AI
Monday, June 23, 2008 7:34:13 PM
Market Update 080623
http://biz.yahoo.com/mu/update.html
4:15 pm : The stock market was unable to muster a gain on Monday despite dropping more than 3% last week, marking a disappointing session for the bulls. Continued concerns over financials weighed on sentiment, as did a 1.2% rise in crude prices -- despite Saudi Arabia announcing plans to increase its output by 200,000 barrels per day, or 2%.
The stock market settled the session near the unchanged mark with six of the ten economic sectors in the green. The Nasdaq underperformed with a decline of 0.9%, with weakness in large and small-cap tech.
The financial sector fell 2.7%, extending its year-to-date decline to 26.5%. Several factors contributed to the selling interest. Citigroup (C 18.59, -0.71) is preparing to layoff 10% of its investment banking staff, or 6,500 employees, according to reports. The financial sector was downgraded to Underperform from Neutral at Goldman Sachs, according to Reuters. Finally, AIG (AIG 30.36, -1.74) had its earnings estimates cut at Credit Suisse.
The consumer discretionary sector slipped 1.6%, as it was also downgraded to Underperform at Goldman Sachs.
The energy sector soared 3.7% on the gain on crude prices, which helped to offset weakness in the consumer discretionary and financial sectors. All 39 stocks within the energy sector posted a gain, with large-cap names providing leadership.
Walgreen (WAG 34.68, -0.39) was the sole item on the earnings calendar. The retailer reported an increase in quarterly profit compared to last year, but its earnings of $0.58 per share fell short of Wall Street's expectations by a penny.
Although the earnings calendar was light, there were plenty of merger and acquisition items to keep market participants busy.
Farm products company Bunge (BG 110.86, -11.31) is buying Corn Products International (CPO 50.76, +7.86) for $4.8 billion, including roughly $400 million in debt.
Waste companies Republic Services (RSG 31.04, -0.15) and Allied Waste Industries (AW 13.31, -0.25) are going to merge, with Republic paying roughly $6 billion in stock to acquire Allied.
Synthetic material manufacturer Huntsman (HUN 12.79, -0.05) is suing private equity firm Apollo and two partners for fraud. Huntsman claims that it was induced to terminate its merger agreement with a Dutch company and enter a merger agreement with Apollo affiliate Hexion Specialty Chemicals instead. Last week, Apollo filed suit in an effort to get out of its $10.6 billion buyout of Huntsman, citing Huntsman's increased debt and lower-than-expected earnings.
Shares of Halliburton (HAL 53.08, +3.05) spiked to a new 52-week high after the oil equipment and services company said it is no longer pursing its $3.6 billion acquisition of Expro International, according to reports. DJ30 -0.33 NASDAQ -20.35 NQ100 -0.8% R2K -0.8% SP400 -0.1% SP500 +0.07 NASDAQ Adv/Vol/Dec 829/1.89 bln/2040 NYSE Adv/Vol/Dec 1048/1.09 bln/2108
3:30 pm : The stock market is trading at the unchanged mark. Only four sectors remain in positive territory, led by energy (+2.8%) and utilities (+0.8%).
The S&P 500 Retailing Index is taking a beating, falling 2.8%. Home improvement retailers Home Depot (HD 25.00, -1.25) and Lowe's (LOW 21.73, -1.10) are the main laggards.
Meanwhile, the tech-heavy Nasdaq is underperforming with a loss of 0.5%. Qualcomm (QCOM 47.93. -0.60) and Apple (AAPL 173.81, -1.46) are under pressure, as are many small-cap names.DJ30 +6.57 NASDAQ -12.78 SP500 +0.79 NASDAQ Adv/Vol/Dec 883/1.58 bln/1980 NYSE Adv/Vol/Dec 1040/815 mln/2105
3:05 pm : The stock market dips to the unchanged mark. The S&P 500 is nearly split down the middle, with 59% of stocks trading lower. Individual sectors, though, are showing more definite moves. Within energy (+2.8%), 100% of stocks are trading higher, while 90% of financials (-2.5%) are lower and 85% of consumer discretionary stocks (-1.5%) are posting a loss.
Financials hold six of the top ten S&P laggards spots. Conversely, energy companies hold seven of the top ten leader positions.DJ30 -0.66 NASDAQ -9.70 SP500 -0.08 NASDAQ Adv/Vol/Dec 954/1.44 bln/1900 NYSE Adv/Vol/Dec 1092/744 mln/2034
2:35 pm : The major indices are fluctuating around the unchanged mark. The financial sector (-2.4%) is retreating toward its session lows, marking a 26% loss this year, and a 42% plummet from its June 2007 52-week high.
Credit Suisse cut its earnings estimates on Merrill Lynch (MER 34.60, -1.35) and JPMorgan Chase (JPM 36.96, -0.90), citing incremental credit quality deterioration that is largely mortgage-related.DJ30 +11.64 NASDAQ -3.15 SP500 +1.78 NASDAQ Adv/Vol/Dec 982/1.33 bln/1860 NYSE Adv/Vol/Dec 1174/685 mln/1937
2:00 pm : The Dow and S&P 500 are trading near their best levels of the session, while the Nasdaq narrows its loss. Buying interest is mostly broad-based. Financials (-1.6%) are still posting a significant loss, but are trading well above their low when they were down 2.7%.DJ30 +28.52 NASDAQ -2.71 SP500 +3.48 NASDAQ Adv/Vol/Dec 1030/1.20 bln/1770 NYSE Adv/Vol/Dec 1263/625 mln/1827
1:30 pm : Mostly broad-based buying interest sends the major indices on the rise. The Dow and S&P 500 are posting modest gains, while the Nasdaq is posting a modest loss.
The Amex Airline Index is down nearly 5% this session as crude oil climbs 1.8%. The index is down 50% this year as soaring fuel costs take a toll on airlines.
European markets ended their session higher, with London's FTSE gaining 0.8% thanks to strength in energy companies.DJ30 +13.59 NASDAQ -7.65 SP500 +1.83 NASDAQ Adv/Vol/Dec 954/1.09 bln/1841 NYSE Adv/Vol/Dec 1217/577 mln/1844
1:00 pm : The stock market has stuck its nose back into positive territory. Six of the ten economic sectors are trading with gains.
Energy remains a strong performer, up 2.8%, currently testing its session high. Exxon Mobil (XOM 86.80, +1.89) is providing the most leadership. Chevron (CVX 98.19, +1.57) is also lending support.
Crude oil is trading higher, but off its best levels. The commodity is up 1.6% at $137.50 per barrel.DJ30 +5.78 NASDAQ -10.90 SP500 +0.66 NASDAQ Adv/Vol/Dec 926/998 mln/1845 NYSE Adv/Vol/Dec 1185/528 mln/1879
12:30 pm : After a brief stint in positive territory, the stock market retreats into negative ground. Market breadth is bearish, with decliners outpacing advancers by 7-to-4 on the NYSE and by 11-to-5 on the Nasdaq.
The financial sector (-2.6%) falls to a fresh session low, as it trades at its lowest level since 2003.
U.S. auto manufacturers (-6.6%) are on the retreat, after posting a loss of 11% last week.DJ30 -18.24 NASDAQ -16.50 SP500 -1.79 NASDAQ Adv/Vol/Dec 856/858 mln/1900 NYSE Adv/Vol/Dec 1098/456 mln/1925
12:00 pm : Market bulls are not pleased with the start of the trading week, as the S&P 500 is unable to garner buying interest despite dropping more than 3% last week. Meanwhile, crude oil is up 1.2% to $136.85 per barrel, even though Saudi Arabia announced plans to raise output by 200,000 barrels per day starting in July.
At midday, the stock market is trading near the unchanged mark, with four of the ten sectors in negative territory. There is notable weakness within financials (-2.4%) and consumer discretionary (-1.1%). Both sectors were downgraded to Underweight at Goldman Sachs, according to Reuters.
Weakness is broad-based within the financial sector as 97% of stocks in the sector are posting a loss, although large-cap names are getting hit especially hard. Citigroup (C 18.65, -0.65) is preparing to cut 10% of its investment banking staff, or 6,500 employees, according to reports.
Energy is helping to offset the losses, advancing 2.4% as crude trades in positive territory.
There were plenty of merger and acquisition items this morning.
Farm products company Bunge (BG 112.03, -10.10) is buying Corn Products International (CPO 50.73, +7.83) for $4.8 billion, including roughly $400 million in debt.
Waste companies Republic Services (RSG 31.03, -0.16) and Allied Waste Industries (AW 13.30, -0.26) are going to merge, with Republic paying roughly $6 billion in stock to acquire Allied.
Synthetic material manufacturer Huntsman (HUN 12.71, -0.13) is suing private equity firm Apollo and two partners for fraud, for inducing Huntsman to terminate its merger agreement with Basel and enter a merger agreement with Apollo affiliate Hexion Specialty Chemicals instead. Last week, Apollo filed suit in an effort to get out of its $10.6 billion buyout of Huntsman, citing Huntsman's increased debt and lower-than-expected earnings.
Shares of Halliburton (HAL 52.63, +2.60) are trading just eight cents shy of their 52-week high after the oil equipment and services company said it is no longer pursing its $3.6 billion acquisition of Expro International, according to reports.
In earnings news, Walgreen (WAG 34.93, -0.14) reported an increase in quarterly profit compared to last year, but its earnings of $0.58 per share fell short of Wall Street's expectations by a penny.
DJ30 -8.55 NASDAQ -12.65 SP500 -0.17 NASDAQ Adv/Vol/Dec 890/778 mln/1847 NYSE Adv/Vol/Dec 1178/416 mln/1823
11:35 am : The major indices slip to session lows and then recover a bit. The S&P and Dow trade with slight losses, while the Nasdaq posts a more substantial decline.
Six of the ten sectors are now in negative territory, with notable weakness within financials (-2.5%) and consumer discretionary (-1.0%). According to Reuters, Goldman Sachs downgraded both the sectors to Underweight, saying the sectors will lag in the current economic environment.
Within the financial sector, 94% of stocks are trading lower, with weakness in large-cap names AIG (AIG 30.55, -1.55) and Bank of America (BAC 26.22, -0.88). CME Group (CME 436.99, +7.73) is bucking the negative trend, after authorizing a $1.1 billion share buyback program and announcing plans to declare a special dividend of $5.00 per common share.
DJ30 -14.75 NASDAQ -15.53 SP500 -0.80 NASDAQ Adv/Vol/Dec 884/689 mln/1826 NYSE Adv/Vol/Dec 1171/369 mln/1786
11:05 am : The S&P is holding onto a slight gain, as the financial sector (-1.7%) narrows its loss from its session low of -2.2%. The tech sector is struggling (-0.6%), which is keeping the Nasdaq (-0.5%) in the red.
According to CNBC, Goldman Sachs expects that the financial industry will face consumer loan defaults than the firm previously thought, and the firm feels that the macroeconomic view is darkening.
Shares of struggling electronics retailer Circuit City (CC 3.57, -0.71) are tumbling 16%. There does not appear to be a specific news item to account for the retreat. The retailer said last week that its first quarter loss widened from the previous year, although the results topped Wall Street's low expectations.DJ30 -1.71 NASDAQ -11.45 SP500 +0.82 NASDAQ Adv/Vol/Dec 921/540 mln/1728 NYSE Adv/Vol/Dec 1310/288 mln/1611
10:30 am : The major indices trade near the unchanged mark, in mixed fashion. Weakness in financials (-2.0%) is acting as a major drag on the broader market. Citigroup (C 18.78, -0.52) is preparing to lay off 6,500 investment bankers, or 10% of its investment banking staff, according to reports.
Seven of the ten economic sectors are posting a gain, led by energy stocks (+1.8%).
Shares of Halliburton (HAL 51.76, +1.73) are trading just shy of their 52-week high after the oil equipment and services company said it is no longer pursing its $3.6 billion acquisition of Expro International, according to reports.DJ30 +4.07 NASDAQ -2.52 SP500 +1.43 NASDAQ Adv/Vol/Dec 1054/377 mln/1536 NYSE Adv/Vol/Dec 1407/215 mln/1459
10:00 am : The major indices trade near the unchanged mark after retreating from their opening gains.
Synthetic material manufacturer Huntsman (HUN 13.00, +0.16) is suing private equity firm Apollo and two partners for fraud, for inducing Huntsman to terminate its merger agreement with Basel and enter a merger agreement with Apollo affiliate Hexion Specialty Chemicals instead. Last week, Apollo filed suit in an effort to get out of its $10.6 billion buyout of Huntsman, citing Huntsman's increased debt and lower-than-expected earnings.
The dollar is enjoying some buying interest this morning, rising 0.76% against a basket of world currencies. This is inducing some selling interest in precious metals, with gold falling 2.4%.DJ30 -2.85 NASDAQ -4.98 SP500 -0.19 NASDAQ Adv/Vol/Dec 939/219 mln/1533 NYSE Adv/Vol/Dec 1405/133 mln/1347
09:45 am : The stock market opens on a modestly higher note, which follows the steep sell-off last week that sent the S&P 500 near a three-month low.
There are a few merger and acquisition items of note. Farm products company Bunge (BG 124.67, +2.50) is buying Corn Products (CPO 54.26, +11.26) for $4.8 billion, including roughly $400 million in debt. Waste companies Republic Services (RSG 30.94, -0.25) and Allied Waste Industries (AW 13.52, -0.04) are going to merge, with Republic paying roughly $6 billion in stock to acquire Allied.
In earnings news, Walgreen (WAG 35.73, +0.66) reported an increase in quarterly profit compared to last year, but its earnings of $0.58 per share fell short of Wall Street's expectations by a penny.
Crude oil has traded in a volatile manner in premarket trading, and is currently up 0.6% to $136.13 per barrel despite Saudi Arabia announcing that it is increasing its output by 200,000 barrels per day starting in July.DJ30 +41.60 NASDAQ +12.31 SP500 +5.85
09:16 am : S&P futures vs fair value: +6.7. Nasdaq futures vs fair value: +8.0. Futures trade near their session highs. Crude oil retreated into the red, and is now down $0.60 at $134.76 per barrel, after trading as high as $137.50.
09:01 am : S&P futures vs fair value: +7.4. Nasdaq futures vs fair value: +7.5.
08:30 am : S&P futures vs fair value: +3.2. Nasdaq futures vs fair value: +3.0. Futures indicate a modestly higher start to the trading day. Citigroup is going to lay off 6,500 investment banking employees, or 10% of the group's workforce, according to the Wall Street Journal. In earnings news, Walgreen (WAG) reported that third quarter earnings per share increased to $0.58 per share, but the results fell short of the consensus estimate by a penny. In commodity trading, oil is up 0.9% to $136.51 per barrel, despite Saudi Arabia announcing that it is adding 200,000 barrels in output per day starting in July.
08:05 am : S&P futures vs fair value: +1.4. Nasdaq futures vs fair value: +3.0. Futures suggest a slightly higher start following last week's steep decline. Farm products company Bunge (BG) is acquiring Corn Products (CPO) for $4.8 billion in a all stock transaction, including the assumption of $414 million in Corn Products' debt. Bunge also raised its earnings guidance. Separately, Republic Services (RSG) announced a merger where Allied Waste (AW) shareholders will receive 0.45 shares of Republic common stock.
06:24 am : FTSE...5636.70...+15.90...+0.3%. DAX...6593.95...+15.51...+0.2%.
06:24 am : S&P futures vs fair value: +3.6. Nasdaq futures vs fair value: +5.5.
06:24 am : Nikkei...13857.47...-84.61...-0.6%. Hang Seng...22714.96...-30.64...-0.1%.
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 was unable to muster a gain on Monday despite dropping more than 3% last week, marking a disappointing session for the bulls. Continued concerns over financials weighed on sentiment, as did a 1.2% rise in crude prices -- despite Saudi Arabia announcing plans to increase its output by 200,000 barrels per day, or 2%.
The stock market settled the session near the unchanged mark with six of the ten economic sectors in the green. The Nasdaq underperformed with a decline of 0.9%, with weakness in large and small-cap tech.
The financial sector fell 2.7%, extending its year-to-date decline to 26.5%. Several factors contributed to the selling interest. Citigroup (C 18.59, -0.71) is preparing to layoff 10% of its investment banking staff, or 6,500 employees, according to reports. The financial sector was downgraded to Underperform from Neutral at Goldman Sachs, according to Reuters. Finally, AIG (AIG 30.36, -1.74) had its earnings estimates cut at Credit Suisse.
The consumer discretionary sector slipped 1.6%, as it was also downgraded to Underperform at Goldman Sachs.
The energy sector soared 3.7% on the gain on crude prices, which helped to offset weakness in the consumer discretionary and financial sectors. All 39 stocks within the energy sector posted a gain, with large-cap names providing leadership.
Walgreen (WAG 34.68, -0.39) was the sole item on the earnings calendar. The retailer reported an increase in quarterly profit compared to last year, but its earnings of $0.58 per share fell short of Wall Street's expectations by a penny.
Although the earnings calendar was light, there were plenty of merger and acquisition items to keep market participants busy.
Farm products company Bunge (BG 110.86, -11.31) is buying Corn Products International (CPO 50.76, +7.86) for $4.8 billion, including roughly $400 million in debt.
Waste companies Republic Services (RSG 31.04, -0.15) and Allied Waste Industries (AW 13.31, -0.25) are going to merge, with Republic paying roughly $6 billion in stock to acquire Allied.
Synthetic material manufacturer Huntsman (HUN 12.79, -0.05) is suing private equity firm Apollo and two partners for fraud. Huntsman claims that it was induced to terminate its merger agreement with a Dutch company and enter a merger agreement with Apollo affiliate Hexion Specialty Chemicals instead. Last week, Apollo filed suit in an effort to get out of its $10.6 billion buyout of Huntsman, citing Huntsman's increased debt and lower-than-expected earnings.
Shares of Halliburton (HAL 53.08, +3.05) spiked to a new 52-week high after the oil equipment and services company said it is no longer pursing its $3.6 billion acquisition of Expro International, according to reports. DJ30 -0.33 NASDAQ -20.35 NQ100 -0.8% R2K -0.8% SP400 -0.1% SP500 +0.07 NASDAQ Adv/Vol/Dec 829/1.89 bln/2040 NYSE Adv/Vol/Dec 1048/1.09 bln/2108
3:30 pm : The stock market is trading at the unchanged mark. Only four sectors remain in positive territory, led by energy (+2.8%) and utilities (+0.8%).
The S&P 500 Retailing Index is taking a beating, falling 2.8%. Home improvement retailers Home Depot (HD 25.00, -1.25) and Lowe's (LOW 21.73, -1.10) are the main laggards.
Meanwhile, the tech-heavy Nasdaq is underperforming with a loss of 0.5%. Qualcomm (QCOM 47.93. -0.60) and Apple (AAPL 173.81, -1.46) are under pressure, as are many small-cap names.DJ30 +6.57 NASDAQ -12.78 SP500 +0.79 NASDAQ Adv/Vol/Dec 883/1.58 bln/1980 NYSE Adv/Vol/Dec 1040/815 mln/2105
3:05 pm : The stock market dips to the unchanged mark. The S&P 500 is nearly split down the middle, with 59% of stocks trading lower. Individual sectors, though, are showing more definite moves. Within energy (+2.8%), 100% of stocks are trading higher, while 90% of financials (-2.5%) are lower and 85% of consumer discretionary stocks (-1.5%) are posting a loss.
Financials hold six of the top ten S&P laggards spots. Conversely, energy companies hold seven of the top ten leader positions.DJ30 -0.66 NASDAQ -9.70 SP500 -0.08 NASDAQ Adv/Vol/Dec 954/1.44 bln/1900 NYSE Adv/Vol/Dec 1092/744 mln/2034
2:35 pm : The major indices are fluctuating around the unchanged mark. The financial sector (-2.4%) is retreating toward its session lows, marking a 26% loss this year, and a 42% plummet from its June 2007 52-week high.
Credit Suisse cut its earnings estimates on Merrill Lynch (MER 34.60, -1.35) and JPMorgan Chase (JPM 36.96, -0.90), citing incremental credit quality deterioration that is largely mortgage-related.DJ30 +11.64 NASDAQ -3.15 SP500 +1.78 NASDAQ Adv/Vol/Dec 982/1.33 bln/1860 NYSE Adv/Vol/Dec 1174/685 mln/1937
2:00 pm : The Dow and S&P 500 are trading near their best levels of the session, while the Nasdaq narrows its loss. Buying interest is mostly broad-based. Financials (-1.6%) are still posting a significant loss, but are trading well above their low when they were down 2.7%.DJ30 +28.52 NASDAQ -2.71 SP500 +3.48 NASDAQ Adv/Vol/Dec 1030/1.20 bln/1770 NYSE Adv/Vol/Dec 1263/625 mln/1827
1:30 pm : Mostly broad-based buying interest sends the major indices on the rise. The Dow and S&P 500 are posting modest gains, while the Nasdaq is posting a modest loss.
The Amex Airline Index is down nearly 5% this session as crude oil climbs 1.8%. The index is down 50% this year as soaring fuel costs take a toll on airlines.
European markets ended their session higher, with London's FTSE gaining 0.8% thanks to strength in energy companies.DJ30 +13.59 NASDAQ -7.65 SP500 +1.83 NASDAQ Adv/Vol/Dec 954/1.09 bln/1841 NYSE Adv/Vol/Dec 1217/577 mln/1844
1:00 pm : The stock market has stuck its nose back into positive territory. Six of the ten economic sectors are trading with gains.
Energy remains a strong performer, up 2.8%, currently testing its session high. Exxon Mobil (XOM 86.80, +1.89) is providing the most leadership. Chevron (CVX 98.19, +1.57) is also lending support.
Crude oil is trading higher, but off its best levels. The commodity is up 1.6% at $137.50 per barrel.DJ30 +5.78 NASDAQ -10.90 SP500 +0.66 NASDAQ Adv/Vol/Dec 926/998 mln/1845 NYSE Adv/Vol/Dec 1185/528 mln/1879
12:30 pm : After a brief stint in positive territory, the stock market retreats into negative ground. Market breadth is bearish, with decliners outpacing advancers by 7-to-4 on the NYSE and by 11-to-5 on the Nasdaq.
The financial sector (-2.6%) falls to a fresh session low, as it trades at its lowest level since 2003.
U.S. auto manufacturers (-6.6%) are on the retreat, after posting a loss of 11% last week.DJ30 -18.24 NASDAQ -16.50 SP500 -1.79 NASDAQ Adv/Vol/Dec 856/858 mln/1900 NYSE Adv/Vol/Dec 1098/456 mln/1925
12:00 pm : Market bulls are not pleased with the start of the trading week, as the S&P 500 is unable to garner buying interest despite dropping more than 3% last week. Meanwhile, crude oil is up 1.2% to $136.85 per barrel, even though Saudi Arabia announced plans to raise output by 200,000 barrels per day starting in July.
At midday, the stock market is trading near the unchanged mark, with four of the ten sectors in negative territory. There is notable weakness within financials (-2.4%) and consumer discretionary (-1.1%). Both sectors were downgraded to Underweight at Goldman Sachs, according to Reuters.
Weakness is broad-based within the financial sector as 97% of stocks in the sector are posting a loss, although large-cap names are getting hit especially hard. Citigroup (C 18.65, -0.65) is preparing to cut 10% of its investment banking staff, or 6,500 employees, according to reports.
Energy is helping to offset the losses, advancing 2.4% as crude trades in positive territory.
There were plenty of merger and acquisition items this morning.
Farm products company Bunge (BG 112.03, -10.10) is buying Corn Products International (CPO 50.73, +7.83) for $4.8 billion, including roughly $400 million in debt.
Waste companies Republic Services (RSG 31.03, -0.16) and Allied Waste Industries (AW 13.30, -0.26) are going to merge, with Republic paying roughly $6 billion in stock to acquire Allied.
Synthetic material manufacturer Huntsman (HUN 12.71, -0.13) is suing private equity firm Apollo and two partners for fraud, for inducing Huntsman to terminate its merger agreement with Basel and enter a merger agreement with Apollo affiliate Hexion Specialty Chemicals instead. Last week, Apollo filed suit in an effort to get out of its $10.6 billion buyout of Huntsman, citing Huntsman's increased debt and lower-than-expected earnings.
Shares of Halliburton (HAL 52.63, +2.60) are trading just eight cents shy of their 52-week high after the oil equipment and services company said it is no longer pursing its $3.6 billion acquisition of Expro International, according to reports.
In earnings news, Walgreen (WAG 34.93, -0.14) reported an increase in quarterly profit compared to last year, but its earnings of $0.58 per share fell short of Wall Street's expectations by a penny.
DJ30 -8.55 NASDAQ -12.65 SP500 -0.17 NASDAQ Adv/Vol/Dec 890/778 mln/1847 NYSE Adv/Vol/Dec 1178/416 mln/1823
11:35 am : The major indices slip to session lows and then recover a bit. The S&P and Dow trade with slight losses, while the Nasdaq posts a more substantial decline.
Six of the ten sectors are now in negative territory, with notable weakness within financials (-2.5%) and consumer discretionary (-1.0%). According to Reuters, Goldman Sachs downgraded both the sectors to Underweight, saying the sectors will lag in the current economic environment.
Within the financial sector, 94% of stocks are trading lower, with weakness in large-cap names AIG (AIG 30.55, -1.55) and Bank of America (BAC 26.22, -0.88). CME Group (CME 436.99, +7.73) is bucking the negative trend, after authorizing a $1.1 billion share buyback program and announcing plans to declare a special dividend of $5.00 per common share.
DJ30 -14.75 NASDAQ -15.53 SP500 -0.80 NASDAQ Adv/Vol/Dec 884/689 mln/1826 NYSE Adv/Vol/Dec 1171/369 mln/1786
11:05 am : The S&P is holding onto a slight gain, as the financial sector (-1.7%) narrows its loss from its session low of -2.2%. The tech sector is struggling (-0.6%), which is keeping the Nasdaq (-0.5%) in the red.
According to CNBC, Goldman Sachs expects that the financial industry will face consumer loan defaults than the firm previously thought, and the firm feels that the macroeconomic view is darkening.
Shares of struggling electronics retailer Circuit City (CC 3.57, -0.71) are tumbling 16%. There does not appear to be a specific news item to account for the retreat. The retailer said last week that its first quarter loss widened from the previous year, although the results topped Wall Street's low expectations.DJ30 -1.71 NASDAQ -11.45 SP500 +0.82 NASDAQ Adv/Vol/Dec 921/540 mln/1728 NYSE Adv/Vol/Dec 1310/288 mln/1611
10:30 am : The major indices trade near the unchanged mark, in mixed fashion. Weakness in financials (-2.0%) is acting as a major drag on the broader market. Citigroup (C 18.78, -0.52) is preparing to lay off 6,500 investment bankers, or 10% of its investment banking staff, according to reports.
Seven of the ten economic sectors are posting a gain, led by energy stocks (+1.8%).
Shares of Halliburton (HAL 51.76, +1.73) are trading just shy of their 52-week high after the oil equipment and services company said it is no longer pursing its $3.6 billion acquisition of Expro International, according to reports.DJ30 +4.07 NASDAQ -2.52 SP500 +1.43 NASDAQ Adv/Vol/Dec 1054/377 mln/1536 NYSE Adv/Vol/Dec 1407/215 mln/1459
10:00 am : The major indices trade near the unchanged mark after retreating from their opening gains.
Synthetic material manufacturer Huntsman (HUN 13.00, +0.16) is suing private equity firm Apollo and two partners for fraud, for inducing Huntsman to terminate its merger agreement with Basel and enter a merger agreement with Apollo affiliate Hexion Specialty Chemicals instead. Last week, Apollo filed suit in an effort to get out of its $10.6 billion buyout of Huntsman, citing Huntsman's increased debt and lower-than-expected earnings.
The dollar is enjoying some buying interest this morning, rising 0.76% against a basket of world currencies. This is inducing some selling interest in precious metals, with gold falling 2.4%.DJ30 -2.85 NASDAQ -4.98 SP500 -0.19 NASDAQ Adv/Vol/Dec 939/219 mln/1533 NYSE Adv/Vol/Dec 1405/133 mln/1347
09:45 am : The stock market opens on a modestly higher note, which follows the steep sell-off last week that sent the S&P 500 near a three-month low.
There are a few merger and acquisition items of note. Farm products company Bunge (BG 124.67, +2.50) is buying Corn Products (CPO 54.26, +11.26) for $4.8 billion, including roughly $400 million in debt. Waste companies Republic Services (RSG 30.94, -0.25) and Allied Waste Industries (AW 13.52, -0.04) are going to merge, with Republic paying roughly $6 billion in stock to acquire Allied.
In earnings news, Walgreen (WAG 35.73, +0.66) reported an increase in quarterly profit compared to last year, but its earnings of $0.58 per share fell short of Wall Street's expectations by a penny.
Crude oil has traded in a volatile manner in premarket trading, and is currently up 0.6% to $136.13 per barrel despite Saudi Arabia announcing that it is increasing its output by 200,000 barrels per day starting in July.DJ30 +41.60 NASDAQ +12.31 SP500 +5.85
09:16 am : S&P futures vs fair value: +6.7. Nasdaq futures vs fair value: +8.0. Futures trade near their session highs. Crude oil retreated into the red, and is now down $0.60 at $134.76 per barrel, after trading as high as $137.50.
09:01 am : S&P futures vs fair value: +7.4. Nasdaq futures vs fair value: +7.5.
08:30 am : S&P futures vs fair value: +3.2. Nasdaq futures vs fair value: +3.0. Futures indicate a modestly higher start to the trading day. Citigroup is going to lay off 6,500 investment banking employees, or 10% of the group's workforce, according to the Wall Street Journal. In earnings news, Walgreen (WAG) reported that third quarter earnings per share increased to $0.58 per share, but the results fell short of the consensus estimate by a penny. In commodity trading, oil is up 0.9% to $136.51 per barrel, despite Saudi Arabia announcing that it is adding 200,000 barrels in output per day starting in July.
08:05 am : S&P futures vs fair value: +1.4. Nasdaq futures vs fair value: +3.0. Futures suggest a slightly higher start following last week's steep decline. Farm products company Bunge (BG) is acquiring Corn Products (CPO) for $4.8 billion in a all stock transaction, including the assumption of $414 million in Corn Products' debt. Bunge also raised its earnings guidance. Separately, Republic Services (RSG) announced a merger where Allied Waste (AW) shareholders will receive 0.45 shares of Republic common stock.
06:24 am : FTSE...5636.70...+15.90...+0.3%. DAX...6593.95...+15.51...+0.2%.
06:24 am : S&P futures vs fair value: +3.6. Nasdaq futures vs fair value: +5.5.
06:24 am : Nikkei...13857.47...-84.61...-0.6%. Hang Seng...22714.96...-30.64...-0.1%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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