AI
Wednesday, June 18, 2008 6:37:02 PM
Market Update 080618
http://biz.yahoo.com/mu/update.html
4:25 pm : The major indices settled with steep losses on Wednesday, after traders digested mixed earnings reports, news that another bank is raising capital and volatile crude prices.
On the earnings front, FedEx (FDX 82.72, -1.61) reported quarterly earnings that missed the consensus estimate. The Memphis, Tenn.-based company issued fiscal year 2009 earnings guidance well below expectations, citing sluggish U.S. demand and record energy prices.
Morgan Stanley's (MS 40.79, +0.20) second quarter earnings per share fell 61% year-over-year, although the results were good enough to top Wall Street's low expectations. However, its revenue fell well short of estimates.
One day after Goldman Sachs said U.S. banks may need to raise as much as $65 billion in additional capital, regional bank Fifth Third Bancorp (FITB 9.26, -3.47) announced plans to shore up its balance sheet. Specifically, the Ohio-based bank is going to raise $1 billion in fresh capital, sell $1 billion in assets and cut its quarterly dividend by 66% to $0.15 per share.
Financials (-1.2%) fell as much as 2.5%, hitting their lowest level since 2003. The sector managed to stage a modest recovery, cutting its loss in half by the end of the day. Goldman Sachs (GS 183.05, +3.61) provided leadership, after its stock advanced in response to several positive brokerage comments.
Crude oil rose 1.7% to $136.30 per barrel after trading in a volatile manner throughout the session. The government's weekly energy report showed a smaller-than-expected drop in crude inventories, and an unexpected decline in gasoline stockpiles.
Weakness was broad-based on Wednesday, with all of the ten economic sectors posting a loss, and 78% of S&P 500 components settling the day in the red. However, there were several positive corporate items.
Pharmaceutical giant Pfizer (PFE 17.79, +0.07) said its cholesterol drug Lipitor will not face generic competition for an extra 20 months after reaching a settlement with Ranbaxy Laboratories. The agreement will have a significant impact on Pfizer's earnings, considering in 2007 Lipitor -- the world's best selling drug -- accounted for $12.6 billion of Pfizer's $48.4 billion in revenue.
General Mills (GIS 62.68, +1.95) saw some buying interest after strong sales prompted the company to issue upside earnings guidance for its latest quarter and for fiscal year 2008.
Despite increasing energy costs, trucking company YRC Worldwide (YRCW 17.68, +0.90) reaffirmed its second quarter guidance, giving its shares a 5% boost. Its strength helped the Dow Transportation Average outperform with a 0.3% gain, despite the dour outlook from FedEx.
Boeing (BA 74.68, +0.30) will get another chance to bid on the aerial refueling tanker contract for the Air Force after the Government Accountability Office declared the Air Force made a "number of significant errors." This is a blow to Northrop Grumman (NOC 70.00, -1.09), the original winner of the contract. The deal could be worth up to $40 billion.DJ30 -131.24 NASDAQ -28.02 NQ100 -1.1% R2K -0.8% SP400 -0.8% SP500 -13.12 NASDAQ Adv/Vol/Dec 790/2.06 bln/2050 NYSE Adv/Vol/Dec 850/1.28 bln/2246
3:30 pm : The major indices are recovering lost ground in a broad-based move. The energy sector climbs to session highs, as it posts a modest gain of 0.3%. Financials trade near their best levels, with a decline of 0.3%.
Semiconductor companies are under selling pressure, with the SOX down 2.2%. There does not appear to be a specific catalyst for the decline. All 18 companies within the SOX are posting a decline.
Tomorrow, the market will digest the initial claims, leading indicators and Philadelphia Fed economic readings. There are seven companies confirmed to report earnings, including Carnival (CCL 35.05, -0.46) and Circuit City (CC 4.32, +0.02).DJ30 -95.01 NASDAQ -18.17 SP500 -8.51 NASDAQ Adv/Vol/Dec 885/1.69 bln/1950 NYSE Adv/Vol/Dec 898/979 mln/2201
3:00 pm : The stock market climbs off its worst level, but continues to trade with a steep loss. Market breadth is bearish, with decliners outpacing advancers by 13-to-4 on the NYSE and by 14-to-5 on the Nasdaq. Volume is on the light side.
Financials are down 0.7%, well off their low of -2.5%.
Treasuries are seeing some buying interest this session, with the 10-year note up 14 ticks, sending its yield down to 4.14%.DJ30 -112.84 NASDAQ -23.46 SP500 -11.31 NASDAQ Adv/Vol/Dec 738/1.47 bln/2075 NYSE Adv/Vol/Dec 732/858 mln/2371
2:30 pm : The stock market spikes toward session lows. At the same time, crude oil futures climb to a fresh session, up 2.00% to $136.67. Crude prices are down 2.3% from their all-time high of $139.89, which was reached on Monday.
All ten economic sectors are in negative territory, with six sectors down more than 1%. The energy sector is outperforming on a relative basis, thanks to the spike in crude prices.DJ30 -144.92 NASDAQ -33.49 SP500 -15.57 NASDAQ Adv/Vol/Dec 690/1.39 mln/2119 NYSE Adv/Vol/Dec 659/812 mln/2421
2:00 pm : The stock market stabilizes, as it trades near its session low. Crude is up 1.1% to $135.50, hitting a fresh session high.
As crude climbs, the Amex Airline Index (-4.6%) falls. Delta Air Lines (DAL 5.38, -0.35) announced that it is cutting domestic capacity by 13% in the second half of 2008, in response to high jet fuel prices. Northwest Airlines (NWA 6.32, -0.46) announced similar measures this morning. In April, Delta and Northwest announced plans to merge the two airlines in an all-stock transaction.DJ30 -128.56 NASDAQ -28.21 SP500 -13.85 NASDAQ Adv/Vol/Dec 736/1.25 bln/2064 NYSE Adv/Vol/Dec 721/732 mln/2356
1:35 pm : Crude oil rebounds to a gain of 0.5% at $134.70 per barrel, after being down as much as 1.6%. Meanwhile, the S&P 500 falls to a fresh session low, with all ten economic sectors in negative territory.
The worst-performing industry groups are regional banks (-6.1%), auto manufacturing (-5.1%) and tires & rubber (-4.0%). The best-performing groups are coal & consumable fuels (+3.2%), railroads (+1.4%) and brewers (+1.2%).
Boeing (BA 75.75, +1.37) won its tanker contract protest, with the Government Accountability Office deciding that the Air Force should make a new decision on what company will build its aerial refueling tankers. This is a blow to Northrop Grumman (NOC 69.91, -1.18), which was the original winner of the contract. The deal could be worth up to $40 billion.DJ30 -124.24 NASDAQ -31.32 SP500 -14.58 NASDAQ Adv/Vol/Dec 724/1.15 bln/2053 NYSE Adv/Vol/Dec 675/677 mln/2382
1:00 pm : Stocks continue to falter, moving further downward. Tech stalwarts Apple (AAPL 179.44, -1.99) and Google (GOOG 562.04) are weighing on the tech rich Nasdaq, which is down 1.0% this session. Index counterparts are also down markedly.
The S&P Retailing Index is showing considerable weakness this session. Key laggards in the sector include Target (TGT 51.37, -1.08) and JC Penney (JCP 36.83, -1.82), along with Home Depot (HD 26.51, -0.36) and Lowe's Companies (LOW 23.05, -0.39).DJ30 -103.97 NASDAQ -23.46 SP500 -10.94 NASDAQ Adv/Vol/Dec 776/1.03 bln/1974 NYSE Adv/Vol/Dec 731/609 mln/2296
12:30 pm : The recovery effort fades as the stock market goes on a broad-based retreat. The major indices are well off their worst levels, but are posting significant losses.
The S&P 500 Retailing Index (-1.5%) is under selling pressure. OfficeMax (OMX 16.58, -0.17) said it is eliminating 2,700 positions, including 900 managers, in an attempt to streamline operations, according to ChicagoTribune.com. The job cuts are equivalent to roughly 7.5% of the company's employees. OMX hit a fresh 52-week low this session.
European markets ended their session with steep losses, with the DJ Euro Stoxx falling 1.3%. Financial and energy companies were hit especially hard.DJ30 -91.10 NASDAQ -20.43 SP500 -9.50 NASDAQ Adv/Vol/Dec 834/913 mln/1869 NYSE Adv/Vol/Dec 808/546 mln/2191
12:05 pm : The stock market is trading with modest losses at midday. The S&P 500 cut its decline in half as the financial sector pared some of its losses. Investor sentiment has been shaky throughout the session following disappointing earnings reports and news that another bank is raising capital.
On the earnings front, FedEx (FDX 82.14, -2.19) issued fiscal year 2009 earnings guidance well below expectations, citing sluggish demand and record energy prices. The Tennessee-based company's earnings missed analyst expectations for its latest quarter.
Morgan Stanley (MS 39.14, -1.45) reported a 61% year-over-year drop in second quarter earnings per share, but that was good enough to top expectations. However, shares are under pressure after revenue fell well short of estimates.
One day after Goldman Sachs said U.S. banks may need to raise as much as $65 billion in additional capital, regional bank Fifth Third Bancorp (FITB 10.99, -1.75) announced plans to shore up its balance sheet. Specifically, the Ohio-based bank is going to raise $1 billion in fresh capital, sell $1 billion in assets and cut its quarterly dividend by 66% to $0.15 per share.
Financials fell 2.5%, hitting their lowest level since 2003. Just before the midday mark, the sector pared its loss to only 0.5%. Goldman Sachs (GS 182.93, +3.49) is aiding in the recovery effort, as the stock rises in response to several positive brokerage comments.
Although weakness is broad-based with nine of the ten economic sectors in the red, not all corporate news was negative.
Shares of pharmaceutical giant Pfizer (PFE 18.12, +0.40) are up 2.3% after the company reached a settlement with Ranbaxy Laboratories over the sale of generic versions of the cholesterol drug Lipitor. Under the agreement, Pfizer will not face generic competition until November 2011 -- an extra 20 months. The agreement will have a significant impact on Pfizer's earnings, considering in 2007 Lipitor -- the world's best selling drug -- accounted for $12.6 billion of Pfizer's $48.4 billion in revenue.
General Mills (GIS 62.78, +2.05) is seeing some buying interest after strong sales prompted the company to issue upside earnings guidance for its latest quarter and for fiscal year 2008.
Despite record energy costs, trucking company YRC Worldwide (YRCW 17.95, +1.18) is up 7% after reaffirming its second quarter guidance. Its strength is helping the Dow Transportation Average outperform with a 0.8% gain, despite FedEx's dour outlook.
With regard to energy costs, crude oil futures are down 1.0% to $132.72 per barrel. The government reported a smaller-than-expected drop in crude inventories. DJ30 -62.77 NASDAQ -11.93 SP500 -7.08 NASDAQ Adv/Vol/Dec 944/842 mln/1760 NYSE Adv/Vol/Dec 859/507 mln/2139
11:30 am : The major indices bounce off their session lows, although losses remain steep. Crude is down 1.2% to $132.43 per barrel after trading in choppy fashion following the government's weekly energy report.
The DJ Transportation Average is up 0.6%, despite weakness in FedEx (FDX 82.00, -2.33) and UPS (UPS 65.86, -1.48). Union Pacific (UNP 75.95, +3.48) is leading the way. The rail company cut its second quarter earnings forecast due to the Midwest storms, but the lower profit estimate was better than feared. Meanwhile, trucking company YRC Worldwide (YRCW 18.12, +1.35) is up 8% after reaffirming its second quarter guidance.DJ30 -92.49 NASDAQ -25.19 SP500 -11.55 NASDAQ Adv/Vol/Dec 723/697 mln/1952 NYSE Adv/Vol/Dec 705/422 mln/2245
11:05 am : The major indices fall to session lows in broad-based weakness. The financial (-2.1%), consumer discretionary (-1.87%) and tech (-1.4%) sectors are the main laggards. The sectors are acting as a major drag, as they make up roughly 40% of the S&P 500.
The financial sector fell to a fresh multi-year low this session. Financials also slipped to the third largest sector within the S&P 500, overtaken by energy (-1.0%) -- financials gave up the top spot to tech earlier this month.
Shares of MF Global (MF 8.65, -4.61) -- a broker of exchange traded futures -- have tumbled 35% after the company announced it is raising $300 million in capital to repay a short term loan that is due in December 2008.DJ30 -120.99 NASDAQ -32.35 SP500 -14.02 NASDAQ Adv/Vol/Dec 639/560 mln/1996 NYSE Adv/Vol/Dec 613/348 mln/2302
10:35 am : Just hitting the wires, the Department of Energy said crude inventories for the week ended June 13 fell 1.24 million barrels, a smaller decline than the expected 1.75 million decrease. Just prior to the report, crude was trading near the unchanged mark at $134.08.
The stock market is trading with significant losses, near session lows, with nine of the ten major sectors in the red.
The consumer discretionary sector (-1.7%) is struggling, with 82 of its 86 components in the red. Comcast (CMCSA 20.68, -0.43) and Time Warner (TWX 14.63, -0.39) are the main laggards.
Conversely, the consumer staples sector (-0.4%) is outperforming on a relative basis. The sector is benefiting from its defensive nature, and a 3% rise in shares of General Mills (GIS 62.52, +1.79). General Mills issued upside guidance for its latest quarter and for its fiscal year 2008.DJ30 -87.60 NASDAQ -22.22 SP500 -10.44 NASDAQ Adv/Vol/Dec 756/326 mln/1755 NYSE Adv/Vol/Dec 760/192 mln/2040
10:00 am : The major indices extend their opening losses in mostly broad-based weakness. Nine of the ten sectors are trending lower, with financials (-2.1%) and consumer discretionary (-1.3%) under the most selling pressure.
The materials sector (+0.1%) is outperforming as gold climbs +0.7% and commodities rise 0.4%. Crude oil is up 0.2%, and will go on the move at 10:35 ET with the release of the government's weekly energy inventory statistics.
Shares of pharmaceutical giant Pfizer (PFE 18.26, +0.54) are up 3% after the company reached a settlement with Ranbaxy Laboratories over the sale of generic versions of the cholesterol drug Lipitor. Under the agreement, Pfizer will not face generic competition until November 2011 -- an extra 20 months. The agreement will have a significant impact on Pfizer's earnings, considering in 2007 Lipitor -- the world's best selling drug -- accounted for $12.6 billion of Pfizer's $48.4 billion in revenue.
The health care sector is outperforming on a relative basis, as it trades near the unchanged mark.DJ30 -70.59 NASDAQ -20.02 SP500 -9.62 NASDAQ Adv/Vol/Dec 881/121 mln/1395 NYSE Adv/Vol/Dec 846/93 mln/1796
09:40 am : The major indices open in negative territory on disappointing earnings and further signs that the financial market turmoil is not over.
On the earnings front, FedEx (FDX 82.44, -1.94) issued fiscal year 2009 earnings guidance well below expectations, citing sluggish demand and record energy prices. The Tennessee-based company's earnings missed analyst expectations for its latest quarter.
Morgan Stanley (MS 38.19, -2.40) reported a 61% year-over-year drop in second quarter earnings per share, but that was good enough to top expectations. However, shares are under pressure after revenue fell well short of estimates.
One day after Goldman Sachs said U.S. banks may need to raise as much as $65 billion in additional capital, regional bank Fifth Third Bancorp (FITB 10.91, -1.82) announced plans to shore up its balance sheet. Specifically, the Ohio-based bank is going to raise $1 billion in fresh capital, sell $1 billion in assets and cut its quarterly dividend by 66% to $0.15 per share.DJ30 -42.66 NASDAQ -13.36 SP500 -6.39
09:14 am : S&P futures vs fair value: -10.0. Nasdaq futures vs fair value: -14.5.
09:03 am : S&P futures vs fair value: -9.8. Nasdaq futures vs fair value: -13.5. Futures indicate a lower start to the trading day. Pfizer (PFE) is bucking the negative trend this morning, with shares up 5% in premarket trading. Pfizer will not have generic competition for the world's best selling drug Lipitor for 20 more months after settling a lawsuit with generics manufacturer Ranbaxy Laboratories.
08:30 am : S&P futures vs fair value: -10.3. Nasdaq futures vs fair value: -14.5. Futures are trading slightly above session lows. Futures were already pointing to a negative start, and then extended their losses following the release of earnings reports from FedEx (FDX) and Morgan Stanley (MS). Northwest Airlines was the latest company to take action because of the record high fuel costs. The airline is reducing fourth quarter 2008 capacity by 8.5% to 9.5% compared to the previous year.
08:00 am : S&P futures vs fair value: -9.7. Nasdaq futures vs fair value: -14.5. Stock futures suggest a negative start to the trading day. Shares of FedEx (FDX) are under pressure in premarket trading after the company reported lower than expected earnings, and issued full year guidance that is well below expectations. Fifth Third Bancorp (FITB) announced its is raising $1 billion in capital and cutting its dividend in an effort to shore up its balance sheet. Morgan Stanley (MS) reported a 61% year-over-year drop in second quarter earnings per share, but that was good enough to top expectations. Crude oil is trading up 0.4% ahead of the governments weekly energy report.
06:28 am : S&P futures vs fair value: -2.7. Nasdaq futures vs fair value: -1.3.
06:27 am : FTSE...5782.30...-79.60...-1.4%. DAX...6768.88...-27.28...-0.4%.
06:27 am : Nikkei...14452.82...+104.45...+0.7%. Hang Seng...23325.80...+267.81...+1.2%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
http://biz.yahoo.com/mu/update.html
4:25 pm : The major indices settled with steep losses on Wednesday, after traders digested mixed earnings reports, news that another bank is raising capital and volatile crude prices.
On the earnings front, FedEx (FDX 82.72, -1.61) reported quarterly earnings that missed the consensus estimate. The Memphis, Tenn.-based company issued fiscal year 2009 earnings guidance well below expectations, citing sluggish U.S. demand and record energy prices.
Morgan Stanley's (MS 40.79, +0.20) second quarter earnings per share fell 61% year-over-year, although the results were good enough to top Wall Street's low expectations. However, its revenue fell well short of estimates.
One day after Goldman Sachs said U.S. banks may need to raise as much as $65 billion in additional capital, regional bank Fifth Third Bancorp (FITB 9.26, -3.47) announced plans to shore up its balance sheet. Specifically, the Ohio-based bank is going to raise $1 billion in fresh capital, sell $1 billion in assets and cut its quarterly dividend by 66% to $0.15 per share.
Financials (-1.2%) fell as much as 2.5%, hitting their lowest level since 2003. The sector managed to stage a modest recovery, cutting its loss in half by the end of the day. Goldman Sachs (GS 183.05, +3.61) provided leadership, after its stock advanced in response to several positive brokerage comments.
Crude oil rose 1.7% to $136.30 per barrel after trading in a volatile manner throughout the session. The government's weekly energy report showed a smaller-than-expected drop in crude inventories, and an unexpected decline in gasoline stockpiles.
Weakness was broad-based on Wednesday, with all of the ten economic sectors posting a loss, and 78% of S&P 500 components settling the day in the red. However, there were several positive corporate items.
Pharmaceutical giant Pfizer (PFE 17.79, +0.07) said its cholesterol drug Lipitor will not face generic competition for an extra 20 months after reaching a settlement with Ranbaxy Laboratories. The agreement will have a significant impact on Pfizer's earnings, considering in 2007 Lipitor -- the world's best selling drug -- accounted for $12.6 billion of Pfizer's $48.4 billion in revenue.
General Mills (GIS 62.68, +1.95) saw some buying interest after strong sales prompted the company to issue upside earnings guidance for its latest quarter and for fiscal year 2008.
Despite increasing energy costs, trucking company YRC Worldwide (YRCW 17.68, +0.90) reaffirmed its second quarter guidance, giving its shares a 5% boost. Its strength helped the Dow Transportation Average outperform with a 0.3% gain, despite the dour outlook from FedEx.
Boeing (BA 74.68, +0.30) will get another chance to bid on the aerial refueling tanker contract for the Air Force after the Government Accountability Office declared the Air Force made a "number of significant errors." This is a blow to Northrop Grumman (NOC 70.00, -1.09), the original winner of the contract. The deal could be worth up to $40 billion.DJ30 -131.24 NASDAQ -28.02 NQ100 -1.1% R2K -0.8% SP400 -0.8% SP500 -13.12 NASDAQ Adv/Vol/Dec 790/2.06 bln/2050 NYSE Adv/Vol/Dec 850/1.28 bln/2246
3:30 pm : The major indices are recovering lost ground in a broad-based move. The energy sector climbs to session highs, as it posts a modest gain of 0.3%. Financials trade near their best levels, with a decline of 0.3%.
Semiconductor companies are under selling pressure, with the SOX down 2.2%. There does not appear to be a specific catalyst for the decline. All 18 companies within the SOX are posting a decline.
Tomorrow, the market will digest the initial claims, leading indicators and Philadelphia Fed economic readings. There are seven companies confirmed to report earnings, including Carnival (CCL 35.05, -0.46) and Circuit City (CC 4.32, +0.02).DJ30 -95.01 NASDAQ -18.17 SP500 -8.51 NASDAQ Adv/Vol/Dec 885/1.69 bln/1950 NYSE Adv/Vol/Dec 898/979 mln/2201
3:00 pm : The stock market climbs off its worst level, but continues to trade with a steep loss. Market breadth is bearish, with decliners outpacing advancers by 13-to-4 on the NYSE and by 14-to-5 on the Nasdaq. Volume is on the light side.
Financials are down 0.7%, well off their low of -2.5%.
Treasuries are seeing some buying interest this session, with the 10-year note up 14 ticks, sending its yield down to 4.14%.DJ30 -112.84 NASDAQ -23.46 SP500 -11.31 NASDAQ Adv/Vol/Dec 738/1.47 bln/2075 NYSE Adv/Vol/Dec 732/858 mln/2371
2:30 pm : The stock market spikes toward session lows. At the same time, crude oil futures climb to a fresh session, up 2.00% to $136.67. Crude prices are down 2.3% from their all-time high of $139.89, which was reached on Monday.
All ten economic sectors are in negative territory, with six sectors down more than 1%. The energy sector is outperforming on a relative basis, thanks to the spike in crude prices.DJ30 -144.92 NASDAQ -33.49 SP500 -15.57 NASDAQ Adv/Vol/Dec 690/1.39 mln/2119 NYSE Adv/Vol/Dec 659/812 mln/2421
2:00 pm : The stock market stabilizes, as it trades near its session low. Crude is up 1.1% to $135.50, hitting a fresh session high.
As crude climbs, the Amex Airline Index (-4.6%) falls. Delta Air Lines (DAL 5.38, -0.35) announced that it is cutting domestic capacity by 13% in the second half of 2008, in response to high jet fuel prices. Northwest Airlines (NWA 6.32, -0.46) announced similar measures this morning. In April, Delta and Northwest announced plans to merge the two airlines in an all-stock transaction.DJ30 -128.56 NASDAQ -28.21 SP500 -13.85 NASDAQ Adv/Vol/Dec 736/1.25 bln/2064 NYSE Adv/Vol/Dec 721/732 mln/2356
1:35 pm : Crude oil rebounds to a gain of 0.5% at $134.70 per barrel, after being down as much as 1.6%. Meanwhile, the S&P 500 falls to a fresh session low, with all ten economic sectors in negative territory.
The worst-performing industry groups are regional banks (-6.1%), auto manufacturing (-5.1%) and tires & rubber (-4.0%). The best-performing groups are coal & consumable fuels (+3.2%), railroads (+1.4%) and brewers (+1.2%).
Boeing (BA 75.75, +1.37) won its tanker contract protest, with the Government Accountability Office deciding that the Air Force should make a new decision on what company will build its aerial refueling tankers. This is a blow to Northrop Grumman (NOC 69.91, -1.18), which was the original winner of the contract. The deal could be worth up to $40 billion.DJ30 -124.24 NASDAQ -31.32 SP500 -14.58 NASDAQ Adv/Vol/Dec 724/1.15 bln/2053 NYSE Adv/Vol/Dec 675/677 mln/2382
1:00 pm : Stocks continue to falter, moving further downward. Tech stalwarts Apple (AAPL 179.44, -1.99) and Google (GOOG 562.04) are weighing on the tech rich Nasdaq, which is down 1.0% this session. Index counterparts are also down markedly.
The S&P Retailing Index is showing considerable weakness this session. Key laggards in the sector include Target (TGT 51.37, -1.08) and JC Penney (JCP 36.83, -1.82), along with Home Depot (HD 26.51, -0.36) and Lowe's Companies (LOW 23.05, -0.39).DJ30 -103.97 NASDAQ -23.46 SP500 -10.94 NASDAQ Adv/Vol/Dec 776/1.03 bln/1974 NYSE Adv/Vol/Dec 731/609 mln/2296
12:30 pm : The recovery effort fades as the stock market goes on a broad-based retreat. The major indices are well off their worst levels, but are posting significant losses.
The S&P 500 Retailing Index (-1.5%) is under selling pressure. OfficeMax (OMX 16.58, -0.17) said it is eliminating 2,700 positions, including 900 managers, in an attempt to streamline operations, according to ChicagoTribune.com. The job cuts are equivalent to roughly 7.5% of the company's employees. OMX hit a fresh 52-week low this session.
European markets ended their session with steep losses, with the DJ Euro Stoxx falling 1.3%. Financial and energy companies were hit especially hard.DJ30 -91.10 NASDAQ -20.43 SP500 -9.50 NASDAQ Adv/Vol/Dec 834/913 mln/1869 NYSE Adv/Vol/Dec 808/546 mln/2191
12:05 pm : The stock market is trading with modest losses at midday. The S&P 500 cut its decline in half as the financial sector pared some of its losses. Investor sentiment has been shaky throughout the session following disappointing earnings reports and news that another bank is raising capital.
On the earnings front, FedEx (FDX 82.14, -2.19) issued fiscal year 2009 earnings guidance well below expectations, citing sluggish demand and record energy prices. The Tennessee-based company's earnings missed analyst expectations for its latest quarter.
Morgan Stanley (MS 39.14, -1.45) reported a 61% year-over-year drop in second quarter earnings per share, but that was good enough to top expectations. However, shares are under pressure after revenue fell well short of estimates.
One day after Goldman Sachs said U.S. banks may need to raise as much as $65 billion in additional capital, regional bank Fifth Third Bancorp (FITB 10.99, -1.75) announced plans to shore up its balance sheet. Specifically, the Ohio-based bank is going to raise $1 billion in fresh capital, sell $1 billion in assets and cut its quarterly dividend by 66% to $0.15 per share.
Financials fell 2.5%, hitting their lowest level since 2003. Just before the midday mark, the sector pared its loss to only 0.5%. Goldman Sachs (GS 182.93, +3.49) is aiding in the recovery effort, as the stock rises in response to several positive brokerage comments.
Although weakness is broad-based with nine of the ten economic sectors in the red, not all corporate news was negative.
Shares of pharmaceutical giant Pfizer (PFE 18.12, +0.40) are up 2.3% after the company reached a settlement with Ranbaxy Laboratories over the sale of generic versions of the cholesterol drug Lipitor. Under the agreement, Pfizer will not face generic competition until November 2011 -- an extra 20 months. The agreement will have a significant impact on Pfizer's earnings, considering in 2007 Lipitor -- the world's best selling drug -- accounted for $12.6 billion of Pfizer's $48.4 billion in revenue.
General Mills (GIS 62.78, +2.05) is seeing some buying interest after strong sales prompted the company to issue upside earnings guidance for its latest quarter and for fiscal year 2008.
Despite record energy costs, trucking company YRC Worldwide (YRCW 17.95, +1.18) is up 7% after reaffirming its second quarter guidance. Its strength is helping the Dow Transportation Average outperform with a 0.8% gain, despite FedEx's dour outlook.
With regard to energy costs, crude oil futures are down 1.0% to $132.72 per barrel. The government reported a smaller-than-expected drop in crude inventories. DJ30 -62.77 NASDAQ -11.93 SP500 -7.08 NASDAQ Adv/Vol/Dec 944/842 mln/1760 NYSE Adv/Vol/Dec 859/507 mln/2139
11:30 am : The major indices bounce off their session lows, although losses remain steep. Crude is down 1.2% to $132.43 per barrel after trading in choppy fashion following the government's weekly energy report.
The DJ Transportation Average is up 0.6%, despite weakness in FedEx (FDX 82.00, -2.33) and UPS (UPS 65.86, -1.48). Union Pacific (UNP 75.95, +3.48) is leading the way. The rail company cut its second quarter earnings forecast due to the Midwest storms, but the lower profit estimate was better than feared. Meanwhile, trucking company YRC Worldwide (YRCW 18.12, +1.35) is up 8% after reaffirming its second quarter guidance.DJ30 -92.49 NASDAQ -25.19 SP500 -11.55 NASDAQ Adv/Vol/Dec 723/697 mln/1952 NYSE Adv/Vol/Dec 705/422 mln/2245
11:05 am : The major indices fall to session lows in broad-based weakness. The financial (-2.1%), consumer discretionary (-1.87%) and tech (-1.4%) sectors are the main laggards. The sectors are acting as a major drag, as they make up roughly 40% of the S&P 500.
The financial sector fell to a fresh multi-year low this session. Financials also slipped to the third largest sector within the S&P 500, overtaken by energy (-1.0%) -- financials gave up the top spot to tech earlier this month.
Shares of MF Global (MF 8.65, -4.61) -- a broker of exchange traded futures -- have tumbled 35% after the company announced it is raising $300 million in capital to repay a short term loan that is due in December 2008.DJ30 -120.99 NASDAQ -32.35 SP500 -14.02 NASDAQ Adv/Vol/Dec 639/560 mln/1996 NYSE Adv/Vol/Dec 613/348 mln/2302
10:35 am : Just hitting the wires, the Department of Energy said crude inventories for the week ended June 13 fell 1.24 million barrels, a smaller decline than the expected 1.75 million decrease. Just prior to the report, crude was trading near the unchanged mark at $134.08.
The stock market is trading with significant losses, near session lows, with nine of the ten major sectors in the red.
The consumer discretionary sector (-1.7%) is struggling, with 82 of its 86 components in the red. Comcast (CMCSA 20.68, -0.43) and Time Warner (TWX 14.63, -0.39) are the main laggards.
Conversely, the consumer staples sector (-0.4%) is outperforming on a relative basis. The sector is benefiting from its defensive nature, and a 3% rise in shares of General Mills (GIS 62.52, +1.79). General Mills issued upside guidance for its latest quarter and for its fiscal year 2008.DJ30 -87.60 NASDAQ -22.22 SP500 -10.44 NASDAQ Adv/Vol/Dec 756/326 mln/1755 NYSE Adv/Vol/Dec 760/192 mln/2040
10:00 am : The major indices extend their opening losses in mostly broad-based weakness. Nine of the ten sectors are trending lower, with financials (-2.1%) and consumer discretionary (-1.3%) under the most selling pressure.
The materials sector (+0.1%) is outperforming as gold climbs +0.7% and commodities rise 0.4%. Crude oil is up 0.2%, and will go on the move at 10:35 ET with the release of the government's weekly energy inventory statistics.
Shares of pharmaceutical giant Pfizer (PFE 18.26, +0.54) are up 3% after the company reached a settlement with Ranbaxy Laboratories over the sale of generic versions of the cholesterol drug Lipitor. Under the agreement, Pfizer will not face generic competition until November 2011 -- an extra 20 months. The agreement will have a significant impact on Pfizer's earnings, considering in 2007 Lipitor -- the world's best selling drug -- accounted for $12.6 billion of Pfizer's $48.4 billion in revenue.
The health care sector is outperforming on a relative basis, as it trades near the unchanged mark.DJ30 -70.59 NASDAQ -20.02 SP500 -9.62 NASDAQ Adv/Vol/Dec 881/121 mln/1395 NYSE Adv/Vol/Dec 846/93 mln/1796
09:40 am : The major indices open in negative territory on disappointing earnings and further signs that the financial market turmoil is not over.
On the earnings front, FedEx (FDX 82.44, -1.94) issued fiscal year 2009 earnings guidance well below expectations, citing sluggish demand and record energy prices. The Tennessee-based company's earnings missed analyst expectations for its latest quarter.
Morgan Stanley (MS 38.19, -2.40) reported a 61% year-over-year drop in second quarter earnings per share, but that was good enough to top expectations. However, shares are under pressure after revenue fell well short of estimates.
One day after Goldman Sachs said U.S. banks may need to raise as much as $65 billion in additional capital, regional bank Fifth Third Bancorp (FITB 10.91, -1.82) announced plans to shore up its balance sheet. Specifically, the Ohio-based bank is going to raise $1 billion in fresh capital, sell $1 billion in assets and cut its quarterly dividend by 66% to $0.15 per share.DJ30 -42.66 NASDAQ -13.36 SP500 -6.39
09:14 am : S&P futures vs fair value: -10.0. Nasdaq futures vs fair value: -14.5.
09:03 am : S&P futures vs fair value: -9.8. Nasdaq futures vs fair value: -13.5. Futures indicate a lower start to the trading day. Pfizer (PFE) is bucking the negative trend this morning, with shares up 5% in premarket trading. Pfizer will not have generic competition for the world's best selling drug Lipitor for 20 more months after settling a lawsuit with generics manufacturer Ranbaxy Laboratories.
08:30 am : S&P futures vs fair value: -10.3. Nasdaq futures vs fair value: -14.5. Futures are trading slightly above session lows. Futures were already pointing to a negative start, and then extended their losses following the release of earnings reports from FedEx (FDX) and Morgan Stanley (MS). Northwest Airlines was the latest company to take action because of the record high fuel costs. The airline is reducing fourth quarter 2008 capacity by 8.5% to 9.5% compared to the previous year.
08:00 am : S&P futures vs fair value: -9.7. Nasdaq futures vs fair value: -14.5. Stock futures suggest a negative start to the trading day. Shares of FedEx (FDX) are under pressure in premarket trading after the company reported lower than expected earnings, and issued full year guidance that is well below expectations. Fifth Third Bancorp (FITB) announced its is raising $1 billion in capital and cutting its dividend in an effort to shore up its balance sheet. Morgan Stanley (MS) reported a 61% year-over-year drop in second quarter earnings per share, but that was good enough to top expectations. Crude oil is trading up 0.4% ahead of the governments weekly energy report.
06:28 am : S&P futures vs fair value: -2.7. Nasdaq futures vs fair value: -1.3.
06:27 am : FTSE...5782.30...-79.60...-1.4%. DAX...6768.88...-27.28...-0.4%.
06:27 am : Nikkei...14452.82...+104.45...+0.7%. Hang Seng...23325.80...+267.81...+1.2%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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