AI
Thursday, April 03, 2008 7:27:14 PM
Market Update 080403
http://biz.yahoo.com/mu/update.html
4:20 pm : After choppy action on Thursday, the market eventually finished the day with a slight gain. A better than expected ISM services report, and reassuring comments by a major financial firm’s CEO helped offset disappointment over a worse than expected unemployment claims reading. Testimony from several officials regarding the collapse and bailout of Bear Stearns (BSC 10.72, -0.14) dominated headlines, however, the stock market had a limited reaction.
Initial jobless claims for the week ended March 29 jumped to 407,000 from 369,000. Economists expected 366,000 claims. This is the highest level of claims since September 2005. However, the data falls outside of March’s jobs report, so it will not have an impact on tomorrow’s reading.
The market was lifted out of negative territory on a Nikkei.net report that Merrill Lynch (MER 45.89, +0.55) CEO John Thain said the company has no need to raise fresh capital. Financials (+0.4%) had been underperforming the broader market, but managed to outperform after the comments.
Also helping stocks was a better than expected ISM services survey. The March ISM non-manufacturing index rose to 49.6 from 49.3. This topped the expected reading of 48.5. However, the number still reflects a contraction in non-manufacturing activities as it remains below 50.
Fed Chairman Bernanke, New York Fed President Geithner, SEC Chairman Cox, and the CEOs of Bear Stearns and JPMorgan Chase (JPM 46.28, +0.04) testified before the Senate Banking Committee with regard to the rescue of Bear Stearns. The participants confirmed earlier assumptions regarding the deal, but did not give the market any significant revelations.
Six of the ten sectors posted a gain.
Tech (+0.1%) performed on par with the broader-market as strength in Apple (AAPL 151.61, +4.12) helped offset weakness in Cisco (CSCO 24.23, -0.73). Shares of Cisco fell after being downgraded to Neutral from Buy at UBS. Also helping the sector was better than expected earnings from Research In Motion (RIMM 122.58, +6.79).
The best performing sector was materials. It gained 1.8% this session, making it the only sector in positive territory for the year. The gains were fueled by strength in Alcoa (AA 38.54, +2.11) and Monsanto (MON 117.79, +5.79).
Schering-Plough (SGP 15.38, +1.52) was one of the best-performing S&P 500 stocks on Thursday. Traders were pleased with the company’s cost cutting measures. However, the stock is still down 55% from its 52-week high, after getting hammered on news that its popular cholesterol drug Vytorin may not be effective.
In commodity trading, oil shed 0.5% to $104.35 per barrel, and gold gained 1.1% to $905.20 per ounce.
DJ30 +20.20 NASDAQ +1.90 NQ100 +0.4% R2K +0.2% SP400 +0.4% SP500 +1.78 NASDAQ Dec/Adv/Vol 1499/1361/1.97 bln NYSE Dec/Adv/Vol 1296/1816/1.25 bln
3:30 pm : The major indices dip a bit as they trade slightly above the unchanged mark. The market spent the first half of the session in negative territory, and the second half in positive territory.
Looking to tomorrow, market participants will turn their attention to the March jobs report. Economists expect nonfarm payrolls to decline by 50,000, following February's decline of 63,000. The unemployment rate is expected to tick higher to 5.0% from 4.8%.DJ30 +26.14 NASDAQ +4.06 SP500 +2.40 NASDAQ Dec/Adv/Vol 1528/1324/1.62 bln NYSE Dec/Adv/Vol 1363/1731/982 mln
3:00 pm : The stock market is trading with a slight gain. The Senate Banking Committee hearing has come to a conclusion.
The Fed lent out $25 billion for 28 days in its second Term Securities Lending Facility auction. The auctions were implemented to increase liquidity by lending financial firms highly liquid Treasury securities for less liquid assets as collateral. The auction had a bid-to-cover ratio 1.88, as $46.9 billion in bids were submitted. The stop out rate--which is the minimum rate the Fed accepted--was 0.16%. At least week's auction, the stop out rate was 0.33%. The low stop out rate demonstrates the Fed is aggressively attempting to increase liquidity.DJ30 +46.25 NASDAQ +7.87 SP500 +5.21 NASDAQ Dec/Adv/Vol 1470/1362/1.48 bln NYSE Dec/Adv/Vol 1294/1796/892 mln
2:30 pm : The stock market is trading modestly above the unchanged mark. The pullback off session highs has been mostly broad-based.
The S&P 500 is practically split down the middle, with 246 advancing stocks, 248 declining, and six unchanged. By percent change, Schering-Plough (SGP 15.46, +1.60) is posting the largest gain of 11.5%. The company is up after it announced cost cutting measures. Its stock was recently pounded after questions were raised regarding the effectiveness of its popular cholesterol drugs. MEMC Electronic Materials (WFR 73.65, -2.74) is the largest decliner, falling 3.9%, after cutting its first quarter revenue outlook.DJ30 +38.35 NASDAQ +3.54 SP500 +3.62 NASDAQ Dec/Adv/Vol 1456/1355/1.37 bln NYSE Dec/Adv/Vol 1310/1766/822 mln
2:00 pm : The major indices dip off their best levels, but remain in the green. Bernanke, Cox, and Geithner have completed their testimony. The CEOs of JPMorgan Chase (JPM 46.42, +0.18) and Bear Stearns (BSC 10.90, +0.04) are now set to testify.
JPMorgan CEO Jamie Dimon said that they hold Bear's riskier assets, whereas the Fed holds the more stable assets.DJ30 +25.07 NASDAQ +1.76 SP500 +2.57 NASDAQ Dec/Adv/Vol 1415/1379/1.26 bln NYSE Dec/Adv/Vol 1308/1753/751 mln
1:30 pm : The major indices extend their advance, although the gains are modest. Eight of the ten sectors are now in positive territory. Earlier in the session, all ten sectors were in the red.
The materials sector is leading the way higher, as it posts a strong 2.7% gain. Companies that are showing the most strength include aluminum company Alcoa (AA 38.99, +2.56), agriculture company Monsanto (MON 119.24, +7.24), and mining company Freeport-McMoRan (FCX 104.01, +4.28). The materials sector is up 10.8% year-over-year, compared to the S&P 500's 4.6% decline.DJ30 +52.19 NASDAQ +9.56 SP500 +6.44 NASDAQ Dec/Adv/Vol 1358/1415/1.14 bln NYSE Dec/Adv/Vol 1238/1800/690 mln
1:00 pm : The major indices bounce into positive territory. Financials have seen the most buying interest, as the sector is up 0.7% after being down as much as 1.4%. Merrill Lynch (MER 47.11, +1.77) spiked after Nikkei.net reported that Merrill CEO John Thain said the company has no need to raise fresh capital.
The materials sector is now the only sector in positive territory for the year after gaining 1.9% this session.DJ30 +33.47 NASDAQ +6.73 SP500 +3.81 NASDAQ Dec/Adv/Vol 1440/1321/1.01 bln NYSE Dec/Adv/Vol 1361/1666/609 mln
12:30 pm : The stock market is vacillating near the unchanged mark. Broad-based buying interest helped the market climbed off its low when it was down 0.7%. Decliners hold a slight edge over advancers on the NYSE, and hold a 4-to-3 edge on the Nasdaq.
The testimony before the Senate Banking Committee is ongoing.DJ30 -22.47 NASDAQ -5.39 SP500 -1.68 NASDAQ Dec/Adv/Vol 1596/1131/880 mln NYSE Dec/Adv/Vol 1596/1398/535 mln
12:00 pm : After fluctuating in negative territory for most of the session, the major indices are trading near the unchanged mark at midday. However, a worse than expected new unemployment claims report and disappointing news out of the tech sector has kept buying interest in check.
Initial jobless claims for the week ended March 29 jumped to 407,000 from 369,000. Economists expected 366,000 claims. This is the highest level of claims since 2005, and has acted as a drag for the market.
Helping to offset some disappointment in the jobless data was a better than expected services sector report. The March ISM Services reading rose to 49.6 from 49.3. This topped the expected reading of 48.5. Because the number is below 50, it reflects a contraction in non-manufacturing activities.
The tech (-0.3%) sector looked as if it was poised to outperform after Research In Motion (RIMM 122.32, +6.53) topped earnings expectations. However, word of more than expected layoffs at Dell (DELL 19.78, -0.17), Cisco (CSCO 24.27, -0.69) being downgraded to Neutral from Buy, and a disappointing outlook from Garmin (GRMN 54.14, -2.17) has sent the sector into a laggard position.
Fed Chairman Bernanke, New York Fed President Geithner and SEC Chairman Cox are testifying on the Bear Stearns (BSC 10.86, 0.00) collapse before the Senate Banking Committee.
Bernanke's speech was basically a compressed version of his testimony on Wednesday before the Joint Economic Committee.
The officials are currently answering questions from Senate Banking Committee members. Fed Chairman Bernanke stated the Fed did not have any interest the price Bear Stearns was sold for, and just wanted the company's debt to be assumed by a strong company.
DJ30 -10.50 NASDAQ -5.25 SP500 +0.04 NASDAQ Dec/Adv/Vol 1552/1135/781 mln NYSE Dec/Adv/Vol 1517/1449/473 mln
11:30 am : The major indices are fluctuating modestly below the unchanged mark as Fed Chairman Bernanke, SEC Chairman Cox, and New York Fed President Geithner answer questions from Senate Banking Committee members.
Bernanke said the Fed made sure multiple firms were able to talk to Bear Stearns (BSC 10.76, -0.10) regarding a bailout. He stated the Fed did not have any interest in price, and that it just wanted the company's debt to be assumed by a strong company.
Cox noted that it was JPMorgan Chase's (JPM 45.74, -0.50) idea to use the Fed's capital to facilitate the deal.DJ30 -44.29 NASDAQ -14.06 SP500 -4.45 NASDAQ Dec/Adv/Vol 1660/986/658 mln NYSE Dec/Adv/Vol 1723/1206/397 mln
11:00 am : The major indices are falling back toward their session lows. Energy stocks (+0.8%) are outperforming. Crude is now up 0.8% to $105.64 per barrel after reversing earlier losses when it was down 1.6%. The two most heavily-weighted sectors--financials (-1.1%) and tech (-1.1%)--are the main laggards.
Bernanke's speech was basically a compressed version of his testimony on Wednesday before the Joint Economic Committee. As a result, the market did not show much reaction to the speech. He will be answering questions, which may produce new information. New York Fed President Geithner is currently testifying.DJ30 -59.84 NASDAQ -21.01 SP500 -7.13 NASDAQ Dec/Adv/Vol 1705/870/548 mln NYSE Dec/Adv/Vol 1822/1061/327 mln
10:30 am : After climbing near the unchanged mark, the major indices are back on the decline. Although Research In Motion (RIMM 121.11, +5.32) posted strong earnings and a strong outlook, the tech sector (-0.8%) is underperforming. Traders are disappointed with Garmin's (GRNM 53.70, -2.71) outlook, and that Cisco (CSCO 24.16, -0.80) was downgraded to Neutral from Buy at UBS.
Fed Chairman Bernanke has yet to testify before the Banking Committee. His prepared remarks that have already crossed the wires have not provided the market with any revelations.DJ30 -48.93 NASDAQ -14.00 SP500 -4.98 NASDAQ Dec/Adv/Vol 1532/955/418 mln NYSE Dec/Adv/Vol 1742/1071/246 mln
10:05 am : The major indices come off their worst levels on a better than expected economic reading, but remain in the red. Just hitting the wires, the March ISM Services reading rose to 49.6 from 49.3. This topped the expected reading of 48.5. Because the number is below 50, it reflects a contraction in non-manufacturing activities.
Six of the ten economic sectors are in negative territory. Financials are leading the way lower. Lehman Brothers lowered its earnings estimates on Goldman Sachs (GS 174.70, -2.17), Morgan Stanley (MS 48.27, -0.82) and Merrill Lynch (MER 44.66, -0.68), while Goldman lowered its earnings estimates on Lehman Bros. (LEH 43.07, -1.00).
The testimony on Capitol Hill is getting underway. Briefing.com will provide updates as developments occur.DJ30 -14.49 NASDAQ -6.54 SP500 -1.65 NASDAQ Dec/Adv/Vol 1433/923/243 NYSE Dec/Adv/Vol 1509/1199/153 mln
09:40 am : The major indices open on a low note after weekly initial jobless claims unexpectedly rose. New unemployment claims for the week ended March 29 jumped to 407,000 from 369,000. Economists expected 366,000 claims. This is the highest level of claims since 2005, and will be seen as a negative for the market.
Market participants await the 10:00 ET testimony before the Senate Banking Committee from Ben Bernanke, SEC Chairman Cox, New York Fed President Geithner, and the CEOs from Bear Stearns and JPMorgan Chase. They will be talking about the Bear Stearns collapse and bailout.DJ30 -58.70 NASDAQ -15.46 SP500 -7.07
09:16 am : S&P futures vs fair value: -8.9. Nasdaq futures vs fair value: -11.0.
09:00 am : S&P futures vs fair value: -8.3. Nasdaq futures vs fair value: -12.2. Futures continue to point to a negative start to trading following the higher than expected initial jobless claims reading.
08:32 am : S&P futures vs fair value: -6.2. Nasdaq futures vs fair value: -9.0. Futures fall on a worse than expected intial jobless claims reading. New unemployment claims for the week ended March 29 jumped to 407,000 from 369,000. Economists expected 366,000 claims. In other news, Lehman Brothers lowered its earnings estimates on Goldman Sachs (GS), Morgan Stanley (MS) and Merrill Lynch (MER). Meanwhile, Goldman lowered its earnings estimates on Lehman.
08:05 am : S&P futures vs fair value: -2.0. Nasdaq futures vs fair value: +0.5. Futures point to a muted start to trading. Research In Motion (RIMM) reported earnings and an outlook that topped expectations. UBS downgraded Cisco to Neutral from Buy. Fed Chairman Ben Bernanke will be joined by SEC Chairmon Cox and New York Fed Geithner to testify before the Senate Banking Committee at 10:00 ET. In economic news, market participants will get the March ISM services reading at 10:00 ET.
06:18 am : S&P futures vs fair value: -1.3. Nasdaq futures vs fair value: +3.8.
06:18 am : FTSE...5908.90...-7.00...-0.1%. DAX...6751.42...-26.02...-0.4%.
06:18 am : Nikkei...13389.90...+200.54...+1.5%. Hang Seng...24264.63...+392.20...+1.6%.
http://biz.yahoo.com/mu/update.html
4:20 pm : After choppy action on Thursday, the market eventually finished the day with a slight gain. A better than expected ISM services report, and reassuring comments by a major financial firm’s CEO helped offset disappointment over a worse than expected unemployment claims reading. Testimony from several officials regarding the collapse and bailout of Bear Stearns (BSC 10.72, -0.14) dominated headlines, however, the stock market had a limited reaction.
Initial jobless claims for the week ended March 29 jumped to 407,000 from 369,000. Economists expected 366,000 claims. This is the highest level of claims since September 2005. However, the data falls outside of March’s jobs report, so it will not have an impact on tomorrow’s reading.
The market was lifted out of negative territory on a Nikkei.net report that Merrill Lynch (MER 45.89, +0.55) CEO John Thain said the company has no need to raise fresh capital. Financials (+0.4%) had been underperforming the broader market, but managed to outperform after the comments.
Also helping stocks was a better than expected ISM services survey. The March ISM non-manufacturing index rose to 49.6 from 49.3. This topped the expected reading of 48.5. However, the number still reflects a contraction in non-manufacturing activities as it remains below 50.
Fed Chairman Bernanke, New York Fed President Geithner, SEC Chairman Cox, and the CEOs of Bear Stearns and JPMorgan Chase (JPM 46.28, +0.04) testified before the Senate Banking Committee with regard to the rescue of Bear Stearns. The participants confirmed earlier assumptions regarding the deal, but did not give the market any significant revelations.
Six of the ten sectors posted a gain.
Tech (+0.1%) performed on par with the broader-market as strength in Apple (AAPL 151.61, +4.12) helped offset weakness in Cisco (CSCO 24.23, -0.73). Shares of Cisco fell after being downgraded to Neutral from Buy at UBS. Also helping the sector was better than expected earnings from Research In Motion (RIMM 122.58, +6.79).
The best performing sector was materials. It gained 1.8% this session, making it the only sector in positive territory for the year. The gains were fueled by strength in Alcoa (AA 38.54, +2.11) and Monsanto (MON 117.79, +5.79).
Schering-Plough (SGP 15.38, +1.52) was one of the best-performing S&P 500 stocks on Thursday. Traders were pleased with the company’s cost cutting measures. However, the stock is still down 55% from its 52-week high, after getting hammered on news that its popular cholesterol drug Vytorin may not be effective.
In commodity trading, oil shed 0.5% to $104.35 per barrel, and gold gained 1.1% to $905.20 per ounce.
DJ30 +20.20 NASDAQ +1.90 NQ100 +0.4% R2K +0.2% SP400 +0.4% SP500 +1.78 NASDAQ Dec/Adv/Vol 1499/1361/1.97 bln NYSE Dec/Adv/Vol 1296/1816/1.25 bln
3:30 pm : The major indices dip a bit as they trade slightly above the unchanged mark. The market spent the first half of the session in negative territory, and the second half in positive territory.
Looking to tomorrow, market participants will turn their attention to the March jobs report. Economists expect nonfarm payrolls to decline by 50,000, following February's decline of 63,000. The unemployment rate is expected to tick higher to 5.0% from 4.8%.DJ30 +26.14 NASDAQ +4.06 SP500 +2.40 NASDAQ Dec/Adv/Vol 1528/1324/1.62 bln NYSE Dec/Adv/Vol 1363/1731/982 mln
3:00 pm : The stock market is trading with a slight gain. The Senate Banking Committee hearing has come to a conclusion.
The Fed lent out $25 billion for 28 days in its second Term Securities Lending Facility auction. The auctions were implemented to increase liquidity by lending financial firms highly liquid Treasury securities for less liquid assets as collateral. The auction had a bid-to-cover ratio 1.88, as $46.9 billion in bids were submitted. The stop out rate--which is the minimum rate the Fed accepted--was 0.16%. At least week's auction, the stop out rate was 0.33%. The low stop out rate demonstrates the Fed is aggressively attempting to increase liquidity.DJ30 +46.25 NASDAQ +7.87 SP500 +5.21 NASDAQ Dec/Adv/Vol 1470/1362/1.48 bln NYSE Dec/Adv/Vol 1294/1796/892 mln
2:30 pm : The stock market is trading modestly above the unchanged mark. The pullback off session highs has been mostly broad-based.
The S&P 500 is practically split down the middle, with 246 advancing stocks, 248 declining, and six unchanged. By percent change, Schering-Plough (SGP 15.46, +1.60) is posting the largest gain of 11.5%. The company is up after it announced cost cutting measures. Its stock was recently pounded after questions were raised regarding the effectiveness of its popular cholesterol drugs. MEMC Electronic Materials (WFR 73.65, -2.74) is the largest decliner, falling 3.9%, after cutting its first quarter revenue outlook.DJ30 +38.35 NASDAQ +3.54 SP500 +3.62 NASDAQ Dec/Adv/Vol 1456/1355/1.37 bln NYSE Dec/Adv/Vol 1310/1766/822 mln
2:00 pm : The major indices dip off their best levels, but remain in the green. Bernanke, Cox, and Geithner have completed their testimony. The CEOs of JPMorgan Chase (JPM 46.42, +0.18) and Bear Stearns (BSC 10.90, +0.04) are now set to testify.
JPMorgan CEO Jamie Dimon said that they hold Bear's riskier assets, whereas the Fed holds the more stable assets.DJ30 +25.07 NASDAQ +1.76 SP500 +2.57 NASDAQ Dec/Adv/Vol 1415/1379/1.26 bln NYSE Dec/Adv/Vol 1308/1753/751 mln
1:30 pm : The major indices extend their advance, although the gains are modest. Eight of the ten sectors are now in positive territory. Earlier in the session, all ten sectors were in the red.
The materials sector is leading the way higher, as it posts a strong 2.7% gain. Companies that are showing the most strength include aluminum company Alcoa (AA 38.99, +2.56), agriculture company Monsanto (MON 119.24, +7.24), and mining company Freeport-McMoRan (FCX 104.01, +4.28). The materials sector is up 10.8% year-over-year, compared to the S&P 500's 4.6% decline.DJ30 +52.19 NASDAQ +9.56 SP500 +6.44 NASDAQ Dec/Adv/Vol 1358/1415/1.14 bln NYSE Dec/Adv/Vol 1238/1800/690 mln
1:00 pm : The major indices bounce into positive territory. Financials have seen the most buying interest, as the sector is up 0.7% after being down as much as 1.4%. Merrill Lynch (MER 47.11, +1.77) spiked after Nikkei.net reported that Merrill CEO John Thain said the company has no need to raise fresh capital.
The materials sector is now the only sector in positive territory for the year after gaining 1.9% this session.DJ30 +33.47 NASDAQ +6.73 SP500 +3.81 NASDAQ Dec/Adv/Vol 1440/1321/1.01 bln NYSE Dec/Adv/Vol 1361/1666/609 mln
12:30 pm : The stock market is vacillating near the unchanged mark. Broad-based buying interest helped the market climbed off its low when it was down 0.7%. Decliners hold a slight edge over advancers on the NYSE, and hold a 4-to-3 edge on the Nasdaq.
The testimony before the Senate Banking Committee is ongoing.DJ30 -22.47 NASDAQ -5.39 SP500 -1.68 NASDAQ Dec/Adv/Vol 1596/1131/880 mln NYSE Dec/Adv/Vol 1596/1398/535 mln
12:00 pm : After fluctuating in negative territory for most of the session, the major indices are trading near the unchanged mark at midday. However, a worse than expected new unemployment claims report and disappointing news out of the tech sector has kept buying interest in check.
Initial jobless claims for the week ended March 29 jumped to 407,000 from 369,000. Economists expected 366,000 claims. This is the highest level of claims since 2005, and has acted as a drag for the market.
Helping to offset some disappointment in the jobless data was a better than expected services sector report. The March ISM Services reading rose to 49.6 from 49.3. This topped the expected reading of 48.5. Because the number is below 50, it reflects a contraction in non-manufacturing activities.
The tech (-0.3%) sector looked as if it was poised to outperform after Research In Motion (RIMM 122.32, +6.53) topped earnings expectations. However, word of more than expected layoffs at Dell (DELL 19.78, -0.17), Cisco (CSCO 24.27, -0.69) being downgraded to Neutral from Buy, and a disappointing outlook from Garmin (GRMN 54.14, -2.17) has sent the sector into a laggard position.
Fed Chairman Bernanke, New York Fed President Geithner and SEC Chairman Cox are testifying on the Bear Stearns (BSC 10.86, 0.00) collapse before the Senate Banking Committee.
Bernanke's speech was basically a compressed version of his testimony on Wednesday before the Joint Economic Committee.
The officials are currently answering questions from Senate Banking Committee members. Fed Chairman Bernanke stated the Fed did not have any interest the price Bear Stearns was sold for, and just wanted the company's debt to be assumed by a strong company.
DJ30 -10.50 NASDAQ -5.25 SP500 +0.04 NASDAQ Dec/Adv/Vol 1552/1135/781 mln NYSE Dec/Adv/Vol 1517/1449/473 mln
11:30 am : The major indices are fluctuating modestly below the unchanged mark as Fed Chairman Bernanke, SEC Chairman Cox, and New York Fed President Geithner answer questions from Senate Banking Committee members.
Bernanke said the Fed made sure multiple firms were able to talk to Bear Stearns (BSC 10.76, -0.10) regarding a bailout. He stated the Fed did not have any interest in price, and that it just wanted the company's debt to be assumed by a strong company.
Cox noted that it was JPMorgan Chase's (JPM 45.74, -0.50) idea to use the Fed's capital to facilitate the deal.DJ30 -44.29 NASDAQ -14.06 SP500 -4.45 NASDAQ Dec/Adv/Vol 1660/986/658 mln NYSE Dec/Adv/Vol 1723/1206/397 mln
11:00 am : The major indices are falling back toward their session lows. Energy stocks (+0.8%) are outperforming. Crude is now up 0.8% to $105.64 per barrel after reversing earlier losses when it was down 1.6%. The two most heavily-weighted sectors--financials (-1.1%) and tech (-1.1%)--are the main laggards.
Bernanke's speech was basically a compressed version of his testimony on Wednesday before the Joint Economic Committee. As a result, the market did not show much reaction to the speech. He will be answering questions, which may produce new information. New York Fed President Geithner is currently testifying.DJ30 -59.84 NASDAQ -21.01 SP500 -7.13 NASDAQ Dec/Adv/Vol 1705/870/548 mln NYSE Dec/Adv/Vol 1822/1061/327 mln
10:30 am : After climbing near the unchanged mark, the major indices are back on the decline. Although Research In Motion (RIMM 121.11, +5.32) posted strong earnings and a strong outlook, the tech sector (-0.8%) is underperforming. Traders are disappointed with Garmin's (GRNM 53.70, -2.71) outlook, and that Cisco (CSCO 24.16, -0.80) was downgraded to Neutral from Buy at UBS.
Fed Chairman Bernanke has yet to testify before the Banking Committee. His prepared remarks that have already crossed the wires have not provided the market with any revelations.DJ30 -48.93 NASDAQ -14.00 SP500 -4.98 NASDAQ Dec/Adv/Vol 1532/955/418 mln NYSE Dec/Adv/Vol 1742/1071/246 mln
10:05 am : The major indices come off their worst levels on a better than expected economic reading, but remain in the red. Just hitting the wires, the March ISM Services reading rose to 49.6 from 49.3. This topped the expected reading of 48.5. Because the number is below 50, it reflects a contraction in non-manufacturing activities.
Six of the ten economic sectors are in negative territory. Financials are leading the way lower. Lehman Brothers lowered its earnings estimates on Goldman Sachs (GS 174.70, -2.17), Morgan Stanley (MS 48.27, -0.82) and Merrill Lynch (MER 44.66, -0.68), while Goldman lowered its earnings estimates on Lehman Bros. (LEH 43.07, -1.00).
The testimony on Capitol Hill is getting underway. Briefing.com will provide updates as developments occur.DJ30 -14.49 NASDAQ -6.54 SP500 -1.65 NASDAQ Dec/Adv/Vol 1433/923/243 NYSE Dec/Adv/Vol 1509/1199/153 mln
09:40 am : The major indices open on a low note after weekly initial jobless claims unexpectedly rose. New unemployment claims for the week ended March 29 jumped to 407,000 from 369,000. Economists expected 366,000 claims. This is the highest level of claims since 2005, and will be seen as a negative for the market.
Market participants await the 10:00 ET testimony before the Senate Banking Committee from Ben Bernanke, SEC Chairman Cox, New York Fed President Geithner, and the CEOs from Bear Stearns and JPMorgan Chase. They will be talking about the Bear Stearns collapse and bailout.DJ30 -58.70 NASDAQ -15.46 SP500 -7.07
09:16 am : S&P futures vs fair value: -8.9. Nasdaq futures vs fair value: -11.0.
09:00 am : S&P futures vs fair value: -8.3. Nasdaq futures vs fair value: -12.2. Futures continue to point to a negative start to trading following the higher than expected initial jobless claims reading.
08:32 am : S&P futures vs fair value: -6.2. Nasdaq futures vs fair value: -9.0. Futures fall on a worse than expected intial jobless claims reading. New unemployment claims for the week ended March 29 jumped to 407,000 from 369,000. Economists expected 366,000 claims. In other news, Lehman Brothers lowered its earnings estimates on Goldman Sachs (GS), Morgan Stanley (MS) and Merrill Lynch (MER). Meanwhile, Goldman lowered its earnings estimates on Lehman.
08:05 am : S&P futures vs fair value: -2.0. Nasdaq futures vs fair value: +0.5. Futures point to a muted start to trading. Research In Motion (RIMM) reported earnings and an outlook that topped expectations. UBS downgraded Cisco to Neutral from Buy. Fed Chairman Ben Bernanke will be joined by SEC Chairmon Cox and New York Fed Geithner to testify before the Senate Banking Committee at 10:00 ET. In economic news, market participants will get the March ISM services reading at 10:00 ET.
06:18 am : S&P futures vs fair value: -1.3. Nasdaq futures vs fair value: +3.8.
06:18 am : FTSE...5908.90...-7.00...-0.1%. DAX...6751.42...-26.02...-0.4%.
06:18 am : Nikkei...13389.90...+200.54...+1.5%. Hang Seng...24264.63...+392.20...+1.6%.
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