Friday, June 27, 2008 11:06:27 PM
Market Update 080627
http://biz.yahoo.com/mu/update.html
4:15 pm : Friday’s record oil prices fed the dour mood on Wall Street and cast a shadow on positive consumer spending data. In turn, the major indices each closed lower, extending the week's losses. Week-to-date, the S&P 500 lost 2.9%, the Dow Jones Industrials Average lost 4.1%, and the Nasdaq fell 3.8%.
Crude prices rallied all the way to $142.99 per barrel to set a new all-time intraday high. In the end, prices eased as oil closed slightly higher at $140.25 per barrel on the Nymex. Crude prices are up more than 45% year-to-date.
Financials finished the session as the worst performing sector. The sector closed 1.3% lower, as every one of its industry components finished lower, except insurance brokers (+1.9%). For the week, financials lost 6.5%. Merrill Lynch (MER 32.70, -0.35) grabbed its share of attention as reports indicated the firm may incur additional write-downs and may sell its stake in BlackRock (BLK 177.64, -3.06). Speculation of write-downs had limited affect on shares of MER, given that Goldman Sachs made the same inference yesterday. On a similar note, American International Group (AIG 27.69, -0.40) will likely be hit with write-downs of its own, which may result in a loss, according to Bloomberg.com.
On the earnings front, Accenture (ACN 41.27, +2.42) reported better-than-expected results for its most recent fiscal quarter. The company also issued upside guidance for the coming quarter and increased its full-year outlook. That was about the extent of the day's positive earnings news as Micron Technology (MU 6.10, -0.89) and KB Home (KBH 17.72, -0.41) reported larger-than-expected losses for the latest quarter.
According to Financial Times, InBev is making a hostile bid for Anheuser-Busch (BUD 62.26, +0.91) after Anheuser-Busch rejected the Belgian brewer’s offer for being inadequate and contrary to shareholders’ best interest.
The day's primary economic release was largely overlooked. Real personal consumption expenditures (PCE) data for May were up 0.4%. April was revised upward to a 0.2% increase. In turn, the second quarter average of April and May data 0.5% above the first quarter average, which is already a 2% annual rate of growth. Since another gain is likely in June, due to spending resulting from the fiscal stimulus, this puts real PCE on track to post a 2.5% annual rate of growth in the second quarter. Recall, PCE represents approximately 70% of GDP.
The University of Michigan’s final consumer confidence survey for June came in at 56.4, which is a bit below expectations and last month's reading. The June reading marks a new multiyear low. Note that the depressed survey results do not coincide with a similar drop in PCE.DJ30 -106.91 NASDAQ -5.74 NQ100 +0.0% R2K -0.0% SP400 -0.4% SP500 -4.77 NASDAQ Adv/Vol/Dec 1154/3.15 bln/1735 NYSE Adv/Vol/Dec 1165/2.24 bln/1969
3:35 pm : Investors head into the week's final leg of trading with little motivation to buy. The major indices remain in the red.
The session's weakness has been largely broad-based as seven of the ten economic sectors are facing a loss. More than 470 stocks on the NYSE are trading at their 52-week lows.
The greenback is trading lower, as indicated by the dollar index, which is down 0.2% to 72.4. Gold moved higher, yet again. The commodity closed the session up $16.60 at $931.70 per hounce. Oil also finished its session higher, settling at $140.25 per barrel.DJ30 -112.04 NASDAQ -11.04 SP500 -6.16 NASDAQ Adv/Vol/Dec 1068/1.84 bln/1807 NYSE Adv/Vol/Dec 1122/1.09 bln/2010
3:00 pm : Resistance picked up as the stock market climbed from session lows to hit the unchanged mark. The stock market is back to trading with a modest loss.
Week-to-date, the S&P 500 is down 2.8%, the Dow Jones Industrials Average is down 3.9%, and the Nasdaq is down 3.8%.
Notably, the Nasdaq is the only major index with a quarter-to-date gain, up roughly 1.6%, though each of the major indices continues to sport a year-to-date loss. Thus far in 2008, the S&P 500 is down 12.8%, the Dow is down 14.2%, and the Nasdaq is down 12.7%.DJ30 -89.32 NASDAQ -8.24 SP500 -3.52 NASDAQ Adv/Vol/Dec 1073/1.61 bln/1791 NYSE Adv/Vol/Dec 1141/957 mln/1971
2:30 pm : As crude prices pull back from $142 per barrel the stock market is making a charge back toward the neutral line.
Dow Jones reports that Fitch Ratings has put Wachovia (WB 16.47, -0.45) on rating watch negative in light of continued headwinds facing U.S. consumer asset quality and indications of further meaningful home price deterioration in certain markets. DJ30 -59.52 NASDAQ -5.66 SP500 -0.17 NASDAQ Adv/Vol/Dec 1125/1.48 bln/1721 NYSE Adv/Vol/Dec 1232/883 mln/1868
2:05 pm : After extending earlier losses, the major indices are pulling off their session low. Nonetheless, the preceding dip pushed the Dow Jones Industrials Average to a new 52-week low.
Only two of the major economic sectors are showing gains, while four of the sectors are showing losses in excess of 1%.
Crude made its way to a new intraday record high, climbing to $142.93 per barrel, which reflects an advance of nearly 2.4%.DJ30 -128.81 NASDAQ -24.22 SP500 -8.02 NASDAQ Adv/Vol/Dec 916/1.30 bln/1923 NYSE Adv/Vol/Dec 955/789 mln/2136
1:30 pm : Selling has intensified as each of the major indices has fallen to new session lows. The Dow Jones Industrials Average and the Nasdaq are trading with losses of 1%.
70% of the S&P 500 components are now trading with losses.
Financials continue to show weakness. The sector is down 1.9%, worse than any other economic sector. Each of its industry components is trading with a loss, except for insurance brokers (+1.5%).
Interest in Treasuries has intensified. The benchmark 10-year Note is up 19 ticks and yielding less than 4.00%.DJ30 -117.17 NASDAQ -24.20 SP500 -7.96 NASDAQ Adv/Vol/Dec 900/1.16 bln/1902 NYSE Adv/Vol/Dec 970/706 mln/2093
1:00 pm : Buyers are having a difficult time putting together a sustainable rally. The S&P 500 has surrendered its earlier advance and joined its counterparts in the red.
Small- and mid-cap stocks are also out of favor. The Russell 2000 is down 0.4% and the S&P 400 is down 0.3% this session.
Energy (+1.0%) continues to show relative strength, despite the session's dampened mood. Exxon Mobil (XOM 86.95, +0.54) is currently providing leadership to the sector.DJ30 -72.39 NASDAQ -13.42 SP500 -2.91 NASDAQ Adv/Vol/Dec 959/1.03 bln/1817 NYSE Adv/Vol/Dec 1092/630 mln/1962
12:30 pm : The S&P 500 has made its way back to the unchanged mark in choppy fashion. Its counterparts, however, are still in the red.
Forestry and wood product company Weyerhauser (WY 50.27, +0.08) announced it will incur pretax charges ranging from $300 million to $325 million related to lowered real estate prices or impairments.
Energy, healthcare, and materials are the only three sectors sporting a gain this session. All three sectors have advanced 1.0% or more.DJ30 -43.46 NASDAQ -5.39 SP500 +0.80 NASDAQ Adv/Vol/Dec 1017/911 mln/1739 NYSE Adv/Vol/Dec 1198/559 mln/1825
12:00 pm : All three of the major indices are trading with losses at midday, extending the week’s decline. Record oil prices are helping dampen investors’ spirits and overshadowing positive economic data; crude took out another intraday record high of more than $142 per barrel in early trading.
Friday’s weakness has been relatively broad-based with seven of the ten major economic sectors sporting losses. Financials have been a notable laggard, down 0.8%.
Reports are indicating Merrill Lynch (MER 32.92, -0.13) may incur additional write-downs just a day after a similar assessment was made by Goldman Sachs. In like manner, American International Group (AIG 27.59, -0.50) will likely face valuation adjustments of its own, according to Bloomberg.com. The report indicated the financial behemoth may report a quarterly loss as a result of write-downs from its insurance units.
On the earnings front, Accenture (ACN 40.92, +2.07) reported better-than-expected results for its most recent fiscal quarter. The company also issued upside guidance for the coming quarter and increased its full-year outlook. At the other end of the spectrum, Micron Technology (MU 6.31, -0.68) and KB Home (KBH 17.33, -0.80) reported losses that were worse than analysts anticipated.
The board of Anheuser-Busch (BUD 62.65, +1.30) has rejected InBev's takeover offer, stating it is inadequate and not in shareholders’ best interest. According to Financial Times, InBev is now taking its bid directly shareholders in a hostile takeover attempt.
The day's primary economic release offered a dose of positive news. Real personal consumption expenditures (PCE) data for May were up 0.4%. April was revised upward to a 0.2% increase. This puts the second quarter average of April and May 0.5% above the first quarter average, which is already a 2% annual rate of growth. Another gain is likely in June, due to spending resulting from the fiscal stimulus. In turn, this puts real PCE on track to post a 2.5% annual rate of growth in the second quarter. Recall, PCE represents approximately 70% of GDP.
The University of Michigan’s final consumer confidence survey for June came in at 56.4, which is a bit below expectations and last month's reading. The June reading marks a new multiyear low. The depressed consumer confidence survey contrasts with the aforementioned increase in PCE.DJ30 -49.34 NASDAQ -11.51 SP500 -1.12 NASDAQ Adv/Vol/Dec 949/806 mln/1792 NYSE Adv/Vol/Dec 1127/497 mln/1895
11:35 am : The stock market has moved upward toward the unchanged mark. Still, seven of the ten economic sectors are in the red. Decliners on the NYSE outnumber advancers by nearly 2-to-1.
A couple of players in the telecom arena were given uninspiring marks by analysts at Credit Suisse. Credit Suisse downtraded shares of handset maker Nokia (NOK 24.32, -0.74) to Neutral from Outperform. The firm also initiated coverage of Motorola (MOT 7.22, -0.08) with an Underperform grade.
DJ30 -59.20 NASDAQ -10.31 SP500 -1.70 NASDAQ Adv/Vol/Dec 965/722 mln/1738 NYSE Adv/Vol/Dec 1110/443 mln/1875
11:00 am : The stock market has made a precipitous drop and is now trading in negative ground. The Dow Jones Industrials Average is at its worst level of the session and the Nasdaq is testing its session low.
A day after Goldman Sachs noted that Merrill Lynch (MER 32.48, -0.57) may incur additional write-downs, other reports are indicating the same notion. Also likely to incur write-downs is financial services giant American International Group (AIG 27.48, -0.61), according to Bloomberg.com. The report also indicated that AIG's write-downs may push the company to a quarterly loss.
The financial sector is trading lower, currently down 0.6%.DJ30 -63.75 NASDAQ -13.73 SP500 -2.23 NASDAQ Adv/Vol/Dec 935/583 mln/1721 NYSE Adv/Vol/Dec 1072/360 mln/1878
10:30 am : Stocks have pared some of their early gains. The Dow Jones Industrials Average and the Nasdaq have fallen back into negative ground.
Energy (+1.3%) is showing strength in the early going. Providing leadership to the sector are players in the exploration and production industry (+1.8%). The sector and its industry component are up as oil continues to trade with gains. Crude prices are currently indicated near $140.50 per barrel.
Treasuries are attracting modest attention. The 10-year Note is up 10 ticks and yielding 3.99%, which is its lowest in 10 days.DJ30 -20.28 NASDAQ -2.73 SP500 +3.13 NASDAQ Adv/Vol/Dec 1157/414 mln/1401 NYSE Adv/Vol/Dec 1328/264 mln/1536
10:00 am : The stock market has made its way out of the red and is now sporting a decent gain. Its counterparts have also moved out of negative ground, but flutter along the unchanged mark.
The University of Michigan consumer confidence survey came in at 56.4, which is a bit below expectations and last month's reading, marking a new multiyear low.DJ30 -0.08 NASDAQ -0.95 SP500 +2.79 NASDAQ Adv/Vol/Dec 1086/228 mln/1310 NYSE Adv/Vol/Dec 1228/156 mln/1553
09:45 am : The major indices have fallen into the red shortly after the session's opening bell. Weakness is broad-based.
At its current level, the stock market is on track to finish the week down 2.8% and finish the month down 8.5%.
Oil prices continue to weigh on investors' minds as crude prices stretch higher and hit new intraday records. Oil is currently trading hands at $140.80 per barrel.DJ30 -41.77 NASDAQ -16.58 SP500 -3.66 NASDAQ Adv/Vol/Dec 788/125 mln/1496 NYSE Adv/Vol/Dec 899/96 mln/1816
09:16 am : S&P futures vs fair value: -0.6. Nasdaq futures vs fair value: -2.2. Stocks remain on track for a mixed start as the week's final trading session gets underway. American Internataional Group (AIG) will likely absorb $5 billion in losses from its insurance units after their securities lending accounts suffered $13 billion in write-downs, according to Bloomberg.com.
09:00 am : S&P futures vs fair value: +1.1. Nasdaq futures vs fair value: -5.8. Stocks are on track for a mixed opening, according to futures. Bank of America (BAC) is planning to slash its employee headcount after it closes its acquisition of Countrywide Financial (CFC). The layoffs are expected to take place over a couple of years.
08:30 am : S&P futures vs fair value: -0.1. Nasdaq futures vs fair value: -3.0. Futures now indicate a mixed open following some key economic data. Personal income for May came in at 1.9% month-over-month, well above the 0.4% economists forecast and also above the previous month's 0.3%. Personal spending also exceeded expectations, up 0.8% month-over-month in May. The May PCE deflator came in at 3.1% year-over-year, which is slightly below expectations. Core PCE came in at 0.1% month-over-month, which is also slightly below expectations for May. Year-over-year, core PCE came in at 2.1%, though economists were expecting a 2.2% change. New reports are indicating Merrill Lynch (MER) may incur additional write-downs in the second quarter. On the earnings front, Accenture (ACN) topped analysts' estimates for the most recent quarter and provided upside guidance for its fourth fiscal quarter. Accenture also raised its full-year outlook. KB Home (KBH) reported a loss for its second quarter that was worse than analysts anticipated.
08:00 am : S&P futures vs fair value: -3.8. Nasdaq futures vs fair value: -5.8. Stock futures are currently indicating a downward start to Friday's trading. Anheuser-Busch (BUD) has officially rejected InBev's unsolicited takeover bid on grounds that the offer is inadequate and is not in the best interest of shareholders. InBev is now making a hotsile bid, according to Financial Times.
06:40 am : S&P futures vs fair value: +1.5. Nasdaq futures vs fair value: +2.3.
06:39 am : FTSE...5528.90...+10.70...+0.2%. DAX...6413.40...-46.03...-0.7%.
06:39 am : Nikkei...13544.36...-277.96...-2.0%. Hang Seng...22042.35...-413.32...-1.8%.
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 : Friday’s record oil prices fed the dour mood on Wall Street and cast a shadow on positive consumer spending data. In turn, the major indices each closed lower, extending the week's losses. Week-to-date, the S&P 500 lost 2.9%, the Dow Jones Industrials Average lost 4.1%, and the Nasdaq fell 3.8%.
Crude prices rallied all the way to $142.99 per barrel to set a new all-time intraday high. In the end, prices eased as oil closed slightly higher at $140.25 per barrel on the Nymex. Crude prices are up more than 45% year-to-date.
Financials finished the session as the worst performing sector. The sector closed 1.3% lower, as every one of its industry components finished lower, except insurance brokers (+1.9%). For the week, financials lost 6.5%. Merrill Lynch (MER 32.70, -0.35) grabbed its share of attention as reports indicated the firm may incur additional write-downs and may sell its stake in BlackRock (BLK 177.64, -3.06). Speculation of write-downs had limited affect on shares of MER, given that Goldman Sachs made the same inference yesterday. On a similar note, American International Group (AIG 27.69, -0.40) will likely be hit with write-downs of its own, which may result in a loss, according to Bloomberg.com.
On the earnings front, Accenture (ACN 41.27, +2.42) reported better-than-expected results for its most recent fiscal quarter. The company also issued upside guidance for the coming quarter and increased its full-year outlook. That was about the extent of the day's positive earnings news as Micron Technology (MU 6.10, -0.89) and KB Home (KBH 17.72, -0.41) reported larger-than-expected losses for the latest quarter.
According to Financial Times, InBev is making a hostile bid for Anheuser-Busch (BUD 62.26, +0.91) after Anheuser-Busch rejected the Belgian brewer’s offer for being inadequate and contrary to shareholders’ best interest.
The day's primary economic release was largely overlooked. Real personal consumption expenditures (PCE) data for May were up 0.4%. April was revised upward to a 0.2% increase. In turn, the second quarter average of April and May data 0.5% above the first quarter average, which is already a 2% annual rate of growth. Since another gain is likely in June, due to spending resulting from the fiscal stimulus, this puts real PCE on track to post a 2.5% annual rate of growth in the second quarter. Recall, PCE represents approximately 70% of GDP.
The University of Michigan’s final consumer confidence survey for June came in at 56.4, which is a bit below expectations and last month's reading. The June reading marks a new multiyear low. Note that the depressed survey results do not coincide with a similar drop in PCE.DJ30 -106.91 NASDAQ -5.74 NQ100 +0.0% R2K -0.0% SP400 -0.4% SP500 -4.77 NASDAQ Adv/Vol/Dec 1154/3.15 bln/1735 NYSE Adv/Vol/Dec 1165/2.24 bln/1969
3:35 pm : Investors head into the week's final leg of trading with little motivation to buy. The major indices remain in the red.
The session's weakness has been largely broad-based as seven of the ten economic sectors are facing a loss. More than 470 stocks on the NYSE are trading at their 52-week lows.
The greenback is trading lower, as indicated by the dollar index, which is down 0.2% to 72.4. Gold moved higher, yet again. The commodity closed the session up $16.60 at $931.70 per hounce. Oil also finished its session higher, settling at $140.25 per barrel.DJ30 -112.04 NASDAQ -11.04 SP500 -6.16 NASDAQ Adv/Vol/Dec 1068/1.84 bln/1807 NYSE Adv/Vol/Dec 1122/1.09 bln/2010
3:00 pm : Resistance picked up as the stock market climbed from session lows to hit the unchanged mark. The stock market is back to trading with a modest loss.
Week-to-date, the S&P 500 is down 2.8%, the Dow Jones Industrials Average is down 3.9%, and the Nasdaq is down 3.8%.
Notably, the Nasdaq is the only major index with a quarter-to-date gain, up roughly 1.6%, though each of the major indices continues to sport a year-to-date loss. Thus far in 2008, the S&P 500 is down 12.8%, the Dow is down 14.2%, and the Nasdaq is down 12.7%.DJ30 -89.32 NASDAQ -8.24 SP500 -3.52 NASDAQ Adv/Vol/Dec 1073/1.61 bln/1791 NYSE Adv/Vol/Dec 1141/957 mln/1971
2:30 pm : As crude prices pull back from $142 per barrel the stock market is making a charge back toward the neutral line.
Dow Jones reports that Fitch Ratings has put Wachovia (WB 16.47, -0.45) on rating watch negative in light of continued headwinds facing U.S. consumer asset quality and indications of further meaningful home price deterioration in certain markets. DJ30 -59.52 NASDAQ -5.66 SP500 -0.17 NASDAQ Adv/Vol/Dec 1125/1.48 bln/1721 NYSE Adv/Vol/Dec 1232/883 mln/1868
2:05 pm : After extending earlier losses, the major indices are pulling off their session low. Nonetheless, the preceding dip pushed the Dow Jones Industrials Average to a new 52-week low.
Only two of the major economic sectors are showing gains, while four of the sectors are showing losses in excess of 1%.
Crude made its way to a new intraday record high, climbing to $142.93 per barrel, which reflects an advance of nearly 2.4%.DJ30 -128.81 NASDAQ -24.22 SP500 -8.02 NASDAQ Adv/Vol/Dec 916/1.30 bln/1923 NYSE Adv/Vol/Dec 955/789 mln/2136
1:30 pm : Selling has intensified as each of the major indices has fallen to new session lows. The Dow Jones Industrials Average and the Nasdaq are trading with losses of 1%.
70% of the S&P 500 components are now trading with losses.
Financials continue to show weakness. The sector is down 1.9%, worse than any other economic sector. Each of its industry components is trading with a loss, except for insurance brokers (+1.5%).
Interest in Treasuries has intensified. The benchmark 10-year Note is up 19 ticks and yielding less than 4.00%.DJ30 -117.17 NASDAQ -24.20 SP500 -7.96 NASDAQ Adv/Vol/Dec 900/1.16 bln/1902 NYSE Adv/Vol/Dec 970/706 mln/2093
1:00 pm : Buyers are having a difficult time putting together a sustainable rally. The S&P 500 has surrendered its earlier advance and joined its counterparts in the red.
Small- and mid-cap stocks are also out of favor. The Russell 2000 is down 0.4% and the S&P 400 is down 0.3% this session.
Energy (+1.0%) continues to show relative strength, despite the session's dampened mood. Exxon Mobil (XOM 86.95, +0.54) is currently providing leadership to the sector.DJ30 -72.39 NASDAQ -13.42 SP500 -2.91 NASDAQ Adv/Vol/Dec 959/1.03 bln/1817 NYSE Adv/Vol/Dec 1092/630 mln/1962
12:30 pm : The S&P 500 has made its way back to the unchanged mark in choppy fashion. Its counterparts, however, are still in the red.
Forestry and wood product company Weyerhauser (WY 50.27, +0.08) announced it will incur pretax charges ranging from $300 million to $325 million related to lowered real estate prices or impairments.
Energy, healthcare, and materials are the only three sectors sporting a gain this session. All three sectors have advanced 1.0% or more.DJ30 -43.46 NASDAQ -5.39 SP500 +0.80 NASDAQ Adv/Vol/Dec 1017/911 mln/1739 NYSE Adv/Vol/Dec 1198/559 mln/1825
12:00 pm : All three of the major indices are trading with losses at midday, extending the week’s decline. Record oil prices are helping dampen investors’ spirits and overshadowing positive economic data; crude took out another intraday record high of more than $142 per barrel in early trading.
Friday’s weakness has been relatively broad-based with seven of the ten major economic sectors sporting losses. Financials have been a notable laggard, down 0.8%.
Reports are indicating Merrill Lynch (MER 32.92, -0.13) may incur additional write-downs just a day after a similar assessment was made by Goldman Sachs. In like manner, American International Group (AIG 27.59, -0.50) will likely face valuation adjustments of its own, according to Bloomberg.com. The report indicated the financial behemoth may report a quarterly loss as a result of write-downs from its insurance units.
On the earnings front, Accenture (ACN 40.92, +2.07) reported better-than-expected results for its most recent fiscal quarter. The company also issued upside guidance for the coming quarter and increased its full-year outlook. At the other end of the spectrum, Micron Technology (MU 6.31, -0.68) and KB Home (KBH 17.33, -0.80) reported losses that were worse than analysts anticipated.
The board of Anheuser-Busch (BUD 62.65, +1.30) has rejected InBev's takeover offer, stating it is inadequate and not in shareholders’ best interest. According to Financial Times, InBev is now taking its bid directly shareholders in a hostile takeover attempt.
The day's primary economic release offered a dose of positive news. Real personal consumption expenditures (PCE) data for May were up 0.4%. April was revised upward to a 0.2% increase. This puts the second quarter average of April and May 0.5% above the first quarter average, which is already a 2% annual rate of growth. Another gain is likely in June, due to spending resulting from the fiscal stimulus. In turn, this puts real PCE on track to post a 2.5% annual rate of growth in the second quarter. Recall, PCE represents approximately 70% of GDP.
The University of Michigan’s final consumer confidence survey for June came in at 56.4, which is a bit below expectations and last month's reading. The June reading marks a new multiyear low. The depressed consumer confidence survey contrasts with the aforementioned increase in PCE.DJ30 -49.34 NASDAQ -11.51 SP500 -1.12 NASDAQ Adv/Vol/Dec 949/806 mln/1792 NYSE Adv/Vol/Dec 1127/497 mln/1895
11:35 am : The stock market has moved upward toward the unchanged mark. Still, seven of the ten economic sectors are in the red. Decliners on the NYSE outnumber advancers by nearly 2-to-1.
A couple of players in the telecom arena were given uninspiring marks by analysts at Credit Suisse. Credit Suisse downtraded shares of handset maker Nokia (NOK 24.32, -0.74) to Neutral from Outperform. The firm also initiated coverage of Motorola (MOT 7.22, -0.08) with an Underperform grade.
DJ30 -59.20 NASDAQ -10.31 SP500 -1.70 NASDAQ Adv/Vol/Dec 965/722 mln/1738 NYSE Adv/Vol/Dec 1110/443 mln/1875
11:00 am : The stock market has made a precipitous drop and is now trading in negative ground. The Dow Jones Industrials Average is at its worst level of the session and the Nasdaq is testing its session low.
A day after Goldman Sachs noted that Merrill Lynch (MER 32.48, -0.57) may incur additional write-downs, other reports are indicating the same notion. Also likely to incur write-downs is financial services giant American International Group (AIG 27.48, -0.61), according to Bloomberg.com. The report also indicated that AIG's write-downs may push the company to a quarterly loss.
The financial sector is trading lower, currently down 0.6%.DJ30 -63.75 NASDAQ -13.73 SP500 -2.23 NASDAQ Adv/Vol/Dec 935/583 mln/1721 NYSE Adv/Vol/Dec 1072/360 mln/1878
10:30 am : Stocks have pared some of their early gains. The Dow Jones Industrials Average and the Nasdaq have fallen back into negative ground.
Energy (+1.3%) is showing strength in the early going. Providing leadership to the sector are players in the exploration and production industry (+1.8%). The sector and its industry component are up as oil continues to trade with gains. Crude prices are currently indicated near $140.50 per barrel.
Treasuries are attracting modest attention. The 10-year Note is up 10 ticks and yielding 3.99%, which is its lowest in 10 days.DJ30 -20.28 NASDAQ -2.73 SP500 +3.13 NASDAQ Adv/Vol/Dec 1157/414 mln/1401 NYSE Adv/Vol/Dec 1328/264 mln/1536
10:00 am : The stock market has made its way out of the red and is now sporting a decent gain. Its counterparts have also moved out of negative ground, but flutter along the unchanged mark.
The University of Michigan consumer confidence survey came in at 56.4, which is a bit below expectations and last month's reading, marking a new multiyear low.DJ30 -0.08 NASDAQ -0.95 SP500 +2.79 NASDAQ Adv/Vol/Dec 1086/228 mln/1310 NYSE Adv/Vol/Dec 1228/156 mln/1553
09:45 am : The major indices have fallen into the red shortly after the session's opening bell. Weakness is broad-based.
At its current level, the stock market is on track to finish the week down 2.8% and finish the month down 8.5%.
Oil prices continue to weigh on investors' minds as crude prices stretch higher and hit new intraday records. Oil is currently trading hands at $140.80 per barrel.DJ30 -41.77 NASDAQ -16.58 SP500 -3.66 NASDAQ Adv/Vol/Dec 788/125 mln/1496 NYSE Adv/Vol/Dec 899/96 mln/1816
09:16 am : S&P futures vs fair value: -0.6. Nasdaq futures vs fair value: -2.2. Stocks remain on track for a mixed start as the week's final trading session gets underway. American Internataional Group (AIG) will likely absorb $5 billion in losses from its insurance units after their securities lending accounts suffered $13 billion in write-downs, according to Bloomberg.com.
09:00 am : S&P futures vs fair value: +1.1. Nasdaq futures vs fair value: -5.8. Stocks are on track for a mixed opening, according to futures. Bank of America (BAC) is planning to slash its employee headcount after it closes its acquisition of Countrywide Financial (CFC). The layoffs are expected to take place over a couple of years.
08:30 am : S&P futures vs fair value: -0.1. Nasdaq futures vs fair value: -3.0. Futures now indicate a mixed open following some key economic data. Personal income for May came in at 1.9% month-over-month, well above the 0.4% economists forecast and also above the previous month's 0.3%. Personal spending also exceeded expectations, up 0.8% month-over-month in May. The May PCE deflator came in at 3.1% year-over-year, which is slightly below expectations. Core PCE came in at 0.1% month-over-month, which is also slightly below expectations for May. Year-over-year, core PCE came in at 2.1%, though economists were expecting a 2.2% change. New reports are indicating Merrill Lynch (MER) may incur additional write-downs in the second quarter. On the earnings front, Accenture (ACN) topped analysts' estimates for the most recent quarter and provided upside guidance for its fourth fiscal quarter. Accenture also raised its full-year outlook. KB Home (KBH) reported a loss for its second quarter that was worse than analysts anticipated.
08:00 am : S&P futures vs fair value: -3.8. Nasdaq futures vs fair value: -5.8. Stock futures are currently indicating a downward start to Friday's trading. Anheuser-Busch (BUD) has officially rejected InBev's unsolicited takeover bid on grounds that the offer is inadequate and is not in the best interest of shareholders. InBev is now making a hotsile bid, according to Financial Times.
06:40 am : S&P futures vs fair value: +1.5. Nasdaq futures vs fair value: +2.3.
06:39 am : FTSE...5528.90...+10.70...+0.2%. DAX...6413.40...-46.03...-0.7%.
06:39 am : Nikkei...13544.36...-277.96...-2.0%. Hang Seng...22042.35...-413.32...-1.8%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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