AI
Wednesday, May 07, 2008 8:59:35 PM
Market Update 080507
http://biz.yahoo.com/mu/update.html
4:30 pm : After descending gradually during afternoon trading, the stock market made a sudden drop to fall below the 1400-level. Buying interest returned momentarily in the final leg of trading, but proved unsustainable. All three of the major indices finished at their session low.
Pessimism prevailed despite a batch of better-than-expected earnings results from several marquee names, all of which are components of Briefing.com's Active Portfolio. Tech bellwether Cisco (CSCO 25.78, -0.55) announced after Tuesday's session earnings of $0.38 per share for its most recent quarter, which exceeded the consensus earnings per share estimate by two cents. Despite seeing softness in the U.S., the company issued in-line guidance for its current quarter.
Dow component Walt Disney (DIS 34.70, +0.97) generated $0.58 per share for its second fiscal quarter, surpassing the average analyst estimate of $0.51 per share.
Transocean (RIG 157.40, -0.45) announced this morning strong earnings of $3.80 per share. Analysts, on average, were expecting profits of $3.33 per share. Transocean saw significant growth as a result of its acquisition of GlobalSantaFe and higher dayrates, stemming from demand for crude oil.
Notably, crude oil prices continue to set new records. Oil closed $1.74 higher on the Nymex, finishing the session at $123.58 per barrel. That marks a new record closing high for crude prices. Oil also posted a new record intraday high of $123.80 per barrel.
On a related topic, the Department of Energy announced a larger than expected increase in oil reserves. Stockpiles for the week ending May 3 increased by 5.7 million barrels, which is more than the 1.6 million barrel increase that economists came to expect.
In other economic news, first quarter nonfarm productivity rose at a 2.2% annual rate, which was more than the consensus estimate of 1.5%. Unit labor costs, an inflation gauge, registered a 2.2% rate of increase. That was better than the expected 2.6% rate of growth.
In a separate report, March U.S. pending home sales fell 1.0% month-over-month on a seasonally adjusted annual rate, according to the National Association of Realtors. The decline was in-line with expectations. February sales were revised lower to a decrease of 2.8% from the previous reading, which showed a 1.9% slide. This leaves the year-over-year decline at 20.1%.
Sprint Nextel (S 9.16, -0.03) and cable company Clearwire (CLWR 16.22, -0.24) are entering a definitive agreement to combine their wireless broadband businesses, to be named Clearwire. Several companies will be investing a total of $3.2 billion into the new entity, including Intel (INTC 23.17, -0.41), Time Warner Cable (TWC 29.35, -0.06), and Google (GOOG 579.00, -7.36).
All ten of the major economic sectors closed with losses. Financials (-3.7%) fared the worst. Large-cap names Citigroup (C 24.48, -1.39), JPMorgan Chase (JPM 46.57, -1.63), and Bank of America (BAC 38.00, -1.24) all weighed on the sector.DJ30 -206.48 NASDAQ -44.82 SP500 -25.69 NASDAQ Dec/Adv/Vol 2065/785/2.28 bln NYSE Dec/Adv/Vol 2243/876/1.28 bln
3:30 pm : The stock market is making another move lower as participants enter the final leg of the session. The stock market opened near the neutral line, but is now down 1.8% for the session.
The financial sector has seen selling intensify, down 3.7% this session.
Overall, sentiment is widely negative as large-cap stocks and small-cap stocks are out of favor. The S&P 100 (-1.9%) and the Russell 2000 (-1.8%) are both sporting substantial losses.DJ30 -215.84 NASDAQ -47.47 SP500 -26.57 NASDAQ Dec/Adv/Vol 2035/804/1.87 bln NYSE Dec/Adv/Vol 2216/885/950.82 mln
3:00 pm : The major indices are trading a bit off their worst levels of the session, following a precipitous drop. Eight of the ten major economic sectors are showing losses in excess of 1.0%.
The S&P 500 is now trading below the 1400-level.
Crude oil finished its session on the Nymex $1.74 higher at $123.58 per barrel. That marks a new record closing high for crude prices. Earlier in the session, oil hit a new record intraday high of $123.80 per barrel.DJ30 -160.15 NASDAQ -34.73 SP500 -19.45 NASDAQ Dec/Adv/Vol 1939/888/1.68 bln NYSE Dec/Adv/Vol 2075/994/836.25 mln
2:30 pm : The stock market has made a sudden spike downward after gradually descending in afternoon trading.
The Dow Jones, Nasdaq, and S&P 500 are all at their respective session lows. Each is down more than 1.0%.
The financial sector (-2.4%) has been trading noticeably lower. Large-cap names Citigroup (C 25.22, -0.65), JPMorgan Chase (JPM 46.95, -1.25), and Bank of America (BAC 46.95, -1.25) are weighing on the sector.DJ30 -138.66 NASDAQ -31.73 SP500 -17.06 NASDAQ Dec/Adv/Vol 1902/915/1.50 bln NYSE Dec/Adv/Vol 2013/1059/741.64 mln
2:00 pm : The stock market is under selling pressure, as it falls to fresh session lows. The decline has been broad-based, with the exception of the energy sector (-0.1%), which is trading near its best level of the session. Crude oil has climbed even higher, hitting $123.79 per barrel.
Within the S&P 500, 73% of stocks are in the red. The main laggards are financial stocks, including AIG (AIG 46.80, -1.60), Wells Fargo (WFC 30.16, -0.80) and JPMorgan Chase (JPM 47.15, -1.05). IBM (IBM 124.25, +1.93) and Disney (DIS 34.76, +1.03) are providing leadership.DJ30 -88.50 NASDAQ -24.79 SP500 -11.71 NASDAQ Dec/Adv/Vol 1791/982/1.36 bln NYSE Dec/Adv/Vol 1877/1164/664 mln
1:30 pm : The major indices fall to fresh session lows as crude oil spikes 1.4% to a new all-time high of $123.56 per barrel. The gains in crude come in the face of a higher-than-expected increase in inventory stockpiles, which is normally bearish for crude prices. Crude prices and the S&P 500 have traded inversely throughout the session.
Nine of the ten economic sectors are now in the red, with only materials holding on to a slight 0.2% gain. Financials (-1.8%) are posting the largest decline, and is the only sector down more than 1%.DJ30 -78.57 NASDAQ -15.82 SP500 -9.72 NASDAQ Dec/Adv/Vol 1732/1023/1.23 bln NYSE Dec/Adv/Vol 1803/1208/610 mln
1:00 pm : The major indices continue to trade in a tight range near session lows. Four of the ten sectors are now in positive territory, although gains are modest with materials posting the largest advance of 0.5%.
Market breadth is slightly negative. Decliners outpace advancers by 6-to-5 on the NYSE, and by 4-to-3 on the Nasdaq.
European markets had a decent session. Germany's Dax posted a 0.8% gain, and London's FTSE rose 0.7%.DJ30 -52.51 NASDAQ -5.71 SP500 -6.40 NASDAQ Dec/Adv/Vol 1564/1163/1.11 bln NYSE Dec/Adv/Vol 1640/1370/550 mln
12:35 pm : Stocks have headed sideways for the last hour. Weakness in financials (-1.4%) -- the most heavily weighted sector -- is acting as the main drag on the market. Within the sector, 20 of the 22 industry groups are trending lower. The thrifts & mortgages group is posting the largest decline of 3.0%.DJ30 -64.08 NASDAQ -9.05 SP500 -7.48 NASDAQ Dec/Adv/Vol 1584/1137/1.03 bln NYSE Dec/Adv/Vol 1648/1353/510 mln
12:00 pm : The major indices have been stuck in negative territory for the majority of Wednesday's session. Buyers have not showed much interest even though the majority of earnings reports were better than expected, and a major deal in the wireless telecom industry was announced. At midday, the stock market is posting a modest loss near its worst level of the session.
Tech bellwether Cisco (CSCO 26.27, -0.06) announced better than expected earnings after Tuesday's close. The company earned $0.38 per share in its latest quarter, topping expectations by two cents. Cisco also issued in-line guidance for its upcoming quarter, although it did acknowledge U.S. markets had weakened.
Dow component Walt Disney (DIS 34.93, +1.20) reported earnings of $0.58 per share, easily beating the average analyst estimate of $0.51. The company benefited from broad-based growth, including a gain of 60% in its studio segment and growth of 14% in cable.
Other notable names that topped expectations include Allergan (AGN 52.26, -2.06), NYSE Euronext (NYX 75.16, +2.21), DirecTV (DTV 26.71, +0.91), Devon Energy (DVN 116.82, -3.51) and Transocean (RIG 157.81, -0.04).
In deal news, Sprint Nextel (S 9.16, -0.03) and cable company Clearwire (CLWR 16.48, +0.02) have entered into a definitive agreement to combine their wireless broadband businesses, to be named Clearwire. Several companies will be investing a total of $3.2 billion into the new entity, including Intel (INTC 23.50, -0.08) and Google (GOOG 594.86, +8.50).
On the economic front, first quarter nonfarm productivity rose 2.2%, which was more than the consensus estimate of 1.5%. Unit labor costs, an inflation measure, came in at 2.2% which was better than the expected reading of 2.6%.
In a separate report, March U.S. pending home sales fell 1.0% month-over-month on a seasonally adjusted annual rate, according to the National Association of Realtors. The decline was in-line with expectations. February sales were revised lower to a decrease of 2.8% from the previous reading that showed a slide of 1.9%. This leaves the year-over-year decline at 20.1%.
Nine of the ten economic sectors are trading in negative territory, with financials (-1.3%) acting as the main drag. Consumer discretionary is outperforming on a relative basis with a modest gain of 0.1%.
In commodity trading, crude traded in a volatile manner following the Department of Energy's weekly energy report. Crude quickly fell more than 1% after the data showed a larger than expected increase in stockpiles. Prices have since recovered , as crude is now trading with a loss of only 0.1% at $121.73 per barrel.
Meanwhile, the dollar is showing some strength with a 0.72% gain against a basket of world currencies. DJ30 -70.18 NASDAQ -7.58 SP500 -7.47 NASDAQ Dec/Adv/Vol 1555/1131/905 mln NYSE Dec/Adv/Vol 1668/1315/757 mln
11:30 am : The major indices are stuck in a tight trading range this session. At its session peak the S&P 500 was up 0.1%, and at its trough it was down 0.4%.
A quick drop in financial stocks (-1.1%) is acting as a major drag on the stock market. Wells Fargo (30.57, -0.39), JPMorgan Chase (JPM 47.60, -0.60) and Bank of America (BAC 38.76, -0.48) are showing weakness. There are some bright spots, as NYSE Euronext (NYX 75.49, +2.54) is up 3.5% after reported earnings of $0.91, which was $0.08 better than expectations.DJ30 -55.93 NASDAQ -3.12 SP500 -5.73 NASDAQ Dec/Adv/Vol 1396/1254/783 mln NYSE Dec/Adv/Vol 1533/1420/394 mln
11:00 am : The S&P 500 briefly traded in positive territory, but has since retreated a bit. The Nasdaq continues to sport a slight gain.
Crude oil traded in a volatile manner following the larger-than-expected increase in stockpiles. Prices quickly fell to a 1.1% decline, before rebounding back into positive territory. Crude is currently up 0.2% to $122.06 per barrel. Meanwhile, the dollar is posting a hefty gain of 0.86%, as the euro falls 0.87% and the pound slips 1.07%.DJ30 -32.57 NASDAQ +3.63 SP500 -4.55 NASDAQ Dec/Adv/Vol 1284/1315/654 mln NYSE Dec/Adv/Vol 1472/1417/322 mln
10:35 am : According to the Department of Energy, crude stockpiles for the week ended May 3 rose by 5.7 million barrels. The consensus forecast called for an inventory increase of 1.6 million barrels. Crude was trading up 0.2% to $122.15 per barrel just prior to the release. Yesterday, oil climbed to an all-time intraday high of $122.73 per barrel.
The major indices continue to trade near the unchanged mark, with the Nasdaq posting a slight gain, while the S&P and Dow post slight losses.
The consumer discretionary sector is up 0.8% this session, sending it into positive territory for the year. Walt Disney (DIS 34.87, +1.14) and DirecTV (DTV 26.84, +1.04) are providing leadership, after both companies reported quarterly earnings that topped expectations.DJ30 -11.48 NASDAQ +4.51 SP500 -1.22 NASDAQ Dec/Adv/Vol 1251/1229/452 mln NYSE Dec/Adv/Vol 1427/1397/519 mln
10:05 am : Just hitting the wires, March U.S. pending home sales fell 1.0% month-over-month on a seasonally adjusted annual rate, according to the National Association of Realtors. The decline was in-line with expectations. February sales were revised lower to a decrease of 2.8% from the previous reading that showed a slide of 1.9%. This leaves the year-over-year decline at 20.1%.
The stock market has a slightly negative reaction to the report, with only two of the ten economic sectors in positive territory. The tech sector (+0.2%) is now in the green, as traders warm up to Cisco's (CSCO 26.43, +0.10) better-than-expected earnings report. Consumer discretionary is an early leader, with a gain of 0.4%. The materials sector (-0.5%) is the main drag, as commodites fall 0.5%.DJ30 -30.45 NASDAQ -1.09 SP500 -3.84 NASDAQ Dec/Adv/Vol 1061/1258/241 mln NYSE Dec/Adv/Vol 1316/1379/125 mln
09:40 am : The stock market opens on a lackluster note, even though the majority of this session's news has been positive.
Cisco (CSCO) reported better-than-expected earnings for its fiscal third quarter and issued in-line earnings guidance for its fiscal fourth quarter. Dow component Walt Disney (DIS) had a strong earnings report, easily topping forecasts.
In deal news, Sprint Nextel (S) and Clearwire (CLWR) announced they have entered into a definitive agreement to combine their wireless broadband businesses to form a new wireless communications company, named Clearwire.
In economic news, first quarter nonfarm productivity rose 2.2%, more than the consensus estimate of 1.5%. Unit labor costs came in at 2.2%, which was short of the expected reading of 2.6%. Futures gained a few points on this release.DJ30 -31.20 NASDAQ -1.09 SP500 -1.94 NASDAQ Dec/Adv/Vol 1065/1083/92 mln NYSE Dec/Adv/Vol 1120/1221/55 mln
09:16 am : S&P futures vs fair value: +0.2. Nasdaq futures vs fair value: -1.8. Futures indicate a lackluster start to Wednesday's session. The dollar has bounced higher in early trade, gaining 0.66% against a basket of leading world currencies. The euro has lost 0.84% against the dollar, and the pound is down 1.03%.
08:57 am : S&P futures vs fair value: +1.7. Nasdaq futures vs fair value: +1.8. S&P 500 and Nasdaq futures now point to a slightly higher start, as traders were encouraged by the better than expected productivity reading.
08:31 am : S&P futures vs fair value: flat. Nasdaq futures vs fair value: -4.5. S&P futures versus fair value climb to the unchanged mark on a better than expected economic report. Just reported, first quarter nonfarm productivity rose 2.2%, more than the consensus estimate of 1.5%. Unit labor costs came in at 2.2%, which was short of the expected reading of 2.6%.
08:00 am : S&P futures vs fair value: -2.0. Nasdaq futures vs fair value: -6.0. Futures indicate a slightly lower start. Walt Disney (DIS) reported earnings of $0.58 per share, topping expectations by seven cents. Cisco Systems (CSCO) beat its earnings estimate by two cents, and guided its fiscal fourth quarter in-line with expectations, but said the U.S. market has softened. Sprint Nextel (S) and Clearwire (CLWR) announced they have entered into a a definitive agreement to combine their wireless broadband businesses to form a new wireless communications company, named Clearwire. Crude oil, which is holding near the $122 per barrel mark, will go on the move with the release of the governments weekly energy report (10:30 ET). On the economic front, first quarter nonfarm productivity is set for release at 8:30 ET and March pending home sales will be reported at 10:00 ET.
06:13 am : S&P futures vs fair value: flat. Nasdaq futures vs fair value: -0.3.
06:12 am : FTSE...6261.70...+46.50...+0.8%. DAX...7080.83...+63.73...+0.9%.
06:12 am : Nikkei...14102.48...+53.22...+0.4%. Hang Seng...25610.21...-651.92...-2.5%.
http://biz.yahoo.com/mu/update.html
4:30 pm : After descending gradually during afternoon trading, the stock market made a sudden drop to fall below the 1400-level. Buying interest returned momentarily in the final leg of trading, but proved unsustainable. All three of the major indices finished at their session low.
Pessimism prevailed despite a batch of better-than-expected earnings results from several marquee names, all of which are components of Briefing.com's Active Portfolio. Tech bellwether Cisco (CSCO 25.78, -0.55) announced after Tuesday's session earnings of $0.38 per share for its most recent quarter, which exceeded the consensus earnings per share estimate by two cents. Despite seeing softness in the U.S., the company issued in-line guidance for its current quarter.
Dow component Walt Disney (DIS 34.70, +0.97) generated $0.58 per share for its second fiscal quarter, surpassing the average analyst estimate of $0.51 per share.
Transocean (RIG 157.40, -0.45) announced this morning strong earnings of $3.80 per share. Analysts, on average, were expecting profits of $3.33 per share. Transocean saw significant growth as a result of its acquisition of GlobalSantaFe and higher dayrates, stemming from demand for crude oil.
Notably, crude oil prices continue to set new records. Oil closed $1.74 higher on the Nymex, finishing the session at $123.58 per barrel. That marks a new record closing high for crude prices. Oil also posted a new record intraday high of $123.80 per barrel.
On a related topic, the Department of Energy announced a larger than expected increase in oil reserves. Stockpiles for the week ending May 3 increased by 5.7 million barrels, which is more than the 1.6 million barrel increase that economists came to expect.
In other economic news, first quarter nonfarm productivity rose at a 2.2% annual rate, which was more than the consensus estimate of 1.5%. Unit labor costs, an inflation gauge, registered a 2.2% rate of increase. That was better than the expected 2.6% rate of growth.
In a separate report, March U.S. pending home sales fell 1.0% month-over-month on a seasonally adjusted annual rate, according to the National Association of Realtors. The decline was in-line with expectations. February sales were revised lower to a decrease of 2.8% from the previous reading, which showed a 1.9% slide. This leaves the year-over-year decline at 20.1%.
Sprint Nextel (S 9.16, -0.03) and cable company Clearwire (CLWR 16.22, -0.24) are entering a definitive agreement to combine their wireless broadband businesses, to be named Clearwire. Several companies will be investing a total of $3.2 billion into the new entity, including Intel (INTC 23.17, -0.41), Time Warner Cable (TWC 29.35, -0.06), and Google (GOOG 579.00, -7.36).
All ten of the major economic sectors closed with losses. Financials (-3.7%) fared the worst. Large-cap names Citigroup (C 24.48, -1.39), JPMorgan Chase (JPM 46.57, -1.63), and Bank of America (BAC 38.00, -1.24) all weighed on the sector.DJ30 -206.48 NASDAQ -44.82 SP500 -25.69 NASDAQ Dec/Adv/Vol 2065/785/2.28 bln NYSE Dec/Adv/Vol 2243/876/1.28 bln
3:30 pm : The stock market is making another move lower as participants enter the final leg of the session. The stock market opened near the neutral line, but is now down 1.8% for the session.
The financial sector has seen selling intensify, down 3.7% this session.
Overall, sentiment is widely negative as large-cap stocks and small-cap stocks are out of favor. The S&P 100 (-1.9%) and the Russell 2000 (-1.8%) are both sporting substantial losses.DJ30 -215.84 NASDAQ -47.47 SP500 -26.57 NASDAQ Dec/Adv/Vol 2035/804/1.87 bln NYSE Dec/Adv/Vol 2216/885/950.82 mln
3:00 pm : The major indices are trading a bit off their worst levels of the session, following a precipitous drop. Eight of the ten major economic sectors are showing losses in excess of 1.0%.
The S&P 500 is now trading below the 1400-level.
Crude oil finished its session on the Nymex $1.74 higher at $123.58 per barrel. That marks a new record closing high for crude prices. Earlier in the session, oil hit a new record intraday high of $123.80 per barrel.DJ30 -160.15 NASDAQ -34.73 SP500 -19.45 NASDAQ Dec/Adv/Vol 1939/888/1.68 bln NYSE Dec/Adv/Vol 2075/994/836.25 mln
2:30 pm : The stock market has made a sudden spike downward after gradually descending in afternoon trading.
The Dow Jones, Nasdaq, and S&P 500 are all at their respective session lows. Each is down more than 1.0%.
The financial sector (-2.4%) has been trading noticeably lower. Large-cap names Citigroup (C 25.22, -0.65), JPMorgan Chase (JPM 46.95, -1.25), and Bank of America (BAC 46.95, -1.25) are weighing on the sector.DJ30 -138.66 NASDAQ -31.73 SP500 -17.06 NASDAQ Dec/Adv/Vol 1902/915/1.50 bln NYSE Dec/Adv/Vol 2013/1059/741.64 mln
2:00 pm : The stock market is under selling pressure, as it falls to fresh session lows. The decline has been broad-based, with the exception of the energy sector (-0.1%), which is trading near its best level of the session. Crude oil has climbed even higher, hitting $123.79 per barrel.
Within the S&P 500, 73% of stocks are in the red. The main laggards are financial stocks, including AIG (AIG 46.80, -1.60), Wells Fargo (WFC 30.16, -0.80) and JPMorgan Chase (JPM 47.15, -1.05). IBM (IBM 124.25, +1.93) and Disney (DIS 34.76, +1.03) are providing leadership.DJ30 -88.50 NASDAQ -24.79 SP500 -11.71 NASDAQ Dec/Adv/Vol 1791/982/1.36 bln NYSE Dec/Adv/Vol 1877/1164/664 mln
1:30 pm : The major indices fall to fresh session lows as crude oil spikes 1.4% to a new all-time high of $123.56 per barrel. The gains in crude come in the face of a higher-than-expected increase in inventory stockpiles, which is normally bearish for crude prices. Crude prices and the S&P 500 have traded inversely throughout the session.
Nine of the ten economic sectors are now in the red, with only materials holding on to a slight 0.2% gain. Financials (-1.8%) are posting the largest decline, and is the only sector down more than 1%.DJ30 -78.57 NASDAQ -15.82 SP500 -9.72 NASDAQ Dec/Adv/Vol 1732/1023/1.23 bln NYSE Dec/Adv/Vol 1803/1208/610 mln
1:00 pm : The major indices continue to trade in a tight range near session lows. Four of the ten sectors are now in positive territory, although gains are modest with materials posting the largest advance of 0.5%.
Market breadth is slightly negative. Decliners outpace advancers by 6-to-5 on the NYSE, and by 4-to-3 on the Nasdaq.
European markets had a decent session. Germany's Dax posted a 0.8% gain, and London's FTSE rose 0.7%.DJ30 -52.51 NASDAQ -5.71 SP500 -6.40 NASDAQ Dec/Adv/Vol 1564/1163/1.11 bln NYSE Dec/Adv/Vol 1640/1370/550 mln
12:35 pm : Stocks have headed sideways for the last hour. Weakness in financials (-1.4%) -- the most heavily weighted sector -- is acting as the main drag on the market. Within the sector, 20 of the 22 industry groups are trending lower. The thrifts & mortgages group is posting the largest decline of 3.0%.DJ30 -64.08 NASDAQ -9.05 SP500 -7.48 NASDAQ Dec/Adv/Vol 1584/1137/1.03 bln NYSE Dec/Adv/Vol 1648/1353/510 mln
12:00 pm : The major indices have been stuck in negative territory for the majority of Wednesday's session. Buyers have not showed much interest even though the majority of earnings reports were better than expected, and a major deal in the wireless telecom industry was announced. At midday, the stock market is posting a modest loss near its worst level of the session.
Tech bellwether Cisco (CSCO 26.27, -0.06) announced better than expected earnings after Tuesday's close. The company earned $0.38 per share in its latest quarter, topping expectations by two cents. Cisco also issued in-line guidance for its upcoming quarter, although it did acknowledge U.S. markets had weakened.
Dow component Walt Disney (DIS 34.93, +1.20) reported earnings of $0.58 per share, easily beating the average analyst estimate of $0.51. The company benefited from broad-based growth, including a gain of 60% in its studio segment and growth of 14% in cable.
Other notable names that topped expectations include Allergan (AGN 52.26, -2.06), NYSE Euronext (NYX 75.16, +2.21), DirecTV (DTV 26.71, +0.91), Devon Energy (DVN 116.82, -3.51) and Transocean (RIG 157.81, -0.04).
In deal news, Sprint Nextel (S 9.16, -0.03) and cable company Clearwire (CLWR 16.48, +0.02) have entered into a definitive agreement to combine their wireless broadband businesses, to be named Clearwire. Several companies will be investing a total of $3.2 billion into the new entity, including Intel (INTC 23.50, -0.08) and Google (GOOG 594.86, +8.50).
On the economic front, first quarter nonfarm productivity rose 2.2%, which was more than the consensus estimate of 1.5%. Unit labor costs, an inflation measure, came in at 2.2% which was better than the expected reading of 2.6%.
In a separate report, March U.S. pending home sales fell 1.0% month-over-month on a seasonally adjusted annual rate, according to the National Association of Realtors. The decline was in-line with expectations. February sales were revised lower to a decrease of 2.8% from the previous reading that showed a slide of 1.9%. This leaves the year-over-year decline at 20.1%.
Nine of the ten economic sectors are trading in negative territory, with financials (-1.3%) acting as the main drag. Consumer discretionary is outperforming on a relative basis with a modest gain of 0.1%.
In commodity trading, crude traded in a volatile manner following the Department of Energy's weekly energy report. Crude quickly fell more than 1% after the data showed a larger than expected increase in stockpiles. Prices have since recovered , as crude is now trading with a loss of only 0.1% at $121.73 per barrel.
Meanwhile, the dollar is showing some strength with a 0.72% gain against a basket of world currencies. DJ30 -70.18 NASDAQ -7.58 SP500 -7.47 NASDAQ Dec/Adv/Vol 1555/1131/905 mln NYSE Dec/Adv/Vol 1668/1315/757 mln
11:30 am : The major indices are stuck in a tight trading range this session. At its session peak the S&P 500 was up 0.1%, and at its trough it was down 0.4%.
A quick drop in financial stocks (-1.1%) is acting as a major drag on the stock market. Wells Fargo (30.57, -0.39), JPMorgan Chase (JPM 47.60, -0.60) and Bank of America (BAC 38.76, -0.48) are showing weakness. There are some bright spots, as NYSE Euronext (NYX 75.49, +2.54) is up 3.5% after reported earnings of $0.91, which was $0.08 better than expectations.DJ30 -55.93 NASDAQ -3.12 SP500 -5.73 NASDAQ Dec/Adv/Vol 1396/1254/783 mln NYSE Dec/Adv/Vol 1533/1420/394 mln
11:00 am : The S&P 500 briefly traded in positive territory, but has since retreated a bit. The Nasdaq continues to sport a slight gain.
Crude oil traded in a volatile manner following the larger-than-expected increase in stockpiles. Prices quickly fell to a 1.1% decline, before rebounding back into positive territory. Crude is currently up 0.2% to $122.06 per barrel. Meanwhile, the dollar is posting a hefty gain of 0.86%, as the euro falls 0.87% and the pound slips 1.07%.DJ30 -32.57 NASDAQ +3.63 SP500 -4.55 NASDAQ Dec/Adv/Vol 1284/1315/654 mln NYSE Dec/Adv/Vol 1472/1417/322 mln
10:35 am : According to the Department of Energy, crude stockpiles for the week ended May 3 rose by 5.7 million barrels. The consensus forecast called for an inventory increase of 1.6 million barrels. Crude was trading up 0.2% to $122.15 per barrel just prior to the release. Yesterday, oil climbed to an all-time intraday high of $122.73 per barrel.
The major indices continue to trade near the unchanged mark, with the Nasdaq posting a slight gain, while the S&P and Dow post slight losses.
The consumer discretionary sector is up 0.8% this session, sending it into positive territory for the year. Walt Disney (DIS 34.87, +1.14) and DirecTV (DTV 26.84, +1.04) are providing leadership, after both companies reported quarterly earnings that topped expectations.DJ30 -11.48 NASDAQ +4.51 SP500 -1.22 NASDAQ Dec/Adv/Vol 1251/1229/452 mln NYSE Dec/Adv/Vol 1427/1397/519 mln
10:05 am : Just hitting the wires, March U.S. pending home sales fell 1.0% month-over-month on a seasonally adjusted annual rate, according to the National Association of Realtors. The decline was in-line with expectations. February sales were revised lower to a decrease of 2.8% from the previous reading that showed a slide of 1.9%. This leaves the year-over-year decline at 20.1%.
The stock market has a slightly negative reaction to the report, with only two of the ten economic sectors in positive territory. The tech sector (+0.2%) is now in the green, as traders warm up to Cisco's (CSCO 26.43, +0.10) better-than-expected earnings report. Consumer discretionary is an early leader, with a gain of 0.4%. The materials sector (-0.5%) is the main drag, as commodites fall 0.5%.DJ30 -30.45 NASDAQ -1.09 SP500 -3.84 NASDAQ Dec/Adv/Vol 1061/1258/241 mln NYSE Dec/Adv/Vol 1316/1379/125 mln
09:40 am : The stock market opens on a lackluster note, even though the majority of this session's news has been positive.
Cisco (CSCO) reported better-than-expected earnings for its fiscal third quarter and issued in-line earnings guidance for its fiscal fourth quarter. Dow component Walt Disney (DIS) had a strong earnings report, easily topping forecasts.
In deal news, Sprint Nextel (S) and Clearwire (CLWR) announced they have entered into a definitive agreement to combine their wireless broadband businesses to form a new wireless communications company, named Clearwire.
In economic news, first quarter nonfarm productivity rose 2.2%, more than the consensus estimate of 1.5%. Unit labor costs came in at 2.2%, which was short of the expected reading of 2.6%. Futures gained a few points on this release.DJ30 -31.20 NASDAQ -1.09 SP500 -1.94 NASDAQ Dec/Adv/Vol 1065/1083/92 mln NYSE Dec/Adv/Vol 1120/1221/55 mln
09:16 am : S&P futures vs fair value: +0.2. Nasdaq futures vs fair value: -1.8. Futures indicate a lackluster start to Wednesday's session. The dollar has bounced higher in early trade, gaining 0.66% against a basket of leading world currencies. The euro has lost 0.84% against the dollar, and the pound is down 1.03%.
08:57 am : S&P futures vs fair value: +1.7. Nasdaq futures vs fair value: +1.8. S&P 500 and Nasdaq futures now point to a slightly higher start, as traders were encouraged by the better than expected productivity reading.
08:31 am : S&P futures vs fair value: flat. Nasdaq futures vs fair value: -4.5. S&P futures versus fair value climb to the unchanged mark on a better than expected economic report. Just reported, first quarter nonfarm productivity rose 2.2%, more than the consensus estimate of 1.5%. Unit labor costs came in at 2.2%, which was short of the expected reading of 2.6%.
08:00 am : S&P futures vs fair value: -2.0. Nasdaq futures vs fair value: -6.0. Futures indicate a slightly lower start. Walt Disney (DIS) reported earnings of $0.58 per share, topping expectations by seven cents. Cisco Systems (CSCO) beat its earnings estimate by two cents, and guided its fiscal fourth quarter in-line with expectations, but said the U.S. market has softened. Sprint Nextel (S) and Clearwire (CLWR) announced they have entered into a a definitive agreement to combine their wireless broadband businesses to form a new wireless communications company, named Clearwire. Crude oil, which is holding near the $122 per barrel mark, will go on the move with the release of the governments weekly energy report (10:30 ET). On the economic front, first quarter nonfarm productivity is set for release at 8:30 ET and March pending home sales will be reported at 10:00 ET.
06:13 am : S&P futures vs fair value: flat. Nasdaq futures vs fair value: -0.3.
06:12 am : FTSE...6261.70...+46.50...+0.8%. DAX...7080.83...+63.73...+0.9%.
06:12 am : Nikkei...14102.48...+53.22...+0.4%. Hang Seng...25610.21...-651.92...-2.5%.
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