AI
Wednesday, August 06, 2008 7:43:43 PM
Market Update 080806
http://biz.yahoo.com/mu/update.html
4:25 pm : The S&P 500 eked out a slight gain on Wednesday. Still, stock market bulls are pleased with the end result, considering the market was able to climb out of negative territory, and the gain comes after the previous session's rally of nearly 3%.
A strong showing by large-cap tech helped offset negative news out of the financial sector. Crude prices dropped for the third consecutive session, which also helped bring buyers to the table.
The S&P 500 settled with a gain of 0.3% after being down as much as 0.7%. Six of the ten economic sectors advanced. The Nasdaq Composite handily outperformed with a gain of 1.2%, partially due to better-than-expected earnings from a network and communication device giant.
With regard to crude oil, prices fell 0.7% to $118.37 per barrel after traders digested the government's weekly energy inventory data that painted a picture of mixed demand. Crude stockpiles unexpectedly rose, although gasoline inventory levels dropped by a large amount. After some volatile action, oil prices dropped from a gain of 1.1%, which coincided with the stock market's recovery from its session low. Crude prices are down 5.4% this week.
The tech sector was the leader behind the market's recovery, ending the day with a gain of 1.3%. Cisco (CSCO 23.96, +1.31) reported second quarter earnings that modestly topped expectations on the top and bottom line. The company issued revenue guidance for the next two quarters that was slightly below consensus, but reiterated its long-term growth rate guidance of 12% to 17%. Microsoft (MSFT 27.01, +0.80) also provided leadership, with shares rising 3% after a UBS analyst said Microsoft will buy back as much as $20 billion shares, according to Bloomberg.com.
Strikingly, the energy sector (+1.9%) posted the largest advance this session, despite the drop in crude prices. The sector benefited from a rebound trade and better-than-expected earnings from Devon Energy (DVN 92.67, +3.77).
The financial sector (-1.0%) settled well above its session low when it was down 2.4%, but still acted as a drag on the broader market. Freddie Mac (FRE 6.50, -1.54) was the main selling catalyst, after reporting a loss of $821 million, or $1.63 per share. The mortgage giant increased its provision for credit losses to $2.5 billion, from $1.2 billion in the first quarter, due to increases in delinquency rates and foreclosures. The firm is cutting its quarterly dividend to $0.05 or less from $0.25. Larger peer Fannie Mae (FNM 11.55, -2.05) fell in conjunction with Freddie.
Meanwhile, Morgan Stanley (MS 43.16, -0.02) froze the home equity lines of credit for thousands of its customers, according to Bloomberg.com, citing sources. Most of the customers had homes that lost value, according to the report.
The telecom sector (-1.4%) posted the largest decline. Shares of Sprint Nextel (S 7.34, -1.21) and Qwest (Q 3.45, -0.14) fell after both companies reported a drop in subscribers.
In other earnings news, Ambac (ABK 5.79, +1.06), Blackstone (BX 18.70, +0.54), Marsh & McLennan (MMC 30.07, +0.73) and Nasdaq OMX (NDAQ 30.95, +4.53) received a boost in response to their respective quarterly results.
Dean Foods (DF 21.99, -1.35), Priceline.com (PCLN 97.04, -20.16), Time Warner (TWX 14.83, -0.05), Transocean (RIG 132.53, -0.65) and Whole Foods (WFMI 20.06, -2.86) posted a loss following their respective earnings reports. DJ30 +40.30 NASDAQ +28.54 NQ100 +1.4% R2K +0.7% SP400 +0.7% SP500 +4.31 NASDAQ Dec/Adv/Vol 1158/1648/2.27 bln NYSE Dec/Adv/Vol 1398/1724/1.20 bln
3:30 pm : The major indices run into some resistance at session highs, sending them below their best levels. Market breadth turns positive on the NYSE, with advancers outpacing decliners by 6-to-5.
The dollar is enjoying some buying interest, up 0.5% against a basket of world currencies. The dollar is up a large 1.4% against the Japanese yen.DJ30 +45.92 NASDAQ +28.41 SP500 +4.54 NASDAQ Dec/Adv/Vol 1132/1662/1.85 bln NYSE Dec/Adv/Vol 1396/1695/881 mln
3:00 pm : Stock market bulls drive the major indices to session highs. Six of the ten sectors are now in positive territory. The sectors that are still in the red are paring their losses.
The Nasdaq continues to outperform. The composite is benefiting from a better-than-expected earnings report from Cisco (CSCO 24.08, +1.43). Microsoft (MSFT 27.03, +0.82) is also providing leadership, after Bloomberg.com reported that a UBS analyst said Microsoft will buy back as much as $20 billion shares.DJ30 +61.14 NASDAQ +32.62 SP500 +5.86 NASDAQ Dec/Adv/Vol 1092/1665/1.70 bln NYSE Dec/Adv/Vol 1353/1713/806 mln
2:35 pm : The major indices climb to session highs, thanks to mostly broad-based buying interest. The Dow and S&P 500 are posting slight gains, and the Nasdaq is up nearly 1%.
Despite the 0.5% drop in crude prices, the energy sector is up 1.2%, which is helping to offset the financial sector's decline of 1.0%.
The majority of this session's biggest percent losers are related to earnings reports. Freddie Mac (FRE 6.71, -1.33) is posting the largest decline of 16.5% in response to its large $821 million second quarter loss, and Fannie Mae (FNM 11.93, -1.67) is down 12.2% in conjunction with the news. Whole Foods (WFMI 19.94, -2.98) plummeted 13% after the company posted 23% year-over-year drop in earnings per share and suspended its dividend.
Sprint (S 7.45, -1.10), Dean Foods (DF 21.89, -1.44) and News Corp. (NWS.A 14.27, -0.98) are also among the session's big percent losers in response to their respective earnings reports. DJ30 +28.17 NASDAQ +22.51 SP500 +1.94 NASDAQ Dec/Adv/Vol 1236/1493/1.57 bln NYSE Dec/Adv/Vol 1600/1474/747 mln
2:05 pm : The S&P 500 encountered resistence at the unchanged line yet again. The Dow has slipped into the red, but the Nasdaq continues to trade with a healthy gain.
The materials sector is outperforming the other sectors, though it is off its best level of the session. It is currently up 1.2% after being up as much as 2.2% earlier.
The sector is posting an advance even though more sector members are trading with losses than gains. Considerable influence is coming from heavyweight Freeport McMoRan (FCX 86.76, +7.76). Shares of FCX are jumping following the stock's steady descent since July's end.DJ30 -1.06 NASDAQ +13.98 SP500 -1.54 NASDAQ Dec/Adv/Vol 1372/1348/1.41 bln NYSE Dec/Adv/Vol 1722/1325/680 mln
1:30 pm : The S&P 500 and Dow are fluctuating near the unchanged mark, as the Nasdaq trades near session highs with a gain of 0.7%. Four of the ten sectors are posting gains, led by materials (+1.3%) and tech (+1.0%).
European markets closed with decent gains, benefiting from strength in financials and a $10 billion bid from mining firm Xstrata to buy platinum and gold producer Lonmin. London's FTSE rose 0.6%, Germany's Dax climbed 0.7% and France's CAC rose 1.4%.DJ30 +12.13 NASDAQ +17.22 SP500 -0.12 NASDAQ Dec/Adv/Vol 1303/1379/1.29 bln NYSE Dec/Adv/Vol 1669/1370/626 mln
1:00 pm : The S&P 500 briefly touches positive territory before retreating a bit as crude oil prices recover. Crude is now down 0.2% to $118.82 per barrel, a substantial rebound from recent lows when it was down down as much as 1.7%.
The S&P 500 and Dow are now posting very slight losses, while the Nasdaq continues to sport a gain.
On the NYSE, declining issues outpace advancers by 6-to-5. Advancers hold a very slight edge on the Nasdaq. Volume is average.DJ30 -8.06 NASDAQ +10.53 SP500 -2.10 NASDAQ Dec/Adv/Vol 1293/1376/1.17 bln NYSE Dec/Adv/Vol 1644/1368/566 mln
12:30 pm : The major indices climb to session highs, in mostly broad-based buying interest that is led by large-cap tech. The Nasdaq and Dow are now in positive territory. The S&P 500 is down -0.1%, which is a respectable recovery from its session lows of -0.8%.
The tech sector is at session highs with a gain of 0.8%. Large-cap tech leads the way, with strength in Cisco (CSCO 24.07, +1.42), Microsoft (MSFT 26.93, +0.72) and Apple (AAPL 163.80, +3.16).DJ30 +1.79 NASDAQ +13.67 SP500 -0.89 NASDAQ Dec/Adv/Vol 1346/1305/1.07 bln NYSE Dec/Adv/Vol 1695/1315/519 mln
12:00 pm : Stocks are taking a breather following yesterday's surge of nearly 3%. The S&P 500 is slightly below the unchanged mark at midday, as better-than-expected earnings from a tech giant help to offset disappointing developments out of the financial sector. A drop in crude prices for the third straight session is also helping to limit selling interest.
Crude prices are down 1.4% to $117.46 per barrel as traders digest the government's weekly energy inventory data. The report was once again mixed, as crude stockpiles unexpectedly rose, although gasoline inventory levels dropped by a large amount. After some volatile action, oil prices dropped from a gain of 1.1% to the current level, which coincided with the stock market's recovery from its session low. Crude prices are down nearly 6% this week.
The financial sector (-1.0%) is well off its session low when it was down 2.4%, but is still underperforming after Freddie Mac (FRE 7.12, -0.92) reported a loss of $821 million, or $1.63 per share. The mortgage giant increased its provision for credit losses to $2.5 billion, from $1.2 billion in the first quarter due to increases in delinquency rates and foreclosures. The firm is cutting its quarterly dividend to $0.05 or less from $0.25.
Meanwhile, Morgan Stanley (MS 42.97, -0.23) froze the home equity lines of credit for thousands of its customers, according to Bloomberg.com, citing sources. Most of the customers had homes that lost value, according to the report.
The telecom sector is the main laggard this session. Shares of Sprint Nextel (S 7.69, -0.86) are down 10% after the struggling wireless communication company reported second quarter results that disappointed investors.
The tech sector (+0.7%) is helping to offset this session's weakness. Cisco (CSCO 23.97, +1.32) reported second quarter earnings that modestly topped expectations on the top and bottom line. The company issued revenue guidance for the next two quarters that was slightly below consensus, but reiterated its long-term growth rate guidance of 12% to 17%. The Nasdaq is outperforming the S&P 500 and Dow with a slight gain thanks to strength in tech and CSCO.
In other earnings news, Ambac (ABK 5.14, +0.41), Blackstone (BX 18.89, +0.73), Devon Energy (DVN 92.38, +3.48), Marsh & McLennan (MMC 30.75, +1.41) and Nasdaq OMX (NDAQ 30.08, +3.66) are getting a boost in response to their respective quarterly results.
Dean Foods (DF 21.15, -2.19), Priceline.com (PCLN 97.12, -20.08), Time Warner (TWX 14.84, -0.04) and Whole Foods (WFMI 18.98, -3.94) are in negative territory following their respective earnings reports. DJ30 -18.32 NASDAQ +8.49 SP500 -2.70 NASDAQ Dec/Adv/Vol 1443/1188/939 mln NYSE Dec/Adv/Vol 1832/1158/462 mln
11:35 am : The major indices lift off their session lows in a mostly broad-based recovery effort. The tech sector (+0.6%) is leading the charge higher, which allows the Nasdaq to climb to positive territory. The Dow and S&P 500 are now posting a slight loss.
The stock market's recovery comes as crude quickly drops to a 1.4% loss at $117.53 per barrel as traders continue to digest the government's weekly inventory data. As a result, the energy sector (+0.1%) is trading near the unchanged mark.
The telecom sector (-2.1%) is not participating in the recovery, as it falls to a session low. Shares of Sprint Nextel (S 7.62, -0.93) are down 11% after the struggling wireless communication company reported second quarter results that disappointed investors. Earnings per share fell 76% year-over-year as revenue dropped 11% due to subscriber loss.DJ30 -25.97 NASDAQ +7.11 SP500 -2.99 NASDAQ Dec/Adv/Vol 1437/1151/793 mln NYSE Dec/Adv/Vol 1784/1152/392 mln
11:00 am : In typical fashion, crude prices trade in a volatile manner following the government's weekly energy statistics. Prices briefly dropped into negative ground, before recovering to a gain of 0.2% at $119.35 per barrel. The unexpected drop in crude stockpiles was partially offset by a larger-than-expected decline in gasoline inventories.
The stock market falls to a fresh session low and then recovers a bit. Financials (-2.0%) and consumer discretionary (-1.8%) are the main laggards. The energy (+1.1%) and materials (+1.6%) sectors continue to provide leadership, but have fallen off their session highs of 1.8% and 2.2%, respectively.
The materials sector is benefiting from a strong 8.8% advance in shares of mining company Freeport McMoRan (FCX 85.94, +6.94). FCX was added to Citigroup's Top Picks Live list, noting an attractive valuation. FCX tumbled 22% during the last five sessions on concerns of decreasing copper prices (+1.3%).
The energy sector is getting a boost from Devon Energy (DVN 91.16, +2.26). The independent gas and oil company posted a 79% year-over-year increase in earnings per share, which topped Wall Street's expectations.DJ30 -72.38 NASDAQ -11.35 SP500 -8.01 NASDAQ Dec/Adv/Vol 1605/891/615 mln NYSE Dec/Adv/Vol 1935/975/314 mln
10:35 am : Just hitting the wires, the government said that crude oil inventories rose by 1.6 million barrels, compared to the expected decline of 200,000. Crude prices were up 0.7% to $120.02 per barrel prior to the data.
The major indices recover off session lows as the energy data gets digested. There is notable weakness within financials (-2.0%) and consumer staples (-1.5%). The utilities sector (+0.6%) joins energy (+1.1%) and materials (+1.9%) in positive territory.DJ30 -55.77 NASDAQ -8.05 SP500 -5.04 NASDAQ Dec/Adv/Vol 1572/866/460 mln NYSE Dec/Adv/Vol 1848/1009/237 mln
09:55 am : The stock market continues to trade with a modest loss, as eight of the ten economic sectors are in negative territory. The two best-performing sectors in yesterday's session -- financials (-1.9%) and consumer discretionary (-1.4%) -- are the main laggards this session.
Conversely, the two worst performing sectors yesterday -- energy (+0.9%) and materials (+2.0%) -- are providing leadership this session.
Crude oil prices are up 0.5% to $119.74 per barrel after dropping nearly 5% in the two previous sessions. Crude prices will see some volatility following the government's weekly energy report at 10:35 ET.DJ30 -49.10 NASDAQ -6.24 SP500 -5.81 NASDAQ Dec/Adv/Vol 1483/822/227 mln NYSE Dec/Adv/Vol 1783/915/128 mln
09:40 am : The stock market gets off to a negative start after surging nearly 3% in the previous session. Disappointing news out of the financial sector (-2.0%) is acting as the main selling catalyst.
Shares of Freddie Mac (FRE 6.99, -1.05) are tumbling 13% after the company reported a second quarter loss of $1.63 per share and cut its quarterly dividend to $0.05 or less from $0.25. Meanwhile, Morgan Stanley (MS 42.47, -0.73) froze the home equity lines of thousands of customers, Bloomberg.com reports, citing a personal familiar with the situation.
Cisco (CSCO 23.72, +1.07) is helping to offset some of the weakness in financials after topping expectations in its latest quarter. The company issued revenue guidance for the next two quarters that was slightly below consensus, but reiterated its long-term growth rate guidance of 12% to 17%.DJ30 -69.05 NASDAQ -7.29 SP500 -7.39
09:15 am : S&P futures vs fair value: -6.0. Nasdaq futures vs fair value: -4.0.
09:00 am : S&P futures vs fair value: -5.9. Nasdaq futures vs fair value: -3.5. A lackluster start to the trading day is expected. Asset management firm Blackstone (BX) reported second quarter earnings of $0.15 per share, which is $0.07 better than Wall Street's forecast.
08:30 am : S&P futures vs fair value: -4.0. Nasdaq futures vs fair value: +0.3. The S&P 500 is set for a lower open, while the Nasdaq is set to open flat thanks to better-than-expected earnings from Cisco (CSCO). Crude oil is trading up 0.2% to $119.37 per barrel ahead of the government's weekly energy inventory report at 10:35 ET.
08:03 am : S&P futures vs fair value: -5.4. Nasdaq futures vs fair value: -2.5. Futures suggest a lower start to the trading day, following yesterday's rally of nearly 3%. Cisco (CSCO) is 4.2% higher in premarket trading after topping expectations in its latest quarter. The company issued revenue guidance for the next two quarters that was slightly below consensus, but reiterated its long-term growth guidance of 12% to 17%. Freddie Mac (FRE) is down roughly 10% in premarket trading. The company reported a second quarter loss of $1.63 per share and cut its quarterly dividend to $0.05 or less from $0.25. In other earnings news, Sprint Nextel (S), Time Warner (TWX), Dean Foods (DF), Devon Energy (DVN) all topped expectations. Bond insurer Ambac (ABK) and Whole Foods (WFMI) missed estimates.
06:17 am : S&P futures vs fair value: -5.7. Nasdaq futures vs fair value: -2.0.
06:17 am : FTSE...5456.10...+1.60...+0.0%. DAX...6522.10...+3.40...+0.1%.
06:17 am : Nikkei...13254.89...+340.23...+2.6%. Hang Seng...Holiday.........
My posting is for my own entertainment, do your own DD before pushing your buy/call button
http://biz.yahoo.com/mu/update.html
4:25 pm : The S&P 500 eked out a slight gain on Wednesday. Still, stock market bulls are pleased with the end result, considering the market was able to climb out of negative territory, and the gain comes after the previous session's rally of nearly 3%.
A strong showing by large-cap tech helped offset negative news out of the financial sector. Crude prices dropped for the third consecutive session, which also helped bring buyers to the table.
The S&P 500 settled with a gain of 0.3% after being down as much as 0.7%. Six of the ten economic sectors advanced. The Nasdaq Composite handily outperformed with a gain of 1.2%, partially due to better-than-expected earnings from a network and communication device giant.
With regard to crude oil, prices fell 0.7% to $118.37 per barrel after traders digested the government's weekly energy inventory data that painted a picture of mixed demand. Crude stockpiles unexpectedly rose, although gasoline inventory levels dropped by a large amount. After some volatile action, oil prices dropped from a gain of 1.1%, which coincided with the stock market's recovery from its session low. Crude prices are down 5.4% this week.
The tech sector was the leader behind the market's recovery, ending the day with a gain of 1.3%. Cisco (CSCO 23.96, +1.31) reported second quarter earnings that modestly topped expectations on the top and bottom line. The company issued revenue guidance for the next two quarters that was slightly below consensus, but reiterated its long-term growth rate guidance of 12% to 17%. Microsoft (MSFT 27.01, +0.80) also provided leadership, with shares rising 3% after a UBS analyst said Microsoft will buy back as much as $20 billion shares, according to Bloomberg.com.
Strikingly, the energy sector (+1.9%) posted the largest advance this session, despite the drop in crude prices. The sector benefited from a rebound trade and better-than-expected earnings from Devon Energy (DVN 92.67, +3.77).
The financial sector (-1.0%) settled well above its session low when it was down 2.4%, but still acted as a drag on the broader market. Freddie Mac (FRE 6.50, -1.54) was the main selling catalyst, after reporting a loss of $821 million, or $1.63 per share. The mortgage giant increased its provision for credit losses to $2.5 billion, from $1.2 billion in the first quarter, due to increases in delinquency rates and foreclosures. The firm is cutting its quarterly dividend to $0.05 or less from $0.25. Larger peer Fannie Mae (FNM 11.55, -2.05) fell in conjunction with Freddie.
Meanwhile, Morgan Stanley (MS 43.16, -0.02) froze the home equity lines of credit for thousands of its customers, according to Bloomberg.com, citing sources. Most of the customers had homes that lost value, according to the report.
The telecom sector (-1.4%) posted the largest decline. Shares of Sprint Nextel (S 7.34, -1.21) and Qwest (Q 3.45, -0.14) fell after both companies reported a drop in subscribers.
In other earnings news, Ambac (ABK 5.79, +1.06), Blackstone (BX 18.70, +0.54), Marsh & McLennan (MMC 30.07, +0.73) and Nasdaq OMX (NDAQ 30.95, +4.53) received a boost in response to their respective quarterly results.
Dean Foods (DF 21.99, -1.35), Priceline.com (PCLN 97.04, -20.16), Time Warner (TWX 14.83, -0.05), Transocean (RIG 132.53, -0.65) and Whole Foods (WFMI 20.06, -2.86) posted a loss following their respective earnings reports. DJ30 +40.30 NASDAQ +28.54 NQ100 +1.4% R2K +0.7% SP400 +0.7% SP500 +4.31 NASDAQ Dec/Adv/Vol 1158/1648/2.27 bln NYSE Dec/Adv/Vol 1398/1724/1.20 bln
3:30 pm : The major indices run into some resistance at session highs, sending them below their best levels. Market breadth turns positive on the NYSE, with advancers outpacing decliners by 6-to-5.
The dollar is enjoying some buying interest, up 0.5% against a basket of world currencies. The dollar is up a large 1.4% against the Japanese yen.DJ30 +45.92 NASDAQ +28.41 SP500 +4.54 NASDAQ Dec/Adv/Vol 1132/1662/1.85 bln NYSE Dec/Adv/Vol 1396/1695/881 mln
3:00 pm : Stock market bulls drive the major indices to session highs. Six of the ten sectors are now in positive territory. The sectors that are still in the red are paring their losses.
The Nasdaq continues to outperform. The composite is benefiting from a better-than-expected earnings report from Cisco (CSCO 24.08, +1.43). Microsoft (MSFT 27.03, +0.82) is also providing leadership, after Bloomberg.com reported that a UBS analyst said Microsoft will buy back as much as $20 billion shares.DJ30 +61.14 NASDAQ +32.62 SP500 +5.86 NASDAQ Dec/Adv/Vol 1092/1665/1.70 bln NYSE Dec/Adv/Vol 1353/1713/806 mln
2:35 pm : The major indices climb to session highs, thanks to mostly broad-based buying interest. The Dow and S&P 500 are posting slight gains, and the Nasdaq is up nearly 1%.
Despite the 0.5% drop in crude prices, the energy sector is up 1.2%, which is helping to offset the financial sector's decline of 1.0%.
The majority of this session's biggest percent losers are related to earnings reports. Freddie Mac (FRE 6.71, -1.33) is posting the largest decline of 16.5% in response to its large $821 million second quarter loss, and Fannie Mae (FNM 11.93, -1.67) is down 12.2% in conjunction with the news. Whole Foods (WFMI 19.94, -2.98) plummeted 13% after the company posted 23% year-over-year drop in earnings per share and suspended its dividend.
Sprint (S 7.45, -1.10), Dean Foods (DF 21.89, -1.44) and News Corp. (NWS.A 14.27, -0.98) are also among the session's big percent losers in response to their respective earnings reports. DJ30 +28.17 NASDAQ +22.51 SP500 +1.94 NASDAQ Dec/Adv/Vol 1236/1493/1.57 bln NYSE Dec/Adv/Vol 1600/1474/747 mln
2:05 pm : The S&P 500 encountered resistence at the unchanged line yet again. The Dow has slipped into the red, but the Nasdaq continues to trade with a healthy gain.
The materials sector is outperforming the other sectors, though it is off its best level of the session. It is currently up 1.2% after being up as much as 2.2% earlier.
The sector is posting an advance even though more sector members are trading with losses than gains. Considerable influence is coming from heavyweight Freeport McMoRan (FCX 86.76, +7.76). Shares of FCX are jumping following the stock's steady descent since July's end.DJ30 -1.06 NASDAQ +13.98 SP500 -1.54 NASDAQ Dec/Adv/Vol 1372/1348/1.41 bln NYSE Dec/Adv/Vol 1722/1325/680 mln
1:30 pm : The S&P 500 and Dow are fluctuating near the unchanged mark, as the Nasdaq trades near session highs with a gain of 0.7%. Four of the ten sectors are posting gains, led by materials (+1.3%) and tech (+1.0%).
European markets closed with decent gains, benefiting from strength in financials and a $10 billion bid from mining firm Xstrata to buy platinum and gold producer Lonmin. London's FTSE rose 0.6%, Germany's Dax climbed 0.7% and France's CAC rose 1.4%.DJ30 +12.13 NASDAQ +17.22 SP500 -0.12 NASDAQ Dec/Adv/Vol 1303/1379/1.29 bln NYSE Dec/Adv/Vol 1669/1370/626 mln
1:00 pm : The S&P 500 briefly touches positive territory before retreating a bit as crude oil prices recover. Crude is now down 0.2% to $118.82 per barrel, a substantial rebound from recent lows when it was down down as much as 1.7%.
The S&P 500 and Dow are now posting very slight losses, while the Nasdaq continues to sport a gain.
On the NYSE, declining issues outpace advancers by 6-to-5. Advancers hold a very slight edge on the Nasdaq. Volume is average.DJ30 -8.06 NASDAQ +10.53 SP500 -2.10 NASDAQ Dec/Adv/Vol 1293/1376/1.17 bln NYSE Dec/Adv/Vol 1644/1368/566 mln
12:30 pm : The major indices climb to session highs, in mostly broad-based buying interest that is led by large-cap tech. The Nasdaq and Dow are now in positive territory. The S&P 500 is down -0.1%, which is a respectable recovery from its session lows of -0.8%.
The tech sector is at session highs with a gain of 0.8%. Large-cap tech leads the way, with strength in Cisco (CSCO 24.07, +1.42), Microsoft (MSFT 26.93, +0.72) and Apple (AAPL 163.80, +3.16).DJ30 +1.79 NASDAQ +13.67 SP500 -0.89 NASDAQ Dec/Adv/Vol 1346/1305/1.07 bln NYSE Dec/Adv/Vol 1695/1315/519 mln
12:00 pm : Stocks are taking a breather following yesterday's surge of nearly 3%. The S&P 500 is slightly below the unchanged mark at midday, as better-than-expected earnings from a tech giant help to offset disappointing developments out of the financial sector. A drop in crude prices for the third straight session is also helping to limit selling interest.
Crude prices are down 1.4% to $117.46 per barrel as traders digest the government's weekly energy inventory data. The report was once again mixed, as crude stockpiles unexpectedly rose, although gasoline inventory levels dropped by a large amount. After some volatile action, oil prices dropped from a gain of 1.1% to the current level, which coincided with the stock market's recovery from its session low. Crude prices are down nearly 6% this week.
The financial sector (-1.0%) is well off its session low when it was down 2.4%, but is still underperforming after Freddie Mac (FRE 7.12, -0.92) reported a loss of $821 million, or $1.63 per share. The mortgage giant increased its provision for credit losses to $2.5 billion, from $1.2 billion in the first quarter due to increases in delinquency rates and foreclosures. The firm is cutting its quarterly dividend to $0.05 or less from $0.25.
Meanwhile, Morgan Stanley (MS 42.97, -0.23) froze the home equity lines of credit for thousands of its customers, according to Bloomberg.com, citing sources. Most of the customers had homes that lost value, according to the report.
The telecom sector is the main laggard this session. Shares of Sprint Nextel (S 7.69, -0.86) are down 10% after the struggling wireless communication company reported second quarter results that disappointed investors.
The tech sector (+0.7%) is helping to offset this session's weakness. Cisco (CSCO 23.97, +1.32) reported second quarter earnings that modestly topped expectations on the top and bottom line. The company issued revenue guidance for the next two quarters that was slightly below consensus, but reiterated its long-term growth rate guidance of 12% to 17%. The Nasdaq is outperforming the S&P 500 and Dow with a slight gain thanks to strength in tech and CSCO.
In other earnings news, Ambac (ABK 5.14, +0.41), Blackstone (BX 18.89, +0.73), Devon Energy (DVN 92.38, +3.48), Marsh & McLennan (MMC 30.75, +1.41) and Nasdaq OMX (NDAQ 30.08, +3.66) are getting a boost in response to their respective quarterly results.
Dean Foods (DF 21.15, -2.19), Priceline.com (PCLN 97.12, -20.08), Time Warner (TWX 14.84, -0.04) and Whole Foods (WFMI 18.98, -3.94) are in negative territory following their respective earnings reports. DJ30 -18.32 NASDAQ +8.49 SP500 -2.70 NASDAQ Dec/Adv/Vol 1443/1188/939 mln NYSE Dec/Adv/Vol 1832/1158/462 mln
11:35 am : The major indices lift off their session lows in a mostly broad-based recovery effort. The tech sector (+0.6%) is leading the charge higher, which allows the Nasdaq to climb to positive territory. The Dow and S&P 500 are now posting a slight loss.
The stock market's recovery comes as crude quickly drops to a 1.4% loss at $117.53 per barrel as traders continue to digest the government's weekly inventory data. As a result, the energy sector (+0.1%) is trading near the unchanged mark.
The telecom sector (-2.1%) is not participating in the recovery, as it falls to a session low. Shares of Sprint Nextel (S 7.62, -0.93) are down 11% after the struggling wireless communication company reported second quarter results that disappointed investors. Earnings per share fell 76% year-over-year as revenue dropped 11% due to subscriber loss.DJ30 -25.97 NASDAQ +7.11 SP500 -2.99 NASDAQ Dec/Adv/Vol 1437/1151/793 mln NYSE Dec/Adv/Vol 1784/1152/392 mln
11:00 am : In typical fashion, crude prices trade in a volatile manner following the government's weekly energy statistics. Prices briefly dropped into negative ground, before recovering to a gain of 0.2% at $119.35 per barrel. The unexpected drop in crude stockpiles was partially offset by a larger-than-expected decline in gasoline inventories.
The stock market falls to a fresh session low and then recovers a bit. Financials (-2.0%) and consumer discretionary (-1.8%) are the main laggards. The energy (+1.1%) and materials (+1.6%) sectors continue to provide leadership, but have fallen off their session highs of 1.8% and 2.2%, respectively.
The materials sector is benefiting from a strong 8.8% advance in shares of mining company Freeport McMoRan (FCX 85.94, +6.94). FCX was added to Citigroup's Top Picks Live list, noting an attractive valuation. FCX tumbled 22% during the last five sessions on concerns of decreasing copper prices (+1.3%).
The energy sector is getting a boost from Devon Energy (DVN 91.16, +2.26). The independent gas and oil company posted a 79% year-over-year increase in earnings per share, which topped Wall Street's expectations.DJ30 -72.38 NASDAQ -11.35 SP500 -8.01 NASDAQ Dec/Adv/Vol 1605/891/615 mln NYSE Dec/Adv/Vol 1935/975/314 mln
10:35 am : Just hitting the wires, the government said that crude oil inventories rose by 1.6 million barrels, compared to the expected decline of 200,000. Crude prices were up 0.7% to $120.02 per barrel prior to the data.
The major indices recover off session lows as the energy data gets digested. There is notable weakness within financials (-2.0%) and consumer staples (-1.5%). The utilities sector (+0.6%) joins energy (+1.1%) and materials (+1.9%) in positive territory.DJ30 -55.77 NASDAQ -8.05 SP500 -5.04 NASDAQ Dec/Adv/Vol 1572/866/460 mln NYSE Dec/Adv/Vol 1848/1009/237 mln
09:55 am : The stock market continues to trade with a modest loss, as eight of the ten economic sectors are in negative territory. The two best-performing sectors in yesterday's session -- financials (-1.9%) and consumer discretionary (-1.4%) -- are the main laggards this session.
Conversely, the two worst performing sectors yesterday -- energy (+0.9%) and materials (+2.0%) -- are providing leadership this session.
Crude oil prices are up 0.5% to $119.74 per barrel after dropping nearly 5% in the two previous sessions. Crude prices will see some volatility following the government's weekly energy report at 10:35 ET.DJ30 -49.10 NASDAQ -6.24 SP500 -5.81 NASDAQ Dec/Adv/Vol 1483/822/227 mln NYSE Dec/Adv/Vol 1783/915/128 mln
09:40 am : The stock market gets off to a negative start after surging nearly 3% in the previous session. Disappointing news out of the financial sector (-2.0%) is acting as the main selling catalyst.
Shares of Freddie Mac (FRE 6.99, -1.05) are tumbling 13% after the company reported a second quarter loss of $1.63 per share and cut its quarterly dividend to $0.05 or less from $0.25. Meanwhile, Morgan Stanley (MS 42.47, -0.73) froze the home equity lines of thousands of customers, Bloomberg.com reports, citing a personal familiar with the situation.
Cisco (CSCO 23.72, +1.07) is helping to offset some of the weakness in financials after topping expectations in its latest quarter. The company issued revenue guidance for the next two quarters that was slightly below consensus, but reiterated its long-term growth rate guidance of 12% to 17%.DJ30 -69.05 NASDAQ -7.29 SP500 -7.39
09:15 am : S&P futures vs fair value: -6.0. Nasdaq futures vs fair value: -4.0.
09:00 am : S&P futures vs fair value: -5.9. Nasdaq futures vs fair value: -3.5. A lackluster start to the trading day is expected. Asset management firm Blackstone (BX) reported second quarter earnings of $0.15 per share, which is $0.07 better than Wall Street's forecast.
08:30 am : S&P futures vs fair value: -4.0. Nasdaq futures vs fair value: +0.3. The S&P 500 is set for a lower open, while the Nasdaq is set to open flat thanks to better-than-expected earnings from Cisco (CSCO). Crude oil is trading up 0.2% to $119.37 per barrel ahead of the government's weekly energy inventory report at 10:35 ET.
08:03 am : S&P futures vs fair value: -5.4. Nasdaq futures vs fair value: -2.5. Futures suggest a lower start to the trading day, following yesterday's rally of nearly 3%. Cisco (CSCO) is 4.2% higher in premarket trading after topping expectations in its latest quarter. The company issued revenue guidance for the next two quarters that was slightly below consensus, but reiterated its long-term growth guidance of 12% to 17%. Freddie Mac (FRE) is down roughly 10% in premarket trading. The company reported a second quarter loss of $1.63 per share and cut its quarterly dividend to $0.05 or less from $0.25. In other earnings news, Sprint Nextel (S), Time Warner (TWX), Dean Foods (DF), Devon Energy (DVN) all topped expectations. Bond insurer Ambac (ABK) and Whole Foods (WFMI) missed estimates.
06:17 am : S&P futures vs fair value: -5.7. Nasdaq futures vs fair value: -2.0.
06:17 am : FTSE...5456.10...+1.60...+0.0%. DAX...6522.10...+3.40...+0.1%.
06:17 am : Nikkei...13254.89...+340.23...+2.6%. Hang Seng...Holiday.........
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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