AI
Tuesday, January 08, 2008 6:54:43 PM
Market Update 080108
http://biz.yahoo.com/mu/update.html
4:10 pm : It was another whipsaw day of trading on Tuesday, and its ending did not please the bulls. The stock market closed with a large loss, at its session lows, on renewed credit and economic concerns.
Stocks started the day modestly higher and drifted upward until renewed credit concerns sent the market sharply lower.
Several factors, all hitting the wires around the same time, fueled the credit concerns. Playing a large role was an unsubstantiated rumor that Countrywide (CFC 5.57, -2.07) is preparing to file bankruptcy as soon as this week, according to Bloomberg.com.
Meanwhile, bond insurers got hit after reports indicated Morgan Stanley cut its bond insurers profit outlook. MBIA (MBI 13.46, -4.16) and Ambac (ABK 19.59, -3.89) shed 22% and 17% respectively.
Moody's downgraded 46 Bear Stearns (BSC 71.32, -4.93) tranches backed by Alt-A Mortgage loans. Moody's also placed National City's (NCC 14.25, -0.94) credit rating under review for possible downgrade.
Stocks then rebounded into positive territory after Countrywide denied the bankruptcy rumors. The positive sentiment was short-lived, however, as statements from AT&T (T 39.13, -1.90) brought economic concerns back to the forefront.
AT&T's CEO said the company is disconnecting more home phone and broadband Internet customers for failing to pay their bills, according to Bloomberg.com. The CEO said the company is experiencing "softness" in its broadband and phone line businesses due to slowing economic growth. The news sent the company's shares and the overall stock market sharply lower.
Nine of the ten sectors finished in negative territory. Telecom (-4.8%) was the main laggard, due to comments made by AT&T's CEO. Financials (-3.7%) were also a laggard.
Healthcare (+0.8%) was the sole sector to finish with a gain. The sector is typically considered a safe-haven during an economic downturn.
In commodity trading, crude oil (+1.1% to $96.15) rebounded following its steep decline yesterday. Gold (+2.1% to $880.20) surpassed its all-time high of $873 that was reached in 1980. DJ30 -238.42 NASDAQ -58.95 NQ100 -2.4% R2K -2.3% SP400 -2.6% SP500 -26.00 NASDAQ Dec/Adv/Vol 2133/894/2.59 bln NYSE Dec/Adv/Vol 1974/1177/+1.60 bln
3:30 pm : The stock market continues to decline as we head into the final half-hour of trade. The comments made by AT&T's (T 38.07, -2.96) CEO fueled broad-based selling pressure.
AT&T's CEO said the company is disconnecting more home phone and broadband Internet customers for failing to pay their bills, according to Bloomberg.com. Traders are fearful that this may be a sign of recession. The telecom sector is currently down 6.7%, after being down more than 7%. It was in positive territory prior to the report.
Only three sectors remain in the green, and all are considered defensive. Financials are now down 3%.DJ30 -164.16 NASDAQ -35.06 SP500 -16.78 NASDAQ Dec/Adv/Vol 1931/1070/1.97 bln NYSE Dec/Adv/Vol 1542/1589/1.20 bln
3:00 pm : Stocks drop in quick fashion after Bloomberg reports that AT&T's (T 39.18, -1.85) CEO said the company is experiencing "softness" in its broadband and phone line businesses. Verizon (VZ 42.16, -0.76) is also under pressure on the news. The telecom sector is now the main laggard, shedding 4.4%.
The major indices hit fresh intraday lows on the news, with the Dow underperforming as both AT&T and Verizon are Dow components.DJ30 -95.03 NASDAQ -15.62 SP500 -7.94 NASDAQ Dec/Adv/Vol 1490/1467/1.73 bln NYSE Dec/Adv/Vol 1221/1891/+1.1 bln
2:35 pm : Stocks continue to climb higher, as strength in healthcare (+2.4%) helps lift the market. Financials (-1.1%) have pared a good portion of their losses, but continue to trade more than 1% lower.
Grocery store operator Supervalu Inc. (SVU 29.36, -4.93) reported today third quarter 2008 earnings, which surpassed Wall Street's expectations, but the company also lowered its full-year earnings outlook. Shares are sharply lower in today's trade on the earnings report and news that Credit Suisse downgraded the company to Neutral from Outperform, citing the disappointing outlook.
DJ30 +36.58 NASDAQ +18.68 SP500 +7.76 NASDAQ Dec/Adv/Vol 1491/1460/1.59 bln NYSE Dec/Adv/Vol 1402/1711/1.02 bln
2:00 pm : Stocks continue to trade with modest gains, but remain well off their session highs. Eight of the ten sectors are in positive territory, but the underperformance of the financial sector (-1.6%) is holding back the overall stock market. The financial sector makes up roughly 18% of the S&P 500.
Gold closed the day higher by $18 to $880.00 per ounce. It reached an all-time intraday high of $884.DJ30 +20.13 NASDAQ +8.59 SP500 +5.26 NASDAQ Dec/Adv/Vol 1622/1322/1.45 bln NYSE Dec/Adv/Vol 1458/1641/931 mln
1:30 pm : Financial stocks pare some of their losses in choppy trading after Countrywide (CFC 6.80, -0.84 ) said there is no substance to the rumor that it is planning to file for bankruptcy protection, according to Reuters. The company also said it is not aware of any basis for the rumor that its credit rating will get cut. Its stock was briefly halted for trading.
The major indices are back in the green, although gains are slight.DJ30 +12.35 NASDAQ +7.15 SP500 +3.29 NASDAQ Dec/Adv/Vol 1546/1373/1.34 bln NYSE Dec/Adv/Vol 1450/1634/850 mln
1:00 pm : The stock market's recovery efforts are being hindered by the financial sector (-2.3%) which continues to post substantial losses.
The small-cap Russell 2000 Index was outperforming its large-cap counterparts earlier in the day, but is now underperforming after renewed credit concerns took a toll. Mid-cap stocks are also underperforming.DJ30 -41.38 NASDAQ -1.65 R2K -0.6% SP400 -0.5% SP500 -0.23 NASDAQ Dec/Adv/Vol 1598/1303/1.19 bln NYSE Dec/Adv/Vol 1429/1634/722 mln
12:30 pm : Selling pressure eases as the major indices bounce of their lows. The Nasdaq and S&P are trading near the flat line, while the Dow trails with slight losses.
The steep decline in Countrywide (CFC 6.46, -1.18) was reportedly due to unsubstantiated rumors that the company will file for bankruptcy this week, according to Bloomberg.com. Bloomberg.com notes Countrywide's stock dropped the most since Oct. 1987.
Meanwhile shares of bond insurer Ambac (ABK 19.33, -4.15) and MBIA (MBI 15.17, -2.45) are getting pummeled on reports Morgan Stanley cut its bond insurer profit outlook, according to Marketwatch.com. In addition, Bloomberg.com reports that Ambac now has to worry about municipal bonds as well.DJ30 -25.53 NASDAQ +0.70 SP500 -0.01 NASDAQ Dec/Adv/Vol 1569/1295/1.08 bln NYSE Dec/Adv/Vol 1521/1524/653 mln
12:00 pm : The stock market opened on a high note, and was posting a gain of 1% at its peak, but renewed credit concerns quickly sent the stock market into negative territory.
In regard to the credit concerns, several headlines attributed to the selling pressure in financials. 1) Moody's downgraded 46 Bear Stearns tranches backed by Alt-A Mortgage loans. 2) Moody's has placed National City's (NCC 14.47, -0.72) credit rating under review for a possible downgrade. 3) Several troubled CDOs are liquidating over $5 billion in distressed securities this week, according to Reuters.
Several U.S. monetary officials made appearances this morning.
Treasury Secretary Paulson said there are no signs that the housing market problems are easing and, if anything, signs are pointing to a further downturn. He expects to see a period of slower growth.
Philadelphia Fed President Plosser said policy decisions are more difficult because recent data suggest inflation is more broad-based and that slow growth can not be relied on to reduce inflation. He noted that he is open to further rate cuts, but has not yet made up his mind.
Boston Fed President Rosengren said if forecasts are correct, the U.S. will have the longest housing investment decline in 50 years. Housing stocks (-5.2%) came under pressure following this statement.
In corporate news, Starbucks (SBUX 20.16, +1.78) announced last evening its chairman, Howard Schultz, will return to the company's head as chief executive. The move is effective immediately and comes as part of a series of initiatives intended to increase shareholder value.
The Wall Street Journal reports Bear Stearns (BSC 75.03, -1.22) CEO James Cayne is stepping down in the wake of the company's subprime related losses and flagging stock price. Shares were higher on the news, but slid after reports that Moody's has downgraded the Bear Stearns tranches.
On the economic front, November pending home sales fell 2.6%, compared to the expected decline of 0.7%. The prior reading was revised up to 3.7% from a gain of 0.6%, which is offsetting some of the disappointment in November's weaker than expected sales.
Six of the ten economic sectors are posting a gain, led by healthcare (+1.1%) and utilities (+1.1%), which are typically thought as safe-havens in an economic downturn.
Heavy-weights financials (-2.2%) and tech (-0.5%) are leading the way lower.
In commodity trading, crude oil (+2.3% to $97.34) has bounced higher following its steep decline yesterday. Gold (+1.7% to $877.00) surpassed its all-time high of $873 that was reached in 1980. DJ30 -46.66 NASDAQ -7.31 SP500 -2.81 NASDAQ Dec/Adv/Vol 1477/1373/901 mln NYSE Dec/Adv/Vol 1388/1618/533 mln
11:30 am : The Dow slips into the red, and the S&P and Nasdaq fall to their worst levels of the session slightly above the unchanged mark. Selling interest has been concentrated within the financial sector (-1.3%).
Shares of Bear Sterns (BSC 74.97, -1.28) slid after news that Moody's has downgraded 46 Bear Stearns tranches backed by Alt-A Mortgage loans. Meanwhile, Countrywide's (CFC 6.68, -0.96) stock has been clipped, although it is probably due to rumors as there is not a specific news item to account for the selling interest.
Boston Fed President Rosengren said if forecasts are correct, the U.S. will have the longest housing investment decline in 50 years. Homebuilding stocks (-3.8%) came under pressure following this statement.DJ30 -10.9 NASDAQ +1.98 SP500 +3.27 NASDAQ Dec/Adv/Vol 1173/1626/735 mln NYSE Dec/Adv/Vol 863/2091/384 mln
11:00 am : Stocks remain in the green, but fall off their best levels, as financials fall to the unchanged mark and industrials (-0.3%) slip into the red.
Within the financial sector, the thrifts & mortgages (-0.7%) and property & casualty insurance (0.7%) groups are under the most selling pressure.
Meanwhile, Treasuries are under selling pressure. The 10-year note is down 13 ticks, raising its yield to 3.88%.DJ30 +26.66 NASDAQ +18.33 SP500 +9.08 NASDAQ Dec/Adv/Vol 927/1808/587 mln NYSE Dec/Adv/Vol 785/2125/321 mln
10:30 am : Stocks climbed to fresh intraday highs, and then slightly dip. The buying interest is broad-based, but there is noteable strength within the tech sector (+0.9%), which is aiding in the Nasdaq's outperformance.
Meanwhile, Philadelphia Fed President Plosser said he is open on further rate cuts, but he has not yet made up his mind. Boston Fed President Rosengren is set to speak at 10:50 ET. Rosengren was the only one that dissented at the Dec. 11 FOMC meeting, preferring a 50 basis point cut instead of the 25 basis point cut the FOMC enacted.DJ30 +48.77 NASDAQ +20.94 SP500 +10.19 NASDAQ Dec/Adv/Vol 741/1887/395 mln NYSE Dec/Adv/Vol 571/2267/198 mln
10:05 am : Stocks extend their gains with all ten economic sectors in positive territory. Just reported, November pending home sales fell 2.6%, compared to the expected decline of 0.7%. The prior reading was revised up to 3.7% from a gain of 0.6%, which is offsetting some of the disappointment in November's weaker than expected sales.
Healthcare (+1.3%), materials (+1.2%) and utilities (+1.4%) are providing leadership. Technology (+0.4%), which is down roughly 7% year-to-date, is again underperforming on a relative basis.
Crude (+1.8% to $96.82) continues to rebound from yesterday's losses, which is weighing on the Amex Airline Index (-0.6%). Gold (+1.6% to $875.50) is also posting a gain today, and hit an all-time high after breaking through the previous record of $873 that was reached in 1980.DJ30 +50.07 NASDAQ +15.68 SP500 +10.08 NASDAQ Dec/Adv/Vol 800/1606/172 mln
09:40 am : Stocks open modestly higher, although the market remains on shaky footing.
Topping headlines this morning was news that Starbucks (SBUX) announced strategic initiatives to increase shareholder value and that its Chairman will be reclaiming the CEO position. Meanwhile, The Wall Street Journal reports Bear Stearns (BSC) CEO James Cayne is stepping down in the wake of the company's subprime related losses and flagging stock price.
Futures fell off their best levels of the session after Philadelphia Fed President Plosser said policy decisions are more difficult because recent data suggest inflation is more broad-based and that slow growth can not be relied on to reduce inflation. Traders are betting there is a 36% chance of a 50 basis point rate cut despite continued inflation concerns.DJ30 +35.03 NASDAQ +3.63 SP500 +5.23
09:16 am : S&P futures vs fair value: +6.2. Nasdaq futures vs fair value: +7.3.
09:00 am : S&P futures vs fair value: +6.6. Nasdaq futures vs fair value: +9.5. Futures remain off their best levels of the session and continue to suggest a positive start.
08:31 am : S&P futures vs fair value: +7.9. Nasdaq futures vs fair value: +13.0. Stock futures shed a few points, but still point to a higher start. Philadelphia Fed President Plosser said policy decisions are more difficult as recent data suggest inflation is more broad-based and that slow growth can not be relied on to reduce inflation. He also said if the substantially weaker outlook is prolonged, further policy adjustments may be required. The will be more Fed speak for the market to process later in the day, as Boston Fed President is scheduled to speak at 10:50 ET.
08:00 am : S&P futures vs fair value: +10.5. Nasdaq futures vs fair value: +17.0. The stock market is set to start the trading day on a high note. Several factors are playing a role in the positive sentiment, including news that the Chairman of Starbucks (SBUX) is reclaiming the CEO position, reports that Bear Stearns (BSC) CEO James Cayne is stepping down and Microsoft’s (MSFT) $1.2 billion bid for Norwegian search engine Fast Search & Transfer. Crude oil (+1.7% to $96.69) has had a bit of a rebound following yesterday’s decline.
06:22 am : S&P futures vs fair value: +5.1. Nasdaq futures vs fair value: +9.8.
06:21 am : FTSE...6374.50...+38.80...+0.6%. DAX...7867.24...+50.07...+0.7%.
06:21 am : Nikkei...14528.67...+28.12...+0.2%. Hang Seng...27112.90...-66.59...-0.3%.
http://biz.yahoo.com/mu/update.html
4:10 pm : It was another whipsaw day of trading on Tuesday, and its ending did not please the bulls. The stock market closed with a large loss, at its session lows, on renewed credit and economic concerns.
Stocks started the day modestly higher and drifted upward until renewed credit concerns sent the market sharply lower.
Several factors, all hitting the wires around the same time, fueled the credit concerns. Playing a large role was an unsubstantiated rumor that Countrywide (CFC 5.57, -2.07) is preparing to file bankruptcy as soon as this week, according to Bloomberg.com.
Meanwhile, bond insurers got hit after reports indicated Morgan Stanley cut its bond insurers profit outlook. MBIA (MBI 13.46, -4.16) and Ambac (ABK 19.59, -3.89) shed 22% and 17% respectively.
Moody's downgraded 46 Bear Stearns (BSC 71.32, -4.93) tranches backed by Alt-A Mortgage loans. Moody's also placed National City's (NCC 14.25, -0.94) credit rating under review for possible downgrade.
Stocks then rebounded into positive territory after Countrywide denied the bankruptcy rumors. The positive sentiment was short-lived, however, as statements from AT&T (T 39.13, -1.90) brought economic concerns back to the forefront.
AT&T's CEO said the company is disconnecting more home phone and broadband Internet customers for failing to pay their bills, according to Bloomberg.com. The CEO said the company is experiencing "softness" in its broadband and phone line businesses due to slowing economic growth. The news sent the company's shares and the overall stock market sharply lower.
Nine of the ten sectors finished in negative territory. Telecom (-4.8%) was the main laggard, due to comments made by AT&T's CEO. Financials (-3.7%) were also a laggard.
Healthcare (+0.8%) was the sole sector to finish with a gain. The sector is typically considered a safe-haven during an economic downturn.
In commodity trading, crude oil (+1.1% to $96.15) rebounded following its steep decline yesterday. Gold (+2.1% to $880.20) surpassed its all-time high of $873 that was reached in 1980. DJ30 -238.42 NASDAQ -58.95 NQ100 -2.4% R2K -2.3% SP400 -2.6% SP500 -26.00 NASDAQ Dec/Adv/Vol 2133/894/2.59 bln NYSE Dec/Adv/Vol 1974/1177/+1.60 bln
3:30 pm : The stock market continues to decline as we head into the final half-hour of trade. The comments made by AT&T's (T 38.07, -2.96) CEO fueled broad-based selling pressure.
AT&T's CEO said the company is disconnecting more home phone and broadband Internet customers for failing to pay their bills, according to Bloomberg.com. Traders are fearful that this may be a sign of recession. The telecom sector is currently down 6.7%, after being down more than 7%. It was in positive territory prior to the report.
Only three sectors remain in the green, and all are considered defensive. Financials are now down 3%.DJ30 -164.16 NASDAQ -35.06 SP500 -16.78 NASDAQ Dec/Adv/Vol 1931/1070/1.97 bln NYSE Dec/Adv/Vol 1542/1589/1.20 bln
3:00 pm : Stocks drop in quick fashion after Bloomberg reports that AT&T's (T 39.18, -1.85) CEO said the company is experiencing "softness" in its broadband and phone line businesses. Verizon (VZ 42.16, -0.76) is also under pressure on the news. The telecom sector is now the main laggard, shedding 4.4%.
The major indices hit fresh intraday lows on the news, with the Dow underperforming as both AT&T and Verizon are Dow components.DJ30 -95.03 NASDAQ -15.62 SP500 -7.94 NASDAQ Dec/Adv/Vol 1490/1467/1.73 bln NYSE Dec/Adv/Vol 1221/1891/+1.1 bln
2:35 pm : Stocks continue to climb higher, as strength in healthcare (+2.4%) helps lift the market. Financials (-1.1%) have pared a good portion of their losses, but continue to trade more than 1% lower.
Grocery store operator Supervalu Inc. (SVU 29.36, -4.93) reported today third quarter 2008 earnings, which surpassed Wall Street's expectations, but the company also lowered its full-year earnings outlook. Shares are sharply lower in today's trade on the earnings report and news that Credit Suisse downgraded the company to Neutral from Outperform, citing the disappointing outlook.
DJ30 +36.58 NASDAQ +18.68 SP500 +7.76 NASDAQ Dec/Adv/Vol 1491/1460/1.59 bln NYSE Dec/Adv/Vol 1402/1711/1.02 bln
2:00 pm : Stocks continue to trade with modest gains, but remain well off their session highs. Eight of the ten sectors are in positive territory, but the underperformance of the financial sector (-1.6%) is holding back the overall stock market. The financial sector makes up roughly 18% of the S&P 500.
Gold closed the day higher by $18 to $880.00 per ounce. It reached an all-time intraday high of $884.DJ30 +20.13 NASDAQ +8.59 SP500 +5.26 NASDAQ Dec/Adv/Vol 1622/1322/1.45 bln NYSE Dec/Adv/Vol 1458/1641/931 mln
1:30 pm : Financial stocks pare some of their losses in choppy trading after Countrywide (CFC 6.80, -0.84 ) said there is no substance to the rumor that it is planning to file for bankruptcy protection, according to Reuters. The company also said it is not aware of any basis for the rumor that its credit rating will get cut. Its stock was briefly halted for trading.
The major indices are back in the green, although gains are slight.DJ30 +12.35 NASDAQ +7.15 SP500 +3.29 NASDAQ Dec/Adv/Vol 1546/1373/1.34 bln NYSE Dec/Adv/Vol 1450/1634/850 mln
1:00 pm : The stock market's recovery efforts are being hindered by the financial sector (-2.3%) which continues to post substantial losses.
The small-cap Russell 2000 Index was outperforming its large-cap counterparts earlier in the day, but is now underperforming after renewed credit concerns took a toll. Mid-cap stocks are also underperforming.DJ30 -41.38 NASDAQ -1.65 R2K -0.6% SP400 -0.5% SP500 -0.23 NASDAQ Dec/Adv/Vol 1598/1303/1.19 bln NYSE Dec/Adv/Vol 1429/1634/722 mln
12:30 pm : Selling pressure eases as the major indices bounce of their lows. The Nasdaq and S&P are trading near the flat line, while the Dow trails with slight losses.
The steep decline in Countrywide (CFC 6.46, -1.18) was reportedly due to unsubstantiated rumors that the company will file for bankruptcy this week, according to Bloomberg.com. Bloomberg.com notes Countrywide's stock dropped the most since Oct. 1987.
Meanwhile shares of bond insurer Ambac (ABK 19.33, -4.15) and MBIA (MBI 15.17, -2.45) are getting pummeled on reports Morgan Stanley cut its bond insurer profit outlook, according to Marketwatch.com. In addition, Bloomberg.com reports that Ambac now has to worry about municipal bonds as well.DJ30 -25.53 NASDAQ +0.70 SP500 -0.01 NASDAQ Dec/Adv/Vol 1569/1295/1.08 bln NYSE Dec/Adv/Vol 1521/1524/653 mln
12:00 pm : The stock market opened on a high note, and was posting a gain of 1% at its peak, but renewed credit concerns quickly sent the stock market into negative territory.
In regard to the credit concerns, several headlines attributed to the selling pressure in financials. 1) Moody's downgraded 46 Bear Stearns tranches backed by Alt-A Mortgage loans. 2) Moody's has placed National City's (NCC 14.47, -0.72) credit rating under review for a possible downgrade. 3) Several troubled CDOs are liquidating over $5 billion in distressed securities this week, according to Reuters.
Several U.S. monetary officials made appearances this morning.
Treasury Secretary Paulson said there are no signs that the housing market problems are easing and, if anything, signs are pointing to a further downturn. He expects to see a period of slower growth.
Philadelphia Fed President Plosser said policy decisions are more difficult because recent data suggest inflation is more broad-based and that slow growth can not be relied on to reduce inflation. He noted that he is open to further rate cuts, but has not yet made up his mind.
Boston Fed President Rosengren said if forecasts are correct, the U.S. will have the longest housing investment decline in 50 years. Housing stocks (-5.2%) came under pressure following this statement.
In corporate news, Starbucks (SBUX 20.16, +1.78) announced last evening its chairman, Howard Schultz, will return to the company's head as chief executive. The move is effective immediately and comes as part of a series of initiatives intended to increase shareholder value.
The Wall Street Journal reports Bear Stearns (BSC 75.03, -1.22) CEO James Cayne is stepping down in the wake of the company's subprime related losses and flagging stock price. Shares were higher on the news, but slid after reports that Moody's has downgraded the Bear Stearns tranches.
On the economic front, November pending home sales fell 2.6%, compared to the expected decline of 0.7%. The prior reading was revised up to 3.7% from a gain of 0.6%, which is offsetting some of the disappointment in November's weaker than expected sales.
Six of the ten economic sectors are posting a gain, led by healthcare (+1.1%) and utilities (+1.1%), which are typically thought as safe-havens in an economic downturn.
Heavy-weights financials (-2.2%) and tech (-0.5%) are leading the way lower.
In commodity trading, crude oil (+2.3% to $97.34) has bounced higher following its steep decline yesterday. Gold (+1.7% to $877.00) surpassed its all-time high of $873 that was reached in 1980. DJ30 -46.66 NASDAQ -7.31 SP500 -2.81 NASDAQ Dec/Adv/Vol 1477/1373/901 mln NYSE Dec/Adv/Vol 1388/1618/533 mln
11:30 am : The Dow slips into the red, and the S&P and Nasdaq fall to their worst levels of the session slightly above the unchanged mark. Selling interest has been concentrated within the financial sector (-1.3%).
Shares of Bear Sterns (BSC 74.97, -1.28) slid after news that Moody's has downgraded 46 Bear Stearns tranches backed by Alt-A Mortgage loans. Meanwhile, Countrywide's (CFC 6.68, -0.96) stock has been clipped, although it is probably due to rumors as there is not a specific news item to account for the selling interest.
Boston Fed President Rosengren said if forecasts are correct, the U.S. will have the longest housing investment decline in 50 years. Homebuilding stocks (-3.8%) came under pressure following this statement.DJ30 -10.9 NASDAQ +1.98 SP500 +3.27 NASDAQ Dec/Adv/Vol 1173/1626/735 mln NYSE Dec/Adv/Vol 863/2091/384 mln
11:00 am : Stocks remain in the green, but fall off their best levels, as financials fall to the unchanged mark and industrials (-0.3%) slip into the red.
Within the financial sector, the thrifts & mortgages (-0.7%) and property & casualty insurance (0.7%) groups are under the most selling pressure.
Meanwhile, Treasuries are under selling pressure. The 10-year note is down 13 ticks, raising its yield to 3.88%.DJ30 +26.66 NASDAQ +18.33 SP500 +9.08 NASDAQ Dec/Adv/Vol 927/1808/587 mln NYSE Dec/Adv/Vol 785/2125/321 mln
10:30 am : Stocks climbed to fresh intraday highs, and then slightly dip. The buying interest is broad-based, but there is noteable strength within the tech sector (+0.9%), which is aiding in the Nasdaq's outperformance.
Meanwhile, Philadelphia Fed President Plosser said he is open on further rate cuts, but he has not yet made up his mind. Boston Fed President Rosengren is set to speak at 10:50 ET. Rosengren was the only one that dissented at the Dec. 11 FOMC meeting, preferring a 50 basis point cut instead of the 25 basis point cut the FOMC enacted.DJ30 +48.77 NASDAQ +20.94 SP500 +10.19 NASDAQ Dec/Adv/Vol 741/1887/395 mln NYSE Dec/Adv/Vol 571/2267/198 mln
10:05 am : Stocks extend their gains with all ten economic sectors in positive territory. Just reported, November pending home sales fell 2.6%, compared to the expected decline of 0.7%. The prior reading was revised up to 3.7% from a gain of 0.6%, which is offsetting some of the disappointment in November's weaker than expected sales.
Healthcare (+1.3%), materials (+1.2%) and utilities (+1.4%) are providing leadership. Technology (+0.4%), which is down roughly 7% year-to-date, is again underperforming on a relative basis.
Crude (+1.8% to $96.82) continues to rebound from yesterday's losses, which is weighing on the Amex Airline Index (-0.6%). Gold (+1.6% to $875.50) is also posting a gain today, and hit an all-time high after breaking through the previous record of $873 that was reached in 1980.DJ30 +50.07 NASDAQ +15.68 SP500 +10.08 NASDAQ Dec/Adv/Vol 800/1606/172 mln
09:40 am : Stocks open modestly higher, although the market remains on shaky footing.
Topping headlines this morning was news that Starbucks (SBUX) announced strategic initiatives to increase shareholder value and that its Chairman will be reclaiming the CEO position. Meanwhile, The Wall Street Journal reports Bear Stearns (BSC) CEO James Cayne is stepping down in the wake of the company's subprime related losses and flagging stock price.
Futures fell off their best levels of the session after Philadelphia Fed President Plosser said policy decisions are more difficult because recent data suggest inflation is more broad-based and that slow growth can not be relied on to reduce inflation. Traders are betting there is a 36% chance of a 50 basis point rate cut despite continued inflation concerns.DJ30 +35.03 NASDAQ +3.63 SP500 +5.23
09:16 am : S&P futures vs fair value: +6.2. Nasdaq futures vs fair value: +7.3.
09:00 am : S&P futures vs fair value: +6.6. Nasdaq futures vs fair value: +9.5. Futures remain off their best levels of the session and continue to suggest a positive start.
08:31 am : S&P futures vs fair value: +7.9. Nasdaq futures vs fair value: +13.0. Stock futures shed a few points, but still point to a higher start. Philadelphia Fed President Plosser said policy decisions are more difficult as recent data suggest inflation is more broad-based and that slow growth can not be relied on to reduce inflation. He also said if the substantially weaker outlook is prolonged, further policy adjustments may be required. The will be more Fed speak for the market to process later in the day, as Boston Fed President is scheduled to speak at 10:50 ET.
08:00 am : S&P futures vs fair value: +10.5. Nasdaq futures vs fair value: +17.0. The stock market is set to start the trading day on a high note. Several factors are playing a role in the positive sentiment, including news that the Chairman of Starbucks (SBUX) is reclaiming the CEO position, reports that Bear Stearns (BSC) CEO James Cayne is stepping down and Microsoft’s (MSFT) $1.2 billion bid for Norwegian search engine Fast Search & Transfer. Crude oil (+1.7% to $96.69) has had a bit of a rebound following yesterday’s decline.
06:22 am : S&P futures vs fair value: +5.1. Nasdaq futures vs fair value: +9.8.
06:21 am : FTSE...6374.50...+38.80...+0.6%. DAX...7867.24...+50.07...+0.7%.
06:21 am : Nikkei...14528.67...+28.12...+0.2%. Hang Seng...27112.90...-66.59...-0.3%.
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