AI
Thursday, January 24, 2008 7:26:06 PM
Market Update 080124
http://biz.yahoo.com/mu/update.html
4:15 pm : It was another choppy day of trading on Thursday, but unlike past sessions the stock market managed to stay in positive territory for most of the day. Reports that a bond insurer bailout is not imminent weighed on the stock market shortly after the opening bell, but stocks managed to finish near their highs on news that an economic stimulus compromise had been reached.
The stock market's ability to advance 1% after yesterday's 5.4% surge from its lows will likely be seen as a positive sign.
Stocks rose to their best levels around 1:30 ET when House leaders Pelosi, Boehner and Treasury Secretary Paulson announced their bipartisan $150 billion fiscal stimulus plan. Individuals who earn up to $75,000 will be eligible for a $600 check and couples who earn up to $150,000 will be eligible for $1,200, according to reports and Paulson's comments. Individuals who do not pay income tax, but have earned more than $3,000 will be eligible for a $300 check. Parents will get $300 per child. Businesses will get $50 billion in incentives. Checks could begin going in May, according to Paulson.
CNBC reports the stimulus includes loan limit increases for GSE and FHA home loans to 125% of an area's median home price, up to $730,000. The current cap is $362,000 for GSE loans and $417,000 for FHA purchases. The increase would be temporary, lasting until the end of the year.
The stimulus plan still has to pass the House and Senate.
With regard to the bond insurers, New York State Insurance Superintendent Dinallo took some wind out of financials after he indicated a plan to help the insurers may take longer than some market participants had hoped. In a press release, Dinallo said it is important to resolve bond insurers' issues as soon as possible. He noted issues are "complicated" and "any effective plan will take some time to finalize."
On the economic front, weekly jobless claims came in at 301,000, lower than the expected reading of 320,000. This is less than the typical recessionary levels of over 450,000 and is a positive sign for the economic outlook.
December existing home sales came in at a worse than expected seasonally adjusted annual rate of 4.89 million. This was short of the consensus estimate that called for a reading of 4.95 million. Existing sales are down 2.2% compared to last month's reading of 5.00 million. The median sale price of an existing home is down 6.0% versus last year.
The December home sales report is not good news, but the decrease in mortgage rates may help boost sales or keep them steady in the months ahead. According to Bankrate.com, the average 30-year fixed mortgage is at 5.25%, down from last week's rate of 5.42%.
Five of the ten sectors finished higher, led by a 3.0% surge in tech. Qualcomm (QCOM 40.41, +3.78) surged 10% as inventors embraced its earnings report, which aided in tech's and the Nasdaq's outperformance. Energy advanced 3.2% as it rose in conjunction with crude oil (+2.9% to $89.49). Utilities were the main laggard with a 2.8% decline. DJ30 +108.44 NASDAQ +44.51 NQ100 +2.1% R2K -0.1% SP400 +1.2% SP500 +13.54 NASDAQ Dec/Adv/Vol 1292/1733/3.00 bln NYSE Dec/Adv/Vol 1187/1994/2.17 bln
3:30 pm : The stock market is holding with modest gains, while the Nasdaq is posting a decent advance as it outperforms.
Bank of America (BAC 39.37, -1.20) suddenly dropped into the red. Bloomberg reports the company is boosting its preferred stock sale to as much as $13 billion.
After the close, 48 companies are set to report their earnings, with Microsoft (MSFT 32.96, +1.03) set to be the headliner. Before the open tomorrow, 17 companies will report, including Dow component Caterpillar.DJ30 +46.79 NASDAQ +34.89 SP500 +7.41 NASDAQ Dec/Adv/Vol 1251/1754/2.39 bln NYSE Dec/Adv/Vol 1197/1968/1.61 bln
3:00 pm : Stocks run into resistance when they reach their session highs and then go on the retreat. The major indices are still posting a gain but are well off their session highs. The reversal is being led by financials (-0.4%).
Commodities are recovering after seeing some steep declines the past week on recession concerns. The CRB Index is up 2.2%, led by a 2.8% advance in grains and a 2.4% advance in energy. Crude oil is up 2.8% to $89.38 per barrel, even though inventory levels grew by a larger than expected amount. Gold is up a steep 3.1% to $910.60 per ounce.DJ30 +31.13 NASDAQ +31.14 SP500 +4.38 NASDAQ Dec/Adv/Vol 1138/1840/2.18 bln NYSE Dec/Adv/Vol 1092/2074/1.43 bln
2:30 pm : The market has had a positive response to the $150 billion stimulus plan as the major indices climb near session highs.
Individuals who earn up to $75,000 will be eligible for a $600 check and couples who earn up to $150,000 will be eligible for $1200, according to reports and Paulson's comments. Individuals who do not pay income tax, but have earned more than $3000 will be eligible for a $300 check. Parents will get $300 per child. Businesses will get $50 billion in tax cuts.
The agreement still needs to pass the House and Senate. Bush will be making a comment on the stimulus plan at 2:30 ET, according to the White House.DJ30 +98.69 NASDAQ +36.10 SP500 +12.75 NASDAQ Dec/Adv/Vol 1248/1715/1.97 bln NYSE Dec/Adv/Vol 1148/1993/1.35 bln
2:00 pm : Stocks regain some lost ground as Treasury Secretary Paulson and the House leaders discuss their economic stimulus plan. There has been notable buying interest in financials, which are now up 0.7%.
226 stocks in the S&P 500 are trading higher. Qualcomm (QCOM 40.08, +3.45) and Microsoft (MSFT 32.72, +0.79) are leading the way. Qualcomm reported earnings before the open and Microsoft is set to report after the close. Apple (AAPL 132.84, -6.23) is the main laggard, and is now down 34% from its 52-week high.DJ30 +48.21 NASDAQ +25.34 SP500 +7.65 NASDAQ Dec/Adv/Vol 1314/1624/1.83 bln NYSE Dec/Adv/Vol 1318/1814/1.23 bln
1:30 pm : More choppy action as the stock market manages to stay in the green with modest gains. House leaders Pelosi, Boehner and Treasury Secretary Henry Paulson are going to hold a news conference on the economic stimulus plan at 1:30 ET, according to Reuters.
European stock markets closed with very strong gains. London's FTSE advanced 4.8%, France's CAC 40 gained 6.0% and Germany's DAX gained 5.9%. DJ30 +20.57 NASDAQ +19.83 SP500 +2.51 NASDAQ Dec/Adv/Vol 1400/1531/1.69 bln NYSE Dec/Adv/Vol 1272/1848/1.10 bln
1:00 pm : The stock market dips into the red for the third time this session, and then quickly recovers into the green. U.S. Senate Majority Leader Reid confirmed they have reached a tentative deal on an economic stimulus package, according to Reuters.
New 52-week lows outpace new 52-week highs by 3-to-1 on the NYSE and by 4-to-1 on the Nasdaq. Advancers outpace decliners by 7-to-5 on the NYSE and by 6-to-5 on the Nasdaq.DJ30 +51.62 NASDAQ +23.41 SP500 +5.66 NASDAQ Dec/Adv/Vol 1365/1542/1.56 bln NYSE Dec/Adv/Vol 1294/1804/1.00 bln
12:30 pm : The stock market gives up some gains with seven of the ten sectors now trading with a loss. The Nasdaq Composite continues to outperform.
CNN.com is reporting an economic stimulus package agreement is nearing completion. According to its sources, individuals will get a check for $600 and couples will receive $1200. Parents may receive $300 more for each child. Democrats and Republicans have agreed to give rebates to people who don't pay income taxes but do pay Social Security tax. The plan is also said to include business tax breaks.DJ30 +20.97 NASDAQ +19.13 SP500 +3.88 NASDAQ Dec/Adv/Vol 1188/1690/1.41 bln NYSE Dec/Adv/Vol 1160/1914/910 mln
12:05 pm : Stocks opened with modest gains, buoyed by yesterday's impressive turnaround and a better than expected initial unemployment claims report. Stocks have since traded in choppy manner, dropping into the red on two occasions, as investors processed an existing home sales reading and news regarding bond insurers. At midday, stocks are trading with modest gains, roughly in the middle of their intraday ranges.
With regard to the bond insurers, Eric Dinallo, the New York State Superintendent, took some wind out of financials after he indicated a bailout may take longer than some market participants had hoped. In a press release, Dinallo said it is important to resolve bond insurers' issues as soon as possible. He noted issues are "complicated" and "any effective plan will take some time to finalize."
After trading in choppy fashion, bond insurers MBIA (MBI 14.74, -1.87) and Ambac (ABK 13.16, -0.54) fell into the red. The financial sector (+0.2%) also dipped, but is managing to hold a slight gain after surging 6.8% yesterday. MBIA and Ambac led yesterday's rally, gaining 33% and 72%, respectively, on reports of a bond insurer bailout.
On the economic front, weekly jobless claims came in at 301,000, lower than the expected reading of 320,000. This is lower than the typical recessionary levels of over 450,000 and should be a positive for the stock market and economic outlook.
December existing home sales came in at a worse than expected seasonally adjusted annual rate of 4.89 million. This was short of the consensus estimate that called for a reading of 4.95 million. Existing sales are down 2.2% compared to last month's reading of 5.00 million. The median sale price of an existing home is down 6.0% versus last year.
The December home sales report is not good news, but the decrease in mortgage rates may help boost sales or keep them steady in the months ahead. According to Bankrate.com, the average 30 year fixed mortgage is at 5.25%, down from last week's rate of 5.42%.
There were a large number of companies reporting earnings, which came in mixed. Some companies that have made the largest moves after their reports include, eBay (EBAY 27.22, -1.72), Capital One (COF 49.24, +5.04), Qualcomm (QCOM 40.26, +3.63) and Nokia (NOK 35.39, +2.96)
Seven of the ten sectors are higher, led by advances in materials (+2.1%) and tech (+1.8%). The utilities sector is the main laggard with a 1.8% decline.DJ30 +46.01 NASDAQ +28.38 SP500 +6.33 NASDAQ Dec/Adv/Vol 1189/1654/1.28 bln NYSE Dec/Adv/Vol 1161/1900/816 mln
11:30 am : The stock market is back in the green after briefly falling into negative territory. Trading has been choppy today, as it has been throughout the week.
Financials (-0.5%) continue to trade in the red. There is notable weakness in REITs, including a 4.5% drop in industrial REITs and a 4.3% drop in diversified REITs. Thrifts & mortgages (-4.9%) is also playing a role in the sector's underperformance.DJ30 +47.55 NASDAQ +6.81 SP500 +26.40 NASDAQ Dec/Adv/Vol 1218/1571/1.07 bln NYSE Dec/Adv/Vol 1102/1871/619 mln
11:00 am : After some choppy action the Dow and S&P are trading with slight gains. The Nasdaq's advance is more substantial thanks to a 1.3% gain in the tech sector.
New York State Insurance Superintendent Eric Dinallo said a bond insurer bailout is complicated and "any effective plan will take some time to finalize," according to The Wall Street Journal. On Jan. 22 Dinallo said the dept. is issuing a three part plan on bond insurance. The plan included attracting more capital, facilitating solutions to current market challenges and developing strong regulation for bond insurance.
After some volatility, bond insurers MBIA (MBI 14.84, -1.77I) and Ambac (ABK 12.46, -1.24) are trading in the red. Yesterday, MBIA gained 33% and Ambac surged 72% on reports of a bailout.DJ30 +6.26 NASDAQ +22.75 SP500 +1.71 NASDAQ Dec/Adv/Vol 1098/1639/879 mln NYSE Dec/Adv/Vol 1151/1783/509 mln
10:30 am : Stocks reverse in quick fashion, sending the Dow and S&P 500 briefly into negative territory, but have since recovered some. The selling pressure has been broad-based.
Financials (-0.1%) have slipped into the red, which follows its impressive 6.8% surge yesterday. Financials is the best performing sector this year with a 4.8% decline. It was the worst performing sector in 2007, dropping roughly 20%.
Crude inventories for the week ended Jan. 19 rose 2.3 million barrels. Analysts expected crude inventories to increase by 1.5 million barrels. Crude for March delivery was trading up 0.9% to $87.80 just prior to the announcement.DJ30 +11.87 NASDAQ +16.90 SP500 +0.60 NASDAQ Dec/Adv/Vol 867/1779/599 mln NYSE Dec/Adv/Vol 865/1902/213 mln
10:05 am : Just hitting the wires, December existing home sales came in at a seasonally adjusted annual rate of 4.89 million. This was short of the consensus estimate that called for a reading of 4.95 million. Existing sales are down 2.2% compared to last month's reading of 5.00 million.
Stocks had extended their gains on reports that the NYS Insurance Dept. will issue a statement later this morning regarding bond insurers, and then manage to hold their gains immediately after the worse than expected economic report. Seven of the ten sectors are trading higher, led by a 2.6% gain in materials and a 2.0% gain in energy. The utilities sector is the main laggard with a 2.0% drop.DJ30 +95.43 NASDAQ +38.63 SP500 +10.94 NASDAQ Dec/Adv/Vol 815/1645/266 mln
09:40 am : Stocks open modestly higher following yesterday's impressive turnaround when the S&P 500 gained 5.4% from its intraday low. Traders will be looking for a follow-through in order to gain confidence that yesterday's move was more than a short-covering rally.
Helping sentiment this session is continued optimism that there will be a bond insurer bailout plan. Weekly jobless claims came in at 301,000, lower than the expected reading of 320,000. This is lower than the typical recessionary levels of over 450,000 and should be a positive for the stock market and economic outlook.
December existing home sales is set for release at the top of the hour. Briefing.com expects sales to hold steady at a seasonally adjusted annual rate of 5.00 million. DJ30 +7.89 NASDAQ +11.37 SP500 +2.96
09:15 am : S&P futures vs fair value: +6.7. Nasdaq futures vs fair value: +12.5.
08:59 am : S&P futures vs fair value: +7.7. Nasdaq futures vs fair value: +15.8. A positive start is still expected. Earnings reports results have been mixed, but have not been bad.
08:30 am : S&P futures vs fair value: +6.7. Nasdaq futures vs fair value: +14.5. Stock futures shed some points and then gain some ground on a better than expected weekly jobless numbers. There were 301K initial jobless claims for the week ended Jan. 19, which is very close to the previous week’s revised reading of 302K. Economist were expecting 320K claims. Separately, crude oil for March delivery is trading up 1.3% to $88.08. The government’s weekly inventory report is set for release at 10:30 ET, one day later than usual due to the market’s closure on Monday.
08:00 am : S&P futures vs fair value: +4.9. Nasdaq futures vs fair value: +18.3. Futures suggest a higher start, but have dipped off their best levels. The buying interest is being fueled by the huge reversal on Wednesday, strong gains in European stock markets, and optimism that there will be some sort of bail out for bond insurers. It is being reported that China’s fourth quarter GDP grew 11.2%, which is also helping sentiment. On the economic front, the weekly jobless claims will be released at 8:30 ET and December existing home sales will be released at 10:00 ET.
06:19 am : FTSE...5824.30...+215.00...+3.8%. DAX...6785.33...+346.65...+5.4%.
06:19 am : S&P futures vs fair value: +12.1. Nasdaq futures vs fair value: +29.0.
06:19 am : Nikkei...13092.78...+263.72...+2.1%. Hang Seng...23539.27...-550.90...-2.3%.
http://biz.yahoo.com/mu/update.html
4:15 pm : It was another choppy day of trading on Thursday, but unlike past sessions the stock market managed to stay in positive territory for most of the day. Reports that a bond insurer bailout is not imminent weighed on the stock market shortly after the opening bell, but stocks managed to finish near their highs on news that an economic stimulus compromise had been reached.
The stock market's ability to advance 1% after yesterday's 5.4% surge from its lows will likely be seen as a positive sign.
Stocks rose to their best levels around 1:30 ET when House leaders Pelosi, Boehner and Treasury Secretary Paulson announced their bipartisan $150 billion fiscal stimulus plan. Individuals who earn up to $75,000 will be eligible for a $600 check and couples who earn up to $150,000 will be eligible for $1,200, according to reports and Paulson's comments. Individuals who do not pay income tax, but have earned more than $3,000 will be eligible for a $300 check. Parents will get $300 per child. Businesses will get $50 billion in incentives. Checks could begin going in May, according to Paulson.
CNBC reports the stimulus includes loan limit increases for GSE and FHA home loans to 125% of an area's median home price, up to $730,000. The current cap is $362,000 for GSE loans and $417,000 for FHA purchases. The increase would be temporary, lasting until the end of the year.
The stimulus plan still has to pass the House and Senate.
With regard to the bond insurers, New York State Insurance Superintendent Dinallo took some wind out of financials after he indicated a plan to help the insurers may take longer than some market participants had hoped. In a press release, Dinallo said it is important to resolve bond insurers' issues as soon as possible. He noted issues are "complicated" and "any effective plan will take some time to finalize."
On the economic front, weekly jobless claims came in at 301,000, lower than the expected reading of 320,000. This is less than the typical recessionary levels of over 450,000 and is a positive sign for the economic outlook.
December existing home sales came in at a worse than expected seasonally adjusted annual rate of 4.89 million. This was short of the consensus estimate that called for a reading of 4.95 million. Existing sales are down 2.2% compared to last month's reading of 5.00 million. The median sale price of an existing home is down 6.0% versus last year.
The December home sales report is not good news, but the decrease in mortgage rates may help boost sales or keep them steady in the months ahead. According to Bankrate.com, the average 30-year fixed mortgage is at 5.25%, down from last week's rate of 5.42%.
Five of the ten sectors finished higher, led by a 3.0% surge in tech. Qualcomm (QCOM 40.41, +3.78) surged 10% as inventors embraced its earnings report, which aided in tech's and the Nasdaq's outperformance. Energy advanced 3.2% as it rose in conjunction with crude oil (+2.9% to $89.49). Utilities were the main laggard with a 2.8% decline. DJ30 +108.44 NASDAQ +44.51 NQ100 +2.1% R2K -0.1% SP400 +1.2% SP500 +13.54 NASDAQ Dec/Adv/Vol 1292/1733/3.00 bln NYSE Dec/Adv/Vol 1187/1994/2.17 bln
3:30 pm : The stock market is holding with modest gains, while the Nasdaq is posting a decent advance as it outperforms.
Bank of America (BAC 39.37, -1.20) suddenly dropped into the red. Bloomberg reports the company is boosting its preferred stock sale to as much as $13 billion.
After the close, 48 companies are set to report their earnings, with Microsoft (MSFT 32.96, +1.03) set to be the headliner. Before the open tomorrow, 17 companies will report, including Dow component Caterpillar.DJ30 +46.79 NASDAQ +34.89 SP500 +7.41 NASDAQ Dec/Adv/Vol 1251/1754/2.39 bln NYSE Dec/Adv/Vol 1197/1968/1.61 bln
3:00 pm : Stocks run into resistance when they reach their session highs and then go on the retreat. The major indices are still posting a gain but are well off their session highs. The reversal is being led by financials (-0.4%).
Commodities are recovering after seeing some steep declines the past week on recession concerns. The CRB Index is up 2.2%, led by a 2.8% advance in grains and a 2.4% advance in energy. Crude oil is up 2.8% to $89.38 per barrel, even though inventory levels grew by a larger than expected amount. Gold is up a steep 3.1% to $910.60 per ounce.DJ30 +31.13 NASDAQ +31.14 SP500 +4.38 NASDAQ Dec/Adv/Vol 1138/1840/2.18 bln NYSE Dec/Adv/Vol 1092/2074/1.43 bln
2:30 pm : The market has had a positive response to the $150 billion stimulus plan as the major indices climb near session highs.
Individuals who earn up to $75,000 will be eligible for a $600 check and couples who earn up to $150,000 will be eligible for $1200, according to reports and Paulson's comments. Individuals who do not pay income tax, but have earned more than $3000 will be eligible for a $300 check. Parents will get $300 per child. Businesses will get $50 billion in tax cuts.
The agreement still needs to pass the House and Senate. Bush will be making a comment on the stimulus plan at 2:30 ET, according to the White House.DJ30 +98.69 NASDAQ +36.10 SP500 +12.75 NASDAQ Dec/Adv/Vol 1248/1715/1.97 bln NYSE Dec/Adv/Vol 1148/1993/1.35 bln
2:00 pm : Stocks regain some lost ground as Treasury Secretary Paulson and the House leaders discuss their economic stimulus plan. There has been notable buying interest in financials, which are now up 0.7%.
226 stocks in the S&P 500 are trading higher. Qualcomm (QCOM 40.08, +3.45) and Microsoft (MSFT 32.72, +0.79) are leading the way. Qualcomm reported earnings before the open and Microsoft is set to report after the close. Apple (AAPL 132.84, -6.23) is the main laggard, and is now down 34% from its 52-week high.DJ30 +48.21 NASDAQ +25.34 SP500 +7.65 NASDAQ Dec/Adv/Vol 1314/1624/1.83 bln NYSE Dec/Adv/Vol 1318/1814/1.23 bln
1:30 pm : More choppy action as the stock market manages to stay in the green with modest gains. House leaders Pelosi, Boehner and Treasury Secretary Henry Paulson are going to hold a news conference on the economic stimulus plan at 1:30 ET, according to Reuters.
European stock markets closed with very strong gains. London's FTSE advanced 4.8%, France's CAC 40 gained 6.0% and Germany's DAX gained 5.9%. DJ30 +20.57 NASDAQ +19.83 SP500 +2.51 NASDAQ Dec/Adv/Vol 1400/1531/1.69 bln NYSE Dec/Adv/Vol 1272/1848/1.10 bln
1:00 pm : The stock market dips into the red for the third time this session, and then quickly recovers into the green. U.S. Senate Majority Leader Reid confirmed they have reached a tentative deal on an economic stimulus package, according to Reuters.
New 52-week lows outpace new 52-week highs by 3-to-1 on the NYSE and by 4-to-1 on the Nasdaq. Advancers outpace decliners by 7-to-5 on the NYSE and by 6-to-5 on the Nasdaq.DJ30 +51.62 NASDAQ +23.41 SP500 +5.66 NASDAQ Dec/Adv/Vol 1365/1542/1.56 bln NYSE Dec/Adv/Vol 1294/1804/1.00 bln
12:30 pm : The stock market gives up some gains with seven of the ten sectors now trading with a loss. The Nasdaq Composite continues to outperform.
CNN.com is reporting an economic stimulus package agreement is nearing completion. According to its sources, individuals will get a check for $600 and couples will receive $1200. Parents may receive $300 more for each child. Democrats and Republicans have agreed to give rebates to people who don't pay income taxes but do pay Social Security tax. The plan is also said to include business tax breaks.DJ30 +20.97 NASDAQ +19.13 SP500 +3.88 NASDAQ Dec/Adv/Vol 1188/1690/1.41 bln NYSE Dec/Adv/Vol 1160/1914/910 mln
12:05 pm : Stocks opened with modest gains, buoyed by yesterday's impressive turnaround and a better than expected initial unemployment claims report. Stocks have since traded in choppy manner, dropping into the red on two occasions, as investors processed an existing home sales reading and news regarding bond insurers. At midday, stocks are trading with modest gains, roughly in the middle of their intraday ranges.
With regard to the bond insurers, Eric Dinallo, the New York State Superintendent, took some wind out of financials after he indicated a bailout may take longer than some market participants had hoped. In a press release, Dinallo said it is important to resolve bond insurers' issues as soon as possible. He noted issues are "complicated" and "any effective plan will take some time to finalize."
After trading in choppy fashion, bond insurers MBIA (MBI 14.74, -1.87) and Ambac (ABK 13.16, -0.54) fell into the red. The financial sector (+0.2%) also dipped, but is managing to hold a slight gain after surging 6.8% yesterday. MBIA and Ambac led yesterday's rally, gaining 33% and 72%, respectively, on reports of a bond insurer bailout.
On the economic front, weekly jobless claims came in at 301,000, lower than the expected reading of 320,000. This is lower than the typical recessionary levels of over 450,000 and should be a positive for the stock market and economic outlook.
December existing home sales came in at a worse than expected seasonally adjusted annual rate of 4.89 million. This was short of the consensus estimate that called for a reading of 4.95 million. Existing sales are down 2.2% compared to last month's reading of 5.00 million. The median sale price of an existing home is down 6.0% versus last year.
The December home sales report is not good news, but the decrease in mortgage rates may help boost sales or keep them steady in the months ahead. According to Bankrate.com, the average 30 year fixed mortgage is at 5.25%, down from last week's rate of 5.42%.
There were a large number of companies reporting earnings, which came in mixed. Some companies that have made the largest moves after their reports include, eBay (EBAY 27.22, -1.72), Capital One (COF 49.24, +5.04), Qualcomm (QCOM 40.26, +3.63) and Nokia (NOK 35.39, +2.96)
Seven of the ten sectors are higher, led by advances in materials (+2.1%) and tech (+1.8%). The utilities sector is the main laggard with a 1.8% decline.DJ30 +46.01 NASDAQ +28.38 SP500 +6.33 NASDAQ Dec/Adv/Vol 1189/1654/1.28 bln NYSE Dec/Adv/Vol 1161/1900/816 mln
11:30 am : The stock market is back in the green after briefly falling into negative territory. Trading has been choppy today, as it has been throughout the week.
Financials (-0.5%) continue to trade in the red. There is notable weakness in REITs, including a 4.5% drop in industrial REITs and a 4.3% drop in diversified REITs. Thrifts & mortgages (-4.9%) is also playing a role in the sector's underperformance.DJ30 +47.55 NASDAQ +6.81 SP500 +26.40 NASDAQ Dec/Adv/Vol 1218/1571/1.07 bln NYSE Dec/Adv/Vol 1102/1871/619 mln
11:00 am : After some choppy action the Dow and S&P are trading with slight gains. The Nasdaq's advance is more substantial thanks to a 1.3% gain in the tech sector.
New York State Insurance Superintendent Eric Dinallo said a bond insurer bailout is complicated and "any effective plan will take some time to finalize," according to The Wall Street Journal. On Jan. 22 Dinallo said the dept. is issuing a three part plan on bond insurance. The plan included attracting more capital, facilitating solutions to current market challenges and developing strong regulation for bond insurance.
After some volatility, bond insurers MBIA (MBI 14.84, -1.77I) and Ambac (ABK 12.46, -1.24) are trading in the red. Yesterday, MBIA gained 33% and Ambac surged 72% on reports of a bailout.DJ30 +6.26 NASDAQ +22.75 SP500 +1.71 NASDAQ Dec/Adv/Vol 1098/1639/879 mln NYSE Dec/Adv/Vol 1151/1783/509 mln
10:30 am : Stocks reverse in quick fashion, sending the Dow and S&P 500 briefly into negative territory, but have since recovered some. The selling pressure has been broad-based.
Financials (-0.1%) have slipped into the red, which follows its impressive 6.8% surge yesterday. Financials is the best performing sector this year with a 4.8% decline. It was the worst performing sector in 2007, dropping roughly 20%.
Crude inventories for the week ended Jan. 19 rose 2.3 million barrels. Analysts expected crude inventories to increase by 1.5 million barrels. Crude for March delivery was trading up 0.9% to $87.80 just prior to the announcement.DJ30 +11.87 NASDAQ +16.90 SP500 +0.60 NASDAQ Dec/Adv/Vol 867/1779/599 mln NYSE Dec/Adv/Vol 865/1902/213 mln
10:05 am : Just hitting the wires, December existing home sales came in at a seasonally adjusted annual rate of 4.89 million. This was short of the consensus estimate that called for a reading of 4.95 million. Existing sales are down 2.2% compared to last month's reading of 5.00 million.
Stocks had extended their gains on reports that the NYS Insurance Dept. will issue a statement later this morning regarding bond insurers, and then manage to hold their gains immediately after the worse than expected economic report. Seven of the ten sectors are trading higher, led by a 2.6% gain in materials and a 2.0% gain in energy. The utilities sector is the main laggard with a 2.0% drop.DJ30 +95.43 NASDAQ +38.63 SP500 +10.94 NASDAQ Dec/Adv/Vol 815/1645/266 mln
09:40 am : Stocks open modestly higher following yesterday's impressive turnaround when the S&P 500 gained 5.4% from its intraday low. Traders will be looking for a follow-through in order to gain confidence that yesterday's move was more than a short-covering rally.
Helping sentiment this session is continued optimism that there will be a bond insurer bailout plan. Weekly jobless claims came in at 301,000, lower than the expected reading of 320,000. This is lower than the typical recessionary levels of over 450,000 and should be a positive for the stock market and economic outlook.
December existing home sales is set for release at the top of the hour. Briefing.com expects sales to hold steady at a seasonally adjusted annual rate of 5.00 million. DJ30 +7.89 NASDAQ +11.37 SP500 +2.96
09:15 am : S&P futures vs fair value: +6.7. Nasdaq futures vs fair value: +12.5.
08:59 am : S&P futures vs fair value: +7.7. Nasdaq futures vs fair value: +15.8. A positive start is still expected. Earnings reports results have been mixed, but have not been bad.
08:30 am : S&P futures vs fair value: +6.7. Nasdaq futures vs fair value: +14.5. Stock futures shed some points and then gain some ground on a better than expected weekly jobless numbers. There were 301K initial jobless claims for the week ended Jan. 19, which is very close to the previous week’s revised reading of 302K. Economist were expecting 320K claims. Separately, crude oil for March delivery is trading up 1.3% to $88.08. The government’s weekly inventory report is set for release at 10:30 ET, one day later than usual due to the market’s closure on Monday.
08:00 am : S&P futures vs fair value: +4.9. Nasdaq futures vs fair value: +18.3. Futures suggest a higher start, but have dipped off their best levels. The buying interest is being fueled by the huge reversal on Wednesday, strong gains in European stock markets, and optimism that there will be some sort of bail out for bond insurers. It is being reported that China’s fourth quarter GDP grew 11.2%, which is also helping sentiment. On the economic front, the weekly jobless claims will be released at 8:30 ET and December existing home sales will be released at 10:00 ET.
06:19 am : FTSE...5824.30...+215.00...+3.8%. DAX...6785.33...+346.65...+5.4%.
06:19 am : S&P futures vs fair value: +12.1. Nasdaq futures vs fair value: +29.0.
06:19 am : Nikkei...13092.78...+263.72...+2.1%. Hang Seng...23539.27...-550.90...-2.3%.
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