy (-3.8%) and basic materials (-3.7%) sectors.
Weakness in technology followed a Merrill Lynch downgrade of Microsoft (MSFT 33.38, -0.35) to Neutral from Buy, but it was primarily a carryover move from last week as the sector, which rallied 21% from its Aug. 16 low to its Oct. 31 high, was still viewed as ripe for profit taking in the face of burgeoning concerns about business spending and an unwinding of the yen carry-trade that helped finance some of the big moves in the tech sector.
Similarly, the energy and basic materials sectors, also big gainers of late, got hit on the unwinding concerns that were reflected in the yen's strength against the dollar today. The dollar index, though, which averages exchange rates between the dollar and six major world currencies, gained 0.7%.
The greenback's gain fueled the selling interest in the commodity space that saw oil prices slip 1.8% to $94.62 per barrel and gold prices drop 3.2% to $814.70 per troy ounce.
There wasn't any action in the Treasury market Monday as it was closed in observance of Veterans Day. The Treasury market will open for trading again on Tuesday.
Separately, IBM (IBM 101.45, +1.20) bucked the selling trend as investors cheered the news that it will be acquiring Cognos (COGN 57.15, +4.17) for approximately $5 billion, or $58 per share, in cash.
(Disclosure: Briefing.com has a business relationship with E*Trade Financial)DJ30 -55.19 NASDAQ -43.81 SP500 -14.52 NASDAQ Dec/Adv/Vol 1773/1250/2.82 bln NYSE Dec/Adv/Vol 2183/1071/1.71 bln
3:30 pm :
The Nasdaq hits a fresh intraday low following an increase in selling pressure. Meanwhile, the S&P 500 penetrates its afternoon low, but remains slightly above its worst levels of the session as we head into the final half hour of trading. A decline in the financial sector (+1.0%) is largely to blame for the pickup in selling interest.
Tomorrow, Wal-Mart (WMT 44.59, +1.59) and Home Depot (HD 28.67, +0.62) are confirmed to report their earnings before the opening. The September pending home sales report will be released at 10:00 ET. Economists expect a drop of 2.0%.DJ30 +17.07 NASDAQ -29.31 SP500 -6.23 NASDAQ Dec/Adv/Vol 1514/1491/2.20 bln NYSE Dec/Adv/Vol 1802/1450/1.24 bln
3:00 pm : Not much has changed in the stock market as the major indices continue to trade in a choppy and range-bound manner. At the NYSE, declining issues outpace advancers 17-to-15; At the Nasdaq, advancers and decliners are near even.
Shares of Blackstone Group (BX 22.55, -1.73 ) are down after the New York-based private equity giant reported lower third-quarter results, as charges related to its initial public offering weighed on results.DJ30 +74.06 NASDAQ -10.06 SP500 +3.12 NASDAQ Dec/Adv/Vol 1489/1504/2.00 bln NYSE Dec/Adv/Vol 1738/1494/1.12 bln
2:35 pm : Choppy trading continues as the Nasdaq Composite hits a fresh intraday low and then bounces off its low. A number of the recent high-flying tech names are being clipped this session, including Apple (AAPL 156.37, -9.00), Research In Motion (RIMM 103.28, -9.94) and Google (GOOG 648.12, -15.85).
The S&P 500 is back in the green, as it is now posting a slight gain.
Meanwhile, the small-cap Russell 2000 Index, which is in the red year-to-date, is outperforming relative to the broader market.DJ30 +49.75 NASDAQ -14.68 R2K +0.4% SP500 +1.71 NASDAQ Dec/Adv/Vol 1541/1445/1.78 bln NYSE Dec/Adv/Vol 1760/1462/996 mln
2:00 pm : After spending the majority of the day in the green, the S&P 500 has slid into negative territory following an increase in broad-based selling pressure. Six of the ten economic sectors are now in the red, including the heavily weighted tech sector (-0.7%).
The news keeps getting worse for E*Trade (ETFC 3.56, -5.03), as Friedman Billings downgrades the company to Market Perform from Outperform. Shares have already declined more than 50% following news of write-downs in the value of mortgage backed assets.
Separately, Reuters reports that the Energy Information Administration said oil will stay 'well over' $80 per barrel without more OPEC oil supply from the cartel's December meeting.DJ30 +26.18 NASDAQ -16.05 SP500 -0.75 NASDAQ Dec/Adv/Vol 1448/1512/1.59 bln NYSE Dec/Adv/Vol 1626/1588/889 mln
1:30 pm : The market has had a slight boost, as the Dow continues to outperform. 21 of 30 Dow components are in the green.
IBM (IBM 103.38, +2.73) and Citigroup (C 34.83, +1.73) are providing leadership in the Dow. IBM is up following the announcement of the Cognos buyout, and Citigroup is rebounding along with the financial sector (+2.4%).
Exxon Mobil (XOM 85.73, -1.12) and aluminum maker Alcoa (AA 36.31, -0.78) are the main laggards as they follow commodities lower.DJ30 +79.12 NASDAQ -0.16 SP500 +6.13 NASDAQ Dec/Adv/Vol 1345/1617/1.45 bln NYSE Dec/Adv/Vol 1566/1617/825 mln
1:00 pm : After reaching a fresh intraday high, the stock market slides. The Nasdaq is back in the red.
Punk Ziegel upgraded Goldman Sachs (GS 219.72, +8.39) to Market Perform from Sell based on the firm's growing confidence that the company's systems may protect it from the worst of the excesses now in the marketplace.
Meanwhile, Bloomberg.com reports that Goldman holds a bigger share of level 3 assets than Citibank (C 34.88, +1.78) and Merrill Lynch (MER 55.59, +2.32). A level 3 asset trades so infrequently that there is no price for it, and therefore the asset holder must estimate its value.
Goldman has outperformed its peers on Wall Street during the credit market turmoil, posting a 79% rise in third quarter profit. DJ30 +72.67 NASDAQ -1.15 SP500 +5.24 NASDAQ Dec/Adv/Vol 1256/1685/1.31 mln NYSE Dec/Adv/Vol 1497/1692/743 mln
12:30 pm : Strength in the regional banks (+3.7%) and diversified banks (+3.8%) industry groups is helping to boost the financial sector (+2.5%). The only group in the red is thrifts & mortgages (-1.5%) after Fannie Mae (FNM 49.00, -0.80) and Freddie Mac (FRE 41.70, -2.12) were downgraded at Lehman Brothers.
Meanwhile, the stock market is back on the rise.DJ30 +105.19 NASDAQ +8.33 SP500 +9.62 NASDAQ Dec/Adv/Vol 1323/1601/1.18 bln NYSE Dec/Adv/Vol 1597/1577/676 mln
12:00 pm : The stock market opened with modest losses, but quickly recovered to the unchanged mark. The major indices have since traded in choppy fashion, although their ranges have been somewhat limited. Currently, the indices are trading mixed with the Nasdaq in the red.
As was the case last week, tech and financial companies are topping headlines.
Shares of E*Trade (ETFC 3.99, -4.60) plummeted after the company rendered its prior 2007 earnings guidance meaningless. Late on Friday, the company announced it had observed continued declines in the fair value of its $3.0 billion asset-backed securities portfolio. The company stated that it expected the declines in fair value to result in further securities write-downs in the fourth quarter. In response to the announcement, Citigroup downgraded E*Trade to Sell from Hold and suggested a bankruptcy filing is not out of the question.
On the tech front, IBM (IBM 102.62, +2.37) is now on the acquisition trail, having announced a $5 billion all-cash offer this morning to acquire Canadian software company Cognos (COGN 57.37, +4.38). The offer translates to $58 per share, which is roughly a 10% premium to Cognos's closing price on Friday. The IBM-Cognos deal is not altogether a surprise considering that the companies have had a partnership for more than 15 years.
The financial sector (+2.6%) is providing leadership, as the E*Trade news has yet to act as a major drag. The materials (-1.3%) and energy (-1.8%) sectors are the main laggards in response to a decline in commodity prices.
The dollar index (DXY) is up 0.8%, which is putting pressure on commodities. The CRB Index, which tracks a basket of commodities, is down 1.6%. Crude oil has eased 2.2% to $94.16. Gold is down 3.3% to $804.18.
The bond market is closed in observance of Veterans Day. There are no economic reports scheduled.DJ30 +56.42 NASDAQ -1.81 SP500 +3.45 NASDAQ Dec/Adv/Vol 1277/1586/1.02 bln NYSE Dec/Adv/Vol 1485/1641/564 mln
11:30 am : The major indices extend their gains. For now, buying interest has faded, but there has not been any concerted selling effort either, as the stock market trades slightly below its best level of the day. Overall, the major indices intraday ranges have been relatively tight thus far.
The S&P 500 Retailing Index, which was a laggard last week, is up 2.8% this session. The index is down 14% year-to-date.DJ30 +89.26 NASDAQ +11.44 SP500 +9.31 NASDAQ Dec/Adv/Vol 1172/1676/881 mln NYSE Dec/Adv/Vol 1513/1576/472 mln
11:00 am : Since the last update, the major indices hit fresh intraday highs following a broad-based pickup in buying interest. The influential financial sector (+1.6%) is providing leadership.
The energy sector (-2.6%) is preventing further gains as it continues to lag in response to the drop in crude oil prices. Conversely, the Amex Airline Index is up nearly 3% due to the slide in crude. Similarly, the Dow Jones Transportation Average is outperforming the broader market.DJ30 +66.07 DJTA +0.9% NASDAQ +4.44 SP500 4.70 NASDAQ Dec/Adv/Vol 1340/1443/660 mln NYSE Dec/Adv/Vol 1630/1414/349 mln
10:30 am : The major indices continue to trade near the unchanged mark. The Nasdaq Composite is trailing the other indices.
Merrill Lynch's downgrade of Microsoft (MSFT 33.49, -0.24) and Oracle (ORCL 19.17, -0.19, ) to Neutral from Buy is weighing on the Nasdaq. Large-cap tech stocks had steep declines last week following disappointing guidance from Cisco (CSCO 28.99, +0.41) and Qualcomm (QCOM 38.43, +0.33).
Reuters reports that E*TRADE (ETFC 4.15, -4.44) tells customers to expect "news in the market" to get worse before it gets better.DJ30 +29.35 NASDAQ -9.93 SP500 +0.54 NASDAQ Dec/Adv/Vol 1377/1299/456 mln NYSE Dec/Adv/Vol 1551/1373/210 mln
10:00 am : The major indices have been hovering around the unchanged mark for the last half-hour. Currently, the market is mixed with the Nasdaq in the red.
Six of the ten economic sectors are in the green in the early-going. The financial sector (+1.4%), which had significant declines last week on credit concerns, is providing leadership.
The weakness in commodities is causing the materials (-1.0%) and energy (-2.5%) sectors to lag the broader market.DJ30 +34.06 NASDAQ -2.84 SP500 +0.88
09:45 am : The stock market opens modestly lower, and then quickly recovers to positive territory.
Topping headlines this morning is the announcement that IBM (IBM) is going to acquire Cognos (COGN) for $58 per share in cash, or approximately $5 billion. Meanwhile, E*Trade Financial (ETFC) is the latest in the growing list of companies that is warning of further credit losses and has said it no longer expects to achieve its prior FY07 earnings guidance.
Commodities are heading lower as the dollar strengthens. Crude is down 2.6% to $93.77. Gold is down 3.0% to $809.DJ30 +49.10 NASDAQ +3.77 SP500 +1.95
09:15 am : S&P futures vs fair value: -2.2. Nasdaq futures vs fair value: -5.0.
09:01 am : S&P futures vs fair value: -1.2. Nasdaq futures vs fair value: -3.8. Futures are gaining some ground, but continue to point to a lower open. The bond market is closed today in observance of Veterans Day.
08:30 am : S&P futures vs fair value: -3.3. Nasdaq futures vs fair value: -8.5. A lower open is still expected. September pending home sales will be released at 10:00 ET. Crude oil has eased 1.4% to $94.93 per barrel.
08:01 am : S&P futures vs fair value: -1.7. Nasdaq futures vs fair value: -4.0. Futures suggest a lower open. IBM (IBM) is going to acquire Cognos (COGN), in an all-cash transaction at a price of approximately $5 bln. Meanwhile, E*Trade Financial (ETFC) is the latest in the growing list of companies that is warning of further credit losses and has said it no longer expects to achieve its prior FY07 earnings guidance.(Disclosure: Briefing.com has a business relationship with E*Trade)
06:26 am : S&P futures vs fair value: -4.9. Nasdaq futures vs fair value: -4.5.
06:25 am : FTSE...6321.30...+16.40...+0.3%. DAX...7777.56...-34.84...-0.5%.
06:25 am : Nikkei...15197.09...-386.33...-2.5%. Hang Seng...27665.73...-1117.68...-3.9%.
http://biz.yahoo.com/mu/update.html
4:25 pm : With the stock market declining nearly 4.0% last week, one would have expected to see a better showing on Monday from the bulls. They did flex some muscle in early trading as bargain hunting efforts helped lift the major indices. At the end of the day, though, there were no gains to be had as the market experienced another round of broad-based selling activity in the final half-hour that left them at their lows for the session.
Once again, there were headlines out of the financial sector involving the need to write-down the value of mortgage-backed securities.
E*Trade Financial (ETFC 3.55, -5.04) was the center of attention on this front as its stock plummeted 59% following the company's announcement that it would be taking further write-downs in the fourth quarter and that investors should no longer rely on the company's prior 2007 earnings outlook.
The selling pressure on E*Trade's stock was exacerbated by a Citigroup downgrade to Sell from Hold and an observation from the Citigroup analyst that an E*Trade bankruptcy filing was not out of the question. E*Trade dismissed that talk as "irresponsible," but that did little to help its stock.
Strikingly, neither E*Trade's news nor Countrywide's (CFC 13.19, -0.64) warning that it would have difficulty accessing the public corporate debt market if its debt rating was cut to junk caused the financial sector to come unglued. In fact, the financial sector (+0.2%) was one of the better-performing sectors in Monday's trading as it benefited from bottom-fishing interest in a host of names including Goldman Sachs (GS 214.71, +3.38) and Washington Mutual (WM 20.77, +0.26).
Many retail stocks also moved up on bottom-fishing interest following a weekend article in Barron's that highlighted their oversold status.
The relative strength in those two beaten-down areas, though, was more than offset by continued weakness in the technology sector (-1.5%) and material weakness in the energy (-3.8%) and basic materials (-3.7%) sectors.
Weakness in technology followed a Merrill Lynch downgrade of Microsoft (MSFT 33.38, -0.35) to Neutral from Buy, but it was primarily a carryover move from last week as the sector, which rallied 21% from its Aug. 16 low to its Oct. 31 high, was still viewed as ripe for profit taking in the face of burgeoning concerns about business spending and an unwinding of the yen carry-trade that helped finance some of the big moves in the tech sector.
Similarly, the energy and basic materials sectors, also big gainers of late, got hit on the unwinding concerns that were reflected in the yen's strength against the dollar today. The dollar index, though, which averages exchange rates between the dollar and six major world currencies, gained 0.7%.
The greenback's gain fueled the selling interest in the commodity space that saw oil prices slip 1.8% to $94.62 per barrel and gold prices drop 3.2% to $814.70 per troy ounce.
There wasn't any action in the Treasury market Monday as it was closed in observance of Veterans Day. The Treasury market will open for trading again on Tuesday.
Separately, IBM (IBM 101.45, +1.20) bucked the selling trend as investors cheered the news that it will be acquiring Cognos (COGN 57.15, +4.17) for approximately $5 billion, or $58 per share, in cash.
(Disclosure: Briefing.com has a business relationship with E*Trade Financial)DJ30 -55.19 NASDAQ -43.81 SP500 -14.52 NASDAQ Dec/Adv/Vol 1773/1250/2.82 bln NYSE Dec/Adv/Vol 2183/1071/1.71 bln
3:30 pm :
The Nasdaq hits a fresh intraday low following an increase in selling pressure. Meanwhile, the S&P 500 penetrates its afternoon low, but remains slightly above its worst levels of the session as we head into the final half hour of trading. A decline in the financial sector (+1.0%) is largely to blame for the pickup in selling interest.
Tomorrow, Wal-Mart (WMT 44.59, +1.59) and Home Depot (HD 28.67, +0.62) are confirmed to report their earnings before the opening. The September pending home sales report will be released at 10:00 ET. Economists expect a drop of 2.0%.DJ30 +17.07 NASDAQ -29.31 SP500 -6.23 NASDAQ Dec/Adv/Vol 1514/1491/2.20 bln NYSE Dec/Adv/Vol 1802/1450/1.24 bln
3:00 pm : Not much has changed in the stock market as the major indices continue to trade in a choppy and range-bound manner. At the NYSE, declining issues outpace advancers 17-to-15; At the Nasdaq, advancers and decliners are near even.
Shares of Blackstone Group (BX 22.55, -1.73 ) are down after the New York-based private equity giant reported lower third-quarter results, as charges related to its initial public offering weighed on results.DJ30 +74.06 NASDAQ -10.06 SP500 +3.12 NASDAQ Dec/Adv/Vol 1489/1504/2.00 bln NYSE Dec/Adv/Vol 1738/1494/1.12 bln
2:35 pm : Choppy trading continues as the Nasdaq Composite hits a fresh intraday low and then bounces off its low. A number of the recent high-flying tech names are being clipped this session, including Apple (AAPL 156.37, -9.00), Research In Motion (RIMM 103.28, -9.94) and Google (GOOG 648.12, -15.85).
The S&P 500 is back in the green, as it is now posting a slight gain.
Meanwhile, the small-cap Russell 2000 Index, which is in the red year-to-date, is outperforming relative to the broader market.DJ30 +49.75 NASDAQ -14.68 R2K +0.4% SP500 +1.71 NASDAQ Dec/Adv/Vol 1541/1445/1.78 bln NYSE Dec/Adv/Vol 1760/1462/996 mln
2:00 pm : After spending the majority of the day in the green, the S&P 500 has slid into negative territory following an increase in broad-based selling pressure. Six of the ten economic sectors are now in the red, including the heavily weighted tech sector (-0.7%).
The news keeps getting worse for E*Trade (ETFC 3.56, -5.03), as Friedman Billings downgrades the company to Market Perform from Outperform. Shares have already declined more than 50% following news of write-downs in the value of mortgage backed assets.
Separately, Reuters reports that the Energy Information Administration said oil will stay 'well over' $80 per barrel without more OPEC oil supply from the cartel's December meeting.DJ30 +26.18 NASDAQ -16.05 SP500 -0.75 NASDAQ Dec/Adv/Vol 1448/1512/1.59 bln NYSE Dec/Adv/Vol 1626/1588/889 mln
1:30 pm : The market has had a slight boost, as the Dow continues to outperform. 21 of 30 Dow components are in the green.
IBM (IBM 103.38, +2.73) and Citigroup (C 34.83, +1.73) are providing leadership in the Dow. IBM is up following the announcement of the Cognos buyout, and Citigroup is rebounding along with the financial sector (+2.4%).
Exxon Mobil (XOM 85.73, -1.12) and aluminum maker Alcoa (AA 36.31, -0.78) are the main laggards as they follow commodities lower.DJ30 +79.12 NASDAQ -0.16 SP500 +6.13 NASDAQ Dec/Adv/Vol 1345/1617/1.45 bln NYSE Dec/Adv/Vol 1566/1617/825 mln
1:00 pm : After reaching a fresh intraday high, the stock market slides. The Nasdaq is back in the red.
Punk Ziegel upgraded Goldman Sachs (GS 219.72, +8.39) to Market Perform from Sell based on the firm's growing confidence that the company's systems may protect it from the worst of the excesses now in the marketplace.
Meanwhile, Bloomberg.com reports that Goldman holds a bigger share of level 3 assets than Citibank (C 34.88, +1.78) and Merrill Lynch (MER 55.59, +2.32). A level 3 asset trades so infrequently that there is no price for it, and therefore the asset holder must estimate its value.
Goldman has outperformed its peers on Wall Street during the credit market turmoil, posting a 79% rise in third quarter profit. DJ30 +72.67 NASDAQ -1.15 SP500 +5.24 NASDAQ Dec/Adv/Vol 1256/1685/1.31 mln NYSE Dec/Adv/Vol 1497/1692/743 mln
12:30 pm : Strength in the regional banks (+3.7%) and diversified banks (+3.8%) industry groups is helping to boost the financial sector (+2.5%). The only group in the red is thrifts & mortgages (-1.5%) after Fannie Mae (FNM 49.00, -0.80) and Freddie Mac (FRE 41.70, -2.12) were downgraded at Lehman Brothers.
Meanwhile, the stock market is back on the rise.DJ30 +105.19 NASDAQ +8.33 SP500 +9.62 NASDAQ Dec/Adv/Vol 1323/1601/1.18 bln NYSE Dec/Adv/Vol 1597/1577/676 mln
12:00 pm : The stock market opened with modest losses, but quickly recovered to the unchanged mark. The major indices have since traded in choppy fashion, although their ranges have been somewhat limited. Currently, the indices are trading mixed with the Nasdaq in the red.
As was the case last week, tech and financial companies are topping headlines.
Shares of E*Trade (ETFC 3.99, -4.60) plummeted after the company rendered its prior 2007 earnings guidance meaningless. Late on Friday, the company announced it had observed continued declines in the fair value of its $3.0 billion asset-backed securities portfolio. The company stated that it expected the declines in fair value to result in further securities write-downs in the fourth quarter. In response to the announcement, Citigroup downgraded E*Trade to Sell from Hold and suggested a bankruptcy filing is not out of the question.
On the tech front, IBM (IBM 102.62, +2.37) is now on the acquisition trail, having announced a $5 billion all-cash offer this morning to acquire Canadian software company Cognos (COGN 57.37, +4.38). The offer translates to $58 per share, which is roughly a 10% premium to Cognos's closing price on Friday. The IBM-Cognos deal is not altogether a surprise considering that the companies have had a partnership for more than 15 years.
The financial sector (+2.6%) is providing leadership, as the E*Trade news has yet to act as a major drag. The materials (-1.3%) and energy (-1.8%) sectors are the main laggards in response to a decline in commodity prices.
The dollar index (DXY) is up 0.8%, which is putting pressure on commodities. The CRB Index, which tracks a basket of commodities, is down 1.6%. Crude oil has eased 2.2% to $94.16. Gold is down 3.3% to $804.18.
The bond market is closed in observance of Veterans Day. There are no economic reports scheduled.DJ30 +56.42 NASDAQ -1.81 SP500 +3.45 NASDAQ Dec/Adv/Vol 1277/1586/1.02 bln NYSE Dec/Adv/Vol 1485/1641/564 mln
11:30 am : The major indices extend their gains. For now, buying interest has faded, but there has not been any concerted selling effort either, as the stock market trades slightly below its best level of the day. Overall, the major indices intraday ranges have been relatively tight thus far.
The S&P 500 Retailing Index, which was a laggard last week, is up 2.8% this session. The index is down 14% year-to-date.DJ30 +89.26 NASDAQ +11.44 SP500 +9.31 NASDAQ Dec/Adv/Vol 1172/1676/881 mln NYSE Dec/Adv/Vol 1513/1576/472 mln
11:00 am : Since the last update, the major indices hit fresh intraday highs following a broad-based pickup in buying interest. The influential financial sector (+1.6%) is providing leadership.
The energy sector (-2.6%) is preventing further gains as it continues to lag in response to the drop in crude oil prices. Conversely, the Amex Airline Index is up nearly 3% due to the slide in crude. Similarly, the Dow Jones Transportation Average is outperforming the broader market.DJ30 +66.07 DJTA +0.9% NASDAQ +4.44 SP500 4.70 NASDAQ Dec/Adv/Vol 1340/1443/660 mln NYSE Dec/Adv/Vol 1630/1414/349 mln
10:30 am : The major indices continue to trade near the unchanged mark. The Nasdaq Composite is trailing the other indices.
Merrill Lynch's downgrade of Microsoft (MSFT 33.49, -0.24) and Oracle (ORCL 19.17, -0.19, ) to Neutral from Buy is weighing on the Nasdaq. Large-cap tech stocks had steep declines last week following disappointing guidance from Cisco (CSCO 28.99, +0.41) and Qualcomm (QCOM 38.43, +0.33).
Reuters reports that E*TRADE (ETFC 4.15, -4.44) tells customers to expect "news in the market" to get worse before it gets better.DJ30 +29.35 NASDAQ -9.93 SP500 +0.54 NASDAQ Dec/Adv/Vol 1377/1299/456 mln NYSE Dec/Adv/Vol 1551/1373/210 mln
10:00 am : The major indices have been hovering around the unchanged mark for the last half-hour. Currently, the market is mixed with the Nasdaq in the red.
Six of the ten economic sectors are in the green in the early-going. The financial sector (+1.4%), which had significant declines last week on credit concerns, is providing leadership.
The weakness in commodities is causing the materials (-1.0%) and energy (-2.5%) sectors to lag the broader market.DJ30 +34.06 NASDAQ -2.84 SP500 +0.88
09:45 am : The stock market opens modestly lower, and then quickly recovers to positive territory.
Topping headlines this morning is the announcement that IBM (IBM) is going to acquire Cognos (COGN) for $58 per share in cash, or approximately $5 billion. Meanwhile, E*Trade Financial (ETFC) is the latest in the growing list of companies that is warning of further credit losses and has said it no longer expects to achieve its prior FY07 earnings guidance.
Commodities are heading lower as the dollar strengthens. Crude is down 2.6% to $93.77. Gold is down 3.0% to $809.DJ30 +49.10 NASDAQ +3.77 SP500 +1.95
09:15 am : S&P futures vs fair value: -2.2. Nasdaq futures vs fair value: -5.0.
09:01 am : S&P futures vs fair value: -1.2. Nasdaq futures vs fair value: -3.8. Futures are gaining some ground, but continue to point to a lower open. The bond market is closed today in observance of Veterans Day.
08:30 am : S&P futures vs fair value: -3.3. Nasdaq futures vs fair value: -8.5. A lower open is still expected. September pending home sales will be released at 10:00 ET. Crude oil has eased 1.4% to $94.93 per barrel.
08:01 am : S&P futures vs fair value: -1.7. Nasdaq futures vs fair value: -4.0. Futures suggest a lower open. IBM (IBM) is going to acquire Cognos (COGN), in an all-cash transaction at a price of approximately $5 bln. Meanwhile, E*Trade Financial (ETFC) is the latest in the growing list of companies that is warning of further credit losses and has said it no longer expects to achieve its prior FY07 earnings guidance.(Disclosure: Briefing.com has a business relationship with E*Trade)
06:26 am : S&P futures vs fair value: -4.9. Nasdaq futures vs fair value: -4.5.
06:25 am : FTSE...6321.30...+16.40...+0.3%. DAX...7777.56...-34.84...-0.5%.
06:25 am : Nikkei...15197.09...-386.33...-2.5%. Hang Seng...27665.73...-1117.68...-3.9%.
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