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Market Update 080418
http://biz.yahoo.com/mu/update.html
4:25 pm : Friday's trading concluded with hefty gains for investors. The stock market finished the session 1.8% higher, which positioned it to end the week 4.3% higher.

The positive tone to Friday's trading was apparent from the start. A positive earnings surprise from Google (GOOG 539.41, +89.87) helped set the tone. The company announced after yesterday's close that earnings for its most recent quarter totaled $4.84 per share, which was better than the $4.52 per share that analysts expected. Google's strong performance helped the tech sector (+3.4%) outperform the other major economic sectors.

Citigroup (C 25.11, +1.08) announced this morning a $5 billion loss, or $1.02 per share, for its most recent quarter, amid $12 billion in write-downs and asset adjustments. Though the quarter's loss was worse than Wall Street expected, investors viewed the news as better than feared. In turn, Citi traded noticeably higher, providing leadership to the financial sector (+1.8%).

Investment banks and brokerages (+3.4%) also lent support to the financial sector, helping it for the second consecutive session. Goldman Sachs (GS 179.93, +7.83) and Lehman Brothers (LEH 45.50, +1.86) were leaders in the group.

The session's broad-based buying interest was helped by industrial players Honeywell (HON 60.99, +3.59) and Caterpillar (CAT 85.28, +6.69). Both companies announced better than expected quarterly profits this morning.

Crude oil hit $117 per barrel in electronic trading, which is a new all-time high. The commodity closed up $1.68 at $116.54 per barrel on the Nymex, which is a new closing high.

Oil driller Schlumberger (SLB 101.85, +6.55) made sizeable gains Friday. The company actually reported earnings for its most recent quarter that missed expectations. But investors considered the miss and the rise in oil as a buying opportunity. The energy sector finished 1.9% higher.

With the buying interest strongly focused on stocks, the 10-year Treasury note was largely out of favor Friday. The yield on the 10-year note climbed to more than 3.8%, its highest level in more than a month. However, buying interest returned to the 10-year Treasury late in the day; it finished one tick higher, yielding 3.72%.DJ30 +228.87 NASDAQ +61.14 NQ100 +3.2% R2K +1.8% SP400 +1.5% SP500 +24.77 NASDAQ Dec/Adv/Vol 810/2132/2.21 bln NYSE Dec/Adv/Vol 692/2434/1.48 bln

3:30 pm : Heading into the final leg of trading, profit takers are entering the fold. Though the major indices remain well into positive territory, buying interest is waning.

Financials (+1.5%) have lost some ground late in the trading day. Tech (+3.3%) has been a consistent performer, helped by Google's (GOOG 539.83, +90.29) positive earnings surprise.DJ30 +200.46 NASDAQ +57.10 SP500 +20.54 NASDAQ Dec/Adv/Vol 835/2076/1.86 bln NYSE Dec/Adv/Vol 784/2328/1.18 bln

3:00 pm : The stock market has surrendered a portion of Friday's gains. The S&P 500 was up more than 2.0% at its best level of the session, but is now up 1.8%.

Crude oil closed on the Nymex at $116.54 per barrel, which is a new closing record. Crude also hit a new intraday record of $117.00 in electronic trading earlier this session. Oil prices are up more than 23% this year.

With the rise in oil prices, the energy sector (+1.5%) has been a strong performer. The sector has had considerable help from Schlumberger (SLB 100.34, +5.04).DJ30 +237.50 NASDAQ +62.63 SP500 +25.49 NASDAQ Dec/Adv/Vol 796/2087/1.70 bln NYSE Dec/Adv/Vol 683/2411/1.08 bln

2:30 pm : After a brief dip, the stock market is heading back toward its session highs. The stock market has rebounded 10.8% from its 52-week low that was reached on March 17. Conversely, it is still down 11.7% from its 52-week high hit back on Oct. 11, 2007.

The dollar is catching a bid, as it rises 0.64% against a basket of major currencies. The euro is down 1.01% against the dollar, and the dollar has gained 1.90% against the yen. This session's better than expected earnings reports have lifted investor sentiment, which is causing traders to ease rate cut bets ahead of the Fed's next meeting on April 30. Traders expect a 86% chance of a 25 basis point rate cut, with the rest of the odds suggesting the Fed will take no action. Yesterday, there was an 18% chance for a 50 basis point cut, with the rest of the odds on a 25 basis point cut.DJ30 +228.95 NASDAQ +61.47 SP500 +24.03 NASDAQ Dec/Adv/Vol 761/2093/1.57 bln NYSE Dec/Adv/Vol 686/2405/1.01 bln

2:00 pm : The stock market remains on track for a strong finish. Week-to-date the Dow Jones is up 4.5%, the Nasdaq is up 5.2%, and the S&P 500 is up 4.6%.

Year-to-date the major indices remain in negative territory. This year the Dow Jones is down 3.0%, while the Nasaq is down 9.1% and the S&P 500 is down 5.1% in 2008.DJ30 +248.00 NASDAQ +68.51 SP500 +27.59 NASDAQ Dec/Adv/Vol 704/2149/1.44 bln NYSE Dec/Adv/Vol 578/2497/928.54 mln

1:30 pm : Stocks continue their steady trend higher. The Dow Jones, Nasdaq, and S&P 500 are all climbing to fresh highs for the session.

Wal-Mart (WMT 56.36, -0.31), Procter & Gamble (PG 67.08, -0.47), Pfizer (PFE 20.39, -0.02), and Coca-Cola (KO 59.79, -0.89) are the only four members of the Dow Jones trading in negative territory.

The 10-year Treasury yield is at its highest level in more than a month. The 10-year note is currently yielding 3.83%.DJ30 +273.24 NASDAQ +70.36 SP500 +29.78 NASDAQ Dec/Adv/Vol 667/2159/1.34 bln NYSE Dec/Adv/Vol 550/2518/872.32 mln

1:00 pm : The stock market remains roughly 2.0% higher, but has taken a slight step back from its session high.

Financials (+3.2%) continue to trend higher. The sector, however, has yet to reach its session high, which was established shortly after the opening bell.

For the second straight session investment banks and brokerages (+5.5%) are showing considerable strength. The group is being led by Goldman Sachs (GS 182.43, +10.33), Lehman Brothers (LEH 47.22, +3.58), and Morgan Stanley (MS 48.85, +2.43).DJ30 +248.98 NASDAQ +64.95 SP500 +27.17 NASDAQ Dec/Adv/Vol 684/2113/1.23 bln NYSE Dec/Adv/Vol 574/2474/814.83 mln

12:30 pm : All three of the major indices are up more than 2.0% as stocks continue their upward trend.

Google (GOOG 543.43, +93.89) and Citigroup (C 25.82, +1.79) remain the stock market's most influential leaders.

The pair is followed by oil drilling outfit Schlumberger (SLB 101.31, +6.01), which reported this morning earnings from its latest quarter totaled $1.06 per share. Schlumberger's earnings were up from the $0.96 per share it earned one year ago, but fell below the $1.11 per share analysts expected. Shares of SLB initially traded lower, but investors are viewing the earnings miss as a buying opportunity.DJ30 +264.21 NASDAQ +68.13 SP500 +28.88 NASDAQ Dec/Adv/Vol 655/2138/1.12 bln NYSE Dec/Adv/Vol 535/2503/757.90 mln

12:00 pm : Stocks are trading sharply higher Friday as investors lift shares of several key players to their best levels of the session. The session's positive tone has been evident from the start.

Following yesterday's close, Google (GOOG 539.19, +89.65) announced earnings of $4.84 per share for its most recent quarter. The results were better than analysts expected; the consensus earnings estimate called for profits of $4.52 per share. During its conference call Google stated that its paid advertising clicks were growing stronger than skeptics were speculating.

Financials (+3.1%) have also given the stock market a lift. Citigroup (C 25.82, +1.79) is trading noticeably higher despite announcing this morning a $5.1 billion loss, or $1.02 per share, for its most recent quarter. The bank took some $12 billion of write-downs during the quarter. In response to the report, Standard & Poor's placed Citi on CreditWatch Negative.

Industrial players Honeywell (HON 60.61, +3.20) and Caterpillar (CAT 84.01, +5.42) are giving the industrial sector (+2.3%) a lift. Both firms announced prior to the opening bell earnings results that topped analysts' expectations.

Oil took out a new intraday record high of $116.09 per barrel earlier. The commodity initially traded lower in the session, but buyers have reemerged are keeping it in positive territory.

The 10-year Treasury note has been out of favor as participants favor stocks. The 10-year is down 24 ticks and yielding 3.8%.DJ30 +242.47 NASDAQ +63.99 SP500 +27.36 NASDAQ Dec/Adv/Vol 648/2106/992.51 mln NYSE Dec/Adv/Vol 544/2479/695.26 mln

11:30 am : Stocks are trading sideways and holding on to the session's gains. Only the defensive-oriented utilities sector (-0.3%) is trading in negative territory.

Google's (GOOG 536.57, +87.03) strength has the tech sector (+3.1%) outperforming the other major economic sectors. It has also helped the Nasdaq 100 gain 3.0% this session.

However, financials (+2.6%) are also showing considerable strength. The sector continues to trade higher as investors lift shares of Citigroup (C 25.65, +1.62). Citi posted a loss for its most recent quarter amid write-downs and valuation adjustments. The firm was also put on CreditWatch Negative by Standard & Poor's. Still, investors remain optimistic about Citi's future.

After starting the session lower, crude oil moved its way back into positive territory to establish a new intraday record of $116.09 per barrel. The new record eclipses the previous intraday record of $115.54 per barrel set yesterday.DJ30 +214.30 NASDAQ +58.78 SP500 +23.62 NASDAQ Dec/Adv/Vol 652/2073/855.53 mln NYSE Dec/Adv/Vol 599/2385/620.00 mln

11:00 am : The stock market is up 1.8% after moving to a new session high.

Gold has been out of favor this session as market participants continue to focus their attention on stocks. The yellow metal is trading 3.5% lower at $907.20 per ounce.

Electronic Arts (ERTS 52.44, +0.98) extended the expiration of its offer to acquire Take-Two Interactive (TTWO 26.06, +0.21) to May 16 and also amended the proposed purchase price to $25.74 per TTWO share. The initial offer expires today and proposed to pay $26 per share of TTWO. Take-Two's board continues to regard the offer as insufficient.DJ30 +206.97 NASDAQ +52.79 SP500 +22.95 NASDAQ Dec/Adv/Vol 628/2019/706.84 mln NYSE Dec/Adv/Vol 570/2372/535.93 mln

10:30 am : The stock market continues to trade markedly higher, though off its best level of the session.

Buying remains broad-based. Advancing issues outnumber decliners by 4-to-1 on the NYSE.

The industrial sector (+1.7%) is being helped by strong earnings reports from Honeywell (HON 59.38, +1.98) and Caterpillar (CAT 82.50, +3.91). Both companies topped earnings estimates for their most recent quarter.

Boston Fed President Rosengren stated today that the markets have shown positive signs, but functioning has not been fully restored.DJ30 +185.47 NASDAQ +48.53 SP500 +20.09 NASDAQ Dec/Adv/Vol 617/1934/539.63 mln NYSE Dec/Adv/Vol 582/2290/434.25 mln

10:00 am : Though each of the major indices are trading higher, the Nasdaq is outperforming its counterparts. Shares of Google (GOOG 528.46, +78.92) are leading the index. Microsoft (MSFT 29.85, +0.63) and Apple (AAPL 159.35, +4.86) are also providing support to the Nasdaq.

Each of the ten economic sectors are now in positive territory. Six of the sectors are sporting gains in excess of 1.0%.

Oil is roughly 1.0% lower this session, trading at $113.73 per barrel.DJ30 +183.28 NASDAQ +47.83 SP500 +20.89 NASDAQ Dec/Adv/Vol 508/1902/367.71 mln NYSE Dec/Adv/Vol 439/2328/325.19 mln

09:45 am : The stock market opened more than 1% higher Friday. Nine of the major economic sectors are trading in positive territory. Energy (-0.1%) is the only sector in red.

After yesterday's close, Google (GOOG 526.51, +76.97) reported earnings totaled $4.84 per share, which was better than the $4.52 per share that analysts came to expect. During its conference call the company stated its paid-click growth is stronger than third-parties were speculating.

Citigroup (C 25.16, +1.13) announced prior to this morning's opening bell that it lost $5.1 billion, or $1.02 per share, amid write-downs and valuation adjustments. Analysts expected losses to total $0.95 per share, on average. Shares of the stock are trading higher as losses were less severe than feared.DJ30 +197.61 NASDAQ +53.99 SP500 +23.19 NASDAQ Dec/Adv/Vol 367/1835/201.53 mln NYSE Dec/Adv/Vol 348/2167/224.60 mln

09:15 am : S&P futures vs fair value: +24.2. Nasdaq futures vs fair value: +45.8. Just ahead of Friday's open, futures continue to indicate that stocks will open well into positive territory. The optimistic sentiment has been present since early morning.

09:01 am : S&P futures vs fair value: +24.2. Nasdaq futures vs fair value: +46.0. Stocks remain positioned for a strong upside start. No major economic data are due today, leaving market participants to focus entirely on earnings results.

08:30 am : S&P futures vs fair value: +21.5. Nasdaq futures vs fair value: +42.0. Stock futures continue to indicate a strong open as pre-market sentiment remains optimistic. Participants are undeterred by Citigroup's (C) $12 billion write-down and earnings miss. Yesterday the company announced it was selling its North American commercial lending and leasing business.

08:00 am : S&P futures vs fair value: +21.0. Nasdaq futures vs fair value: +37.5. Futures indicate a decidedly positive start to Friday's trading, helped by a positive earnings surprise from Google (GOOG) after yesterday's close. This morning's announcements, however, have been mixed as Citigroup (C) and Schlumberger (SLB) fell short of the consensus earnings estimate, but Honeywell (HON) and Caterpillar (CAT) topped analysts' forecasts.

06:15 am : S&P futures vs fair value: +7.9. Nasdaq futures vs fair value: +26.8.

06:14 am : FTSE...6007.30...+26.90...+0.5%. DAX...6743.32...+61.51...+0.9%.

06:14 am : Nikkei...13476.45...+78.15...+0.6%. Hang Seng...24197.78...-61.18...-0.3%.