AI
Wednesday, November 21, 2007 5:52:34 PM
Market Update 071120 (Last Hour Sell-off)
http://biz.yahoo.com/mu/update.html
4:10 pm : The stock market headed into the Thanksgiving holiday on a low note, as investors sold equities and bought bonds in a flight to quality on Wednesday.
The risk aversion trade is apparent in the yen's strength and the rally in U.S. Treasuries where the yield on the 10-year note dropped below 4.00% for the first time since 2005, before finishing the day at 4.01%.
There is also a concern among investors about holding long positions going into the Thanksgiving holiday, which played a role in the selling pressure.
A late-day recovery effort was staged, but the Dow and S&P ran into resistance at their intraday peaks, and eventually finished the day at their intraday lows. The Nasdaq, for its part, weathered the late-day selling efforts better, to finish well above its intraday lows.
Weakness was broad-based with all ten of the major economic sectors ending the day in the red. The beleaguered financial sector (-2.2%) finished the day as the main laggard, as it had yesterday.
Strikingly, the S&P 500 Retailing Index (-0.3%) and consumer discretionary sector (-1.0%) outperformed on a relative basis in the wake of several disappointing earnings reports from retailers this morning.
There were a few economic releases of note on Wednesday.
New claims for unemployment for the week ended Nov. 30 fell to 330,000 from 341,000 the week before. That is almost exactly in line with the four week moving average of 329,750. The news won't attract much market attention, but it does serve as a reminder that businesses are not acting in recessionary fashion.
October Leading Indicators fell to -0.5%, compared to last month's reading of 0.3%. Economists expected the reading to come in at -0.3%. The Leading Indicators report is, for the most part, a compendium of previously announced economic indicators. There was a slight increase in selling pressure immediately following the report.
The November University of Michigan Consumer Sentiment Index was revised to 76.1 from 75.0. The revision was mostly ignored by the stock market.
In commodity trading, crude oil hit a new all-time high of $99.29 per barrel overnight, but subsequently declined into negative territory ahead of the government's weekly inventory stats. Crude inventories showed a draw of 1.07 million against expectations for a build of 750,000. Despite the bullish report, crude oil traded in a volatile manner finishing the day down 0.9% to $97.20.
In observance of the Thanksgiving holiday, all U.S. markets are closed on Thursday (11/22). On Friday (11/23) the stock market and bond market reopen for a shortened day, closing at 13:00 ET. DJ30 -211.10 NASDAQ -34.66 SP500 -22.93 NASDAQ Dec/Adv/Vol 2082/903/1.94 bln NYSE Dec/Adv/Vol 2245/1023/1.35 bln
3:30 pm : The Nasdaq made it back to the unchanged mark, but a renewed wave of selling pressure pushes the major indices lower.
All ten economic sectors are back in the red, however, the S&P 500 Retailing Index is showing some resilience (+0.3%) considering it was down as much as 1.7% at its lows. Target (TGT 53.89, +2.20) is showing the most strength, which follows yesterday's decline after the company reported disappointing earnings.
The breadth of the market is bearish. Decliners outpace advancers 2-to-1 on the NYSE, while the Nasdaq clocks in at 1.5-to-1.
The U.S. markets are closed tomorrow in observance of the Thanksgiving holiday. They will reopen for a shortened day on Friday.DJ30 -141.36 NASDAQ -21.28 SP500 -15.14 NASDAQ Dec/Adv/Vol 1947/1006/1.68 bln NYSE Dec/Adv/Vol 2037/1225/1.20 bln
3:00 pm : The major indices continue to drift upward and are well above their session lows. Strikingly, the tech sector (+0.1%) is now in the green as the tech-heavy Nasdaq trades at its best levels of the session. No sector is posting a loss larger than 0.8%.
In commodity trading, the CRB Index is down 0.28%. The industrial (-0.7%) group is the weakest, while grains (1.2%) is showing the most strength. In currency trading, the Dollar Index has slipped 0.21%DJ30 -66.16 NASDAQ -3.60 SP500 -6.09 NASDAQ Dec/Adv/Vol 1871/1064/1.51 bln NYSE Dec/Adv/Vol 2174/1081/1.08 bln
2:30 pm : For the past half-hour, the major indices have been slowly drifting upward. Market-moving news has been light in afternoon trading.
Agricultural equipment manufacturer Deere (DE 153.39, +8.39) is a standout today after handily topping earnings expectations.
Deere's ability to continually surpass expectations despite its exposure to a depressed U.S. housing market underscores the strength in the global agricultural market. Deere's farm equipment sales continue to climb in a booming Brazilian market and will continue to outweigh the construction and consumer segments. Briefing.com expects the agricultural business will dominate revenues and earnings as it did in the fourth quarter, with EPS topping consensus by a whopping $0.34 on 21% revenue growth. DJ30 -113.22 NASDAQ -17.21 SP500 -12.39 NASDAQ Dec/Adv/Vol 1914/1010/1.40 bln NYSE Dec/Adv/Vol 2253/1002/1.01 bln
2:00 pm : For now, selling interest has faded, but buying interest has not picked up either as the indices head mostly sideways. All ten sectors remain in the red, but financials (-1.5%) and tech (-0.8%) have managed to shave a large portion of their intraday losses.
The small-cap Russell 2000 Index is outperforming its large-cap counterparts. Lately, the Russell 2000 has been lagging behind the S&P 500, and is down roughly 4.9% year-to-date.DJ30 -121.79 NASDAQ -19.52 R2K -0.6%% SP500 -13.27 NASDAQ Dec/Adv/Vol 1897/1020/1.30 bln NYSE Dec/Adv/Vol 2271/970/930 mln
1:30 pm : Recovery efforts have faded, as the major indices are back on the retreat. The stock market, however, is still trading well above its intraday low.
20 of the 30 Dow components are trading lower. AIG (AIG 52.24, -2.20 ) American Express (AXP 55.62, -1.38) and Merck (MRK 56.94, -0.98 ) are the main laggards. General Motors (GM 27.32, +1.03), which was a laggard earlier in the session, is now providing leadership following the positive report regarding its obligation to GMAC.
DJ30 -108.68 NASDAQ -19.55 SP500 -13.21 NASDAQ Dec/Adv/Vol 1.20 bln/1791/1095 NYSE Dec/Adv/Vol 2233/1000/814 mln
1:00 pm : A nice pickup in buying interest in financials (-0.6%) and tech (-0.5%) has lifted the major indices to their best levels of the session, although they are still in the red. The Nasdaq Composite, for its part, has pared roughly 40 points from its lowest levels of the session.
Meanwhile, General Motors (GM 27.09, +0.80) is providing a lift to the Dow, after it trades up roughly $1.50 following a Bloomberg article that states GM has "no further obligation" to fund GMAC.
Insurance company Aon (AON 47.04, +0.27) is outperforming this session. According to the AP, Aon was upgraded to Buy from Hold at Stifel in response to the company's strong earnings report.DJ30 -67.22 NASDAQ -12.62 SP500 -6.89 NASDAQ Dec/Adv/Vol 1929/935/1.07 bln NYSE Dec/Adv/Vol 2491/734/726 mln
12:30 pm : The stock market is slipping, but remains above its session lows. Sentiment has been negative today, as the indices have held in negative territory throughout the session.
The Amex Airline Index (+0.4%) has had a striking turnaround after being down as much as 4.2% this session. The slip in oil prices has aided the intraday recovery of airline stocks, led by Alaska Air Group (ALK 22.66, +0.66).
On a related note, the Dow Jones Transportation Average has pared a large portion of its session losses.DJ30 -143.47 DJTA -0.8% NASDAQ -34.86 SP500 -17.56 NASDAQ Dec/Adv/Vol 1980/860/958 mln NYSE Dec/Adv/Vol 2402/806/648 mln
12:00 pm : The stock market has had a negative bias throughout the session as investors sell equities and flock to safe-havens. Currently, the major indices are off their worst levels, but continue to trade with substantial losses.
The risk aversion trade is apparent in the yen's strength and the rally in U.S. Treasuries where the yield on the 10-year note dropped below 4.00% for the first time since 2005, before backing up a bit.
There is also a concern among investors about holding long positions going into the Thanksgiving holiday, which is playing a role in the selling pressure. Weakness is broad-based with all ten of the major economic sectors in the red.
The financial sector (-1.9%), like yesterday, is this session's laggard. AIG (AIG 51.38, -3.06) is the main drag on the sector after Lehman Brothers said investors should brace for more write-downs from the company. Meanwhile, the S&P 500 Retailing Index (-1.0%) is showing weakness as a number of retailers reported earnings that fell short of consensus estimates.
The defensive oriented consumer staples (-0.1%) and utilities (-0.2%) sectors are outperforming on a relative basis.
There are a couple of economic releases of note this session.
New claims for unemployment for the week ended November 30 fell to 330,000 from 341,000 the week before. That is almost exactly in line with the four week moving average of 329,750. The news won't attract much market attention, but it does serve as a reminder that businesses are not acting in recessionary fashion.
October Leading Indicators fell to -0.5%, compared to last month's reading of 0.3%. Economists expected the reading to come in at -0.3%. There was a slight increase in selling pressure immediately following the report.
Separately, the weekly Dept. of Energy report showed that crude stockpiles had a draw of 1.07 million barrels when a build of 750,000 was expected. Crude has traded in a volatile manner following the release, and is currently down 0.7% to $97.38. In electronic trading before the open, crude oil hit an all-time high of $99.29 a barrel.
As a reminder, due to the Thanksgiving holiday, the bond market closes early at 13:00 ET this session, while the stock market remains open for the full day. On Thursday (11/22) all U.S. markets are closed and on Friday (11/23) the stock market and bond market close early at 13:00 ET. DJ30 -126.72 NASDAQ -32.88 SP500 -15.57 NASDAQ Dec/Adv/Vol 2058/751/842 mln NYSE Dec/Adv/Vol 2495/687/554 mln
11:30 am : The major indices are off their lows, but are still posting substantial losses. The under-performance of the heavily-weighted financial (-2.6%), tech (-1.6%), and consumer discretionary (-1.5%) sectors are a major drag on the overall market. Combined, the sectors make up roughly 35% of the S&P 500.
Crude oil continues its choppy run, as it hits new lows. A barrel is now down 1.3% to $96.77.DJ30 -136.97 NASDAQ -39.83 SP500 -18.59 NASDAQ Dec/Adv/Vol 2170/620/620 NYSE Dec/Adv/Vol 2582/559/454 mln
11:05 am : The major indices fall to their worst levels of the session following a draw in crude oil inventories when a build was expected. Of note, the Dow has dipped below its August low of 12,845. Also, at current levels, the S&P 500 is in the red year-to-date.
Once again, the financial sector (-2.8%) is the main laggard, as it was yesterday. All of its industry groups are in the red, with multi-line insurance (-4.9%) showing the most weakness.
Crude oil has traded in a volatile manner following the report. Currently a barrel of crude for January delivery is down 0.2% to $97.89, which is about 0.4% higher than its pre-data release price.DJ30 -184.85 NASDAQ -46.71 SP500 -22.38 NASDAQ Dec/Adv/Vol 2083/654/556 mln NYSE Dec/Adv/Vol 2529/556/344 mln
10:30 am : The stock market is trading near its intraday lows, as it has been unable to maintain any upward momentum. The defensive oriented consumer staples sector (+0.1%) is now in positive territory. Within the sector, the soft drinks group (+1.3%) is showing strength due to buying interest in Pepsico (PEP 75.58, +0.69) and Coca-Cola (KO 62.97, +0.18)
The weekly inventory report from the Dept. of Energy just hit the wires. Analysts had been expecting a crude oil inventory build of 750,000 barrels, but it was reported stockpiles actually fell by 1.07 million barrels. Just prior to the release, a barrel of crude was trading down 0.6% to $97.39.DJ30 -111.61 NASDAQ -27.19 SP500 -14.18 NASDAQ Dec/Adv/Vol 1901/702/366 mln NYSE Dec/Adv/Vol 2320/617/165 mln
10:05 am : The major indices are back on the decline following a brief recovery effort. Weakness is broad-based with the financial sector (-1.6%), materials (-1.2%), and consumer discretionary (-1.1%) sectors lagging. The only sector managing to eke out a gain is utilities (+0.1%).
Just reported, the Conference Board Leading Indicators report for October came in at -0.5%, compared to last month's reading of 0.3%. Economists expected the reading to come in at -0.3%. Stocks dip a bit immediately following the release.
Lehman Brothers notes that AIG (AIG 52.81, -1.63) is holding an investor day on December 5 to discuss its exposure to the U.S. residential mortgage market. Based on continued deterioration in the U.S. residential mortgage market, Lehman believes investors should brace for more write-downs perhaps over and above what AIG has already communicated to investors.DJ30 -124.94 NASDAQ -27.80 SP500 -14.46
09:40 am : The stock market opens on a negative note as it was unable to maintain the momentum from Tuesday's late-day rally. News has been relatively light this morning, but there are a few reasons for the negative bias in the early-going.
There is a risk aversion trade that is apparent in the yen's strength and the rally in U.S. Treasuries where the yield on the 10-year note dropped below 4.00% before backing up to its current 4.01% level.
Record oil prices, losses in the foreign markets and several retailers coming up short of consensus estimates and a concern among investors about holding long positions going in the Thanksgiving holiday are playing a role in the negative bias.
Due to the holiday, the bond market will close at 13:00 ET today, while the stock market is open for the full day. On Thursday (11/22) all U.S. markets are closed and on Friday (11/23) the bond and stock markets close at 13:00 ET.
DJ30 -130.97 NASDAQ -29.54 SP500 -15.10
09:15 am : S&P futures vs fair value: -12.4. Nasdaq futures vs fair value: -24.3.
09:00 am : S&P futures vs fair value: -11.0. Nasdaq futures vs fair value: -24.0. Negative bias persists in pre-market trading, but futures are off their worst levels of the session. Oil prices hit an all-time high of $99.29 a barrel in electronic trading, but have since eased a bit to $98.73. The government's weekly energy report is set for release at 10:30 ET.
08:33 am : S&P futures vs fair value: -15.3. Nasdaq futures vs fair value: -25.5. Futures reaction to the jobless claims report is relatively limited, as it was in-line with expectations. Initial jobless claims for the week ended 11/17 fell to 330K, compared the prior week’s reading of 341K.
08:00 am : S&P futures vs fair value: -15.3. Nasdaq futures vs fair value: -25.3. Early indications suggest a negative open. A risk aversion trade, record oil prices, losses in the foreign markets and several retailers coming up short of consensus estimates are playing a role in the negative bias.
06:53 am : S&P futures vs fair value: -13.3. Nasdaq futures vs fair value: -19.8.
06:51 am : S&P futures vs fair value: flat. Nasdaq futures vs fair value: flat.
06:49 am : S&P futures vs fair value: flat. Nasdaq futures vs fair value: flat.
06:48 am : FTSE...6137.30...-89.20...-1.4%. DAX...7498.46...-131.85...-1.7%.
06:48 am : Nikkei...14837.66...-373.86...-2.5%. Hang Seng...26618.19...-1153.02...-4.2%.
http://biz.yahoo.com/mu/update.html
4:10 pm : The stock market headed into the Thanksgiving holiday on a low note, as investors sold equities and bought bonds in a flight to quality on Wednesday.
The risk aversion trade is apparent in the yen's strength and the rally in U.S. Treasuries where the yield on the 10-year note dropped below 4.00% for the first time since 2005, before finishing the day at 4.01%.
There is also a concern among investors about holding long positions going into the Thanksgiving holiday, which played a role in the selling pressure.
A late-day recovery effort was staged, but the Dow and S&P ran into resistance at their intraday peaks, and eventually finished the day at their intraday lows. The Nasdaq, for its part, weathered the late-day selling efforts better, to finish well above its intraday lows.
Weakness was broad-based with all ten of the major economic sectors ending the day in the red. The beleaguered financial sector (-2.2%) finished the day as the main laggard, as it had yesterday.
Strikingly, the S&P 500 Retailing Index (-0.3%) and consumer discretionary sector (-1.0%) outperformed on a relative basis in the wake of several disappointing earnings reports from retailers this morning.
There were a few economic releases of note on Wednesday.
New claims for unemployment for the week ended Nov. 30 fell to 330,000 from 341,000 the week before. That is almost exactly in line with the four week moving average of 329,750. The news won't attract much market attention, but it does serve as a reminder that businesses are not acting in recessionary fashion.
October Leading Indicators fell to -0.5%, compared to last month's reading of 0.3%. Economists expected the reading to come in at -0.3%. The Leading Indicators report is, for the most part, a compendium of previously announced economic indicators. There was a slight increase in selling pressure immediately following the report.
The November University of Michigan Consumer Sentiment Index was revised to 76.1 from 75.0. The revision was mostly ignored by the stock market.
In commodity trading, crude oil hit a new all-time high of $99.29 per barrel overnight, but subsequently declined into negative territory ahead of the government's weekly inventory stats. Crude inventories showed a draw of 1.07 million against expectations for a build of 750,000. Despite the bullish report, crude oil traded in a volatile manner finishing the day down 0.9% to $97.20.
In observance of the Thanksgiving holiday, all U.S. markets are closed on Thursday (11/22). On Friday (11/23) the stock market and bond market reopen for a shortened day, closing at 13:00 ET. DJ30 -211.10 NASDAQ -34.66 SP500 -22.93 NASDAQ Dec/Adv/Vol 2082/903/1.94 bln NYSE Dec/Adv/Vol 2245/1023/1.35 bln
3:30 pm : The Nasdaq made it back to the unchanged mark, but a renewed wave of selling pressure pushes the major indices lower.
All ten economic sectors are back in the red, however, the S&P 500 Retailing Index is showing some resilience (+0.3%) considering it was down as much as 1.7% at its lows. Target (TGT 53.89, +2.20) is showing the most strength, which follows yesterday's decline after the company reported disappointing earnings.
The breadth of the market is bearish. Decliners outpace advancers 2-to-1 on the NYSE, while the Nasdaq clocks in at 1.5-to-1.
The U.S. markets are closed tomorrow in observance of the Thanksgiving holiday. They will reopen for a shortened day on Friday.DJ30 -141.36 NASDAQ -21.28 SP500 -15.14 NASDAQ Dec/Adv/Vol 1947/1006/1.68 bln NYSE Dec/Adv/Vol 2037/1225/1.20 bln
3:00 pm : The major indices continue to drift upward and are well above their session lows. Strikingly, the tech sector (+0.1%) is now in the green as the tech-heavy Nasdaq trades at its best levels of the session. No sector is posting a loss larger than 0.8%.
In commodity trading, the CRB Index is down 0.28%. The industrial (-0.7%) group is the weakest, while grains (1.2%) is showing the most strength. In currency trading, the Dollar Index has slipped 0.21%DJ30 -66.16 NASDAQ -3.60 SP500 -6.09 NASDAQ Dec/Adv/Vol 1871/1064/1.51 bln NYSE Dec/Adv/Vol 2174/1081/1.08 bln
2:30 pm : For the past half-hour, the major indices have been slowly drifting upward. Market-moving news has been light in afternoon trading.
Agricultural equipment manufacturer Deere (DE 153.39, +8.39) is a standout today after handily topping earnings expectations.
Deere's ability to continually surpass expectations despite its exposure to a depressed U.S. housing market underscores the strength in the global agricultural market. Deere's farm equipment sales continue to climb in a booming Brazilian market and will continue to outweigh the construction and consumer segments. Briefing.com expects the agricultural business will dominate revenues and earnings as it did in the fourth quarter, with EPS topping consensus by a whopping $0.34 on 21% revenue growth. DJ30 -113.22 NASDAQ -17.21 SP500 -12.39 NASDAQ Dec/Adv/Vol 1914/1010/1.40 bln NYSE Dec/Adv/Vol 2253/1002/1.01 bln
2:00 pm : For now, selling interest has faded, but buying interest has not picked up either as the indices head mostly sideways. All ten sectors remain in the red, but financials (-1.5%) and tech (-0.8%) have managed to shave a large portion of their intraday losses.
The small-cap Russell 2000 Index is outperforming its large-cap counterparts. Lately, the Russell 2000 has been lagging behind the S&P 500, and is down roughly 4.9% year-to-date.DJ30 -121.79 NASDAQ -19.52 R2K -0.6%% SP500 -13.27 NASDAQ Dec/Adv/Vol 1897/1020/1.30 bln NYSE Dec/Adv/Vol 2271/970/930 mln
1:30 pm : Recovery efforts have faded, as the major indices are back on the retreat. The stock market, however, is still trading well above its intraday low.
20 of the 30 Dow components are trading lower. AIG (AIG 52.24, -2.20 ) American Express (AXP 55.62, -1.38) and Merck (MRK 56.94, -0.98 ) are the main laggards. General Motors (GM 27.32, +1.03), which was a laggard earlier in the session, is now providing leadership following the positive report regarding its obligation to GMAC.
DJ30 -108.68 NASDAQ -19.55 SP500 -13.21 NASDAQ Dec/Adv/Vol 1.20 bln/1791/1095 NYSE Dec/Adv/Vol 2233/1000/814 mln
1:00 pm : A nice pickup in buying interest in financials (-0.6%) and tech (-0.5%) has lifted the major indices to their best levels of the session, although they are still in the red. The Nasdaq Composite, for its part, has pared roughly 40 points from its lowest levels of the session.
Meanwhile, General Motors (GM 27.09, +0.80) is providing a lift to the Dow, after it trades up roughly $1.50 following a Bloomberg article that states GM has "no further obligation" to fund GMAC.
Insurance company Aon (AON 47.04, +0.27) is outperforming this session. According to the AP, Aon was upgraded to Buy from Hold at Stifel in response to the company's strong earnings report.DJ30 -67.22 NASDAQ -12.62 SP500 -6.89 NASDAQ Dec/Adv/Vol 1929/935/1.07 bln NYSE Dec/Adv/Vol 2491/734/726 mln
12:30 pm : The stock market is slipping, but remains above its session lows. Sentiment has been negative today, as the indices have held in negative territory throughout the session.
The Amex Airline Index (+0.4%) has had a striking turnaround after being down as much as 4.2% this session. The slip in oil prices has aided the intraday recovery of airline stocks, led by Alaska Air Group (ALK 22.66, +0.66).
On a related note, the Dow Jones Transportation Average has pared a large portion of its session losses.DJ30 -143.47 DJTA -0.8% NASDAQ -34.86 SP500 -17.56 NASDAQ Dec/Adv/Vol 1980/860/958 mln NYSE Dec/Adv/Vol 2402/806/648 mln
12:00 pm : The stock market has had a negative bias throughout the session as investors sell equities and flock to safe-havens. Currently, the major indices are off their worst levels, but continue to trade with substantial losses.
The risk aversion trade is apparent in the yen's strength and the rally in U.S. Treasuries where the yield on the 10-year note dropped below 4.00% for the first time since 2005, before backing up a bit.
There is also a concern among investors about holding long positions going into the Thanksgiving holiday, which is playing a role in the selling pressure. Weakness is broad-based with all ten of the major economic sectors in the red.
The financial sector (-1.9%), like yesterday, is this session's laggard. AIG (AIG 51.38, -3.06) is the main drag on the sector after Lehman Brothers said investors should brace for more write-downs from the company. Meanwhile, the S&P 500 Retailing Index (-1.0%) is showing weakness as a number of retailers reported earnings that fell short of consensus estimates.
The defensive oriented consumer staples (-0.1%) and utilities (-0.2%) sectors are outperforming on a relative basis.
There are a couple of economic releases of note this session.
New claims for unemployment for the week ended November 30 fell to 330,000 from 341,000 the week before. That is almost exactly in line with the four week moving average of 329,750. The news won't attract much market attention, but it does serve as a reminder that businesses are not acting in recessionary fashion.
October Leading Indicators fell to -0.5%, compared to last month's reading of 0.3%. Economists expected the reading to come in at -0.3%. There was a slight increase in selling pressure immediately following the report.
Separately, the weekly Dept. of Energy report showed that crude stockpiles had a draw of 1.07 million barrels when a build of 750,000 was expected. Crude has traded in a volatile manner following the release, and is currently down 0.7% to $97.38. In electronic trading before the open, crude oil hit an all-time high of $99.29 a barrel.
As a reminder, due to the Thanksgiving holiday, the bond market closes early at 13:00 ET this session, while the stock market remains open for the full day. On Thursday (11/22) all U.S. markets are closed and on Friday (11/23) the stock market and bond market close early at 13:00 ET. DJ30 -126.72 NASDAQ -32.88 SP500 -15.57 NASDAQ Dec/Adv/Vol 2058/751/842 mln NYSE Dec/Adv/Vol 2495/687/554 mln
11:30 am : The major indices are off their lows, but are still posting substantial losses. The under-performance of the heavily-weighted financial (-2.6%), tech (-1.6%), and consumer discretionary (-1.5%) sectors are a major drag on the overall market. Combined, the sectors make up roughly 35% of the S&P 500.
Crude oil continues its choppy run, as it hits new lows. A barrel is now down 1.3% to $96.77.DJ30 -136.97 NASDAQ -39.83 SP500 -18.59 NASDAQ Dec/Adv/Vol 2170/620/620 NYSE Dec/Adv/Vol 2582/559/454 mln
11:05 am : The major indices fall to their worst levels of the session following a draw in crude oil inventories when a build was expected. Of note, the Dow has dipped below its August low of 12,845. Also, at current levels, the S&P 500 is in the red year-to-date.
Once again, the financial sector (-2.8%) is the main laggard, as it was yesterday. All of its industry groups are in the red, with multi-line insurance (-4.9%) showing the most weakness.
Crude oil has traded in a volatile manner following the report. Currently a barrel of crude for January delivery is down 0.2% to $97.89, which is about 0.4% higher than its pre-data release price.DJ30 -184.85 NASDAQ -46.71 SP500 -22.38 NASDAQ Dec/Adv/Vol 2083/654/556 mln NYSE Dec/Adv/Vol 2529/556/344 mln
10:30 am : The stock market is trading near its intraday lows, as it has been unable to maintain any upward momentum. The defensive oriented consumer staples sector (+0.1%) is now in positive territory. Within the sector, the soft drinks group (+1.3%) is showing strength due to buying interest in Pepsico (PEP 75.58, +0.69) and Coca-Cola (KO 62.97, +0.18)
The weekly inventory report from the Dept. of Energy just hit the wires. Analysts had been expecting a crude oil inventory build of 750,000 barrels, but it was reported stockpiles actually fell by 1.07 million barrels. Just prior to the release, a barrel of crude was trading down 0.6% to $97.39.DJ30 -111.61 NASDAQ -27.19 SP500 -14.18 NASDAQ Dec/Adv/Vol 1901/702/366 mln NYSE Dec/Adv/Vol 2320/617/165 mln
10:05 am : The major indices are back on the decline following a brief recovery effort. Weakness is broad-based with the financial sector (-1.6%), materials (-1.2%), and consumer discretionary (-1.1%) sectors lagging. The only sector managing to eke out a gain is utilities (+0.1%).
Just reported, the Conference Board Leading Indicators report for October came in at -0.5%, compared to last month's reading of 0.3%. Economists expected the reading to come in at -0.3%. Stocks dip a bit immediately following the release.
Lehman Brothers notes that AIG (AIG 52.81, -1.63) is holding an investor day on December 5 to discuss its exposure to the U.S. residential mortgage market. Based on continued deterioration in the U.S. residential mortgage market, Lehman believes investors should brace for more write-downs perhaps over and above what AIG has already communicated to investors.DJ30 -124.94 NASDAQ -27.80 SP500 -14.46
09:40 am : The stock market opens on a negative note as it was unable to maintain the momentum from Tuesday's late-day rally. News has been relatively light this morning, but there are a few reasons for the negative bias in the early-going.
There is a risk aversion trade that is apparent in the yen's strength and the rally in U.S. Treasuries where the yield on the 10-year note dropped below 4.00% before backing up to its current 4.01% level.
Record oil prices, losses in the foreign markets and several retailers coming up short of consensus estimates and a concern among investors about holding long positions going in the Thanksgiving holiday are playing a role in the negative bias.
Due to the holiday, the bond market will close at 13:00 ET today, while the stock market is open for the full day. On Thursday (11/22) all U.S. markets are closed and on Friday (11/23) the bond and stock markets close at 13:00 ET.
DJ30 -130.97 NASDAQ -29.54 SP500 -15.10
09:15 am : S&P futures vs fair value: -12.4. Nasdaq futures vs fair value: -24.3.
09:00 am : S&P futures vs fair value: -11.0. Nasdaq futures vs fair value: -24.0. Negative bias persists in pre-market trading, but futures are off their worst levels of the session. Oil prices hit an all-time high of $99.29 a barrel in electronic trading, but have since eased a bit to $98.73. The government's weekly energy report is set for release at 10:30 ET.
08:33 am : S&P futures vs fair value: -15.3. Nasdaq futures vs fair value: -25.5. Futures reaction to the jobless claims report is relatively limited, as it was in-line with expectations. Initial jobless claims for the week ended 11/17 fell to 330K, compared the prior week’s reading of 341K.
08:00 am : S&P futures vs fair value: -15.3. Nasdaq futures vs fair value: -25.3. Early indications suggest a negative open. A risk aversion trade, record oil prices, losses in the foreign markets and several retailers coming up short of consensus estimates are playing a role in the negative bias.
06:53 am : S&P futures vs fair value: -13.3. Nasdaq futures vs fair value: -19.8.
06:51 am : S&P futures vs fair value: flat. Nasdaq futures vs fair value: flat.
06:49 am : S&P futures vs fair value: flat. Nasdaq futures vs fair value: flat.
06:48 am : FTSE...6137.30...-89.20...-1.4%. DAX...7498.46...-131.85...-1.7%.
06:48 am : Nikkei...14837.66...-373.86...-2.5%. Hang Seng...26618.19...-1153.02...-4.2%.
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