AI
Wednesday, June 25, 2008 10:22:13 PM
Market Update 080625
http://biz.yahoo.com/mu/update.html
4:15 pm : The stock market ended the session with a decent-sized gain after some volatile action following the Fed's decision to leave the fed funds rate unchanged. The S&P 500 was up 0.8% ahead of the Fed announcement, climbed to a gain of 1.4% on its release and then settled the day up 0.6%.
The Fed left rates unchanged as expected, and its wording in the directive largely reiterated more hawkish comments leading up to the meeting from Fed Chairman Bernanke and other Fed officials. In its FOMC directive, the Fed said overall economic activity continues to expand, partially due to "firming" in household spending. However, the fed expects economic growth will face the burdens of tight credit conditions, housing contraction and the rise in energy prices.
The statement says that uncertainty over the inflation outlook remains high, although it expects inflation to "moderate later this year and next year." The FOMC feels that downside economic risks have somewhat diminished, while inflation risks have increased.
The Fed is likely to keep rates steady for quite a while, as economic growth will remain moderate at best for at least a few more meetings. Credit market conditions are also likely to remain fragile. These factors will inhibit any rate hikes. Addressing any uptick in inflation will not come immediately, particularly as the Fed expects inflation to moderate next year.
In corporate news, MasterCard (MA 289.79, +9.42) will pay American Express (AXP 40.94, -1.16) $1.8 billion after settling their antitrust litigation. American Express claimed that MasterCard illegally blocked AXP from the U.S. bank-issued card business.
Boeing (BA 69.64, -5.15) tumbled 7% on reports that it was added to a Conviction Sell List at Goldman Sachs, which cited economic concerns and fuel costs.
In terms of economic news, May durable orders were flat, matching expectations, while orders excluding transportation fell by a less-than-expected amount. The data will not alter economic perceptions of a moderately growing economy.
The decline in new home sales is leveling off after the steep fall in 2007 and early 2008. May new home sales fell 2.5% month-over-month on a seasonally adjusted annualized basis, which follows the upwardly revised 4.8% gain in April. The results are better than the expected drop of 2.7%. Homebuilding stocks ended the session nearly flat with a 0.2% gain.
Eight of the ten economic sectors advanced. The tech sector (+1.5%) led the way, with strength in large-cap names. The financial sector settled with a gain of 0.4%, after a steep retreat from its session high of 3.4%. The sector went on the defensive following the FOMC announcement.
The energy (-0.5%) and industrial sectors (-0.5%) were the main laggards.
Separately, crude prices settled the session down 1.9% to $134.43 after inventory stockpiles unexpected rose. Commodities as a whole fell 0.5%.DJ30 +4.40 NASDAQ +32.98 NQ100 +1.6% R2K +1.2% SP400 +0.6% SP500 +7.68 NASDAQ Adv/Vol/Dec 1820/2.14 bln/1031 NYSE Adv/Vol/Dec 2179/1.40 bln/950
3:35 pm : The major indices retreat off their recently reached session highs, although they still sport solid gains. The financial sector is seeing the bulk of the selling interest, which is now up only 0.3% after being up as much as 3.4%.
The tech sector (+2.0%) takes the leadership spot. Within tech, shares of Jabil Circuit (JBL 16.65, +2.32) are up 16% after the company reported better-than-expected earnings this morning.
Looking ahead, Nike (NKE 66.17, +0.16), Oracle (ORCL 22.69, +0.46) and Research In Motion (RIMM 140.98, +0.50) are notable names set to report their earnings after the close. Tomorrow morning, ConAgra (CAG 22.25, -0.67) and Discover Financial Services (DFS 13.97, -1.08) are among the eight companies reporting.DJ30 +35.09 NASDAQ +36.02 SP500 +11.83 NASDAQ Adv/Vol/Dec 1817/1.74 bln/1018 NYSE Adv/Vol/Dec 2219/1.07 bln/905
3:00 pm : The stock market sports solid gains in choppy trading as the market digests the FOMC statement. Crude is now down 1.9% to $134.47 per barrel after being down as much as 3.7%.
Nine of the ten economic sectors are in positive territory. Financials (+1.6%) gave up some of their advance, but it is being offset by the energy (-0.1%) and materials (+0.6%) sectors paring their losses.
Treasuries pared a good portion of their losses, with the 10-year note now down 7 ticks after being down more than 20 ticks.DJ30 +68.56 NASDAQ +37.26 SP500 +14.19 NASDAQ Adv/Vol/Dec 1833/1.51 bln/978 NYSE Adv/Vol/Dec 2282/921 mln/842
2:30 pm : The stock market climbs to session highs following the FOMC announcement, and then retreats to previous levels. The Fed left rates unchanged as expected, and its wording in the directive largely reiterated comments leading up to the meeting from Fed Chairman Bernanke and other Fed officials.
In its FOMC directive, the Fed said overall economic activity continues to expand, partially due to "firming" in household spending. However, the Fed noted that labor market have softened and financial markets remain under stress. The Fed expects economic growth will face the burdens of tight credit conditions, housing contraction and the rise in energy prices.
The statement says that uncertainty over the inflation outlook remains high, although it expects inflation to "moderate later this year and next year." The FOMC feels that downside economic risks have somewhat diminished, while inflation risks have increased.
The Fed is likely to keep rates steady for quite a while, as economic growth will remain moderate at best for at least a few more meetings. Credit market conditions are also likely to remain fragile. These factors will inhibit any rate hikes. Addressing any uptick in inflation will not come immediately, particularly as the Fed expects inflation to moderate next year.
Of note, Dallas Fed President Fisher dissented, preferring a rate increase of 25 basis points. Fisher dissented against previous rate cuts, citing inflation concerns.
DJ30 +24.18 NASDAQ +26.48 SP500 +9.09 NASDAQ Adv/Vol/Dec 1861/1.33 bln/936 NYSE Adv/Vol/Dec 2261/815 mln/854
2:10 pm : The FOMC announced that it held the fed funds and discount rates steady, as the market expected. The fed funds rate is at 2.00% and the discount rate is 2.25%.
The Fed said upside risks to inflation, and inflation expectations, has risen. However, the Fed still expects inflation to moderate and will act as needed to promote growth, and keep prices stable.
Briefing.com will have more insight at the bottom of the hour.DJ30 +75.56 NASDAQ +41.56 SP500 +15.26 NASDAQ Adv/Vol/Dec 1852/1.20 bln/929 NYSE Adv/Vol/Dec 2229/721 mln/878
1:55 pm : The stock market is holding in a relatively tight range ahead of the FOMC announcement, due in roughly 15 minutes.
The decision will be a closely-watched event given shifting expectations in the market that have followed tough talk of late from Fed officials on the need to keep inflation expectations in check. The Fed is widely expected to leave the fed funds rate unchanged at 2.00%, so what the Fed says in its policy directive will be the trading catalyst for the market.
Specifically, fed fund futures imply a 90% chance rates will remain unchanged, and a 10% chance of a 25 basis point increase. Nearly all economists expect rates will remain unchanged.DJ30 +44.62 NASDAQ +32.66 SP500 +11.16 NASDAQ Adv/Vol/Dec 1824/1.15 bln/955 NYSE Adv/Vol/Dec 2235/692 mln/865
1:35 pm : The stock market continues to sport a solid gain, though off its best level of the session. The S&P 500 is currently up 0.9%, down a bit from the 1.1% advance it was boasting earlier in the session.
Seven of the ten economic sectors are trading in the green.
Financials (+2.0%) continue to extend yesterday's gains. Dow Jones components Bank of America (27.25, +0.63) and Citigroup (C 19.39, +0.54) are outpacing fellow components.DJ30 +48.69 NASDAQ +33.73 SP500 +11.41 NASDAQ Adv/Vol/Dec 1.08 bln/865/1815 NYSE Adv/Vol/Dec 653 mln/4.15%/2230
1:20 pm : The stock market heads toward session highs as market participants await the the Fed's announcement at 2:15 ET.
Market breadth bullish with advancers outpacing decliners by 13-to-5 on the NYSE, and by 2-to-1 on the Nasdaq. Volume is roughly average, although trading activity will pick up after the FOMC release.DJ30 +62.04 NASDAQ +35.75 SP500 +12.50 NASDAQ Adv/Vol/Dec 1837/1.04 bln/928 NYSE Adv/Vol/Dec 2236/629 mln/849
12:35 pm : The stock market climbs toward its session high. The materials sector (-1.1%) is underperforming. Agriculture company Monsanto (MON 128.11, -7.68) reported better-than-expected earnings and raised its 2008 earnings outlook. However, shares are down 5.6% as investors take some profits following the stock's 22% gain since late April.
The 1.5% drop in commodities is also weighing on material stocks. Crude is down 2.9% and gold is down 1.4%.DJ30 +64.73 NASDAQ +39.10 SP500 +13.06 NASDAQ Adv/Vol/Dec 1834/905 mln/892 NYSE Adv/Vol/Dec 2235/550 mln/830
12:00 pm : The stock market posts a hefty advance ahead of the FOMC policy announcement at 2:15 ET. The bullish sentiment is fueled by strong gains in financial stocks, better-than-expected economic data and a steep drop in crude prices.
Of course, how the session ends will depend on the reaction to the Fed's policy statement. The Fed is expected to leave rates unchanged at 2.00%, and its directive is likely to highlight the importance of keeping inflation in check.
The major indices climbed to session highs after crude prices (-3.0% at $132.90) retreated in response to an unexpected inventory increase. Energy stocks (-2.1%) are under selling pressure, although refining stocks (+2.5%) are getting a lift on the prospect of improved margins.
The dip in crude prices is lifting energy price sensitive areas, with consumer discretionary up 2.7% and the Amex Airline Index advancing 6.1%.
Eight of the ten economic sectors are posting a gain, led by the beaten-down financial sector (+2.2%). European banks Barclays (BCS 26.01, +1.30) and UBS (UBS 22.93, +0.90) are posting hefty increases. Barclays is raising nearly $9 billion in fresh capital according to reports, and UBS hired Lazard to perform a strategic review of its businesses, according to the New York Post.
In terms of economic news, May durable orders were flat, matching expectations, while orders excluding transportation fell by a less-than-expected amount. The data will not alter economic perceptions of a moderately growing economy.
The decline in new home sales is leveling off after the steep fall in 2007 and early 2008. May new home sales fell 2.5% month-over-month on a seasonally adjusted annualized basis, which follows the upwardly revised 4.8% gain in April. The results are better than the expected drop of 2.7%. Homebuilding stocks are up 4%. DJ30 +50.48 NASDAQ +33.39 SP500 +11.46 NASDAQ Adv/Vol/Dec 1838/791 mln/858 NYSE Adv/Vol/Dec 2204/484 mln/829
11:35 am : The major indices hold near session highs. Within the S&P 500, 83% of stocks are posting a gain -- nearly half of the stocks in the red are energy names (-2.1%).
Treasuries are out of favor, with the 10-year note falling 18 ticks, sending its yield up to 4.15%.DJ30 +70.27 NASDAQ +37.80 SP500 +13.16 NASDAQ Adv/Vol/Dec 1874/705 mln/799 NYSE Adv/Vol/Dec 2223/430 mln/786
11:00 am : The major indices extend their gains as crude prices retreat to a loss of 3.2% following the unexpected increase in crude inventory levels. Eight of the ten sectors are posting a gain, led by a 3.3% surge in financials and a 2.7% gain in consumer discretionary. Both sectors have underperformed this month.
The energy sector is the main laggard with a loss of 2.4% as crude prices slip. Oil and gas producers are down 4.5% and oil equipment and service providers are down 3.6%. However, refiners (+0.9%) are seeing a modest gain as lower crude prices mean better gasoline margins.DJ30 +71.81 NASDAQ +38.21 SP500 +12.87 NASDAQ Adv/Vol/Dec 1845/533 mln/754 NYSE Adv/Vol/Dec 2194/320 mln/766
10:35 am : Crude inventories for the week ended June 21 unexpectedly rose 803,000 barrels, compared to the expected decline of 1.1 million. Just prior to the release, Crude was trading down 1.0% to $135.69 per barrel.
Stocks bounce to session highs on the crude data. The Dow is up 0.4%, underperforming the S&P 500's gain of 0.8%.
Boeing (BA 70.62, -4.17) is the largest drag on the Dow, falling more than 5%. According to reports, Boeing was added to the Conviction Sell List at Goldman Sachs, citing the weak economy and record fuel prices. American Express (AXP 41.70, -0.40) is also in the news, after announcing it will receive $1.8 billion from MasterCard (MA 293.94, +13.57) after settling an antitrust lawsuit. American Express claimed that MasterCard had illegally blocked AXP from the U.S. bank-issued card business. AXP had previously settled its lawsuit with Visa (V 83.89, +1.23) for $2.25 billion.DJ30 +51.05 NASDAQ +30.11 SP500 +11.08 NASDAQ Adv/Vol/Dec 1743/413 mln/814 NYSE Adv/Vol/Dec 2104/247 mln/825
10:05 am : The major indices extend their opening gains and get an additional boost on the release of a better-than-expected housing report.
Just hitting the wires, the Department of Commerce said May new home sales fell 2.5% month-over-month on a seasonally adjusted annualized basis, which follows the upwardly revised 4.8% gain in April. The results are slightly better than the median estimate that called for a drop of 2.7%. The current level of new home sales, at 512,000, is down 40% from the previous year.
The financial sector is up 2.1%. European banks Barclays (BCS 26.17, +1.47) and UBS (UBS 22.77, +0.74) are posting hefty increases. Barclays is raising nearly $9 billion in fresh capital according to reports, and UBS hired Lazard to perform a strategic review of its businesses, according to the New York Post.DJ30 +45.27 NASDAQ +24.37 SP500 +10.38 NASDAQ Adv/Vol/Dec 1581/225 mln/810 NYSE Adv/Vol/Dec 1956/136 mln/846
09:40 am : The stock market opens on a positive note ahead of the FOMC policy announcement at 2:15 ET. The Fed is expected to leave rates unchanged at 2.00%, and its directive is likely to highlight the importance of keeping inflation in check.
In corporate news, agriculture company Monsanto (MON 130.86, -4.92) topped its earnings expectations and raised its 2008 earnings guidance. General Mills (GIS 62.15, -0.27) reported in-line earnings, but issued downside guidance for fiscal year 2009.
Boeing (BA 71.76, -3.02) is down 4% after being added to the Conviction Sell List at Goldman Sachs, according to reports.
In economic news, May durable orders were flat, matching expectations. The data will not alter economic perceptions of a moderately growing economy.DJ30 +36.41 NASDAQ +18.60 SP500 +7.71 NASDAQ Adv/Vol/Dec 1404/91 mln/746 NYSE Adv/Vol/Dec 1699/62 mln/884
09:15 am : S&P futures vs fair value: +5.1. Nasdaq futures vs fair value: +9.3.
09:01 am : S&P futures vs fair value: +6.2. Nasdaq futures vs fair value: +11.7. Futures are trading near their best levels of the session. According to reports, Goldman Sachs downgraded Boeing (BA) to Sell from Neutral and added the Dow component to its Conviction Sell list. Best Buy (BBY) is increasing its quarterly dividend 8% to $0.14 per share.
08:30 am : S&P futures vs fair value: +6.6. Nasdaq futures vs fair value: +10.5. Futures get a slight boost from the May durable goods report. Just reported, durable good orders in May were unchanged, matching estimates, which follows the 1.0% drop in April. Excluding transportation, orders fell 0.9%, slighty better than the expected 1.0% drop. Agriculture company Monsanto (MON) reported earnings of $1.45 per share, which is $0.11 better than expectations. The company also raised its fiscal year 2008 guidance. MasterCard (MA) will take a second quarter after-tax charge of roughly $1 billion after settling its litigation with American Express (AXP).
08:00 am : S&P futures vs fair value: +5.8. Nasdaq futures vs fair value: +10.0. Futures point to a higher start ahead of the FOMC policy announcement at 2:15 ET. Fed fund futures suggest a 90% chance the Fed will leave rates unchanged at 2.00%, and a 10% chance of a 25 basis point increase. In earnings news, General Mills (GIS) reported in-line quarterly results, but issued downside guidance for fiscal year 2009. Darden Restaurants (DRI) topped expectations. On the economic front, market participants await the durable orders (8:30 ET) and new home sales (10:00 ET) reports. Crude oil is trading down 0.2% to $136.74 ahead of the government's weekly energy inventory report at 10:35 ET.
06:31 am : S&P futures vs fair value: +6.6. Nasdaq futures vs fair value: +6.8.
06:30 am : FTSE...5657.40...+22.70...+0.4%. DAX...6589.25...+53.19...+0.8%.
06:30 am : Nikkei...13829.92...-19.64...-0.1%. Hang Seng...22635.16...+179.14...+0.8%.
01:00 am : The major indices trade slightly below session highs as market participants await the Fed's announcement at 2:15 ET.
Market breadth is bullish, with advancers outpace decliners by 7-to-3 on the NYSE and by 2-to-1 on the Nasdaq. Volume thus far is roughly average, although trading will pick up after the Fed's policy announcement.DJ30 +50.56 NASDAQ +35.26 SP500 +11.25 NASDAQ Adv/Vol/Dec 1831/977 mln/917 NYSE Adv/Vol/Dec 2211/592 mln/862
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 ended the session with a decent-sized gain after some volatile action following the Fed's decision to leave the fed funds rate unchanged. The S&P 500 was up 0.8% ahead of the Fed announcement, climbed to a gain of 1.4% on its release and then settled the day up 0.6%.
The Fed left rates unchanged as expected, and its wording in the directive largely reiterated more hawkish comments leading up to the meeting from Fed Chairman Bernanke and other Fed officials. In its FOMC directive, the Fed said overall economic activity continues to expand, partially due to "firming" in household spending. However, the fed expects economic growth will face the burdens of tight credit conditions, housing contraction and the rise in energy prices.
The statement says that uncertainty over the inflation outlook remains high, although it expects inflation to "moderate later this year and next year." The FOMC feels that downside economic risks have somewhat diminished, while inflation risks have increased.
The Fed is likely to keep rates steady for quite a while, as economic growth will remain moderate at best for at least a few more meetings. Credit market conditions are also likely to remain fragile. These factors will inhibit any rate hikes. Addressing any uptick in inflation will not come immediately, particularly as the Fed expects inflation to moderate next year.
In corporate news, MasterCard (MA 289.79, +9.42) will pay American Express (AXP 40.94, -1.16) $1.8 billion after settling their antitrust litigation. American Express claimed that MasterCard illegally blocked AXP from the U.S. bank-issued card business.
Boeing (BA 69.64, -5.15) tumbled 7% on reports that it was added to a Conviction Sell List at Goldman Sachs, which cited economic concerns and fuel costs.
In terms of economic news, May durable orders were flat, matching expectations, while orders excluding transportation fell by a less-than-expected amount. The data will not alter economic perceptions of a moderately growing economy.
The decline in new home sales is leveling off after the steep fall in 2007 and early 2008. May new home sales fell 2.5% month-over-month on a seasonally adjusted annualized basis, which follows the upwardly revised 4.8% gain in April. The results are better than the expected drop of 2.7%. Homebuilding stocks ended the session nearly flat with a 0.2% gain.
Eight of the ten economic sectors advanced. The tech sector (+1.5%) led the way, with strength in large-cap names. The financial sector settled with a gain of 0.4%, after a steep retreat from its session high of 3.4%. The sector went on the defensive following the FOMC announcement.
The energy (-0.5%) and industrial sectors (-0.5%) were the main laggards.
Separately, crude prices settled the session down 1.9% to $134.43 after inventory stockpiles unexpected rose. Commodities as a whole fell 0.5%.DJ30 +4.40 NASDAQ +32.98 NQ100 +1.6% R2K +1.2% SP400 +0.6% SP500 +7.68 NASDAQ Adv/Vol/Dec 1820/2.14 bln/1031 NYSE Adv/Vol/Dec 2179/1.40 bln/950
3:35 pm : The major indices retreat off their recently reached session highs, although they still sport solid gains. The financial sector is seeing the bulk of the selling interest, which is now up only 0.3% after being up as much as 3.4%.
The tech sector (+2.0%) takes the leadership spot. Within tech, shares of Jabil Circuit (JBL 16.65, +2.32) are up 16% after the company reported better-than-expected earnings this morning.
Looking ahead, Nike (NKE 66.17, +0.16), Oracle (ORCL 22.69, +0.46) and Research In Motion (RIMM 140.98, +0.50) are notable names set to report their earnings after the close. Tomorrow morning, ConAgra (CAG 22.25, -0.67) and Discover Financial Services (DFS 13.97, -1.08) are among the eight companies reporting.DJ30 +35.09 NASDAQ +36.02 SP500 +11.83 NASDAQ Adv/Vol/Dec 1817/1.74 bln/1018 NYSE Adv/Vol/Dec 2219/1.07 bln/905
3:00 pm : The stock market sports solid gains in choppy trading as the market digests the FOMC statement. Crude is now down 1.9% to $134.47 per barrel after being down as much as 3.7%.
Nine of the ten economic sectors are in positive territory. Financials (+1.6%) gave up some of their advance, but it is being offset by the energy (-0.1%) and materials (+0.6%) sectors paring their losses.
Treasuries pared a good portion of their losses, with the 10-year note now down 7 ticks after being down more than 20 ticks.DJ30 +68.56 NASDAQ +37.26 SP500 +14.19 NASDAQ Adv/Vol/Dec 1833/1.51 bln/978 NYSE Adv/Vol/Dec 2282/921 mln/842
2:30 pm : The stock market climbs to session highs following the FOMC announcement, and then retreats to previous levels. The Fed left rates unchanged as expected, and its wording in the directive largely reiterated comments leading up to the meeting from Fed Chairman Bernanke and other Fed officials.
In its FOMC directive, the Fed said overall economic activity continues to expand, partially due to "firming" in household spending. However, the Fed noted that labor market have softened and financial markets remain under stress. The Fed expects economic growth will face the burdens of tight credit conditions, housing contraction and the rise in energy prices.
The statement says that uncertainty over the inflation outlook remains high, although it expects inflation to "moderate later this year and next year." The FOMC feels that downside economic risks have somewhat diminished, while inflation risks have increased.
The Fed is likely to keep rates steady for quite a while, as economic growth will remain moderate at best for at least a few more meetings. Credit market conditions are also likely to remain fragile. These factors will inhibit any rate hikes. Addressing any uptick in inflation will not come immediately, particularly as the Fed expects inflation to moderate next year.
Of note, Dallas Fed President Fisher dissented, preferring a rate increase of 25 basis points. Fisher dissented against previous rate cuts, citing inflation concerns.
DJ30 +24.18 NASDAQ +26.48 SP500 +9.09 NASDAQ Adv/Vol/Dec 1861/1.33 bln/936 NYSE Adv/Vol/Dec 2261/815 mln/854
2:10 pm : The FOMC announced that it held the fed funds and discount rates steady, as the market expected. The fed funds rate is at 2.00% and the discount rate is 2.25%.
The Fed said upside risks to inflation, and inflation expectations, has risen. However, the Fed still expects inflation to moderate and will act as needed to promote growth, and keep prices stable.
Briefing.com will have more insight at the bottom of the hour.DJ30 +75.56 NASDAQ +41.56 SP500 +15.26 NASDAQ Adv/Vol/Dec 1852/1.20 bln/929 NYSE Adv/Vol/Dec 2229/721 mln/878
1:55 pm : The stock market is holding in a relatively tight range ahead of the FOMC announcement, due in roughly 15 minutes.
The decision will be a closely-watched event given shifting expectations in the market that have followed tough talk of late from Fed officials on the need to keep inflation expectations in check. The Fed is widely expected to leave the fed funds rate unchanged at 2.00%, so what the Fed says in its policy directive will be the trading catalyst for the market.
Specifically, fed fund futures imply a 90% chance rates will remain unchanged, and a 10% chance of a 25 basis point increase. Nearly all economists expect rates will remain unchanged.DJ30 +44.62 NASDAQ +32.66 SP500 +11.16 NASDAQ Adv/Vol/Dec 1824/1.15 bln/955 NYSE Adv/Vol/Dec 2235/692 mln/865
1:35 pm : The stock market continues to sport a solid gain, though off its best level of the session. The S&P 500 is currently up 0.9%, down a bit from the 1.1% advance it was boasting earlier in the session.
Seven of the ten economic sectors are trading in the green.
Financials (+2.0%) continue to extend yesterday's gains. Dow Jones components Bank of America (27.25, +0.63) and Citigroup (C 19.39, +0.54) are outpacing fellow components.DJ30 +48.69 NASDAQ +33.73 SP500 +11.41 NASDAQ Adv/Vol/Dec 1.08 bln/865/1815 NYSE Adv/Vol/Dec 653 mln/4.15%/2230
1:20 pm : The stock market heads toward session highs as market participants await the the Fed's announcement at 2:15 ET.
Market breadth bullish with advancers outpacing decliners by 13-to-5 on the NYSE, and by 2-to-1 on the Nasdaq. Volume is roughly average, although trading activity will pick up after the FOMC release.DJ30 +62.04 NASDAQ +35.75 SP500 +12.50 NASDAQ Adv/Vol/Dec 1837/1.04 bln/928 NYSE Adv/Vol/Dec 2236/629 mln/849
12:35 pm : The stock market climbs toward its session high. The materials sector (-1.1%) is underperforming. Agriculture company Monsanto (MON 128.11, -7.68) reported better-than-expected earnings and raised its 2008 earnings outlook. However, shares are down 5.6% as investors take some profits following the stock's 22% gain since late April.
The 1.5% drop in commodities is also weighing on material stocks. Crude is down 2.9% and gold is down 1.4%.DJ30 +64.73 NASDAQ +39.10 SP500 +13.06 NASDAQ Adv/Vol/Dec 1834/905 mln/892 NYSE Adv/Vol/Dec 2235/550 mln/830
12:00 pm : The stock market posts a hefty advance ahead of the FOMC policy announcement at 2:15 ET. The bullish sentiment is fueled by strong gains in financial stocks, better-than-expected economic data and a steep drop in crude prices.
Of course, how the session ends will depend on the reaction to the Fed's policy statement. The Fed is expected to leave rates unchanged at 2.00%, and its directive is likely to highlight the importance of keeping inflation in check.
The major indices climbed to session highs after crude prices (-3.0% at $132.90) retreated in response to an unexpected inventory increase. Energy stocks (-2.1%) are under selling pressure, although refining stocks (+2.5%) are getting a lift on the prospect of improved margins.
The dip in crude prices is lifting energy price sensitive areas, with consumer discretionary up 2.7% and the Amex Airline Index advancing 6.1%.
Eight of the ten economic sectors are posting a gain, led by the beaten-down financial sector (+2.2%). European banks Barclays (BCS 26.01, +1.30) and UBS (UBS 22.93, +0.90) are posting hefty increases. Barclays is raising nearly $9 billion in fresh capital according to reports, and UBS hired Lazard to perform a strategic review of its businesses, according to the New York Post.
In terms of economic news, May durable orders were flat, matching expectations, while orders excluding transportation fell by a less-than-expected amount. The data will not alter economic perceptions of a moderately growing economy.
The decline in new home sales is leveling off after the steep fall in 2007 and early 2008. May new home sales fell 2.5% month-over-month on a seasonally adjusted annualized basis, which follows the upwardly revised 4.8% gain in April. The results are better than the expected drop of 2.7%. Homebuilding stocks are up 4%. DJ30 +50.48 NASDAQ +33.39 SP500 +11.46 NASDAQ Adv/Vol/Dec 1838/791 mln/858 NYSE Adv/Vol/Dec 2204/484 mln/829
11:35 am : The major indices hold near session highs. Within the S&P 500, 83% of stocks are posting a gain -- nearly half of the stocks in the red are energy names (-2.1%).
Treasuries are out of favor, with the 10-year note falling 18 ticks, sending its yield up to 4.15%.DJ30 +70.27 NASDAQ +37.80 SP500 +13.16 NASDAQ Adv/Vol/Dec 1874/705 mln/799 NYSE Adv/Vol/Dec 2223/430 mln/786
11:00 am : The major indices extend their gains as crude prices retreat to a loss of 3.2% following the unexpected increase in crude inventory levels. Eight of the ten sectors are posting a gain, led by a 3.3% surge in financials and a 2.7% gain in consumer discretionary. Both sectors have underperformed this month.
The energy sector is the main laggard with a loss of 2.4% as crude prices slip. Oil and gas producers are down 4.5% and oil equipment and service providers are down 3.6%. However, refiners (+0.9%) are seeing a modest gain as lower crude prices mean better gasoline margins.DJ30 +71.81 NASDAQ +38.21 SP500 +12.87 NASDAQ Adv/Vol/Dec 1845/533 mln/754 NYSE Adv/Vol/Dec 2194/320 mln/766
10:35 am : Crude inventories for the week ended June 21 unexpectedly rose 803,000 barrels, compared to the expected decline of 1.1 million. Just prior to the release, Crude was trading down 1.0% to $135.69 per barrel.
Stocks bounce to session highs on the crude data. The Dow is up 0.4%, underperforming the S&P 500's gain of 0.8%.
Boeing (BA 70.62, -4.17) is the largest drag on the Dow, falling more than 5%. According to reports, Boeing was added to the Conviction Sell List at Goldman Sachs, citing the weak economy and record fuel prices. American Express (AXP 41.70, -0.40) is also in the news, after announcing it will receive $1.8 billion from MasterCard (MA 293.94, +13.57) after settling an antitrust lawsuit. American Express claimed that MasterCard had illegally blocked AXP from the U.S. bank-issued card business. AXP had previously settled its lawsuit with Visa (V 83.89, +1.23) for $2.25 billion.DJ30 +51.05 NASDAQ +30.11 SP500 +11.08 NASDAQ Adv/Vol/Dec 1743/413 mln/814 NYSE Adv/Vol/Dec 2104/247 mln/825
10:05 am : The major indices extend their opening gains and get an additional boost on the release of a better-than-expected housing report.
Just hitting the wires, the Department of Commerce said May new home sales fell 2.5% month-over-month on a seasonally adjusted annualized basis, which follows the upwardly revised 4.8% gain in April. The results are slightly better than the median estimate that called for a drop of 2.7%. The current level of new home sales, at 512,000, is down 40% from the previous year.
The financial sector is up 2.1%. European banks Barclays (BCS 26.17, +1.47) and UBS (UBS 22.77, +0.74) are posting hefty increases. Barclays is raising nearly $9 billion in fresh capital according to reports, and UBS hired Lazard to perform a strategic review of its businesses, according to the New York Post.DJ30 +45.27 NASDAQ +24.37 SP500 +10.38 NASDAQ Adv/Vol/Dec 1581/225 mln/810 NYSE Adv/Vol/Dec 1956/136 mln/846
09:40 am : The stock market opens on a positive note ahead of the FOMC policy announcement at 2:15 ET. The Fed is expected to leave rates unchanged at 2.00%, and its directive is likely to highlight the importance of keeping inflation in check.
In corporate news, agriculture company Monsanto (MON 130.86, -4.92) topped its earnings expectations and raised its 2008 earnings guidance. General Mills (GIS 62.15, -0.27) reported in-line earnings, but issued downside guidance for fiscal year 2009.
Boeing (BA 71.76, -3.02) is down 4% after being added to the Conviction Sell List at Goldman Sachs, according to reports.
In economic news, May durable orders were flat, matching expectations. The data will not alter economic perceptions of a moderately growing economy.DJ30 +36.41 NASDAQ +18.60 SP500 +7.71 NASDAQ Adv/Vol/Dec 1404/91 mln/746 NYSE Adv/Vol/Dec 1699/62 mln/884
09:15 am : S&P futures vs fair value: +5.1. Nasdaq futures vs fair value: +9.3.
09:01 am : S&P futures vs fair value: +6.2. Nasdaq futures vs fair value: +11.7. Futures are trading near their best levels of the session. According to reports, Goldman Sachs downgraded Boeing (BA) to Sell from Neutral and added the Dow component to its Conviction Sell list. Best Buy (BBY) is increasing its quarterly dividend 8% to $0.14 per share.
08:30 am : S&P futures vs fair value: +6.6. Nasdaq futures vs fair value: +10.5. Futures get a slight boost from the May durable goods report. Just reported, durable good orders in May were unchanged, matching estimates, which follows the 1.0% drop in April. Excluding transportation, orders fell 0.9%, slighty better than the expected 1.0% drop. Agriculture company Monsanto (MON) reported earnings of $1.45 per share, which is $0.11 better than expectations. The company also raised its fiscal year 2008 guidance. MasterCard (MA) will take a second quarter after-tax charge of roughly $1 billion after settling its litigation with American Express (AXP).
08:00 am : S&P futures vs fair value: +5.8. Nasdaq futures vs fair value: +10.0. Futures point to a higher start ahead of the FOMC policy announcement at 2:15 ET. Fed fund futures suggest a 90% chance the Fed will leave rates unchanged at 2.00%, and a 10% chance of a 25 basis point increase. In earnings news, General Mills (GIS) reported in-line quarterly results, but issued downside guidance for fiscal year 2009. Darden Restaurants (DRI) topped expectations. On the economic front, market participants await the durable orders (8:30 ET) and new home sales (10:00 ET) reports. Crude oil is trading down 0.2% to $136.74 ahead of the government's weekly energy inventory report at 10:35 ET.
06:31 am : S&P futures vs fair value: +6.6. Nasdaq futures vs fair value: +6.8.
06:30 am : FTSE...5657.40...+22.70...+0.4%. DAX...6589.25...+53.19...+0.8%.
06:30 am : Nikkei...13829.92...-19.64...-0.1%. Hang Seng...22635.16...+179.14...+0.8%.
01:00 am : The major indices trade slightly below session highs as market participants await the Fed's announcement at 2:15 ET.
Market breadth is bullish, with advancers outpace decliners by 7-to-3 on the NYSE and by 2-to-1 on the Nasdaq. Volume thus far is roughly average, although trading will pick up after the Fed's policy announcement.DJ30 +50.56 NASDAQ +35.26 SP500 +11.25 NASDAQ Adv/Vol/Dec 1831/977 mln/917 NYSE Adv/Vol/Dec 2211/592 mln/862
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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