AI
Monday, July 14, 2008 7:19:49 PM
Market Update 080714
http://biz.yahoo.com/mu/update.html
4:20 pm : It was a volatile start to the week as stocks started Monday's session more than 1% higher, only to settle with a 0.9% loss. The swings came as market participants focused on the third largest bank failure in U.S. history and digested news that the government had a plan to prop up government sponsored enterprises Fannie Mae (FNM 9.68, -0.57) and Freddie Mac (FRE 7.21, -0.54).
In the end, the financial sector tumbled 6.1%, marking its largest one-day percent loss in more than eight years.
Treasury Secretary Paulson announced a plan that has three main parts: (1) to temporarily increase the line of credit that Fannie and Freddie have with the Treasury (2) give temporary authority for the Treasury to purchase equity in the companies and (3) give the Federal Reserve more oversight on the companies. Congress must approve the plan before it is implemented. Meanwhile, both Fannie and Freddie will be allowed to access the Fed's discount window if need be, which is similar to the emergency measures the Fed put in place for investment banks following the March Bear Stearns collapse.
Fannie opened 32% higher and Freddie opened with a gain of 26%, leading the market sharply higher. However, both stocks -- and the market -- saw gains dissipate on worries that the plan will not be enough for stockholders. The plan was called a "disaster" by investor Jim Rogers and a Goldman Sachs analyst noted the potential for another 35% retreat in the stock prices of each company, according to Bloomberg.com.
Financials were already poised to be in focus after nervous customers pulled their money out of IndyMac Bancorp (IMB 0.15, -0.13), prompting its collapse and subsequent seizure by the FDIC over the weekend.
The possibility of failure was not unexpected -- IndyMac's stock was already down 99% from its 52-week high. Still, the results rattled the market, with fear that other regional banks may collapse. This concern was evident in the 35% decline in shares of Washington Mutual (WM 3.21, -1.74) and 19% decline in National City (NCC 3.59, -0.83) -- even though both companies rebuffed rumors of a run on their banks.
Within the financial sector, 96% of stocks posted a loss. Regional banks slipped 11% and thrifts and mortgages fell 13%.
Stocks fared better outside of financials, considering the next worst performing sector (utilities) posted a relatively small loss of 1.3%. Two of the ten economic sectors posted a gain, led by energy (+0.8%).
There were plenty of merger and acquisition items to keep market participants busy. Anheuser-Busch (BUD 66.85, +0.35) finally agreed to be bought by InBev, after the Belgian company increased its offer to $70 per share, or $52 billion, from $65 per share.
Waste Management (WMI 34.48, -2.13) offered to acquire Republic Services (RSG 31.81, +3.91) for $34 per share in cash, or roughly $6.2 billion, a 22% premium over RSG's closing price on Friday. The move comes as a defensive measure to block the merger agreement between Republic and Allied Waste (AW 11.78, -0.21).
Over the weekend, Yahoo! (YHOO 22.53, -1.04) rejected a joint proposal from Microsoft (MSFT 25.12, -0.13) and Carl Icahn that called for a restructuring of Yahoo, which would include Microsoft taking over Yahoo's search business.
As stocks stumbled, investors sought safety in the Treasury market. The 10-year note rose 26 ticks, sending its yield down to 3.86%.DJ30 -45.35 NASDAQ -26.21 NQ100 -0.7% R2K -1.6% SP400 -1.0% SP500 -11.19 NASDAQ Adv/Vol/Dec 824/2.05 bln/2036 NYSE Adv/Vol/Dec 810/1.41 bln/2405
3:30 pm : Stocks enjoy a quick increase in buying interest that sends the Dow near the unchanged mark. All ten of the economic sectors are seeing lift, although financials continue to struggle with a steep 4.6% loss.
The energy sector (+0.8%) is enjoying a nice lift, and is trading at its highest level since this morning. Consumer staples (+0.5%) are also outperforming.
Financials will remain in focus throughout the week as numerous financial institutions report their latest quarterly results. Tomorrow before the open US Bancorp (USB 23.77, -1.97) and State Street (STT 56.07, -3.49) are set to report their earnings.DJ30 -8.30 NASDAQ -19.65 SP500 -7.29 NASDAQ Adv/Vol/Dec 858/1.68 bln/1964 NYSE Adv/Vol/Dec 875/1.09 bln/2311
2:55 pm : The stock market drifts back toward its session low. Once again, financials (-5.1%) are the main drag, although there is selling interest seen across all ten economic sectors.
Within commodity trading, the CRB Index is down 0.6% even as gold trades 1.3% higher and oil advances 0.2%. Food commodities are playing a large role in the CRB's dip, with corn down 3.9% and sugar down 2.8%.DJ30 -61.06 NASDAQ -27.21 SP500 -11.22 NASDAQ Adv/Vol/Dec 780/1.49 bln/2033 NYSE Adv/Vol/Dec 790/972 mln/2391
2:30 pm : The stock market continues to struggle in the red. Without the support of the heavily-weighted financial sector, the S&P 500 will have a difficult time making a recovery.
Within the financial sector, 96% of stocks are posting a loss. Bank of America (BAC 20.58, -1.09) is the main laggard after having its second quarter and fiscal year 2008 earnings estimates lowered at Oppenheimer. By percent change, the worst performing names are Washington Mutual (WM 3.42, -1.53) and National City (NCC 3.50,-0.92) with a drop of 31% and 20%, respectively.DJ30 -35.33 NASDAQ -17.36 SP500 -7.88 NASDAQ Adv/Vol/Dec 896/1.35 bln/1913 NYSE Adv/Vol/Dec 873/899 mln/2306
2:00 pm : The stock market's recovery effort fades. Within the S&P 500, 35% of stocks are trading higher, led by strength in Schlumberger (SLB 101.64, +2.48) and Apple (AAPL 174.93, +2.35). Bank of America (BAC 20.49, -1.18) and General Electric (GE 27.12, -0.54) top the laggard list.
President Bush confirmed he is lifting the executive ban on offshore drilling. Congress would still have to repeal its law. The comments had a limited impact on oil prices, which are down 0.3% to $144.68 per barrel.DJ30 40.30 NASDAQ -19.64 SP500 -8.89 NASDAQ Adv/Vol/Dec 877/1.26 bln/1902 NYSE Adv/Vol/Dec 877/840 mln/2292
1:30 pm : The tone in afternoon trading remains generally pessimistic as all three of the major indices continue to show sizeable losses.
Large-cap tech names are showing particular weakness. Internet search giant Google (GOOG 519.80, 14.00) is a primary laggard among tech players. Its stock price is down more than 2% this session, bringing its year-to-date decline to nearly 25%.
Separately, President Bush is currently giving a speech regarding increasing oil production by allowing offshore drilling.DJ30 -56.01 NASDAQ -27.33 SP500 -11.13 NASDAQ Adv/Vol/Dec 771/1.14 bln/1987 NYSE Adv/Vol/Dec 789/772 mln/2378
1:00 pm : The major indices are struggling, as financial stocks (-4.4%) -- the third largest sector -- weigh on the broader market. Outside of financials things are not so bad. Nine of the ten economic sectors are posting losses, although none are down more than 1%.
The Dow is outperforming on a relative basis, thank to strength in defensive names Coco-Cola (KO 50.91, +0.64), Proctor & Gamble (PG 63.94, +0.49) and McDonald's (MCD 57.76, +0.44). Overall, 19 of the 30 Dow components are trading lower, with weakness in financial names keeping the average in the red.
Treasuries are rallying, with the 10-year note up 24 ticks and the 30-year bond up 39 ticks.DJ30 -47.46 NASDAQ -25.30 SP500 -9.78 NASDAQ Adv/Vol/Dec 812/1.03 bln/1919 NYSE Adv/Vol/Dec 862/704 mln/2287
12:30 pm : The S&P 500 is trading near its recently reached session low after National City (NCC 3.17, -1.25) was unable to tame the market's fears.
National City issued a statement to respond to rumors, noting that it is not experiencing any unusual depositor or creditor activity. National City's stock has resumed trading, and holds a large 29% loss despite the company's attempt to reassure the market.
Another struggling bank, Washington Mutual (WM 3.51, -1.44) is facing a steep decline of 29%.
Only the energy (+0.1%) and health care (+0.1%) sectors remain in the green, although they are basically unchanged on the day. DJ30 -45.75 NASDAQ -21.86 SP500 -9.74 NASDAQ Adv/Vol/Dec 784/926 mln/1922 NYSE Adv/Vol/Dec 873/641 mln/2259
12:00 pm : The week started on a volatile note, with Fannie Mae (FNM 10.36, +0.11) and Freddie Mac (FRE 7.62, +0.13) once again taking center stage on news the government is taking steps to prop up the companies.
At midday, the S&P 500 is down 0.8% -- near its session low -- after retreating from its opening gain of 1.1%. The reversal has been broad-based, although the financial sector (-4.6%) is largely to blame.
Treasury Secretary Paulson announced a plan to temporarily increase the line of credit that Fannie and Freddie have with the Treasury, give temporary authority for the Treasury to purchase equity in the companies and give the Federal Reserve more oversight on the companies. Congress needs to approve the plan. Meanwhile, both Fannie and Freddie will be allowed to access the Fed's discount window, which is similar to the emergency measures the Fed put in place for investment banks following the March Bear Stearns collapse.
Fannie opened 32% higher and Freddie opened with a gain of 26%, leading the market sharply higher. The advance quickly dissipated after a less-than-stellar result of Freddie's $3 billion sale in short-term notes. Further, the plan was called a "disaster" by investor Jim Rogers and a Goldman Sachs analyst said the companies' stocks may fall another 35%, according to Bloomberg.com.
Meanwhile, the regional banks group (-10.5%) is under selling pressure on fears that some banks will meet the same fate as IndyMac Bancorp (IMB 0.15, -0.13). Over the weekend, a run on IndyMac spurred its collapse and takeover by the FDIC. The group, and the market, falls to session lows on word that National City (NCC 3.20, -1.22) stock is halted, news pending.
There are several merger and acquisition items of note. Anheuser-Busch (BUD 67.04, +0.54) finally agreed to be bought by InBev, after the Belgian company increased its offer to $70 per share, or $52 billion, from $65 per share.
Waste Management (WMI 34.46, -2.15) offered to acquire Republic Services (RSG 31.60, +3.70) for $34 per share in cash, or roughly $6.2 billion, a 22% premium over RSG's closing price on Friday. The move comes as a defensive measure to block the merger agreement between Republic and Allied Waste (AW 11.50, +0.49).
Over the weekend, Yahoo! (YHOO 22.43, -1.14) rejected a joint proposal from Microsoft (MSFT 25.37, +0.12) and Carl Icahn that called for a restructuring of Yahoo, which would include Microsoft taking over Yahoo's search business.DJ30 -61.71 NASDAQ -24.06 SP500 -9.65 NASDAQ Adv/Vol/Dec 856/766 mln/1805 NYSE Adv/Vol/Dec 1013/531 mln/2097
11:30 am : Currently, the S&P 500 is down roughly 0.3%, a sharp decline from its opening gain of 1.1%. Financials (-3.0%) are largely to blame for the retreat, although all ten economic sectors have slipped. Only four sectors remain in positive territory, led by energy (+0.6%).
Small-caps are underperforming, with the Russell 2000 Index shedding 1.2%. The S&P 400 MidCap Index is down 0.6%, also underperforming its large-cap counterparts.DJ30 -13.19 NASDAQ -14.35 SP500 -3.45 NASDAQ Adv/Vol/Dec 881/679 mln/1752 NYSE Adv/Vol/Dec 1105/566 mln/1968
11:00 am : The Dow and S&P 500 trade with modest gains, while the Nasdaq holds near the unchanged mark.
The Nasdaq may be underperforming, but that is not stopping Apple (AAPL 176.65 +4.07) from sporting a solid 2.4% gain. The company announced that it sold one million 3G iPhones in the first weekend.
Yahoo! (YHOO 22.47, -1.10) is one of the worst-performing Nasdaq names. Over the weekend, Yahoo rejected a joint proposal from Microsoft (MSFT 25.65, +0.40) and Carl Icahn that called for a restructuring of Yahoo, which would include Microsoft taking over Yahoo's search business.DJ30 +37.95 NASDAQ -1.31 SP500 +2.68 NASDAQ Adv/Vol/Dec 948/527 mln/1622 NYSE Adv/Vol/Dec 1158/366 mln/1868
10:30 am : The S&P 500 and Nasdaq fall into negative territory. Five of the ten economic sectors are posting a gain, led by a 1.6% rise in energy stocks. Financials (-2.9%) are acting as the main drag.
Within financials, Fannie Mae (FNM 10.59, +0.34) and Freddie Mac (FRE 7.92, +0.19) gave up the majority of their advance after trading as high as 32% and 26%, respectively. The stocks came under selling pressure following less-than-stellar results of Freddie's $3 billion sale in short-terms. Meanwhile, Goldman Sachs said the two stocks may decline another 35% despite the government's plan, according to Bloomberg.com.DJ30 +2.36 NASDAQ -11.96 SP500 -0.89 NASDAQ Adv/Vol/Dec 1027/370 mln/1451 NYSE Adv/Vol/Dec 1355/261 mln/1597
10:00 am : The major indices retreat off their opening highs as the financial sector comes under selling pressure. The sector opened 1.9% higher, but quickly reversed to a loss of 2.5% as regional banks (-4.7%) stumbled.
A run on regional bank IndyMac Bancorp (IMB 0.15, -0.13) spurred its collapse over the weekend, and takeover by the FDIC. The collapse is expected to cost the FDIC between $4 billion and $8 billion dollars. This does not come as much of a shock, as the 99% plummet in the bank's stock price indicated that failure was a strong possibility. However, there are fears that other regional banks face collapse.DJ30 +54.55 NASDAQ +2.89 SP500 +3.88 NASDAQ Adv/Vol/Dec 1196/190 mln/1139 NYSE Adv/Vol/Dec 1687/147 mln/1167
09:40 am : The major indices open on a sharply higher note, lifted by news that the government plans to prop up Fannie Mae (FNM 12.57, +2.32) and Freddie Mac (FRE 9.10, +1.35).
Treasury Secretary Paulson announced a plan to temporarily increase the line of credit that Fannie and Freddie have with the Treasury, give temporary authority for the Treasury to purchase equity in the companies and give the Federal Reserve more oversight on the companies. Congress needs to approve the plan. Meanwhile, both Fannie and Freddie will be allowed to access the Fed's discount window, which is similar to the emergency measures the Fed put in place for investment banks.
Meanwhile, some merger and acquisition items are also helping the market. Anheuser-Busch (BUD 67.33, +0.83) accepted an acquisition offer from InBev, after the Belgian company sweetened its offer to $70 per share, or $52 billion, from $65 per share. Separately, Waste Management (WMI 34.95, -1.40) offered to acquire Republic Services (RSG 32.43, +4.53) for $34 per share in cash, or roughly $6.2 billion, a 22% premium over RSG's closing price on Friday. DJ30 +108.45 NASDAQ +15.72 SP500 +11.67
09:15 am : S&P futures vs fair value: +12.3. Nasdaq futures vs fair value: +21.8.
08:59 am : S&P futures vs fair value: +14.4. Nasdaq futures vs fair value: +23.0. Futures continue to indicate a sharply higher start to the trading day, on a morning that has been very busy despite a dearth of earnings and economic news. Apple (AAPL) is getting a 4% boost in premarket trading. The company announced that it sold one million 3G iPhones in the first weekend. There has been more developments in the Microsoft (MSFT) and Yahoo! (YHOO) saga. Yahoo rejected over the weekend a joint proposal from Microsoft and Carl Icahn that called for a restructuring of Yahoo, which would include Microsoft taking over Yahoo's search business. In other deal news, Waste Management (WMI) offered to acquire Republic Services (RSG) for $34 per share in cash, or roughly $6.2 billion, a 22% premium over RSG's closing price on Friday.
08:29 am : S&P futures vs fair value: +15.5. Nasdaq futures vs fair value: +23.8.
08:15 am : S&P futures vs fair value: +12.3. Nasdaq futures vs fair value: +21.8.
08:00 am : S&P futures vs fair value: +14.6. Nasdaq futures vs fair value: +24.0. Futures suggest a sharply higher open following news that two goverment sponsored enterprises are getting some support from the Fed and U.S. Treasury. Treasury Secretary Paulson announced a plan to temporarily increase the line of credit that Fannie Mae (FNM) and Freddie Mac (FRE) have with the Treasury, give temporary authority for Treasury to purchase equity in the companies and give the Federal Reserve more oversight on the companies. Congress needs to approve the plan. Meanwhile, both Fannie and Freddie will be allowed to access the Fed's discount window. Separately, IndyMac Bancorp (IMB) was taken over by the FDIC after a run on the bank prompted its collapse. In merger and acquisition news, Anheuser-Busch (BUD) accepted a acquisition offer from InBev, after the Belgian company sweetened its offer to $70 per share, or $52 billion, from $65 per share.
06:15 am : S&P futures vs fair value: +10.0. Nasdaq futures vs fair value: +17.5.
06:12 am : FTSE...5341.10...+79.50...+1.5%. DAX...6211.82...+58.52...+1%.
06:12 am : Nikkei...13010.16...-29.53...-0.2%. Hang Seng...22014.46...-170.09...-0.8%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
http://biz.yahoo.com/mu/update.html
4:20 pm : It was a volatile start to the week as stocks started Monday's session more than 1% higher, only to settle with a 0.9% loss. The swings came as market participants focused on the third largest bank failure in U.S. history and digested news that the government had a plan to prop up government sponsored enterprises Fannie Mae (FNM 9.68, -0.57) and Freddie Mac (FRE 7.21, -0.54).
In the end, the financial sector tumbled 6.1%, marking its largest one-day percent loss in more than eight years.
Treasury Secretary Paulson announced a plan that has three main parts: (1) to temporarily increase the line of credit that Fannie and Freddie have with the Treasury (2) give temporary authority for the Treasury to purchase equity in the companies and (3) give the Federal Reserve more oversight on the companies. Congress must approve the plan before it is implemented. Meanwhile, both Fannie and Freddie will be allowed to access the Fed's discount window if need be, which is similar to the emergency measures the Fed put in place for investment banks following the March Bear Stearns collapse.
Fannie opened 32% higher and Freddie opened with a gain of 26%, leading the market sharply higher. However, both stocks -- and the market -- saw gains dissipate on worries that the plan will not be enough for stockholders. The plan was called a "disaster" by investor Jim Rogers and a Goldman Sachs analyst noted the potential for another 35% retreat in the stock prices of each company, according to Bloomberg.com.
Financials were already poised to be in focus after nervous customers pulled their money out of IndyMac Bancorp (IMB 0.15, -0.13), prompting its collapse and subsequent seizure by the FDIC over the weekend.
The possibility of failure was not unexpected -- IndyMac's stock was already down 99% from its 52-week high. Still, the results rattled the market, with fear that other regional banks may collapse. This concern was evident in the 35% decline in shares of Washington Mutual (WM 3.21, -1.74) and 19% decline in National City (NCC 3.59, -0.83) -- even though both companies rebuffed rumors of a run on their banks.
Within the financial sector, 96% of stocks posted a loss. Regional banks slipped 11% and thrifts and mortgages fell 13%.
Stocks fared better outside of financials, considering the next worst performing sector (utilities) posted a relatively small loss of 1.3%. Two of the ten economic sectors posted a gain, led by energy (+0.8%).
There were plenty of merger and acquisition items to keep market participants busy. Anheuser-Busch (BUD 66.85, +0.35) finally agreed to be bought by InBev, after the Belgian company increased its offer to $70 per share, or $52 billion, from $65 per share.
Waste Management (WMI 34.48, -2.13) offered to acquire Republic Services (RSG 31.81, +3.91) for $34 per share in cash, or roughly $6.2 billion, a 22% premium over RSG's closing price on Friday. The move comes as a defensive measure to block the merger agreement between Republic and Allied Waste (AW 11.78, -0.21).
Over the weekend, Yahoo! (YHOO 22.53, -1.04) rejected a joint proposal from Microsoft (MSFT 25.12, -0.13) and Carl Icahn that called for a restructuring of Yahoo, which would include Microsoft taking over Yahoo's search business.
As stocks stumbled, investors sought safety in the Treasury market. The 10-year note rose 26 ticks, sending its yield down to 3.86%.DJ30 -45.35 NASDAQ -26.21 NQ100 -0.7% R2K -1.6% SP400 -1.0% SP500 -11.19 NASDAQ Adv/Vol/Dec 824/2.05 bln/2036 NYSE Adv/Vol/Dec 810/1.41 bln/2405
3:30 pm : Stocks enjoy a quick increase in buying interest that sends the Dow near the unchanged mark. All ten of the economic sectors are seeing lift, although financials continue to struggle with a steep 4.6% loss.
The energy sector (+0.8%) is enjoying a nice lift, and is trading at its highest level since this morning. Consumer staples (+0.5%) are also outperforming.
Financials will remain in focus throughout the week as numerous financial institutions report their latest quarterly results. Tomorrow before the open US Bancorp (USB 23.77, -1.97) and State Street (STT 56.07, -3.49) are set to report their earnings.DJ30 -8.30 NASDAQ -19.65 SP500 -7.29 NASDAQ Adv/Vol/Dec 858/1.68 bln/1964 NYSE Adv/Vol/Dec 875/1.09 bln/2311
2:55 pm : The stock market drifts back toward its session low. Once again, financials (-5.1%) are the main drag, although there is selling interest seen across all ten economic sectors.
Within commodity trading, the CRB Index is down 0.6% even as gold trades 1.3% higher and oil advances 0.2%. Food commodities are playing a large role in the CRB's dip, with corn down 3.9% and sugar down 2.8%.DJ30 -61.06 NASDAQ -27.21 SP500 -11.22 NASDAQ Adv/Vol/Dec 780/1.49 bln/2033 NYSE Adv/Vol/Dec 790/972 mln/2391
2:30 pm : The stock market continues to struggle in the red. Without the support of the heavily-weighted financial sector, the S&P 500 will have a difficult time making a recovery.
Within the financial sector, 96% of stocks are posting a loss. Bank of America (BAC 20.58, -1.09) is the main laggard after having its second quarter and fiscal year 2008 earnings estimates lowered at Oppenheimer. By percent change, the worst performing names are Washington Mutual (WM 3.42, -1.53) and National City (NCC 3.50,-0.92) with a drop of 31% and 20%, respectively.DJ30 -35.33 NASDAQ -17.36 SP500 -7.88 NASDAQ Adv/Vol/Dec 896/1.35 bln/1913 NYSE Adv/Vol/Dec 873/899 mln/2306
2:00 pm : The stock market's recovery effort fades. Within the S&P 500, 35% of stocks are trading higher, led by strength in Schlumberger (SLB 101.64, +2.48) and Apple (AAPL 174.93, +2.35). Bank of America (BAC 20.49, -1.18) and General Electric (GE 27.12, -0.54) top the laggard list.
President Bush confirmed he is lifting the executive ban on offshore drilling. Congress would still have to repeal its law. The comments had a limited impact on oil prices, which are down 0.3% to $144.68 per barrel.DJ30 40.30 NASDAQ -19.64 SP500 -8.89 NASDAQ Adv/Vol/Dec 877/1.26 bln/1902 NYSE Adv/Vol/Dec 877/840 mln/2292
1:30 pm : The tone in afternoon trading remains generally pessimistic as all three of the major indices continue to show sizeable losses.
Large-cap tech names are showing particular weakness. Internet search giant Google (GOOG 519.80, 14.00) is a primary laggard among tech players. Its stock price is down more than 2% this session, bringing its year-to-date decline to nearly 25%.
Separately, President Bush is currently giving a speech regarding increasing oil production by allowing offshore drilling.DJ30 -56.01 NASDAQ -27.33 SP500 -11.13 NASDAQ Adv/Vol/Dec 771/1.14 bln/1987 NYSE Adv/Vol/Dec 789/772 mln/2378
1:00 pm : The major indices are struggling, as financial stocks (-4.4%) -- the third largest sector -- weigh on the broader market. Outside of financials things are not so bad. Nine of the ten economic sectors are posting losses, although none are down more than 1%.
The Dow is outperforming on a relative basis, thank to strength in defensive names Coco-Cola (KO 50.91, +0.64), Proctor & Gamble (PG 63.94, +0.49) and McDonald's (MCD 57.76, +0.44). Overall, 19 of the 30 Dow components are trading lower, with weakness in financial names keeping the average in the red.
Treasuries are rallying, with the 10-year note up 24 ticks and the 30-year bond up 39 ticks.DJ30 -47.46 NASDAQ -25.30 SP500 -9.78 NASDAQ Adv/Vol/Dec 812/1.03 bln/1919 NYSE Adv/Vol/Dec 862/704 mln/2287
12:30 pm : The S&P 500 is trading near its recently reached session low after National City (NCC 3.17, -1.25) was unable to tame the market's fears.
National City issued a statement to respond to rumors, noting that it is not experiencing any unusual depositor or creditor activity. National City's stock has resumed trading, and holds a large 29% loss despite the company's attempt to reassure the market.
Another struggling bank, Washington Mutual (WM 3.51, -1.44) is facing a steep decline of 29%.
Only the energy (+0.1%) and health care (+0.1%) sectors remain in the green, although they are basically unchanged on the day. DJ30 -45.75 NASDAQ -21.86 SP500 -9.74 NASDAQ Adv/Vol/Dec 784/926 mln/1922 NYSE Adv/Vol/Dec 873/641 mln/2259
12:00 pm : The week started on a volatile note, with Fannie Mae (FNM 10.36, +0.11) and Freddie Mac (FRE 7.62, +0.13) once again taking center stage on news the government is taking steps to prop up the companies.
At midday, the S&P 500 is down 0.8% -- near its session low -- after retreating from its opening gain of 1.1%. The reversal has been broad-based, although the financial sector (-4.6%) is largely to blame.
Treasury Secretary Paulson announced a plan to temporarily increase the line of credit that Fannie and Freddie have with the Treasury, give temporary authority for the Treasury to purchase equity in the companies and give the Federal Reserve more oversight on the companies. Congress needs to approve the plan. Meanwhile, both Fannie and Freddie will be allowed to access the Fed's discount window, which is similar to the emergency measures the Fed put in place for investment banks following the March Bear Stearns collapse.
Fannie opened 32% higher and Freddie opened with a gain of 26%, leading the market sharply higher. The advance quickly dissipated after a less-than-stellar result of Freddie's $3 billion sale in short-term notes. Further, the plan was called a "disaster" by investor Jim Rogers and a Goldman Sachs analyst said the companies' stocks may fall another 35%, according to Bloomberg.com.
Meanwhile, the regional banks group (-10.5%) is under selling pressure on fears that some banks will meet the same fate as IndyMac Bancorp (IMB 0.15, -0.13). Over the weekend, a run on IndyMac spurred its collapse and takeover by the FDIC. The group, and the market, falls to session lows on word that National City (NCC 3.20, -1.22) stock is halted, news pending.
There are several merger and acquisition items of note. Anheuser-Busch (BUD 67.04, +0.54) finally agreed to be bought by InBev, after the Belgian company increased its offer to $70 per share, or $52 billion, from $65 per share.
Waste Management (WMI 34.46, -2.15) offered to acquire Republic Services (RSG 31.60, +3.70) for $34 per share in cash, or roughly $6.2 billion, a 22% premium over RSG's closing price on Friday. The move comes as a defensive measure to block the merger agreement between Republic and Allied Waste (AW 11.50, +0.49).
Over the weekend, Yahoo! (YHOO 22.43, -1.14) rejected a joint proposal from Microsoft (MSFT 25.37, +0.12) and Carl Icahn that called for a restructuring of Yahoo, which would include Microsoft taking over Yahoo's search business.DJ30 -61.71 NASDAQ -24.06 SP500 -9.65 NASDAQ Adv/Vol/Dec 856/766 mln/1805 NYSE Adv/Vol/Dec 1013/531 mln/2097
11:30 am : Currently, the S&P 500 is down roughly 0.3%, a sharp decline from its opening gain of 1.1%. Financials (-3.0%) are largely to blame for the retreat, although all ten economic sectors have slipped. Only four sectors remain in positive territory, led by energy (+0.6%).
Small-caps are underperforming, with the Russell 2000 Index shedding 1.2%. The S&P 400 MidCap Index is down 0.6%, also underperforming its large-cap counterparts.DJ30 -13.19 NASDAQ -14.35 SP500 -3.45 NASDAQ Adv/Vol/Dec 881/679 mln/1752 NYSE Adv/Vol/Dec 1105/566 mln/1968
11:00 am : The Dow and S&P 500 trade with modest gains, while the Nasdaq holds near the unchanged mark.
The Nasdaq may be underperforming, but that is not stopping Apple (AAPL 176.65 +4.07) from sporting a solid 2.4% gain. The company announced that it sold one million 3G iPhones in the first weekend.
Yahoo! (YHOO 22.47, -1.10) is one of the worst-performing Nasdaq names. Over the weekend, Yahoo rejected a joint proposal from Microsoft (MSFT 25.65, +0.40) and Carl Icahn that called for a restructuring of Yahoo, which would include Microsoft taking over Yahoo's search business.DJ30 +37.95 NASDAQ -1.31 SP500 +2.68 NASDAQ Adv/Vol/Dec 948/527 mln/1622 NYSE Adv/Vol/Dec 1158/366 mln/1868
10:30 am : The S&P 500 and Nasdaq fall into negative territory. Five of the ten economic sectors are posting a gain, led by a 1.6% rise in energy stocks. Financials (-2.9%) are acting as the main drag.
Within financials, Fannie Mae (FNM 10.59, +0.34) and Freddie Mac (FRE 7.92, +0.19) gave up the majority of their advance after trading as high as 32% and 26%, respectively. The stocks came under selling pressure following less-than-stellar results of Freddie's $3 billion sale in short-terms. Meanwhile, Goldman Sachs said the two stocks may decline another 35% despite the government's plan, according to Bloomberg.com.DJ30 +2.36 NASDAQ -11.96 SP500 -0.89 NASDAQ Adv/Vol/Dec 1027/370 mln/1451 NYSE Adv/Vol/Dec 1355/261 mln/1597
10:00 am : The major indices retreat off their opening highs as the financial sector comes under selling pressure. The sector opened 1.9% higher, but quickly reversed to a loss of 2.5% as regional banks (-4.7%) stumbled.
A run on regional bank IndyMac Bancorp (IMB 0.15, -0.13) spurred its collapse over the weekend, and takeover by the FDIC. The collapse is expected to cost the FDIC between $4 billion and $8 billion dollars. This does not come as much of a shock, as the 99% plummet in the bank's stock price indicated that failure was a strong possibility. However, there are fears that other regional banks face collapse.DJ30 +54.55 NASDAQ +2.89 SP500 +3.88 NASDAQ Adv/Vol/Dec 1196/190 mln/1139 NYSE Adv/Vol/Dec 1687/147 mln/1167
09:40 am : The major indices open on a sharply higher note, lifted by news that the government plans to prop up Fannie Mae (FNM 12.57, +2.32) and Freddie Mac (FRE 9.10, +1.35).
Treasury Secretary Paulson announced a plan to temporarily increase the line of credit that Fannie and Freddie have with the Treasury, give temporary authority for the Treasury to purchase equity in the companies and give the Federal Reserve more oversight on the companies. Congress needs to approve the plan. Meanwhile, both Fannie and Freddie will be allowed to access the Fed's discount window, which is similar to the emergency measures the Fed put in place for investment banks.
Meanwhile, some merger and acquisition items are also helping the market. Anheuser-Busch (BUD 67.33, +0.83) accepted an acquisition offer from InBev, after the Belgian company sweetened its offer to $70 per share, or $52 billion, from $65 per share. Separately, Waste Management (WMI 34.95, -1.40) offered to acquire Republic Services (RSG 32.43, +4.53) for $34 per share in cash, or roughly $6.2 billion, a 22% premium over RSG's closing price on Friday. DJ30 +108.45 NASDAQ +15.72 SP500 +11.67
09:15 am : S&P futures vs fair value: +12.3. Nasdaq futures vs fair value: +21.8.
08:59 am : S&P futures vs fair value: +14.4. Nasdaq futures vs fair value: +23.0. Futures continue to indicate a sharply higher start to the trading day, on a morning that has been very busy despite a dearth of earnings and economic news. Apple (AAPL) is getting a 4% boost in premarket trading. The company announced that it sold one million 3G iPhones in the first weekend. There has been more developments in the Microsoft (MSFT) and Yahoo! (YHOO) saga. Yahoo rejected over the weekend a joint proposal from Microsoft and Carl Icahn that called for a restructuring of Yahoo, which would include Microsoft taking over Yahoo's search business. In other deal news, Waste Management (WMI) offered to acquire Republic Services (RSG) for $34 per share in cash, or roughly $6.2 billion, a 22% premium over RSG's closing price on Friday.
08:29 am : S&P futures vs fair value: +15.5. Nasdaq futures vs fair value: +23.8.
08:15 am : S&P futures vs fair value: +12.3. Nasdaq futures vs fair value: +21.8.
08:00 am : S&P futures vs fair value: +14.6. Nasdaq futures vs fair value: +24.0. Futures suggest a sharply higher open following news that two goverment sponsored enterprises are getting some support from the Fed and U.S. Treasury. Treasury Secretary Paulson announced a plan to temporarily increase the line of credit that Fannie Mae (FNM) and Freddie Mac (FRE) have with the Treasury, give temporary authority for Treasury to purchase equity in the companies and give the Federal Reserve more oversight on the companies. Congress needs to approve the plan. Meanwhile, both Fannie and Freddie will be allowed to access the Fed's discount window. Separately, IndyMac Bancorp (IMB) was taken over by the FDIC after a run on the bank prompted its collapse. In merger and acquisition news, Anheuser-Busch (BUD) accepted a acquisition offer from InBev, after the Belgian company sweetened its offer to $70 per share, or $52 billion, from $65 per share.
06:15 am : S&P futures vs fair value: +10.0. Nasdaq futures vs fair value: +17.5.
06:12 am : FTSE...5341.10...+79.50...+1.5%. DAX...6211.82...+58.52...+1%.
06:12 am : Nikkei...13010.16...-29.53...-0.2%. Hang Seng...22014.46...-170.09...-0.8%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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