AI
Wednesday, November 14, 2007 8:27:29 PM
Market Update 071114
http://biz.yahoo.com/mu/update.html
4:30 pm : After spending most of Wednesday hovering slightly above the unchanged mark, a steep and broad-based late-day sell-off pushed the major indices into the red. There was not a specific news item to account for the plunge. Traders were likely locking in profits following yesterday's big move. Of note, there was a large number of buy orders right before the close.
Financials kicked off a positive start this morning after Bear Stearns (BSC 103.45, +2.58) said it will write-down $1.2 billion of subprime-related assets in the fourth quarter and report a loss for the period. The write-down amount, though, was less than the market expected; moreover, Bear Stearns noted its CDO exposure had been cut by more than half since August and that it hopes that the worst of the mortgage markdowns are behind it.
On a related note, The New York Post reported that Merrill Lynch (MER 57.88, +0.93) is expected to announce that it has hired New York Stock Exchange CEO John Thain to replace ousted CEO Stan O'Neal. Shortly after the closing bell, Thain appeared on CNBC and confirmed he is taking Merrill's top job.
The financial sector, though, eventually lost steam, finishing the day 0.7% lower.
In merger and acquisition news, it was widely reported that the nation's second and third largest airlines, UAL Corp (UAUA 44.17, +0.67) and Delta Air Lines (DAL 19.56, +0.81) are in talks regarding a possible merger. Reports indicate the companies would keep the United name and the corporate headquarters would be located in the Chicago area. Shares of the airlines spiked on the news, as did the Amex Airline Index (+0.2%).
The airlines then gave up a large portion of their intraday gains following subsequent reports and a confirmation that Delta is not in merger talks with UAL.
Overall, commodities gained today, as indicated by the 1.7% rise in the CRB Index. The strength in commodities helped the materials sector finish 0.4% higher, which, beside consumer staples, was the only sector to finish in positive territory.
Crude oil rallied 2.9% to $93.78 per barrel. Bloomberg.com reports that today's rise in oil prices was due to speculation that U.S. stockpiles will show a draw tomorrow, and that its recent sell-off was overdone.
The consumer discretionary sector (-2.0%) was the biggest laggard in today's session as retailers have come under pressure following the October retail sales report.
Although retail sales were reported to have increased 0.2%, the uninspiring pace of growth ahead of the key holiday selling season, and relatively disappointing fourth quarter guidance from Macy's (M 28.49, -2.16) have tempered some of the enthusiasm surrounding yesterday's retail rally.
There was also notable weakness in the tech sector today (-1.5%), which caused the Nasdaq to trail behind the other major indices. The sector rallied 4.0% on Tuesday.
Separately, the market received good inflation news before the start of trading as the core-Producer Price Index, which excludes food and energy, was unchanged in October. The market was expecting a 0.2% increase.DJ30 -92.75 NASDAQ -29.33 SP500 -11.53 NASDAQ Dec/Adv/Vol 1785/1200/2.47 bln NYSE Dec/Adv/Vol 2033/1240/1.49 bln
3:35 pm : Much of the same as we head into the final half-hour of trading. Most of the trading day has been rather uneventful, although there have been some important headlines.
The potentially market-moving October Consumer Price Index (CPI) data are due out tomorrow morning at 8:30 AM ET. Briefing.com expects a reading of 0.3% for the CPI and 0.2% for core CPI. In addition, the weekly jobless claims and energy reports are set to be released, as is the November Philadelphia Fed manufacturing survey.DJ30 +28.45 NASDAQ -10.98 SP500 +2.66 NASDAQ Dec/Adv/Vol 1673/1284/1.91 bln NYSE Dec/Adv/Vol 1659/1572/1.15 bln
3:00 pm : It is being reported that the nation's second and third largest airlines, UAL Corp (UAUA 47.85, +4.35), better known as United, and Delta Air Lines (DAL 20.10, +1.35) are in talks of a possible merger. Reports indicate the companies would keep the United name and the corporate headquarters would be located in the Chicago area. Shares of the airlines spiked on the news, as has the Amex Airline Index (+3.3%).
Meanwhile, reports state that Fitch Ratings cut its short term rating on Bear Stearns (BSC 107.81, +6.94) due to mortgage exposure.
The major indices have dipped a bit since the last update, but continue to trade near the unchanged mark.DJ30 +8.70 NASDAQ -12.25 SP500 +1.16 NASDAQ Dec/Adv/Vol 1580/1368/1.73 bln NYSE Dec/Adv/Vol 1536/1680/1.05 bln
2:30 pm : Much of the same, as the major indices continue to hover near the unchanged mark within their intraday ranges.
Shares of global soft drink and snack maker PepsiCo (PEP, 74.85, +1.51) are higher after the company announced this morning it expects full-year 2007 core earnings to be at least $3.35 per share. The outlook was also provided when the company announced positive third quarter results last month. In addition, Credit Suisse initiated PepsiCo with an Outperform and set a price target of $87. The firm also named PepsiCo as its Top Pick in the U.S Beverage space.DJ30 +27.89 NASDAQ -1.22 SP500 +5.23 NASDAQ Dec/Adv/Vol 1567/1363/1.60 bln NYSE Dec/Adv/Vol 1600/1603/977 mln
2:00 pm : The stock market is back on the retreat, but remains within its tight intraday range. The Nasdaq Composite has fallen back into the red in conjunction with the tech sector (-0.3%).
The S&P 500 Retailing Index (-1.0%) continues to be a drag on the broader market following its 3.9% gain yesterday. Target (TGT 58.18, -1.42) is a laggard after it was downgraded at Merrill to Neutral from Buy. Meanwhile, Macy's (M 29.45, -1.20) is underperforming due to its relatively disappointing fourth quarter guidance.DJ30 -7.31 NASDAQ -8.43 SP500 +1.09 NASDAQ Dec/Adv/Vol 1539/1372/1.47 bln NYSE Dec/Adv/Vol 1421/1777/885 mln
1:30 pm : The major indices are trading with modest gains as they are back on the rise. There is a slight increase in broad-based buying. The stock market’s intraday range has been relatively tight since 10:00 ET.
Small-cap stocks are underperforming their large cap counterparts, as they have year-to-date.
DJ30 +41.38 NASDAQ +4.88 R2K +0.01% SP500 +7.09 NASDAQ Dec/Adv/Vol 1513/1357/1.33 bln NYSE Dec/Adv/Vol 1472/1710/814 mln
1:00 pm : The major indices have taken a slight dip as they continue to trade near the unchanged mark.
Oil is not the only commodity on the move this session. The materials sector (+1.2%) is providing leadership, having moved higher in conjunction with precious metals, which are up 2.6% this session. The CRB Index, which tracks a basket of commodities, is up 1.5%.
The dollar is down 0.21% against major world currencies, which is playing a role in the strength in commodities.DJ30 +12.52 NASDAQ -0.59 SP500 +3.38 NASDAQ Dec/Adv/Vol 1453/1400/1.24 bln NYSE Dec/Adv/Vol 1375/1805/748 mln
12:30 pm : Although off their intraday highs, all of the major indices are now trading in the green. Gains are modest, but the lack of selling interest following yesterday's big move is reassuring.
The energy sector (+1.5%) continues to provide leadership as crude oil, up 2.7% to $93.64, rebounds. Bloomberg.com reports that today's rise in oil prices are due to speculation that U.S. stockpiles will show a draw tomorrow, and that its recent sell-off was overdone.
In corporate news, The NY Post reports Merrill Lynch (MER 57.91, +0.96) is expected to announce this afternoon that it has hired New York Stock Exchange CEO John Thain to replace ousted CEO Stan O'Neal, according to people familiar with the matter. DJ30 +41.87 NASDAQ +6.31 SP500 +8.16 NASDAQ Dec/Adv/Vol 1449/1372/1.12 bln NYSE Dec/Adv/Vol 1447/1713/676 mln
12:00 pm : The stock market got off to a positive start today, but it wasn't allowed to get too far ahead of itself as the early gains, combined with yesterday's huge gains, sparked some selling interest. Still, the market has held its ground for the most part as it sits modestly higher entering the afternoon session.
The initial move higher was paced by the financial sector, which jumped as much as 1.8% after Bear Stearns (BSC 105.49, +4.62) provided a business update that was better than feared.
Specifically, Bear Stearns said it will write-down $1.2 billion of subprime-related assets in the fourth quarter and report a loss for the period. The write-down amount, though, was less than the market expected; moreover, Bear Stearns noted its CDO exposure had been cut by more than half since August and that it hopes that the worst of the mortgage markdowns are behind it.
The financial sector eventually gave way as sellers stepped in. That pullback cut into the early gains. In recent action, the sector has returned to positive territory (up 0.2%) and is offering support for the broader market, which is showing modest gains.
The energy sector (+1.3%) has been a constant in terms of leadership today as it has moved higher in conjunction with crude prices (+2.1% to $93.08).
Most sectors are in the green, including materials (+1.1%) which has been propped up again by a weaker dollar.
The consumer discretionary sector (-0.9%) is the biggest laggard in today's session as retailers have come under pressure following the October retail sales report.
Although retail sales were reported to have increased 0.2%, the uninspiring pace of growth ahead of the key holiday selling season, and relatively disappointing fourth quarter guidance from Macy's (M 29.39, -1.26) have tempered some of the enthusiasm surrounding yesterday's retail rally.
Technology (-0.1%) has been the other laggard of note, but its losses are negligible when pitted against the sector's 4.0% gain in Tuesday's trading.
Separately, the market received good inflation news before the start of trading as the core-Producer Price Index, which excludes food and energy, was unchanged in October. The market was expecting a 0.2% increase.DJ30 +21.63 NASDAQ -1.32 SP500 +5.15 NASDAQ Dec/Adv/Vol 1554/1249/980 mln NYSE Dec/Adv/Vol 1472/1651/580 mln
11:30 am : Relative to yesterday, the excitement factor on trading floors has been cut down considerably as the indices are struggling to make a concerted move.
All in all, though, today's action isn't that bad if you're a bull as the market has been reluctant to surrender any of yesterday's big gains.
The tech sector, which is down 0.4%, is acting as a bit of a drag, but its loss is pocket change compared to the 4.0% gain it achieved on Tuesday. DJ30 -12.27 NASDAQ -8.61 SP500 +1.60 NASDAQ Dec/Adv/Vol 1530/1226/837 mln NYSE Dec/Adv/Vol 1449/1660/505 mln
11:00 am : The indices are trading near the unchanged mark with neither buyers nor sellers showing a great deal of conviction.
One area of notable weakness, though, is the consumer discretionary sector (-0.8%), and specifically, many of the retail stocks.
The latter have been confronted with selling interest after yesterday's solid gains, and in the wake of this morning's retail sales report for October. While retail sales were up 0.2%, investors aren't all that excited by the uninspiring pace of sales growth entering the holiday shopping season.DJ30 -0.32 NASDAQ -1.76 SP500 +1.74 NASDAQ Dec/Adv/Vol 1362/1322/688 mln NYSE Dec/Adv/Vol 1367/1715/409 mln
10:30 am : While off its highs, the stock market is showing some resilience to selling efforts as it has had an aversion thus far to negative territory.
The energy sector (+1.6%) has assumed today's leadership role, having moved higher in conjunction with crude prices which have jumped more than 2.0% to $93.38.
Weekly inventory data from the Dept. of Energy, normally scheduled for release on Wednesday, has been delayed until Thursday due to the Veterans Day holiday on Monday.
Strikingly, the financial sector, up 1.8% shortly after the start of trading, is now down 0.1% for the day.DJ30 -3.82 NASDAQ +0.12 SP500 +1.26 NASDAQ Dec/Adv/Vol 1251/1359/507 mln NYSE Dec/Adv/Vol 1220/1764/278 mln
10:00 am : Opening buying efforts have tapered off as the indices have relinquished a considerable portion of their opening gains.
The financial sector (+0.5%) has tailed off after its robust start, and has been a factor in the pullback. Likewise, the consumer discretionary sector (-0.5%) is underperforming after a strong showing yesterday and is acting as a drag on the broader market.
Separately, Fed Chairman Bernanke spoke this morning about FOMC communications. In general, he didn't provide any juicy nuggets that would drive current Fed policy expectations, but he did provide some good news with an indication that the Fed will be more transparent with its communications. For example, the Fed will bump up the number of economic forecasts it makes each year from two to four and will provide more information on the risks surrounding its forecast. DJ30 +17.24 NASDAQ +5.06 SP500 +5.39
09:45 am : The stock market has started the session on a positive note, which was presaged by the futures market.
Reassuring economic data in the form of the October PPI and Retail Sales reports have aided in the positive open, as has commentary from Bear Stearns (BSC 108.73, +7.86) which announced a $1.2 billion write-down for the fourth quarter but also said it would like to hope the worst of the mortgage markdowns are behind it.
The financial sector (+1.8%) is picking up where it left off yesterday and is leading the broader market's gains.DJ30 +50.48 NASDAQ +15.42 SP500 +9.77
09:16 am : S&P futures vs fair value: +8.1. Nasdaq futures vs fair value: +23.5. Fed Chairman Bernanke, who is currently speaking in Washington, said the Fed will increase economy forecasts to four times a year from two. Meanwhile, Oil prices, after selling off sharply the last several sessions, are up 1.6% to $92.58 ahead of the government’s weekly energy report at 10:30 ET.
09:00 am : S&P futures vs fair value: +7.8. Nasdaq futures vs fair value: +23.0. Futures continue to make gains. At the Merrill Lynch conference, Bear Stearns (BSC) says it expects a net write-down of about $1.2 bln in the fourth quarter, but would like to hope that the worst of the mortgage crisis is behind the company.
08:35 am : S&P futures vs fair value: +6.8. Nasdaq futures vs fair value: +7.0. Futures climb back to the unchanged mark and then get a pop on the release of the October retail sales and PPI reports. Retail sales ex-auto came in at 0.2%, in-line with the consensus estimate. Core PPI was unchanged. Economists expected a rise of 0.2%.
08:00 am : S&P futures vs fair value: -2.5. Nasdaq futures vs fair value: -10.0. Futures are pointing to a negative start as investors take some money off the table following yesterday’s big move. Also, there is a bit of a wait-and-see element at work here as traders are refraining from making any bullish bets ahead of the retail sales and producer price index reports at 08:30 ET. In corporate news, HSBC (HBC) said it will be taking a $3.4 billion charge on bad loans at HSBC Finance, but still expects third quarter operating income to be higher than last year.
06:24 am : S&P futures vs fair value: flat. Nasdaq futures vs fair value: -4.3.
06:24 am : FTSE...6450.60...+88.20...+1.4%. DAX...7844.31...+66.75...+0.9%.
06:24 am : Nikkei...15499.56...+372.93...+2.5%. Hang Seng...29166.01...+1362.66...+4.9%.
http://biz.yahoo.com/mu/update.html
4:30 pm : After spending most of Wednesday hovering slightly above the unchanged mark, a steep and broad-based late-day sell-off pushed the major indices into the red. There was not a specific news item to account for the plunge. Traders were likely locking in profits following yesterday's big move. Of note, there was a large number of buy orders right before the close.
Financials kicked off a positive start this morning after Bear Stearns (BSC 103.45, +2.58) said it will write-down $1.2 billion of subprime-related assets in the fourth quarter and report a loss for the period. The write-down amount, though, was less than the market expected; moreover, Bear Stearns noted its CDO exposure had been cut by more than half since August and that it hopes that the worst of the mortgage markdowns are behind it.
On a related note, The New York Post reported that Merrill Lynch (MER 57.88, +0.93) is expected to announce that it has hired New York Stock Exchange CEO John Thain to replace ousted CEO Stan O'Neal. Shortly after the closing bell, Thain appeared on CNBC and confirmed he is taking Merrill's top job.
The financial sector, though, eventually lost steam, finishing the day 0.7% lower.
In merger and acquisition news, it was widely reported that the nation's second and third largest airlines, UAL Corp (UAUA 44.17, +0.67) and Delta Air Lines (DAL 19.56, +0.81) are in talks regarding a possible merger. Reports indicate the companies would keep the United name and the corporate headquarters would be located in the Chicago area. Shares of the airlines spiked on the news, as did the Amex Airline Index (+0.2%).
The airlines then gave up a large portion of their intraday gains following subsequent reports and a confirmation that Delta is not in merger talks with UAL.
Overall, commodities gained today, as indicated by the 1.7% rise in the CRB Index. The strength in commodities helped the materials sector finish 0.4% higher, which, beside consumer staples, was the only sector to finish in positive territory.
Crude oil rallied 2.9% to $93.78 per barrel. Bloomberg.com reports that today's rise in oil prices was due to speculation that U.S. stockpiles will show a draw tomorrow, and that its recent sell-off was overdone.
The consumer discretionary sector (-2.0%) was the biggest laggard in today's session as retailers have come under pressure following the October retail sales report.
Although retail sales were reported to have increased 0.2%, the uninspiring pace of growth ahead of the key holiday selling season, and relatively disappointing fourth quarter guidance from Macy's (M 28.49, -2.16) have tempered some of the enthusiasm surrounding yesterday's retail rally.
There was also notable weakness in the tech sector today (-1.5%), which caused the Nasdaq to trail behind the other major indices. The sector rallied 4.0% on Tuesday.
Separately, the market received good inflation news before the start of trading as the core-Producer Price Index, which excludes food and energy, was unchanged in October. The market was expecting a 0.2% increase.DJ30 -92.75 NASDAQ -29.33 SP500 -11.53 NASDAQ Dec/Adv/Vol 1785/1200/2.47 bln NYSE Dec/Adv/Vol 2033/1240/1.49 bln
3:35 pm : Much of the same as we head into the final half-hour of trading. Most of the trading day has been rather uneventful, although there have been some important headlines.
The potentially market-moving October Consumer Price Index (CPI) data are due out tomorrow morning at 8:30 AM ET. Briefing.com expects a reading of 0.3% for the CPI and 0.2% for core CPI. In addition, the weekly jobless claims and energy reports are set to be released, as is the November Philadelphia Fed manufacturing survey.DJ30 +28.45 NASDAQ -10.98 SP500 +2.66 NASDAQ Dec/Adv/Vol 1673/1284/1.91 bln NYSE Dec/Adv/Vol 1659/1572/1.15 bln
3:00 pm : It is being reported that the nation's second and third largest airlines, UAL Corp (UAUA 47.85, +4.35), better known as United, and Delta Air Lines (DAL 20.10, +1.35) are in talks of a possible merger. Reports indicate the companies would keep the United name and the corporate headquarters would be located in the Chicago area. Shares of the airlines spiked on the news, as has the Amex Airline Index (+3.3%).
Meanwhile, reports state that Fitch Ratings cut its short term rating on Bear Stearns (BSC 107.81, +6.94) due to mortgage exposure.
The major indices have dipped a bit since the last update, but continue to trade near the unchanged mark.DJ30 +8.70 NASDAQ -12.25 SP500 +1.16 NASDAQ Dec/Adv/Vol 1580/1368/1.73 bln NYSE Dec/Adv/Vol 1536/1680/1.05 bln
2:30 pm : Much of the same, as the major indices continue to hover near the unchanged mark within their intraday ranges.
Shares of global soft drink and snack maker PepsiCo (PEP, 74.85, +1.51) are higher after the company announced this morning it expects full-year 2007 core earnings to be at least $3.35 per share. The outlook was also provided when the company announced positive third quarter results last month. In addition, Credit Suisse initiated PepsiCo with an Outperform and set a price target of $87. The firm also named PepsiCo as its Top Pick in the U.S Beverage space.DJ30 +27.89 NASDAQ -1.22 SP500 +5.23 NASDAQ Dec/Adv/Vol 1567/1363/1.60 bln NYSE Dec/Adv/Vol 1600/1603/977 mln
2:00 pm : The stock market is back on the retreat, but remains within its tight intraday range. The Nasdaq Composite has fallen back into the red in conjunction with the tech sector (-0.3%).
The S&P 500 Retailing Index (-1.0%) continues to be a drag on the broader market following its 3.9% gain yesterday. Target (TGT 58.18, -1.42) is a laggard after it was downgraded at Merrill to Neutral from Buy. Meanwhile, Macy's (M 29.45, -1.20) is underperforming due to its relatively disappointing fourth quarter guidance.DJ30 -7.31 NASDAQ -8.43 SP500 +1.09 NASDAQ Dec/Adv/Vol 1539/1372/1.47 bln NYSE Dec/Adv/Vol 1421/1777/885 mln
1:30 pm : The major indices are trading with modest gains as they are back on the rise. There is a slight increase in broad-based buying. The stock market’s intraday range has been relatively tight since 10:00 ET.
Small-cap stocks are underperforming their large cap counterparts, as they have year-to-date.
DJ30 +41.38 NASDAQ +4.88 R2K +0.01% SP500 +7.09 NASDAQ Dec/Adv/Vol 1513/1357/1.33 bln NYSE Dec/Adv/Vol 1472/1710/814 mln
1:00 pm : The major indices have taken a slight dip as they continue to trade near the unchanged mark.
Oil is not the only commodity on the move this session. The materials sector (+1.2%) is providing leadership, having moved higher in conjunction with precious metals, which are up 2.6% this session. The CRB Index, which tracks a basket of commodities, is up 1.5%.
The dollar is down 0.21% against major world currencies, which is playing a role in the strength in commodities.DJ30 +12.52 NASDAQ -0.59 SP500 +3.38 NASDAQ Dec/Adv/Vol 1453/1400/1.24 bln NYSE Dec/Adv/Vol 1375/1805/748 mln
12:30 pm : Although off their intraday highs, all of the major indices are now trading in the green. Gains are modest, but the lack of selling interest following yesterday's big move is reassuring.
The energy sector (+1.5%) continues to provide leadership as crude oil, up 2.7% to $93.64, rebounds. Bloomberg.com reports that today's rise in oil prices are due to speculation that U.S. stockpiles will show a draw tomorrow, and that its recent sell-off was overdone.
In corporate news, The NY Post reports Merrill Lynch (MER 57.91, +0.96) is expected to announce this afternoon that it has hired New York Stock Exchange CEO John Thain to replace ousted CEO Stan O'Neal, according to people familiar with the matter. DJ30 +41.87 NASDAQ +6.31 SP500 +8.16 NASDAQ Dec/Adv/Vol 1449/1372/1.12 bln NYSE Dec/Adv/Vol 1447/1713/676 mln
12:00 pm : The stock market got off to a positive start today, but it wasn't allowed to get too far ahead of itself as the early gains, combined with yesterday's huge gains, sparked some selling interest. Still, the market has held its ground for the most part as it sits modestly higher entering the afternoon session.
The initial move higher was paced by the financial sector, which jumped as much as 1.8% after Bear Stearns (BSC 105.49, +4.62) provided a business update that was better than feared.
Specifically, Bear Stearns said it will write-down $1.2 billion of subprime-related assets in the fourth quarter and report a loss for the period. The write-down amount, though, was less than the market expected; moreover, Bear Stearns noted its CDO exposure had been cut by more than half since August and that it hopes that the worst of the mortgage markdowns are behind it.
The financial sector eventually gave way as sellers stepped in. That pullback cut into the early gains. In recent action, the sector has returned to positive territory (up 0.2%) and is offering support for the broader market, which is showing modest gains.
The energy sector (+1.3%) has been a constant in terms of leadership today as it has moved higher in conjunction with crude prices (+2.1% to $93.08).
Most sectors are in the green, including materials (+1.1%) which has been propped up again by a weaker dollar.
The consumer discretionary sector (-0.9%) is the biggest laggard in today's session as retailers have come under pressure following the October retail sales report.
Although retail sales were reported to have increased 0.2%, the uninspiring pace of growth ahead of the key holiday selling season, and relatively disappointing fourth quarter guidance from Macy's (M 29.39, -1.26) have tempered some of the enthusiasm surrounding yesterday's retail rally.
Technology (-0.1%) has been the other laggard of note, but its losses are negligible when pitted against the sector's 4.0% gain in Tuesday's trading.
Separately, the market received good inflation news before the start of trading as the core-Producer Price Index, which excludes food and energy, was unchanged in October. The market was expecting a 0.2% increase.DJ30 +21.63 NASDAQ -1.32 SP500 +5.15 NASDAQ Dec/Adv/Vol 1554/1249/980 mln NYSE Dec/Adv/Vol 1472/1651/580 mln
11:30 am : Relative to yesterday, the excitement factor on trading floors has been cut down considerably as the indices are struggling to make a concerted move.
All in all, though, today's action isn't that bad if you're a bull as the market has been reluctant to surrender any of yesterday's big gains.
The tech sector, which is down 0.4%, is acting as a bit of a drag, but its loss is pocket change compared to the 4.0% gain it achieved on Tuesday. DJ30 -12.27 NASDAQ -8.61 SP500 +1.60 NASDAQ Dec/Adv/Vol 1530/1226/837 mln NYSE Dec/Adv/Vol 1449/1660/505 mln
11:00 am : The indices are trading near the unchanged mark with neither buyers nor sellers showing a great deal of conviction.
One area of notable weakness, though, is the consumer discretionary sector (-0.8%), and specifically, many of the retail stocks.
The latter have been confronted with selling interest after yesterday's solid gains, and in the wake of this morning's retail sales report for October. While retail sales were up 0.2%, investors aren't all that excited by the uninspiring pace of sales growth entering the holiday shopping season.DJ30 -0.32 NASDAQ -1.76 SP500 +1.74 NASDAQ Dec/Adv/Vol 1362/1322/688 mln NYSE Dec/Adv/Vol 1367/1715/409 mln
10:30 am : While off its highs, the stock market is showing some resilience to selling efforts as it has had an aversion thus far to negative territory.
The energy sector (+1.6%) has assumed today's leadership role, having moved higher in conjunction with crude prices which have jumped more than 2.0% to $93.38.
Weekly inventory data from the Dept. of Energy, normally scheduled for release on Wednesday, has been delayed until Thursday due to the Veterans Day holiday on Monday.
Strikingly, the financial sector, up 1.8% shortly after the start of trading, is now down 0.1% for the day.DJ30 -3.82 NASDAQ +0.12 SP500 +1.26 NASDAQ Dec/Adv/Vol 1251/1359/507 mln NYSE Dec/Adv/Vol 1220/1764/278 mln
10:00 am : Opening buying efforts have tapered off as the indices have relinquished a considerable portion of their opening gains.
The financial sector (+0.5%) has tailed off after its robust start, and has been a factor in the pullback. Likewise, the consumer discretionary sector (-0.5%) is underperforming after a strong showing yesterday and is acting as a drag on the broader market.
Separately, Fed Chairman Bernanke spoke this morning about FOMC communications. In general, he didn't provide any juicy nuggets that would drive current Fed policy expectations, but he did provide some good news with an indication that the Fed will be more transparent with its communications. For example, the Fed will bump up the number of economic forecasts it makes each year from two to four and will provide more information on the risks surrounding its forecast. DJ30 +17.24 NASDAQ +5.06 SP500 +5.39
09:45 am : The stock market has started the session on a positive note, which was presaged by the futures market.
Reassuring economic data in the form of the October PPI and Retail Sales reports have aided in the positive open, as has commentary from Bear Stearns (BSC 108.73, +7.86) which announced a $1.2 billion write-down for the fourth quarter but also said it would like to hope the worst of the mortgage markdowns are behind it.
The financial sector (+1.8%) is picking up where it left off yesterday and is leading the broader market's gains.DJ30 +50.48 NASDAQ +15.42 SP500 +9.77
09:16 am : S&P futures vs fair value: +8.1. Nasdaq futures vs fair value: +23.5. Fed Chairman Bernanke, who is currently speaking in Washington, said the Fed will increase economy forecasts to four times a year from two. Meanwhile, Oil prices, after selling off sharply the last several sessions, are up 1.6% to $92.58 ahead of the government’s weekly energy report at 10:30 ET.
09:00 am : S&P futures vs fair value: +7.8. Nasdaq futures vs fair value: +23.0. Futures continue to make gains. At the Merrill Lynch conference, Bear Stearns (BSC) says it expects a net write-down of about $1.2 bln in the fourth quarter, but would like to hope that the worst of the mortgage crisis is behind the company.
08:35 am : S&P futures vs fair value: +6.8. Nasdaq futures vs fair value: +7.0. Futures climb back to the unchanged mark and then get a pop on the release of the October retail sales and PPI reports. Retail sales ex-auto came in at 0.2%, in-line with the consensus estimate. Core PPI was unchanged. Economists expected a rise of 0.2%.
08:00 am : S&P futures vs fair value: -2.5. Nasdaq futures vs fair value: -10.0. Futures are pointing to a negative start as investors take some money off the table following yesterday’s big move. Also, there is a bit of a wait-and-see element at work here as traders are refraining from making any bullish bets ahead of the retail sales and producer price index reports at 08:30 ET. In corporate news, HSBC (HBC) said it will be taking a $3.4 billion charge on bad loans at HSBC Finance, but still expects third quarter operating income to be higher than last year.
06:24 am : S&P futures vs fair value: flat. Nasdaq futures vs fair value: -4.3.
06:24 am : FTSE...6450.60...+88.20...+1.4%. DAX...7844.31...+66.75...+0.9%.
06:24 am : Nikkei...15499.56...+372.93...+2.5%. Hang Seng...29166.01...+1362.66...+4.9%.
Discover What Traders Are Watching
Explore small cap ideas before they hit the headlines.
