AI
Tuesday, June 24, 2008 7:27:32 PM
Market Update 080624
http://biz.yahoo.com/mu/update.html
4:20 pm : The stock market posted a modest loss Tuesday, after a volatile trading session. A rebound in financial stocks helped partially offset some disappointment over weak consumer sentiment, falling home prices and an earnings warning from UPS. Small-cap stocks were out of favor, with the Russell 2000 Index falling 1.7% compared to the S&P 500's decline of 0.3%.
The financial sector settled the session with a 1.5% gain after being down as much as 2.2%. According to reports, Wachovia (WB 17.88, +0.96) said it hired Goldman Sachs to "perform analytics on our loans to evaluate various alternatives." Meanwhile, shares of UBS (UBS 22.07, +1.47) rose 7% on speculation that HSBC Holdings (HBC 79.06, +0.01) would make an offer to acquire UBS.
Crude oil prices (+0.2% at $136.96) are up 98% compared to one-year ago, which is taking a toll on energy dependent companies. UPS (62.27, -3.99) lowered its second quarter earnings guidance, citing the increase in fuel costs and the sluggish U.S. economy. UAL Corp (UAUA 6.02, -0.07), parent company of United Airlines, is laying off 950, or 15%, of its pilots and reducing its fleet by 100 aircraft. Dow Chemical (DOW 36.61, -1.01) is again raising prices to combat rising energy costs, with a price increase of as much as 25% in July.
On the economic front, consumer confidence in June slipped 13% to its lowest level since 1992, after consumers were bombarded with reports of spiking food and energy costs and rising unemployment. However, these surveys do not always correlate with actual consumer spending, so Briefing.com puts more emphasis on the consumer spending report -- set for release on Friday.
The housing industry remains sluggish, although the rate of home price declines is slowing. The S&P/Case Shiller Index showed that home prices in 20 major metro areas fell 1.6% compared to last month -- the smallest drop since September. However, home prices are now down 15.2% year-over-year -- the largest drop in the composite's eight year history.
The Fed kicked off its two-day FOMC meeting today. Investors expect that the fed funds rate will remain unchanged, although the wording of tomorrow's directive is likely to move the market. Expect the Fed's policy statement around 2:15 PM ET Wednesday.DJ30 -34.93 NASDAQ -17.46 NQ100 -0.5% R2K -1.7% SP400 -1.3% SP500 -3.71 NASDAQ Adv/Vol/Dec 779/2.18 bln/2089 NYSE Adv/Vol/Dec 970/1.34 bln/2172
3:30 pm : Mostly broad-based selling interest sends the major indices into negative territory. The materials sector (-2.6%) is taking the brunt of the selling pressure. Small-caps are also on the retreat, with the Russell 2000 Index down 1.2%.
Tomorrow, the market's attention turns to the FOMC announcement. Fed fund futures imply a 90% chance that the rate will remain unchanged at 2.00%, with the rest of the odds on a 25 basis point increase.DJ30 -34.03 NASDAQ -15.58 SP500 -4.39 NASDAQ Adv/Vol/Dec 902/1.84 bln/1950 NYSE Adv/Vol/Dec 1001/1.04 bln/2124
3:00 pm : The S&P 500 slips to the unchanged mark, while the Nasdaq is now posting a modest loss. The recent dip is broad-based, with all ten sectors seeing some selling interest.DJ30 -0.98 NASDAQ -7.40 SP500 +0.60 NASDAQ Adv/Vol/Dec 978/1.68 bln/1865 NYSE Adv/Vol/Dec 1141/948 mln/1971
2:35 pm : The stock market is holding a modest gain of 0.3% after being down 1.0% in the early-going.
The materials sector is posting the largest decline, with agriculture company Monsanto (MON 136.71, -5.34) facing selling pressure.
In commodity trading, crude is up 0.2% to $137.00 per barrel, and gold is up 0.5% to $889.20 per ounce. Commodities as a whole are down 0.3%, due to some selling interest in grains (-0.7%) and livestock (-0.7%).DJ30 +26.62 NASDAQ +2.63 SP500 +4.17 NASDAQ Adv/Vol/Dec 1103/1.55 bln/1727 NYSE Adv/Vol/Dec 1284/880 mln/1805
2:00 pm : The major indices trade with modest gains, near session highs. Treasuries are seeing some buying interest, with the 10-year note up 16 ticks.
Small- and mid-cap stocks are trailing their large-cap counterparts. Within the Russell 2000 (-0.6%), 63% of stocks are trading lower, while 58% of stocks within the S&P 400 are in the red.DJ30 +39.90 NASDAQ +4.95 SP500 +5.61 NASDAQ Adv/Vol/Dec 1067/1.42 bln/1734 NYSE Adv/Vol/Dec 1229/808 mln/1858
1:35 pm : The stock market posts modest gains, as seven of the ten economic sectors trade in positive territory. Financials (+2.0%) are seeing the majority of the buying interest, as no other sector is up more than 1%.
Shares of Yahoo (YHOO 21.84, -0.39) spike more than 9% on a TechCrunch blog that said Microsoft (MSFT 27.90, -0.07) and Yahoo are close to a deal. Shares of YHOO then retreat to a gain of 1.8% as CNBC reports its sources say there is no deal.
The homebuilding group is rallying 8.0%. Credit Suisse initiated coverage of homebuilders with an Overweight stance, saying that tough conditions will continue, but an inflection point in housing is likely in spring 2009.DJ30 +25.48 NASDAQ -0.44 SP500 +3.43 NASDAQ Adv/Vol/Dec 1015/1.31 bln/1773 NYSE Adv/Vol/Dec 1171/755 mln/1913
1:00 pm : The stock market has taken a step back from the session's best level, but remains 0.3% for the better. Financial stocks (+1.9%) have found favor after being pummeled in previous sessions; financials represent the session's best performing economic sector.
Within the financial sector, diversified banks are faring well. As a group, diversified banks are up 4.5% as Wells Fargo (WFC 25.44, +1.18) provides leadership. Shares of WFC hit a 52-week low in yesterday's session.DJ30 +31.43 NASDAQ -1.97 SP500 +4.09 NASDAQ Adv/Vol/Dec 1039/1.17 bln/1736 NYSE Adv/Vol/Dec 1245/694 mln/1825
12:30 pm : The Dow and S&P 500 trade with modest gains, while the Nasdaq holds near the unchanged mark. Similar to yesterday, weakness in small-cap stocks are weighing on the Nasdaq.
Market breadth leans bearish with decliners outpacing advancers by 3-to-2 on the NYSE and by 8-to-5 on the Nasdaq. This is an improvement from earlier levels, when decliners outpaced advancers by roughly 4-to-1 on the NYSE.DJ30 +40.06 NASDAQ +1.79 SP500 +5.43 NASDAQ Adv/Vol/Dec 1068/1.05 bln/1690 NYSE Adv/Vol/Dec 1254/623 mln/1813
12:05 pm : The stock market is posting a modest gain at midday, rebounding from its early losses after financials sparked a broad-based recovery. This helped offset falling consumer confidence and home prices, as well as an earnings warning from UPS.
Financials slipped 1.1% in the early-going, and then rallied to a gain 2.2%. Wachovia (WB 17.78, +0.86) is up 5.1% on reports this morning that the company hired Goldman Sachs to "evaluate various alternatives." Some bargain hunting interest is helping to lift financials -- at this session's low the sector was down 14% month-to-date.
The nearly 100% one-year spike in crude oil (-0.3% at 136.38) prices is taking a toll on energy dependent companies. UPS (63.43, -2.83) lowered its second quarter earnings guidance, citing the increase in fuel costs and the sluggish U.S. economy. UAL Corp (UAUA 6.32, +0.23), parent company of United Airlines, is laying off 950, or 15%, of its pilots and reducing its fleet by 100 aircraft. Dow Chemical (DOW 37.26, -0.36) is again raising prices to combat rising energy costs, with a price increase of as much as 25% in July.
On the economic front, consumer confidence in June slipped 13% to its lowest level since 1992, after consumers were bombarded with reports of spiking food and energy costs and rising unemployment. However, these surveys do not always correlate with actual consumer spending, so Briefing.com puts more emphasis on the consumer spending report -- set for release on Friday.
The housing industry remains sluggish, although the rate of home price declines is slowing. The S&P/Case Shiller index showed that house prices in 20 major metro areas fell 1.6% compared to last month -- the smallest drop since September. However, home prices are now down 15.2% year-over-year -- the largest drop in the composite's eight year history.
The Fed kicked off its two-day FOMC meeting today. The market expects the fed funds rate will remain unchanged, although the wording of tomorrow's directive is likely to move the market. DJ30 +19.78 NASDAQ +0.56 SP500 +3.00 NASDAQ Adv/Vol/Dec 1086/959 mln/1646 NYSE Adv/Vol/Dec 1234/567 mln/1796
11:30 am : The stock market rallies into positive territory and then dips to the unchanged mark. The move upward is mostly broad-based, with notable strength within financials (+1.6%). The buying interest may be spurred by a technical catalyst, as there does not appear to be a specific news item to account for the rally.
The Nasdaq has pared its loss, but continues to underperform with a decline of 0.5%. Small-cap tech names are acting as a drag on the composite.DJ30 +1.30 NASDAQ -12.08 SP500 -0.49 NASDAQ Adv/Vol/Dec 911/806 mln/1772 NYSE Adv/Vol/Dec 1023/479 mln/2002
11:00 am : The major indices pare a large portion of their losses as the financial sector reverses to a gain of 1.1% from a loss of 1.1%. The large-cap diversified banks group (+2.6%) is leading the way higher, with strength in Wells Fargo (25.09, +0.83).
Separately, grocery store operator Kroger (KR 28.27, +2.27) is seeing a nice boost after this morning reporting quarterly earnings of $0.58 per share, which is three cents better than the consensus estimate.DJ30 -25.57 NASDAQ -14.94 SP500 -3.01 NASDAQ Adv/Vol/Dec 724/620 mln/1893 NYSE Adv/Vol/Dec 729/377 mln/2251
10:30 am : The major indices climb off their consumer confidence reading induced lows, although they have not made up much ground. Small-cap names are getting hit especially hard, with the Russell 2000 Index down 1.4%.
Shares of Eastman Kodak (EK 13.96, +1.62) are soaring 13% -- the largest one-day percent gain since 1987. The company announced that its board approved a stock repurchase program totaling as much as $1.0 billion, which is roughly 25% of outstanding shares. The company also received a $581 million tax refund from the IRS.DJ30 -91.60 NASDAQ -25.51 SP500 -10.46 NASDAQ Adv/Vol/Dec 579/422 mln/1968 NYSE Adv/Vol/Dec 541/269 mln/2375
10:05 am : Just hitting the wires, the Conference Board said June consumer confidence slipped 13% from the previous reading to 50.4. This fell short of the expected reading 56.0 and marks the lowest consumer confidence since 1992.
The major indices extended their opening declines, and then fall further on the worse-than-expected economic report. All ten economic sectors are posting a loss. The materials sector (-2.0%) is showing weakness, as is consumer discretionary (-1.4%).
The healthcare sector is outperforming on a relative basis, with a decline of 0.6%.DJ30 -105.93 NASDAQ -27.65 SP500 -12.80 NASDAQ Adv/Vol/Dec 625/216 mln/1792 NYSE Adv/Vol/Dec 556/146 mln/2240
09:40 am : The major indices get off to a sluggish start, with the S&P 500 posting a modest loss as the Fed kicks off its two-day FOMC meeting. The market expects the fed funds rate will remain unchanged at 2.00%.
The top stories this morning reflect the impact of rising crude prices on energy dependent companies. UPS (UPS 63.19, -3.07) lowered its second quarter earnings guidance, citing the spike in fuel costs and the sluggish U.S. economy. UAL Corp (UAUA 5.95, -0.14) is laying off 950, or 15%, of its pilots and reducing its fleet by 100 aircraft. Finally, Dow Chemical (DOW 37.28, -0.34) is again raising prices to combat rising energy costs, with a price increase of as much as 25% in July.
Crude oil is currently up 0.1% to $136.93 per barrel after trading up as much 1.5%.DJ30 -37.94 NASDAQ -8.15 SP500 -3.93
09:02 am : S&P futures vs fair value: -7.0. Nasdaq futures vs fair value: -17.2. A lower start is expected, although futures are trading above their worst levels. In economic news, the April S&P/Case-Shiller Home Price Index slipped 15.3% year-over-year, which is slightly better than the expected decline of 16%. Grocery store operate Kroger (KR) reported better-than-expected earnings, and raised the low end of its fiscal year 2009 earnings guidance.
08:31 am : S&P futures vs fair value: -8.2. Nasdaq futures vs fair value: -20.3. Futures continue to suggest a lower start to trade. Dow Chemical (DOW) announced that it is going to raise the price of its products by as much as an additional 25% in July to offset the spike in energy costs. It will also add a freight surcharge of $300 per truck and $600 per shipment by rail. Crude is trading up 0.9% to $138.00 per barrel.
08:25 am : S&P futures vs fair value: -7.3. Nasdaq futures vs fair value: -18.8.
08:00 am : S&P futures vs fair value: -9.5. Nasdaq futures vs fair value: -20.2. Futures suggest a sharply lower start to the trading session. UPS lowered its second quarter earnings outlook well below the consensus estimate. The company cited slow U.S. economic growth and the spike in fuel costs. The FOMC kicks off its two-day meeting today. The Fed is widely expected to keep the fed funds rate unchanged at 2.00%.
06:19 am : S&P futures vs fair value: -8.4. Nasdaq futures vs fair value: -21.0.
06:19 am : FTSE...5616.40...-50.80...-0.9%. DAX...6480.30...-109.16...-1.7%.
06:19 am : Nikkei...13849.56...-7.91...-0.1%. Hang Seng...22456.02...-258.94...-1.1%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
http://biz.yahoo.com/mu/update.html
4:20 pm : The stock market posted a modest loss Tuesday, after a volatile trading session. A rebound in financial stocks helped partially offset some disappointment over weak consumer sentiment, falling home prices and an earnings warning from UPS. Small-cap stocks were out of favor, with the Russell 2000 Index falling 1.7% compared to the S&P 500's decline of 0.3%.
The financial sector settled the session with a 1.5% gain after being down as much as 2.2%. According to reports, Wachovia (WB 17.88, +0.96) said it hired Goldman Sachs to "perform analytics on our loans to evaluate various alternatives." Meanwhile, shares of UBS (UBS 22.07, +1.47) rose 7% on speculation that HSBC Holdings (HBC 79.06, +0.01) would make an offer to acquire UBS.
Crude oil prices (+0.2% at $136.96) are up 98% compared to one-year ago, which is taking a toll on energy dependent companies. UPS (62.27, -3.99) lowered its second quarter earnings guidance, citing the increase in fuel costs and the sluggish U.S. economy. UAL Corp (UAUA 6.02, -0.07), parent company of United Airlines, is laying off 950, or 15%, of its pilots and reducing its fleet by 100 aircraft. Dow Chemical (DOW 36.61, -1.01) is again raising prices to combat rising energy costs, with a price increase of as much as 25% in July.
On the economic front, consumer confidence in June slipped 13% to its lowest level since 1992, after consumers were bombarded with reports of spiking food and energy costs and rising unemployment. However, these surveys do not always correlate with actual consumer spending, so Briefing.com puts more emphasis on the consumer spending report -- set for release on Friday.
The housing industry remains sluggish, although the rate of home price declines is slowing. The S&P/Case Shiller Index showed that home prices in 20 major metro areas fell 1.6% compared to last month -- the smallest drop since September. However, home prices are now down 15.2% year-over-year -- the largest drop in the composite's eight year history.
The Fed kicked off its two-day FOMC meeting today. Investors expect that the fed funds rate will remain unchanged, although the wording of tomorrow's directive is likely to move the market. Expect the Fed's policy statement around 2:15 PM ET Wednesday.DJ30 -34.93 NASDAQ -17.46 NQ100 -0.5% R2K -1.7% SP400 -1.3% SP500 -3.71 NASDAQ Adv/Vol/Dec 779/2.18 bln/2089 NYSE Adv/Vol/Dec 970/1.34 bln/2172
3:30 pm : Mostly broad-based selling interest sends the major indices into negative territory. The materials sector (-2.6%) is taking the brunt of the selling pressure. Small-caps are also on the retreat, with the Russell 2000 Index down 1.2%.
Tomorrow, the market's attention turns to the FOMC announcement. Fed fund futures imply a 90% chance that the rate will remain unchanged at 2.00%, with the rest of the odds on a 25 basis point increase.DJ30 -34.03 NASDAQ -15.58 SP500 -4.39 NASDAQ Adv/Vol/Dec 902/1.84 bln/1950 NYSE Adv/Vol/Dec 1001/1.04 bln/2124
3:00 pm : The S&P 500 slips to the unchanged mark, while the Nasdaq is now posting a modest loss. The recent dip is broad-based, with all ten sectors seeing some selling interest.DJ30 -0.98 NASDAQ -7.40 SP500 +0.60 NASDAQ Adv/Vol/Dec 978/1.68 bln/1865 NYSE Adv/Vol/Dec 1141/948 mln/1971
2:35 pm : The stock market is holding a modest gain of 0.3% after being down 1.0% in the early-going.
The materials sector is posting the largest decline, with agriculture company Monsanto (MON 136.71, -5.34) facing selling pressure.
In commodity trading, crude is up 0.2% to $137.00 per barrel, and gold is up 0.5% to $889.20 per ounce. Commodities as a whole are down 0.3%, due to some selling interest in grains (-0.7%) and livestock (-0.7%).DJ30 +26.62 NASDAQ +2.63 SP500 +4.17 NASDAQ Adv/Vol/Dec 1103/1.55 bln/1727 NYSE Adv/Vol/Dec 1284/880 mln/1805
2:00 pm : The major indices trade with modest gains, near session highs. Treasuries are seeing some buying interest, with the 10-year note up 16 ticks.
Small- and mid-cap stocks are trailing their large-cap counterparts. Within the Russell 2000 (-0.6%), 63% of stocks are trading lower, while 58% of stocks within the S&P 400 are in the red.DJ30 +39.90 NASDAQ +4.95 SP500 +5.61 NASDAQ Adv/Vol/Dec 1067/1.42 bln/1734 NYSE Adv/Vol/Dec 1229/808 mln/1858
1:35 pm : The stock market posts modest gains, as seven of the ten economic sectors trade in positive territory. Financials (+2.0%) are seeing the majority of the buying interest, as no other sector is up more than 1%.
Shares of Yahoo (YHOO 21.84, -0.39) spike more than 9% on a TechCrunch blog that said Microsoft (MSFT 27.90, -0.07) and Yahoo are close to a deal. Shares of YHOO then retreat to a gain of 1.8% as CNBC reports its sources say there is no deal.
The homebuilding group is rallying 8.0%. Credit Suisse initiated coverage of homebuilders with an Overweight stance, saying that tough conditions will continue, but an inflection point in housing is likely in spring 2009.DJ30 +25.48 NASDAQ -0.44 SP500 +3.43 NASDAQ Adv/Vol/Dec 1015/1.31 bln/1773 NYSE Adv/Vol/Dec 1171/755 mln/1913
1:00 pm : The stock market has taken a step back from the session's best level, but remains 0.3% for the better. Financial stocks (+1.9%) have found favor after being pummeled in previous sessions; financials represent the session's best performing economic sector.
Within the financial sector, diversified banks are faring well. As a group, diversified banks are up 4.5% as Wells Fargo (WFC 25.44, +1.18) provides leadership. Shares of WFC hit a 52-week low in yesterday's session.DJ30 +31.43 NASDAQ -1.97 SP500 +4.09 NASDAQ Adv/Vol/Dec 1039/1.17 bln/1736 NYSE Adv/Vol/Dec 1245/694 mln/1825
12:30 pm : The Dow and S&P 500 trade with modest gains, while the Nasdaq holds near the unchanged mark. Similar to yesterday, weakness in small-cap stocks are weighing on the Nasdaq.
Market breadth leans bearish with decliners outpacing advancers by 3-to-2 on the NYSE and by 8-to-5 on the Nasdaq. This is an improvement from earlier levels, when decliners outpaced advancers by roughly 4-to-1 on the NYSE.DJ30 +40.06 NASDAQ +1.79 SP500 +5.43 NASDAQ Adv/Vol/Dec 1068/1.05 bln/1690 NYSE Adv/Vol/Dec 1254/623 mln/1813
12:05 pm : The stock market is posting a modest gain at midday, rebounding from its early losses after financials sparked a broad-based recovery. This helped offset falling consumer confidence and home prices, as well as an earnings warning from UPS.
Financials slipped 1.1% in the early-going, and then rallied to a gain 2.2%. Wachovia (WB 17.78, +0.86) is up 5.1% on reports this morning that the company hired Goldman Sachs to "evaluate various alternatives." Some bargain hunting interest is helping to lift financials -- at this session's low the sector was down 14% month-to-date.
The nearly 100% one-year spike in crude oil (-0.3% at 136.38) prices is taking a toll on energy dependent companies. UPS (63.43, -2.83) lowered its second quarter earnings guidance, citing the increase in fuel costs and the sluggish U.S. economy. UAL Corp (UAUA 6.32, +0.23), parent company of United Airlines, is laying off 950, or 15%, of its pilots and reducing its fleet by 100 aircraft. Dow Chemical (DOW 37.26, -0.36) is again raising prices to combat rising energy costs, with a price increase of as much as 25% in July.
On the economic front, consumer confidence in June slipped 13% to its lowest level since 1992, after consumers were bombarded with reports of spiking food and energy costs and rising unemployment. However, these surveys do not always correlate with actual consumer spending, so Briefing.com puts more emphasis on the consumer spending report -- set for release on Friday.
The housing industry remains sluggish, although the rate of home price declines is slowing. The S&P/Case Shiller index showed that house prices in 20 major metro areas fell 1.6% compared to last month -- the smallest drop since September. However, home prices are now down 15.2% year-over-year -- the largest drop in the composite's eight year history.
The Fed kicked off its two-day FOMC meeting today. The market expects the fed funds rate will remain unchanged, although the wording of tomorrow's directive is likely to move the market. DJ30 +19.78 NASDAQ +0.56 SP500 +3.00 NASDAQ Adv/Vol/Dec 1086/959 mln/1646 NYSE Adv/Vol/Dec 1234/567 mln/1796
11:30 am : The stock market rallies into positive territory and then dips to the unchanged mark. The move upward is mostly broad-based, with notable strength within financials (+1.6%). The buying interest may be spurred by a technical catalyst, as there does not appear to be a specific news item to account for the rally.
The Nasdaq has pared its loss, but continues to underperform with a decline of 0.5%. Small-cap tech names are acting as a drag on the composite.DJ30 +1.30 NASDAQ -12.08 SP500 -0.49 NASDAQ Adv/Vol/Dec 911/806 mln/1772 NYSE Adv/Vol/Dec 1023/479 mln/2002
11:00 am : The major indices pare a large portion of their losses as the financial sector reverses to a gain of 1.1% from a loss of 1.1%. The large-cap diversified banks group (+2.6%) is leading the way higher, with strength in Wells Fargo (25.09, +0.83).
Separately, grocery store operator Kroger (KR 28.27, +2.27) is seeing a nice boost after this morning reporting quarterly earnings of $0.58 per share, which is three cents better than the consensus estimate.DJ30 -25.57 NASDAQ -14.94 SP500 -3.01 NASDAQ Adv/Vol/Dec 724/620 mln/1893 NYSE Adv/Vol/Dec 729/377 mln/2251
10:30 am : The major indices climb off their consumer confidence reading induced lows, although they have not made up much ground. Small-cap names are getting hit especially hard, with the Russell 2000 Index down 1.4%.
Shares of Eastman Kodak (EK 13.96, +1.62) are soaring 13% -- the largest one-day percent gain since 1987. The company announced that its board approved a stock repurchase program totaling as much as $1.0 billion, which is roughly 25% of outstanding shares. The company also received a $581 million tax refund from the IRS.DJ30 -91.60 NASDAQ -25.51 SP500 -10.46 NASDAQ Adv/Vol/Dec 579/422 mln/1968 NYSE Adv/Vol/Dec 541/269 mln/2375
10:05 am : Just hitting the wires, the Conference Board said June consumer confidence slipped 13% from the previous reading to 50.4. This fell short of the expected reading 56.0 and marks the lowest consumer confidence since 1992.
The major indices extended their opening declines, and then fall further on the worse-than-expected economic report. All ten economic sectors are posting a loss. The materials sector (-2.0%) is showing weakness, as is consumer discretionary (-1.4%).
The healthcare sector is outperforming on a relative basis, with a decline of 0.6%.DJ30 -105.93 NASDAQ -27.65 SP500 -12.80 NASDAQ Adv/Vol/Dec 625/216 mln/1792 NYSE Adv/Vol/Dec 556/146 mln/2240
09:40 am : The major indices get off to a sluggish start, with the S&P 500 posting a modest loss as the Fed kicks off its two-day FOMC meeting. The market expects the fed funds rate will remain unchanged at 2.00%.
The top stories this morning reflect the impact of rising crude prices on energy dependent companies. UPS (UPS 63.19, -3.07) lowered its second quarter earnings guidance, citing the spike in fuel costs and the sluggish U.S. economy. UAL Corp (UAUA 5.95, -0.14) is laying off 950, or 15%, of its pilots and reducing its fleet by 100 aircraft. Finally, Dow Chemical (DOW 37.28, -0.34) is again raising prices to combat rising energy costs, with a price increase of as much as 25% in July.
Crude oil is currently up 0.1% to $136.93 per barrel after trading up as much 1.5%.DJ30 -37.94 NASDAQ -8.15 SP500 -3.93
09:02 am : S&P futures vs fair value: -7.0. Nasdaq futures vs fair value: -17.2. A lower start is expected, although futures are trading above their worst levels. In economic news, the April S&P/Case-Shiller Home Price Index slipped 15.3% year-over-year, which is slightly better than the expected decline of 16%. Grocery store operate Kroger (KR) reported better-than-expected earnings, and raised the low end of its fiscal year 2009 earnings guidance.
08:31 am : S&P futures vs fair value: -8.2. Nasdaq futures vs fair value: -20.3. Futures continue to suggest a lower start to trade. Dow Chemical (DOW) announced that it is going to raise the price of its products by as much as an additional 25% in July to offset the spike in energy costs. It will also add a freight surcharge of $300 per truck and $600 per shipment by rail. Crude is trading up 0.9% to $138.00 per barrel.
08:25 am : S&P futures vs fair value: -7.3. Nasdaq futures vs fair value: -18.8.
08:00 am : S&P futures vs fair value: -9.5. Nasdaq futures vs fair value: -20.2. Futures suggest a sharply lower start to the trading session. UPS lowered its second quarter earnings outlook well below the consensus estimate. The company cited slow U.S. economic growth and the spike in fuel costs. The FOMC kicks off its two-day meeting today. The Fed is widely expected to keep the fed funds rate unchanged at 2.00%.
06:19 am : S&P futures vs fair value: -8.4. Nasdaq futures vs fair value: -21.0.
06:19 am : FTSE...5616.40...-50.80...-0.9%. DAX...6480.30...-109.16...-1.7%.
06:19 am : Nikkei...13849.56...-7.91...-0.1%. Hang Seng...22456.02...-258.94...-1.1%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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