AI
Tuesday, April 29, 2008 7:05:00 PM
Market Update 080429
http://biz.yahoo.com/mu/update.html
4:25 pm : On Tuesday, market participants were hesitant to make any concerted moves ahead of Wednesday's first quarter GDP reading and FOMC policy announcement. As a result, the stock market posted a slight loss, in relatively light trading volume. Better than expected earnings helped offset some disappointment over dismal housing data, and a sharp drop in a Dow component's stock.
More than 100 companies reported their quarterly earnings after Monday's close and before Tuesday's opening bell.
Credit card processors Visa (V 80.88, +5.25) and MasterCard (MA 273.98, +31.48) both reported earnings results that topped their respective estimates. Visa topped its estimate by 17%, while MasterCard beat by 30%. Shares of Visa were sharply lower in premarket trading on its report, but rebounded into the green as traders embraced MasterCard's large beat. Shares of Visa are now up 84% since the company's March 19 IPO, while shares of MasterCard are up 30% during that same period.
Other notable names that topped estimates include, Archer-Daniels Midland (ADM 45.58, -1.84), Avon Products (AVP 40.26, +0.18), Burlington Northern (BNI 102.72, +1.60), Corning (GLW 26.53, +0.85) and MedcoHealth Solutions (MHS 49.12, -2.19).
Yet the worst performing stock within the S&P 500, Merck (MRK 37.14, -4.30), had nothing to do with an earnings report. Traders sold off the Dow component's stock after the company issued a press release stating its cholesterol drug Cordaptive was not approved by the FDA. This came as shock to analysts, who generally thought it would get approved. Merck reaffirmed its full year 2008 earnings outlook despite not getting approval for the drug, yet that did little to ease fears. Traders drove the stock down more than 10%, sending it near its 52-week low.
Economic news was not good, although consumer sentiment did decline less than expected.
The Conference Board said April consumer confidence fell to 62.3 from 65.9, marking the lowest consumer confidence in roughly five years. The number, however, is better than expected as economists projected the reading to slip to 61.0. This is just a survey, and does not have that strong of correlation to actual consumer spending.
The housing market remains in a rut. The S&P/Case-Shiller Home Price Index posted a record 12.7% year-over-year decline in its 20-city composite. Las Vegas had the steepest drop, with a 22.8% slip in home prices, while Charlotte was the sole city to post a gain, up 1.5%. In a separate report, first quarter foreclosures increased by 23% from the previous quarter, and spiked 112% from one year ago, according to RealtyTrac.
Separately, commodities posted a steep 1.9% decline, with oil retreating 2.9% and gold sliding 2.6%. A portion of the selling interest was fueled by a 0.52% gain in the Dollar Index.
The slide in commodities and oil prices prompted traders to lock in some profits in materials (-3.1%) and energy (-1.5%) stocks, which were the two worst-performing sectors on Tuesday. Despite this session's decline, the sectors are still the best-performing this year, with energy up 1.6% and materials up 0.9%.
Four of the ten sectors posted a gain, led by telecom (+0.9%) and tech (+0.6%).DJ30 -39.81 NASDAQ +1.70 NQ100 +0.5% R2K -0.7% SP400 -0.9% SP500 -5.43 NASDAQ Dec/Adv/Vol 1662/1171/1.75 bln NYSE Dec/Adv/Vol 1798/1314/1.23 bln
3:30 pm : The stock market is trading with a slight loss going into the final half-hour of trade. The Nasdaq Composite continues to sport a modest gain.
Tomorrow brings a busy day, with the release of first quarter GDP and the FOMC policy annoucement. Economists expect that first quarter GDP rose by 0.5%, which is sluggish but, more importantly, not a decline. Fed funds futures price an 80% chance of a 25 basis point cut, with the rest of the odds on no change.DJ30 -25.89 NASDAQ +4.05 SP500 -3.89 NASDAQ Dec/Adv/Vol 1604/1234/1.43 bln NYSE Dec/Adv/Vol 1790/1323/934 mln
3:00 pm : The S&P 500 is trading at its best level since shortly after the opening bell, though it is still posting a slight loss. Meanwhile, the Nasdaq climbs to fresh session highs as the tech sector (+0.9%) shows some strength. Six sectors remain in the red, with materials (-2.7%) taking the brunt of the selling pressure.
Shares of agricultural chemical company Monsanto (MON 111.53, -10.46) are getting clipped as traders lock in some profits. Despite this session's 8.6% drop, long-term holders of the company don't have much to complain about, considering its stock has had a total return of 94% compared to one year ago, versus the S&P 500's decline of 4%.DJ30 +2.69 NASDAQ +8.58 SP500 -0.58 NASDAQ Dec/Adv/Vol 1566/1252/1.27 bln NYSE Dec/Adv/Vol 1727/1341/828 mln
2:30 pm : The S&P 500 is trading with a slight loss, while the Nasdaq composite is now trading with a slight gain. The trading action as been relatively tame within the stock market, however, the same cannot be said about commodities.
The CRB Index, which tracks a basket of 19 commodities, is down 1.9%. Energy is playing a large role in the decline, with natural gas falling 4.2% and crude sliding 2.4%. Precious metals are also facing some selling interest, with gold down 2.2% and silver retreating 2.8%.
The dollar is up 0.46% against six leading word currencies, which is adding to the selling interest within commodities.DJ30 -21.33 NASDAQ +1.78 SP500 -3.32 NASDAQ Dec/Adv/Vol 1649/1165/1.16 bln NYSE Dec/Adv/Vol 1839/1222/759 mln
1:55 pm : The major indices are trading with slight losses, with the S&P 500 trailing the Dow and Nasdaq.
The S&P 500 is practically split down the middle, with nearly 50% of issues posting a gain, and 50% posting a loss. Leading the way are Chevron (CVX 94.92, +2.42) and Abbot Laboratories (ABT 53.60, +1.99). Merck (MRK 37.31, -4.13) and Monsanto (MON 114.56, -7.43) are the main laggards.DJ30 -29.72 NASDAQ -2.43 SP500 -4.13 NASDAQ Dec/Adv/Vol 1648/1135/1.04 bln NYSE Dec/Adv/Vol 1867/1180/684 mln
1:30 pm : The stock market is slowly trending toward the neutral line, despite broad-based bearishness.
CBS Corp. (CBS 23.18, +0.64) has performed well this session. The company announced earnings per share results earlier today that surpassed analysts' expectations. Now, according to Reuters, CBS and NBC Universal, which is owned by General Electric (GE 32.80, -0.37) plan to bid between $3.5 billion and $4.0 billion for the privately held Weather Channel. Shares of both CBS and GE hit a 52-week low just two weeks ago.DJ30 -26.87 NASDAQ -1.72 SP500 -4.06 NASDAQ Dec/Adv/Vol 1655/1112/958.16 mln NYSE Dec/Adv/Vol 1872/1157/640.27 mln
1:00 pm : The stock market is off its worst level when it was down 0.7%, but continues to post a modest loss of 0.4%.
Market breadth is bearish. Decliners outpace advancers by 5-to-3 on the NYSE, and by 8-to-5 on the Nasdaq. Volume is on the light side, as was the case yesterday.DJ30 -42.58 NASDAQ -9.94 SP500 -6.02 NASDAQ Dec/Adv/Vol 1729/1029/849 mln NYSE Dec/Adv/Vol 1927/1086/583 mln
12:30 pm : The major indices are heading sideways, as neither buyers nor sellers are showing much conviction. Telecom (+0.8%) is leading the way, and has now rebounded an impressive 13% from its 52-week low. However, telecom is still the worst performing sector this year, with a 12% decline.
Crude oil has extended its losses, and is now down 3.0% to $115.18 per barrel. According to reports, BP's pipeline in the North Sea is back in operation following a two-day worker strike.DJ30 -26.22 NASDAQ -6.71 SP500 -5.14 NASDAQ Dec/Adv/Vol 1677/1045/763 mln NYSE Dec/Adv/Vol 1886/1117/530 mln
12:00 pm : After starting the trading day on the unchanged line, the major indices are posting modest losses. Traders are somewhat cautious ahead of tomorrow's GDP reading and FOMC announcement, as was the case yesterday. Over 100 companies reported their quarterly results, yet the most influential company on this session's trading -- Merck (MRK 37.56, -3.88) -- was not even on the market's radar until last night.
In a press release issued after Monday's close, Merck announced its cholesterol drug Cordaptive was not approved by the FDA, and did not provide further details. This came as shock to analysts, who generally thought it would get approved. Shares of the Dow component have fallen 9.4% this session, after already getting hit hard earlier this year on word that two of its current cholesterol fighting drugs -- Vytorian and Zetia -- may not be effective.
For the most part, earnings news has better than expected. Credit card processors Visa (V 76.53, +0.90) and MasterCard (MA 268.25, +25.75) both reported their quarterly news. Visa topped its estimate by 17%, while MasterCard beat by 30%. Shares of Visa were sharply lower in premarket trading on its report, but pared their losses as traders embraced MasterCard's large beat.
Other notable names that topped estimates include, Burlington Northern (BNI 102.63, +1.51), Archer-Daniels Midland (ADM 45.11, -2.31) and Corning (GLW 26.13, +0.43).
Countrywide (CFC 5.90, +0.07) was a noteworthy company that missed expectations, as it reported a loss of $1.60 compared to the expected profit of two cents. Since the company is in the process of being acquired by Bank of America (BAC 37.83, -0.35), the report did not have an effect on the broader market.
Economic news was not good, although consumer sentiment did decline less than expected.
The Conference Board said April consumer confidence fell to 62.3 from the upwardly revised March figure of 65.9. The number, however, is better than expected as economists projected the reading to slip to 61.0. This marks the lowest consumer confidence since 2003, but note that this is just a survey, and does not provide a perfect indication of consumer spending.
The housing market remains under pressure. The S&P/Case-Shiller Home Price Index posted a record 12.7% year-over-year decline in its 20-city composite. Las Vegas saw the steepest drop, with a 22.8% slip in home prices, while Charlotte was the sole city to post a gain, up 1.5%.
At midday, eight of the ten economic sectors are posting a loss. The main laggards are energy (-1.2%) and materials (-2.3%) as commodity prices slide 1.3%, with oil down 1.9%. Telecom (+0.6%) and tech (+0.2%) are providing leadership. DJ30 -49.01 NASDAQ -9.09 SP500 -7.43 NASDAQ Dec/Adv/Vol 1644/1053/674 mln NYSE Dec/Adv/Vol 1912/1070/473 mln
11:30 am : The major indices are slowly paring their losses, with large-cap tech showing some modest buying interest. The Nasdaq 100 is up 0.1%, easily outperforming the S&P 500's 0.4% decline.
Leading the way are Apple (AAPL 174.56, +2.32) and Research In Motion (RIMM 124.54, +2.15) -- two of best performing Nasdaq 100 names in the last year with gains of 74% and 175%, respectively. Some of their strength is being offset by weakness in software giant Microsoft (MSFT 28.55, -0.44). Shares of Microsoft have been under pressure since April 25, when traders were disappointed with its earnings report.DJ30 -33.46 NASDAQ -4.80 SP500 -6.02 NASDAQ Dec/Adv/Vol 1571/1082/586 mln NYSE Dec/Adv/Vol 1870/1059/410 mln
11:00 am : The stock market continues to post a modest loss as buyers are not showing much interest. Market participants were also cautious yesterday, as Wednesday brings the first quarter GDP reading and the FOMC policy announcement.
The homebuilding (-1.8%) and building product (-3.9%) groups are coming under some selling pressure after the S&P/Case-Shiller Home Price Indices posted record year-over-year declines. Its 10-city composite had an annual decline of 13.6% in February -- its steepest drop since its creation in 1988. The 20-city composite slid by 12.5%, also its largest decline.
Las Vegas was hit the hardest, with home prices falling 22.8%, but Miami, with a drop of 21.7%, was not far behind. The only metro area to see price appreciation was Charlotte, up 1.5%. Interestingly, despite the declines, Miami still has the best price gains in the composite since 2000, up nearly 120%, while Charlotte is one of the worst-performing cities with only a 31% gain. It is clear that the housing industry is still weak and facing headwinds.DJ30 -52.27 NASDAQ -10.62 SP500 -8.29 NASDAQ Dec/Adv/Vol 1589/994/482 mln NYSE Dec/Adv/Vol 1906/999/345 mln
10:35 am : Despite the better than expected consumer confidence number, the stock market has steadily drifted lower. Losses are modest at 0.5%, though. Nine of the ten economic sectors are in the red, with only telecom (+0.1%) posting a gain.
Electronic payment processors Visa (V 75.34, -0.29) and MasterCard (MA 266.19, +23.69) are garnering the market's attention as both companies reported their quarterly results. Visa kicked off things after yesterday's close, with earnings of $0.52 per share, which topped the consensus estimate by 16%. Yet its stock was down more than 7% in premarket trading, as traders had even higher hopes considering Visa's stock has skyrocketed 72% from its March 19 IPO.
MasterCard reported its results before the open this morning, posting earnings of $2.59 per share, which trounced estimates by 30%. Its shares have soared 10% to a fresh all-time high on the news, and helped Visa pare its losses to only a 0.4% decline.DJ30 -44.70 NASDAQ -12.24 SP500 -7.66 NASDAQ Dec/Adv/Vol 1494/1013/355 mln NYSE Dec/Adv/Vol 1796/1039/257 mln
10:05 am : Just hitting the wires, the Conference Board said April consumer confidence fell to 62.3 from 65.9. The number, however, is better than expected as economists projected the reading to slip to 61.0. This marks the lowest consumer confidence since 2003. It is important to keep in mind that this is just a survey, and does not provide a perfect indication of consumer spending.
The stock market did not have much of a reaction immediately following the report. Stocks had already fallen into the red, and continue to post a modest loss. The materials sector (-1.6%) is a laggard in the early going. The commodity index (-1.2%) is seeing some selling pressure as the dollar gains 0.5%.DJ30 +4.07 NASDAQ -0.98 SP500 -2.03 NASDAQ Dec/Adv/Vol 1296/1038/178 mln NYSE Dec/Adv/Vol 1556/1138/141 mln
09:40 am : The major indices open on a muted note. Dow component Merck (MRK) is acting as the main drag in the early-going. The company announced the FDA denied approval of its Cordaptive cholesterol drug.
However, most companies have reported better than expected quarterly earnings, which is helping to keep selling interest in check. Some of the bigger names that topped estimates include MasterCard (MA), Visa (V), Burlington Northern (BNI), Archer-Daniels Midland (ADM) and Corning (GLW).
According to S&P/Case-Shiller Index, home prices in a composite of 20 metro areas fell 12.7% year-over-year, which was larger than the expected 12% drop. Market participants have come to expect dismal housing data, so the report had a negligible effect on trading.DJ30 +5.54 NASDAQ -0.59 SP500 -0.39 NASDAQ Dec/Adv/Vol 1013/1062/58 mln NYSE Dec/Adv/Vol 1322/1089/60 mln
09:17 am : S&P futures vs fair value: -3.3. Nasdaq futures vs fair value: -8.0.
08:57 am : S&P futures vs fair value: -2.6. Nasdaq futures vs fair value: -6.2.
08:31 am : S&P futures vs fair value: -1.1. Nasdaq futures vs fair value: -6.2. S&P 500 futures suggest a slightly lower start. MasterCard (MA) reported first quarter earnings of $2.59 per share, ex items, which was $0.59 better the the consensus estimate. US Steel (X) topped its earnings estimates by seventeen cents.
08:00 am : S&P futures vs fair value: -2.6. Nasdaq futures vs fair value: -7.5. Futures suggest a modestly lower start to the trading day. Shares of Merck (MRK) are under pressure after the company said its new drug application for Cordaptive did not receive approval from the FDA. Visa (V) reported earnings that topped the consensus estimate, but its stock is still trading lower as the results were not enough to meet traders' high expectations. In other earnings news, CBS (CBS), Corning (GLW), McGraw-Hill (MHP), Office Depot (ODP) and Waste Management (WMI) all beat their respective earnings estimates.
06:17 am : S&P futures vs fair value: -3.7. Nasdaq futures vs fair value: -9.5.
06:16 am : FTSE...6114.20...+23.80...+0.4%. DAX...6887.37...-37.96...-0.6%.
06:16 am : Nikkei...Holiday......... Hang Seng...25914.15...+247.86...+1.0%.
http://biz.yahoo.com/mu/update.html
4:25 pm : On Tuesday, market participants were hesitant to make any concerted moves ahead of Wednesday's first quarter GDP reading and FOMC policy announcement. As a result, the stock market posted a slight loss, in relatively light trading volume. Better than expected earnings helped offset some disappointment over dismal housing data, and a sharp drop in a Dow component's stock.
More than 100 companies reported their quarterly earnings after Monday's close and before Tuesday's opening bell.
Credit card processors Visa (V 80.88, +5.25) and MasterCard (MA 273.98, +31.48) both reported earnings results that topped their respective estimates. Visa topped its estimate by 17%, while MasterCard beat by 30%. Shares of Visa were sharply lower in premarket trading on its report, but rebounded into the green as traders embraced MasterCard's large beat. Shares of Visa are now up 84% since the company's March 19 IPO, while shares of MasterCard are up 30% during that same period.
Other notable names that topped estimates include, Archer-Daniels Midland (ADM 45.58, -1.84), Avon Products (AVP 40.26, +0.18), Burlington Northern (BNI 102.72, +1.60), Corning (GLW 26.53, +0.85) and MedcoHealth Solutions (MHS 49.12, -2.19).
Yet the worst performing stock within the S&P 500, Merck (MRK 37.14, -4.30), had nothing to do with an earnings report. Traders sold off the Dow component's stock after the company issued a press release stating its cholesterol drug Cordaptive was not approved by the FDA. This came as shock to analysts, who generally thought it would get approved. Merck reaffirmed its full year 2008 earnings outlook despite not getting approval for the drug, yet that did little to ease fears. Traders drove the stock down more than 10%, sending it near its 52-week low.
Economic news was not good, although consumer sentiment did decline less than expected.
The Conference Board said April consumer confidence fell to 62.3 from 65.9, marking the lowest consumer confidence in roughly five years. The number, however, is better than expected as economists projected the reading to slip to 61.0. This is just a survey, and does not have that strong of correlation to actual consumer spending.
The housing market remains in a rut. The S&P/Case-Shiller Home Price Index posted a record 12.7% year-over-year decline in its 20-city composite. Las Vegas had the steepest drop, with a 22.8% slip in home prices, while Charlotte was the sole city to post a gain, up 1.5%. In a separate report, first quarter foreclosures increased by 23% from the previous quarter, and spiked 112% from one year ago, according to RealtyTrac.
Separately, commodities posted a steep 1.9% decline, with oil retreating 2.9% and gold sliding 2.6%. A portion of the selling interest was fueled by a 0.52% gain in the Dollar Index.
The slide in commodities and oil prices prompted traders to lock in some profits in materials (-3.1%) and energy (-1.5%) stocks, which were the two worst-performing sectors on Tuesday. Despite this session's decline, the sectors are still the best-performing this year, with energy up 1.6% and materials up 0.9%.
Four of the ten sectors posted a gain, led by telecom (+0.9%) and tech (+0.6%).DJ30 -39.81 NASDAQ +1.70 NQ100 +0.5% R2K -0.7% SP400 -0.9% SP500 -5.43 NASDAQ Dec/Adv/Vol 1662/1171/1.75 bln NYSE Dec/Adv/Vol 1798/1314/1.23 bln
3:30 pm : The stock market is trading with a slight loss going into the final half-hour of trade. The Nasdaq Composite continues to sport a modest gain.
Tomorrow brings a busy day, with the release of first quarter GDP and the FOMC policy annoucement. Economists expect that first quarter GDP rose by 0.5%, which is sluggish but, more importantly, not a decline. Fed funds futures price an 80% chance of a 25 basis point cut, with the rest of the odds on no change.DJ30 -25.89 NASDAQ +4.05 SP500 -3.89 NASDAQ Dec/Adv/Vol 1604/1234/1.43 bln NYSE Dec/Adv/Vol 1790/1323/934 mln
3:00 pm : The S&P 500 is trading at its best level since shortly after the opening bell, though it is still posting a slight loss. Meanwhile, the Nasdaq climbs to fresh session highs as the tech sector (+0.9%) shows some strength. Six sectors remain in the red, with materials (-2.7%) taking the brunt of the selling pressure.
Shares of agricultural chemical company Monsanto (MON 111.53, -10.46) are getting clipped as traders lock in some profits. Despite this session's 8.6% drop, long-term holders of the company don't have much to complain about, considering its stock has had a total return of 94% compared to one year ago, versus the S&P 500's decline of 4%.DJ30 +2.69 NASDAQ +8.58 SP500 -0.58 NASDAQ Dec/Adv/Vol 1566/1252/1.27 bln NYSE Dec/Adv/Vol 1727/1341/828 mln
2:30 pm : The S&P 500 is trading with a slight loss, while the Nasdaq composite is now trading with a slight gain. The trading action as been relatively tame within the stock market, however, the same cannot be said about commodities.
The CRB Index, which tracks a basket of 19 commodities, is down 1.9%. Energy is playing a large role in the decline, with natural gas falling 4.2% and crude sliding 2.4%. Precious metals are also facing some selling interest, with gold down 2.2% and silver retreating 2.8%.
The dollar is up 0.46% against six leading word currencies, which is adding to the selling interest within commodities.DJ30 -21.33 NASDAQ +1.78 SP500 -3.32 NASDAQ Dec/Adv/Vol 1649/1165/1.16 bln NYSE Dec/Adv/Vol 1839/1222/759 mln
1:55 pm : The major indices are trading with slight losses, with the S&P 500 trailing the Dow and Nasdaq.
The S&P 500 is practically split down the middle, with nearly 50% of issues posting a gain, and 50% posting a loss. Leading the way are Chevron (CVX 94.92, +2.42) and Abbot Laboratories (ABT 53.60, +1.99). Merck (MRK 37.31, -4.13) and Monsanto (MON 114.56, -7.43) are the main laggards.DJ30 -29.72 NASDAQ -2.43 SP500 -4.13 NASDAQ Dec/Adv/Vol 1648/1135/1.04 bln NYSE Dec/Adv/Vol 1867/1180/684 mln
1:30 pm : The stock market is slowly trending toward the neutral line, despite broad-based bearishness.
CBS Corp. (CBS 23.18, +0.64) has performed well this session. The company announced earnings per share results earlier today that surpassed analysts' expectations. Now, according to Reuters, CBS and NBC Universal, which is owned by General Electric (GE 32.80, -0.37) plan to bid between $3.5 billion and $4.0 billion for the privately held Weather Channel. Shares of both CBS and GE hit a 52-week low just two weeks ago.DJ30 -26.87 NASDAQ -1.72 SP500 -4.06 NASDAQ Dec/Adv/Vol 1655/1112/958.16 mln NYSE Dec/Adv/Vol 1872/1157/640.27 mln
1:00 pm : The stock market is off its worst level when it was down 0.7%, but continues to post a modest loss of 0.4%.
Market breadth is bearish. Decliners outpace advancers by 5-to-3 on the NYSE, and by 8-to-5 on the Nasdaq. Volume is on the light side, as was the case yesterday.DJ30 -42.58 NASDAQ -9.94 SP500 -6.02 NASDAQ Dec/Adv/Vol 1729/1029/849 mln NYSE Dec/Adv/Vol 1927/1086/583 mln
12:30 pm : The major indices are heading sideways, as neither buyers nor sellers are showing much conviction. Telecom (+0.8%) is leading the way, and has now rebounded an impressive 13% from its 52-week low. However, telecom is still the worst performing sector this year, with a 12% decline.
Crude oil has extended its losses, and is now down 3.0% to $115.18 per barrel. According to reports, BP's pipeline in the North Sea is back in operation following a two-day worker strike.DJ30 -26.22 NASDAQ -6.71 SP500 -5.14 NASDAQ Dec/Adv/Vol 1677/1045/763 mln NYSE Dec/Adv/Vol 1886/1117/530 mln
12:00 pm : After starting the trading day on the unchanged line, the major indices are posting modest losses. Traders are somewhat cautious ahead of tomorrow's GDP reading and FOMC announcement, as was the case yesterday. Over 100 companies reported their quarterly results, yet the most influential company on this session's trading -- Merck (MRK 37.56, -3.88) -- was not even on the market's radar until last night.
In a press release issued after Monday's close, Merck announced its cholesterol drug Cordaptive was not approved by the FDA, and did not provide further details. This came as shock to analysts, who generally thought it would get approved. Shares of the Dow component have fallen 9.4% this session, after already getting hit hard earlier this year on word that two of its current cholesterol fighting drugs -- Vytorian and Zetia -- may not be effective.
For the most part, earnings news has better than expected. Credit card processors Visa (V 76.53, +0.90) and MasterCard (MA 268.25, +25.75) both reported their quarterly news. Visa topped its estimate by 17%, while MasterCard beat by 30%. Shares of Visa were sharply lower in premarket trading on its report, but pared their losses as traders embraced MasterCard's large beat.
Other notable names that topped estimates include, Burlington Northern (BNI 102.63, +1.51), Archer-Daniels Midland (ADM 45.11, -2.31) and Corning (GLW 26.13, +0.43).
Countrywide (CFC 5.90, +0.07) was a noteworthy company that missed expectations, as it reported a loss of $1.60 compared to the expected profit of two cents. Since the company is in the process of being acquired by Bank of America (BAC 37.83, -0.35), the report did not have an effect on the broader market.
Economic news was not good, although consumer sentiment did decline less than expected.
The Conference Board said April consumer confidence fell to 62.3 from the upwardly revised March figure of 65.9. The number, however, is better than expected as economists projected the reading to slip to 61.0. This marks the lowest consumer confidence since 2003, but note that this is just a survey, and does not provide a perfect indication of consumer spending.
The housing market remains under pressure. The S&P/Case-Shiller Home Price Index posted a record 12.7% year-over-year decline in its 20-city composite. Las Vegas saw the steepest drop, with a 22.8% slip in home prices, while Charlotte was the sole city to post a gain, up 1.5%.
At midday, eight of the ten economic sectors are posting a loss. The main laggards are energy (-1.2%) and materials (-2.3%) as commodity prices slide 1.3%, with oil down 1.9%. Telecom (+0.6%) and tech (+0.2%) are providing leadership. DJ30 -49.01 NASDAQ -9.09 SP500 -7.43 NASDAQ Dec/Adv/Vol 1644/1053/674 mln NYSE Dec/Adv/Vol 1912/1070/473 mln
11:30 am : The major indices are slowly paring their losses, with large-cap tech showing some modest buying interest. The Nasdaq 100 is up 0.1%, easily outperforming the S&P 500's 0.4% decline.
Leading the way are Apple (AAPL 174.56, +2.32) and Research In Motion (RIMM 124.54, +2.15) -- two of best performing Nasdaq 100 names in the last year with gains of 74% and 175%, respectively. Some of their strength is being offset by weakness in software giant Microsoft (MSFT 28.55, -0.44). Shares of Microsoft have been under pressure since April 25, when traders were disappointed with its earnings report.DJ30 -33.46 NASDAQ -4.80 SP500 -6.02 NASDAQ Dec/Adv/Vol 1571/1082/586 mln NYSE Dec/Adv/Vol 1870/1059/410 mln
11:00 am : The stock market continues to post a modest loss as buyers are not showing much interest. Market participants were also cautious yesterday, as Wednesday brings the first quarter GDP reading and the FOMC policy announcement.
The homebuilding (-1.8%) and building product (-3.9%) groups are coming under some selling pressure after the S&P/Case-Shiller Home Price Indices posted record year-over-year declines. Its 10-city composite had an annual decline of 13.6% in February -- its steepest drop since its creation in 1988. The 20-city composite slid by 12.5%, also its largest decline.
Las Vegas was hit the hardest, with home prices falling 22.8%, but Miami, with a drop of 21.7%, was not far behind. The only metro area to see price appreciation was Charlotte, up 1.5%. Interestingly, despite the declines, Miami still has the best price gains in the composite since 2000, up nearly 120%, while Charlotte is one of the worst-performing cities with only a 31% gain. It is clear that the housing industry is still weak and facing headwinds.DJ30 -52.27 NASDAQ -10.62 SP500 -8.29 NASDAQ Dec/Adv/Vol 1589/994/482 mln NYSE Dec/Adv/Vol 1906/999/345 mln
10:35 am : Despite the better than expected consumer confidence number, the stock market has steadily drifted lower. Losses are modest at 0.5%, though. Nine of the ten economic sectors are in the red, with only telecom (+0.1%) posting a gain.
Electronic payment processors Visa (V 75.34, -0.29) and MasterCard (MA 266.19, +23.69) are garnering the market's attention as both companies reported their quarterly results. Visa kicked off things after yesterday's close, with earnings of $0.52 per share, which topped the consensus estimate by 16%. Yet its stock was down more than 7% in premarket trading, as traders had even higher hopes considering Visa's stock has skyrocketed 72% from its March 19 IPO.
MasterCard reported its results before the open this morning, posting earnings of $2.59 per share, which trounced estimates by 30%. Its shares have soared 10% to a fresh all-time high on the news, and helped Visa pare its losses to only a 0.4% decline.DJ30 -44.70 NASDAQ -12.24 SP500 -7.66 NASDAQ Dec/Adv/Vol 1494/1013/355 mln NYSE Dec/Adv/Vol 1796/1039/257 mln
10:05 am : Just hitting the wires, the Conference Board said April consumer confidence fell to 62.3 from 65.9. The number, however, is better than expected as economists projected the reading to slip to 61.0. This marks the lowest consumer confidence since 2003. It is important to keep in mind that this is just a survey, and does not provide a perfect indication of consumer spending.
The stock market did not have much of a reaction immediately following the report. Stocks had already fallen into the red, and continue to post a modest loss. The materials sector (-1.6%) is a laggard in the early going. The commodity index (-1.2%) is seeing some selling pressure as the dollar gains 0.5%.DJ30 +4.07 NASDAQ -0.98 SP500 -2.03 NASDAQ Dec/Adv/Vol 1296/1038/178 mln NYSE Dec/Adv/Vol 1556/1138/141 mln
09:40 am : The major indices open on a muted note. Dow component Merck (MRK) is acting as the main drag in the early-going. The company announced the FDA denied approval of its Cordaptive cholesterol drug.
However, most companies have reported better than expected quarterly earnings, which is helping to keep selling interest in check. Some of the bigger names that topped estimates include MasterCard (MA), Visa (V), Burlington Northern (BNI), Archer-Daniels Midland (ADM) and Corning (GLW).
According to S&P/Case-Shiller Index, home prices in a composite of 20 metro areas fell 12.7% year-over-year, which was larger than the expected 12% drop. Market participants have come to expect dismal housing data, so the report had a negligible effect on trading.DJ30 +5.54 NASDAQ -0.59 SP500 -0.39 NASDAQ Dec/Adv/Vol 1013/1062/58 mln NYSE Dec/Adv/Vol 1322/1089/60 mln
09:17 am : S&P futures vs fair value: -3.3. Nasdaq futures vs fair value: -8.0.
08:57 am : S&P futures vs fair value: -2.6. Nasdaq futures vs fair value: -6.2.
08:31 am : S&P futures vs fair value: -1.1. Nasdaq futures vs fair value: -6.2. S&P 500 futures suggest a slightly lower start. MasterCard (MA) reported first quarter earnings of $2.59 per share, ex items, which was $0.59 better the the consensus estimate. US Steel (X) topped its earnings estimates by seventeen cents.
08:00 am : S&P futures vs fair value: -2.6. Nasdaq futures vs fair value: -7.5. Futures suggest a modestly lower start to the trading day. Shares of Merck (MRK) are under pressure after the company said its new drug application for Cordaptive did not receive approval from the FDA. Visa (V) reported earnings that topped the consensus estimate, but its stock is still trading lower as the results were not enough to meet traders' high expectations. In other earnings news, CBS (CBS), Corning (GLW), McGraw-Hill (MHP), Office Depot (ODP) and Waste Management (WMI) all beat their respective earnings estimates.
06:17 am : S&P futures vs fair value: -3.7. Nasdaq futures vs fair value: -9.5.
06:16 am : FTSE...6114.20...+23.80...+0.4%. DAX...6887.37...-37.96...-0.6%.
06:16 am : Nikkei...Holiday......... Hang Seng...25914.15...+247.86...+1.0%.
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