AI
Friday, April 11, 2008 9:36:10 PM
Market Update 080411
http://biz.yahoo.com/mu/update.html
4:15 pm : Due to General Electric’s (GE 32.05, -4.70) massive 2.8% S&P 500 weighting and wide-range of businesses, the market pays attention when it provides a disappointing outlook.
Then it should come as no surprise that stocks got clipped on Friday after GE--the second largest U.S. company by market cap behind Exxon Mobil (XOM 88.62, -0.93)--reported earnings that handily missed estimates and provided a disappointing outlook.
GE’s first quarter earnings from continuing operations slipped 8% to $0.44 per share, which fell short of the $0.51 consensus estimate. Its revenue missed expectations by $1.5 billion. The company cited weakness in its financial services business as the main factor behind its earnings miss.
Looking ahead, GE expects second quarter earnings per share will fall short of the consensus estimate by three to five cents per share. For full year 2008, GE expects to earn between $2.20 and $2.30 per share, versus the $2.43 consensus.
The news shocked the market, considering in January GE said it expected first quarter earnings per share would be in the range of $0.50 and $0.53. Analysts generally expected decent earnings from GE--especially since the company typically reports earnings near its guidance.
As a result, the company’s shares lost 12.8%, which marks the largest one-day percent decline since the 17.5% plummet on Black Monday--which occurred more than 20 years ago in 1987.
Economic data also disappointed, although the market’s response was somewhat muted. The April University of Michigan confidence survey fell to 63.2 from 69.5. This fell short of the expected reading of 69.0, and marks the lowest consumer confidence since March 1982.
The bearish news weighed on stocks, with nine of the ten economic sectors ending the day with a loss. Of the 137 industry groups, 128 posted a loss, which paints a better picture of the broad-based weakness.
The industrials sector (-4.6%) posted the largest loss, while defensive-oriented utilities (unch) outperformed on a relative basis.
The Amex Airline Index got clipped 7.6%, extending its yearly decline to 29%. Frontier Airlines (FRNT 0.48, -1.09) sparked the selling interest after it filed for Chapter 11 bankruptcy protection. However, not all airlines posted a loss. Delta (DAL 10.01, +0.26) and Northwest (NWA 10.92, +0.09) rose on speculation they will soon announce a merger.
Treasuries saw buying interest as investors sought safety. The benchmark 10-year note gained 18 ticks, sending its yield down to 3.47%.
For the week, the Dow lost 2.3%, the Nasdaq shed 3.4% and the S&P fell 2.7%. The CRB Commodity Index gained 3.1%, with oil gaining 3.9%.
DJ30 -256.56 NASDAQ -61.46 NQ100 -2.9% R2K -2.7% SP400 -1.8% SP500 -27.72 NASDAQ Dec/Adv/Vol 2284/588/1.89 bln NYSE Dec/Adv/Vol 2397/724/1.26 bln
3:30 pm : The major indices continue to trade with steep losses as we head into the final half-hour of trade. The utilities sector (+0.4%) has recovered into the green, but all other economic sectors are posting a loss.
Next week stands to be an interesting one, with several major financial firms reporting earnings, including JP Morgan Chase (JPM 42.77, -1.09), Wells Fargo (WFC 28.26, -0.26), Merrill Lynch (MER 43.82, -0.85) and Citigroup (C 23.46, -0.25) to name a few. There will also be market moving economic reports, including PPI, CPI and retail sales.DJ30 -230.99 NASDAQ -57.07 SP500 -23.62 NASDAQ Dec/Adv/Vol 2282/581/1.53 bln NYSE Dec/Adv/Vol 2385/716/955 mln
3:00 pm : The stock market is trading near its session low. General Electric's (GE 32.04, -4.71) disappointing earnings report set the negative tone this session.
As we head into the final hour of the session, the S&P 500 is set to end the week 2.3% lower. The industrials sector is down the most with a 5.7% slide. Only the energy sector stands to post a gain, although it is modest at 0.7%. It benefited from a 3.8% spike in crude oil prices.DJ30 -221.95 NASDAQ -53.87 SP500 -22.50 NASDAQ Dec/Adv/Vol 2247/587/1.37 bln NYSE Dec/Adv/Vol 2336/765/860 mln
2:30 pm : The major indices remain under pressure as they slide to fresh lows.
The worst performing industry groups are industrial conglomerates (-10.6%), IT consulting (-4.9%) and semiconductor equipment (-4.4%). The best performing groups are home furnishing retail (+2.3%), real estate management & development (+0.9%) and hypermarkets & supercenters (+0.5%).DJ30 -228.79 NASDAQ -53.85 SP500 -23.10 NASDAQ Dec/Adv/Vol 2216/608/1.28 bln NYSE Dec/Adv/Vol 2374/727/797 mln
2:00 pm : The stock market extends its losses, as sellers remain in control.
Within the S&P 500, 17% of stocks are posting a gain. Agriculture chemical company Monsanto (MON 121.34, +1.07), and Wal-Mart (WMT 54.99, +0.33) are leading the way. General Electric (GE 32.04, -4.71) and Apple (AAPL 148.00, -6.55) are the main laggards.DJ30 -207.54 NASDAQ -50.22 SP500 -21.68 NASDAQ Dec/Adv/Vol 2179/623/1.15 bln NYSE Dec/Adv/Vol 2316/760/717 mln
1:30 pm : The stock market is unable to stave off selling pressure as it falls to fresh session lows. The tech-heavy Nasdaq 100 is showing notable weakness with a 2.3% decline.
Within the Nasdaq 100, 88% of stocks are trading lower. Apple (AAPL 149.84, -4.71), Research In Motion (RIMM 116.86, -3.82) and Microsoft (MSFT 28.51, -0.60) are the main laggards. Teva Pharmaceutical (TEVA 46.86, +0.74) is showing the most strength.DJ30 -189.47 NASDAQ -45.69 SP500 -20.09 NASDAQ Dec/Adv/Vol 2090/681/1.05 bln NYSE Dec/Adv/Vol 2262/803/659 mln
1:00 pm : Selling pressures ease as the major indices trade slightly above their recently reached lows. Market breadth is bearish. Decliners outpace advancers by 8-to-3 on the NYSE, and by more than 3-to-1 on the Nasdaq.
The stock market has remained in negative territory throughout the session. It has traded down by as much as 1.5%.DJ30 -169.79 NASDAQ -39.95 SP500 -18.02 NASDAQ Dec/Adv/Vol 2079/677/957 mln NYSE Dec/Adv/Vol 2208/825/605 mln
12:30 pm : The major indices fall to fresh session lows. There is no apparent catalyst for the selling interest, and the decline has been broad-based. All ten sectors are in the red, and six are down more than 1%.DJ30 -183.52 NASDAQ -42.76 SP500 -20.09 NASDAQ Dec/Adv/Vol 2077/639/874 mln NYSE Dec/Adv/Vol 2256/768/557 mln
12:00 pm : The second largest company by market cap provided a disappointing earnings report and outlook, so it should come as no surprise that the stock market is posting hefty declines at midday. Each of the major indices are down at least 1%.
General Electric (GE 32.52, -4.23) has a massive 2.8% S&P 500 weighting, which makes it the second largest company behind Exxon Mobil’s (XOM 89.11, -0.44) 4.1% weighting. Given GE’s massive size and conglomerate nature, the market listens when it provides a disappointing outlook.
GE’s first quarter earnings slipped 6% to $0.44 per share, which falls short of the consensus estimate of $0.51. Its revenue fell $1.5 billion short of market expectations. The company cited weakness in its financial services business as the main factor behind its earnings miss.
Looking ahead, GE expects second quarter earnings per share will fall short of the consensus estimate by three to five cents per share. For full year 2008, GE expects to earn between $2.20 and $2.30 per share, versus the $2.43 consensus.
The news has shocked the market, as analysts generally expected decent earnings from GE--especially since the company typically reports earnings near its guidance. Several brokerages have lowered their ratings on GE. As a result, the company’s shares are down 11.5%, which marks the largest one-day percent decline since the 17.5% plummet on Black Monday--which occurred more than 20 years ago in 1987.
Economic data were nothing for the bulls to cheer about either. The April University of Michigan confidence survey fell to 63.2 from 69.5. This fell short of the expected reading of 69.0, and marks the lowest consumer confidence since March 1982.
In turn, nine of the ten economic sectors are posting a loss, with 103 of the 137 industry groups trending lower. Industrials (-3.6%) are seeing the most selling pressure in the wake of GE’s report. The defensive-oriented utilities sector (+0.1%) stands alone in positive territory.
Of note, the financial sector (-0.3%) is holding up pretty well despite GE citing weakness in financial services. However, the sector is underperforming for the week with a 3.1% decline versus the market's 1.9% slide.
Treasuries are seeing buying interest as investors seek safety. The benchmark 10-year note is up 19 ticks, sending its yield down to 3.47%.DJ30 -148.02 NASDAQ -32.05 SP500 -15.29 NASDAQ Dec/Adv/Vol 1921/761/754 mln NYSE Dec/Adv/Vol 2065/927/485 mln
11:30 am : The major indices continue to post hefty losses. The recovery effort has faded as financials (-0.2%) fall back into the red.
In commodity trading, crude is down 0.6% to $109.41 per barrel, and gold is down 0.8% to $921.30 per ounce. As a whole commodities are down 0.3%.
The Dollar Index (-0.4%) is also facing some selling pressure. The euro has gained 0.55% against the dollar, while the dollar has lost 0.90% against the yen.DJ30 -146.31 NASDAQ -33.21 SP500 -15.21 NASDAQ Dec/Adv/Vol 1935/738/674 mln NYSE Dec/Adv/Vol 2096/893/430 mln
10:55 am : The major indices are posting steep losses, but are managing to climb off their lows.
Interestingly, financials (+0.4%) are exhibiting some relative strength this session after trading down more than 1.2%. This comes in the face of General Electric (GE 32.76, -3.99) citing its earnings miss was largely due to weakness in financial services. In addition, Goldman more than tripled its expected loss for Washington Mutual (WM 11.43, +0.01), according to Bloomberg.com.
Financials are getting a boost from several industry groups, including real estate management & development (+2.0%), property & casualty insurance (+1.1%), and diversified banks (+1.0%).DJ30 -133.45 NASDAQ -28.48 SP500 -12.52 NASDAQ Dec/Adv/Vol 1836/704/541 mln NYSE Dec/Adv/Vol 2017/901/343 mln
10:30 am : The major indices climb off their worst levels, but continue to post substantial losses. The defensive utilities sector has made it into positive territory, although the nine other sectors remain in the red.
The Amex Airline Index is down 3.5% this session, extending its yearly loss to 26%. Frontier Airlines (FRNT 0.43, -1.14) is posting a massive 73% decline after filing for Chapter 11 bankruptcy protection. The airline said its primary credit card processor is attempting to substantially increase a "holdback" of customer receipts, which threatened Frontier's liquidity. It will continue normal business operations through the reorganization process.
Not all airlines are trending lower. Delta (DAL 10.18, +0.43) and Northwest (NWA 11.11, +0.24) are trading higher on reports they will soon announce a merger after reaching a tentative agreement with the pilots. The firms were also upgraded to Outperform from Neutral at Credit Suisse.DJ30 -159.81 NASDAQ -31.99 SP500 -15.63 NASDAQ Dec/Adv/Vol 1918/574/418 mln NYSE Dec/Adv/Vol 2209/665/262 mln
10:05 am : Shares of General Electric (GE 32.68, -4.07) continue to get trampled on its disappointing earnings and outlook. GE's shares are down 11.1%, marking the largest one-day percent decline since the 17.5% drop on Black Monday--which occured more than 20 years ago in 1987.
Recently reported, the April University of Michigan Confidence survey fell to 63.2 from 69.5. Economists expected a reading of 69.0. Stocks had a negative reaction to the report.
The major indices are trading near their worst levels, with losses of more than 1%. All ten economic sectors are trending lower, with industrials (-3.8%) taking the largest hit.DJ30 -142.73 NASDAQ -30.30 SP500 -16.01 NASDAQ Dec/Adv/Vol 1840/540/249 mln NYSE Dec/Adv/Vol 2258/535/164 mln
09:40 am : The major indices open on a sharply lower note in the wake of disappointing earnings from General Electric (GE 32.63, -4.12). The massive conglomerate said it earned $0.44 per share in the first quarter, which falls short of the consensus estimate of $0.51. Its revenue came in at $42.2 billion, which missed the consensus estimate of $43.7 billion. The company also provided a disappointing outlook for all of 2008.
GE holds a 3.1% weighting in the S&P 500, so its 11% decline is acting as a notable drag.DJ30 -138.01 NASDAQ -28.70 SP500 -16.16
09:16 am : S&P futures vs fair value: -13.7. Nasdaq futures vs fair value: -24.8.
09:00 am : S&P futures vs fair value: -14.8. Nasdaq futures vs fair value: -27.0. A bearish bias persits in futures trade. Goldman Sachs cut its earnings estimate on Washington Mutual (WM) and recommended selling its shares short, according to Bloomberg.com. Goldman believes WaMu will post a loss of $3.30 per share this year, compared to its previous forecast of a $1.00 loss, according to the report. Just last week WaMu raised $7 billion in capital in an effort to shore up its balance sheet.
08:30 am : S&P futures vs fair value: -14.4. Nasdaq futures vs fair value: -18.5. It is shaping up to be a sharply lower start to the trading day. March import prices rose 2.8% month over month, which is larger than the expected 2.0% increase. Year-over-year, imported prices are up 14.8%.
08:00 am : S&P futures vs fair value: -10.1. Nasdaq futures vs fair value: -10.5. Futures point to a negative start after erasing early gains. Bellwether General Electric (GE) provided a disappointing earnings report and outlook, citing weakness in financial services. GE said it earned $0.44 per share in the first quarter, which falls short of the consensus estimate of $0.51. Its revenue came in at $42.2 billion, which missed the consensus estimate of $43.7 billion. Looking ahead, GE expects its second quarter earnings per share will be $0.53 to $0.55 per share, which misses the expected earnings of $0.58. For full year 2008, GE expects to earn between $2.20 and $2.30 per share, versus the $2.43 consensus. European markets fell into the red after GE's report, with the FTSE shedding 0.9% and the Dax down 1.2%.
06:20 am : S&P futures vs fair value: +4.9. Nasdaq futures vs fair value: +5.5.
06:18 am : FTSE...6000.90...+35.80...+0.6%. DAX...6726.00...+21.83...+0.3%.
06:18 am : Nikkei...13323.73...+378.43...+2.9%. Hang Seng...24667.79...+480.69...+2.0%.
http://biz.yahoo.com/mu/update.html
4:15 pm : Due to General Electric’s (GE 32.05, -4.70) massive 2.8% S&P 500 weighting and wide-range of businesses, the market pays attention when it provides a disappointing outlook.
Then it should come as no surprise that stocks got clipped on Friday after GE--the second largest U.S. company by market cap behind Exxon Mobil (XOM 88.62, -0.93)--reported earnings that handily missed estimates and provided a disappointing outlook.
GE’s first quarter earnings from continuing operations slipped 8% to $0.44 per share, which fell short of the $0.51 consensus estimate. Its revenue missed expectations by $1.5 billion. The company cited weakness in its financial services business as the main factor behind its earnings miss.
Looking ahead, GE expects second quarter earnings per share will fall short of the consensus estimate by three to five cents per share. For full year 2008, GE expects to earn between $2.20 and $2.30 per share, versus the $2.43 consensus.
The news shocked the market, considering in January GE said it expected first quarter earnings per share would be in the range of $0.50 and $0.53. Analysts generally expected decent earnings from GE--especially since the company typically reports earnings near its guidance.
As a result, the company’s shares lost 12.8%, which marks the largest one-day percent decline since the 17.5% plummet on Black Monday--which occurred more than 20 years ago in 1987.
Economic data also disappointed, although the market’s response was somewhat muted. The April University of Michigan confidence survey fell to 63.2 from 69.5. This fell short of the expected reading of 69.0, and marks the lowest consumer confidence since March 1982.
The bearish news weighed on stocks, with nine of the ten economic sectors ending the day with a loss. Of the 137 industry groups, 128 posted a loss, which paints a better picture of the broad-based weakness.
The industrials sector (-4.6%) posted the largest loss, while defensive-oriented utilities (unch) outperformed on a relative basis.
The Amex Airline Index got clipped 7.6%, extending its yearly decline to 29%. Frontier Airlines (FRNT 0.48, -1.09) sparked the selling interest after it filed for Chapter 11 bankruptcy protection. However, not all airlines posted a loss. Delta (DAL 10.01, +0.26) and Northwest (NWA 10.92, +0.09) rose on speculation they will soon announce a merger.
Treasuries saw buying interest as investors sought safety. The benchmark 10-year note gained 18 ticks, sending its yield down to 3.47%.
For the week, the Dow lost 2.3%, the Nasdaq shed 3.4% and the S&P fell 2.7%. The CRB Commodity Index gained 3.1%, with oil gaining 3.9%.
DJ30 -256.56 NASDAQ -61.46 NQ100 -2.9% R2K -2.7% SP400 -1.8% SP500 -27.72 NASDAQ Dec/Adv/Vol 2284/588/1.89 bln NYSE Dec/Adv/Vol 2397/724/1.26 bln
3:30 pm : The major indices continue to trade with steep losses as we head into the final half-hour of trade. The utilities sector (+0.4%) has recovered into the green, but all other economic sectors are posting a loss.
Next week stands to be an interesting one, with several major financial firms reporting earnings, including JP Morgan Chase (JPM 42.77, -1.09), Wells Fargo (WFC 28.26, -0.26), Merrill Lynch (MER 43.82, -0.85) and Citigroup (C 23.46, -0.25) to name a few. There will also be market moving economic reports, including PPI, CPI and retail sales.DJ30 -230.99 NASDAQ -57.07 SP500 -23.62 NASDAQ Dec/Adv/Vol 2282/581/1.53 bln NYSE Dec/Adv/Vol 2385/716/955 mln
3:00 pm : The stock market is trading near its session low. General Electric's (GE 32.04, -4.71) disappointing earnings report set the negative tone this session.
As we head into the final hour of the session, the S&P 500 is set to end the week 2.3% lower. The industrials sector is down the most with a 5.7% slide. Only the energy sector stands to post a gain, although it is modest at 0.7%. It benefited from a 3.8% spike in crude oil prices.DJ30 -221.95 NASDAQ -53.87 SP500 -22.50 NASDAQ Dec/Adv/Vol 2247/587/1.37 bln NYSE Dec/Adv/Vol 2336/765/860 mln
2:30 pm : The major indices remain under pressure as they slide to fresh lows.
The worst performing industry groups are industrial conglomerates (-10.6%), IT consulting (-4.9%) and semiconductor equipment (-4.4%). The best performing groups are home furnishing retail (+2.3%), real estate management & development (+0.9%) and hypermarkets & supercenters (+0.5%).DJ30 -228.79 NASDAQ -53.85 SP500 -23.10 NASDAQ Dec/Adv/Vol 2216/608/1.28 bln NYSE Dec/Adv/Vol 2374/727/797 mln
2:00 pm : The stock market extends its losses, as sellers remain in control.
Within the S&P 500, 17% of stocks are posting a gain. Agriculture chemical company Monsanto (MON 121.34, +1.07), and Wal-Mart (WMT 54.99, +0.33) are leading the way. General Electric (GE 32.04, -4.71) and Apple (AAPL 148.00, -6.55) are the main laggards.DJ30 -207.54 NASDAQ -50.22 SP500 -21.68 NASDAQ Dec/Adv/Vol 2179/623/1.15 bln NYSE Dec/Adv/Vol 2316/760/717 mln
1:30 pm : The stock market is unable to stave off selling pressure as it falls to fresh session lows. The tech-heavy Nasdaq 100 is showing notable weakness with a 2.3% decline.
Within the Nasdaq 100, 88% of stocks are trading lower. Apple (AAPL 149.84, -4.71), Research In Motion (RIMM 116.86, -3.82) and Microsoft (MSFT 28.51, -0.60) are the main laggards. Teva Pharmaceutical (TEVA 46.86, +0.74) is showing the most strength.DJ30 -189.47 NASDAQ -45.69 SP500 -20.09 NASDAQ Dec/Adv/Vol 2090/681/1.05 bln NYSE Dec/Adv/Vol 2262/803/659 mln
1:00 pm : Selling pressures ease as the major indices trade slightly above their recently reached lows. Market breadth is bearish. Decliners outpace advancers by 8-to-3 on the NYSE, and by more than 3-to-1 on the Nasdaq.
The stock market has remained in negative territory throughout the session. It has traded down by as much as 1.5%.DJ30 -169.79 NASDAQ -39.95 SP500 -18.02 NASDAQ Dec/Adv/Vol 2079/677/957 mln NYSE Dec/Adv/Vol 2208/825/605 mln
12:30 pm : The major indices fall to fresh session lows. There is no apparent catalyst for the selling interest, and the decline has been broad-based. All ten sectors are in the red, and six are down more than 1%.DJ30 -183.52 NASDAQ -42.76 SP500 -20.09 NASDAQ Dec/Adv/Vol 2077/639/874 mln NYSE Dec/Adv/Vol 2256/768/557 mln
12:00 pm : The second largest company by market cap provided a disappointing earnings report and outlook, so it should come as no surprise that the stock market is posting hefty declines at midday. Each of the major indices are down at least 1%.
General Electric (GE 32.52, -4.23) has a massive 2.8% S&P 500 weighting, which makes it the second largest company behind Exxon Mobil’s (XOM 89.11, -0.44) 4.1% weighting. Given GE’s massive size and conglomerate nature, the market listens when it provides a disappointing outlook.
GE’s first quarter earnings slipped 6% to $0.44 per share, which falls short of the consensus estimate of $0.51. Its revenue fell $1.5 billion short of market expectations. The company cited weakness in its financial services business as the main factor behind its earnings miss.
Looking ahead, GE expects second quarter earnings per share will fall short of the consensus estimate by three to five cents per share. For full year 2008, GE expects to earn between $2.20 and $2.30 per share, versus the $2.43 consensus.
The news has shocked the market, as analysts generally expected decent earnings from GE--especially since the company typically reports earnings near its guidance. Several brokerages have lowered their ratings on GE. As a result, the company’s shares are down 11.5%, which marks the largest one-day percent decline since the 17.5% plummet on Black Monday--which occurred more than 20 years ago in 1987.
Economic data were nothing for the bulls to cheer about either. The April University of Michigan confidence survey fell to 63.2 from 69.5. This fell short of the expected reading of 69.0, and marks the lowest consumer confidence since March 1982.
In turn, nine of the ten economic sectors are posting a loss, with 103 of the 137 industry groups trending lower. Industrials (-3.6%) are seeing the most selling pressure in the wake of GE’s report. The defensive-oriented utilities sector (+0.1%) stands alone in positive territory.
Of note, the financial sector (-0.3%) is holding up pretty well despite GE citing weakness in financial services. However, the sector is underperforming for the week with a 3.1% decline versus the market's 1.9% slide.
Treasuries are seeing buying interest as investors seek safety. The benchmark 10-year note is up 19 ticks, sending its yield down to 3.47%.DJ30 -148.02 NASDAQ -32.05 SP500 -15.29 NASDAQ Dec/Adv/Vol 1921/761/754 mln NYSE Dec/Adv/Vol 2065/927/485 mln
11:30 am : The major indices continue to post hefty losses. The recovery effort has faded as financials (-0.2%) fall back into the red.
In commodity trading, crude is down 0.6% to $109.41 per barrel, and gold is down 0.8% to $921.30 per ounce. As a whole commodities are down 0.3%.
The Dollar Index (-0.4%) is also facing some selling pressure. The euro has gained 0.55% against the dollar, while the dollar has lost 0.90% against the yen.DJ30 -146.31 NASDAQ -33.21 SP500 -15.21 NASDAQ Dec/Adv/Vol 1935/738/674 mln NYSE Dec/Adv/Vol 2096/893/430 mln
10:55 am : The major indices are posting steep losses, but are managing to climb off their lows.
Interestingly, financials (+0.4%) are exhibiting some relative strength this session after trading down more than 1.2%. This comes in the face of General Electric (GE 32.76, -3.99) citing its earnings miss was largely due to weakness in financial services. In addition, Goldman more than tripled its expected loss for Washington Mutual (WM 11.43, +0.01), according to Bloomberg.com.
Financials are getting a boost from several industry groups, including real estate management & development (+2.0%), property & casualty insurance (+1.1%), and diversified banks (+1.0%).DJ30 -133.45 NASDAQ -28.48 SP500 -12.52 NASDAQ Dec/Adv/Vol 1836/704/541 mln NYSE Dec/Adv/Vol 2017/901/343 mln
10:30 am : The major indices climb off their worst levels, but continue to post substantial losses. The defensive utilities sector has made it into positive territory, although the nine other sectors remain in the red.
The Amex Airline Index is down 3.5% this session, extending its yearly loss to 26%. Frontier Airlines (FRNT 0.43, -1.14) is posting a massive 73% decline after filing for Chapter 11 bankruptcy protection. The airline said its primary credit card processor is attempting to substantially increase a "holdback" of customer receipts, which threatened Frontier's liquidity. It will continue normal business operations through the reorganization process.
Not all airlines are trending lower. Delta (DAL 10.18, +0.43) and Northwest (NWA 11.11, +0.24) are trading higher on reports they will soon announce a merger after reaching a tentative agreement with the pilots. The firms were also upgraded to Outperform from Neutral at Credit Suisse.DJ30 -159.81 NASDAQ -31.99 SP500 -15.63 NASDAQ Dec/Adv/Vol 1918/574/418 mln NYSE Dec/Adv/Vol 2209/665/262 mln
10:05 am : Shares of General Electric (GE 32.68, -4.07) continue to get trampled on its disappointing earnings and outlook. GE's shares are down 11.1%, marking the largest one-day percent decline since the 17.5% drop on Black Monday--which occured more than 20 years ago in 1987.
Recently reported, the April University of Michigan Confidence survey fell to 63.2 from 69.5. Economists expected a reading of 69.0. Stocks had a negative reaction to the report.
The major indices are trading near their worst levels, with losses of more than 1%. All ten economic sectors are trending lower, with industrials (-3.8%) taking the largest hit.DJ30 -142.73 NASDAQ -30.30 SP500 -16.01 NASDAQ Dec/Adv/Vol 1840/540/249 mln NYSE Dec/Adv/Vol 2258/535/164 mln
09:40 am : The major indices open on a sharply lower note in the wake of disappointing earnings from General Electric (GE 32.63, -4.12). The massive conglomerate said it earned $0.44 per share in the first quarter, which falls short of the consensus estimate of $0.51. Its revenue came in at $42.2 billion, which missed the consensus estimate of $43.7 billion. The company also provided a disappointing outlook for all of 2008.
GE holds a 3.1% weighting in the S&P 500, so its 11% decline is acting as a notable drag.DJ30 -138.01 NASDAQ -28.70 SP500 -16.16
09:16 am : S&P futures vs fair value: -13.7. Nasdaq futures vs fair value: -24.8.
09:00 am : S&P futures vs fair value: -14.8. Nasdaq futures vs fair value: -27.0. A bearish bias persits in futures trade. Goldman Sachs cut its earnings estimate on Washington Mutual (WM) and recommended selling its shares short, according to Bloomberg.com. Goldman believes WaMu will post a loss of $3.30 per share this year, compared to its previous forecast of a $1.00 loss, according to the report. Just last week WaMu raised $7 billion in capital in an effort to shore up its balance sheet.
08:30 am : S&P futures vs fair value: -14.4. Nasdaq futures vs fair value: -18.5. It is shaping up to be a sharply lower start to the trading day. March import prices rose 2.8% month over month, which is larger than the expected 2.0% increase. Year-over-year, imported prices are up 14.8%.
08:00 am : S&P futures vs fair value: -10.1. Nasdaq futures vs fair value: -10.5. Futures point to a negative start after erasing early gains. Bellwether General Electric (GE) provided a disappointing earnings report and outlook, citing weakness in financial services. GE said it earned $0.44 per share in the first quarter, which falls short of the consensus estimate of $0.51. Its revenue came in at $42.2 billion, which missed the consensus estimate of $43.7 billion. Looking ahead, GE expects its second quarter earnings per share will be $0.53 to $0.55 per share, which misses the expected earnings of $0.58. For full year 2008, GE expects to earn between $2.20 and $2.30 per share, versus the $2.43 consensus. European markets fell into the red after GE's report, with the FTSE shedding 0.9% and the Dax down 1.2%.
06:20 am : S&P futures vs fair value: +4.9. Nasdaq futures vs fair value: +5.5.
06:18 am : FTSE...6000.90...+35.80...+0.6%. DAX...6726.00...+21.83...+0.3%.
06:18 am : Nikkei...13323.73...+378.43...+2.9%. Hang Seng...24667.79...+480.69...+2.0%.
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