AI
Wednesday, May 21, 2008 6:40:39 PM
Market Update 080521
http://biz.yahoo.com/mu/update.html
4:30 pm : On Wednesday, the stock market posted a steep loss for the second straight session. A lowered economic outlook at the Fed and a spike in crude prices weighed on sentiment.
The FOMC released the minutes from its April 30 meeting around 2:00 ET, which sent stocks tumbling. The Fed noted its decision to cut rates by 25 basis points was a "close call" given the current inflation risks. The Fed expects 2008 real GDP growth of between 0.3% and 1.2%, which is down about 1% from their previous forecast. The 2008 inflation outlook was increased, as was the unemployment rate forecast. Several FOMC members said that it was unlikely that it would be appropriate to ease monetary policy in the near term, even if the economy sees a contraction given the current inflation environment.
The release of the minutes spurred the majority of Wednesday's selling interest, with the S&P 500 going from a 0.3% loss to a 1.6% decline on the release. However, market sentiment was already on shaky ground prior to the release, as buyers were showing hesitation in the face of record high crude prices.
The Energy Information Administration announced a substantial and unexpected decrease in crude inventories. Analysts were forecasting a modest build in stockpiles. Crude rallied on the news, gaining 3.75% to $133.82 per barrel, marking a new all-time high.
On a related note, the Amex Airline Index plunged 12% to its lowest level since its 1994 inception. AMR Corp (AMR 6.22, -1.98), which operates American Airlines, spurred the decline after announcing a plan to cut its 2008 domestic capacity by 11% to 12%. The struggling airline also said it is going to start charging $15 for each checked bag. The company said the airline industry is not built to withstand oil prices at $125 per barrel, especially when the economy is weak. This session's spike in crude prices compounded selling interest in airline stocks.
Weakness was not limited to just oil sensitive stocks, with 89% of S&P 500 components posting a loss, and all ten of the economic sectors settling in negative territory. Financials (-2.6%) and materials (-3.1%) had the steepest declines, while defensive-oriented utilities (-0.1%) and health care (-0.6%) outperformed on a relative basis.
On a brighter note, Time Warner (TWX 16.24, +0.09) and Time Warner Cable (TWC 31.27, +1.05) posted decent gains on news that the two companies have agreed to completely separate. The deal will involve a special dividend of $10.9 billion, with $9.25 billion going to Time Warner.
The Dow Jones has fallen 3.3% during the last two sessions, its largest two-day drop since the Bear Stearns (BSC 9.35, -0.26) bailout. However, it is still up 8.3% from its March 17 low.DJ30 -227.49 NASDAQ -43.99 NQ100 -2.2% R2K -1.2% SP400 -1.5% SP500 -22.69 NASDAQ Dec/Adv/Vol 1991/878/2.21 bln NYSE Dec/Adv/Vol 2208/910/1.39 bln
3:30 pm : Selling pressure eases, as the major indices make a modest climb off their worst levels. Losses are still substantial. Crude settled the session with a gain of $4.27 to $133.25 per barrel. Commodities as whole are up 1.7% as the dollar falls 0.6%.
The S&P 500 is now down 2.1% this week, with financials falling 5.8% and consumer discretionary down 3.6%.DJ30 -210.55 NASDAQ -35.31 SP500 -18.59 NASDAQ Dec/Adv/Vol 1917/925/1.80 bln NYSE Dec/Adv/Vol 2105/1008/1.04 bln
2:55 pm : Selling pressure has yet to let up, with the major indices extending their losses. Nine of the ten economic sectors are now in negative territory, including the energy sector (-0.3%), even as crude climbs higher. Only the defensive utilities sector (+0.2%) is managing to post a gain.
Crude oil has traded as high as $133.72, and is currently trading up 3.5% to $133.51 per barrel.DJ30 -211.94 NASDAQ -41.10 SP500 -19.23 NASDAQ Dec/Adv/Vol 2032/798/1.61 bln NYSE Dec/Adv/Vol 2157/939/928 mln
2:30 pm : The major indices are posting a loss of more than 1%. Market participants are concerned over the negative FOMC meeting minutes, with the Fed cutting its growth forecast and raising its inflation expectations. Several FOMC members said that it was unlikely that they will ease policy in the near term, even if the economy sees a contraction.
Airlines are taking an absolute beating, with the Amex Airline Index falling 11% to its lowest level ever. All 14 airlines that make up the Amex Airline Index are posting a loss, with AMR Corp (AMR 6.13, -2.07) down 25% and UAL corp (UAUA 8.77, -2.79) down 24%. The losses were spurred by the world's largest carrier by fleet size, AMR, announcing it was cutting capacity and jobs due to record crude prices and the slowing U.S. economy.
Crude is now up 3.4% to $133.38 per barrel.DJ30 -190.77 NASDAQ -36.17 SP500 -16.15 NASDAQ Dec/Adv/Vol 1877/926/1.45 bln NYSE Dec/Adv/Vol 2020/1060/843 mln
2:05 pm : The major indices fall to their worst levels of the session, and then extend their losses on the just released April 30 FOMC meeting minutes.
At its April 30 meeting the FOMC decided to cut the fed funds rate by 25 basis points to 2.00%, in what it called a "close call." The Fed expects unemployment will "increase significantly," raising its 2008 forecast to 5.6% from 5.25%. In addition, many officials forecast negative GDP growth in the first half, and the Fed cut its 2008 GDP growth forecast to between 0.3% and 1.2% from between 1.3% and 2.0%. However, inflation risks have increased, with the Fed raising its core-inflation forecast to between 2.2% and 2.4% from between 2.0% and 2.2%. Dallas Fed President Fisher and Philadelphia Fed President Plosser dissented against the rate cut on inflation concerns.
Meanwhile, crude oil continues to break records, climbing 2.9% to a new all-time high of $132.70 per barrel.DJ30 -132.88 NASDAQ -17.91 SP500 -9.41 NASDAQ Dec/Adv/Vol 1483/1315/1.20 bln NYSE Dec/Adv/Vol 1576/1458/715 mln
1:30 pm : The broader market is extending its downturn as declining issues outnumber advancers in the S&P 500. In turn, the majority of the major economic sectors continue to trade with losses.
At midweek, the best performing economic sectors have been energy, health care, and utilities. Week-to-date, energy is up 3.0%, health care is up 0.6%, and the utilities sector is up 2.3%. They are also the only three sectors trading in positive territory today, up 1.1%, 0.2%, and 0.8%, respectively.DJ30 -91.68 NASDAQ -7.76 SP500 -4.90 NASDAQ Dec/Adv/Vol 1420/1357/1.10 bln NYSE Dec/Adv/Vol 1541/1496/657 mln
1:00 pm : The S&P 500 briefly climbs into positive territory after a broad-based increase in buying interest, but then retreats to the unchanged mark. Financials remain weak with a 1.2% decline.
Moody's (MCO 38.24, -5.66), a credit rating agency, is posting its largest one day percent decline since 1999 after the Financial Times reported the company may have improperly given Aaa ratings to complex debt. The article states that Moody's knew in early 2007 that coding errors in the company's computer models caused the improper ratings. Credit agencies have already been under fire for rating subprime debt with Aaa ratings.DJ30 -51.62 NASDAQ +2.68 SP500 +0.14 NASDAQ Dec/Adv/Vol 1252/1488/996 mln NYSE Dec/Adv/Vol 1367/1653/596 mln
12:30 pm : The major indices continue to post modest losses with six of the ten economic sectors trading lower. The financial sector (-1.3%) has fallen to a session low, but its weakness is being offset by a 1.0% gain in energy stocks due to the spike in crude prices.
Meanwhile, small-cap and mid-cap stocks are outperforming on a relative basis. The Russel 2000 is up 0.4%, and the S&P 400 is up 0.1%.DJ30 -64.97 NASDAQ -2.04 SP500 -1.58 NASDAQ Dec/Adv/Vol 1345/1376/891 mln NYSE Dec/Adv/Vol 1438/1558/537 mln
12:00 pm : The stock market is posting a loss for the second straight day after a spike in crude prices keeps buyers on the sidelines. Losses are modest, with the S&P 500 down only 0.1%.
The Energy Information Administration announced that crude inventory levels for the week ended May 17 fell 5.32 million barrels, marking the first decline after four consecutive weeks of inventory builds. Analysts expected stockpiles to increase by 300,000 barrels.
As a result, crude oil prices spiked from the unchanged mark to a gain of 2.4% at $132.08 per barrel, marking an all-time high. Crude prices are up 16% in May, the largest monthly percent advance in nearly four years.
On that note, the Amex Airline Index (-7.0%) is getting pummeled this session, hitting a 52-week low. AMR Corp (AMR 6.83, -1.37), which operates American Airlines, announced it is cutting its 2008 domestic capacity by 11% to 12%. The company said the airline industry is not built to withstand oil prices at $125 per barrel, especially when the economy is weak. Shares of AMR are down 77% from their 52-week high.
Earnings reports have been mostly better than expected, but the market's response has been mixed. Hewlett-Packard (HPQ 45.49, -0.97), Intuit (INTU 28.35, +1.14), Analog Devices (ADI 33.60, -1.15) and BJ's Wholesale (BJ 37.90, -0.95) all topped their respective earnings estimates. Of note, Hewlett-Packard had already preannounced its earnings.
In corporate news, Time Warner (TWX 16.35, +0.20) has agreed on a complete split with Time Warner Cable (TWC 31.11, +0.89). The deal will involve a special dividend of $10.9 billion, with $9.25 billion going to Time Warner.
Market participants await the 2:00 ET release of the April 30 FOMC meeting minutes. The Fed cut the fed funds rate by 25 basis points at the meeting, although two members dissented, preferring no change.DJ30 -56.67 NASDAQ -3.52 SP500 -1.20 NASDAQ Dec/Adv/Vol 1311/1371/812 mln NYSE Dec/Adv/Vol 1375/1589/486 mln
11:30 am : The major indices are on the rise, but remain in the red. Losses are modest.
The financial sector is underperforming again this session with a loss of 1.0%, after falling more than 2% on Tuesday. Specialized finance is down 3.3% and investment banks & brokerages is down 2.1%. Student lender SLM Corp. (SLM 22.22, +1.44) is bucking the negative trend, on hopes that the lender will get more favorable terms from the government.
Crude prices continued to rally, hitting as high as $132.08 per barrel, before easing a bit to $131.46.DJ30 -66.79 NASDAQ -3.90 SP500 -1.72 NASDAQ Dec/Adv/Vol 1346/1294/692 mln NYSE Dec/Adv/Vol 1427/1513/416 mln
11:00 am : The major indices fall to session lows, although the S&P 500's loss is modest. The Dow is posting a larger decline of more than a half percent as Boeing (BA 82.10, -3.04) and Hewlett-Packard (HPQ 45.42, -1.04) come under selling pressure.
Crude prices have bounced from the unchanged mark to a gain of 1.4% at $130.80 per barrel due to the unexpected drop in crude inventories. This marks a fresh all-time intraday high. Crude oil prices are up 15.2% in May, the largest monthly gain since October 2007.DJ30 -79.79 NASDAQ -3.72 SP500 -3.56 NASDAQ Dec/Adv/Vol 1205/1363/547 mln NYSE Dec/Adv/Vol 1380/1510/336 mln
10:35 am : The major indices fall into negative territory, although losses are slight, on an unexpected decrease in crude inventories.
Just hitting the wires, crude oil inventories for the week ended May 17 fell 5.32 million barrels, snapping four straight weeks of inventory builds. Analysts forecasted that stockpiles would increase by 300,000 barrels. Crude was trading nearly unchanged at $128.93 per barrel just prior to the release.DJ30 -44.78 NASDAQ -2.68 SP500 -0.75 NASDAQ Dec/Adv/Vol 984/1488/359 mln NYSE Dec/Adv/Vol 1089/1726/218 mln
10:00 am : The stock market extends its opening gains, and then slips back toward the unchanged mark. The Dow is now trading with a modest loss. Six of the ten economic sectors are in positive territory, led by utilities (+1.0%) and energy (+0.7%). Financials (-0.5%) and consumer discretionary (-0.5%) are underperforming on a relative basis.
Earnings news was on the light side. Intuit (INTU 28.88, +1.67), Analog Devices (ADI 32.56, -2.19) and BJ's Wholesale (BJ 37.22, -1.66) all reported earnings that topped expectations, although traders have had a mixed response to the companies' results.
Separately, the Amex Airline Index is getting hammered, with a 5.4% decline. AMR Corp (AMR 7.10, -1.10), which operates American Airlines, announced it is cutting its 2008 domestic capacity by 11% to 12%. The company said the airline industry is not built to withstand oil prices at $125 per barrel, especially when the economy is weak. Shares of AMR are down 75% from their 52-week high.DJ30 -18.97 NASDAQ +3.96 SP500 +1.28 NASDAQ Dec/Adv/Vol 909/1465/230 mln NYSE Dec/Adv/Vol 1104/1634/144 mln
09:35 am : The stock market has a subdued start to trade as traders await the weekly energy inventory report (10:30 ET) and the minutes from the April 30 FOMC meeting (2:00 ET).
In corporate news, Time Warner (TWX) agreed on a complete split with Time Warner Cable (TWC), that involves a special dividend of $10.9 billion, with $9.25 billion going to Time Warner.DJ30 +6.27 NASDAQ +4.00 SP500 +2.12
09:16 am : S&P futures vs fair value: +1.7. Nasdaq futures vs fair value: flat.
08:57 am : S&P futures vs fair value: +1.0. Nasdaq futures vs fair value: -3.5. Crude oil has pulled back a bit from its all-time high, and is now trading with a slight 0.2% gain at $129.24 per barrel.
08:28 am : S&P futures vs fair value: +1.6. Nasdaq futures vs fair value: -1.8. Futures suggest a muted start to the trading day. Time Warner (TWX) is up more than 2% in premarket trading after confirming it has agreed with Time Warner Cable (TWC) to a complete legal and structural separation of the two companies.
08:00 am : S&P futures vs fair value: +0.6. Nasdaq futures vs fair value: -4.8. Stocks futures suggest a flat-to-modestly lower start as market participants await the April 30 FOMC meeting minutes. Meanwhile, crude oil hit an all-time high of $130.47 per barrel ahead of the government's weekly energy inventory report at 10:30 ET.
06:15 am : S&P futures vs fair value: +5.7. Nasdaq futures vs fair value: +7.0.
06:14 am : FTSE...6240.80...+49.20...+0.8%. DAX...7134.35...+15.74...+0.2%.
06:14 am : Nikkei...13926.30...-233.79...-1.7%. Hang Seng...25460.29...+290.83...+1.2%
http://biz.yahoo.com/mu/update.html
4:30 pm : On Wednesday, the stock market posted a steep loss for the second straight session. A lowered economic outlook at the Fed and a spike in crude prices weighed on sentiment.
The FOMC released the minutes from its April 30 meeting around 2:00 ET, which sent stocks tumbling. The Fed noted its decision to cut rates by 25 basis points was a "close call" given the current inflation risks. The Fed expects 2008 real GDP growth of between 0.3% and 1.2%, which is down about 1% from their previous forecast. The 2008 inflation outlook was increased, as was the unemployment rate forecast. Several FOMC members said that it was unlikely that it would be appropriate to ease monetary policy in the near term, even if the economy sees a contraction given the current inflation environment.
The release of the minutes spurred the majority of Wednesday's selling interest, with the S&P 500 going from a 0.3% loss to a 1.6% decline on the release. However, market sentiment was already on shaky ground prior to the release, as buyers were showing hesitation in the face of record high crude prices.
The Energy Information Administration announced a substantial and unexpected decrease in crude inventories. Analysts were forecasting a modest build in stockpiles. Crude rallied on the news, gaining 3.75% to $133.82 per barrel, marking a new all-time high.
On a related note, the Amex Airline Index plunged 12% to its lowest level since its 1994 inception. AMR Corp (AMR 6.22, -1.98), which operates American Airlines, spurred the decline after announcing a plan to cut its 2008 domestic capacity by 11% to 12%. The struggling airline also said it is going to start charging $15 for each checked bag. The company said the airline industry is not built to withstand oil prices at $125 per barrel, especially when the economy is weak. This session's spike in crude prices compounded selling interest in airline stocks.
Weakness was not limited to just oil sensitive stocks, with 89% of S&P 500 components posting a loss, and all ten of the economic sectors settling in negative territory. Financials (-2.6%) and materials (-3.1%) had the steepest declines, while defensive-oriented utilities (-0.1%) and health care (-0.6%) outperformed on a relative basis.
On a brighter note, Time Warner (TWX 16.24, +0.09) and Time Warner Cable (TWC 31.27, +1.05) posted decent gains on news that the two companies have agreed to completely separate. The deal will involve a special dividend of $10.9 billion, with $9.25 billion going to Time Warner.
The Dow Jones has fallen 3.3% during the last two sessions, its largest two-day drop since the Bear Stearns (BSC 9.35, -0.26) bailout. However, it is still up 8.3% from its March 17 low.DJ30 -227.49 NASDAQ -43.99 NQ100 -2.2% R2K -1.2% SP400 -1.5% SP500 -22.69 NASDAQ Dec/Adv/Vol 1991/878/2.21 bln NYSE Dec/Adv/Vol 2208/910/1.39 bln
3:30 pm : Selling pressure eases, as the major indices make a modest climb off their worst levels. Losses are still substantial. Crude settled the session with a gain of $4.27 to $133.25 per barrel. Commodities as whole are up 1.7% as the dollar falls 0.6%.
The S&P 500 is now down 2.1% this week, with financials falling 5.8% and consumer discretionary down 3.6%.DJ30 -210.55 NASDAQ -35.31 SP500 -18.59 NASDAQ Dec/Adv/Vol 1917/925/1.80 bln NYSE Dec/Adv/Vol 2105/1008/1.04 bln
2:55 pm : Selling pressure has yet to let up, with the major indices extending their losses. Nine of the ten economic sectors are now in negative territory, including the energy sector (-0.3%), even as crude climbs higher. Only the defensive utilities sector (+0.2%) is managing to post a gain.
Crude oil has traded as high as $133.72, and is currently trading up 3.5% to $133.51 per barrel.DJ30 -211.94 NASDAQ -41.10 SP500 -19.23 NASDAQ Dec/Adv/Vol 2032/798/1.61 bln NYSE Dec/Adv/Vol 2157/939/928 mln
2:30 pm : The major indices are posting a loss of more than 1%. Market participants are concerned over the negative FOMC meeting minutes, with the Fed cutting its growth forecast and raising its inflation expectations. Several FOMC members said that it was unlikely that they will ease policy in the near term, even if the economy sees a contraction.
Airlines are taking an absolute beating, with the Amex Airline Index falling 11% to its lowest level ever. All 14 airlines that make up the Amex Airline Index are posting a loss, with AMR Corp (AMR 6.13, -2.07) down 25% and UAL corp (UAUA 8.77, -2.79) down 24%. The losses were spurred by the world's largest carrier by fleet size, AMR, announcing it was cutting capacity and jobs due to record crude prices and the slowing U.S. economy.
Crude is now up 3.4% to $133.38 per barrel.DJ30 -190.77 NASDAQ -36.17 SP500 -16.15 NASDAQ Dec/Adv/Vol 1877/926/1.45 bln NYSE Dec/Adv/Vol 2020/1060/843 mln
2:05 pm : The major indices fall to their worst levels of the session, and then extend their losses on the just released April 30 FOMC meeting minutes.
At its April 30 meeting the FOMC decided to cut the fed funds rate by 25 basis points to 2.00%, in what it called a "close call." The Fed expects unemployment will "increase significantly," raising its 2008 forecast to 5.6% from 5.25%. In addition, many officials forecast negative GDP growth in the first half, and the Fed cut its 2008 GDP growth forecast to between 0.3% and 1.2% from between 1.3% and 2.0%. However, inflation risks have increased, with the Fed raising its core-inflation forecast to between 2.2% and 2.4% from between 2.0% and 2.2%. Dallas Fed President Fisher and Philadelphia Fed President Plosser dissented against the rate cut on inflation concerns.
Meanwhile, crude oil continues to break records, climbing 2.9% to a new all-time high of $132.70 per barrel.DJ30 -132.88 NASDAQ -17.91 SP500 -9.41 NASDAQ Dec/Adv/Vol 1483/1315/1.20 bln NYSE Dec/Adv/Vol 1576/1458/715 mln
1:30 pm : The broader market is extending its downturn as declining issues outnumber advancers in the S&P 500. In turn, the majority of the major economic sectors continue to trade with losses.
At midweek, the best performing economic sectors have been energy, health care, and utilities. Week-to-date, energy is up 3.0%, health care is up 0.6%, and the utilities sector is up 2.3%. They are also the only three sectors trading in positive territory today, up 1.1%, 0.2%, and 0.8%, respectively.DJ30 -91.68 NASDAQ -7.76 SP500 -4.90 NASDAQ Dec/Adv/Vol 1420/1357/1.10 bln NYSE Dec/Adv/Vol 1541/1496/657 mln
1:00 pm : The S&P 500 briefly climbs into positive territory after a broad-based increase in buying interest, but then retreats to the unchanged mark. Financials remain weak with a 1.2% decline.
Moody's (MCO 38.24, -5.66), a credit rating agency, is posting its largest one day percent decline since 1999 after the Financial Times reported the company may have improperly given Aaa ratings to complex debt. The article states that Moody's knew in early 2007 that coding errors in the company's computer models caused the improper ratings. Credit agencies have already been under fire for rating subprime debt with Aaa ratings.DJ30 -51.62 NASDAQ +2.68 SP500 +0.14 NASDAQ Dec/Adv/Vol 1252/1488/996 mln NYSE Dec/Adv/Vol 1367/1653/596 mln
12:30 pm : The major indices continue to post modest losses with six of the ten economic sectors trading lower. The financial sector (-1.3%) has fallen to a session low, but its weakness is being offset by a 1.0% gain in energy stocks due to the spike in crude prices.
Meanwhile, small-cap and mid-cap stocks are outperforming on a relative basis. The Russel 2000 is up 0.4%, and the S&P 400 is up 0.1%.DJ30 -64.97 NASDAQ -2.04 SP500 -1.58 NASDAQ Dec/Adv/Vol 1345/1376/891 mln NYSE Dec/Adv/Vol 1438/1558/537 mln
12:00 pm : The stock market is posting a loss for the second straight day after a spike in crude prices keeps buyers on the sidelines. Losses are modest, with the S&P 500 down only 0.1%.
The Energy Information Administration announced that crude inventory levels for the week ended May 17 fell 5.32 million barrels, marking the first decline after four consecutive weeks of inventory builds. Analysts expected stockpiles to increase by 300,000 barrels.
As a result, crude oil prices spiked from the unchanged mark to a gain of 2.4% at $132.08 per barrel, marking an all-time high. Crude prices are up 16% in May, the largest monthly percent advance in nearly four years.
On that note, the Amex Airline Index (-7.0%) is getting pummeled this session, hitting a 52-week low. AMR Corp (AMR 6.83, -1.37), which operates American Airlines, announced it is cutting its 2008 domestic capacity by 11% to 12%. The company said the airline industry is not built to withstand oil prices at $125 per barrel, especially when the economy is weak. Shares of AMR are down 77% from their 52-week high.
Earnings reports have been mostly better than expected, but the market's response has been mixed. Hewlett-Packard (HPQ 45.49, -0.97), Intuit (INTU 28.35, +1.14), Analog Devices (ADI 33.60, -1.15) and BJ's Wholesale (BJ 37.90, -0.95) all topped their respective earnings estimates. Of note, Hewlett-Packard had already preannounced its earnings.
In corporate news, Time Warner (TWX 16.35, +0.20) has agreed on a complete split with Time Warner Cable (TWC 31.11, +0.89). The deal will involve a special dividend of $10.9 billion, with $9.25 billion going to Time Warner.
Market participants await the 2:00 ET release of the April 30 FOMC meeting minutes. The Fed cut the fed funds rate by 25 basis points at the meeting, although two members dissented, preferring no change.DJ30 -56.67 NASDAQ -3.52 SP500 -1.20 NASDAQ Dec/Adv/Vol 1311/1371/812 mln NYSE Dec/Adv/Vol 1375/1589/486 mln
11:30 am : The major indices are on the rise, but remain in the red. Losses are modest.
The financial sector is underperforming again this session with a loss of 1.0%, after falling more than 2% on Tuesday. Specialized finance is down 3.3% and investment banks & brokerages is down 2.1%. Student lender SLM Corp. (SLM 22.22, +1.44) is bucking the negative trend, on hopes that the lender will get more favorable terms from the government.
Crude prices continued to rally, hitting as high as $132.08 per barrel, before easing a bit to $131.46.DJ30 -66.79 NASDAQ -3.90 SP500 -1.72 NASDAQ Dec/Adv/Vol 1346/1294/692 mln NYSE Dec/Adv/Vol 1427/1513/416 mln
11:00 am : The major indices fall to session lows, although the S&P 500's loss is modest. The Dow is posting a larger decline of more than a half percent as Boeing (BA 82.10, -3.04) and Hewlett-Packard (HPQ 45.42, -1.04) come under selling pressure.
Crude prices have bounced from the unchanged mark to a gain of 1.4% at $130.80 per barrel due to the unexpected drop in crude inventories. This marks a fresh all-time intraday high. Crude oil prices are up 15.2% in May, the largest monthly gain since October 2007.DJ30 -79.79 NASDAQ -3.72 SP500 -3.56 NASDAQ Dec/Adv/Vol 1205/1363/547 mln NYSE Dec/Adv/Vol 1380/1510/336 mln
10:35 am : The major indices fall into negative territory, although losses are slight, on an unexpected decrease in crude inventories.
Just hitting the wires, crude oil inventories for the week ended May 17 fell 5.32 million barrels, snapping four straight weeks of inventory builds. Analysts forecasted that stockpiles would increase by 300,000 barrels. Crude was trading nearly unchanged at $128.93 per barrel just prior to the release.DJ30 -44.78 NASDAQ -2.68 SP500 -0.75 NASDAQ Dec/Adv/Vol 984/1488/359 mln NYSE Dec/Adv/Vol 1089/1726/218 mln
10:00 am : The stock market extends its opening gains, and then slips back toward the unchanged mark. The Dow is now trading with a modest loss. Six of the ten economic sectors are in positive territory, led by utilities (+1.0%) and energy (+0.7%). Financials (-0.5%) and consumer discretionary (-0.5%) are underperforming on a relative basis.
Earnings news was on the light side. Intuit (INTU 28.88, +1.67), Analog Devices (ADI 32.56, -2.19) and BJ's Wholesale (BJ 37.22, -1.66) all reported earnings that topped expectations, although traders have had a mixed response to the companies' results.
Separately, the Amex Airline Index is getting hammered, with a 5.4% decline. AMR Corp (AMR 7.10, -1.10), which operates American Airlines, announced it is cutting its 2008 domestic capacity by 11% to 12%. The company said the airline industry is not built to withstand oil prices at $125 per barrel, especially when the economy is weak. Shares of AMR are down 75% from their 52-week high.DJ30 -18.97 NASDAQ +3.96 SP500 +1.28 NASDAQ Dec/Adv/Vol 909/1465/230 mln NYSE Dec/Adv/Vol 1104/1634/144 mln
09:35 am : The stock market has a subdued start to trade as traders await the weekly energy inventory report (10:30 ET) and the minutes from the April 30 FOMC meeting (2:00 ET).
In corporate news, Time Warner (TWX) agreed on a complete split with Time Warner Cable (TWC), that involves a special dividend of $10.9 billion, with $9.25 billion going to Time Warner.DJ30 +6.27 NASDAQ +4.00 SP500 +2.12
09:16 am : S&P futures vs fair value: +1.7. Nasdaq futures vs fair value: flat.
08:57 am : S&P futures vs fair value: +1.0. Nasdaq futures vs fair value: -3.5. Crude oil has pulled back a bit from its all-time high, and is now trading with a slight 0.2% gain at $129.24 per barrel.
08:28 am : S&P futures vs fair value: +1.6. Nasdaq futures vs fair value: -1.8. Futures suggest a muted start to the trading day. Time Warner (TWX) is up more than 2% in premarket trading after confirming it has agreed with Time Warner Cable (TWC) to a complete legal and structural separation of the two companies.
08:00 am : S&P futures vs fair value: +0.6. Nasdaq futures vs fair value: -4.8. Stocks futures suggest a flat-to-modestly lower start as market participants await the April 30 FOMC meeting minutes. Meanwhile, crude oil hit an all-time high of $130.47 per barrel ahead of the government's weekly energy inventory report at 10:30 ET.
06:15 am : S&P futures vs fair value: +5.7. Nasdaq futures vs fair value: +7.0.
06:14 am : FTSE...6240.80...+49.20...+0.8%. DAX...7134.35...+15.74...+0.2%.
06:14 am : Nikkei...13926.30...-233.79...-1.7%. Hang Seng...25460.29...+290.83...+1.2%
Discover What Traders Are Watching
Explore small cap ideas before they hit the headlines.
