AI
Wednesday, August 20, 2008 9:21:31 PM
Market Update 080820
http://biz.yahoo.com/mu/update.html
4:10 pm : Stocks settled with solid gains following a late-day surge in what was a volatile session on a relatively slow news day. Volume was light, as it has been throughout the week.
Six of the ten economic sectors posted a gain as market participants digested a massive build in crude oil inventories, speculation that government sponsored enterprises Fannie Mae (FNM 4.47, -1.54) and Freddie Mac (FRE 3.23, -0.94) will need a government bailout and solid earnings from Hewlett-Packard (HPQ 46.20, +2.51).
Crude oil prices traded in volatile fashion, which exacerbated the stock market's choppy session. The government released its weekly energy report, which showed a 9.3 million barrel increase in crude stockpiles -- the largest since 2001. Prices were up 2.2% at session highs and down 1.7% at session lows before settling with a modest gain of 0.4% at $114.98 per barrel.
The financial sector saw large swings -- falling as much as 1.6% and rising as much 1.8% -- as market participants speculated if Fannie Mae and Freddie Mac would need to be bailed out by the federal government. There was no specific item that prompted the steep declines in Fannie and Freddie, although several reports addressed the issue of a bailout -- including a Wall Street Journal article that said Freddie executives were set to meet with Treasury Department officials.
Still, investors looked past the Fannie and Freddie turmoil, sending financials to a 1.7% gain with notable strength in diversified banks (+3.7%).
Hewlett-Packard reported quarterly earnings of $0.83, which topped expectations by three cents thanks to 10.5% year-over-year revenue growth that was driven by strong notebook sales and the weak dollar. The Dow component also issued fiscal fourth quarter earnings guidance that was above estimates. HPQ rose 5.8% for the day, but the broader tech sector was unable to post much of an advance, up just 0.3%.
Commodity related stocks saw the most buying interest. The energy sector rallied 2.8%, with strength in oil production and exploration companies (+5.0%). The materials sector rose 2.1%, as diversified mining company Freeport McMoRan (FCX 90.91, +6.21) rallied 7.3% on no specific news item. DJ30 +68.88 NASDAQ +4.72 NQ100 +0.2% R2K +0.2% SP400 +0.4% SP500 +7.85 NASDAQ Adv/Vol/Dec 1379/1.77 bln/1414 NYSE Adv/Vol/Dec 1654/1.07 bln/1448
3:30 pm : The major indices trade near the unchanged mark going into the final half-hour of the trading day. Crude prices settled with a modest gain of 0.4% at $114.98 per barrel.
Shares of student lender SLM Corp (SLM 13.94, +0.95), also known as Sallie Mae, receive a boost on news that they are the first company to receive funds under the Department of Education's new program that guarantees there will not be a shortage of student loans this year. Sallie Mae estimates that it will originate $20 billion or more in federal Stafford and PLUS loans this year.DJ30 +18.82 NASDAQ -4.97 SP500 +1.74 NASDAQ Adv/Vol/Dec 1205/1.44 bln/1562 NYSE Adv/Vol/Dec 1371/786 mln/1723
3:00 pm : The stock market trades with a slight gain, as strength in the energy (+2.8%) and materials (+1.8%) sectors offsets broad-based weakness in other areas of the stock market.
Treasuries are enjoying some buying interest. The 10-year note is up 11 ticks, sending its yield down to 3.79%.
Minneapolis Fed President Stern said that inflation is higher than he would like it, noting that the Fed is in a challenging environment and is not meeting either goal of its dual mandate. Stern said it is a "good time to be patient" in setting the fed funds rate.DJ30 +27.60 NASDAQ -0.46 SP500 +2.40 NASDAQ Adv/Vol/Dec 1167/1.30 bln/1579 NYSE Adv/Vol/Dec 1325/706 mln/1743
2:30 pm : The major indices come under modest selling pressure as crude oil prices rebound to a 0.7% gain at $115.23 per barrel. Crude prices were down as much as 1.7% following the large build in inventory levels.
Financials are leading the way lower, down 1.1%. Consumer discretionary stocks (-1.0%) are also on the decline.
Meanwhile, the energy sector (+2.6%) spikes to session highs, with notable strength in oil and gas exploration stocks (+4.7%).
The strength in energy stocks is helping to limit the S&P 500's loss to only 0.1%. The Nasdaq (-0.4%) is now underperforming after outperforming its counterparts for most of the session.DJ30 -5.38 NASDAQ -9.87 SP500 -1.62 NASDAQ Adv/Vol/Dec 1108/1.21 bln/1645 NYSE Adv/Vol/Dec 1287/654 mln/1775
2:00 pm : The stock market trades in uneventful fashion in slow news. Five of the ten sectors post a gain, led by energy (+1.7%) and materials (+1.3%). Healthcare (-0.5%) and industrials (-0.4%) are the main laggards.DJ30 +34.28 NASDAQ +4.40 SP500 +2.29 NASDAQ Adv/Vol/Dec 1385/1.09 bln/1335 NYSE Adv/Vol/Dec 1521/591 mln/1513
1:30 pm : The major indices continue to fluctuate near the unchanged mark as news flow slows down. Crude oil futures recover much of their losses, now down just 0.2% to $114.28 per barrel.
The S&P 500 is nearly split down the middle, with 249 stocks posting a gain. Hewlett-Packard (HPQ 46.02, +2.33), Bank of America (BAC 28.67, +0.59) and Monsanto (MON 116.90, +4.04) lead the way. General Electric (GE 28.41, -0.30), Intel (INTC 23.27, -0.32) and Morgan Stanley (MS 36.71, -1.37) are the main laggards.DJ30 +28.58 NASDAQ +2.75 SP500 +2.04 NASDAQ Adv/Vol/Dec 1306/1.01 bln/1393 NYSE Adv/Vol/Dec 1457/549 mln/1555
1:05 pm : The major indices faltered to briefly trade in negative ground, led lower by a retreat in financials (-0.3%) and healthcare (-0.5%). Financials and healthcare are the second and fourth largest economic sectors in the S&P 500, combining to represent more than 27% of index weight.
Thrifts & mortgage players remain one of the worst performing industry groups in the financial sector. They are down 7.7% as Fannie Mae (4.92, -1.09) and Freddie Mac (FRE 3.30, -0.87) fall to fresh 52-week lows.
Within the healthcare sector managed healthcare providers like United Health Group (UNH 30.14, -0.83) are underperforming.DJ30 +10.18 NASDAQ -1.14 SP500 +0.23 NASDAQ Adv/Vol/Dec 1226/942 mln/1460 NYSE Adv/Vol/Dec 1366/514 mln/1642
12:30 pm : Stocks slip back near the unchanged mark in a broad-based retreat. Financials are now down 0.1%.
Market breadth is nearly neutral. Decliners outpace advancers by 8-to-7 on the NYSE, while the Nasdaq is even. Volume is relatively light, which has been the case throughout the week.
Crude is down 0.8% to $113.64 per barrel, as it continues to trade in a volatile manner.DJ30 +21.57 NASDAQ +1.26 SP500 +1.48 NASDAQ Adv/Vol/Dec 1307/844 mln/1359 NYSE Adv/Vol/Dec 1393/460 mln/1587
12:00 pm : The stock market has traded in volatile fashion, as have crude prices. At the midday point, stocks are posting a modest gain as market participants digest better-than-expected earnings from a tech giant, continued concerns regarding government sponsored enterprises Fannie Mae and Freddie Mac and the largest weekly increase in crude oil inventories since 2001.
Crude oil prices are down 1.4% to $112.93 per barrel, after retreating from a gain of 2.2% following the government's weekly energy data. Crude stockpiles rose by 9.3 million barrels, the largest weekly increase in 7.5 years.
The reversal in crude prices gave a lift to the stock market, which rebounded to a gain of 0.7% after being down 0.4% at session lows. Stocks have since eased a bit, posting a 0.3% advance at midday.
Financials (+0.9%) rebounded from an early loss to a leadership position, as market participants looked past continued concern that Fannie Mae (FNM 5.19, -0.82) and Freddie Mac (FRE 3.59, -0.58) will need to be bailed out by the federal government. Fannie and Freddie are still posting substantial losses, but have cut their decline roughly in half after Fannie CEO Mudd said the U.S. Treasury has not offered any help and Fannie has not asked for any, according to reports. Diversified banks stocks (+1.7%) are leading the way.
The tech sector is outperforming with a gain of 0.7%. Hewlett-Packard (HPQ 45.61, +1.92) reported quarterly earnings of $0.83, which topped expectations by three cents thanks to 10.5% year-over-year revenue growth. The Dow component also issued fiscal fourth quarter earnings guidance that was above estimates.
Three sectors are posting a loss, although their decline is modest. The industrial sector (-0.3%) is the main laggard.
Commodities are down 0.3% as the dollar climbs 0.5%. The Dollar Index is up 0.6% this year after rallying roughly 7% this month. DJ30 +41.69 NASDAQ +10.30 SP500 +4.19 NASDAQ Adv/Vol/Dec 1432/750 mln/1188 NYSE Adv/Vol/Dec 1611/423 mln/1358
11:30 am : Stocks continue to hold solid gains as crude prices (-1.3%, $113.95) retreat into negative territory. The financial (+1.5%), tech (+1.0%) and materials (+0.9%) sectors are providing leadership.
Retailers (+1.2%) received a nice boost as oil prices retreated. Target (TGT 50.73, +1.01) is leading the way after Goldman Sachs reinstated its Buy rating, according to reports. Conversely, Macy's (M 20.26, -0.06) and Kohl's (KSS 48.59, -0.23) are the main laggards after being cut to Neutral at Goldman, according to reports.
DJ30 +70.28 NASDAQ +18.21 SP500 +6.87 NASDAQ Adv/Vol/Dec 1589/644 mln/1000 NYSE Adv/Vol/Dec 1802/371 mln/1134
11:00 am : Crude oil prices are up 0.1% to $115.53 per barrel. Prices have retreated from the preinventory data high of +2.2%, but are holding up reasonably well considering the 9.3 million barrel increase in crude inventory levels marks the largest weekly increase since February 2001.
Some of the selling interest is being limited by the large drop in gasoline inventories. U.S. inventories now stand at 306 million barrels, which is on par with the 309 million barrel 10-year average.
The stock market climbs to a session high in a mostly broad-based fashion. Only the consumer staples sector (-0.3%) remains in negative territory. Financials lead the recovery effort, now up 1.5% after being down as much as 1.6%.
Energy stocks still provide leadership (+0.9%), but have slipped from session highs as crude prices give up gains.DJ30 +85.41 NASDAQ +23.63 SP500 +8.51 NASDAQ Adv/Vol/Dec 1581/510 mln/929 NYSE Adv/Vol/Dec 1711/297 mln/1174
10:35 am : Just hitting the wires, crude inventories for the week ended Aug. 16 rose a massive 9.4 million barrels, much larger than the expected increase of 1.0 million barrels. Meanwhile, gasoline stockpiles fell 6.3 million barrels, which was roughly twice the expected decrease. Crude prices were trading up 2.1% to $116.92 per barrel just prior to the data.
The stock market bounced out of negative territory and then extended gains as the oil data hit the wires. Six of the ten economic sectors are posting a gain.
The financial sector (+0.2%) climbs from session lows. Fannie Mae (FNM 5.09, -0.92) and Freddie Mac (FRE 3.37, -0.80) continue to post large losses, although Lehman Brothers (LEH 13.63, +0.56) is now up 4.2% after falling 4.4% in the early going.DJ30 +21.90 NASDAQ +11.70 SP500 +3.03 NASDAQ Adv/Vol/Dec 1310/355 mln/1118 NYSE Adv/Vol/Dec 1272/212 mln/1554
10:00 am : The stock market quickly gives up its opening gains as continued concerns regarding the financial sector weigh on investor sentiment. The S&P 500 is posting a slight loss, while the Nasdaq trades near the unchanged mark.
The financial sector is the main laggard with a loss of 1.1%. Fannie Mae (FNM 4.91, -1.10) and Freddie Mac (FRE 3.35, -0.82) tumble to decade lows. The New York Times reported that some investors feel a government bailout for the beleaguered government sponsored enterprises is inevitable.
Weakness is not just limited to financial stocks, as six of the ten economic sectors are in the red. The industrial sector is down 1.0%, consumer discretionary is down 0.9% and the consumer staples sector has fallen 0.9%.
The energy sector (+1.7%) is providing leadership, as was the case yesterday. The materials (+0.6%) and tech sectors (+0.2%) are also outperforming.DJ30 -32.41 NASDAQ +0.50 SP500 -2.72 NASDAQ Adv/Vol/Dec 1030/173 mln/1222 NYSE Adv/Vol/Dec 1048/117 mln/1628
09:35 am : The stock market gets off to a slightly higher start, with the tech-heavy Nasdaq outperforming thanks to solid earnings from a tech giant.
Hewlett-Packard (HPQ 45.22, +1.53) reported quarterly earnings of $0.83, which topped expectations by three cents thanks to 10.5% year-over-year revenue growth. The Dow component also issued fiscal fourth quarter earnings guidance that was above estimates.
Merrill Lynch (MER 23.66, -0.16), Lehman Brothers (LEH 12.82, -0.26), Citigroup (C 17.15, -0.05), and JPMorgan Chase (JPM 35.44, -0.17) all had their third quarter earnings estimates cut at Goldman Sachs, according to Reuters. The financial sector is down 0.3%.
Crude oil prices are up 1.4% to $116.10 per barrel ahead of the government's weekly energy report at 10:35 ET. Goldman Sachs reiterated its forecast of $149 per barrel oil, according to CNBC.DJ30 +4.88 NASDAQ +9.42 SP500 +1.55
09:11 am : S&P futures vs fair value: +1.9. Nasdaq futures vs fair value: +9.7.
08:57 am : S&P futures vs fair value: +2.9. Nasdaq futures vs fair value: +11.2.
08:30 am : S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +10.1. Futures point to a higher start, but have given up a good portion of this morning's advance as oil prices climb 1.7%.
08:00 am : S&P futures vs fair value: +5.7. Nasdaq futures vs fair value: +16.4. Stock futures suggest a higher open following better-than-expected earnings from a tech giant. Hewlett-Packard (HPQ) reported earnings of $0.86 per share for its latest quarter, which topped Wall Street's forecast by three cents. HPQ is up 2.5% in premarket trading, and is indirectly giving a boost to the tech-heavy Nasdaq 100. The futures market's advance this morning comes even as several financial firms get their earnings estimates cut at Goldman Sachs, according to Reuters. Meanwhile, crude oil is up 0.9% to $115.52 per barrel ahead of the government's weekly energy report at 10:35 ET. Goldman Sachs reiterated its $149 per barrel crude oil price forecast, according to CNBC.
06:21 am : S&P futures vs fair value: +6.8. Nasdaq futures vs fair value: +19.4.
06:18 am : FTSE...5360.90...+40.50...+0.8%. DAX...6305.35...+22.92...+0.4%.
06:18 am : Nikkei...12851.69...-13.36...-0.1%. Hang Seng...20931.26...+446.89...+2.2%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
http://biz.yahoo.com/mu/update.html
4:10 pm : Stocks settled with solid gains following a late-day surge in what was a volatile session on a relatively slow news day. Volume was light, as it has been throughout the week.
Six of the ten economic sectors posted a gain as market participants digested a massive build in crude oil inventories, speculation that government sponsored enterprises Fannie Mae (FNM 4.47, -1.54) and Freddie Mac (FRE 3.23, -0.94) will need a government bailout and solid earnings from Hewlett-Packard (HPQ 46.20, +2.51).
Crude oil prices traded in volatile fashion, which exacerbated the stock market's choppy session. The government released its weekly energy report, which showed a 9.3 million barrel increase in crude stockpiles -- the largest since 2001. Prices were up 2.2% at session highs and down 1.7% at session lows before settling with a modest gain of 0.4% at $114.98 per barrel.
The financial sector saw large swings -- falling as much as 1.6% and rising as much 1.8% -- as market participants speculated if Fannie Mae and Freddie Mac would need to be bailed out by the federal government. There was no specific item that prompted the steep declines in Fannie and Freddie, although several reports addressed the issue of a bailout -- including a Wall Street Journal article that said Freddie executives were set to meet with Treasury Department officials.
Still, investors looked past the Fannie and Freddie turmoil, sending financials to a 1.7% gain with notable strength in diversified banks (+3.7%).
Hewlett-Packard reported quarterly earnings of $0.83, which topped expectations by three cents thanks to 10.5% year-over-year revenue growth that was driven by strong notebook sales and the weak dollar. The Dow component also issued fiscal fourth quarter earnings guidance that was above estimates. HPQ rose 5.8% for the day, but the broader tech sector was unable to post much of an advance, up just 0.3%.
Commodity related stocks saw the most buying interest. The energy sector rallied 2.8%, with strength in oil production and exploration companies (+5.0%). The materials sector rose 2.1%, as diversified mining company Freeport McMoRan (FCX 90.91, +6.21) rallied 7.3% on no specific news item. DJ30 +68.88 NASDAQ +4.72 NQ100 +0.2% R2K +0.2% SP400 +0.4% SP500 +7.85 NASDAQ Adv/Vol/Dec 1379/1.77 bln/1414 NYSE Adv/Vol/Dec 1654/1.07 bln/1448
3:30 pm : The major indices trade near the unchanged mark going into the final half-hour of the trading day. Crude prices settled with a modest gain of 0.4% at $114.98 per barrel.
Shares of student lender SLM Corp (SLM 13.94, +0.95), also known as Sallie Mae, receive a boost on news that they are the first company to receive funds under the Department of Education's new program that guarantees there will not be a shortage of student loans this year. Sallie Mae estimates that it will originate $20 billion or more in federal Stafford and PLUS loans this year.DJ30 +18.82 NASDAQ -4.97 SP500 +1.74 NASDAQ Adv/Vol/Dec 1205/1.44 bln/1562 NYSE Adv/Vol/Dec 1371/786 mln/1723
3:00 pm : The stock market trades with a slight gain, as strength in the energy (+2.8%) and materials (+1.8%) sectors offsets broad-based weakness in other areas of the stock market.
Treasuries are enjoying some buying interest. The 10-year note is up 11 ticks, sending its yield down to 3.79%.
Minneapolis Fed President Stern said that inflation is higher than he would like it, noting that the Fed is in a challenging environment and is not meeting either goal of its dual mandate. Stern said it is a "good time to be patient" in setting the fed funds rate.DJ30 +27.60 NASDAQ -0.46 SP500 +2.40 NASDAQ Adv/Vol/Dec 1167/1.30 bln/1579 NYSE Adv/Vol/Dec 1325/706 mln/1743
2:30 pm : The major indices come under modest selling pressure as crude oil prices rebound to a 0.7% gain at $115.23 per barrel. Crude prices were down as much as 1.7% following the large build in inventory levels.
Financials are leading the way lower, down 1.1%. Consumer discretionary stocks (-1.0%) are also on the decline.
Meanwhile, the energy sector (+2.6%) spikes to session highs, with notable strength in oil and gas exploration stocks (+4.7%).
The strength in energy stocks is helping to limit the S&P 500's loss to only 0.1%. The Nasdaq (-0.4%) is now underperforming after outperforming its counterparts for most of the session.DJ30 -5.38 NASDAQ -9.87 SP500 -1.62 NASDAQ Adv/Vol/Dec 1108/1.21 bln/1645 NYSE Adv/Vol/Dec 1287/654 mln/1775
2:00 pm : The stock market trades in uneventful fashion in slow news. Five of the ten sectors post a gain, led by energy (+1.7%) and materials (+1.3%). Healthcare (-0.5%) and industrials (-0.4%) are the main laggards.DJ30 +34.28 NASDAQ +4.40 SP500 +2.29 NASDAQ Adv/Vol/Dec 1385/1.09 bln/1335 NYSE Adv/Vol/Dec 1521/591 mln/1513
1:30 pm : The major indices continue to fluctuate near the unchanged mark as news flow slows down. Crude oil futures recover much of their losses, now down just 0.2% to $114.28 per barrel.
The S&P 500 is nearly split down the middle, with 249 stocks posting a gain. Hewlett-Packard (HPQ 46.02, +2.33), Bank of America (BAC 28.67, +0.59) and Monsanto (MON 116.90, +4.04) lead the way. General Electric (GE 28.41, -0.30), Intel (INTC 23.27, -0.32) and Morgan Stanley (MS 36.71, -1.37) are the main laggards.DJ30 +28.58 NASDAQ +2.75 SP500 +2.04 NASDAQ Adv/Vol/Dec 1306/1.01 bln/1393 NYSE Adv/Vol/Dec 1457/549 mln/1555
1:05 pm : The major indices faltered to briefly trade in negative ground, led lower by a retreat in financials (-0.3%) and healthcare (-0.5%). Financials and healthcare are the second and fourth largest economic sectors in the S&P 500, combining to represent more than 27% of index weight.
Thrifts & mortgage players remain one of the worst performing industry groups in the financial sector. They are down 7.7% as Fannie Mae (4.92, -1.09) and Freddie Mac (FRE 3.30, -0.87) fall to fresh 52-week lows.
Within the healthcare sector managed healthcare providers like United Health Group (UNH 30.14, -0.83) are underperforming.DJ30 +10.18 NASDAQ -1.14 SP500 +0.23 NASDAQ Adv/Vol/Dec 1226/942 mln/1460 NYSE Adv/Vol/Dec 1366/514 mln/1642
12:30 pm : Stocks slip back near the unchanged mark in a broad-based retreat. Financials are now down 0.1%.
Market breadth is nearly neutral. Decliners outpace advancers by 8-to-7 on the NYSE, while the Nasdaq is even. Volume is relatively light, which has been the case throughout the week.
Crude is down 0.8% to $113.64 per barrel, as it continues to trade in a volatile manner.DJ30 +21.57 NASDAQ +1.26 SP500 +1.48 NASDAQ Adv/Vol/Dec 1307/844 mln/1359 NYSE Adv/Vol/Dec 1393/460 mln/1587
12:00 pm : The stock market has traded in volatile fashion, as have crude prices. At the midday point, stocks are posting a modest gain as market participants digest better-than-expected earnings from a tech giant, continued concerns regarding government sponsored enterprises Fannie Mae and Freddie Mac and the largest weekly increase in crude oil inventories since 2001.
Crude oil prices are down 1.4% to $112.93 per barrel, after retreating from a gain of 2.2% following the government's weekly energy data. Crude stockpiles rose by 9.3 million barrels, the largest weekly increase in 7.5 years.
The reversal in crude prices gave a lift to the stock market, which rebounded to a gain of 0.7% after being down 0.4% at session lows. Stocks have since eased a bit, posting a 0.3% advance at midday.
Financials (+0.9%) rebounded from an early loss to a leadership position, as market participants looked past continued concern that Fannie Mae (FNM 5.19, -0.82) and Freddie Mac (FRE 3.59, -0.58) will need to be bailed out by the federal government. Fannie and Freddie are still posting substantial losses, but have cut their decline roughly in half after Fannie CEO Mudd said the U.S. Treasury has not offered any help and Fannie has not asked for any, according to reports. Diversified banks stocks (+1.7%) are leading the way.
The tech sector is outperforming with a gain of 0.7%. Hewlett-Packard (HPQ 45.61, +1.92) reported quarterly earnings of $0.83, which topped expectations by three cents thanks to 10.5% year-over-year revenue growth. The Dow component also issued fiscal fourth quarter earnings guidance that was above estimates.
Three sectors are posting a loss, although their decline is modest. The industrial sector (-0.3%) is the main laggard.
Commodities are down 0.3% as the dollar climbs 0.5%. The Dollar Index is up 0.6% this year after rallying roughly 7% this month. DJ30 +41.69 NASDAQ +10.30 SP500 +4.19 NASDAQ Adv/Vol/Dec 1432/750 mln/1188 NYSE Adv/Vol/Dec 1611/423 mln/1358
11:30 am : Stocks continue to hold solid gains as crude prices (-1.3%, $113.95) retreat into negative territory. The financial (+1.5%), tech (+1.0%) and materials (+0.9%) sectors are providing leadership.
Retailers (+1.2%) received a nice boost as oil prices retreated. Target (TGT 50.73, +1.01) is leading the way after Goldman Sachs reinstated its Buy rating, according to reports. Conversely, Macy's (M 20.26, -0.06) and Kohl's (KSS 48.59, -0.23) are the main laggards after being cut to Neutral at Goldman, according to reports.
DJ30 +70.28 NASDAQ +18.21 SP500 +6.87 NASDAQ Adv/Vol/Dec 1589/644 mln/1000 NYSE Adv/Vol/Dec 1802/371 mln/1134
11:00 am : Crude oil prices are up 0.1% to $115.53 per barrel. Prices have retreated from the preinventory data high of +2.2%, but are holding up reasonably well considering the 9.3 million barrel increase in crude inventory levels marks the largest weekly increase since February 2001.
Some of the selling interest is being limited by the large drop in gasoline inventories. U.S. inventories now stand at 306 million barrels, which is on par with the 309 million barrel 10-year average.
The stock market climbs to a session high in a mostly broad-based fashion. Only the consumer staples sector (-0.3%) remains in negative territory. Financials lead the recovery effort, now up 1.5% after being down as much as 1.6%.
Energy stocks still provide leadership (+0.9%), but have slipped from session highs as crude prices give up gains.DJ30 +85.41 NASDAQ +23.63 SP500 +8.51 NASDAQ Adv/Vol/Dec 1581/510 mln/929 NYSE Adv/Vol/Dec 1711/297 mln/1174
10:35 am : Just hitting the wires, crude inventories for the week ended Aug. 16 rose a massive 9.4 million barrels, much larger than the expected increase of 1.0 million barrels. Meanwhile, gasoline stockpiles fell 6.3 million barrels, which was roughly twice the expected decrease. Crude prices were trading up 2.1% to $116.92 per barrel just prior to the data.
The stock market bounced out of negative territory and then extended gains as the oil data hit the wires. Six of the ten economic sectors are posting a gain.
The financial sector (+0.2%) climbs from session lows. Fannie Mae (FNM 5.09, -0.92) and Freddie Mac (FRE 3.37, -0.80) continue to post large losses, although Lehman Brothers (LEH 13.63, +0.56) is now up 4.2% after falling 4.4% in the early going.DJ30 +21.90 NASDAQ +11.70 SP500 +3.03 NASDAQ Adv/Vol/Dec 1310/355 mln/1118 NYSE Adv/Vol/Dec 1272/212 mln/1554
10:00 am : The stock market quickly gives up its opening gains as continued concerns regarding the financial sector weigh on investor sentiment. The S&P 500 is posting a slight loss, while the Nasdaq trades near the unchanged mark.
The financial sector is the main laggard with a loss of 1.1%. Fannie Mae (FNM 4.91, -1.10) and Freddie Mac (FRE 3.35, -0.82) tumble to decade lows. The New York Times reported that some investors feel a government bailout for the beleaguered government sponsored enterprises is inevitable.
Weakness is not just limited to financial stocks, as six of the ten economic sectors are in the red. The industrial sector is down 1.0%, consumer discretionary is down 0.9% and the consumer staples sector has fallen 0.9%.
The energy sector (+1.7%) is providing leadership, as was the case yesterday. The materials (+0.6%) and tech sectors (+0.2%) are also outperforming.DJ30 -32.41 NASDAQ +0.50 SP500 -2.72 NASDAQ Adv/Vol/Dec 1030/173 mln/1222 NYSE Adv/Vol/Dec 1048/117 mln/1628
09:35 am : The stock market gets off to a slightly higher start, with the tech-heavy Nasdaq outperforming thanks to solid earnings from a tech giant.
Hewlett-Packard (HPQ 45.22, +1.53) reported quarterly earnings of $0.83, which topped expectations by three cents thanks to 10.5% year-over-year revenue growth. The Dow component also issued fiscal fourth quarter earnings guidance that was above estimates.
Merrill Lynch (MER 23.66, -0.16), Lehman Brothers (LEH 12.82, -0.26), Citigroup (C 17.15, -0.05), and JPMorgan Chase (JPM 35.44, -0.17) all had their third quarter earnings estimates cut at Goldman Sachs, according to Reuters. The financial sector is down 0.3%.
Crude oil prices are up 1.4% to $116.10 per barrel ahead of the government's weekly energy report at 10:35 ET. Goldman Sachs reiterated its forecast of $149 per barrel oil, according to CNBC.DJ30 +4.88 NASDAQ +9.42 SP500 +1.55
09:11 am : S&P futures vs fair value: +1.9. Nasdaq futures vs fair value: +9.7.
08:57 am : S&P futures vs fair value: +2.9. Nasdaq futures vs fair value: +11.2.
08:30 am : S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +10.1. Futures point to a higher start, but have given up a good portion of this morning's advance as oil prices climb 1.7%.
08:00 am : S&P futures vs fair value: +5.7. Nasdaq futures vs fair value: +16.4. Stock futures suggest a higher open following better-than-expected earnings from a tech giant. Hewlett-Packard (HPQ) reported earnings of $0.86 per share for its latest quarter, which topped Wall Street's forecast by three cents. HPQ is up 2.5% in premarket trading, and is indirectly giving a boost to the tech-heavy Nasdaq 100. The futures market's advance this morning comes even as several financial firms get their earnings estimates cut at Goldman Sachs, according to Reuters. Meanwhile, crude oil is up 0.9% to $115.52 per barrel ahead of the government's weekly energy report at 10:35 ET. Goldman Sachs reiterated its $149 per barrel crude oil price forecast, according to CNBC.
06:21 am : S&P futures vs fair value: +6.8. Nasdaq futures vs fair value: +19.4.
06:18 am : FTSE...5360.90...+40.50...+0.8%. DAX...6305.35...+22.92...+0.4%.
06:18 am : Nikkei...12851.69...-13.36...-0.1%. Hang Seng...20931.26...+446.89...+2.2%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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