AI
Monday, July 21, 2008 8:37:38 PM
Market Update 080721
http://biz.yahoo.com/mu/update.html
4:20 pm : The stock market posted a slight loss near the unchanged mark on Monday. A rise in oil prices and a steep drop in shares of two major pharmaceutical companies overshadowed a better-than-expected earnings report from one of the world's largest financial firms.
Bank of America (BAC 28.52, +1.03) reported a 43% drop in earnings per share to $0.72. However, the result easily topped Wall Street's forecast of $0.53 per share, due to a lower-than-expected write-down of $1.2 billion. BofA's CEO plans to recommend that the board leave the quarterly dividend at $0.64 per share (9.0% annual yield at current levels).
The financial sector climbed 2.8% shortly after the opening bell, but settled with a loss of 0.9% following some profit-taking efforts after last week's 11.4% surge.
In corporate news, pharmaceutical companies Merck (MRK 35.39, -2.29) and Schering-Plough (SGP 18.99, -2.45) tumbled 6.1% and 11% respectively, due to continued concerns over the cholesterol drug Vytorin. The companies delayed their earnings reports until after the market close to discuss a report that said Vytorin does not lower the risk of major heart valve problems.
European pharmaceutical company Roche Holdings offered to acquire the remainder of Genentech (DNA 93.69, +11.87) for $43.7 billion, or $89 per share in cash. Roche already owns a 56% stake in Genentech. Shares of DNA are trading higher than the offer price on speculation that Roche will have to raise its bid.
Yahoo! (YHOO 21.68, -0.77) and activist investor Carl Icahn have reached an agreement regarding their pending proxy contest. Under the deal, Icahn will be appointed to the board, and two more seats will be filled from a list of nine candidates recommended by Icahn. In turn, Icahn will withdraw his nominees for vote at the annual meeting.
Three of the ten sectors posted a gain. Energy stocks (+2.9%) led the way as crude prices climbed 2.1% to $131.56. The advance in oil prices came as a tropical storm entered the Gulf of Mexico.
Consumer discretionary (-1.3%), health care (-1.2%), and financials (-0.9%) were the main laggards.
On the economic front, June leading indicators fell 0.1%, which is in-line with expectations. For the most part, the report is a collection of previously announced economic indicators, and as a result it had a limited impact on the stock market. DJ30 -29.23 NASDAQ -3.25 NQ100 -0.2% R2K +0.7% SP400 +0.7% SP500 -0.68 NASDAQ Adv/Vol/Dec 1579/1.84 bln/1238 NYSE Adv/Vol/Dec 2034/1.20 bln/1115
3:35 pm : The major indices trade with a slight loss as gains in energy (+2.3%) and material (+1.9%) stocks help offset weakness in consumer discretionary (-1.3%) and healthcare (-1.2%).
Market particpants will be busy after the close and before the open tomorrow, with a barrage of earnings reports from more than 90 companies. Some of the bigger names include American Express (AXP 40.85, -1.34), Texas Instruments (TXN 28.46, -0.36), Merck (MRK 35.28, -2.40), Caterpillar (CAT 73.18, +2.29), DuPont (DD 43.90, -0.30) and UPS (UPS 59.22, -1.59).DJ30 -52.76 NASDAQ -4.49 SP500 -2.74 NASDAQ Adv/Vol/Dec 1550/1.53 bln/1249 NYSE Adv/Vol/Dec 1947/920 mln/1196
3:00 pm : Crude oil prices have seen some swings this session, and are currently trading near session highs with a gain of 2.4% at $131.74 per barrel. In turn, the energy sector (+2.2%) advances to a fresh session high.
After briefly getting a boost on the data regarding Vytorin, Merck (MRK 35.06, -2.62) and Schering-Plough (SGP 18.13, -3.34) are now trading at session lows. The study indicates that the cholesterol drug doesn't lower the risk of major heart valve problems.
The stock market is back on the retreat as financials (-0.7%) give up their gains, although losses are modest.DJ30 -55.53 NASDAQ -7.60 SP500 -2.85 NASDAQ Adv/Vol/Dec 1477/1.37 bln/1319 NYSE Adv/Vol/Dec 1914/819 mln/1235
2:30 pm : The stock market trades near the unchanged mark, on what has been a slow start to the busiest week in the second quarter earnings reporting season.
More than 150 S&P 500 companies are set to report their earnings this week. According to Thomson Financial, second quarter earnings are expected to fall 17%, largely due to a 81% drop in financials. Of the 88 S&P 500 companies that have already reported earnings, 73% topped expectations, 9% met expectations, and 18% fell short of estimates.DJ30 -36.15 NASDAQ -3.23 SP500 -0.76 NASDAQ Adv/Vol/Dec 1567/1.26 bln/1203 NYSE Adv/Vol/Dec 1983/754 mln/1147
2:05 pm : All three of the major indices are now showing losses, though modest, as stocks chop along.
The healthcare sector recently took a sharp slip into negative ground after momentarily spiking upward into the green. The drop coincides with negative news related to two marquee names in the pharmaceutical industry.
As recently previewed, Vytorin, the popular cholesterol-fighting drug, did not meet the goals set forth in a recent study. Importantly, the study also found a potential cancer risk in certain Vytorin patients. Vytorin is co-manufactured and marketed by Schering-Plough (SGP 18.94, -2.50) and Merck (MRK 36.43, -1.25). Shares of SGP have fallen to their lowest level of the session.DJ30 -37.21 NASDAQ -3.56 SP500 -1.21 NASDAQ Adv/Vol/Dec 1580/1.18 bln/1183 NYSE Adv/Vol/Dec 1973/701 mln/1156
1:30 pm : The major indices continue to fluctuate near the unchanged mark. Small-cap and mid-cap stocks are outperforming their large-cap counterparts, with the Russell 2000 Index up 0.4% and the S&P 400 up 0.3%.
Merck (MRK 36.85, -0.83) and Schering-Plough (SGP 20.10, -1.34) pare some of their losses on the release of the latest study on the cholesterol drug Vytorin.DJ30 -15.80 NASDAQ -3.50 SP500 +0.85 NASDAQ Adv/Vol/Dec 1564/1.07 bln/1174 NYSE Adv/Vol/Dec 1989/636 mln/1110
1:00 pm : The S&P 500 trades near the unchanged mark in split trade. Tech (-1.0%) and consumer discretionary (-1.2%) are under selling pressure, while energy (+1.7%) and materials (+1.3%) are enjoying buying interest.
AIG (AIG 27.12, +2.05) is outperforming this session after being upgraded to Buy from Sell at Banc of America. BofA feels that AIG's reward versus risk has become very attractive.
Meanwhile, Fannie Mae (FNM 15.21, +1.81) and Freddie Mac (FRE 9.56, +0.38) are extending last week's gains, lifting the thrifts and mortgage group (+5.0%). The group has rebounded 69% since July 15, but is still down 77% from its 52-week high.DJ30 -25.65 NASDAQ -6.33 SP500 +0.19 NASDAQ Adv/Vol/Dec 1476/968 mln/1242 NYSE Adv/Vol/Dec 1912/575 mln/1188
12:30 pm : The major indices continue to trade with modest losses. The tech sector is under pressure, with heavyweights Google (GOOG 469.83, -11.49), Apple (AAPL 162.24, -2.91), and IBM (IBM 127.85, -2.04) acting as drags. Last week, Google reported lower-than-expected earnings, while IBM topped expectations. Apple is set to announce its earnings after the close.
In commodity trading, grains (-2.2%) are down as corn falls 3.0% and soybeans slip 2.2%. The CRB Index (-0.2%) is nearly flat, as the losses are being offset by a 0.8% gain in crude and a 0.6% gain in gold.DJ30 -37.21 NASDAQ -7.13 SP500 -1.26 NASDAQ Adv/Vol/Dec 1452/882 mln/1245 NYSE Adv/Vol/Dec 1895/530 mln/1179
12:00 pm : The stock market dips into the red slightly before midday as financial stocks give up early gains that were spurred by a better-than-expected report from one of the world's largest financial firms. The stock market's loss is modest, with seven of the ten economic sectors posting a loss.
Bank of America (BAC 29.52, +2.03) reported a 43% drop in earnings per share to $0.72. However, the result easily topped Wall Street's forecast of $0.53 per share, thanks to higher-than-expected revenue. During the company's earnings conference call, BofA's CEO said that management plans to recommend that the board leave its quarterly dividend at $0.64 per share (8.7% annual yield at current levels). The financial sector is outperforming on a relative basis with a 0.1% loss, but is well off its session high when it was up 2.8%.
Energy stocks (+1.6%) are seeing the biggest boost as the sector benefits from a rebound bid after falling 9.3% in the previous two weeks. The sector's gain comes despite disappointment over earnings from oilfield equipment and services company Weatherford (WFT 39.98, -0.70).
The consumer discretionary sector is the main laggard (-1.7%), as retailers fall 2.3% after spiking 6.9% last week.
Shares of pharmaceutical companies Merck (MRK 36.56, -1.12) and Schering-Plough (SGP 19.71, -1.73) are under selling pressure after the companies delayed their earnings reports from this morning to after the market's close. The companies plan to discuss a new study regarding the cholesterol drug Vytorin. In late March, shares of Merck and Schering tumbled after reports indicated Vytorin and Zetia may not be effective. The news is weighing on the healthcare sector (-0.5%), and is offsetting the announcement of a major buyout offer.
European pharmaceutical company Roche Holdings offered to acquire the remainder of Genentech (DNA 92.31, +10.49) for $43.7 billion, or $89 per share in cash. Roche already owns roughly 56% of Genentech. Shares of DNA are trading higher than the offer price on speculation that Roche will have to raise its bid.
Yahoo! (YHOO 21.88, -0.58) and activist investor Carl Icahn have reached an agreement regarding their pending proxy contest. Under the deal, Icahn will be appointed to the board, and two more seats will be filled from a list of nine candidates recommended by Icahn. In turn, Icahn will withdraw his nominees for vote at the annual meeting. The tech sector is down 1.1%.
On the economic front, June leading indicators fell 0.1%, which is in-line with expectations. For the most part, the report is a collection of previously announced economic indicators, and as a result it had a limited impact on the stock market. DJ30 -61.23 NASDAQ -11.21 SP500 -3.93 NASDAQ Adv/Vol/Dec 1388/773 mln/1274 NYSE Adv/Vol/Dec 1745/471 mln/1309
11:30 am : The major indices continue to trade in a range-bound manner, near the unchanged mark. The Dow touches negative territory, with Merck (MRK 36.55, -1.13) acting as a major drag.
The energy sector is up 1.4% as crude prices climb 0.9% to $130.00 per barrel. The sector is enjoying a bit of a rebound bid after falling 9.4% over the last two weeks.
The gains come despite disappointment over an earnings report from Weatherford (WFT 39.49, -1.19). The oilfield equipment and services provider reported a 26% rise in earnings per share, although the results fell short of Wall Street's estimate.DJ30 -2.61 NASDAQ +4.62 SP500 +2.70 NASDAQ Adv/Vol/Dec 1554/632 mln/1074 NYSE Adv/Vol/Dec 1980/393 mln/1032
11:00 am : Weakness in consumer discretionary (-1.1%), especially retailers (-1.8%), is being offset by strength in financials (+2.0%). As a result, the stock market is trading with a slight gain near the unchanged mark.
The S&P 500 has stuck to a tight trading range this session -- at its high it was up 0.6% and was up 0.1% at its low.DJ30 +9.12 NASDAQ +4.50 SP500 +2.56 NASDAQ Adv/Vol/Dec 1483/514 mln/1073 NYSE Adv/Vol/Dec 1895/324 mln/1093
10:30 am : The stock market posts a slight gain, but has dipped from its best levels. Four sectors are in the green, led by financials (+2.1%), energy (+1.0%) and materials (+0.7%).
The healthcare sector is underperforming with a loss of 0.8%. Shares of pharmaceutical companies Merck (MRK 35.83, -1.86) and Schering-Plough (SGP 19.05, -2.39) are under selling pressure after the companies delayed their earnings reports from this morning to after the market's close. The companies plan to discuss a new study regarding the cholesterol drug Vytorin. In late March, shares of Merck and Schering tumbled after reports indicated Vytorin and Zetia may not be effective.DJ30 +1.30 NASDAQ +4.38 SP500 +1.76 NASDAQ Adv/Vol/Dec 1473/375 mln/1002 NYSE Adv/Vol/Dec 1908/241 mln/1019
10:00 am : The stock market extends its opening gains, with eight of the ten economic sectors in positive territory. Crude oil prices are unchanged at $128.89 per barrel, a substantial retreat from their session high of $132.05.
Buying interest is concentrated within the financial sector, which is benefiting from a strong 9.8% gain in shares of Bank of America (BAC 30.18, +2.69). Outside of financials, stocks are trading near the unchanged mark, considering healthcare (-0.2%) is the worst performing sector with only a slight loss.
According to the Conference Board, June leading indicators fell 0.1%, which is in-line with expectations. For the most part, the report is a collection of previously announced economic indicators, including jobless claims, money supply, average workweek, building permits and stock prices. As a result, the report typically has a limited impact on the market.DJ30 +44.62 NASDAQ +15.45 SP500 +6.28 NASDAQ Adv/Vol/Dec 1524/185 mln/824 NYSE Adv/Vol/Dec 1923/138 mln/876
09:35 am : The stock market opens on a modestly higher note, getting a boost from another better-than-expected earnings report from a major financial company.
Bank of America (BAC 29.40, +1.91) reported a 43% year-over-year drop in second quarter earnings per share to $0.72, although the results easily topped Wall Street's forecast of $0.53 per share. The financial sector is outperforming with a 1.1% gain.
In corporate news, Yahoo! (YHOO 21.72, -0.73) and activist investor Carl Icahn have reached an agreement regarding their pending proxy contest. Under the deal, Ichan will be appointed to the board, and two more seats will be filled from a list of nine candidates recommended by Icahn. In turn, Ichan will withdraw his nominees for vote at the annual meeting.
European pharmaceutical company Roche Holdings offered to acquire the remainder of Genentech (DNA 93.04, +11.22) for $43.7 billion, or $89 per share in cash. Roche already owns roughly 56% of Genentech. Shares of DNA are trading higher than the offer price on speculation that Roche will have to raise its bid.DJ30 +37.29 NASDAQ +7.73 SP500 +3.60
09:16 am : S&P futures vs fair value: +3.9. Nasdaq futures vs fair value: +8.0.
09:00 am : S&P futures vs fair value: +4.7. Nasdaq futures vs fair value: +9.0.
08:27 am : S&P futures vs fair value: +3.4. Nasdaq futures vs fair value: +7.0. Futures continue to suggest a modestly higher start to the trading day. Crude oil is trading up 1.9% at $131.29 per barrel. Merck (MRK) and Schering-Plough (SGP) are delaying their earnings reports until after the stock market close instead of this morning, according to Reuters.com. The delay will allow the companies to provide an update regarding a new study of the cholesterol drug Vytorin.
08:05 am : S&P futures vs fair value: +2.0. Nasdaq futures vs fair value: +5.8. Futures suggest a higher open to the trading day. In earnings news, Bank of America (BAC) reported earnings of $0.72 per share, which is $0.19 better than the consensus estimate. Yahoo! (YHOO) reached an agreement with Carl Icahn regarding the pending proxy fight. Under the agreement, Carl Icahn will be appointed to the board, and Icahn will withdraw his nominees for other board spots. In deal news, European pharmaceutical company Roche Holdings offered to acquire the remainder of Genentech (DNA), around 44%, for $43.7 billion, or $89 per share in cash.
06:19 am : S&P futures vs fair value: +1.2. Nasdaq futures vs fair value: +6.5.
06:19 am : FTSE...5382.20...+5.80...+0.1%. DAX...6403.62...+20.97...+0.3%.
06:19 am : Nikkei...Holiday......... Hang Seng...22532.90...+658.71...+3.0%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
http://biz.yahoo.com/mu/update.html
4:20 pm : The stock market posted a slight loss near the unchanged mark on Monday. A rise in oil prices and a steep drop in shares of two major pharmaceutical companies overshadowed a better-than-expected earnings report from one of the world's largest financial firms.
Bank of America (BAC 28.52, +1.03) reported a 43% drop in earnings per share to $0.72. However, the result easily topped Wall Street's forecast of $0.53 per share, due to a lower-than-expected write-down of $1.2 billion. BofA's CEO plans to recommend that the board leave the quarterly dividend at $0.64 per share (9.0% annual yield at current levels).
The financial sector climbed 2.8% shortly after the opening bell, but settled with a loss of 0.9% following some profit-taking efforts after last week's 11.4% surge.
In corporate news, pharmaceutical companies Merck (MRK 35.39, -2.29) and Schering-Plough (SGP 18.99, -2.45) tumbled 6.1% and 11% respectively, due to continued concerns over the cholesterol drug Vytorin. The companies delayed their earnings reports until after the market close to discuss a report that said Vytorin does not lower the risk of major heart valve problems.
European pharmaceutical company Roche Holdings offered to acquire the remainder of Genentech (DNA 93.69, +11.87) for $43.7 billion, or $89 per share in cash. Roche already owns a 56% stake in Genentech. Shares of DNA are trading higher than the offer price on speculation that Roche will have to raise its bid.
Yahoo! (YHOO 21.68, -0.77) and activist investor Carl Icahn have reached an agreement regarding their pending proxy contest. Under the deal, Icahn will be appointed to the board, and two more seats will be filled from a list of nine candidates recommended by Icahn. In turn, Icahn will withdraw his nominees for vote at the annual meeting.
Three of the ten sectors posted a gain. Energy stocks (+2.9%) led the way as crude prices climbed 2.1% to $131.56. The advance in oil prices came as a tropical storm entered the Gulf of Mexico.
Consumer discretionary (-1.3%), health care (-1.2%), and financials (-0.9%) were the main laggards.
On the economic front, June leading indicators fell 0.1%, which is in-line with expectations. For the most part, the report is a collection of previously announced economic indicators, and as a result it had a limited impact on the stock market. DJ30 -29.23 NASDAQ -3.25 NQ100 -0.2% R2K +0.7% SP400 +0.7% SP500 -0.68 NASDAQ Adv/Vol/Dec 1579/1.84 bln/1238 NYSE Adv/Vol/Dec 2034/1.20 bln/1115
3:35 pm : The major indices trade with a slight loss as gains in energy (+2.3%) and material (+1.9%) stocks help offset weakness in consumer discretionary (-1.3%) and healthcare (-1.2%).
Market particpants will be busy after the close and before the open tomorrow, with a barrage of earnings reports from more than 90 companies. Some of the bigger names include American Express (AXP 40.85, -1.34), Texas Instruments (TXN 28.46, -0.36), Merck (MRK 35.28, -2.40), Caterpillar (CAT 73.18, +2.29), DuPont (DD 43.90, -0.30) and UPS (UPS 59.22, -1.59).DJ30 -52.76 NASDAQ -4.49 SP500 -2.74 NASDAQ Adv/Vol/Dec 1550/1.53 bln/1249 NYSE Adv/Vol/Dec 1947/920 mln/1196
3:00 pm : Crude oil prices have seen some swings this session, and are currently trading near session highs with a gain of 2.4% at $131.74 per barrel. In turn, the energy sector (+2.2%) advances to a fresh session high.
After briefly getting a boost on the data regarding Vytorin, Merck (MRK 35.06, -2.62) and Schering-Plough (SGP 18.13, -3.34) are now trading at session lows. The study indicates that the cholesterol drug doesn't lower the risk of major heart valve problems.
The stock market is back on the retreat as financials (-0.7%) give up their gains, although losses are modest.DJ30 -55.53 NASDAQ -7.60 SP500 -2.85 NASDAQ Adv/Vol/Dec 1477/1.37 bln/1319 NYSE Adv/Vol/Dec 1914/819 mln/1235
2:30 pm : The stock market trades near the unchanged mark, on what has been a slow start to the busiest week in the second quarter earnings reporting season.
More than 150 S&P 500 companies are set to report their earnings this week. According to Thomson Financial, second quarter earnings are expected to fall 17%, largely due to a 81% drop in financials. Of the 88 S&P 500 companies that have already reported earnings, 73% topped expectations, 9% met expectations, and 18% fell short of estimates.DJ30 -36.15 NASDAQ -3.23 SP500 -0.76 NASDAQ Adv/Vol/Dec 1567/1.26 bln/1203 NYSE Adv/Vol/Dec 1983/754 mln/1147
2:05 pm : All three of the major indices are now showing losses, though modest, as stocks chop along.
The healthcare sector recently took a sharp slip into negative ground after momentarily spiking upward into the green. The drop coincides with negative news related to two marquee names in the pharmaceutical industry.
As recently previewed, Vytorin, the popular cholesterol-fighting drug, did not meet the goals set forth in a recent study. Importantly, the study also found a potential cancer risk in certain Vytorin patients. Vytorin is co-manufactured and marketed by Schering-Plough (SGP 18.94, -2.50) and Merck (MRK 36.43, -1.25). Shares of SGP have fallen to their lowest level of the session.DJ30 -37.21 NASDAQ -3.56 SP500 -1.21 NASDAQ Adv/Vol/Dec 1580/1.18 bln/1183 NYSE Adv/Vol/Dec 1973/701 mln/1156
1:30 pm : The major indices continue to fluctuate near the unchanged mark. Small-cap and mid-cap stocks are outperforming their large-cap counterparts, with the Russell 2000 Index up 0.4% and the S&P 400 up 0.3%.
Merck (MRK 36.85, -0.83) and Schering-Plough (SGP 20.10, -1.34) pare some of their losses on the release of the latest study on the cholesterol drug Vytorin.DJ30 -15.80 NASDAQ -3.50 SP500 +0.85 NASDAQ Adv/Vol/Dec 1564/1.07 bln/1174 NYSE Adv/Vol/Dec 1989/636 mln/1110
1:00 pm : The S&P 500 trades near the unchanged mark in split trade. Tech (-1.0%) and consumer discretionary (-1.2%) are under selling pressure, while energy (+1.7%) and materials (+1.3%) are enjoying buying interest.
AIG (AIG 27.12, +2.05) is outperforming this session after being upgraded to Buy from Sell at Banc of America. BofA feels that AIG's reward versus risk has become very attractive.
Meanwhile, Fannie Mae (FNM 15.21, +1.81) and Freddie Mac (FRE 9.56, +0.38) are extending last week's gains, lifting the thrifts and mortgage group (+5.0%). The group has rebounded 69% since July 15, but is still down 77% from its 52-week high.DJ30 -25.65 NASDAQ -6.33 SP500 +0.19 NASDAQ Adv/Vol/Dec 1476/968 mln/1242 NYSE Adv/Vol/Dec 1912/575 mln/1188
12:30 pm : The major indices continue to trade with modest losses. The tech sector is under pressure, with heavyweights Google (GOOG 469.83, -11.49), Apple (AAPL 162.24, -2.91), and IBM (IBM 127.85, -2.04) acting as drags. Last week, Google reported lower-than-expected earnings, while IBM topped expectations. Apple is set to announce its earnings after the close.
In commodity trading, grains (-2.2%) are down as corn falls 3.0% and soybeans slip 2.2%. The CRB Index (-0.2%) is nearly flat, as the losses are being offset by a 0.8% gain in crude and a 0.6% gain in gold.DJ30 -37.21 NASDAQ -7.13 SP500 -1.26 NASDAQ Adv/Vol/Dec 1452/882 mln/1245 NYSE Adv/Vol/Dec 1895/530 mln/1179
12:00 pm : The stock market dips into the red slightly before midday as financial stocks give up early gains that were spurred by a better-than-expected report from one of the world's largest financial firms. The stock market's loss is modest, with seven of the ten economic sectors posting a loss.
Bank of America (BAC 29.52, +2.03) reported a 43% drop in earnings per share to $0.72. However, the result easily topped Wall Street's forecast of $0.53 per share, thanks to higher-than-expected revenue. During the company's earnings conference call, BofA's CEO said that management plans to recommend that the board leave its quarterly dividend at $0.64 per share (8.7% annual yield at current levels). The financial sector is outperforming on a relative basis with a 0.1% loss, but is well off its session high when it was up 2.8%.
Energy stocks (+1.6%) are seeing the biggest boost as the sector benefits from a rebound bid after falling 9.3% in the previous two weeks. The sector's gain comes despite disappointment over earnings from oilfield equipment and services company Weatherford (WFT 39.98, -0.70).
The consumer discretionary sector is the main laggard (-1.7%), as retailers fall 2.3% after spiking 6.9% last week.
Shares of pharmaceutical companies Merck (MRK 36.56, -1.12) and Schering-Plough (SGP 19.71, -1.73) are under selling pressure after the companies delayed their earnings reports from this morning to after the market's close. The companies plan to discuss a new study regarding the cholesterol drug Vytorin. In late March, shares of Merck and Schering tumbled after reports indicated Vytorin and Zetia may not be effective. The news is weighing on the healthcare sector (-0.5%), and is offsetting the announcement of a major buyout offer.
European pharmaceutical company Roche Holdings offered to acquire the remainder of Genentech (DNA 92.31, +10.49) for $43.7 billion, or $89 per share in cash. Roche already owns roughly 56% of Genentech. Shares of DNA are trading higher than the offer price on speculation that Roche will have to raise its bid.
Yahoo! (YHOO 21.88, -0.58) and activist investor Carl Icahn have reached an agreement regarding their pending proxy contest. Under the deal, Icahn will be appointed to the board, and two more seats will be filled from a list of nine candidates recommended by Icahn. In turn, Icahn will withdraw his nominees for vote at the annual meeting. The tech sector is down 1.1%.
On the economic front, June leading indicators fell 0.1%, which is in-line with expectations. For the most part, the report is a collection of previously announced economic indicators, and as a result it had a limited impact on the stock market. DJ30 -61.23 NASDAQ -11.21 SP500 -3.93 NASDAQ Adv/Vol/Dec 1388/773 mln/1274 NYSE Adv/Vol/Dec 1745/471 mln/1309
11:30 am : The major indices continue to trade in a range-bound manner, near the unchanged mark. The Dow touches negative territory, with Merck (MRK 36.55, -1.13) acting as a major drag.
The energy sector is up 1.4% as crude prices climb 0.9% to $130.00 per barrel. The sector is enjoying a bit of a rebound bid after falling 9.4% over the last two weeks.
The gains come despite disappointment over an earnings report from Weatherford (WFT 39.49, -1.19). The oilfield equipment and services provider reported a 26% rise in earnings per share, although the results fell short of Wall Street's estimate.DJ30 -2.61 NASDAQ +4.62 SP500 +2.70 NASDAQ Adv/Vol/Dec 1554/632 mln/1074 NYSE Adv/Vol/Dec 1980/393 mln/1032
11:00 am : Weakness in consumer discretionary (-1.1%), especially retailers (-1.8%), is being offset by strength in financials (+2.0%). As a result, the stock market is trading with a slight gain near the unchanged mark.
The S&P 500 has stuck to a tight trading range this session -- at its high it was up 0.6% and was up 0.1% at its low.DJ30 +9.12 NASDAQ +4.50 SP500 +2.56 NASDAQ Adv/Vol/Dec 1483/514 mln/1073 NYSE Adv/Vol/Dec 1895/324 mln/1093
10:30 am : The stock market posts a slight gain, but has dipped from its best levels. Four sectors are in the green, led by financials (+2.1%), energy (+1.0%) and materials (+0.7%).
The healthcare sector is underperforming with a loss of 0.8%. Shares of pharmaceutical companies Merck (MRK 35.83, -1.86) and Schering-Plough (SGP 19.05, -2.39) are under selling pressure after the companies delayed their earnings reports from this morning to after the market's close. The companies plan to discuss a new study regarding the cholesterol drug Vytorin. In late March, shares of Merck and Schering tumbled after reports indicated Vytorin and Zetia may not be effective.DJ30 +1.30 NASDAQ +4.38 SP500 +1.76 NASDAQ Adv/Vol/Dec 1473/375 mln/1002 NYSE Adv/Vol/Dec 1908/241 mln/1019
10:00 am : The stock market extends its opening gains, with eight of the ten economic sectors in positive territory. Crude oil prices are unchanged at $128.89 per barrel, a substantial retreat from their session high of $132.05.
Buying interest is concentrated within the financial sector, which is benefiting from a strong 9.8% gain in shares of Bank of America (BAC 30.18, +2.69). Outside of financials, stocks are trading near the unchanged mark, considering healthcare (-0.2%) is the worst performing sector with only a slight loss.
According to the Conference Board, June leading indicators fell 0.1%, which is in-line with expectations. For the most part, the report is a collection of previously announced economic indicators, including jobless claims, money supply, average workweek, building permits and stock prices. As a result, the report typically has a limited impact on the market.DJ30 +44.62 NASDAQ +15.45 SP500 +6.28 NASDAQ Adv/Vol/Dec 1524/185 mln/824 NYSE Adv/Vol/Dec 1923/138 mln/876
09:35 am : The stock market opens on a modestly higher note, getting a boost from another better-than-expected earnings report from a major financial company.
Bank of America (BAC 29.40, +1.91) reported a 43% year-over-year drop in second quarter earnings per share to $0.72, although the results easily topped Wall Street's forecast of $0.53 per share. The financial sector is outperforming with a 1.1% gain.
In corporate news, Yahoo! (YHOO 21.72, -0.73) and activist investor Carl Icahn have reached an agreement regarding their pending proxy contest. Under the deal, Ichan will be appointed to the board, and two more seats will be filled from a list of nine candidates recommended by Icahn. In turn, Ichan will withdraw his nominees for vote at the annual meeting.
European pharmaceutical company Roche Holdings offered to acquire the remainder of Genentech (DNA 93.04, +11.22) for $43.7 billion, or $89 per share in cash. Roche already owns roughly 56% of Genentech. Shares of DNA are trading higher than the offer price on speculation that Roche will have to raise its bid.DJ30 +37.29 NASDAQ +7.73 SP500 +3.60
09:16 am : S&P futures vs fair value: +3.9. Nasdaq futures vs fair value: +8.0.
09:00 am : S&P futures vs fair value: +4.7. Nasdaq futures vs fair value: +9.0.
08:27 am : S&P futures vs fair value: +3.4. Nasdaq futures vs fair value: +7.0. Futures continue to suggest a modestly higher start to the trading day. Crude oil is trading up 1.9% at $131.29 per barrel. Merck (MRK) and Schering-Plough (SGP) are delaying their earnings reports until after the stock market close instead of this morning, according to Reuters.com. The delay will allow the companies to provide an update regarding a new study of the cholesterol drug Vytorin.
08:05 am : S&P futures vs fair value: +2.0. Nasdaq futures vs fair value: +5.8. Futures suggest a higher open to the trading day. In earnings news, Bank of America (BAC) reported earnings of $0.72 per share, which is $0.19 better than the consensus estimate. Yahoo! (YHOO) reached an agreement with Carl Icahn regarding the pending proxy fight. Under the agreement, Carl Icahn will be appointed to the board, and Icahn will withdraw his nominees for other board spots. In deal news, European pharmaceutical company Roche Holdings offered to acquire the remainder of Genentech (DNA), around 44%, for $43.7 billion, or $89 per share in cash.
06:19 am : S&P futures vs fair value: +1.2. Nasdaq futures vs fair value: +6.5.
06:19 am : FTSE...5382.20...+5.80...+0.1%. DAX...6403.62...+20.97...+0.3%.
06:19 am : Nikkei...Holiday......... Hang Seng...22532.90...+658.71...+3.0%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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