AI
Wednesday, April 23, 2008 9:21:05 PM
Market Update 080423
http://biz.yahoo.com/mu/update.html
4:20 pm : On Wednesday, the S&P 500 managed to post a modest gain, while the Nasdaq handily outperformed, as traders digested another onslaught of earnings reports. Strength in several large-cap tech names lifted the market, but their advance was partially offset by weakness in financial and energy stocks.
Microsoft (MSFT 31.45, +1.20) was the most influential name within the tech sector (+1.4%) after the company indicated it will not raise its offer for Yahoo! (YHOO 28.08, -0.46). The news caused shares of Yahoo to slip, even though the company reported better than expected earnings.
Shares of semiconductor firm Broadcom (BRCM 27.39, +3.84) soared 16% after the company reported earnings that topped estimates, and guided its second quarter revenue above expectations. The news gave a boost to the Semiconductor Index (+4.1%).
Lastly, tech got a boost from Apple (AAPL 162.89, +2.69) after traders bought its stock ahead of the company's earnings report.
Although tech was the most influential sector due to its heavy weighting, telecom (+2.2%) was actually the best-performing sector by percentage gain. AT&T (T 38.53, +0.72), Verizon (VZ 36.33, +0.60) and Sprint (S 7.67, +0.62) all saw buying interest.
The market had a mostly positive response to the 113 companies that reported earnings. Some notable names that topped estimates included Boeing (BA 82.09, +3.53), Yum! Brands (YUM 40.30, +1.81), EMC Corp (EMC 15.89, +0.30) and Philip Morris International (PM 52.00, +1.93).
Weakness in financials (-0.8%), energy (-0.8%) and materials (-1.3%), however, kept buying interest in check.
Financials underperformed largely due to disappointment regarding a massive quarterly loss at Ambac Financial (ABK 3.46, -2.57). The bond insurer's stock plummeted 43% to a new all-time low after the company reported a massive $5.42 per share loss on $1.7 billion in write-downs and a $1.0 billion increase in loan loss provisions. Analysts were looking for a much smaller loss of $1.51 per share.
Meanwhile the energy and materials sectors succumbed to some profit taking. Going into this session, energy was up 14% and materials were up 9% in the month of April.
UPS (UPS 71.67, -0.23) was a notable laggard. The company reported earnings that were in-line with expectations, but issued a cautious outlook. The company cut its second quarter and full year earnings estimates, citing economic concerns.
There were no economic reports on Tuesday, but the government did release its weekly energy inventory report. The Department of Energy said crude stockpiles rose by 2.42 million barrels, which was larger than the expected 1.50 million increase. Crude traded in a choppy manner following the report, finally settling with a gain of $0.25 to $118.32 per barrel.
Market participants will not be getting a breather tomorrow as 213 companies are confirmed to report their earnings. Some of the bigger names include Apple, Amazon.com (AMZN 81.00, +1.40) and Qualcomm (QCOM 41.89, +0.34). In addition, the market will be digesting the latest durable orders and initial jobless claims reports at 8:30 ET. DJ30 +42.99 NASDAQ +28.27 NQ100 +1.3% R2K +0.6% SP400 +0.4% SP500 +3.99 NASDAQ Dec/Adv/Vol 1317/1532/2.13 bln NYSE Dec/Adv/Vol 1469/1639/1.35 bln
3:30 pm : Stocks are climbing higher, with relative strength within the tech sector (+1.4%). The Nasdaq is approaching its best level of the session, while the Dow and S&P 500 still have a way to go.
Looking ahead, 213 companies are confirmed to report their earnings after this session's closing bell and before tomorrow's open. Some of the bigger names include Apple (AAPL 162.99, +2.79), Amazon.com (AMZN 81.271 +1.67) and Qualcomm (QCOM 41.98, +0.43 ). On the economic front, durable orders and initial jobless claims figures are set for release at 8:30 ET.DJ30 +57.24 NASDAQ +29.28 SP500 +4.88 NASDAQ Dec/Adv/Vol 1318/1542/1.74 bln NYSE Dec/Adv/Vol 1476/1632/1.02 bln
3:00 pm : The major indices have traded in a range-bound fashion the past half hour. The S&P is holding onto a slight gain.
Within the S&P 500, 52% of stocks are posting an advance. The largest percent gainer is Safeco (SAF 65.98, +20.75), with an advance of 46%. It was announced earlier today that Liberty Mutual is acquiring Safeco for $68.25 per share in cash, or $6.2 billion. The largest percent decliner is Ambac (ABK 3.41, -2.62), with a slide of 43%. Traders have been disappointed with the bond insurer's larger than expected loss.
Phillip Morris International (PM 51.98, +1.91), which Atria (MO 22.36, +0.31) recently spun off, is posting a hefty 3.8% gain. The cigarette company reported earnings of $0.89 per share, topping expectations by $0.12.DJ30 +28.09 NASDAQ +21.80 SP500 +1.16 NASDAQ Dec/Adv/Vol 1415/1415/1.58 bln NYSE Dec/Adv/Vol 1576/1519/919 mln
2:30 pm : The Nasdaq has managed to stave off selling interest better than the S&P 500. Microsoft (MSFT 31.34, +1.09), Apple (AAPL 162.73, +2.53), Qualcomm (QCOM 42.03, +0.48) and Broadcom (BRCM 27.28, +3.73) are the best performing names within the Nasdaq.
Telecom (+2.7%) has not been fazed by the recent retreat, as it steadily climbs higher. AT&T (T 38.73, +0.92), Verizon (VZ 36.335, +0.62) and Sprint (S 7.58, +0.53) are all showing strength.DJ30 +26.95 NASDAQ +22.30 SP500 +1.28 NASDAQ Dec/Adv/Vol 1381/1424/1.46 bln NYSE Dec/Adv/Vol 1579/1497/850 mln
2:00 pm : The major indices are trying to regain lost ground, but are unable to maintain any momentum. Market breadth is neutral, with advancers and decliners nearly even on the NYSE and the Nasdaq. Volume is on the average side.DJ30 +24.91 NASDAQ +21.82 SP500 +1.05 NASDAQ Dec/Adv/Vol 1384/1405/1.34 bln NYSE Dec/Adv/Vol 1526/1542/779 nkb
1:30 pm : The stock market has pulled itself out of negative territory, but lingers just above the unchanged mark.
Telecom (+2.0%) continues to exhibit strength as a relative leader. AT&T (T 38.67, +0.86) and Verizon (VZ 36.30, +0.57) are the supportive forces behind the sector's advance.
Oil continues to trade along the unchanged mark at $118.02 per barrel.DJ30 +29.39 NASDAQ +20.84 SP500 +1.52 NASDAQ Dec/Adv/Vol 1394/1367/1.24 bln NYSE Dec/Adv/Vol 1560/1494/723.72 mln
1:00 pm : After extending its decline, the stock market is now trading with a slight loss. The Nasdaq is managing to hold a modest gain, although it is well off its best level of the session.
There was no apparent catalyst for the recent selling interest, although financials (-1.1%) fell as Ambac (ABK 3.49, -2.54) extended its loss to more than 40%. This is actually not Ambac's largest one day percent decline -- its shares fell more than 50% in January on word that Moody's was putting Ambac's Aaa credit rating under review. AIG (AIG 43.64, -1.63) is acting as the largest drag on the financial sector.DJ30 +4.15 NASDAQ +14.53 SP500 -1.25 NASDAQ Dec/Adv/Vol 1384/1352/1.14 bln NYSE Dec/Adv/Vol 1593/1439/667 mln
12:30 pm : The major indices are trending lower, with the S&P 500 giving up nearly all of its gains. Financials (-0.9%) are largely to blame as the sector slips into the red after being up as much as 0.8%. Within the sector, multi-line insurance (-2.4%) is posting the largest loss, as traders sell-off shares of bond insurers Ambac (ABK 3.74, -2.29) and XL Capital (XL 28.18, -1.86) following the companies' worse than expected earnings reports.
Gold has come under some selling pressure as the dollar (+0.73%) holds most of its gains this session. The precious metal is down 2.4% to $900.60 per ounce. It is still up 7.5% this year, but is down 14.8% from its all-time nominal high of $1033 that was reached about one month ago.DJ30 +35.25 NASDAQ +16.11 SP500 +1.56 NASDAQ Dec/Adv/Vol 1387/1346/1.03 bln NYSE Dec/Adv/Vol 1535/1475/593 mln
12:00 pm : The stock market opened on a muted note as disappointing outlooks at several widely held firms kept buying interest in check, but strength in large-cap tech names led to improved investor sentiment. At the East Coast lunch hour, stocks are trading with decent gains, as the Nasdaq outperforms. Eight of the ten economic sectors are posting a gain.
Traders have responded positively, for the most part, to the multitude of earnings reports that were released after yesterday's close and this morning.
Boeing (BA 82.58, +4.02) earned $1.61 per share in its latest quarter, topping estimates by $0.26 and marking a 40% year-over-year increase. Boeing reaffirmed its full year outlook, which falls short of expectations by $0.08 to $0.23 per share. However, traders have not been discouraged by the firm's cautious outlook, and are driving shares higher.
Yahoo! (YHOO 28.29, -0.25) topped earnings expectations and marked its first increase in earnings in roughly two years. It stock, though, is underperforming as traders reflect concerns that Microsoft (MSFT 31.20, +0.95) will not increase its offer of roughly $31 per share offer to acquire Yahoo.
Other firms that topped expectations include, Yum! Brands (YUM 40.64, +2.15), EMC Corp. (EMC 16.18, +0.59), Biogen-Idec (BIIB 64.04, -0.58), Broadcom (BRCM 26.62, +3.07) and Freeport-McMoRan (FCX 119.70, +1.05).
UPS (UPS 71.73, -0.17) is a notable laggard. The company met its earnings estimate, but issued a cautious outlook due to economic concerns.
Ambac's (ABK 3.77, -2.26) stock has plummeted 37% to its all-time low after the bond insurer reported a massive $5.42 per share loss on $1.7 billion in write-downs and a $1.0 billion increase in loan loss provisions. Analysts were looking for a much smaller loss of $1.51 per share. Unlike a month ago, the market's disappointment has largely been contained to Ambac and its peers, although the financial sector (+0.2%) is underperforming on a relative basis.
Technology has really been the driving force behind this session's strength, with the tech sector gaining 1.4%. Interestingly three of the four largest gainers -- Apple (AAPL 164.15, +3.95), Microsoft (MSFT) and Qualcomm (QCOM 42.27, +0.72) -- did not report earnings this session. Apple and Qualcomm are set to announce their respective earnings reports after the closing bell today. Broadcom is the remaining leader, which topped expectations as mentioned above.
There are no economic reports this session, although the government did release its weekly energy statistics. The Department of Energy said crude stockpiles rose by 2.42 million barrels, which was larger than the expected 1.50 million increase. Crude traded in a choppy manner following the report, and is currently down 0.3% to 117.78 per barrel.DJ30 +68.47 NASDAQ +28.01 SP500 +6.19 NASDAQ Dec/Adv/Vol 1152/1532/914 mln NYSE Dec/Adv/Vol 1335/1658/528 mln
11:30 am : The major indices dip off their best levels, but continue to hold solid gains. Energy (-0.5%) and financials (+0.2%) -- which account for nearly 30% of the S&P 500 -- are keeping buying interest in check as they underperform on a relative basis.
The CRB Commodity Index (-0.5%) -- which tracks a basket of 19 commodities -- hit an all-time nominal high in yesterday's trade as crude and grain prices spiked higher. The index has seen some selling interest this session, as investors take profits and the dollar rises 0.85%.
DJ30 +70.10 NASDAQ +28.28 SP500 +7.57 NASDAQ Dec/Adv/Vol 1093/1557/795 mln NYSE Dec/Adv/Vol 1258/1687/458 mln
11:05 am : The major indices climb higher, with sentiment leaning positive. Only materials (-0.2%) and energy (-0.7%) remain in the red. Crude oil has pared some of its losses, now only down 0.1%, even though inventories rose by a larger than expected amount -- which is usually bearish for crude prices.
Just last month, any rumor or comment regarding Ambac Financial (ABK 4.22, -1.81) made the market go on massive swings. Market participants were afraid that if Ambac lost its AAA credit rating, it would cause a chain reaction in write-offs at financial firms. This session Ambac reported a massive $5.42 per share loss on $1.7 billion in write-downs and a $1.0 billion increase in loan loss provisions. The market was looking for a much smaller loss of $1.51 per share.
Yet disappointment has been contained to Ambac and its peers such as MBIA (MBI 11.48, -1.80). Ambac's stock is plummeting nearly 30% to a fresh all-time low in the company's nearly 20 years of public trading. Possibly mitigating selling interest in the broader market is word from the company that it exceeds S&P's AAA capital requirements, and expects to meet Moody's Aaa target level of capital in the second quarter.DJ30 +90.54 NASDAQ +30.81 SP500 +9.46 NASDAQ Dec/Adv/Vol 1006/1587/678 mln NYSE Dec/Adv/Vol 1163/1753/391 mln
10:30 am : The major indices catch a modest bid, led by tech stocks (+1.1%). The major indices are trading at their best levels of the session.
After hitting an all-time high of $119.90 per barrel in yesterday's trade, crude oil retreated as the contract switched to June delivery from May delivery. Prices are set to go on the move, as the government's weekly energy report just hit the wires. The Department of Energy said crude stockpiles rose by 2.42 million barrels, which is larger than the expected build of 1.50 million barrels. Just prior to the release, crude was trading down 0.8% to $117.11 per barrel.DJ30 +43.64 NASDAQ +23.44 SP500 +4.15 NASDAQ Dec/Adv/Vol 1186/1271/409 mln NYSE Dec/Adv/Vol 1462/1346/254 mln
09:55 am : The stock market is clutching the unchanged mark. The ten sectors are split down the middle, with five in the red and five in the green -- which reflects the indecisiveness of market participants this morning.
The Nasdaq Composite, led by large cap tech, is modestly outperforming as it posts a decent gain. Apple (AAPL 163.34, +3.14) is providing leadership ahead of its earnings report after this session's close. Shares of Broadcom (BRCM 26.06, +2.51) are up roughly 11% after the company's first quarter results exceeded expectations and the firm guided second quarter revenue above the consensus estimate.DJ30 +0.73 NASDAQ +11.90 SP500 +0.43 NASDAQ Dec/Adv/Vol 1105/1188/226 mln NYSE Dec/Adv/Vol 1504/1229/133 mln
09:40 am : After some swings in premarket trading, the stock market opens on a slightly higher note. The market has been sifting through a multitude of earnings reports. Results have been mixed.
Yahoo! (YHOO), Yum Brands (YUM), EMC Corp. (EMC), Biogen-Idec (BIIB) and Freeport-McMoRan (FCX) all topped expectations.
Boeing (BA) beat its estimate, but reaffirmed 2008 earnings guidance that falls below expectations. UPS (UPS) reported in-line earnings, but cut its full year outlook.
In deal news, Liberty Mutual will acquire Safeco (SAF) for $68.25 per share in cash, or $6.2 billion. It has been approved by the board of directors of both companies. DJ30 +10.50 NASDAQ +10.25 SP500 +2.31 NASDAQ Dec/Adv/Vol 914/1216/108 mln NYSE Dec/Adv/Vol 1169/1400/73 mln
09:17 am : S&P futures vs fair value: +4.5. Nasdaq futures vs fair value: +16.2. There is an acquisition deal of note this morning. Liberty Mutual will acquire Safeco (SAF) for $68.25 per share in cash, or $6.2 billion. It has been approved by the board of directors of both companies.
09:00 am : S&P futures vs fair value: +1.3. Nasdaq futures vs fair value: +12.8. S&P 500 futures versus fair value join the Nasdaq in the green. Biotech firm Genzyme (GENZ) topped its earnings estimates, but issued downside earnings guidance for full year 2008. Separately, crude oil is trading down 0.6% ahead of the government's weekly energy report.
08:30 am : S&P futures vs fair value: -0.3. Nasdaq futures vs fair value: +10.0. S&P 500 futures are flat, while Nasdaq futures indicate a modestly higher start. Apple (AAPL) is aiding in the Nasdaq's outperformance. Its stock is up roughly 1% ahead of the company's earnings report after the close today.
08:00 am : S&P futures vs fair value: -0.2. Nasdaq futures vs fair value: +9.8. S&P 500 Futures point to a flat start as a barrage of earnings reports hit the wires. Yahoo! (YHOO) reported earnings that topped estimates, marking its first profit increase in two years. UPS (UPS) reported in-line earnings, but had some cautious comments regarding the economic outlook. Boeing's (BA) earnings topped estimates, but reaffirmed its full year 2008 earnings guidance below the consensus estimate. Ambac (ABK) reported a loss of $6.93 per share, which is $5.42 worse than expectations. The firm says it exceeds S&P's AAA capital requirements, and expects to meet Moody's Aaa target level of capital in the second quarter.
06:17 am : S&P futures vs fair value: +5.0. Nasdaq futures vs fair value: +10.0.
06:17 am : FTSE...6039.10...+4.40...+0.1%. DAX...6762.76...+34.46...+0.5%.
06:17 am : Nikkei...13579.16...+31.34...+0.2%. Hang Seng...25289.24...+350.09...+1.4%.
http://biz.yahoo.com/mu/update.html
4:20 pm : On Wednesday, the S&P 500 managed to post a modest gain, while the Nasdaq handily outperformed, as traders digested another onslaught of earnings reports. Strength in several large-cap tech names lifted the market, but their advance was partially offset by weakness in financial and energy stocks.
Microsoft (MSFT 31.45, +1.20) was the most influential name within the tech sector (+1.4%) after the company indicated it will not raise its offer for Yahoo! (YHOO 28.08, -0.46). The news caused shares of Yahoo to slip, even though the company reported better than expected earnings.
Shares of semiconductor firm Broadcom (BRCM 27.39, +3.84) soared 16% after the company reported earnings that topped estimates, and guided its second quarter revenue above expectations. The news gave a boost to the Semiconductor Index (+4.1%).
Lastly, tech got a boost from Apple (AAPL 162.89, +2.69) after traders bought its stock ahead of the company's earnings report.
Although tech was the most influential sector due to its heavy weighting, telecom (+2.2%) was actually the best-performing sector by percentage gain. AT&T (T 38.53, +0.72), Verizon (VZ 36.33, +0.60) and Sprint (S 7.67, +0.62) all saw buying interest.
The market had a mostly positive response to the 113 companies that reported earnings. Some notable names that topped estimates included Boeing (BA 82.09, +3.53), Yum! Brands (YUM 40.30, +1.81), EMC Corp (EMC 15.89, +0.30) and Philip Morris International (PM 52.00, +1.93).
Weakness in financials (-0.8%), energy (-0.8%) and materials (-1.3%), however, kept buying interest in check.
Financials underperformed largely due to disappointment regarding a massive quarterly loss at Ambac Financial (ABK 3.46, -2.57). The bond insurer's stock plummeted 43% to a new all-time low after the company reported a massive $5.42 per share loss on $1.7 billion in write-downs and a $1.0 billion increase in loan loss provisions. Analysts were looking for a much smaller loss of $1.51 per share.
Meanwhile the energy and materials sectors succumbed to some profit taking. Going into this session, energy was up 14% and materials were up 9% in the month of April.
UPS (UPS 71.67, -0.23) was a notable laggard. The company reported earnings that were in-line with expectations, but issued a cautious outlook. The company cut its second quarter and full year earnings estimates, citing economic concerns.
There were no economic reports on Tuesday, but the government did release its weekly energy inventory report. The Department of Energy said crude stockpiles rose by 2.42 million barrels, which was larger than the expected 1.50 million increase. Crude traded in a choppy manner following the report, finally settling with a gain of $0.25 to $118.32 per barrel.
Market participants will not be getting a breather tomorrow as 213 companies are confirmed to report their earnings. Some of the bigger names include Apple, Amazon.com (AMZN 81.00, +1.40) and Qualcomm (QCOM 41.89, +0.34). In addition, the market will be digesting the latest durable orders and initial jobless claims reports at 8:30 ET. DJ30 +42.99 NASDAQ +28.27 NQ100 +1.3% R2K +0.6% SP400 +0.4% SP500 +3.99 NASDAQ Dec/Adv/Vol 1317/1532/2.13 bln NYSE Dec/Adv/Vol 1469/1639/1.35 bln
3:30 pm : Stocks are climbing higher, with relative strength within the tech sector (+1.4%). The Nasdaq is approaching its best level of the session, while the Dow and S&P 500 still have a way to go.
Looking ahead, 213 companies are confirmed to report their earnings after this session's closing bell and before tomorrow's open. Some of the bigger names include Apple (AAPL 162.99, +2.79), Amazon.com (AMZN 81.271 +1.67) and Qualcomm (QCOM 41.98, +0.43 ). On the economic front, durable orders and initial jobless claims figures are set for release at 8:30 ET.DJ30 +57.24 NASDAQ +29.28 SP500 +4.88 NASDAQ Dec/Adv/Vol 1318/1542/1.74 bln NYSE Dec/Adv/Vol 1476/1632/1.02 bln
3:00 pm : The major indices have traded in a range-bound fashion the past half hour. The S&P is holding onto a slight gain.
Within the S&P 500, 52% of stocks are posting an advance. The largest percent gainer is Safeco (SAF 65.98, +20.75), with an advance of 46%. It was announced earlier today that Liberty Mutual is acquiring Safeco for $68.25 per share in cash, or $6.2 billion. The largest percent decliner is Ambac (ABK 3.41, -2.62), with a slide of 43%. Traders have been disappointed with the bond insurer's larger than expected loss.
Phillip Morris International (PM 51.98, +1.91), which Atria (MO 22.36, +0.31) recently spun off, is posting a hefty 3.8% gain. The cigarette company reported earnings of $0.89 per share, topping expectations by $0.12.DJ30 +28.09 NASDAQ +21.80 SP500 +1.16 NASDAQ Dec/Adv/Vol 1415/1415/1.58 bln NYSE Dec/Adv/Vol 1576/1519/919 mln
2:30 pm : The Nasdaq has managed to stave off selling interest better than the S&P 500. Microsoft (MSFT 31.34, +1.09), Apple (AAPL 162.73, +2.53), Qualcomm (QCOM 42.03, +0.48) and Broadcom (BRCM 27.28, +3.73) are the best performing names within the Nasdaq.
Telecom (+2.7%) has not been fazed by the recent retreat, as it steadily climbs higher. AT&T (T 38.73, +0.92), Verizon (VZ 36.335, +0.62) and Sprint (S 7.58, +0.53) are all showing strength.DJ30 +26.95 NASDAQ +22.30 SP500 +1.28 NASDAQ Dec/Adv/Vol 1381/1424/1.46 bln NYSE Dec/Adv/Vol 1579/1497/850 mln
2:00 pm : The major indices are trying to regain lost ground, but are unable to maintain any momentum. Market breadth is neutral, with advancers and decliners nearly even on the NYSE and the Nasdaq. Volume is on the average side.DJ30 +24.91 NASDAQ +21.82 SP500 +1.05 NASDAQ Dec/Adv/Vol 1384/1405/1.34 bln NYSE Dec/Adv/Vol 1526/1542/779 nkb
1:30 pm : The stock market has pulled itself out of negative territory, but lingers just above the unchanged mark.
Telecom (+2.0%) continues to exhibit strength as a relative leader. AT&T (T 38.67, +0.86) and Verizon (VZ 36.30, +0.57) are the supportive forces behind the sector's advance.
Oil continues to trade along the unchanged mark at $118.02 per barrel.DJ30 +29.39 NASDAQ +20.84 SP500 +1.52 NASDAQ Dec/Adv/Vol 1394/1367/1.24 bln NYSE Dec/Adv/Vol 1560/1494/723.72 mln
1:00 pm : After extending its decline, the stock market is now trading with a slight loss. The Nasdaq is managing to hold a modest gain, although it is well off its best level of the session.
There was no apparent catalyst for the recent selling interest, although financials (-1.1%) fell as Ambac (ABK 3.49, -2.54) extended its loss to more than 40%. This is actually not Ambac's largest one day percent decline -- its shares fell more than 50% in January on word that Moody's was putting Ambac's Aaa credit rating under review. AIG (AIG 43.64, -1.63) is acting as the largest drag on the financial sector.DJ30 +4.15 NASDAQ +14.53 SP500 -1.25 NASDAQ Dec/Adv/Vol 1384/1352/1.14 bln NYSE Dec/Adv/Vol 1593/1439/667 mln
12:30 pm : The major indices are trending lower, with the S&P 500 giving up nearly all of its gains. Financials (-0.9%) are largely to blame as the sector slips into the red after being up as much as 0.8%. Within the sector, multi-line insurance (-2.4%) is posting the largest loss, as traders sell-off shares of bond insurers Ambac (ABK 3.74, -2.29) and XL Capital (XL 28.18, -1.86) following the companies' worse than expected earnings reports.
Gold has come under some selling pressure as the dollar (+0.73%) holds most of its gains this session. The precious metal is down 2.4% to $900.60 per ounce. It is still up 7.5% this year, but is down 14.8% from its all-time nominal high of $1033 that was reached about one month ago.DJ30 +35.25 NASDAQ +16.11 SP500 +1.56 NASDAQ Dec/Adv/Vol 1387/1346/1.03 bln NYSE Dec/Adv/Vol 1535/1475/593 mln
12:00 pm : The stock market opened on a muted note as disappointing outlooks at several widely held firms kept buying interest in check, but strength in large-cap tech names led to improved investor sentiment. At the East Coast lunch hour, stocks are trading with decent gains, as the Nasdaq outperforms. Eight of the ten economic sectors are posting a gain.
Traders have responded positively, for the most part, to the multitude of earnings reports that were released after yesterday's close and this morning.
Boeing (BA 82.58, +4.02) earned $1.61 per share in its latest quarter, topping estimates by $0.26 and marking a 40% year-over-year increase. Boeing reaffirmed its full year outlook, which falls short of expectations by $0.08 to $0.23 per share. However, traders have not been discouraged by the firm's cautious outlook, and are driving shares higher.
Yahoo! (YHOO 28.29, -0.25) topped earnings expectations and marked its first increase in earnings in roughly two years. It stock, though, is underperforming as traders reflect concerns that Microsoft (MSFT 31.20, +0.95) will not increase its offer of roughly $31 per share offer to acquire Yahoo.
Other firms that topped expectations include, Yum! Brands (YUM 40.64, +2.15), EMC Corp. (EMC 16.18, +0.59), Biogen-Idec (BIIB 64.04, -0.58), Broadcom (BRCM 26.62, +3.07) and Freeport-McMoRan (FCX 119.70, +1.05).
UPS (UPS 71.73, -0.17) is a notable laggard. The company met its earnings estimate, but issued a cautious outlook due to economic concerns.
Ambac's (ABK 3.77, -2.26) stock has plummeted 37% to its all-time low after the bond insurer reported a massive $5.42 per share loss on $1.7 billion in write-downs and a $1.0 billion increase in loan loss provisions. Analysts were looking for a much smaller loss of $1.51 per share. Unlike a month ago, the market's disappointment has largely been contained to Ambac and its peers, although the financial sector (+0.2%) is underperforming on a relative basis.
Technology has really been the driving force behind this session's strength, with the tech sector gaining 1.4%. Interestingly three of the four largest gainers -- Apple (AAPL 164.15, +3.95), Microsoft (MSFT) and Qualcomm (QCOM 42.27, +0.72) -- did not report earnings this session. Apple and Qualcomm are set to announce their respective earnings reports after the closing bell today. Broadcom is the remaining leader, which topped expectations as mentioned above.
There are no economic reports this session, although the government did release its weekly energy statistics. The Department of Energy said crude stockpiles rose by 2.42 million barrels, which was larger than the expected 1.50 million increase. Crude traded in a choppy manner following the report, and is currently down 0.3% to 117.78 per barrel.DJ30 +68.47 NASDAQ +28.01 SP500 +6.19 NASDAQ Dec/Adv/Vol 1152/1532/914 mln NYSE Dec/Adv/Vol 1335/1658/528 mln
11:30 am : The major indices dip off their best levels, but continue to hold solid gains. Energy (-0.5%) and financials (+0.2%) -- which account for nearly 30% of the S&P 500 -- are keeping buying interest in check as they underperform on a relative basis.
The CRB Commodity Index (-0.5%) -- which tracks a basket of 19 commodities -- hit an all-time nominal high in yesterday's trade as crude and grain prices spiked higher. The index has seen some selling interest this session, as investors take profits and the dollar rises 0.85%.
DJ30 +70.10 NASDAQ +28.28 SP500 +7.57 NASDAQ Dec/Adv/Vol 1093/1557/795 mln NYSE Dec/Adv/Vol 1258/1687/458 mln
11:05 am : The major indices climb higher, with sentiment leaning positive. Only materials (-0.2%) and energy (-0.7%) remain in the red. Crude oil has pared some of its losses, now only down 0.1%, even though inventories rose by a larger than expected amount -- which is usually bearish for crude prices.
Just last month, any rumor or comment regarding Ambac Financial (ABK 4.22, -1.81) made the market go on massive swings. Market participants were afraid that if Ambac lost its AAA credit rating, it would cause a chain reaction in write-offs at financial firms. This session Ambac reported a massive $5.42 per share loss on $1.7 billion in write-downs and a $1.0 billion increase in loan loss provisions. The market was looking for a much smaller loss of $1.51 per share.
Yet disappointment has been contained to Ambac and its peers such as MBIA (MBI 11.48, -1.80). Ambac's stock is plummeting nearly 30% to a fresh all-time low in the company's nearly 20 years of public trading. Possibly mitigating selling interest in the broader market is word from the company that it exceeds S&P's AAA capital requirements, and expects to meet Moody's Aaa target level of capital in the second quarter.DJ30 +90.54 NASDAQ +30.81 SP500 +9.46 NASDAQ Dec/Adv/Vol 1006/1587/678 mln NYSE Dec/Adv/Vol 1163/1753/391 mln
10:30 am : The major indices catch a modest bid, led by tech stocks (+1.1%). The major indices are trading at their best levels of the session.
After hitting an all-time high of $119.90 per barrel in yesterday's trade, crude oil retreated as the contract switched to June delivery from May delivery. Prices are set to go on the move, as the government's weekly energy report just hit the wires. The Department of Energy said crude stockpiles rose by 2.42 million barrels, which is larger than the expected build of 1.50 million barrels. Just prior to the release, crude was trading down 0.8% to $117.11 per barrel.DJ30 +43.64 NASDAQ +23.44 SP500 +4.15 NASDAQ Dec/Adv/Vol 1186/1271/409 mln NYSE Dec/Adv/Vol 1462/1346/254 mln
09:55 am : The stock market is clutching the unchanged mark. The ten sectors are split down the middle, with five in the red and five in the green -- which reflects the indecisiveness of market participants this morning.
The Nasdaq Composite, led by large cap tech, is modestly outperforming as it posts a decent gain. Apple (AAPL 163.34, +3.14) is providing leadership ahead of its earnings report after this session's close. Shares of Broadcom (BRCM 26.06, +2.51) are up roughly 11% after the company's first quarter results exceeded expectations and the firm guided second quarter revenue above the consensus estimate.DJ30 +0.73 NASDAQ +11.90 SP500 +0.43 NASDAQ Dec/Adv/Vol 1105/1188/226 mln NYSE Dec/Adv/Vol 1504/1229/133 mln
09:40 am : After some swings in premarket trading, the stock market opens on a slightly higher note. The market has been sifting through a multitude of earnings reports. Results have been mixed.
Yahoo! (YHOO), Yum Brands (YUM), EMC Corp. (EMC), Biogen-Idec (BIIB) and Freeport-McMoRan (FCX) all topped expectations.
Boeing (BA) beat its estimate, but reaffirmed 2008 earnings guidance that falls below expectations. UPS (UPS) reported in-line earnings, but cut its full year outlook.
In deal news, Liberty Mutual will acquire Safeco (SAF) for $68.25 per share in cash, or $6.2 billion. It has been approved by the board of directors of both companies. DJ30 +10.50 NASDAQ +10.25 SP500 +2.31 NASDAQ Dec/Adv/Vol 914/1216/108 mln NYSE Dec/Adv/Vol 1169/1400/73 mln
09:17 am : S&P futures vs fair value: +4.5. Nasdaq futures vs fair value: +16.2. There is an acquisition deal of note this morning. Liberty Mutual will acquire Safeco (SAF) for $68.25 per share in cash, or $6.2 billion. It has been approved by the board of directors of both companies.
09:00 am : S&P futures vs fair value: +1.3. Nasdaq futures vs fair value: +12.8. S&P 500 futures versus fair value join the Nasdaq in the green. Biotech firm Genzyme (GENZ) topped its earnings estimates, but issued downside earnings guidance for full year 2008. Separately, crude oil is trading down 0.6% ahead of the government's weekly energy report.
08:30 am : S&P futures vs fair value: -0.3. Nasdaq futures vs fair value: +10.0. S&P 500 futures are flat, while Nasdaq futures indicate a modestly higher start. Apple (AAPL) is aiding in the Nasdaq's outperformance. Its stock is up roughly 1% ahead of the company's earnings report after the close today.
08:00 am : S&P futures vs fair value: -0.2. Nasdaq futures vs fair value: +9.8. S&P 500 Futures point to a flat start as a barrage of earnings reports hit the wires. Yahoo! (YHOO) reported earnings that topped estimates, marking its first profit increase in two years. UPS (UPS) reported in-line earnings, but had some cautious comments regarding the economic outlook. Boeing's (BA) earnings topped estimates, but reaffirmed its full year 2008 earnings guidance below the consensus estimate. Ambac (ABK) reported a loss of $6.93 per share, which is $5.42 worse than expectations. The firm says it exceeds S&P's AAA capital requirements, and expects to meet Moody's Aaa target level of capital in the second quarter.
06:17 am : S&P futures vs fair value: +5.0. Nasdaq futures vs fair value: +10.0.
06:17 am : FTSE...6039.10...+4.40...+0.1%. DAX...6762.76...+34.46...+0.5%.
06:17 am : Nikkei...13579.16...+31.34...+0.2%. Hang Seng...25289.24...+350.09...+1.4%.
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