AI
Tuesday, July 22, 2008 7:19:39 PM
Market Update 080722
http://biz.yahoo.com/mu/update.html
4:30 pm : The stock market posted a solid gain on Tuesday, after a late-day surge led by the financial sector helped investors shrug off worse-than-expected earnings reports from major tech and financial firms. A drop in crude prices, thanks to the easing of a tropical storm threat, also helped bring buyers to the table.
Tuesday looked like it was going to be an ugly session, as stocks opened 0.9% lower. But investors took the opportunity to buy the dip, encouraged by a drop in crude prices and a turnaround in financial stocks. The stock market ended the session with a gain of 1.4%, with six of the ten sectors posting a gain.
Smaller-cap names played a large role in the broader market's strength, especially within the tech sector -- the tech-heavy Nasdaq Composite rose 1.1%, compared to the 0.1% rise of the large-cap Nasdaq 100. The Russell 2000 spiked 2.8%, benefiting from a 22% surge in airline stocks, thanks to a handful of better-than-expected reports and the drop in crude prices.
Financials were at the center of the opening losses and the subsequent late-session rally. The sector fell 3.8% at the open after Wachovia (WB 16.80, +3.62) reported a larger-than-expected loss of $8.9 billion and American Express (AXP 38.12, -2.78) disappointed with its earnings and outlook.
Wachovia recovered from a loss of 11.6% after investors were encouraged that the company plans to raise $5 billion in capital using organic measures, instead of a dilutive capital raise. Wachovia enjoyed an added boost, settling with a gain of 27%, after a Deutsche Bank analyst indicated this may mark the bottom for Wachovia. The financial sector followed suit, surging to a gain of 6.6%, with notable strength in diversified banks (+13.6%). Exchange operators also posted a solid advance after CME Group (CME 366.77, +41.24) topped its earnings estimates.
The financial sector is now up 31.5% in the last week.
The industrial sector (+2.2%) also outperformed.
General Electric (GE 28.51, +0.82) announced that it is partnering with Mubadala, an Abu Dhabi firm, on initiatives including commercial finance, and clean energy research and development. Each company will provide $4 billion in equity over the next three years.
Strong emerging-market demand helped Caterpillar (CAT 75.00, +1.77) increase earnings per share 40% year-over-year, topping estimates.
UPS (UPS 62.11, +2.65) reported in-line earnings, relieving investors. The company called the economy "bleak," but kept its full year earnings forecast in-line with expectations.
Overall, earnings results were mostly better than expected, including beats by Biogen Idec (BIIB 71.29, +4.44), Baker Hughes (BHI 86.17, +1.81), DuPont (DD 45.22, +1.17), Lockheed Martin (LMT 103.72, +2.13) and UnitedHealth (UNH 26.18, +2.35). Merck (MRK 31.33, -4.00) reported better-than-expected results for its latest quarter, but continued concerns over its cholesterol drug Vytorin sent shares tumbling.
Large-cap tech was a pocket of weakness, with Apple (AAPL 162.02, -4.27) and Texas Instruments (TXN 24.44, -4.08) slipping on their respective earnings/outlooks. Memory chip maker SanDisk (SNDK 13.62, -4.31) fell 24% on its earnings report. The tech sector underperformed with a loss of 0.1%, although this is a substantial improvement from its session low when it was down 2.0%.
The energy sector (-2.2%) was a laggard, falling in conjunction with crude prices. DJ30 +135.16 NASDAQ +24.13 NQ100 +0.1% R2K +2.8% SP400 +1.4% SP500 +17.00 NASDAQ Adv/Vol/Dec 1912/2.56 bln/926 NYSE Adv/Vol/Dec 2227/1.57 bln/926
3:30 pm : The stock market advances to a fresh session high as we head into the final half-hour of trade.
This session saw a striking turnaround in financial stocks, with the sector going from a 3.8% loss to its curent level of a gain of 4.3%. The sector is up 25% over the last five sessions, while the S&P 500 is up 4.5%.
With the exception of consumer finance companies (-6.7%), the financial sector is enjoying broad-based buying interest. The leading groups are diversified banks (+10.7%), regional banks (+7.8%) and specialized finance (+7.2%).
Wednesday marks another busy session, with a plethora of companies reporting earnings. Some of the bigger names include Washington Mutual (WM 5.84, +0.36), Yahoo! (YHOO 20.98, -0.69), AT&T (T 31.46, -0.37), Boeing (BA 68.55, +0.31), ConocoPhillips (COP 84.15, -1.71), PepsiCo (PEP 65.82, +1.37) and Pfizer (PFE 18.27, +0.18).DJ30 +56.51 NASDAQ +7.16 SP500 +7.88 NASDAQ Adv/Vol/Dec 1772/2.11 bln/1027 NYSE Adv/Vol/Dec 2007/1.19 bln/1110
3:00 pm : The Nasdaq Composite touches positive territory, as strength in small-cap names helps offset weakness within the Nasdaq 100 (-0.8%). Meanwhile, the Dow and S&P 500 are trading with modest gains, near session highs.
The financial sector is trading at its best level of the day, with a gain of 2.3%. Deutsche Bank believes Wachovia's (WB 14.64, +1.46) poor second quarter results -- a $8.9 billion loss -- should mark a bottom for the bank. Deutsche believes WB's current valuation does not adequately reflect WB's potential earnings power over the long term.DJ30 +42.34 NASDAQ +1.37 SP500 +4.11 NASDAQ Adv/Vol/Dec 1687/1.89 bln/1080 NYSE Adv/Vol/Dec 1914/1.06 bln/1210
2:30 pm : The stock market is unable to gain momentum as crude pares some of its loss. Oil prices are down 2.8% after being down 4.1% at their low. Commodities as a whole have fallen 1.7%, aided by a 0.7% rise in the dollar.
The Nasdaq 100 is underperforming with a 1.2% drop, largerly due to a 6% drop in shares of Apple (AAPL 155.86, -10.43) in respose to the company's earnings outlook. SanDisk (SNDK 13.74, -4.19) has plummeted 23% after the memory manufacturer reported earnings that missed expectations, and said it is taking "signficant" actions to slow its supply growth.
Not everything is negative within the Nasdaq 100, as nearly half its components are posting a gain. Biogen Idec (BIIB 71.37, +4.52) reported earnings that topped expectaions, and Gilead Sciences (GILD 50.85, +1.21) was placed on the conviction buy list at Goldman Sachs, according to reports.DJ30 +22.63 NASDAQ -4.70 SP500 +0.92 NASDAQ Adv/Vol/Dec 1627/1.74 bln/1119 NYSE Adv/Vol/Dec 1775/985 mln/1317
2:05 pm : The S&P 500 is struggling to hold a slight gain as strength in finanicals (+1.6%) and industrials (+1.4%) are offset by weakness in energy (-2.3%) and tech (-1.1%).
On the other hand, the small-cap Russell 2000 Index is enjoying a solid 1.2% gain. The sector is benefiting from the surge in airlines (+21%). The Russell 2000 has outperformed its large-cap counterparts this year -- falling 7.8% compared to the S&P 500's drop of 14.1%.DJ30 +26.05 NASDAQ -3.42 SP500 +1.25 NASDAQ Adv/Vol/Dec 1648/1.60 bln/1089 NYSE Adv/Vol/Dec 1814/904 mln/1280
1:30 pm : The S&P 500 continues to trade along the unchanged mark, while the Dow Jones sports a decent gain and the Nasdaq posts a modest loss.
The Dow is being helped by the continued strength of Bank of America (BAC 30.08, +1.52), despite noticeable weakness in shares of fellow components American Express (AXP 37.00, -3.90) and Merck (MRK 31.73, -3.60). American Express issued a disconcerting quarterly report earlier today, and while Merck topped second quarter earnings expectations there is concern related to the effectiveness and safety of its cholesterol drug Vytorin.
Apple (AAPL 154.46, -11.83) has been undermining the Nasdaq's performance this session.DJ30 +28.90 NASDAQ -4.77 SP500 +0.46 NASDAQ Adv/Vol/Dec 1623/1.45 bln/1098 NYSE Adv/Vol/Dec 1774/830 mln/1297
1:00 pm : The stock market continues to fluctuate near the unchanged mark, as it has for most of the afternoon. The S&P 500 was down 0.9% at its low and up 0.3% at its high.
The Amex Airline Index is soaring 18%, thanks to the 3.8% drop in crude prices and better-than-feared earnings from UAL Corp (UAUA 7.38, +2.39), US Airways (LCC 3.75, +1.06) and JetBlue Airways (JBLU 4.68, +0.79). However, all three companies reported a loss due to the record high jet fuel prices. The Amex Airline Index is down 41% this year.DJ30 +36.23 NASDAQ -4.27 SP500 +0.58 NASDAQ Adv/Vol/Dec 1621/1.33 bln/1085 NYSE Adv/Vol/Dec 1733/772 mln/1321
12:30 pm : The S&P 500 climbs to positive ground and then retreats to the unchanged mark. The Dow is sporting a slight gain.
CME Group (CME 347.39, +21.86), operator of the Chicago Mercantile Exchange, is trading 6.7% higher after a better-than-expected earnings report and expense guidance. Exchange operators Nasdaq OMX (NDAQ 28.01, +1.87), NYSE Euronext (NYX 45.77, +1.93) and Intercontinental Exchange (ICE 93.24, +3.74) are trading higher in tandem.DJ30 +22.72 NASDAQ -4.75 SP500 -0.21 NASDAQ Adv/Vol/Dec 1622/1.21 bln/1050 NYSE Adv/Vol/Dec 1716/706 mln/1307
12:00 pm : It looked like Tuesday was going to be an ugly session, with stocks opening sharply lower following worse-than-expected earnings reports from several widely held tech and financial names. Stocks then staged a turnaround, as a drop in oil prices prompted an impressive early afternoon recovery, led by the financial sector.
At midday, the stock market is trading on the unchanged mark, with six of the ten economic sectors in positive territory. Crude prices are down 3.8% to $126.10 per barrel on word that the tropical storm in the Gulf of Mexico will not have an impact on oil production.
This session marks one of the busiest in the second quarter earnings season, with reports to digest from 48 S&P 500 companies. Results were mixed, although dour earnings and outlooks at a few widely held companies overshadowed the better-than-expected results.
Financials started the day with a 2.8% loss after American Express (AXP 37.20, -3.70) and Wachovia (WB 14.16, +0.98) reported earnings that failed to live up to expectations. However, the sector staged an early afternoon turnaround, led by diversified banks (+4.4%). At midday, financials are 0.8%.
Industrials (+1.4%) are having a solid day.
General Electric (GE 28.29, +0.60) announced that it is partnering with Mubadala, an Abu Dhabi firm, on initiatives including commercial finance, and clean energy research and development. Each company will provide $4 billion in equity over the next three years.
Strong emerging market demand helped Caterpillar (CAT 74.46, +1.23) increase earnings per share 40% year-over-year, topping estimates.
UPS (UPS 61.46, +2.00) reported in-line earnings, relieving investors. The company called the economy "bleak," but kept its full year earnings forecast in-line with expectations.
The tech sector is underperforming (-1.6%), with heavyweights Apple (AAPL 153.06. -13.23) and Texas Instruments (TXN 24.27, -4.25) acting as the major drags. Apple topped its quarterly earnings expectations, but issued an outlook for its fiscal fourth quarter that fell well short of estimates. Meanwhile, TXN reported lower-than-expected earnings and lowered its third quarter guidance due to slowing demand.
The energy sector is the main laggard with a loss of 2.1%, falling in sympathy with the drop in oil prices. DJ30 +25.89 NASDAQ -6.88 SP500 +0.01 NASDAQ Adv/Vol/Dec 1577/1.07 bln/1084 NYSE Adv/Vol/Dec 1662/626 mln/1334
11:30 am : Financials are rallying, now up 2.0% after being down as much as 3.8%. The sector is benefiting from strength in the diversified banks group (+5.6%), which includes Comerica (CMA 28.58, +1.08), US Bank (USB 28.53, +1.28), Wachovia (WB 14.32, +1.14), Wells Fargo (WFC 28.77, +1.23).
The Dow and S&P 500 are trading with a gain, while the Nasdaq holds a slight loss. Six of the ten sectors are now in positive territory.DJ30 +57.73 NASDAQ -2.50 SP500 +3.09 NASDAQ Adv/Vol/Dec 1598/926 mln/1025 NYSE Adv/Vol/Dec 1726/543 mln/1259
11:00 am : The Dow is outperforming its counterparts as it holds a slight gain, thanks to strength in Caterpillar (CAT 75.14, +1.91). Meanwhile, the S&P 500 and Nasdaq are posting modest losses.
The financial sector (-0.2%) has made a nice recovery from its session low, when it was down 3.8%. American Express (AXP 37.06, -3.80) is still sporting a loss of nearly 10%, although Wachovia (WB 13.49, +0.31) has recovered into positive territory.
The healthcare sector is outperforming with a 0.8% gain. The beaten-down managed healthcare group (+6.6%) -- which is down 47% this year -- is getting a nice lift. United Health (UNH 26.02, +2.19) reported a 23% drop in earnings per share, but the results topped expectations.
Shares of Merck (MRK 31.69, -3.64) are limiting the healthcare sector's advance. The pharmacutical giant reported better-than-expected earnings, but concerns over the effectiviness of its cholestral drug Vytorin are sending shares 10% lower.DJ30 +24.34 NASDAQ -14.24 SP500 -1.60 NASDAQ Adv/Vol/Dec 1258/750 mln/1266 NYSE Adv/Vol/Dec 1283/436 mln/1653
10:30 am : The drop in crude prices (-3.0% at $127.13) sends the Dow back to the unchanged mark. Buying interest is mostly broad-based, although the energy sector (-2.2%) is trading at session lows. The retreat in oil prices come as reports indicate that the tropical storm in the Gulf of Mexico will miss production areas.
The drop in crude is lifting the Amex Airline Index to a 7.0% gain. Also giving the index a boost is better-than-expected quarterly results from UAL Corp (UAUA 5.85, +0.86) and US Airways (LCC 3.08, +0.38). However, both companies are struggling in the face of record jet fuel prices -- UAL reported a net loss of $2.7 billion and US Airways lost $567 million.
The tech sector is underperforming, with heavyweights Apple (AAPL 152.99, -14.30) and Texas Instruments (TXN 24.76, -3.76) acting as the major drags. Apple topped its quarterly earnings expectations, but issued an outlook for its fiscal fourth quarter that fell well short of estimates. Meanwhile, TXN reported lower-than-expected earnings and lowered its third quarter guidance due to slowing demand.DJ30 +4.83 NASDAQ -8.61 SP500 -3.99 NASDAQ Adv/Vol/Dec 1224/584 mln/1234 NYSE Adv/Vol/Dec 1184/346 mln/1674
10:00 am : The major indices remain in negative territory, but have climbed off their worst levels in broad-based buying interest. A 2.7% drop in crude prices is aiding in the recovery effort. Strength in industrials (+1.1%) is helping to offset weakness in financials (-1.7%).
General Electric (GE 28.04, +1.30) announced that it is partnering with Mubadala, an Abu Dhabi firm, on initiatives including commercial finance, and clean energy research and development. Each company will provide $4 billion in equity over the next three years.
UPS (UPS 60.50, +1.04) reported in-line earnings, but called the economy "bleak." UPS said GDP and industrial production may bottom out by the end the year, although it believes the recovery will be a slow and drawn out process.DJ30 -27.68 NASDAQ -15.18 SP500 -6.32 NASDAQ Adv/Vol/Dec 964/324 mln/1356 NYSE Adv/Vol/Dec 924/198 mln/1827
09:45 am : The stock market opens on a low note after a large number of widely held firms reported disappointing earnings.
Apple (AAPL 150.00, -16.30), American Express (AXP 36.81, -4.10), Texas Instruments (TXN 24.10, -4.42) and Wachovia (WB 11.85, -1.34) all reported disappointing earnings or outlook. The latter company slashed its dividend to $0.05 from $0.375, and is exiting its general bank wholesale mortgage origination channel.
Not all earnings were negative. Caterpillar (CAT 74.86, +1.63) reported a 40% increase in earnings per share, topping estimates. DuPont's (DD 44.65, +0.67) result also came out ahead of expectations.DJ30 -58.05 NASDAQ -23.60 SP500 -9.88
09:16 am : S&P futures vs fair value: -8.3. Nasdaq futures vs fair value: -30.0.
08:59 am : S&P futures vs fair value: -8.2. Nasdaq futures vs fair value: -30.5. A lower open is expected, although futures have recovered from their worst levels. UAL Corp (UAUA), parent company of United Airlines, reported a second quarter loss of $1.19 per share, ex items, which is $0.86 better than the consensus estimate.
08:30 am : S&P futures vs fair value: -10.0. Nasdaq futures vs fair value: -31.0. Futures continue to point to a sharply lower open, with significant weakness in tech stocks. GE (GE) is partnering with Mubadala on initiatives including commercial finance, clean energy research and development, aviation, industry and corporate learning. The two companies will each provide $4 billion in capital over the next three years. In earnings news, Supervalu (SVU) and US Airways (LCC) topped expectations.
08:05 am : S&P futures vs fair value: -9.5. Nasdaq futures vs fair value: -31.5. Futures point to a sharply lower open after several widely held names reported disappointing earnings. American Express (AXP), SanDisk (SNDK), Texas Instruments (TXN) and Wachovia (WB) all reported earnings that missed Wall Street's expectation. The latter company also cut its dividend to $0.050 from $0.375 and is exiting the general bank wholesale mortgagee origination channel. Apple (AAPL) topped its earnings estimate, but issued an earnings guidance that fell short of estimates, sending shares tumbling 10% in premarket trading. Caterpillar (CAT) topped its earnings estimates, but had some cautious comments regarding the economy.
06:13 am : S&P futures vs fair value: -8.7. Nasdaq futures vs fair value: -31.0.
06:12 am : FTSE...5326.40...-77.90...-1.4%. DAX...6380.93...-43.91...-0.7%.
06:12 am : Nikkei...13184.96...+381.26...+3.0%. Hang Seng...22527.48...-5.42...-0.0%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
http://biz.yahoo.com/mu/update.html
4:30 pm : The stock market posted a solid gain on Tuesday, after a late-day surge led by the financial sector helped investors shrug off worse-than-expected earnings reports from major tech and financial firms. A drop in crude prices, thanks to the easing of a tropical storm threat, also helped bring buyers to the table.
Tuesday looked like it was going to be an ugly session, as stocks opened 0.9% lower. But investors took the opportunity to buy the dip, encouraged by a drop in crude prices and a turnaround in financial stocks. The stock market ended the session with a gain of 1.4%, with six of the ten sectors posting a gain.
Smaller-cap names played a large role in the broader market's strength, especially within the tech sector -- the tech-heavy Nasdaq Composite rose 1.1%, compared to the 0.1% rise of the large-cap Nasdaq 100. The Russell 2000 spiked 2.8%, benefiting from a 22% surge in airline stocks, thanks to a handful of better-than-expected reports and the drop in crude prices.
Financials were at the center of the opening losses and the subsequent late-session rally. The sector fell 3.8% at the open after Wachovia (WB 16.80, +3.62) reported a larger-than-expected loss of $8.9 billion and American Express (AXP 38.12, -2.78) disappointed with its earnings and outlook.
Wachovia recovered from a loss of 11.6% after investors were encouraged that the company plans to raise $5 billion in capital using organic measures, instead of a dilutive capital raise. Wachovia enjoyed an added boost, settling with a gain of 27%, after a Deutsche Bank analyst indicated this may mark the bottom for Wachovia. The financial sector followed suit, surging to a gain of 6.6%, with notable strength in diversified banks (+13.6%). Exchange operators also posted a solid advance after CME Group (CME 366.77, +41.24) topped its earnings estimates.
The financial sector is now up 31.5% in the last week.
The industrial sector (+2.2%) also outperformed.
General Electric (GE 28.51, +0.82) announced that it is partnering with Mubadala, an Abu Dhabi firm, on initiatives including commercial finance, and clean energy research and development. Each company will provide $4 billion in equity over the next three years.
Strong emerging-market demand helped Caterpillar (CAT 75.00, +1.77) increase earnings per share 40% year-over-year, topping estimates.
UPS (UPS 62.11, +2.65) reported in-line earnings, relieving investors. The company called the economy "bleak," but kept its full year earnings forecast in-line with expectations.
Overall, earnings results were mostly better than expected, including beats by Biogen Idec (BIIB 71.29, +4.44), Baker Hughes (BHI 86.17, +1.81), DuPont (DD 45.22, +1.17), Lockheed Martin (LMT 103.72, +2.13) and UnitedHealth (UNH 26.18, +2.35). Merck (MRK 31.33, -4.00) reported better-than-expected results for its latest quarter, but continued concerns over its cholesterol drug Vytorin sent shares tumbling.
Large-cap tech was a pocket of weakness, with Apple (AAPL 162.02, -4.27) and Texas Instruments (TXN 24.44, -4.08) slipping on their respective earnings/outlooks. Memory chip maker SanDisk (SNDK 13.62, -4.31) fell 24% on its earnings report. The tech sector underperformed with a loss of 0.1%, although this is a substantial improvement from its session low when it was down 2.0%.
The energy sector (-2.2%) was a laggard, falling in conjunction with crude prices. DJ30 +135.16 NASDAQ +24.13 NQ100 +0.1% R2K +2.8% SP400 +1.4% SP500 +17.00 NASDAQ Adv/Vol/Dec 1912/2.56 bln/926 NYSE Adv/Vol/Dec 2227/1.57 bln/926
3:30 pm : The stock market advances to a fresh session high as we head into the final half-hour of trade.
This session saw a striking turnaround in financial stocks, with the sector going from a 3.8% loss to its curent level of a gain of 4.3%. The sector is up 25% over the last five sessions, while the S&P 500 is up 4.5%.
With the exception of consumer finance companies (-6.7%), the financial sector is enjoying broad-based buying interest. The leading groups are diversified banks (+10.7%), regional banks (+7.8%) and specialized finance (+7.2%).
Wednesday marks another busy session, with a plethora of companies reporting earnings. Some of the bigger names include Washington Mutual (WM 5.84, +0.36), Yahoo! (YHOO 20.98, -0.69), AT&T (T 31.46, -0.37), Boeing (BA 68.55, +0.31), ConocoPhillips (COP 84.15, -1.71), PepsiCo (PEP 65.82, +1.37) and Pfizer (PFE 18.27, +0.18).DJ30 +56.51 NASDAQ +7.16 SP500 +7.88 NASDAQ Adv/Vol/Dec 1772/2.11 bln/1027 NYSE Adv/Vol/Dec 2007/1.19 bln/1110
3:00 pm : The Nasdaq Composite touches positive territory, as strength in small-cap names helps offset weakness within the Nasdaq 100 (-0.8%). Meanwhile, the Dow and S&P 500 are trading with modest gains, near session highs.
The financial sector is trading at its best level of the day, with a gain of 2.3%. Deutsche Bank believes Wachovia's (WB 14.64, +1.46) poor second quarter results -- a $8.9 billion loss -- should mark a bottom for the bank. Deutsche believes WB's current valuation does not adequately reflect WB's potential earnings power over the long term.DJ30 +42.34 NASDAQ +1.37 SP500 +4.11 NASDAQ Adv/Vol/Dec 1687/1.89 bln/1080 NYSE Adv/Vol/Dec 1914/1.06 bln/1210
2:30 pm : The stock market is unable to gain momentum as crude pares some of its loss. Oil prices are down 2.8% after being down 4.1% at their low. Commodities as a whole have fallen 1.7%, aided by a 0.7% rise in the dollar.
The Nasdaq 100 is underperforming with a 1.2% drop, largerly due to a 6% drop in shares of Apple (AAPL 155.86, -10.43) in respose to the company's earnings outlook. SanDisk (SNDK 13.74, -4.19) has plummeted 23% after the memory manufacturer reported earnings that missed expectations, and said it is taking "signficant" actions to slow its supply growth.
Not everything is negative within the Nasdaq 100, as nearly half its components are posting a gain. Biogen Idec (BIIB 71.37, +4.52) reported earnings that topped expectaions, and Gilead Sciences (GILD 50.85, +1.21) was placed on the conviction buy list at Goldman Sachs, according to reports.DJ30 +22.63 NASDAQ -4.70 SP500 +0.92 NASDAQ Adv/Vol/Dec 1627/1.74 bln/1119 NYSE Adv/Vol/Dec 1775/985 mln/1317
2:05 pm : The S&P 500 is struggling to hold a slight gain as strength in finanicals (+1.6%) and industrials (+1.4%) are offset by weakness in energy (-2.3%) and tech (-1.1%).
On the other hand, the small-cap Russell 2000 Index is enjoying a solid 1.2% gain. The sector is benefiting from the surge in airlines (+21%). The Russell 2000 has outperformed its large-cap counterparts this year -- falling 7.8% compared to the S&P 500's drop of 14.1%.DJ30 +26.05 NASDAQ -3.42 SP500 +1.25 NASDAQ Adv/Vol/Dec 1648/1.60 bln/1089 NYSE Adv/Vol/Dec 1814/904 mln/1280
1:30 pm : The S&P 500 continues to trade along the unchanged mark, while the Dow Jones sports a decent gain and the Nasdaq posts a modest loss.
The Dow is being helped by the continued strength of Bank of America (BAC 30.08, +1.52), despite noticeable weakness in shares of fellow components American Express (AXP 37.00, -3.90) and Merck (MRK 31.73, -3.60). American Express issued a disconcerting quarterly report earlier today, and while Merck topped second quarter earnings expectations there is concern related to the effectiveness and safety of its cholesterol drug Vytorin.
Apple (AAPL 154.46, -11.83) has been undermining the Nasdaq's performance this session.DJ30 +28.90 NASDAQ -4.77 SP500 +0.46 NASDAQ Adv/Vol/Dec 1623/1.45 bln/1098 NYSE Adv/Vol/Dec 1774/830 mln/1297
1:00 pm : The stock market continues to fluctuate near the unchanged mark, as it has for most of the afternoon. The S&P 500 was down 0.9% at its low and up 0.3% at its high.
The Amex Airline Index is soaring 18%, thanks to the 3.8% drop in crude prices and better-than-feared earnings from UAL Corp (UAUA 7.38, +2.39), US Airways (LCC 3.75, +1.06) and JetBlue Airways (JBLU 4.68, +0.79). However, all three companies reported a loss due to the record high jet fuel prices. The Amex Airline Index is down 41% this year.DJ30 +36.23 NASDAQ -4.27 SP500 +0.58 NASDAQ Adv/Vol/Dec 1621/1.33 bln/1085 NYSE Adv/Vol/Dec 1733/772 mln/1321
12:30 pm : The S&P 500 climbs to positive ground and then retreats to the unchanged mark. The Dow is sporting a slight gain.
CME Group (CME 347.39, +21.86), operator of the Chicago Mercantile Exchange, is trading 6.7% higher after a better-than-expected earnings report and expense guidance. Exchange operators Nasdaq OMX (NDAQ 28.01, +1.87), NYSE Euronext (NYX 45.77, +1.93) and Intercontinental Exchange (ICE 93.24, +3.74) are trading higher in tandem.DJ30 +22.72 NASDAQ -4.75 SP500 -0.21 NASDAQ Adv/Vol/Dec 1622/1.21 bln/1050 NYSE Adv/Vol/Dec 1716/706 mln/1307
12:00 pm : It looked like Tuesday was going to be an ugly session, with stocks opening sharply lower following worse-than-expected earnings reports from several widely held tech and financial names. Stocks then staged a turnaround, as a drop in oil prices prompted an impressive early afternoon recovery, led by the financial sector.
At midday, the stock market is trading on the unchanged mark, with six of the ten economic sectors in positive territory. Crude prices are down 3.8% to $126.10 per barrel on word that the tropical storm in the Gulf of Mexico will not have an impact on oil production.
This session marks one of the busiest in the second quarter earnings season, with reports to digest from 48 S&P 500 companies. Results were mixed, although dour earnings and outlooks at a few widely held companies overshadowed the better-than-expected results.
Financials started the day with a 2.8% loss after American Express (AXP 37.20, -3.70) and Wachovia (WB 14.16, +0.98) reported earnings that failed to live up to expectations. However, the sector staged an early afternoon turnaround, led by diversified banks (+4.4%). At midday, financials are 0.8%.
Industrials (+1.4%) are having a solid day.
General Electric (GE 28.29, +0.60) announced that it is partnering with Mubadala, an Abu Dhabi firm, on initiatives including commercial finance, and clean energy research and development. Each company will provide $4 billion in equity over the next three years.
Strong emerging market demand helped Caterpillar (CAT 74.46, +1.23) increase earnings per share 40% year-over-year, topping estimates.
UPS (UPS 61.46, +2.00) reported in-line earnings, relieving investors. The company called the economy "bleak," but kept its full year earnings forecast in-line with expectations.
The tech sector is underperforming (-1.6%), with heavyweights Apple (AAPL 153.06. -13.23) and Texas Instruments (TXN 24.27, -4.25) acting as the major drags. Apple topped its quarterly earnings expectations, but issued an outlook for its fiscal fourth quarter that fell well short of estimates. Meanwhile, TXN reported lower-than-expected earnings and lowered its third quarter guidance due to slowing demand.
The energy sector is the main laggard with a loss of 2.1%, falling in sympathy with the drop in oil prices. DJ30 +25.89 NASDAQ -6.88 SP500 +0.01 NASDAQ Adv/Vol/Dec 1577/1.07 bln/1084 NYSE Adv/Vol/Dec 1662/626 mln/1334
11:30 am : Financials are rallying, now up 2.0% after being down as much as 3.8%. The sector is benefiting from strength in the diversified banks group (+5.6%), which includes Comerica (CMA 28.58, +1.08), US Bank (USB 28.53, +1.28), Wachovia (WB 14.32, +1.14), Wells Fargo (WFC 28.77, +1.23).
The Dow and S&P 500 are trading with a gain, while the Nasdaq holds a slight loss. Six of the ten sectors are now in positive territory.DJ30 +57.73 NASDAQ -2.50 SP500 +3.09 NASDAQ Adv/Vol/Dec 1598/926 mln/1025 NYSE Adv/Vol/Dec 1726/543 mln/1259
11:00 am : The Dow is outperforming its counterparts as it holds a slight gain, thanks to strength in Caterpillar (CAT 75.14, +1.91). Meanwhile, the S&P 500 and Nasdaq are posting modest losses.
The financial sector (-0.2%) has made a nice recovery from its session low, when it was down 3.8%. American Express (AXP 37.06, -3.80) is still sporting a loss of nearly 10%, although Wachovia (WB 13.49, +0.31) has recovered into positive territory.
The healthcare sector is outperforming with a 0.8% gain. The beaten-down managed healthcare group (+6.6%) -- which is down 47% this year -- is getting a nice lift. United Health (UNH 26.02, +2.19) reported a 23% drop in earnings per share, but the results topped expectations.
Shares of Merck (MRK 31.69, -3.64) are limiting the healthcare sector's advance. The pharmacutical giant reported better-than-expected earnings, but concerns over the effectiviness of its cholestral drug Vytorin are sending shares 10% lower.DJ30 +24.34 NASDAQ -14.24 SP500 -1.60 NASDAQ Adv/Vol/Dec 1258/750 mln/1266 NYSE Adv/Vol/Dec 1283/436 mln/1653
10:30 am : The drop in crude prices (-3.0% at $127.13) sends the Dow back to the unchanged mark. Buying interest is mostly broad-based, although the energy sector (-2.2%) is trading at session lows. The retreat in oil prices come as reports indicate that the tropical storm in the Gulf of Mexico will miss production areas.
The drop in crude is lifting the Amex Airline Index to a 7.0% gain. Also giving the index a boost is better-than-expected quarterly results from UAL Corp (UAUA 5.85, +0.86) and US Airways (LCC 3.08, +0.38). However, both companies are struggling in the face of record jet fuel prices -- UAL reported a net loss of $2.7 billion and US Airways lost $567 million.
The tech sector is underperforming, with heavyweights Apple (AAPL 152.99, -14.30) and Texas Instruments (TXN 24.76, -3.76) acting as the major drags. Apple topped its quarterly earnings expectations, but issued an outlook for its fiscal fourth quarter that fell well short of estimates. Meanwhile, TXN reported lower-than-expected earnings and lowered its third quarter guidance due to slowing demand.DJ30 +4.83 NASDAQ -8.61 SP500 -3.99 NASDAQ Adv/Vol/Dec 1224/584 mln/1234 NYSE Adv/Vol/Dec 1184/346 mln/1674
10:00 am : The major indices remain in negative territory, but have climbed off their worst levels in broad-based buying interest. A 2.7% drop in crude prices is aiding in the recovery effort. Strength in industrials (+1.1%) is helping to offset weakness in financials (-1.7%).
General Electric (GE 28.04, +1.30) announced that it is partnering with Mubadala, an Abu Dhabi firm, on initiatives including commercial finance, and clean energy research and development. Each company will provide $4 billion in equity over the next three years.
UPS (UPS 60.50, +1.04) reported in-line earnings, but called the economy "bleak." UPS said GDP and industrial production may bottom out by the end the year, although it believes the recovery will be a slow and drawn out process.DJ30 -27.68 NASDAQ -15.18 SP500 -6.32 NASDAQ Adv/Vol/Dec 964/324 mln/1356 NYSE Adv/Vol/Dec 924/198 mln/1827
09:45 am : The stock market opens on a low note after a large number of widely held firms reported disappointing earnings.
Apple (AAPL 150.00, -16.30), American Express (AXP 36.81, -4.10), Texas Instruments (TXN 24.10, -4.42) and Wachovia (WB 11.85, -1.34) all reported disappointing earnings or outlook. The latter company slashed its dividend to $0.05 from $0.375, and is exiting its general bank wholesale mortgage origination channel.
Not all earnings were negative. Caterpillar (CAT 74.86, +1.63) reported a 40% increase in earnings per share, topping estimates. DuPont's (DD 44.65, +0.67) result also came out ahead of expectations.DJ30 -58.05 NASDAQ -23.60 SP500 -9.88
09:16 am : S&P futures vs fair value: -8.3. Nasdaq futures vs fair value: -30.0.
08:59 am : S&P futures vs fair value: -8.2. Nasdaq futures vs fair value: -30.5. A lower open is expected, although futures have recovered from their worst levels. UAL Corp (UAUA), parent company of United Airlines, reported a second quarter loss of $1.19 per share, ex items, which is $0.86 better than the consensus estimate.
08:30 am : S&P futures vs fair value: -10.0. Nasdaq futures vs fair value: -31.0. Futures continue to point to a sharply lower open, with significant weakness in tech stocks. GE (GE) is partnering with Mubadala on initiatives including commercial finance, clean energy research and development, aviation, industry and corporate learning. The two companies will each provide $4 billion in capital over the next three years. In earnings news, Supervalu (SVU) and US Airways (LCC) topped expectations.
08:05 am : S&P futures vs fair value: -9.5. Nasdaq futures vs fair value: -31.5. Futures point to a sharply lower open after several widely held names reported disappointing earnings. American Express (AXP), SanDisk (SNDK), Texas Instruments (TXN) and Wachovia (WB) all reported earnings that missed Wall Street's expectation. The latter company also cut its dividend to $0.050 from $0.375 and is exiting the general bank wholesale mortgagee origination channel. Apple (AAPL) topped its earnings estimate, but issued an earnings guidance that fell short of estimates, sending shares tumbling 10% in premarket trading. Caterpillar (CAT) topped its earnings estimates, but had some cautious comments regarding the economy.
06:13 am : S&P futures vs fair value: -8.7. Nasdaq futures vs fair value: -31.0.
06:12 am : FTSE...5326.40...-77.90...-1.4%. DAX...6380.93...-43.91...-0.7%.
06:12 am : Nikkei...13184.96...+381.26...+3.0%. Hang Seng...22527.48...-5.42...-0.0%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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