AI
Tuesday, May 06, 2008 9:00:36 PM
Market Update 080506
http://biz.yahoo.com/mu/update.html
4:15 pm : On Tuesday, stocks got off to a negative start, but eventually ended the day with substantial gains after traders shrugged off record high crude prices, and seemingly bearish headlines out of financials and homebuilders. Specifically, the S&P 500 was down 0.7% shortly after the opening bell, and then steadily climbed higher to finish the day with a 0.8% gain.
Fannie Mae (FNM 30.81, +2.52) said it had a first quarter loss of $2.2 billion, or $2.57 per share, compared with earnings of $0.85 per share in the prior quarter. In an effort to shore up its balance sheet, Fannie is cutting its quarterly dividend by 30% to $0.25 per share and will raise $6 billion in capital. Its shares opened more than 7% lower, but quickly rebounded to finish the day with an advance of 9%. Fannie said that government regulators will be reducing Fannie's capital requirement level to 15% from 20%, which may have aided in the stock's reversal.
UBS (UBS 33.77, -0.54) reported a massive 11.5 billion Swiss francs loss (roughly $11 billion) for its most recent quarter, but the company had preannounced this result so it came as no surprise. UBS did provide some new information, though. UBS is selling $15 billion in mortgage assets to BlackRock (BLK 218.95, +3.55) and plans to eliminate 5,500 jobs by 2009.
Asset management firm Legg Mason (LM 56.30, -6.46) reported its first quarterly loss as a publicly traded company and is raising $1 billion in an equity units offering.
Homebuilder D.R. Horton (DHI 16.85, +0.88) reported a loss of $1.3 billion, or $4.14 per share, compared to its year-ago gain of $51.7 million, or $0.16 per share.
Crude oil remained in focus, with prices hitting an all-time intraday high of $122.73 per barrel before settling at a new all-time closing high of $121.82 per barrel. A Goldman Sachs analyst, who correctly predicted $100 per barrel oil, forecast that prices may spike to $200 a barrel within the next two years on lack of supply, according to reports.
A few months ago the market would have sold off on these headlines, yet it managed to end the day higher at its best level since January -- a testament to improved market sentiment since the Bear Stearns (BSC 10.84, +1.31) bailout in March. The S&P 500 has spiked 13% from its March 17 low, but is still down 3.4% this year.
Eight of the ten economic sectors ended the day in positive territory, with energy stocks posting the largest advance of 2.2%. Oil company Anadarko Petroleum (APC 74.53, +6.39) led the way with a 9.4% spike after it reported better than expected earnings.
Financials also showed strength, rebounding from a 1.9% loss to finish the day with a 0.9% gain. Financials saw buying interest as Fannie Mae's stock recovered.
Defensive sectors were out of favor, with utilities (+0.02%), telecom (-0.1%), health care (-0.04%) and consumer staples (+0.1%) all underperforming on a relative basis.DJ30 +51.29 NASDAQ +19.19 NQ100 +0.8% R2K +0.8% SP400 +0.8% SP500 +10.77 NASDAQ Dec/Adv/Vol 1222/1688/2.14 bln NYSE Dec/Adv/Vol 1168/1934/1.23 bln
3:30 pm : The stock market is trading near its best level of the session, as the energy sector (+2.4%) continues to climb higher. Within the energy sector, the oil & gas exploration group is posting the largest gain of 5.3%, extending its year-to-date advance to 32%.
Looking ahead, market participants will focus on earnings results after the close from Walt Disney (DIS 33.62, +0.33) and Cisco (CSCO 26.33, +0.05). Disney is expected to report earnings of $0.51 per share, and Cisco is expected to announce it earned $0.36 per share.DJ30 +53.65 NASDAQ +19.78 SP500 +11.21 NASDAQ Dec/Adv/Vol 1224/1682/1.76 bln NYSE Dec/Adv/Vol 1231/1859/943 mln
3:00 pm : The stock market extends to a new intraday high. All ten of the economic sectors are in positive territory for the first time this sessioin.
The tech sector (+1.1%) is having the most influential role on the recent push higher. Microsoft (MSFT 29.65, +0.57) and Yahoo! (YHOO 25.96, +1.59) are leading the way.
Crude oil closed at $121.82, which was off its session high of $122.73, but high enough to mark a new all-time closing high.DJ30 +46.81 NASDAQ +19.48 SP500 +10.57 NASDAQ Dec/Adv/Vol 1293/1629/1.61 bln NYSE Dec/Adv/Vol 1287/1796/860 mln
2:30 pm : The stock market dips off its best level, but remains in positive territory. Four sectors are now in negative territory, although losses are only slight.
Airline stocks did not participate in the stock market's afternoon recovery. The Amex Airline Index is down 3.8%, and has fallen 34% in 2008.DJ30 +20.51 NASDAQ +10.97 SP500 +10.97 NASDAQ Dec/Adv/Vol 1376/1509/1.46 bln NYSE Dec/Adv/Vol 1426/1643/779 mln
1:55 pm : The stock market is holding onto a decent-sized gain as it trades slightly below its recently reached session high. Only telecom (-0.2%) remains in the red, although health care and consumer staples are basically unchanged.
Market breadth has turned positive, with advancers outpacing decliners by 4-to-3 on the NYSE and by 6-to-5 on the Nasdaq.DJ30 +33.38 NASDAQ +14.13 SP500 +8.13 NASDAQ Dec/Adv/Vol 1279/1574/1.34 bln NYSE Dec/Adv/Vol 1308/1721/712 mln
1:30 pm : The stock market is off its session high. Energy continues to post the session's best performance, currently 2.0% higher.
Oil continues to record new intraday highs. Crude is now trading hands at $122 per barrel, which is a bit below the all-time intraday high of $122.49 per barrel reached earlier in the session.
European markets closed their session in negative ground. The DAX finished 0.4% into the red, while the FTSE closed 0.5% lower. DJ30 +40.46 NASDAQ +13.49 SP500 +8.15 NASDAQ Dec/Adv/Vol 1215/1616/1.24 bln NYSE Dec/Adv/Vol 1243/1805/656.23 mln
1:00 pm : Stocks stall a bit and then surge higher, taking out fresh session highs. There has not been a clear catalyst for the recent gains, but financials stocks (+1.0%) have seen the most buying interest.
Within the S&P 500, 61% of stocks are posting a gain. Anadarko Petroleum (APC 74.31, +6.17) is the best performing name after reporting earnings results that topped estimates. The main laggards are heavyweights AT&T (T 39.36, -0.49) and General Electric (GE 33.01, -0.17).DJ30 +36.88 NASDAQ +15.01 SP500 +8.71 NASDAQ Dec/Adv/Vol 1229/1604/1.14 bln NYSE Dec/Adv/Vol 1211/1814/604 mln
12:30 pm : The major indices extend their advance as the Dow joins the Nasdaq and S&P 500 in positive territory. Six of the ten sectors are now posting a gain, and financials (+1.0%) are leading the charge.
MasterCard (MA 298.62, +7.82) is showing notable strength, as it has managed to hit a lifetime high of $300.77 per share, before retreating a bit. AIG (AIG 48.36, +0.97) and Fannie Mae (FNM 30.10, +1.81) are also aiding in the financial sector's rebound.DJ30 +9.28 NASDAQ +10.43 SP500 +5.95 NASDAQ Dec/Adv/Vol 1225/1586/1.02 bln NYSE Dec/Adv/Vol 1306/1700/541 mln
12:00 pm : Stocks got off to a sluggish start on Tuesday, as large losses at financial companies and record high crude oil prices kept buyers on the sidelines. Traders managed to shrug off the news by midday, sending the stock market back to a slight gain after being down as much as 0.7%.
The housing market turmoil continues to take its toll on Fannie Mae (FNM 29.51, +1.22). The company reported a massive first quarter loss of $2.2 billion, or $2.57 per share, compared with earnings of $0.85 per share in the prior quarter. On average, analysts expected a loss of $0.81 per share, although it is not clear if it is comparable due to one-time items. In an effort to shore up its capital, Fannie is cutting its quarterly dividend by 30% to $0.25 per share and will raise $6 billion in capital. Its shares opened more than 7% lower, but have since rebounded and are now posting a gain of 4.3%.
UBS (UBS 33.73, -0.58) reported a massive 11.5 billion Swiss francs loss (roughly $11.1 billion), but the company had already preannounced this result so it came as no surprise. UBS did provide some new information, including that it is selling $15 billion in mortgage assets to BlackRock (BLK 216.36, +0.96) and plans to eliminate 5,500 jobs by 2009.
Finally, asset management firm Legg Mason (LM 59.12, -3.64) had its first loss as a publicly traded company.
The confluence of these factors sent the financial sector (+0.2%) down as much as 1.9% in the early-going, but as Fannie Mae recovered, so did the financial sector and the broader market.
Separately, crude oil prices are extending yesterday's rally, hitting a new all-time high. Crude is currently trading up 1.8% to $122.18 per barrel, and traded as high as $122.49 barrel. Prices are up 27% in 2008, and are up 97% compared to one-year ago.
The record oil prices have lifted the energy sector (+1.4%) to a leadership position for the second straight day. Materials (+0.7%) are also faring well as commodities gain 1.2%. DJ30 -25.32 NASDAQ +5.12 SP500 +1.73 NASDAQ Dec/Adv/Vol 1377/1401/887 mln NYSE Dec/Adv/Vol 1512/1492/470 mln
11:35 am : The S&P 500 runs into some resistance at the unchanged mark, and is now trading with a slight loss. Financials have seen a large lift, going from a decline of 1.9% to only a loss of 0.4%. Fannie Mae (FNM 28.99, +0.70) has led the recovery effort, rebounding from a loss of 7.3% to a gain of 2.5%.
Small-cap and mid-cap stocks are faring better, with the Russell 2000 and the S&P 400 up 0.1%. While the Russell 2000 trails the large-cap S&P 500's year-to-date loss of 4.3% by about 1%, the S&P 400 is easily outperforming with a loss of 0.9%. The S&P 400 outperformance is partially due to a 66% year-to-date surge in shares of Millennium Pharmaceuticals (24.92, +0.08).DJ30 -51.95 NASDAQ -1.22 SP500 -2.09 NASDAQ Dec/Adv/Vol 1449/1308/771 mln NYSE Dec/Adv/Vol 1630/1319/410 mln
11:00 am : The major indices are trading at their best levels of the session, with the Nasdaq posting a slight gain. The S&P 500 is now clutching the unchanged mark after being down as much as 0.7%.
Tech is outperforming on a relative basis, as it trades with a slight gain. Yahoo! (YHOO 25.34, +0.97) is posting a decent gain of 4.0% as traders speculate there is still a chance Microsoft (MSFT 29.62, +0.54) will acquire the company. Shares of Yahoo fell 15% in yesterday's session after Microsoft announced it had abandoned its $47.5 billion bid.DJ30 -38.03 NASDAQ +0.99 SP500 -0.71 NASDAQ Dec/Adv/Vol 1423/1209/617 mln NYSE Dec/Adv/Vol 1653/1256/328 mln
10:35 am : The major indices are lifted off their session lows in a mostly broad-based move. The materials sector (+0.4%) has joined energy (1.5%) in the green, as gold gains 0.9% to $882.20 per ounce. The two sectors are also the best performing this year, with materials up 4.2% and energy up 4.0%.
The Federal Reserve announced the results of its $75 billion May 5 Term Auction Facility. A total of 71 participants placed bids, with a 1.29 bid-to-cover ratio and a stop-out rate of 2.22%. The stop-out rate is the lowest rate the Fed accepted, and the bid-to-cover ratio is the total value of the bids submitted ($96.618 billion) divided by the amount that was lent out ($75 billion).DJ30 -76.54 NASDAQ -11.48 SP500 -5.78 NASDAQ Dec/Adv/Vol 1553/1004/447 mln NYSE Dec/Adv/Vol 1802/1041/245 mln
09:55 am : The stock market is trading with a loss of more than 0.5%. Nine of the ten economic sectors are in the red, led by weakness in financials. The thrifts & mortgages group (-5.1%) is the worst performing in the sector, with Fannie Mae (FNM 27.07, -1.22) down 4.3%.
Energy (+0.7%) is the sole sector to post a gain, lifted by the spike in crude oil prices. Crude has extended its earlier advance, hitting a fresh all-time high of $121.49 per barrel. Oil is up more than 26% in 2008, and is up 96% from one-year ago.DJ30 -102.35 NASDAQ -17.98 SP500 -9.45 NASDAQ Dec/Adv/Vol 1598/790/205 mln NYSE Dec/Adv/Vol 1914/799/129 mln
09:40 am : The major indices open on a modestly lower note, with financial companies (-1.7%) acting as the main drag in the early-going.
Fannie Mae (FNM) is fueling the selling interest after reporting a larger than expected loss, cutting its dividend by 30% and announcing it is raising $6 billion in capital. UBS (UBS) is not helping things either, after announcing it is going to sell $15 billion in mortgage assets to BlackRock (BLK), and will eliminate 5,500 jobs.
Meanwhile, crude oil is continuing its record run, hitting as high as $129.93 per barrel. Crude oil prices have since eased a tad, trading up 0.5% to $120.55 per barrel.DJ30 -88.67 NASDAQ -11.89 SP500 -8.41
09:18 am : S&P futures vs fair value: -8.6. Nasdaq futures vs fair value: -9.2.
08:59 am : S&P futures vs fair value: -8.3. Nasdaq futures vs fair value: -10.5.
08:29 am : S&P futures vs fair value: -6.2. Nasdaq futures vs fair value: -7.8. Stock futures are off their worst levels, but continue to point to a lower start to the trading day. Microsoft (MSFT) may be in preliminary talks with Time Warner (TWX) related to buying AOL, according to the Times of London. Yesterday, Microsoft withdrew its offer to buy Yahoo! (YHOO), although Yahoo CEO Jerry Yang has said he is willing to continue talks, according to Reuters.
08:05 am : S&P futures vs fair value: -7.7. Nasdaq futures vs fair value: -11.9. Futures point to a lower start, and are currently trading near their session lows. Fannie Mae (FNM) reported a loss of $2.57 per share, which may not be comparable to the consensus estimate that called for a smaller loss of $0.81. The company will be raising $6 billion in new capital through public offerings of common stock, noncumulative mandatory convertible preferred stock, and noncumulative nonconvertible preferred stock. It is also reducing its quarterly stock dividend by ten cents to $0.25 per share. UBS (UBS) will sell $15 billion in mortgage assets to Blackrock (BLK), and will cut 5,500 jobs. Separately, Target has agreed to sell an undivided interest in its credit card receivables to JPMorgan Chase (JPM) for roughly $3.6 billion. Dow component Merck is cutting 1,200 U.S. sales positions. Crude oil has continued its record run, hitting an all-time intraday high of $120.93 per barrel in earlier trade.
06:13 am : S&P futures vs fair value: -1.3. Nasdaq futures vs fair value: -4.0.
06:11 am : FTSE...6199.10...-16.40...-0.3%. DAX...7017.60...-34.48...-0.5%.
06:11 am : Nikkei...Holiday......... Hang Seng...26262.13...+78.18...+0.3%.
http://biz.yahoo.com/mu/update.html
4:15 pm : On Tuesday, stocks got off to a negative start, but eventually ended the day with substantial gains after traders shrugged off record high crude prices, and seemingly bearish headlines out of financials and homebuilders. Specifically, the S&P 500 was down 0.7% shortly after the opening bell, and then steadily climbed higher to finish the day with a 0.8% gain.
Fannie Mae (FNM 30.81, +2.52) said it had a first quarter loss of $2.2 billion, or $2.57 per share, compared with earnings of $0.85 per share in the prior quarter. In an effort to shore up its balance sheet, Fannie is cutting its quarterly dividend by 30% to $0.25 per share and will raise $6 billion in capital. Its shares opened more than 7% lower, but quickly rebounded to finish the day with an advance of 9%. Fannie said that government regulators will be reducing Fannie's capital requirement level to 15% from 20%, which may have aided in the stock's reversal.
UBS (UBS 33.77, -0.54) reported a massive 11.5 billion Swiss francs loss (roughly $11 billion) for its most recent quarter, but the company had preannounced this result so it came as no surprise. UBS did provide some new information, though. UBS is selling $15 billion in mortgage assets to BlackRock (BLK 218.95, +3.55) and plans to eliminate 5,500 jobs by 2009.
Asset management firm Legg Mason (LM 56.30, -6.46) reported its first quarterly loss as a publicly traded company and is raising $1 billion in an equity units offering.
Homebuilder D.R. Horton (DHI 16.85, +0.88) reported a loss of $1.3 billion, or $4.14 per share, compared to its year-ago gain of $51.7 million, or $0.16 per share.
Crude oil remained in focus, with prices hitting an all-time intraday high of $122.73 per barrel before settling at a new all-time closing high of $121.82 per barrel. A Goldman Sachs analyst, who correctly predicted $100 per barrel oil, forecast that prices may spike to $200 a barrel within the next two years on lack of supply, according to reports.
A few months ago the market would have sold off on these headlines, yet it managed to end the day higher at its best level since January -- a testament to improved market sentiment since the Bear Stearns (BSC 10.84, +1.31) bailout in March. The S&P 500 has spiked 13% from its March 17 low, but is still down 3.4% this year.
Eight of the ten economic sectors ended the day in positive territory, with energy stocks posting the largest advance of 2.2%. Oil company Anadarko Petroleum (APC 74.53, +6.39) led the way with a 9.4% spike after it reported better than expected earnings.
Financials also showed strength, rebounding from a 1.9% loss to finish the day with a 0.9% gain. Financials saw buying interest as Fannie Mae's stock recovered.
Defensive sectors were out of favor, with utilities (+0.02%), telecom (-0.1%), health care (-0.04%) and consumer staples (+0.1%) all underperforming on a relative basis.DJ30 +51.29 NASDAQ +19.19 NQ100 +0.8% R2K +0.8% SP400 +0.8% SP500 +10.77 NASDAQ Dec/Adv/Vol 1222/1688/2.14 bln NYSE Dec/Adv/Vol 1168/1934/1.23 bln
3:30 pm : The stock market is trading near its best level of the session, as the energy sector (+2.4%) continues to climb higher. Within the energy sector, the oil & gas exploration group is posting the largest gain of 5.3%, extending its year-to-date advance to 32%.
Looking ahead, market participants will focus on earnings results after the close from Walt Disney (DIS 33.62, +0.33) and Cisco (CSCO 26.33, +0.05). Disney is expected to report earnings of $0.51 per share, and Cisco is expected to announce it earned $0.36 per share.DJ30 +53.65 NASDAQ +19.78 SP500 +11.21 NASDAQ Dec/Adv/Vol 1224/1682/1.76 bln NYSE Dec/Adv/Vol 1231/1859/943 mln
3:00 pm : The stock market extends to a new intraday high. All ten of the economic sectors are in positive territory for the first time this sessioin.
The tech sector (+1.1%) is having the most influential role on the recent push higher. Microsoft (MSFT 29.65, +0.57) and Yahoo! (YHOO 25.96, +1.59) are leading the way.
Crude oil closed at $121.82, which was off its session high of $122.73, but high enough to mark a new all-time closing high.DJ30 +46.81 NASDAQ +19.48 SP500 +10.57 NASDAQ Dec/Adv/Vol 1293/1629/1.61 bln NYSE Dec/Adv/Vol 1287/1796/860 mln
2:30 pm : The stock market dips off its best level, but remains in positive territory. Four sectors are now in negative territory, although losses are only slight.
Airline stocks did not participate in the stock market's afternoon recovery. The Amex Airline Index is down 3.8%, and has fallen 34% in 2008.DJ30 +20.51 NASDAQ +10.97 SP500 +10.97 NASDAQ Dec/Adv/Vol 1376/1509/1.46 bln NYSE Dec/Adv/Vol 1426/1643/779 mln
1:55 pm : The stock market is holding onto a decent-sized gain as it trades slightly below its recently reached session high. Only telecom (-0.2%) remains in the red, although health care and consumer staples are basically unchanged.
Market breadth has turned positive, with advancers outpacing decliners by 4-to-3 on the NYSE and by 6-to-5 on the Nasdaq.DJ30 +33.38 NASDAQ +14.13 SP500 +8.13 NASDAQ Dec/Adv/Vol 1279/1574/1.34 bln NYSE Dec/Adv/Vol 1308/1721/712 mln
1:30 pm : The stock market is off its session high. Energy continues to post the session's best performance, currently 2.0% higher.
Oil continues to record new intraday highs. Crude is now trading hands at $122 per barrel, which is a bit below the all-time intraday high of $122.49 per barrel reached earlier in the session.
European markets closed their session in negative ground. The DAX finished 0.4% into the red, while the FTSE closed 0.5% lower. DJ30 +40.46 NASDAQ +13.49 SP500 +8.15 NASDAQ Dec/Adv/Vol 1215/1616/1.24 bln NYSE Dec/Adv/Vol 1243/1805/656.23 mln
1:00 pm : Stocks stall a bit and then surge higher, taking out fresh session highs. There has not been a clear catalyst for the recent gains, but financials stocks (+1.0%) have seen the most buying interest.
Within the S&P 500, 61% of stocks are posting a gain. Anadarko Petroleum (APC 74.31, +6.17) is the best performing name after reporting earnings results that topped estimates. The main laggards are heavyweights AT&T (T 39.36, -0.49) and General Electric (GE 33.01, -0.17).DJ30 +36.88 NASDAQ +15.01 SP500 +8.71 NASDAQ Dec/Adv/Vol 1229/1604/1.14 bln NYSE Dec/Adv/Vol 1211/1814/604 mln
12:30 pm : The major indices extend their advance as the Dow joins the Nasdaq and S&P 500 in positive territory. Six of the ten sectors are now posting a gain, and financials (+1.0%) are leading the charge.
MasterCard (MA 298.62, +7.82) is showing notable strength, as it has managed to hit a lifetime high of $300.77 per share, before retreating a bit. AIG (AIG 48.36, +0.97) and Fannie Mae (FNM 30.10, +1.81) are also aiding in the financial sector's rebound.DJ30 +9.28 NASDAQ +10.43 SP500 +5.95 NASDAQ Dec/Adv/Vol 1225/1586/1.02 bln NYSE Dec/Adv/Vol 1306/1700/541 mln
12:00 pm : Stocks got off to a sluggish start on Tuesday, as large losses at financial companies and record high crude oil prices kept buyers on the sidelines. Traders managed to shrug off the news by midday, sending the stock market back to a slight gain after being down as much as 0.7%.
The housing market turmoil continues to take its toll on Fannie Mae (FNM 29.51, +1.22). The company reported a massive first quarter loss of $2.2 billion, or $2.57 per share, compared with earnings of $0.85 per share in the prior quarter. On average, analysts expected a loss of $0.81 per share, although it is not clear if it is comparable due to one-time items. In an effort to shore up its capital, Fannie is cutting its quarterly dividend by 30% to $0.25 per share and will raise $6 billion in capital. Its shares opened more than 7% lower, but have since rebounded and are now posting a gain of 4.3%.
UBS (UBS 33.73, -0.58) reported a massive 11.5 billion Swiss francs loss (roughly $11.1 billion), but the company had already preannounced this result so it came as no surprise. UBS did provide some new information, including that it is selling $15 billion in mortgage assets to BlackRock (BLK 216.36, +0.96) and plans to eliminate 5,500 jobs by 2009.
Finally, asset management firm Legg Mason (LM 59.12, -3.64) had its first loss as a publicly traded company.
The confluence of these factors sent the financial sector (+0.2%) down as much as 1.9% in the early-going, but as Fannie Mae recovered, so did the financial sector and the broader market.
Separately, crude oil prices are extending yesterday's rally, hitting a new all-time high. Crude is currently trading up 1.8% to $122.18 per barrel, and traded as high as $122.49 barrel. Prices are up 27% in 2008, and are up 97% compared to one-year ago.
The record oil prices have lifted the energy sector (+1.4%) to a leadership position for the second straight day. Materials (+0.7%) are also faring well as commodities gain 1.2%. DJ30 -25.32 NASDAQ +5.12 SP500 +1.73 NASDAQ Dec/Adv/Vol 1377/1401/887 mln NYSE Dec/Adv/Vol 1512/1492/470 mln
11:35 am : The S&P 500 runs into some resistance at the unchanged mark, and is now trading with a slight loss. Financials have seen a large lift, going from a decline of 1.9% to only a loss of 0.4%. Fannie Mae (FNM 28.99, +0.70) has led the recovery effort, rebounding from a loss of 7.3% to a gain of 2.5%.
Small-cap and mid-cap stocks are faring better, with the Russell 2000 and the S&P 400 up 0.1%. While the Russell 2000 trails the large-cap S&P 500's year-to-date loss of 4.3% by about 1%, the S&P 400 is easily outperforming with a loss of 0.9%. The S&P 400 outperformance is partially due to a 66% year-to-date surge in shares of Millennium Pharmaceuticals (24.92, +0.08).DJ30 -51.95 NASDAQ -1.22 SP500 -2.09 NASDAQ Dec/Adv/Vol 1449/1308/771 mln NYSE Dec/Adv/Vol 1630/1319/410 mln
11:00 am : The major indices are trading at their best levels of the session, with the Nasdaq posting a slight gain. The S&P 500 is now clutching the unchanged mark after being down as much as 0.7%.
Tech is outperforming on a relative basis, as it trades with a slight gain. Yahoo! (YHOO 25.34, +0.97) is posting a decent gain of 4.0% as traders speculate there is still a chance Microsoft (MSFT 29.62, +0.54) will acquire the company. Shares of Yahoo fell 15% in yesterday's session after Microsoft announced it had abandoned its $47.5 billion bid.DJ30 -38.03 NASDAQ +0.99 SP500 -0.71 NASDAQ Dec/Adv/Vol 1423/1209/617 mln NYSE Dec/Adv/Vol 1653/1256/328 mln
10:35 am : The major indices are lifted off their session lows in a mostly broad-based move. The materials sector (+0.4%) has joined energy (1.5%) in the green, as gold gains 0.9% to $882.20 per ounce. The two sectors are also the best performing this year, with materials up 4.2% and energy up 4.0%.
The Federal Reserve announced the results of its $75 billion May 5 Term Auction Facility. A total of 71 participants placed bids, with a 1.29 bid-to-cover ratio and a stop-out rate of 2.22%. The stop-out rate is the lowest rate the Fed accepted, and the bid-to-cover ratio is the total value of the bids submitted ($96.618 billion) divided by the amount that was lent out ($75 billion).DJ30 -76.54 NASDAQ -11.48 SP500 -5.78 NASDAQ Dec/Adv/Vol 1553/1004/447 mln NYSE Dec/Adv/Vol 1802/1041/245 mln
09:55 am : The stock market is trading with a loss of more than 0.5%. Nine of the ten economic sectors are in the red, led by weakness in financials. The thrifts & mortgages group (-5.1%) is the worst performing in the sector, with Fannie Mae (FNM 27.07, -1.22) down 4.3%.
Energy (+0.7%) is the sole sector to post a gain, lifted by the spike in crude oil prices. Crude has extended its earlier advance, hitting a fresh all-time high of $121.49 per barrel. Oil is up more than 26% in 2008, and is up 96% from one-year ago.DJ30 -102.35 NASDAQ -17.98 SP500 -9.45 NASDAQ Dec/Adv/Vol 1598/790/205 mln NYSE Dec/Adv/Vol 1914/799/129 mln
09:40 am : The major indices open on a modestly lower note, with financial companies (-1.7%) acting as the main drag in the early-going.
Fannie Mae (FNM) is fueling the selling interest after reporting a larger than expected loss, cutting its dividend by 30% and announcing it is raising $6 billion in capital. UBS (UBS) is not helping things either, after announcing it is going to sell $15 billion in mortgage assets to BlackRock (BLK), and will eliminate 5,500 jobs.
Meanwhile, crude oil is continuing its record run, hitting as high as $129.93 per barrel. Crude oil prices have since eased a tad, trading up 0.5% to $120.55 per barrel.DJ30 -88.67 NASDAQ -11.89 SP500 -8.41
09:18 am : S&P futures vs fair value: -8.6. Nasdaq futures vs fair value: -9.2.
08:59 am : S&P futures vs fair value: -8.3. Nasdaq futures vs fair value: -10.5.
08:29 am : S&P futures vs fair value: -6.2. Nasdaq futures vs fair value: -7.8. Stock futures are off their worst levels, but continue to point to a lower start to the trading day. Microsoft (MSFT) may be in preliminary talks with Time Warner (TWX) related to buying AOL, according to the Times of London. Yesterday, Microsoft withdrew its offer to buy Yahoo! (YHOO), although Yahoo CEO Jerry Yang has said he is willing to continue talks, according to Reuters.
08:05 am : S&P futures vs fair value: -7.7. Nasdaq futures vs fair value: -11.9. Futures point to a lower start, and are currently trading near their session lows. Fannie Mae (FNM) reported a loss of $2.57 per share, which may not be comparable to the consensus estimate that called for a smaller loss of $0.81. The company will be raising $6 billion in new capital through public offerings of common stock, noncumulative mandatory convertible preferred stock, and noncumulative nonconvertible preferred stock. It is also reducing its quarterly stock dividend by ten cents to $0.25 per share. UBS (UBS) will sell $15 billion in mortgage assets to Blackrock (BLK), and will cut 5,500 jobs. Separately, Target has agreed to sell an undivided interest in its credit card receivables to JPMorgan Chase (JPM) for roughly $3.6 billion. Dow component Merck is cutting 1,200 U.S. sales positions. Crude oil has continued its record run, hitting an all-time intraday high of $120.93 per barrel in earlier trade.
06:13 am : S&P futures vs fair value: -1.3. Nasdaq futures vs fair value: -4.0.
06:11 am : FTSE...6199.10...-16.40...-0.3%. DAX...7017.60...-34.48...-0.5%.
06:11 am : Nikkei...Holiday......... Hang Seng...26262.13...+78.18...+0.3%.
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