AI
Monday, December 03, 2007 10:24:53 PM
Market Update 071203
http://biz.yahoo.com/mu/update.html
4:25 pm : On Monday, stocks kicked off the month of December on a negative note, finishing near their worst levels of the session. Stocks traded in positive territory for a decent portion of the day following a White House official's comments, but momentum eventually fizzled as the major indices fell back into the red. A bit of a pullback is not surprising, considering the S&P surged 40.88 points (2.8%) last week.
Treasury Secretary Henry Paulson said he hoped the plan to provide relief for homeowners with subprime mortgages will be ready by the end of the week. He noted that the Treasury is working with the mortgage industry to give suitable borrowers sustainable home loans. The Wall Street Journal previously reported that the plan involves temporarily freezing interest rates on certain subprime loans that would be at increased risk of default following a reset in the low teaser rates.
In corporate news, homebuilder Lennar Corp. (LEN 16.74, +0.90) and Morgan Stanley Real Estate, an affiliate of Morgan Stanley (MS 52.28, -0.44), announced an investment joint venture to acquire, develop, manage and sell residential real estate. Concurrently, Lennar, which is reeling from a slowdown in the U.S. housing market, agreed to sell the venture a diversified portfolio of land valued at $1.3 billion for $525 million. This in itself isn't a big deal, but it could reflect a trend in which capital is attracted to the housing market wreck.
Shares of Lennar opened lower, but quickly recovered. The homebuilding group (+2.5%) had the largest gain today, as investors warmed up to news of the deal.
Shares of Activision (ATVI 24.97, +2.82) soared almost 13% on news that Vivendi SA has agreed to acquire a controlling stake in the company, and combine the company with its Vivendi Games unit. Activision shareholders will receive $27.50 per share, which is a 24% premium to Friday's closing price.
Berkshire Hathaway (BRK.A 143,200.00, +3,100.00) is purchasing $2.1 billion in junk bonds from power producer TXU Corp.'s $3.9 billion offering. Berkshire's participation in the offering should not be mistaken as a signal the bottom of the debt market has been reached. The purchase is pertinent only to Berkshire and TXU and does not reflect financial conditions across the entire market.
U.S. automakers were under pressure today. General Motors (GM 28.61, -1.22) reported North American auto sales of -11% versus -3.6% Street expectations. Meanwhile, Ford Motor Company (F 7.25, -0.26 ) reported November North American auto sales of +0.4% versus -3.4% Street expectations.
On the economic front, the November ISM Index, a national survey of purchasing managers, came in at 50.8, which is basically unchanged from the previous month and in-line with expectations. A number above 50 is intended to reflect growth. Stocks traded in a choppy manner following the announcement.
Seven of the ten major sectors finished in the red, with financials ( 1.2%) pacing the decline. The defensive oriented utilities sector ( +0.7%) provided leadership. DJ30 -57.15 NASDAQ -23.83 SP500 -8.72 NASDAQ Dec/Adv/Vol 2003/1018/2.01 bln NYSE Dec/Adv/Vol 1929/1350/1.33 bln
3:35 pm : Heading into the final half-hour of trading, the major indices continue to trade in a tight range in negative territory. San Francisco Federal Reserve President Janet Yellen says financial condition and weak data since October have highlighted downside risks.
Decliners outpace advancers on the NYSE by a 19-to-13 edge. The Nasdaq Composite comes in at a slightly larger 18-to-11 edge.
Meanwhile crude oil continues to trade higher. Crude for January delivery is now up 1.4% to $89.04.DJ30 -37.31 NASDAQ -14.30 SP500 -6.59 NASDAQ Dec/Adv/Vol 1916/1086/1.60 bln NYSE Dec/Adv/Vol 1947/1315/975 mln
3:00 pm : The stock market is off its lows, but continues to trade with modest losses. The energy sector is now in the green, as it rises in conjunction with crude oil prices.
Shares of E*Trade (ETFC 4.11, -0.49) have been pummeled today after being downgraded to Sell from Neutral at Banc of America this morning. Its price target was also cut to $2 from $9. Banc of America says it no longer believe the value of E*Trade's retail brokerage business, a dwindling asset (which has lost 17% of assets already), can offset negative value at the bank.DJ30 -34.06 NASDAQ -12.88 SP500 -6.60 NASDAQ Dec/Adv/Vol 1873/1106/1.45 bln NYSE Dec/Adv/Vol 1924/1321/869 mln
2:35 pm : The major indices headed sideways for most of the past half-hour, but a recent surge in selling pressure has pushed the major indices to their worst levels of the session.
Crude oil has been trading in a choppy manner. Shortly after the last update crude oil fell back into the red, but has since rebounded into the green. A barrel of crude (+0.7% to $89.32) for January delivery is trading near its best levels of the session. According to a Bloomberg survey, 10 of 18 analysts expect OPEC will leave oil output unchanged at their Dec. 5 meeting.
DJ30 -56.17 NASDAQ -15.70 SP500 -9.09 NASDAQ Dec/Adv/Vol 1829/1148/1.34 bln NYSE Dec/Adv/Vol 1833/1415/812 mln
2:00 pm : The major indices fall near their worst levels of the session. Only the utilities sector (+0.4%) remains in the green.
General Motors (GM 28.88, -0.94) reports North American auto sales of -11% versus -3.6% Street expectations. Meanwhile, Ford Motor (F 7.35, -0.16) reports November North American auto sales of +0.4% vs. -3.4% Street expectations.
Separately, Reuters reports UAL Corp's (UAUA 39.97, -0.97) CFO says the airline industry should consolidate "sooner rather than later." The Amex Airline Index is extending its losses as crude oil (+0.5% to $89.20) bounces back into positive territory. DJ30 -44.95 NASDAQ -12.87 SP500 -8.65 NASDAQ Dec/Adv/Vol 1789/1167/1.19 bln NYSE Dec/Adv/Vol 1779/1451/716 mln
1:30 pm : The major indices fall into the red, although losses are only modest. Eight of the ten economic sectors are now trading in negative territory.
Shares of Research In Motion (RIMM 106.55, -7.27), the maker of Blackberry devices, are under pressure after being downgraded to Market Perform from Outperform at Morgan Keegan. The firm notes since late June, shares of RIMM have appreciated roughly 70% and now trade at a P/E of 38x for calendar 2008. Although it expects growth trends to remain strong, it believes substantial upside is necessary to drive further share price appreciation.DJ30 -23.66 NASDAQ -7.60 SP500 -6.72 NASDAQ Dec/Adv/Vol 1659/1271/1.08 bln NYSE Dec/Adv/Vol 1726/1484/665 mln
1:00 pm : Buying interest fades as the indices slip. The stock market's range has been tight this session. The indices continue to hover near the unchanged mark.
Despite the slip in oil prices, the Amex Airline Index (-0.2%) is in the red. Lehman Brothers downgraded UAL Corp. (UAUA 40.15, -0.79) to Equal-Weight from Overweight. United Airlines is a subsidiary of the Chicago-based company.
The Dow Jones Transportation Average is underperforming.DJ30 +11.79 DJTA -0.4% NASDAQ +1.42 SP500 -2.83 NASDAQ Dec/Adv/Vol 1552/1359/982 mln NYSE Dec/Adv/Vol 1571/1629/593 mln
12:30 pm : The major indices have made some slight gains, but continue to trade near the unchanged mark. The Dow is split down the middle, with 15 advancers and 15 decliners.
IBM (IBM 106.60, +1.42) is providing leadership to the Dow. IBM announced this morning that it is going to repurchase up to $1 billion worth of stock. The company said "these stock repurchases are enabled by IBM's strong, consistent cash flow and are an important way of returning value to IBM shareholders."
General Electric (GE 37.19, -1.11) is the main laggard. The AP reports that Citigroup cut its price target on shares of GE to $45 from $48, citing pressure in GE's consumer finance unit. DJ30 +24.79 NASDAQ +4.30 SP500 -1.41 NASDAQ Dec/Adv/Vol 1606/1265/887 mln NYSE Dec/Adv/Vol 1699/1472/513 mln
12:00 pm : Stocks kicked off the month of December on a sluggish note, but the major indices are currently trading in mixed fashion after getting a boost by comments made by a White House official.
Stocks managed to pare their losses as Treasury Secretary Henry Paulson outlined the plan to help homeowners with subprime mortgages. He noted that the Treasury is working with the mortgage industry to give suitable borrowers sustainable home loans. Also, he said housing troubles will take "some penalty" on growth, but the economy is sound.
In corporate news, France's Vivendi SA has agreed to acquire a controlling stake in Activision (ATVI 25.66, +3.51), and combine the company with its Vivendi Games unit, in a deal that will create the largest third-party video-game publisher and challenge market leader Electronic Arts (ERTS 55.25, -0.94). Activision shareholders will receive $27.50 per share, which is a 24% premium to Friday's closing price.
Homebuilder Lennar Corp. (LEN 16.04, +0.20) and Morgan Stanley Real Estate, an affiliate of Morgan Stanley (MS 52.38, -0.33), announced an investment joint venture to acquire, develop, manage and sell residential real estate. Concurrently, Lennar, which is reeling from a slowdown in the U.S. housing market, agreed to sell the venture a diversified portfolio of land valued at $1.3 billion for $525 million.
Berkshire Hathaway (BRK.A 142,500.00, +2,400.00) is purchasing $2.1 billion in bonds from power producer TXU Corp. TXU is issuing $3.9 billion worth of high-yield bonds to help pay down expenses associated with its acquisition by private equity outfit Kohlberg Kravis Roberts earlier this year. However, Berkshire's participation in the offering should not be mistaken as a signal the bottom of the debt market has been reached. The purchase is pertinent only to Berkshire and TXU and does not reflect financial conditions across the entire market.
On the economic front, the November ISM Index, a national survey of purchasing managers, came in at 50.8, basically unchanged from the previous month and in-line with expectations. A number above 50 is intended to reflect growth. Stocks traded in a choppy manner following the announcement.
Crude oil is down 0.9% to $87.95 ahead of OPEC's December 5 meeting. At its last meeting on September 11, OPEC agreed to increase output by 500,000 barrels a day. DJ30 +11.05 NASDAQ +2.29 SP500 -3.52 NASDAQ Dec/Adv/Vol 1630/1237/785 mln NYSE Dec/Adv/Vol 1691/1458/468 mln
11:55 am : Since the last update, the Dow and Nasdaq briefly fell back into the red, before rebounding back into the green.
Four of the ten economic sectors are now in the green. However, two of the most influential sectors, financials (-0.8%) and consumer discretionary (-1.1%) are major drags on the broader market due to their heavy weighting.
Briefing.com just experienced a short outage, we apologize for the delayed update.DJ30 +15.61 NASDAQ +3.75 SP500 -2.41 NASDAQ Dec/Adv/Vol 1622/1240/750 mln NYSE Dec/Adv/Vol 1752/1406/449 mln
11:00 am : The major indices inch higher as Treasury Secretary Henry Paulson outlines the plan to help homeowners. The Dow and Nasdaq are in the green, while the S&P trades slightly below the unchanged mark.
Paulson said that foreclosure expense is an incentive to keep homeowners in homes and that comprehensive help is needed. He noted that the Treasury is working with the mortgage industry to give suitable borrowers sustainable home loans. Also, he said housing troubles will take "some penalty" on growth, but the economy is sound. DJ30 +16.01 NASDAQ +1.87 SP500 -2.84 NASDAQ Dec/Adv/Vol 1558/1191/513 mln NYSE Dec/Adv/Vol 1859/1175/269 mln
10:30 am : The major indices trade in a choppy manner following an economic report. The stock market is off its lows, but has extended its losses in the last half hour.
Reported at the top of the hour, the November ISM Index, a national survey of purchasing managers, came in at 50.8. The reading was essentially unchanged at 50.8 for November from 50.9 for October. A level of 50.5 to 50.7 was expected. A number above 50 is intended to reflect growth.DJ30 -38.37 NASDAQ -7.74 SP500 -6.76 NASDAQ Dec/Adv/Vol 1669/1002/334 mln NYSE Dec/Adv/Vol 1745/1143/121 mln
10:00 am : Stocks remain on the defensive with eight of the ten economic sectors in negative territory.
The consumer discretionary sector (-1.6%) is pacing the way lower. The financial sector (-1.1%) is also a laggard with all of its industry groups in the red. Thrifts & mortgages (-2.8%) and multi-line insurance (-2.0%) are under the most pressure. The two sectors paced the advance on Friday.
The utilities sector (+0.8%) is providing leadership.DJ30 -28.13 NASDAQ -3.60 SP500 -4.56 NASDAQ Dec/Adv/Vol 1492/969/157 mln NYSE Dec/Adv/Vol 1675/1023/77 mln
09:40 am : As expected, the major indices open slightly lower. Losses, though, are modest compared to the S&P's 40.88 point gain last week.
Topping headlines this morning is news that Vivendi is going to merge its Vivendi Games business with Activision (ATVI), and that Lennar (LEN) is partnering with Morgan Stanley Real Estate. Berkshire Hathaway (BRK.A) is purchasing $2.1 billion in bonds from power producer TXU Corp. (TXU). DJ30 -15.21 NASDAQ -2.3 SP500 -2.3
09:16 am : S&P futures vs fair value: -2.5. Nasdaq futures vs fair value: -9.8.
09:10 am : S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -5.8. It is shaping up to be a slightly lower open for the S&P 500 and Nasdaq Composite as selling pressure picks up a bit. Crude oil has pared some of its earlier losses, and is now down 0.6% to $88.19 per barrel.
08:30 am : S&P futures vs fair value: +0.6. Nasdaq futures vs fair value: -0.3. Nasdaq futures now suggest flat opening after shedding a few points. Boston Fed President Rosengren sees growth "well below potential" for next 2 quarters, but will gradually improve next year. Shares of E*Trade (ETFC) are roughly 15% lower in pre-market trading. Banc of America downgraded the company to Sell from Neutral and lowered its price target to $2 from $9.
08:00 am : S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: +2.8. Early indications suggest a slightly higher open. Continued momentum from last week's rally, a continued downtrend in oil prices (-1.1% to $87.70), and an $18.9 billion technology deal are among the factors keeping sellers at bay. Vivendi has signed a definitive agreement to merge its Vivendi Games business with Activision (ATVI). Through a series of transactions, Vivendi will end up owning 52% of the new company that will be called Activision Blizzard.
06:30 am : S&P futures vs fair value: -0.8. Nasdaq futures vs fair value: +0.3.
06:30 am : FTSE...6410.30...-22.20...-0.3%. DAX...7866.31...-4.21...-0.1%.
06:30 am : Nikkei...15628.97...-51.70...-0.3%. Hang Seng...28658.42...+14.81...+0.1%.
http://biz.yahoo.com/mu/update.html
4:25 pm : On Monday, stocks kicked off the month of December on a negative note, finishing near their worst levels of the session. Stocks traded in positive territory for a decent portion of the day following a White House official's comments, but momentum eventually fizzled as the major indices fell back into the red. A bit of a pullback is not surprising, considering the S&P surged 40.88 points (2.8%) last week.
Treasury Secretary Henry Paulson said he hoped the plan to provide relief for homeowners with subprime mortgages will be ready by the end of the week. He noted that the Treasury is working with the mortgage industry to give suitable borrowers sustainable home loans. The Wall Street Journal previously reported that the plan involves temporarily freezing interest rates on certain subprime loans that would be at increased risk of default following a reset in the low teaser rates.
In corporate news, homebuilder Lennar Corp. (LEN 16.74, +0.90) and Morgan Stanley Real Estate, an affiliate of Morgan Stanley (MS 52.28, -0.44), announced an investment joint venture to acquire, develop, manage and sell residential real estate. Concurrently, Lennar, which is reeling from a slowdown in the U.S. housing market, agreed to sell the venture a diversified portfolio of land valued at $1.3 billion for $525 million. This in itself isn't a big deal, but it could reflect a trend in which capital is attracted to the housing market wreck.
Shares of Lennar opened lower, but quickly recovered. The homebuilding group (+2.5%) had the largest gain today, as investors warmed up to news of the deal.
Shares of Activision (ATVI 24.97, +2.82) soared almost 13% on news that Vivendi SA has agreed to acquire a controlling stake in the company, and combine the company with its Vivendi Games unit. Activision shareholders will receive $27.50 per share, which is a 24% premium to Friday's closing price.
Berkshire Hathaway (BRK.A 143,200.00, +3,100.00) is purchasing $2.1 billion in junk bonds from power producer TXU Corp.'s $3.9 billion offering. Berkshire's participation in the offering should not be mistaken as a signal the bottom of the debt market has been reached. The purchase is pertinent only to Berkshire and TXU and does not reflect financial conditions across the entire market.
U.S. automakers were under pressure today. General Motors (GM 28.61, -1.22) reported North American auto sales of -11% versus -3.6% Street expectations. Meanwhile, Ford Motor Company (F 7.25, -0.26 ) reported November North American auto sales of +0.4% versus -3.4% Street expectations.
On the economic front, the November ISM Index, a national survey of purchasing managers, came in at 50.8, which is basically unchanged from the previous month and in-line with expectations. A number above 50 is intended to reflect growth. Stocks traded in a choppy manner following the announcement.
Seven of the ten major sectors finished in the red, with financials ( 1.2%) pacing the decline. The defensive oriented utilities sector ( +0.7%) provided leadership. DJ30 -57.15 NASDAQ -23.83 SP500 -8.72 NASDAQ Dec/Adv/Vol 2003/1018/2.01 bln NYSE Dec/Adv/Vol 1929/1350/1.33 bln
3:35 pm : Heading into the final half-hour of trading, the major indices continue to trade in a tight range in negative territory. San Francisco Federal Reserve President Janet Yellen says financial condition and weak data since October have highlighted downside risks.
Decliners outpace advancers on the NYSE by a 19-to-13 edge. The Nasdaq Composite comes in at a slightly larger 18-to-11 edge.
Meanwhile crude oil continues to trade higher. Crude for January delivery is now up 1.4% to $89.04.DJ30 -37.31 NASDAQ -14.30 SP500 -6.59 NASDAQ Dec/Adv/Vol 1916/1086/1.60 bln NYSE Dec/Adv/Vol 1947/1315/975 mln
3:00 pm : The stock market is off its lows, but continues to trade with modest losses. The energy sector is now in the green, as it rises in conjunction with crude oil prices.
Shares of E*Trade (ETFC 4.11, -0.49) have been pummeled today after being downgraded to Sell from Neutral at Banc of America this morning. Its price target was also cut to $2 from $9. Banc of America says it no longer believe the value of E*Trade's retail brokerage business, a dwindling asset (which has lost 17% of assets already), can offset negative value at the bank.DJ30 -34.06 NASDAQ -12.88 SP500 -6.60 NASDAQ Dec/Adv/Vol 1873/1106/1.45 bln NYSE Dec/Adv/Vol 1924/1321/869 mln
2:35 pm : The major indices headed sideways for most of the past half-hour, but a recent surge in selling pressure has pushed the major indices to their worst levels of the session.
Crude oil has been trading in a choppy manner. Shortly after the last update crude oil fell back into the red, but has since rebounded into the green. A barrel of crude (+0.7% to $89.32) for January delivery is trading near its best levels of the session. According to a Bloomberg survey, 10 of 18 analysts expect OPEC will leave oil output unchanged at their Dec. 5 meeting.
DJ30 -56.17 NASDAQ -15.70 SP500 -9.09 NASDAQ Dec/Adv/Vol 1829/1148/1.34 bln NYSE Dec/Adv/Vol 1833/1415/812 mln
2:00 pm : The major indices fall near their worst levels of the session. Only the utilities sector (+0.4%) remains in the green.
General Motors (GM 28.88, -0.94) reports North American auto sales of -11% versus -3.6% Street expectations. Meanwhile, Ford Motor (F 7.35, -0.16) reports November North American auto sales of +0.4% vs. -3.4% Street expectations.
Separately, Reuters reports UAL Corp's (UAUA 39.97, -0.97) CFO says the airline industry should consolidate "sooner rather than later." The Amex Airline Index is extending its losses as crude oil (+0.5% to $89.20) bounces back into positive territory. DJ30 -44.95 NASDAQ -12.87 SP500 -8.65 NASDAQ Dec/Adv/Vol 1789/1167/1.19 bln NYSE Dec/Adv/Vol 1779/1451/716 mln
1:30 pm : The major indices fall into the red, although losses are only modest. Eight of the ten economic sectors are now trading in negative territory.
Shares of Research In Motion (RIMM 106.55, -7.27), the maker of Blackberry devices, are under pressure after being downgraded to Market Perform from Outperform at Morgan Keegan. The firm notes since late June, shares of RIMM have appreciated roughly 70% and now trade at a P/E of 38x for calendar 2008. Although it expects growth trends to remain strong, it believes substantial upside is necessary to drive further share price appreciation.DJ30 -23.66 NASDAQ -7.60 SP500 -6.72 NASDAQ Dec/Adv/Vol 1659/1271/1.08 bln NYSE Dec/Adv/Vol 1726/1484/665 mln
1:00 pm : Buying interest fades as the indices slip. The stock market's range has been tight this session. The indices continue to hover near the unchanged mark.
Despite the slip in oil prices, the Amex Airline Index (-0.2%) is in the red. Lehman Brothers downgraded UAL Corp. (UAUA 40.15, -0.79) to Equal-Weight from Overweight. United Airlines is a subsidiary of the Chicago-based company.
The Dow Jones Transportation Average is underperforming.DJ30 +11.79 DJTA -0.4% NASDAQ +1.42 SP500 -2.83 NASDAQ Dec/Adv/Vol 1552/1359/982 mln NYSE Dec/Adv/Vol 1571/1629/593 mln
12:30 pm : The major indices have made some slight gains, but continue to trade near the unchanged mark. The Dow is split down the middle, with 15 advancers and 15 decliners.
IBM (IBM 106.60, +1.42) is providing leadership to the Dow. IBM announced this morning that it is going to repurchase up to $1 billion worth of stock. The company said "these stock repurchases are enabled by IBM's strong, consistent cash flow and are an important way of returning value to IBM shareholders."
General Electric (GE 37.19, -1.11) is the main laggard. The AP reports that Citigroup cut its price target on shares of GE to $45 from $48, citing pressure in GE's consumer finance unit. DJ30 +24.79 NASDAQ +4.30 SP500 -1.41 NASDAQ Dec/Adv/Vol 1606/1265/887 mln NYSE Dec/Adv/Vol 1699/1472/513 mln
12:00 pm : Stocks kicked off the month of December on a sluggish note, but the major indices are currently trading in mixed fashion after getting a boost by comments made by a White House official.
Stocks managed to pare their losses as Treasury Secretary Henry Paulson outlined the plan to help homeowners with subprime mortgages. He noted that the Treasury is working with the mortgage industry to give suitable borrowers sustainable home loans. Also, he said housing troubles will take "some penalty" on growth, but the economy is sound.
In corporate news, France's Vivendi SA has agreed to acquire a controlling stake in Activision (ATVI 25.66, +3.51), and combine the company with its Vivendi Games unit, in a deal that will create the largest third-party video-game publisher and challenge market leader Electronic Arts (ERTS 55.25, -0.94). Activision shareholders will receive $27.50 per share, which is a 24% premium to Friday's closing price.
Homebuilder Lennar Corp. (LEN 16.04, +0.20) and Morgan Stanley Real Estate, an affiliate of Morgan Stanley (MS 52.38, -0.33), announced an investment joint venture to acquire, develop, manage and sell residential real estate. Concurrently, Lennar, which is reeling from a slowdown in the U.S. housing market, agreed to sell the venture a diversified portfolio of land valued at $1.3 billion for $525 million.
Berkshire Hathaway (BRK.A 142,500.00, +2,400.00) is purchasing $2.1 billion in bonds from power producer TXU Corp. TXU is issuing $3.9 billion worth of high-yield bonds to help pay down expenses associated with its acquisition by private equity outfit Kohlberg Kravis Roberts earlier this year. However, Berkshire's participation in the offering should not be mistaken as a signal the bottom of the debt market has been reached. The purchase is pertinent only to Berkshire and TXU and does not reflect financial conditions across the entire market.
On the economic front, the November ISM Index, a national survey of purchasing managers, came in at 50.8, basically unchanged from the previous month and in-line with expectations. A number above 50 is intended to reflect growth. Stocks traded in a choppy manner following the announcement.
Crude oil is down 0.9% to $87.95 ahead of OPEC's December 5 meeting. At its last meeting on September 11, OPEC agreed to increase output by 500,000 barrels a day. DJ30 +11.05 NASDAQ +2.29 SP500 -3.52 NASDAQ Dec/Adv/Vol 1630/1237/785 mln NYSE Dec/Adv/Vol 1691/1458/468 mln
11:55 am : Since the last update, the Dow and Nasdaq briefly fell back into the red, before rebounding back into the green.
Four of the ten economic sectors are now in the green. However, two of the most influential sectors, financials (-0.8%) and consumer discretionary (-1.1%) are major drags on the broader market due to their heavy weighting.
Briefing.com just experienced a short outage, we apologize for the delayed update.DJ30 +15.61 NASDAQ +3.75 SP500 -2.41 NASDAQ Dec/Adv/Vol 1622/1240/750 mln NYSE Dec/Adv/Vol 1752/1406/449 mln
11:00 am : The major indices inch higher as Treasury Secretary Henry Paulson outlines the plan to help homeowners. The Dow and Nasdaq are in the green, while the S&P trades slightly below the unchanged mark.
Paulson said that foreclosure expense is an incentive to keep homeowners in homes and that comprehensive help is needed. He noted that the Treasury is working with the mortgage industry to give suitable borrowers sustainable home loans. Also, he said housing troubles will take "some penalty" on growth, but the economy is sound. DJ30 +16.01 NASDAQ +1.87 SP500 -2.84 NASDAQ Dec/Adv/Vol 1558/1191/513 mln NYSE Dec/Adv/Vol 1859/1175/269 mln
10:30 am : The major indices trade in a choppy manner following an economic report. The stock market is off its lows, but has extended its losses in the last half hour.
Reported at the top of the hour, the November ISM Index, a national survey of purchasing managers, came in at 50.8. The reading was essentially unchanged at 50.8 for November from 50.9 for October. A level of 50.5 to 50.7 was expected. A number above 50 is intended to reflect growth.DJ30 -38.37 NASDAQ -7.74 SP500 -6.76 NASDAQ Dec/Adv/Vol 1669/1002/334 mln NYSE Dec/Adv/Vol 1745/1143/121 mln
10:00 am : Stocks remain on the defensive with eight of the ten economic sectors in negative territory.
The consumer discretionary sector (-1.6%) is pacing the way lower. The financial sector (-1.1%) is also a laggard with all of its industry groups in the red. Thrifts & mortgages (-2.8%) and multi-line insurance (-2.0%) are under the most pressure. The two sectors paced the advance on Friday.
The utilities sector (+0.8%) is providing leadership.DJ30 -28.13 NASDAQ -3.60 SP500 -4.56 NASDAQ Dec/Adv/Vol 1492/969/157 mln NYSE Dec/Adv/Vol 1675/1023/77 mln
09:40 am : As expected, the major indices open slightly lower. Losses, though, are modest compared to the S&P's 40.88 point gain last week.
Topping headlines this morning is news that Vivendi is going to merge its Vivendi Games business with Activision (ATVI), and that Lennar (LEN) is partnering with Morgan Stanley Real Estate. Berkshire Hathaway (BRK.A) is purchasing $2.1 billion in bonds from power producer TXU Corp. (TXU). DJ30 -15.21 NASDAQ -2.3 SP500 -2.3
09:16 am : S&P futures vs fair value: -2.5. Nasdaq futures vs fair value: -9.8.
09:10 am : S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -5.8. It is shaping up to be a slightly lower open for the S&P 500 and Nasdaq Composite as selling pressure picks up a bit. Crude oil has pared some of its earlier losses, and is now down 0.6% to $88.19 per barrel.
08:30 am : S&P futures vs fair value: +0.6. Nasdaq futures vs fair value: -0.3. Nasdaq futures now suggest flat opening after shedding a few points. Boston Fed President Rosengren sees growth "well below potential" for next 2 quarters, but will gradually improve next year. Shares of E*Trade (ETFC) are roughly 15% lower in pre-market trading. Banc of America downgraded the company to Sell from Neutral and lowered its price target to $2 from $9.
08:00 am : S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: +2.8. Early indications suggest a slightly higher open. Continued momentum from last week's rally, a continued downtrend in oil prices (-1.1% to $87.70), and an $18.9 billion technology deal are among the factors keeping sellers at bay. Vivendi has signed a definitive agreement to merge its Vivendi Games business with Activision (ATVI). Through a series of transactions, Vivendi will end up owning 52% of the new company that will be called Activision Blizzard.
06:30 am : S&P futures vs fair value: -0.8. Nasdaq futures vs fair value: +0.3.
06:30 am : FTSE...6410.30...-22.20...-0.3%. DAX...7866.31...-4.21...-0.1%.
06:30 am : Nikkei...15628.97...-51.70...-0.3%. Hang Seng...28658.42...+14.81...+0.1%.
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