AI
Friday, November 16, 2007 8:08:06 PM
Market Update 071116
http://biz.yahoo.com/mu/update.html
4:25 pm : The negative headlines outweighed the positive headlines on Friday, but thanks to a late burst of buying interest the market still managed to end the session higher.
In terms of the positive news on Friday, it was limited primarily to Cisco's (CSCO 29.94, +0.64) announcement that its board had authorized an additional $10 billion for stock repurchases, bringing the total authorization for the buyback plan to a whopping $62 billion.
This news understandably provided a boost to Cisco's stock that contributed to the relative outperformance of the Nasdaq, as well as the technology sector (+1.4%). A Morgan Stanley upgrade of Hewlett-Packard (HPQ 50.75, +1.85) to Overweight from Equal Weight also stood out as a positive focal point that helped the broader market.
The rest of the notable headlines weren't so uplifting for market participants.
Fed Governor Kroszner delivered a tacit message that the market shouldn't count on a rate cut at the next FOMC meeting when, according to Bloomberg.com, he stated in a speech that, "the current stance of monetary policy should help the economy get through the rough patch during the next year."
Kroszner's remarks hit the wires shortly before it was reported Industrial Production declined 0.5% in October versus a 0.1% increase in September. His remarks also came before FedEx (FDX 96.80, -4.57) issued an earnings warning for its fiscal second quarter and full year, citing an inability to keep pace with rising fuel costs and continued weakness in its less-than-truckload business.
The FedEx warning, and similarly cautious comments on the less-than-truckload freight environment from YRC Worldwide (YRCW 17.59, -2.52), derailed the transportation stocks which comprised the main pocket of weakness in Friday's market. A 1.8% jump in crude prices to $95.10 didn't help the transportation sector's fortunes either.
Similarly, there was a stream of negative news from several well-known retailers that included Starbucks (SBUX 23.17, -0.93), Kohl's (KSS 49.68, +0.76) and Ann Taylor (ANN 32.47, +1.08). Although each of those companies managed to meet, or beat, third quarter earnings expectations, they all issued warnings for their fiscal year making note of the challenging economic environment.
Their cautious guidance was not a surprise in many respects, so their stock prices held up better than one might imagine. The S&P Retailing Index slipped just 0.2% for the day.
Despite the market's positive showing, there was a glaring absence in the move. The financial sector (-0.8%), once again, lost ground on continued concerns regarding major financial institutions' exposure to the mortgage market.
A report from a Goldman Sachs economist that suggested losses could ultimately translate into a $2 trillion cut in lending set the tone for the sector, which spent the vast majority of Friday's trading in negative territory. Fannie Mae (FNM 40.69, -2.35), which held a call to answer questions about its accounting practices after some worrisome allegations leveled in a Fortune magazine article, was a notable laggard.
At the end of the day, the financial and industrials (-0.04%) sectors were the only economic sectors that failed to record a gain. Energy (+1.7%) led the list of winners, followed by technology and consumer staples (+1.1%).DJ30 +66.74 DJTA -1.61% NASDAQ +18.73 NQ100 +1.21% R2K -0.27% SP400 -0.15% SP500 +7.59 NASDAQ Dec/Adv/Vol 1592/1373/2.51 bln NYSE Dec/Adv/Vol 1809/1460/1.77 bln
3:35 pm : The major indices are trading in a very tight range near the unchanged mark as we head into the final half-hour of the trading week.
Rounding off the top three gainers this week include the home furnishings (+10.3%), health care facilities (+8.6%) and electronic equipment manufacturers (+8.1%) groups. The main laggards were thrifts & mortgages (-10.0%), diversified metals & mining (-8.5%) and gold (-8.2%).
Next week, minutes from the Federal Open Market Committee's Oct. 31 meeting are scheduled for release Tuesday. The minutes will draw considerable attention from market watchers looking for further insight on the committee's recent decision to cut the fed funds rate 25 basis points to 4.50%. DJ30 -10.00 NASDAQ +1.67 SP500 -0.83 NASDAQ Dec/Adv/Vol 1832/1123/2.02 bln NYSE Dec/Adv/Vol 2077/1179/1.31 bln
3:05 pm : After hovering slightly below the unchanged mark, a recent increase in broad-based buying interest has pushed the indices back to the unchanged mark. The breadth of the market is somewhat bearish. The ratio of advancers to decliners at the NYSE is 0.6, while the Nasdaq Composite comes in at 0.55.
The financial sector (-1.3%) continues to be a drag on the market. The thrifts & mortgages group (-3.0%) is showing the most weakness.DJ30 -4.23 NASDAQ +2.72 SP500 -0.74 NASDAQ Dec/Adv/Vol 1883/1033/1.81 bln NYSE Dec/Adv/Vol 2025/1222/1.16 bln
2:30 pm : The stock market continues its choppy run, as the major indices slip, and are now trading in mixed fashion. There was not a specific news item for the selling interest, and it has been a broad-based decline.
Investors will be keeping a close eye on how the market trades heading into the close, as the last two trading sessions had sharp, and broad-based late-day sell-offs.
Regarding commodities, the CRB Index is up 0.81%, with the energy group (+2.0%) showing the most strength. Meanwhile the dollar has weakened 0.37% against world currencies.DJ30 -6.42 NASDAQ +5.96 SP500 +0.32 NASDAQ Dec/Adv/Vol 1827/1087/1.68 bln NYSE Dec/Adv/Vol 1993/1226/1.06 bln
2:00 pm : The major indices continue to trade modestly above the unchanged mark. There has not been much market moving news in the last hour.
Shares of GPS maker Garmin (GRMN 98.43, +14.43) are trading sharply higher after the company announced this morning that it has extended its agreement with digital map maker NAVTEQ (NVT 76.39, -0.29) and no longer intends to pursue its offer for Tele Atlas. In addition, Garmin was upgraded to Buy from Sell at Merrill Lynch.DJ30 +39.42 NASDAQ +8.13 SP500 +5.03 NASDAQ Dec/Adv/Vol 1632/1265/1.54 bln NYSE Dec/Adv/Vol 1857/1342/976 mln
1:30 pm : Since the last update, the stock market has held to a relatively tight range.
Shares of Starbucks (SBX 22.41, -1.69) are getting clipped after the company reported earnings that met estimates, but lowered its fiscal 2008 earnings guidance. Specifically, Starbucks expects to open approximately 2,500 net new stores on a global basis (former target was 2,600), comparable store sales growth in the range of 3%-5% (former guidance was 3%-7%), total net revenue growth of approximately 17%-18% (prior view said approximately 18%), and diluted EPS growth of 17%-21% (prior guidance was approximately 20%-22%).
Many consumers may be hooked on Starbucks coffee, but the market clearly isn't hooked on its stock which, including this session's losses, is down 39% year-to-date.DJ30 +32.12 NASDAQ +5.97 SP500 +4.05 NASDAQ Dec/Adv/Vol 1637/1238/1.43 bln NYSE Dec/Adv/Vol 1868/1324/921 mln
1:00 pm : The major indices are sliding off their recently reached intraday highs as broad-based selling picks up, but they are still holding onto modest gains. Trading has been choppy this session.
Following the recent trend, the small-cap Russel 2000 Index is trailing behind its large-cap counterparts. Also, the S&P 500 Mid-Cap Index is showing weakness
Meanwhile, Dow Jones reports that the CEO of YRC Worldwide (YRC 17.74, -2.37) sees the same weak trucking trends as FedEx (FDX 97.00, -4.43).DJ30 +47.23 NASDAQ +5.94 R2K -0.5% SP400 -0.5% SP500 +3.61 NASDAQ Dec/Adv/Vol 1526/1345/1.33 bln NYSE Dec/Adv/Vol 1717/1443/847 mln
12:30 pm : The equity market extends its gains, hitting fresh intraday highs. The tech sector (+1.0%) is the main factor in the turnaround.
Microsoft (MSFT 34.12, 0.36) and Yahoo (YHOO 26.44, +1.02) are fueling the tech sector rally after a pre-market posting on Henry Blodget's Silicon Alley Insider blog that discusses the possibility of Microsoft buying Yahoo makes its rounds to trading desks. The blog implies that in order for Microsoft to meet its lofty goals of increasing online search and ad share it would have to buy Yahoo.
DJ30 +71.37 NASDAQ +11.72 SP500 +6.83 NASDAQ Dec/Adv/Vol 1430/1410/1.21 bln NYSE Dec/Adv/Vol 1726/1418/782 mln
12:05 pm : After opening in positive territory, the major indices have traded in a choppy manner throughout the session. At the East Coast lunch hour, a recent surge in buying interest, led by a turnaround in the tech sector (+1.0%), has pushed the indices modestly below their opening highs.
Cisco (CSCO 30.00, +0.70) is pacing the tech sector's advance after it authorized up to $10 billion in additional stock repurchases, bringing its total amount authorized to $62 billion.
The credit market continues to be an area of concern for investors. This morning, Bloomberg.com reported that Goldman Sachs (GS 226.25, -0.77) sees the slump in global credit markets forcing banks, brokerages and hedge funds to cut lending by $2 trillion, triggering the risk of a "substantial recession.''
In addition, Fannie Mae (FNM 41.53, -1.51) held a conference call to answer credit questions after Fortune reported that the lender may be "camouflaging" credit losses. The market did not like what it heard, as the stock plummeted 10% shortly after the call, but has since pared the majority of its losses. The stock declined roughly 10% yesterday.
Meanwhile, Fed Governor Kroszner suggested further rate cuts would raise inflation risk.
As was the case yesterday, the financial sector (-0.8%) is the main laggard.
A sell-off in transport stocks led the industrial sector 0.5% lower. FedEx (FDX 97.07, -4.30) triggered the selling in transports after citing an inability for its dynamic fuel surcharges to keep pace with rapidly rising fuel prices and continued weakness in less-than-truckload freight trends. FedEx reduced its EPS guidance for its fiscal second quarter ending November 30 and for its full fiscal year.
Adding to the woes of industrial stocks, a Federal Reserve release showed that industrial production fell 0.5% in October, compared to the expectation of a 0.1% rise. For what it is worth, though, FedEx said there are economic signs that the decline in U.S. industrial production has hit bottom.
The energy sector (+1.7%) is providing leadership as it rises in conjunction with crude oil prices, up 1.6% to $94.92 per barrel. Contracts for December delivery expire today. The Deutsche Bank upgrade of several oil companies is also aiding in the sector's outperformance. DJ30 +31.38 DJTA -1.7% NASDAQ +10.09 SP500 +3.87 NASDAQ Dec/Adv/Vol 1749/1059/1.06 bln NYSE Dec/Adv/Vol 1986/1127/689 mln
11:30 am : Choppy action continues, as the stock market is back on the decline after briefly trading in positive territory. The major indices, though, remain off their intraday lows. Investors are wavering this morning, as uncertainty regarding the credit market continues.DJ30 -7.32 NASDAQ -6.79 SP500 -2.87 NASDAQ Dec/Adv/Vol 1690/1045/899 mln NYSE Dec/Adv/Vol 1832/1233/596 mln
11:00 am : Selling pressure has eased, for now, as the major indices inch toward the unchanged mark. Five of the ten economic sectors are now in the red.
There is a notable pocket of weakness in the S&P 500 Retailing Index (-1.2%). Target (TGT 53.66, -1.21) is the main drag after it was downgraded to Neutral from Buy at UBS. The firm based its decision on on the likelihood of decelerating transmission growth in 2008, as well as its view that the current valuation appropriately reflects the company's expansion prospects.DJ30 -3.50 NASDAQ -9.04 SP500 -1.71 NASDAQ Dec/Adv/Vol 1839/847/732 mln NYSE Dec/Adv/Vol 2069/960/471 mln
10:30 am : After a bit of choppiness, the stock market is back on the decline as it pushes into its worst levels of the session.
Credit worries continue to affect the equity market. This morning, Bloomberg.com reported that Goldman Sachs (GS 227.23, +0.16) sees the slump in global credit markets forcing banks, brokerages and hedge funds to cut lending by $2 trillion, triggering the risk of a "substantial recession.''
In addition, Fannie Mae (FNM 38.72, -4.32) is holding a conference call to discuss its accounting. Clearly the market does not like what it is hearing, as the stock is down 10% this session, which follows its roughly 10% decline yesterday.DJ30 -21.84 NASDAQ -18.71 SP500 -12.93 NASDAQ Dec/Adv/Vol 1752/834/536 mln NYSE Dec/Adv/Vol 2018/932/381 mln
10:00 am : The major indices are off their opening highs as the Nasdaq Composite slips into negative territory. Three of the ten sectors are in the red. The influential financial sector (-0.6%) is the main laggard.
The energy sector (+1.2%) is providing leadership as it benefits from rising crude prices and a number of energy stock upgrades at Deutsche Bank.
FedEx (FDX) lowered its earnings guidance for the second quarter and FY07, citing higher fuel costs. Its CFO said, "Since we provided earnings guidance for the second quarter in September, our fuel costs have increased more than 8%, or $85 million." The news has been a drag on logistic (-2.5%), and trucking (-3.5%) stocks. DJ30 +37.71 NASDAQ -8.79 SP500 +1.52
09:40 am : As futures indicated, the stock market rebounds following yesterday's late day sell-off. Gains in the major indices, though, are modest.
Cisco (CSCO) is supporting the positive start after it authorized up to $10 billion in additional stock repurchases, bringing its total amount authorized to $62 billion.
Meanwhile, crude oil is up 2.0% to $95.26. The contract for December delivery expires today. DJ30 +67.71 NASDAQ +7.13 SP500 +7.02
09:17 am : S&P futures vs fair value: +6.7. Nasdaq futures vs fair value: +16.0. Futures take a slight dip. Industrial production decreased 0.5% compared to the expected rise of 0.1%.
09:00 am : S&P futures vs fair value: +9.5. Nasdaq futures vs fair value: +19.5. Early indications continue to suggest a positive opening. A barrel of crude for December delivery is up 1.1% to $94.43. Federal Reserve Governor Randall Kroszner said oil prices may put 'upward pressure' on inflation. He also reiterated that “the downside risks to economic growth now appear to be roughly balanced by the upside risks to inflation.”
08:31 am : S&P futures vs fair value: +7.7. Nasdaq futures vs fair value: +14.3. Nasdaq futures gain a few points after Cisco (CSCO) announced its board authorized up to $10 bln in additional repurchases of its common stock.
08:00 am : S&P futures vs fair value: +7.9. Nasdaq futures vs fair value: +8.8. The futures market indicates that stocks are poised for a rebound following yesterday’s late-day sell-off. Both Starbucks (SBUX) and Kohl's (KSS) managed to meet, or beat, earnings expectations for the third quarter, but then sounded warnings for the current period. The October Industrial Production report is slated to be released at 9:15 ET. Economists expect a modest 0.1% gain.
06:16 am : S&P futures vs fair value: +2.3. Nasdaq futures vs fair value: -0.3.
06:15 am : FTSE...6313.30...-46.30...-0.7%. DAX...7594.92...-72.11...-0.9%.
06:15 am : Nikkei...15154.61...-241.69...-1.6%. Hang Seng...27614.43...-1136.78...-4%.
http://biz.yahoo.com/mu/update.html
4:25 pm : The negative headlines outweighed the positive headlines on Friday, but thanks to a late burst of buying interest the market still managed to end the session higher.
In terms of the positive news on Friday, it was limited primarily to Cisco's (CSCO 29.94, +0.64) announcement that its board had authorized an additional $10 billion for stock repurchases, bringing the total authorization for the buyback plan to a whopping $62 billion.
This news understandably provided a boost to Cisco's stock that contributed to the relative outperformance of the Nasdaq, as well as the technology sector (+1.4%). A Morgan Stanley upgrade of Hewlett-Packard (HPQ 50.75, +1.85) to Overweight from Equal Weight also stood out as a positive focal point that helped the broader market.
The rest of the notable headlines weren't so uplifting for market participants.
Fed Governor Kroszner delivered a tacit message that the market shouldn't count on a rate cut at the next FOMC meeting when, according to Bloomberg.com, he stated in a speech that, "the current stance of monetary policy should help the economy get through the rough patch during the next year."
Kroszner's remarks hit the wires shortly before it was reported Industrial Production declined 0.5% in October versus a 0.1% increase in September. His remarks also came before FedEx (FDX 96.80, -4.57) issued an earnings warning for its fiscal second quarter and full year, citing an inability to keep pace with rising fuel costs and continued weakness in its less-than-truckload business.
The FedEx warning, and similarly cautious comments on the less-than-truckload freight environment from YRC Worldwide (YRCW 17.59, -2.52), derailed the transportation stocks which comprised the main pocket of weakness in Friday's market. A 1.8% jump in crude prices to $95.10 didn't help the transportation sector's fortunes either.
Similarly, there was a stream of negative news from several well-known retailers that included Starbucks (SBUX 23.17, -0.93), Kohl's (KSS 49.68, +0.76) and Ann Taylor (ANN 32.47, +1.08). Although each of those companies managed to meet, or beat, third quarter earnings expectations, they all issued warnings for their fiscal year making note of the challenging economic environment.
Their cautious guidance was not a surprise in many respects, so their stock prices held up better than one might imagine. The S&P Retailing Index slipped just 0.2% for the day.
Despite the market's positive showing, there was a glaring absence in the move. The financial sector (-0.8%), once again, lost ground on continued concerns regarding major financial institutions' exposure to the mortgage market.
A report from a Goldman Sachs economist that suggested losses could ultimately translate into a $2 trillion cut in lending set the tone for the sector, which spent the vast majority of Friday's trading in negative territory. Fannie Mae (FNM 40.69, -2.35), which held a call to answer questions about its accounting practices after some worrisome allegations leveled in a Fortune magazine article, was a notable laggard.
At the end of the day, the financial and industrials (-0.04%) sectors were the only economic sectors that failed to record a gain. Energy (+1.7%) led the list of winners, followed by technology and consumer staples (+1.1%).DJ30 +66.74 DJTA -1.61% NASDAQ +18.73 NQ100 +1.21% R2K -0.27% SP400 -0.15% SP500 +7.59 NASDAQ Dec/Adv/Vol 1592/1373/2.51 bln NYSE Dec/Adv/Vol 1809/1460/1.77 bln
3:35 pm : The major indices are trading in a very tight range near the unchanged mark as we head into the final half-hour of the trading week.
Rounding off the top three gainers this week include the home furnishings (+10.3%), health care facilities (+8.6%) and electronic equipment manufacturers (+8.1%) groups. The main laggards were thrifts & mortgages (-10.0%), diversified metals & mining (-8.5%) and gold (-8.2%).
Next week, minutes from the Federal Open Market Committee's Oct. 31 meeting are scheduled for release Tuesday. The minutes will draw considerable attention from market watchers looking for further insight on the committee's recent decision to cut the fed funds rate 25 basis points to 4.50%. DJ30 -10.00 NASDAQ +1.67 SP500 -0.83 NASDAQ Dec/Adv/Vol 1832/1123/2.02 bln NYSE Dec/Adv/Vol 2077/1179/1.31 bln
3:05 pm : After hovering slightly below the unchanged mark, a recent increase in broad-based buying interest has pushed the indices back to the unchanged mark. The breadth of the market is somewhat bearish. The ratio of advancers to decliners at the NYSE is 0.6, while the Nasdaq Composite comes in at 0.55.
The financial sector (-1.3%) continues to be a drag on the market. The thrifts & mortgages group (-3.0%) is showing the most weakness.DJ30 -4.23 NASDAQ +2.72 SP500 -0.74 NASDAQ Dec/Adv/Vol 1883/1033/1.81 bln NYSE Dec/Adv/Vol 2025/1222/1.16 bln
2:30 pm : The stock market continues its choppy run, as the major indices slip, and are now trading in mixed fashion. There was not a specific news item for the selling interest, and it has been a broad-based decline.
Investors will be keeping a close eye on how the market trades heading into the close, as the last two trading sessions had sharp, and broad-based late-day sell-offs.
Regarding commodities, the CRB Index is up 0.81%, with the energy group (+2.0%) showing the most strength. Meanwhile the dollar has weakened 0.37% against world currencies.DJ30 -6.42 NASDAQ +5.96 SP500 +0.32 NASDAQ Dec/Adv/Vol 1827/1087/1.68 bln NYSE Dec/Adv/Vol 1993/1226/1.06 bln
2:00 pm : The major indices continue to trade modestly above the unchanged mark. There has not been much market moving news in the last hour.
Shares of GPS maker Garmin (GRMN 98.43, +14.43) are trading sharply higher after the company announced this morning that it has extended its agreement with digital map maker NAVTEQ (NVT 76.39, -0.29) and no longer intends to pursue its offer for Tele Atlas. In addition, Garmin was upgraded to Buy from Sell at Merrill Lynch.DJ30 +39.42 NASDAQ +8.13 SP500 +5.03 NASDAQ Dec/Adv/Vol 1632/1265/1.54 bln NYSE Dec/Adv/Vol 1857/1342/976 mln
1:30 pm : Since the last update, the stock market has held to a relatively tight range.
Shares of Starbucks (SBX 22.41, -1.69) are getting clipped after the company reported earnings that met estimates, but lowered its fiscal 2008 earnings guidance. Specifically, Starbucks expects to open approximately 2,500 net new stores on a global basis (former target was 2,600), comparable store sales growth in the range of 3%-5% (former guidance was 3%-7%), total net revenue growth of approximately 17%-18% (prior view said approximately 18%), and diluted EPS growth of 17%-21% (prior guidance was approximately 20%-22%).
Many consumers may be hooked on Starbucks coffee, but the market clearly isn't hooked on its stock which, including this session's losses, is down 39% year-to-date.DJ30 +32.12 NASDAQ +5.97 SP500 +4.05 NASDAQ Dec/Adv/Vol 1637/1238/1.43 bln NYSE Dec/Adv/Vol 1868/1324/921 mln
1:00 pm : The major indices are sliding off their recently reached intraday highs as broad-based selling picks up, but they are still holding onto modest gains. Trading has been choppy this session.
Following the recent trend, the small-cap Russel 2000 Index is trailing behind its large-cap counterparts. Also, the S&P 500 Mid-Cap Index is showing weakness
Meanwhile, Dow Jones reports that the CEO of YRC Worldwide (YRC 17.74, -2.37) sees the same weak trucking trends as FedEx (FDX 97.00, -4.43).DJ30 +47.23 NASDAQ +5.94 R2K -0.5% SP400 -0.5% SP500 +3.61 NASDAQ Dec/Adv/Vol 1526/1345/1.33 bln NYSE Dec/Adv/Vol 1717/1443/847 mln
12:30 pm : The equity market extends its gains, hitting fresh intraday highs. The tech sector (+1.0%) is the main factor in the turnaround.
Microsoft (MSFT 34.12, 0.36) and Yahoo (YHOO 26.44, +1.02) are fueling the tech sector rally after a pre-market posting on Henry Blodget's Silicon Alley Insider blog that discusses the possibility of Microsoft buying Yahoo makes its rounds to trading desks. The blog implies that in order for Microsoft to meet its lofty goals of increasing online search and ad share it would have to buy Yahoo.
DJ30 +71.37 NASDAQ +11.72 SP500 +6.83 NASDAQ Dec/Adv/Vol 1430/1410/1.21 bln NYSE Dec/Adv/Vol 1726/1418/782 mln
12:05 pm : After opening in positive territory, the major indices have traded in a choppy manner throughout the session. At the East Coast lunch hour, a recent surge in buying interest, led by a turnaround in the tech sector (+1.0%), has pushed the indices modestly below their opening highs.
Cisco (CSCO 30.00, +0.70) is pacing the tech sector's advance after it authorized up to $10 billion in additional stock repurchases, bringing its total amount authorized to $62 billion.
The credit market continues to be an area of concern for investors. This morning, Bloomberg.com reported that Goldman Sachs (GS 226.25, -0.77) sees the slump in global credit markets forcing banks, brokerages and hedge funds to cut lending by $2 trillion, triggering the risk of a "substantial recession.''
In addition, Fannie Mae (FNM 41.53, -1.51) held a conference call to answer credit questions after Fortune reported that the lender may be "camouflaging" credit losses. The market did not like what it heard, as the stock plummeted 10% shortly after the call, but has since pared the majority of its losses. The stock declined roughly 10% yesterday.
Meanwhile, Fed Governor Kroszner suggested further rate cuts would raise inflation risk.
As was the case yesterday, the financial sector (-0.8%) is the main laggard.
A sell-off in transport stocks led the industrial sector 0.5% lower. FedEx (FDX 97.07, -4.30) triggered the selling in transports after citing an inability for its dynamic fuel surcharges to keep pace with rapidly rising fuel prices and continued weakness in less-than-truckload freight trends. FedEx reduced its EPS guidance for its fiscal second quarter ending November 30 and for its full fiscal year.
Adding to the woes of industrial stocks, a Federal Reserve release showed that industrial production fell 0.5% in October, compared to the expectation of a 0.1% rise. For what it is worth, though, FedEx said there are economic signs that the decline in U.S. industrial production has hit bottom.
The energy sector (+1.7%) is providing leadership as it rises in conjunction with crude oil prices, up 1.6% to $94.92 per barrel. Contracts for December delivery expire today. The Deutsche Bank upgrade of several oil companies is also aiding in the sector's outperformance. DJ30 +31.38 DJTA -1.7% NASDAQ +10.09 SP500 +3.87 NASDAQ Dec/Adv/Vol 1749/1059/1.06 bln NYSE Dec/Adv/Vol 1986/1127/689 mln
11:30 am : Choppy action continues, as the stock market is back on the decline after briefly trading in positive territory. The major indices, though, remain off their intraday lows. Investors are wavering this morning, as uncertainty regarding the credit market continues.DJ30 -7.32 NASDAQ -6.79 SP500 -2.87 NASDAQ Dec/Adv/Vol 1690/1045/899 mln NYSE Dec/Adv/Vol 1832/1233/596 mln
11:00 am : Selling pressure has eased, for now, as the major indices inch toward the unchanged mark. Five of the ten economic sectors are now in the red.
There is a notable pocket of weakness in the S&P 500 Retailing Index (-1.2%). Target (TGT 53.66, -1.21) is the main drag after it was downgraded to Neutral from Buy at UBS. The firm based its decision on on the likelihood of decelerating transmission growth in 2008, as well as its view that the current valuation appropriately reflects the company's expansion prospects.DJ30 -3.50 NASDAQ -9.04 SP500 -1.71 NASDAQ Dec/Adv/Vol 1839/847/732 mln NYSE Dec/Adv/Vol 2069/960/471 mln
10:30 am : After a bit of choppiness, the stock market is back on the decline as it pushes into its worst levels of the session.
Credit worries continue to affect the equity market. This morning, Bloomberg.com reported that Goldman Sachs (GS 227.23, +0.16) sees the slump in global credit markets forcing banks, brokerages and hedge funds to cut lending by $2 trillion, triggering the risk of a "substantial recession.''
In addition, Fannie Mae (FNM 38.72, -4.32) is holding a conference call to discuss its accounting. Clearly the market does not like what it is hearing, as the stock is down 10% this session, which follows its roughly 10% decline yesterday.DJ30 -21.84 NASDAQ -18.71 SP500 -12.93 NASDAQ Dec/Adv/Vol 1752/834/536 mln NYSE Dec/Adv/Vol 2018/932/381 mln
10:00 am : The major indices are off their opening highs as the Nasdaq Composite slips into negative territory. Three of the ten sectors are in the red. The influential financial sector (-0.6%) is the main laggard.
The energy sector (+1.2%) is providing leadership as it benefits from rising crude prices and a number of energy stock upgrades at Deutsche Bank.
FedEx (FDX) lowered its earnings guidance for the second quarter and FY07, citing higher fuel costs. Its CFO said, "Since we provided earnings guidance for the second quarter in September, our fuel costs have increased more than 8%, or $85 million." The news has been a drag on logistic (-2.5%), and trucking (-3.5%) stocks. DJ30 +37.71 NASDAQ -8.79 SP500 +1.52
09:40 am : As futures indicated, the stock market rebounds following yesterday's late day sell-off. Gains in the major indices, though, are modest.
Cisco (CSCO) is supporting the positive start after it authorized up to $10 billion in additional stock repurchases, bringing its total amount authorized to $62 billion.
Meanwhile, crude oil is up 2.0% to $95.26. The contract for December delivery expires today. DJ30 +67.71 NASDAQ +7.13 SP500 +7.02
09:17 am : S&P futures vs fair value: +6.7. Nasdaq futures vs fair value: +16.0. Futures take a slight dip. Industrial production decreased 0.5% compared to the expected rise of 0.1%.
09:00 am : S&P futures vs fair value: +9.5. Nasdaq futures vs fair value: +19.5. Early indications continue to suggest a positive opening. A barrel of crude for December delivery is up 1.1% to $94.43. Federal Reserve Governor Randall Kroszner said oil prices may put 'upward pressure' on inflation. He also reiterated that “the downside risks to economic growth now appear to be roughly balanced by the upside risks to inflation.”
08:31 am : S&P futures vs fair value: +7.7. Nasdaq futures vs fair value: +14.3. Nasdaq futures gain a few points after Cisco (CSCO) announced its board authorized up to $10 bln in additional repurchases of its common stock.
08:00 am : S&P futures vs fair value: +7.9. Nasdaq futures vs fair value: +8.8. The futures market indicates that stocks are poised for a rebound following yesterday’s late-day sell-off. Both Starbucks (SBUX) and Kohl's (KSS) managed to meet, or beat, earnings expectations for the third quarter, but then sounded warnings for the current period. The October Industrial Production report is slated to be released at 9:15 ET. Economists expect a modest 0.1% gain.
06:16 am : S&P futures vs fair value: +2.3. Nasdaq futures vs fair value: -0.3.
06:15 am : FTSE...6313.30...-46.30...-0.7%. DAX...7594.92...-72.11...-0.9%.
06:15 am : Nikkei...15154.61...-241.69...-1.6%. Hang Seng...27614.43...-1136.78...-4%.
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