AI
Monday, June 16, 2008 6:03:25 PM
Market Update 080616
http://biz.yahoo.com/mu/update.html
4:15 pm : The stock market settled unchanged on Monday, as strength in financials offset weakness in consumer staples and telecom. The tech-heavy Nasdaq Composite handily outperformed the broader market with a gain of 0.8% thanks to strength in large-cap names.
Much of the action, however, was outside of the stock market, with crude prices going on massive $7 swing from peak to trough.
Crude oil futures soared 3.7% to an all-time high of $139.89 per barrel in premarket trading -- which occurred despite reports that Saudi Arabia is going to increase its output by 200,000 barrels a day, increasing worldwide supply by 0.2%. There was not a specific catalyst for the advance, although a declining dollar (-0.7%) and reports of a North Sea rig fire played a role in the buying interest. Then on no specific news, crude reversed in the red, settling the day with a loss of 0.8% at $133.82 per barrel.
The financial sector was once again in focus on Monday. Lehman Brothers (LEH 27.09, +1.28) reported a second quarter loss of $2.8 billion, or $5.14 per share -- matching its preannouncement. Lehman's stock rose 5%, with investors encouraged on word that the company cut its mortgage holdings by 20%.
AIG (AIG 34.02, -0.16) ousted its CEO in response to poor handling of the credit market turmoil, which follows in the footsteps of several other major financial firms. AIG said the management change is not in response to its second quarter results, which the company is expected to report sometime in August.
Financials (+1.1%) outperformed throughout the session, and settled the day with the largest advance.
The Nasdaq outperformed with Research In Motion (RIMM 140.96, +8.00) benefiting from several positive brokerage comments and Teva Pharmaceutical (TEVA 44.74, +2.24) advancing after announcing one of its drugs can slow down the progression of Parkinson's disease. Apple (AAPL 176.85, +4.48) also gave the index a boost, with brokerage firm RBC increasing its iPhone sales estimates and speculation over CEO Steve Jobs' health driving the buying interest.
Brokerage downgrades of giants General Electric (GE 28.96, -0.19), Verizon (VZ 36.19, -1.14) and AT&T (T 36.14, -0.54) -- which make up more than 5% of the S&P 500 -- prevented the broader market from making an advance.
Verizon and AT&T were downgraded to Neutral from Buy at UBS. The firm believes economic weakness will hinder results at the telecom giants. The telecom sector (-1.4%) posted the largest loss of the day.
General Electric -- the second largest company within the S&P 500 behind Exxon Mobil (XOM 88.00, -0.36) -- was downgraded to Neutral from Outperform at JPMorgan. The firm feels that slower economic growth may reduce GE's earnings.
In economic news, June manufacturing activity in the New York region contracted by a larger-than-expected amount, according to the NY Empire State Index. The reading slipped 5.5 to -8.7, which fell short of the consensus estimate of -2.0. The stock market responded negatively to the report.DJ30 -38.27 NASDAQ +20.28 NQ100 +1.0% R2K +1.0% SP400 +0.8% SP500 +0.11 NASDAQ Dec/Adv/Vol 1168/1673/1.85 bln NYSE Dec/Adv/Vol 1225/1879/1.16 bln
3:35 pm : The major indices are trading in a tight range, with the Nasdaq and S&P in the green, while the Dow trades with a slight loss.
In overseas trading, European stocks posted a modest decline of 0.4%, while the DJ World Ex-US Index rose 1.1% thanks to strength in Asian markets.
Tomorrow, the economic trading catalysts are going to be May PPI, industrial production, and housing starts and building permits. With regard to earnings, the big report will come from Goldman Sachs (GS 183.35, +5.06) with traders anxious to see if Goldman was again able to navigate through the credit turmoil relatively unscathed.DJ30 -22.15 NASDAQ +19.06 SP500 +0.95 NASDAQ Dec/Adv/Vol 1204/1624/1.56 bln NYSE Dec/Adv/Vol 1202/1906/908 mln
3:00 pm : The S&P 500 is holding a slight gain of 0.3%, as it trades near its session high. The Nasdaq is outperforming with a gain of 0.9%, as strength in large-cap names lifts the tech-heavy Index.
On the NYSE, advancers outpace decliners by 14-to-9 and by 4-to-3 on the Nasdaq.
Shares of waste management companies Allied Waste (AW 13.96, -1.04) and Republic Services (RSG 31.99, -1.86) have been under pressure throughout the session. The two companies confirmed they are in discussion regarding a possible business combination. Allied shareholders would receive 0.45 shares of Republic.DJ30 +2.60 NASDAQ +22.53 SP500 +3.87 NASDAQ Dec/Adv/Vol 1178/1641/1.40 bln NYSE Dec/Adv/Vol 1154/1933/815 mln
2:30 pm : The stock market is in positive territory, but dips off its best level. Strength in financials (+1.3%), energy (+0.5%) and tech (+0.5%) is helping to offset weakness in telecom (-1.8%) and consumer staples (-1.1%).
Crude oil (-0.4% to $134.39) is in the red, but has pared some of its losses. Commodities as a whole are up 1.0%, with strength in gold (+1.5%).DJ30 -19.46 NASDAQ +17.57 SP500 +0.97 NASDAQ Dec/Adv/Vol 1230/1575/1.29 bln NYSE Dec/Adv/Vol 1225/1844/752 mln
2:00 pm : Crude oil is now trading down 0.7% to $133.90 per barrel -- which is $6 less than its all-time high that was reached early this morning. The stock market climbs into positive territory thanks to mostly broad-based buying interest, with notable strength within tech (+0.7%) and other large-cap names within the Nasdaq 100 (+1.1%).
Apple (AAPL 177.01, +4.63) is providing leadership, which is a complete reversal from this morning when it was the main laggard with a loss of 1.9%. Apple has traded in volatile manner the last few session on speculation over the state of CEO Steve Jobs' health. Research In Motion (RIMM 140.37, +7.41) continues to benefit from brokerage upgrades and Teva Pharmaceuticals (TEVA 44.76, +2.26) is boasting a solid gain on positive results on one of its drugs' ability to slow down Parkinson's disease.DJ30 +0.08 NASDAQ +22.17 SP500 +2.96 NASDAQ Dec/Adv/Vol 1227/1569/1.19 bln NYSE Dec/Adv/Vol 1232/1823/696 mln
1:30 pm : The S&P 500 is hovering near the unchanged mark. Four of the ten economic sectors are in positive territory, led by financials (+1.3%).
Crude oil is trading up 0.1% to $135.09 per barrel -- marking a more than $4 retreat from its all-time high. Brokerage firm Oppenheimer noted that the current record high oil prices are due to excessive speculation, and are not justified by supply and demand. The firm believes current fundamentals support oil prices at or below last year's level of roughly $65 per barrel.
The dollar continues to trade with steep losses, down 0.8%.DJ30 -24.18 NASDAQ +15.43 SP500 +0.91 NASDAQ Dec/Adv/Vol 1333/1691/1.05 bln NYSE Dec/Adv/Vol 1333/1691/624 mln
1:05 pm : After momentarily touching the unchanged mark stocks have dipped back into negative territory. The loss is relatively slight, though the session continues to trade with a relatively bearish tone; decliners in the S&P 500 outnumber advancing issues by 3-to-1.
After being upgraded at Oppenheimer, H&R Block (HRB 23.22, +0.90) is trading higher, helping to lift the specialized consumer services subindustry.
Crude continues to trade higher. The commodity is currently trading hands just below $137 per barrel, up $2.DJ30 -49.18 NASDAQ +10.71 SP500 -1.50 NASDAQ Dec/Adv/Vol 1279/1473/974 mln NYSE Dec/Adv/Vol 1337/1661/578 mln
12:30 pm : The major indices continue to trade in mixed fashion. The S&P 500 has traded in negative territory for the overwhelming majority of the session.
The consumer staples sector (-1.5%) extends its losses, falling to session lows. PepsiCo (PEP 65.48, -2.06) is the worst performing name, although there does not appear to be a specific item that accounts for the selling interest. Competitor Coca-Cola (KO 54.17, -1.25) is also facing selling pressure.
The financials sector (+0.6%) is in positive territory, but is well off its high when it was up 2.0%. Goldman Sachs (GS 180.73, +2.44) laid off investment bankers last week in response to the sluggish merger activity, according to Reuters.com.DJ30 -64.49 NASDAQ +8.19 SP500 -3.33 NASDAQ Dec/Adv/Vol 1295/1441/873 mln NYSE Dec/Adv/Vol 1344/1626/514 mln
12:05 pm : At midday, the stock market is posting a slight loss. Gains in financial stocks are helping to offset disappointment over an increase in crude prices and brokerage downgrades of several large-cap stocks.
Meanwhile, the Nasdaq is outperforming with a 0.4% gain as Research In Motion (RIMM 139.20, +6.24) benefits from several positive brokerage comments and Teva Pharmaceutical (TEVA 44.64, +2.14) advances after announcing one of its drugs can slow down the progression of Parkinson's disease.
With regard to financial stocks, Lehman Brothers (LEH 27.19, +1.38) reported a second quarter loss of $2.8 billion, or $5.14 per share -- matching its preannouncement. Lehman's stock is up 5.4%, partially due to news that Lehman cut its mortgage holdings by 20%.
AIG (AIG 33.78, -0.40) ousted its CEO in response to poor handling of the credit market turmoil, which follows in the footsteps of several other major financial firms. AIG said the management change is not in response to its second quarter results, which the company is expected to report sometime in August.
Financials have outperformed throughout the session, leading the market at midday with a gain of 1.0%.
Crude oil futures are up 1.5% at $137.89 per barrel, although they did slip from their all-time high of $139.89 per barrel. Meanwhile, the dollar is down 0.7% against a basket of world currencies. The weakness in the dollar is giving a boost to gold (+1.9% 886.90 per ounce). As a result, the energy (+0.5%) and materials sectors (+0.5%) have garnered some buying interest.
Several notable brokerage downgrades are preventing the broader market from advancing.
Telecom (-2.1%) is under pressure after Verizon (VZ 36.37, -0.96) and AT&T (T 35.89, -0.79) were downgraded to Neutral from Buy at UBS.
General Electric (GE 28.91, -0.24) -- the second largest company within the S&P 500 -- was downgraded to Neutral from Outperform at JPMorgan. The firm feels that slower economic growth may reduce GE's earnings.
In economic news, June manufacturing activity in the New York region contracted by a larger-than-expected amount, according to the NY Empire State Index. The reading slipped 5.5 to -8.7, which fell short of the consensus estimate of -2.0. The stock market responded negatively to the report.DJ30 -51.78 NASDAQ -2.88 SP500 +8.57 NASDAQ Dec/Adv/Vol 1254/1453/780 mln NYSE Dec/Adv/Vol 1294/1658/458 mln
11:30 am : The recovery effort fades, as the S&P 500 joins the Dow in the red in a broad-based pullback. Crude (+1.7% to $137.13) continues to give up some of its advance, while the Dollar Index (-0.6%) manages to pare some of its losses.
The Dow has remained in negative territory throughout the session. Dow components Verizon (VZ 36.32, -1.01), AT&T (T 35.65, -1.03) and General Electric (GE 28.74, -0.41) are all under pressure after being downgraded by brokerage firms.DJ30 -49.07 NASDAQ +10.74 SP500 -2.35 NASDAQ Dec/Adv/Vol 1223/1447/672 mln NYSE Dec/Adv/Vol 1284/1630/395 mln
11:00 am : The S&P 500 climbs to the unchanged mark, as the financial sector (+1.9%) hits its best level of the session. Five of the ten economic sectors are now in positive territory. The Nasdaq is outperforming as it posts a modest gain.
Within the Nasdaq, maker of BlackBerry devices Research In Motion (RIMM 137.65, +4.69) is leading the way on several positive brokerage comments. Teva Pharmaceutical (TEVA 44.36, +2.01) is showing strength after announcing that a phase III study showed Azilect can slow down the progression of Parkinson's disease. Apple (AAPL 170.25, -2.12) is acting as the Nasdaq's limiting factor.DJ30 -17.02 NASDAQ +15.78 SP500 +0.63 NASDAQ Dec/Adv/Vol 1156/1439/518 mln NYSE Dec/Adv/Vol 1249/1606/304 mln
10:30 am : The stock market is in the red, although it is trading at its best level of the session as the financial sector (+1.4%) rallies. Lehman Brothers (LEH 27.51, +1.70) is leading the push higher, after reporting its second quarter results earlier this morning. The firm lost $2.8 billion in the second quarter, or $5.14 per share, matching its preannouncement.
Telecom (-2.2%) is the worst-performing sector this session, and is the second worst-performing this year with a loss of 16% -- compared to financials year-to-date decline of 20%. The selling interest this session is driven by downgrades of Verizon (VZ 36.24, -1.09) and AT&T (T 35.80, -0.88) to Neutral from Buy at UBS.DJ30 -50.97 NASDAQ -0.09 SP500 -3.28 NASDAQ Dec/Adv/Vol 1354/1186/372 mln NYSE Dec/Adv/Vol 1434/1367/224 mln
10:00 am : Buyers are not showing much interest in the early-going as the major indices post modest losses. Eight of the ten economic sectors are in negative territory, led by weakness in telecom (-2.3%) and healthcare (-1.0%). Financials (+0.2%) and energy (+0.5%) are the best-performing sectors.
Although financials are outperforming, insurance giant AIG (AIG 34.02, -0.16) is posting a loss of 0.5%. The Dow component ousted its CEO in response to the company's poor performance and handling of the credit market turmoil. AIG said the management change is not in response to its second quarter results, which the company is expected to report sometime in August.
Crude oil futures are posting a substantial gain of 2.2% at $137.89 per barrel, although they did slip from their all-time high of $139.89 per barrel. Meanwhile, the dollar hits session lows, falling 0.9% against a basket of world currencies. The weakness in the dollar is giving a boost to gold (+2.0% to $887.80).DJ30 -75.07 NASDAQ -5.45 SP500 -5.97 NASDAQ Dec/Adv/Vol 1312/1078/217 mln NYSE Dec/Adv/Vol 1523/1196/131 mln
09:40 am : The major indices open on a low note. The selling interest is being fueled by a brokerage downgrade of General Electric (GE 28.73, -0.42), record crude prices, and a worse-than-expected regional manufacturing survey.
With regard to GE, the company's stock was downgraded to Neutral from Outperform at JPMorgan. The firm feels that slower economic growth may reduce GE's earnings.DJ30 -73.85 NASDAQ -10.66 SP500 -7.43 NASDAQ Dec/Adv/Vol 1361/837/71 mln NYSE Dec/Adv/Vol 1480/883/52 mln
09:12 am : S&P futures vs fair value: -9.3. Nasdaq futures vs fair value: -15.0.
09:02 am : S&P futures vs fair value: -9.3. Nasdaq futures vs fair value: -13.5. Futures continue to indicate a lower start to the trading session. Crude oil jumped to a record high of $139.89 per barrel, before easing to a gain of 3.3% to $138.22. Weakness in the dollar (-0.6%) and reports of a North Sea rig fire is fueling the buying interest in crude.
08:35 am : S&P futures vs fair value: -7.3. Nasdaq futures vs fair value: -12.8. Futures get a boost on Lehman Brother's earnings results, but then slip on a worse than expected economic release. The June NY Empire Manufacturing Index, a regional manufacturing survey, fell to -8.7, compared to the consensus estimate of -2.0. Lehman Brothers (LEH) reported a loss of $5.13 per share, which was in-line with the firm's preannouncement. Fed Chairman Bernanke will spead at the Senate Finance Committee health Reform Summit at 10:00 ET, and Richmond Fed President Lacker will speak on the economic outlook at 1:00 ET.
08:00 am : S&P futures vs fair value: -4.8. Nasdaq futures vs fair value: -9.5. Stock futures suggest a slightly lower start to the trading day. Lehman Brothers (LEH) will release its second quarter results -- it already preannounced a $2.8 billion loss. AIG (AIG) CEO Martin Sullivan was ousted in response to the company's billions of dollars in losses and flagging stock price. General Electric (GE) was downgraded to Neutral from Overweight at JPMorgan.
06:18 am : S&P futures vs fair value: +1.0. Nasdaq futures vs fair value: -2.0.
06:18 am : FTSE...5812.10...+9.30...+0.2%. DAX...6775.93...+10.61...+0.2%.
06:18 am : Nikkei...14354.37...+380.64...+2.7%. Hang Seng...23029.69...+437.39...+1.9%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
http://biz.yahoo.com/mu/update.html
4:15 pm : The stock market settled unchanged on Monday, as strength in financials offset weakness in consumer staples and telecom. The tech-heavy Nasdaq Composite handily outperformed the broader market with a gain of 0.8% thanks to strength in large-cap names.
Much of the action, however, was outside of the stock market, with crude prices going on massive $7 swing from peak to trough.
Crude oil futures soared 3.7% to an all-time high of $139.89 per barrel in premarket trading -- which occurred despite reports that Saudi Arabia is going to increase its output by 200,000 barrels a day, increasing worldwide supply by 0.2%. There was not a specific catalyst for the advance, although a declining dollar (-0.7%) and reports of a North Sea rig fire played a role in the buying interest. Then on no specific news, crude reversed in the red, settling the day with a loss of 0.8% at $133.82 per barrel.
The financial sector was once again in focus on Monday. Lehman Brothers (LEH 27.09, +1.28) reported a second quarter loss of $2.8 billion, or $5.14 per share -- matching its preannouncement. Lehman's stock rose 5%, with investors encouraged on word that the company cut its mortgage holdings by 20%.
AIG (AIG 34.02, -0.16) ousted its CEO in response to poor handling of the credit market turmoil, which follows in the footsteps of several other major financial firms. AIG said the management change is not in response to its second quarter results, which the company is expected to report sometime in August.
Financials (+1.1%) outperformed throughout the session, and settled the day with the largest advance.
The Nasdaq outperformed with Research In Motion (RIMM 140.96, +8.00) benefiting from several positive brokerage comments and Teva Pharmaceutical (TEVA 44.74, +2.24) advancing after announcing one of its drugs can slow down the progression of Parkinson's disease. Apple (AAPL 176.85, +4.48) also gave the index a boost, with brokerage firm RBC increasing its iPhone sales estimates and speculation over CEO Steve Jobs' health driving the buying interest.
Brokerage downgrades of giants General Electric (GE 28.96, -0.19), Verizon (VZ 36.19, -1.14) and AT&T (T 36.14, -0.54) -- which make up more than 5% of the S&P 500 -- prevented the broader market from making an advance.
Verizon and AT&T were downgraded to Neutral from Buy at UBS. The firm believes economic weakness will hinder results at the telecom giants. The telecom sector (-1.4%) posted the largest loss of the day.
General Electric -- the second largest company within the S&P 500 behind Exxon Mobil (XOM 88.00, -0.36) -- was downgraded to Neutral from Outperform at JPMorgan. The firm feels that slower economic growth may reduce GE's earnings.
In economic news, June manufacturing activity in the New York region contracted by a larger-than-expected amount, according to the NY Empire State Index. The reading slipped 5.5 to -8.7, which fell short of the consensus estimate of -2.0. The stock market responded negatively to the report.DJ30 -38.27 NASDAQ +20.28 NQ100 +1.0% R2K +1.0% SP400 +0.8% SP500 +0.11 NASDAQ Dec/Adv/Vol 1168/1673/1.85 bln NYSE Dec/Adv/Vol 1225/1879/1.16 bln
3:35 pm : The major indices are trading in a tight range, with the Nasdaq and S&P in the green, while the Dow trades with a slight loss.
In overseas trading, European stocks posted a modest decline of 0.4%, while the DJ World Ex-US Index rose 1.1% thanks to strength in Asian markets.
Tomorrow, the economic trading catalysts are going to be May PPI, industrial production, and housing starts and building permits. With regard to earnings, the big report will come from Goldman Sachs (GS 183.35, +5.06) with traders anxious to see if Goldman was again able to navigate through the credit turmoil relatively unscathed.DJ30 -22.15 NASDAQ +19.06 SP500 +0.95 NASDAQ Dec/Adv/Vol 1204/1624/1.56 bln NYSE Dec/Adv/Vol 1202/1906/908 mln
3:00 pm : The S&P 500 is holding a slight gain of 0.3%, as it trades near its session high. The Nasdaq is outperforming with a gain of 0.9%, as strength in large-cap names lifts the tech-heavy Index.
On the NYSE, advancers outpace decliners by 14-to-9 and by 4-to-3 on the Nasdaq.
Shares of waste management companies Allied Waste (AW 13.96, -1.04) and Republic Services (RSG 31.99, -1.86) have been under pressure throughout the session. The two companies confirmed they are in discussion regarding a possible business combination. Allied shareholders would receive 0.45 shares of Republic.DJ30 +2.60 NASDAQ +22.53 SP500 +3.87 NASDAQ Dec/Adv/Vol 1178/1641/1.40 bln NYSE Dec/Adv/Vol 1154/1933/815 mln
2:30 pm : The stock market is in positive territory, but dips off its best level. Strength in financials (+1.3%), energy (+0.5%) and tech (+0.5%) is helping to offset weakness in telecom (-1.8%) and consumer staples (-1.1%).
Crude oil (-0.4% to $134.39) is in the red, but has pared some of its losses. Commodities as a whole are up 1.0%, with strength in gold (+1.5%).DJ30 -19.46 NASDAQ +17.57 SP500 +0.97 NASDAQ Dec/Adv/Vol 1230/1575/1.29 bln NYSE Dec/Adv/Vol 1225/1844/752 mln
2:00 pm : Crude oil is now trading down 0.7% to $133.90 per barrel -- which is $6 less than its all-time high that was reached early this morning. The stock market climbs into positive territory thanks to mostly broad-based buying interest, with notable strength within tech (+0.7%) and other large-cap names within the Nasdaq 100 (+1.1%).
Apple (AAPL 177.01, +4.63) is providing leadership, which is a complete reversal from this morning when it was the main laggard with a loss of 1.9%. Apple has traded in volatile manner the last few session on speculation over the state of CEO Steve Jobs' health. Research In Motion (RIMM 140.37, +7.41) continues to benefit from brokerage upgrades and Teva Pharmaceuticals (TEVA 44.76, +2.26) is boasting a solid gain on positive results on one of its drugs' ability to slow down Parkinson's disease.DJ30 +0.08 NASDAQ +22.17 SP500 +2.96 NASDAQ Dec/Adv/Vol 1227/1569/1.19 bln NYSE Dec/Adv/Vol 1232/1823/696 mln
1:30 pm : The S&P 500 is hovering near the unchanged mark. Four of the ten economic sectors are in positive territory, led by financials (+1.3%).
Crude oil is trading up 0.1% to $135.09 per barrel -- marking a more than $4 retreat from its all-time high. Brokerage firm Oppenheimer noted that the current record high oil prices are due to excessive speculation, and are not justified by supply and demand. The firm believes current fundamentals support oil prices at or below last year's level of roughly $65 per barrel.
The dollar continues to trade with steep losses, down 0.8%.DJ30 -24.18 NASDAQ +15.43 SP500 +0.91 NASDAQ Dec/Adv/Vol 1333/1691/1.05 bln NYSE Dec/Adv/Vol 1333/1691/624 mln
1:05 pm : After momentarily touching the unchanged mark stocks have dipped back into negative territory. The loss is relatively slight, though the session continues to trade with a relatively bearish tone; decliners in the S&P 500 outnumber advancing issues by 3-to-1.
After being upgraded at Oppenheimer, H&R Block (HRB 23.22, +0.90) is trading higher, helping to lift the specialized consumer services subindustry.
Crude continues to trade higher. The commodity is currently trading hands just below $137 per barrel, up $2.DJ30 -49.18 NASDAQ +10.71 SP500 -1.50 NASDAQ Dec/Adv/Vol 1279/1473/974 mln NYSE Dec/Adv/Vol 1337/1661/578 mln
12:30 pm : The major indices continue to trade in mixed fashion. The S&P 500 has traded in negative territory for the overwhelming majority of the session.
The consumer staples sector (-1.5%) extends its losses, falling to session lows. PepsiCo (PEP 65.48, -2.06) is the worst performing name, although there does not appear to be a specific item that accounts for the selling interest. Competitor Coca-Cola (KO 54.17, -1.25) is also facing selling pressure.
The financials sector (+0.6%) is in positive territory, but is well off its high when it was up 2.0%. Goldman Sachs (GS 180.73, +2.44) laid off investment bankers last week in response to the sluggish merger activity, according to Reuters.com.DJ30 -64.49 NASDAQ +8.19 SP500 -3.33 NASDAQ Dec/Adv/Vol 1295/1441/873 mln NYSE Dec/Adv/Vol 1344/1626/514 mln
12:05 pm : At midday, the stock market is posting a slight loss. Gains in financial stocks are helping to offset disappointment over an increase in crude prices and brokerage downgrades of several large-cap stocks.
Meanwhile, the Nasdaq is outperforming with a 0.4% gain as Research In Motion (RIMM 139.20, +6.24) benefits from several positive brokerage comments and Teva Pharmaceutical (TEVA 44.64, +2.14) advances after announcing one of its drugs can slow down the progression of Parkinson's disease.
With regard to financial stocks, Lehman Brothers (LEH 27.19, +1.38) reported a second quarter loss of $2.8 billion, or $5.14 per share -- matching its preannouncement. Lehman's stock is up 5.4%, partially due to news that Lehman cut its mortgage holdings by 20%.
AIG (AIG 33.78, -0.40) ousted its CEO in response to poor handling of the credit market turmoil, which follows in the footsteps of several other major financial firms. AIG said the management change is not in response to its second quarter results, which the company is expected to report sometime in August.
Financials have outperformed throughout the session, leading the market at midday with a gain of 1.0%.
Crude oil futures are up 1.5% at $137.89 per barrel, although they did slip from their all-time high of $139.89 per barrel. Meanwhile, the dollar is down 0.7% against a basket of world currencies. The weakness in the dollar is giving a boost to gold (+1.9% 886.90 per ounce). As a result, the energy (+0.5%) and materials sectors (+0.5%) have garnered some buying interest.
Several notable brokerage downgrades are preventing the broader market from advancing.
Telecom (-2.1%) is under pressure after Verizon (VZ 36.37, -0.96) and AT&T (T 35.89, -0.79) were downgraded to Neutral from Buy at UBS.
General Electric (GE 28.91, -0.24) -- the second largest company within the S&P 500 -- was downgraded to Neutral from Outperform at JPMorgan. The firm feels that slower economic growth may reduce GE's earnings.
In economic news, June manufacturing activity in the New York region contracted by a larger-than-expected amount, according to the NY Empire State Index. The reading slipped 5.5 to -8.7, which fell short of the consensus estimate of -2.0. The stock market responded negatively to the report.DJ30 -51.78 NASDAQ -2.88 SP500 +8.57 NASDAQ Dec/Adv/Vol 1254/1453/780 mln NYSE Dec/Adv/Vol 1294/1658/458 mln
11:30 am : The recovery effort fades, as the S&P 500 joins the Dow in the red in a broad-based pullback. Crude (+1.7% to $137.13) continues to give up some of its advance, while the Dollar Index (-0.6%) manages to pare some of its losses.
The Dow has remained in negative territory throughout the session. Dow components Verizon (VZ 36.32, -1.01), AT&T (T 35.65, -1.03) and General Electric (GE 28.74, -0.41) are all under pressure after being downgraded by brokerage firms.DJ30 -49.07 NASDAQ +10.74 SP500 -2.35 NASDAQ Dec/Adv/Vol 1223/1447/672 mln NYSE Dec/Adv/Vol 1284/1630/395 mln
11:00 am : The S&P 500 climbs to the unchanged mark, as the financial sector (+1.9%) hits its best level of the session. Five of the ten economic sectors are now in positive territory. The Nasdaq is outperforming as it posts a modest gain.
Within the Nasdaq, maker of BlackBerry devices Research In Motion (RIMM 137.65, +4.69) is leading the way on several positive brokerage comments. Teva Pharmaceutical (TEVA 44.36, +2.01) is showing strength after announcing that a phase III study showed Azilect can slow down the progression of Parkinson's disease. Apple (AAPL 170.25, -2.12) is acting as the Nasdaq's limiting factor.DJ30 -17.02 NASDAQ +15.78 SP500 +0.63 NASDAQ Dec/Adv/Vol 1156/1439/518 mln NYSE Dec/Adv/Vol 1249/1606/304 mln
10:30 am : The stock market is in the red, although it is trading at its best level of the session as the financial sector (+1.4%) rallies. Lehman Brothers (LEH 27.51, +1.70) is leading the push higher, after reporting its second quarter results earlier this morning. The firm lost $2.8 billion in the second quarter, or $5.14 per share, matching its preannouncement.
Telecom (-2.2%) is the worst-performing sector this session, and is the second worst-performing this year with a loss of 16% -- compared to financials year-to-date decline of 20%. The selling interest this session is driven by downgrades of Verizon (VZ 36.24, -1.09) and AT&T (T 35.80, -0.88) to Neutral from Buy at UBS.DJ30 -50.97 NASDAQ -0.09 SP500 -3.28 NASDAQ Dec/Adv/Vol 1354/1186/372 mln NYSE Dec/Adv/Vol 1434/1367/224 mln
10:00 am : Buyers are not showing much interest in the early-going as the major indices post modest losses. Eight of the ten economic sectors are in negative territory, led by weakness in telecom (-2.3%) and healthcare (-1.0%). Financials (+0.2%) and energy (+0.5%) are the best-performing sectors.
Although financials are outperforming, insurance giant AIG (AIG 34.02, -0.16) is posting a loss of 0.5%. The Dow component ousted its CEO in response to the company's poor performance and handling of the credit market turmoil. AIG said the management change is not in response to its second quarter results, which the company is expected to report sometime in August.
Crude oil futures are posting a substantial gain of 2.2% at $137.89 per barrel, although they did slip from their all-time high of $139.89 per barrel. Meanwhile, the dollar hits session lows, falling 0.9% against a basket of world currencies. The weakness in the dollar is giving a boost to gold (+2.0% to $887.80).DJ30 -75.07 NASDAQ -5.45 SP500 -5.97 NASDAQ Dec/Adv/Vol 1312/1078/217 mln NYSE Dec/Adv/Vol 1523/1196/131 mln
09:40 am : The major indices open on a low note. The selling interest is being fueled by a brokerage downgrade of General Electric (GE 28.73, -0.42), record crude prices, and a worse-than-expected regional manufacturing survey.
With regard to GE, the company's stock was downgraded to Neutral from Outperform at JPMorgan. The firm feels that slower economic growth may reduce GE's earnings.DJ30 -73.85 NASDAQ -10.66 SP500 -7.43 NASDAQ Dec/Adv/Vol 1361/837/71 mln NYSE Dec/Adv/Vol 1480/883/52 mln
09:12 am : S&P futures vs fair value: -9.3. Nasdaq futures vs fair value: -15.0.
09:02 am : S&P futures vs fair value: -9.3. Nasdaq futures vs fair value: -13.5. Futures continue to indicate a lower start to the trading session. Crude oil jumped to a record high of $139.89 per barrel, before easing to a gain of 3.3% to $138.22. Weakness in the dollar (-0.6%) and reports of a North Sea rig fire is fueling the buying interest in crude.
08:35 am : S&P futures vs fair value: -7.3. Nasdaq futures vs fair value: -12.8. Futures get a boost on Lehman Brother's earnings results, but then slip on a worse than expected economic release. The June NY Empire Manufacturing Index, a regional manufacturing survey, fell to -8.7, compared to the consensus estimate of -2.0. Lehman Brothers (LEH) reported a loss of $5.13 per share, which was in-line with the firm's preannouncement. Fed Chairman Bernanke will spead at the Senate Finance Committee health Reform Summit at 10:00 ET, and Richmond Fed President Lacker will speak on the economic outlook at 1:00 ET.
08:00 am : S&P futures vs fair value: -4.8. Nasdaq futures vs fair value: -9.5. Stock futures suggest a slightly lower start to the trading day. Lehman Brothers (LEH) will release its second quarter results -- it already preannounced a $2.8 billion loss. AIG (AIG) CEO Martin Sullivan was ousted in response to the company's billions of dollars in losses and flagging stock price. General Electric (GE) was downgraded to Neutral from Overweight at JPMorgan.
06:18 am : S&P futures vs fair value: +1.0. Nasdaq futures vs fair value: -2.0.
06:18 am : FTSE...5812.10...+9.30...+0.2%. DAX...6775.93...+10.61...+0.2%.
06:18 am : Nikkei...14354.37...+380.64...+2.7%. Hang Seng...23029.69...+437.39...+1.9%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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