AI
Wednesday, April 23, 2008 12:35:39 AM
Market Update 080422
http://biz.yahoo.com/mu/update.html
4:15 pm : The major indices finished with sharp losses on Tuesday. A bearish bias prevailed throughout the session after traders were disappointed by earnings reports at several notable companies. Meanwhile, crude oil and the Commodity Index spiked to lifetime highs, which did not help matters.
Texas Instruments (TXN 28.82, -1.77) reported earnings grew by a strong 19%, which met analysts expectations. However, its stock got clipped after the company provided a disappointing outlook. Because of uncertainty regarding the near-term economic outlook, the company expects to earn between $0.42 and $0.48 per share in the second quarter. This falls well short of the expected earnings of $0.48 per share.
TI's dour outlook was taken as bearish signal regarding large-cap tech stocks, with the Nasdaq 100 shedding -1.6%. Semiconductors took the brunt of the selling pressure, as the SOX fell 3.3%.
Tech was not the only area under pressure. Healthcare stocks posted a decline of 1.3%. Shares of health insurer UnitedHealth Group (UNH 34.15, -3.66) declined nearly 10% to a fresh 52-week low, bringing its four-month slide to a total of 42%. The company reported earnings that fell short of estimates, and lowered its full year 2008 guidance.
CME Group (CME 483.50, -40.00), operator of the Chicago Mercantile Exchange, faced notable selling interest, with shares falling roughly 8%. The company reported revenue rose 25% and earnings of $4.67 per share. However, that was not enough to meet the consensus estimate that pegged revenue growth at 26% and earnings of $4.80 per share.
The Amex Airline Index (-12.3%) got hammered and hit a fresh 52-week low after UAL Corp (UAUA 13.55, -7.88) reported disappointing earnings. The operator of United Airlines reported a quarterly loss of $4.45 per share, compared to the expected loss of $3.41. Also not helping things, crude hit a fresh all-time high of $119.90 per barrel on supply concerns in Nigeria and reports of a worker strike in the United Kingdom. The gains in crude helped send the CRB Commodity Index (+1.6%) to its all-time high.
Not every company reported worse than expected earnings -- although buying interest was held in check on some cautious outlooks. Dow components McDonald's (MCD 58.35, -0.32) and DuPont (DD 50.16, -2.09) topped their earnings estimates, while AT&T (T 37.81, +0.22) met expectations. In addition, Coach (COH 31.70, -0.80), Wyeth (WYE 43.99, -0.22) and Kimberly Clark (KMB 64.37, +0.34) came out ahead of their respective consensus estimates.
Economic data were light this session, with only one notable release. The market saw a modest boost following the March existing home sales report, but quickly retreated to predata levels as the data were largely in-line with expectations. March existing home sales fell 2.0% to an annualized rate of 4.93 million from the prior reading of 5.03 million. This was slightly better than the expected reading of 4.92 million. Compared to last year, sales are down 19.3%. Prices have fallen 7.7% versus last year. Housing remains in a deep slump, but the rate of decline has slowed in recent months.
In the end, eight of the ten sectors posted a loss. Consumer discretionary (-1.7%) and materials (-1.4%) posted the largest losses. Energy (+0.2%) and telecom (+0.2%) outperformed on a relative basis.DJ30 -104.79 NASDAQ -31.10 NQ100 -1.6% R2K -2.0% SP400 -1.4% SP500 -12.23 NASDAQ Dec/Adv/Vol 2185/705/1.93 bln NYSE Dec/Adv/Vol 2250/882/1.33 bln
3:30 pm : The major indices are off their worst levels, but continue to trade with losses in excess of 1%. The VIX (+4.0%) has taken a turn higher, indicating increased volatility during the next 30 days of trade.
Looking ahead, the market will have a plethora of earnings reports to sift through on Wednesday. A total of 116 companies are confirmed to report tonight and tomorrow morning, including Ambac (ABK 6.02, +0.08) Boeing (BA 78.02, -1.07), Yahoo! (YHOO 28.59, +0.04), UPS (UPS 71.73, -0.79), to name a few.DJ30 -123.52 NASDAQ -33.88 SP500 -14.77 NASDAQ Dec/Adv/Vol 2211/661/1.60 bln NYSE Dec/Adv/Vol 2319/808/1.04 bln
2:55 pm : The major indices are falling back toward their session lows, as all ten of the major economic sectors are now in negative territory.
The more than 1.5% advance in crude, and a 2.5% advance in grains has sent the CRB Commodity Index (+1.6%) to a lifetime high. Of note, commodities are still well below their inflation adjusted highs that were reached in the 1970s. The CRB Index is up 18% year-to-date and up 35% compared to last year.DJ30 -159.84 NASDAQ -42.63 SP500 -17.69 NASDAQ Dec/Adv/Vol 2220/628/1.44 bln NYSE Dec/Adv/Vol 2368/741/931 mln
2:30 pm : The major indices continue to post steep losses, but are trying to climb higher. There is an overall lack of leadership, as the only sectors in the green -- energy (+0.2%) and telecom (+0.1%) -- are basically clutching the unchanged mark.
Not everything is negative today. Intrepid Potash (IPI 50.29, +18.29) has soared 57% since its IPO this morning. The company is the second largest producer of potash -- a crop nutrient -- in the world. The gains today are even more impressive when considering its IPO was priced at $32 per share, which was well above the expected pricing of $27-to-$29 (which had been increased from $24-to-$26).DJ30 -120.34 NASDAQ -35.28 SP500 -13.63 NASDAQ Dec/Adv/Vol 2208/642/1.33 bln NYSE Dec/Adv/Vol 2318/776/864 mln
2:00 pm : The major indices are climbing off their recently reached session lows thanks to broad-based buying interest. Losses, though, remain substantial with the stock market down nearly 1%.
Within the S&P 500, 86% of stocks are posting a loss. Apple (AAPL 159.59, -8.57) and UnitedHealth (UNH 33.86, -3.95) are the main laggards, while Google (GOOG 557.82, +20.03) and Chevron (CVX 93.73, +1.03) are showing the most strength. By percentage change, the largest gainers are Fifth Third Bank (FITB 20.85, +1.47) and National City (NCC 6.43, +0.40), and the largest losers are BJ Services (BJS 27.52, -5.28) and Tellabs (TLAB 5.11, -0.91).DJ30 -130.44 NASDAQ -35.00 SP500 -13.71 NASDAQ Dec/Adv/Vol 2179/634/1.23 bln NYSE Dec/Adv/Vol 2295/786/798 mln
1:30 pm : Stocks remain depressed, but are off the session's worst levels. Only three of the Dow's 30 components, AT&T (T 37.85, +0.26), Exxon Mobil (XOM 94.38, +0.12), and Chevron (CVX 93.65, +0.95), are trading in positive territory.
Declining issues continue to outnumber advancers by roughly 3-to-1 on the NYSE.
Separately, President Bush said in a speech the economy is in a slowdown, not a recession.DJ30 -137.03 NASDAQ -38.82 SP500 -14.94 NASDAQ Dec/Adv/Vol 2179/617/1.13 bln NYSE Dec/Adv/Vol 2304/762/740.58 mln
1:00 pm : Selling has rekindled and stocks have moved another leg lower. Each of the major indices are now down more than 1%.
The push lower has been strongest in the industrial (-1.5%), materials (-2.1%), and energy (-0.2%) sectors.
Only telecom (+0.3%) is trading in positive territory, helped by AT&T (T 37.95, +0.36). The company announced this morning first quarter results that were in-line with analysts' expectations.DJ30 -162.76 NASDAQ -45.86 SP500 -17.95 NASDAQ Dec/Adv/Vol 2194/600/1.04 bln NYSE Dec/Adv/Vol 2358/708/686.05 mln
12:25 pm : Selling pressure eases as crude oil and the euro retreat off their respective all-time highs.
At session highs, one euro bought as much as $1.6018, which is the most since the currency was introduced in 1999. The euro has since retreated a tad to just under $1.60. The official currency of the European Union is now up roughly 18% compared to last year, and 30% over the last two years.
Meanwhile crude oil is currently up 1.7% to $119.44 per barrel after hitting an all-time high of $119.74.DJ30 -108.37 NASDAQ -33.32 SP500 -12.66 NASDAQ Dec/Adv/Vol 2085/676/876 mln NYSE Dec/Adv/Vol 2186/844/593 mln
12:05 pm : The major indices have spent the entirety of Tuesday's session in negative territory, and are trading with substantial losses. Traders have been disappointed with earnings misses by a few notable companies. At the same time, crude oil continues its rally as prices hit a new all-time high.
Texas Instruments (TXN 28.68, -1.91) reported a healthy 19% increase earnings that met analysts' expectations, but its stock is trading lower after the company provided a disappointing outlook. Uncertainty regarding the near-term economic outlook has prompted the company to provide a cautious second quarter outlook between $0.42 and $0.48 per share. This falls well short of the expected earnings of $0.48 per share.
Investors have taken TI's miss as a bearish signal, sending the Nasdaq 100 down 1.6%.
Shares of UnitedHealth Group (33.72, -4.09) have fallen 11% to a 52-week low, bringing its four-month decline to a total of 43%. The company reported earnings that were two cents short of estimates, and lowered its full year 2008 earnings guidance. As a result, the healthcare sector (-1.5%) is seeing a decent amount of selling interest.
CME Group (CME 472.71, -50.79), operator of the Chicago Mercantile Exchange, is facing some notable selling interest after reporting earnings that failed to meet expectations. A 25% year-over-year increase in revenue and earnings of $4.67 per share was not enough to meet Wall Street's expectation of $4.80 per share.
Airlines (-11.1%) are getting hammered after UAL Corp (UAUA 14.33, -7.10) reported disappointing earnings. The operator of United Airlines reported a quarterly loss of $4.45 per share, compared to the expected loss of $3.41. Also not helping things, crude hit a fresh all-time high of $119.74 per barrel on supply concerns in Nigeria and reports of a worker strike in the United Kingdom.
Not all earnings reports were worse than expected -- although buying interest has been held in check. Dow components McDonald's (MCD 58.52, -0.15) and DuPont (DD 50.01, -2.24) topped their earnings estimates, while AT&T (T 37.84, +0.25) met expectations. In addition, Coach (COH 30.79, -1.71), Wyeth (WYE 43.91, -0.30) and Kimberly Clark (KMB 64.19, +0.16) came out ahead of their respective consensus estimates.
Economic data were light this session, with only one notable release. The market saw a modest boost following the March existing home sales report, but quickly retreated to predata levels as the data were largely in-line with expectations. March existing home sales fell 2.0% to an annualized rate of 4.93 million from the prior reading of 5.03 million. This was slightly better than the expected reading of 4.92 million. Compared to last year, sales are down 19.3%. Prices have fallen 7.7% versus last year. Housing remains in a deep slump, but the rate of decline has slowed in recent months.DJ30 -113.99 NASDAQ -30.33 SP500 -12.81 NASDAQ Dec/Adv/Vol 2036/298/787 mln NYSE Dec/Adv/Vol 2147/856/543 mln
11:30 am : The major indices are unable to gain momentum as eight of the ten sectors remain in the red.
CME Group (CME 475.48, -48.02), operator of the Chicago Mercantile Exchange, is facing some notable selling interest after reporting earnings that failed to meet expectations. A 25% year-over-year increase in revenue and earnings of $4.67 per share was not enough to meet Wall Street's expectation of $4.80 per share. As a result, the firm's shares are down 9.2%.
Shares of Nymex (NMX 93.80, -5.29) are falling in conjunction with CME, as under the previously announced acquisition each share of Nymex will be worth 0.1323 shares of CME.DJ30 -72.63 NASDAQ -17.73 SP500 -8.35 NASDAQ Dec/Adv/Vol 1908/781/636 mln NYSE Dec/Adv/Vol 2025/932/447 mln
11:00 am : The stock market continues to languish in the red, as market participants' sentiment remains negative. Large-cap tech stocks are seeing notable selling interest following the cautious outlook from Texas Instruments (TXN 28.77, -1.83). The Nasdaq 100 is down more than 1%.
Shares of UnitedHealth Group (UNH 34.44, -3.37) have fallen to a fresh 52-week low, marking a 50% decline in the last four months. The company reported earnings that were two cents short of estimates, and lowered its full year 2008 earnings guidance. As a result, the healthcare sector (-1.1%) is seeing a decent amount of selling interest.DJ30 -64.81 NASDAQ -16.83 SP500 -7.75 NASDAQ Dec/Adv/Vol 1859/731/492 mln NYSE Dec/Adv/Vol 2030/874/357 mln
10:30 am : The major indices retreat back toward their session lows as the buying interest fades, fueled in part by the housing data . The energy sector (+0.1%) has recovered into the green, as crude hits a fresh all-time high of $118.45 per barrel. An attack in Nigeria has disrupted supply. Crude oil has spiked more than 16% in April.DJ30 -76.95 NASDAQ -19.37 SP500 -9.34 NASDAQ Dec/Adv/Vol 1829/664/351 mln NYSE Dec/Adv/Vol 2059/793/269 mln
10:05 am : Just hitting the wires, March existing home sales fell 2.0% to an annualized rate of 4.93 million from the prior reading of 5.03 million. This was slightly better than the expected reading of 4.92 million. Compared to last year, sales are down 19.3%. Prices have fallen 7.7% versus last year.
The stock market had extended its losses and then got a modest boost on the economic report. The major indices remain in the red. Only the telecom (+0.4%) sector is posting a gain. The healthcare sector (-1.0%) is the main laggard.DJ30 -48.61 NASDAQ -16.87 SP500 -6.15 NASDAQ Dec/Adv/Vol 1761/621/225 mln NYSE Dec/Adv/Vol 2049/731/188 mln
09:40 am : The stock market kicks off trade on a sour note as it digests a barrage of earnings reports.
Texas Instruments (TXN) is acting as a major selling catalyst. The semiconductor manufacturer met its quarterly earnings expectations, but issued a disappointing outlook and was cautious on the near-term outlook. The news is causing tech stocks (-0.6%) to underperform.
There were some other disappointing results coming from UnitedHealth (UNH), CME Group (CME) and UAL Corp. (UAUA).
There were, however, some bright spots. Dow components McDonald's (MCD) and DuPont (DD) topped their earnings estimates, while AT&T (T) met expectations. In addition, Coach (COH), Wyeth (WEYE) and Kimberly Clark (KMB) came out ahead of their respective consensus estimates.DJ30 -53.41 NASDAQ -13.86 SP500 -6.37
09:16 am : S&P futures vs fair value: -6.3. Nasdaq futures vs fair value: -16.2.
09:00 am : S&P futures vs fair value: -4.2. Nasdaq futures vs fair value: -13.5. Early indications suggest a lower start for the S&P 500 and Nasdaq 100. On the economic front, traders will be paying attention to the March existing home sales report at 10:00 ET. Economists expect home sales to slip to an annualized rate of 4.92 million from 5.03 million.
08:28 am : S&P futures vs fair value: -3.6. Nasdaq futures vs fair value: -11.8. Futures continue to indicate a lower start. McDonald's (MCD) reported earnings of $0.76 per share, which topped expectations by six cents. UAL Corp (UAUA), operator of United Airlines, reported a larger than expected loss of $4.45 per share. Meanwhile crude continues to take out new records, as it hit an all-time high of $118.05 per barrel in earlier trade.
07:55 am : S&P futures vs fair value: -2.9. Nasdaq futures vs fair value: -11.0. Futures point to a lower start with the Nasdaq set to underperform. Quarterly earnings at Texas Instruments (TXN) met expectations, but its report is weighing on traders' sentiment after the company provided a disappointing outlook. In other earnings news, DuPont (DD), Coach (COH), Wyeth (WYE), Kimberly Clark (KMB), and Eaton (EAT) topped estimates. AT&T (T) reported earnings that were in-line with the consensus estimate. CME Group (CME) and United Health (UNH) missed expectations.
06:14 am : S&P futures vs fair value: -0.9. Nasdaq futures vs fair value: -11.0.
06:13 am : FTSE...6066.40...+13.40...+0.2%. DAX...6804.79...+18.24...+0.3%.
06:13 am : Nikkei...13547.82...-148.73...-1.1%. Hang Seng...24939.15...+217.48...+0.9%.
http://biz.yahoo.com/mu/update.html
4:15 pm : The major indices finished with sharp losses on Tuesday. A bearish bias prevailed throughout the session after traders were disappointed by earnings reports at several notable companies. Meanwhile, crude oil and the Commodity Index spiked to lifetime highs, which did not help matters.
Texas Instruments (TXN 28.82, -1.77) reported earnings grew by a strong 19%, which met analysts expectations. However, its stock got clipped after the company provided a disappointing outlook. Because of uncertainty regarding the near-term economic outlook, the company expects to earn between $0.42 and $0.48 per share in the second quarter. This falls well short of the expected earnings of $0.48 per share.
TI's dour outlook was taken as bearish signal regarding large-cap tech stocks, with the Nasdaq 100 shedding -1.6%. Semiconductors took the brunt of the selling pressure, as the SOX fell 3.3%.
Tech was not the only area under pressure. Healthcare stocks posted a decline of 1.3%. Shares of health insurer UnitedHealth Group (UNH 34.15, -3.66) declined nearly 10% to a fresh 52-week low, bringing its four-month slide to a total of 42%. The company reported earnings that fell short of estimates, and lowered its full year 2008 guidance.
CME Group (CME 483.50, -40.00), operator of the Chicago Mercantile Exchange, faced notable selling interest, with shares falling roughly 8%. The company reported revenue rose 25% and earnings of $4.67 per share. However, that was not enough to meet the consensus estimate that pegged revenue growth at 26% and earnings of $4.80 per share.
The Amex Airline Index (-12.3%) got hammered and hit a fresh 52-week low after UAL Corp (UAUA 13.55, -7.88) reported disappointing earnings. The operator of United Airlines reported a quarterly loss of $4.45 per share, compared to the expected loss of $3.41. Also not helping things, crude hit a fresh all-time high of $119.90 per barrel on supply concerns in Nigeria and reports of a worker strike in the United Kingdom. The gains in crude helped send the CRB Commodity Index (+1.6%) to its all-time high.
Not every company reported worse than expected earnings -- although buying interest was held in check on some cautious outlooks. Dow components McDonald's (MCD 58.35, -0.32) and DuPont (DD 50.16, -2.09) topped their earnings estimates, while AT&T (T 37.81, +0.22) met expectations. In addition, Coach (COH 31.70, -0.80), Wyeth (WYE 43.99, -0.22) and Kimberly Clark (KMB 64.37, +0.34) came out ahead of their respective consensus estimates.
Economic data were light this session, with only one notable release. The market saw a modest boost following the March existing home sales report, but quickly retreated to predata levels as the data were largely in-line with expectations. March existing home sales fell 2.0% to an annualized rate of 4.93 million from the prior reading of 5.03 million. This was slightly better than the expected reading of 4.92 million. Compared to last year, sales are down 19.3%. Prices have fallen 7.7% versus last year. Housing remains in a deep slump, but the rate of decline has slowed in recent months.
In the end, eight of the ten sectors posted a loss. Consumer discretionary (-1.7%) and materials (-1.4%) posted the largest losses. Energy (+0.2%) and telecom (+0.2%) outperformed on a relative basis.DJ30 -104.79 NASDAQ -31.10 NQ100 -1.6% R2K -2.0% SP400 -1.4% SP500 -12.23 NASDAQ Dec/Adv/Vol 2185/705/1.93 bln NYSE Dec/Adv/Vol 2250/882/1.33 bln
3:30 pm : The major indices are off their worst levels, but continue to trade with losses in excess of 1%. The VIX (+4.0%) has taken a turn higher, indicating increased volatility during the next 30 days of trade.
Looking ahead, the market will have a plethora of earnings reports to sift through on Wednesday. A total of 116 companies are confirmed to report tonight and tomorrow morning, including Ambac (ABK 6.02, +0.08) Boeing (BA 78.02, -1.07), Yahoo! (YHOO 28.59, +0.04), UPS (UPS 71.73, -0.79), to name a few.DJ30 -123.52 NASDAQ -33.88 SP500 -14.77 NASDAQ Dec/Adv/Vol 2211/661/1.60 bln NYSE Dec/Adv/Vol 2319/808/1.04 bln
2:55 pm : The major indices are falling back toward their session lows, as all ten of the major economic sectors are now in negative territory.
The more than 1.5% advance in crude, and a 2.5% advance in grains has sent the CRB Commodity Index (+1.6%) to a lifetime high. Of note, commodities are still well below their inflation adjusted highs that were reached in the 1970s. The CRB Index is up 18% year-to-date and up 35% compared to last year.DJ30 -159.84 NASDAQ -42.63 SP500 -17.69 NASDAQ Dec/Adv/Vol 2220/628/1.44 bln NYSE Dec/Adv/Vol 2368/741/931 mln
2:30 pm : The major indices continue to post steep losses, but are trying to climb higher. There is an overall lack of leadership, as the only sectors in the green -- energy (+0.2%) and telecom (+0.1%) -- are basically clutching the unchanged mark.
Not everything is negative today. Intrepid Potash (IPI 50.29, +18.29) has soared 57% since its IPO this morning. The company is the second largest producer of potash -- a crop nutrient -- in the world. The gains today are even more impressive when considering its IPO was priced at $32 per share, which was well above the expected pricing of $27-to-$29 (which had been increased from $24-to-$26).DJ30 -120.34 NASDAQ -35.28 SP500 -13.63 NASDAQ Dec/Adv/Vol 2208/642/1.33 bln NYSE Dec/Adv/Vol 2318/776/864 mln
2:00 pm : The major indices are climbing off their recently reached session lows thanks to broad-based buying interest. Losses, though, remain substantial with the stock market down nearly 1%.
Within the S&P 500, 86% of stocks are posting a loss. Apple (AAPL 159.59, -8.57) and UnitedHealth (UNH 33.86, -3.95) are the main laggards, while Google (GOOG 557.82, +20.03) and Chevron (CVX 93.73, +1.03) are showing the most strength. By percentage change, the largest gainers are Fifth Third Bank (FITB 20.85, +1.47) and National City (NCC 6.43, +0.40), and the largest losers are BJ Services (BJS 27.52, -5.28) and Tellabs (TLAB 5.11, -0.91).DJ30 -130.44 NASDAQ -35.00 SP500 -13.71 NASDAQ Dec/Adv/Vol 2179/634/1.23 bln NYSE Dec/Adv/Vol 2295/786/798 mln
1:30 pm : Stocks remain depressed, but are off the session's worst levels. Only three of the Dow's 30 components, AT&T (T 37.85, +0.26), Exxon Mobil (XOM 94.38, +0.12), and Chevron (CVX 93.65, +0.95), are trading in positive territory.
Declining issues continue to outnumber advancers by roughly 3-to-1 on the NYSE.
Separately, President Bush said in a speech the economy is in a slowdown, not a recession.DJ30 -137.03 NASDAQ -38.82 SP500 -14.94 NASDAQ Dec/Adv/Vol 2179/617/1.13 bln NYSE Dec/Adv/Vol 2304/762/740.58 mln
1:00 pm : Selling has rekindled and stocks have moved another leg lower. Each of the major indices are now down more than 1%.
The push lower has been strongest in the industrial (-1.5%), materials (-2.1%), and energy (-0.2%) sectors.
Only telecom (+0.3%) is trading in positive territory, helped by AT&T (T 37.95, +0.36). The company announced this morning first quarter results that were in-line with analysts' expectations.DJ30 -162.76 NASDAQ -45.86 SP500 -17.95 NASDAQ Dec/Adv/Vol 2194/600/1.04 bln NYSE Dec/Adv/Vol 2358/708/686.05 mln
12:25 pm : Selling pressure eases as crude oil and the euro retreat off their respective all-time highs.
At session highs, one euro bought as much as $1.6018, which is the most since the currency was introduced in 1999. The euro has since retreated a tad to just under $1.60. The official currency of the European Union is now up roughly 18% compared to last year, and 30% over the last two years.
Meanwhile crude oil is currently up 1.7% to $119.44 per barrel after hitting an all-time high of $119.74.DJ30 -108.37 NASDAQ -33.32 SP500 -12.66 NASDAQ Dec/Adv/Vol 2085/676/876 mln NYSE Dec/Adv/Vol 2186/844/593 mln
12:05 pm : The major indices have spent the entirety of Tuesday's session in negative territory, and are trading with substantial losses. Traders have been disappointed with earnings misses by a few notable companies. At the same time, crude oil continues its rally as prices hit a new all-time high.
Texas Instruments (TXN 28.68, -1.91) reported a healthy 19% increase earnings that met analysts' expectations, but its stock is trading lower after the company provided a disappointing outlook. Uncertainty regarding the near-term economic outlook has prompted the company to provide a cautious second quarter outlook between $0.42 and $0.48 per share. This falls well short of the expected earnings of $0.48 per share.
Investors have taken TI's miss as a bearish signal, sending the Nasdaq 100 down 1.6%.
Shares of UnitedHealth Group (33.72, -4.09) have fallen 11% to a 52-week low, bringing its four-month decline to a total of 43%. The company reported earnings that were two cents short of estimates, and lowered its full year 2008 earnings guidance. As a result, the healthcare sector (-1.5%) is seeing a decent amount of selling interest.
CME Group (CME 472.71, -50.79), operator of the Chicago Mercantile Exchange, is facing some notable selling interest after reporting earnings that failed to meet expectations. A 25% year-over-year increase in revenue and earnings of $4.67 per share was not enough to meet Wall Street's expectation of $4.80 per share.
Airlines (-11.1%) are getting hammered after UAL Corp (UAUA 14.33, -7.10) reported disappointing earnings. The operator of United Airlines reported a quarterly loss of $4.45 per share, compared to the expected loss of $3.41. Also not helping things, crude hit a fresh all-time high of $119.74 per barrel on supply concerns in Nigeria and reports of a worker strike in the United Kingdom.
Not all earnings reports were worse than expected -- although buying interest has been held in check. Dow components McDonald's (MCD 58.52, -0.15) and DuPont (DD 50.01, -2.24) topped their earnings estimates, while AT&T (T 37.84, +0.25) met expectations. In addition, Coach (COH 30.79, -1.71), Wyeth (WYE 43.91, -0.30) and Kimberly Clark (KMB 64.19, +0.16) came out ahead of their respective consensus estimates.
Economic data were light this session, with only one notable release. The market saw a modest boost following the March existing home sales report, but quickly retreated to predata levels as the data were largely in-line with expectations. March existing home sales fell 2.0% to an annualized rate of 4.93 million from the prior reading of 5.03 million. This was slightly better than the expected reading of 4.92 million. Compared to last year, sales are down 19.3%. Prices have fallen 7.7% versus last year. Housing remains in a deep slump, but the rate of decline has slowed in recent months.DJ30 -113.99 NASDAQ -30.33 SP500 -12.81 NASDAQ Dec/Adv/Vol 2036/298/787 mln NYSE Dec/Adv/Vol 2147/856/543 mln
11:30 am : The major indices are unable to gain momentum as eight of the ten sectors remain in the red.
CME Group (CME 475.48, -48.02), operator of the Chicago Mercantile Exchange, is facing some notable selling interest after reporting earnings that failed to meet expectations. A 25% year-over-year increase in revenue and earnings of $4.67 per share was not enough to meet Wall Street's expectation of $4.80 per share. As a result, the firm's shares are down 9.2%.
Shares of Nymex (NMX 93.80, -5.29) are falling in conjunction with CME, as under the previously announced acquisition each share of Nymex will be worth 0.1323 shares of CME.DJ30 -72.63 NASDAQ -17.73 SP500 -8.35 NASDAQ Dec/Adv/Vol 1908/781/636 mln NYSE Dec/Adv/Vol 2025/932/447 mln
11:00 am : The stock market continues to languish in the red, as market participants' sentiment remains negative. Large-cap tech stocks are seeing notable selling interest following the cautious outlook from Texas Instruments (TXN 28.77, -1.83). The Nasdaq 100 is down more than 1%.
Shares of UnitedHealth Group (UNH 34.44, -3.37) have fallen to a fresh 52-week low, marking a 50% decline in the last four months. The company reported earnings that were two cents short of estimates, and lowered its full year 2008 earnings guidance. As a result, the healthcare sector (-1.1%) is seeing a decent amount of selling interest.DJ30 -64.81 NASDAQ -16.83 SP500 -7.75 NASDAQ Dec/Adv/Vol 1859/731/492 mln NYSE Dec/Adv/Vol 2030/874/357 mln
10:30 am : The major indices retreat back toward their session lows as the buying interest fades, fueled in part by the housing data . The energy sector (+0.1%) has recovered into the green, as crude hits a fresh all-time high of $118.45 per barrel. An attack in Nigeria has disrupted supply. Crude oil has spiked more than 16% in April.DJ30 -76.95 NASDAQ -19.37 SP500 -9.34 NASDAQ Dec/Adv/Vol 1829/664/351 mln NYSE Dec/Adv/Vol 2059/793/269 mln
10:05 am : Just hitting the wires, March existing home sales fell 2.0% to an annualized rate of 4.93 million from the prior reading of 5.03 million. This was slightly better than the expected reading of 4.92 million. Compared to last year, sales are down 19.3%. Prices have fallen 7.7% versus last year.
The stock market had extended its losses and then got a modest boost on the economic report. The major indices remain in the red. Only the telecom (+0.4%) sector is posting a gain. The healthcare sector (-1.0%) is the main laggard.DJ30 -48.61 NASDAQ -16.87 SP500 -6.15 NASDAQ Dec/Adv/Vol 1761/621/225 mln NYSE Dec/Adv/Vol 2049/731/188 mln
09:40 am : The stock market kicks off trade on a sour note as it digests a barrage of earnings reports.
Texas Instruments (TXN) is acting as a major selling catalyst. The semiconductor manufacturer met its quarterly earnings expectations, but issued a disappointing outlook and was cautious on the near-term outlook. The news is causing tech stocks (-0.6%) to underperform.
There were some other disappointing results coming from UnitedHealth (UNH), CME Group (CME) and UAL Corp. (UAUA).
There were, however, some bright spots. Dow components McDonald's (MCD) and DuPont (DD) topped their earnings estimates, while AT&T (T) met expectations. In addition, Coach (COH), Wyeth (WEYE) and Kimberly Clark (KMB) came out ahead of their respective consensus estimates.DJ30 -53.41 NASDAQ -13.86 SP500 -6.37
09:16 am : S&P futures vs fair value: -6.3. Nasdaq futures vs fair value: -16.2.
09:00 am : S&P futures vs fair value: -4.2. Nasdaq futures vs fair value: -13.5. Early indications suggest a lower start for the S&P 500 and Nasdaq 100. On the economic front, traders will be paying attention to the March existing home sales report at 10:00 ET. Economists expect home sales to slip to an annualized rate of 4.92 million from 5.03 million.
08:28 am : S&P futures vs fair value: -3.6. Nasdaq futures vs fair value: -11.8. Futures continue to indicate a lower start. McDonald's (MCD) reported earnings of $0.76 per share, which topped expectations by six cents. UAL Corp (UAUA), operator of United Airlines, reported a larger than expected loss of $4.45 per share. Meanwhile crude continues to take out new records, as it hit an all-time high of $118.05 per barrel in earlier trade.
07:55 am : S&P futures vs fair value: -2.9. Nasdaq futures vs fair value: -11.0. Futures point to a lower start with the Nasdaq set to underperform. Quarterly earnings at Texas Instruments (TXN) met expectations, but its report is weighing on traders' sentiment after the company provided a disappointing outlook. In other earnings news, DuPont (DD), Coach (COH), Wyeth (WYE), Kimberly Clark (KMB), and Eaton (EAT) topped estimates. AT&T (T) reported earnings that were in-line with the consensus estimate. CME Group (CME) and United Health (UNH) missed expectations.
06:14 am : S&P futures vs fair value: -0.9. Nasdaq futures vs fair value: -11.0.
06:13 am : FTSE...6066.40...+13.40...+0.2%. DAX...6804.79...+18.24...+0.3%.
06:13 am : Nikkei...13547.82...-148.73...-1.1%. Hang Seng...24939.15...+217.48...+0.9%.
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