AI
Tuesday, August 26, 2008 8:12:45 PM
Market Update 080826
http://biz.yahoo.com/mu/update.html
4:20 pm : The major indices ended Tuesday mixed in a choppy session that marked the lowest volume of the year. Corporate news was light, but there was plenty of economic data and movement in commodities.
The S&P 500 posted a 0.4% gain with seven of the ten economic sectors in the green as traders digested a spike in crude prices and several better-than-expected economic releases. Only 856 million shares exchanged hands on the NYSE, marking the lowest amount of volume in 2008.
Crude prices traded in a volatile manner, falling 2.4% in early trade, and then spiking to a gain of 2.4% on threats of a hurricane disrupting production in the Gulf of Mexico. Crude prices eventually settled with a gain of 1.0% at $116.26 per barrel, while natural gas prices rallied 5.7%.
The energy sector (+1.8%) provided leadership, benefiting from the gains in crude and natural gas prices. Anadarko Petroleum (APC 61.54, +3.70) gave the sector an added boost after the company authorized a share repurchase program of up to $5 billion.
Financials stocks fell to a 1% loss in afternoon trading on news that the FDIC increased the number of problem institutions to 117 in the second quarter from 90, with assets at problem institutions increasing to $78 billion from $26 billion. This headline is not as bad as it seems, considering $32 billion of the asset increase was due to IndyMac (which already failed) and 98% of institutions remain well capitalized. As a result, financials recovered from the knee-jerk reaction to the headlines to finish the day with a 0.7% gain.
The tech sector was the worst-performing area with a 0.4% loss. The tech-heavy Nasdaq composite posted a loss of 0.2% as a result.
On the economic front, July new home sales rose 2.4% to a seasonally adjusted annualized rate of 515,000 from a downwardly revised June reading of 503,000, according to the U.S. Department of Commerce. Economists expected 525,000 sales. New home sales are down 35% from the prior year, but have held somewhat steady near 500,000 in recent months.
The S&P/Case-Shiller 20 city composite posted a 15.9% year-over-year drop in home prices in June. This marks the largest decline on record, but was slightly better than the expected 16.2% decrease. In addition, the acceleration of the decline is moderating, indicating that a bottoming in the housing industry is taking place. A separate report from OFHEO showed flat home prices in June compared to May, which topped expectations. Homebuilding stocks fell 2.9%.
Consumer confidence rose 9.6% month-over-month in August to 56.9, topping the median economist estimate of 53.0. The survey shows increased plans to buy a car, a home and major appliances within the next six months.
Briefing.com does not put much weight into confidence surveys compared to hard data. Nonetheless, the reading counters conventional wisdom that the consumer is going into retrenchment mode.
Separately, the FOMC released the minutes from its Aug. 5 meeting. The minutes did not tell the market anything it did not already know, and as a result had a limited trading impact. DJ30 +26.62 NASDAQ -3.62 NQ100 -0.2% R2K +0.4% SP400 +0.5% SP500 +4.67 NASDAQ Adv/Vol/Dec 1520/1.46 bln/1296 NYSE Adv/Vol/Dec 1961/856 mln/1145
3:30 pm : The S&P 500 is back at the unchanged mark as financials (-0.2%) recover most of their losses. Despite the release of the FOMC minutes and the FDIC quarterly report, volume remains very light.
According to the FDIC, the number of problem institution assets increased to $78 billion from $26 billion. This headline is not as bad as it seems, considering $32 billion of the asset increase was due to IndyMac (which has already failed) and 98% of institutions remain well capitalized.DJ30 -2.12 NASDAQ +0.53 SP500 -10.97 NASDAQ Adv/Vol/Dec 1288/1.20 bln/1512 NYSE Adv/Vol/Dec 1630/616 mln/1448
3:00 pm : The stock market falls to a fresh session low and holds near that level. Losses are being kept in check thanks to a strong 1.5% gain in energy stocks.
The energy sector is benefiting from a 1.0% rise in crude prices and a 5.3% gain in natural gas. Anadarko Petroleum (APC 61.41, +3.57) is giving the sector an added boost after the company authorized a share repurchase program of up to $5 billion.DJ30 -28.99 NASDAQ -18.80 SP500 -2.63 NASDAQ Adv/Vol/Dec 1150/1.09 bln/1627 NYSE Adv/Vol/Dec 1491/561 mln/1583
2:30 pm : CNBC reports that 117 financial institutions are on the FDIC's trouble list, up from 90 in the first quarter. However, the number of troubled institutions is still well below the levels seen during the savings and loan crisis of the 1980s. Still, financials (-0.9%) fall to session lows on the news, although losses are relatively well contained.
Meanwhile, three mortgage insurance groups had their counterparty credit ratings downgraded at Standard & Poor's -- Old Republic International (ORI 10.13), PMI Group (PMI 2.98, -0.04) and Radian (RDN 3.91, +0.43).
Seven sectors are now posting a loss, with tech stocks (-0.9%) also facing significant selling pressure. The stock market posts a slight loss.DJ30 -36.07 NASDAQ -18.02 SP500 -2.98 NASDAQ Adv/Vol/Dec 1147/998 mln/1604 NYSE Adv/Vol/Dec 1496/515 mln/1564
2:05 pm : The FOMC minutes for the Aug. 5 meeting were just released. At the Aug. 5 meeting, the FOMC kept the fed funds rate unchanged at 2.00%, acknowledging both downside risk to growth and increased inflation risks. Dallas Fed President Fisher dissented, preferring a rate increase, as he did at the previous meeting.
Fed officials are concerned that inflation won't ease until 2009, but most participants anticipate moderation in the coming quarters. In general, Fed officials expect the next policy move will be to raise rates.
The major indices had already slipped a bit, and then have a mostly muted response immediately after the minutes release.DJ30 -24.84 NASDAQ -11.98 SP500 -0.90 NASDAQ Adv/Vol/Dec 1698/874 mln/1338 NYSE Adv/Vol/Dec 1698/454 mln/1338
1:30 pm : The major indices trade in mixed fashion after the financial sector (-0.2%) pulls back into negative territory.
Financials were up as much as 1.5%, but gave up gains as the investment banks and brokerages industry group (-0.7%) gave in to selling pressure.
Although four of the ten economic sectors are in negative territory, none are posting a significant loss. The tech sector is posting the largest decline of 0.4%.DJ30 -1.55 NASDAQ -4.50 SP500 +1.71 NASDAQ Adv/Vol/Dec 1424/794 mln/1264 NYSE Adv/Vol/Dec 1739/415 mln/1264
1:05 pm : The S&P 500 continues to outperform its counterparts. The S&P 500 is benefitting from energy behemoth Exxon Mobil (XOM 79.44, +0.73) and financial giant JPMorgan Chase (JPM 36.66, +0.53); the two are also lending support to the Dow, though.
Roughly 60% of the S&P 500 components are trading with gains. Roughly half the Dow components are trading higher. Approximately half the Nasdaq components are trading in the green as well, but its weakness is reflected by the influence of large-cap tech stocks.DJ30 +8.87 NASDAQ -2.27 SP500 +2.30 NASDAQ Adv/Vol/Dec 1459/736 mln/1226 NYSE Adv/Vol/Dec 1761/386 mln/1239
12:30 pm : Stocks attempted to recover to session highs, but buying interest fades as crude prices (+0.8%, $116.11) go back on the rise.
Market breadth leans positive, with advancers outpacing decliners by 5-to-3 on the NYSE and by 11-to-8 on the Nasdaq. Volume is light with only 344 million shares exchanging hands on the NYSE -- only slightly more than yesterday's volume at this time, which marked the lowest of the year.DJ30 -1.06 NASDAQ -0.95 SP500 +2.52 NASDAQ Adv/Vol/Dec 1528/645 mln/1115 NYSE Adv/Vol/Dec 1857/344 mln/1127
12:00 pm : The stock market is posting a modest gain at midday, as some better-than-expected economic data offset volatile oil prices. Volume is once again very light on what has been a relatively slow news day.
Crude prices fell as much as 2.4% in early trade, but then rebounded to a gain of 2.4% on concerns regarding a hurricane threat in the Gulf of Mexico. Prices have since eased a bit, with a gain of 0.6% at $115.82 per barrel. Natural gas prices have rallied 5.2%.
This session's economic data are helping to limit the negative impact that higher oil prices are having on market sentiment. July new home sales rose 2.4% to a seasonally adjusted annualized rate of 515,000 from a downwardly revised June reading of 503,000, according to the U.S. Department of Commerce. Economists expected 525,000 sales. New home sales are down 35% from the prior year, but have held somewhat steady near 500,000 in recent months.
The S&P/Case-Shiller 20 city composite posted a 15.9% year-over-year drop in home prices in June. This marks the largest decline on record, but was slightly better than the expected 16.2% decrease. In addition, the acceleration of the decline is moderating, indicating that a bottoming in the housing industry is taking place.
August consumer confidence rose 9.6% month-over-month to 56.9, topping the median economist estimate of 53.0. The survey shows increased plans to buy a car, a home and major appliances within the next six months.
Briefing.com does not put much weight into confidence surveys compared to hard data. Nonetheless, the reading counters conventional wisdom that the consumer is going into retrenchment mode.
Seven of the ten economic sectors are posting a gain. The financial sector (+0.7%) is leading the way, benefiting from a rebound trade following its 3% drop in the previous session and strength in Fannie Mae (FNM 8.83, +0.64) and Freddie Mac (FRE 3.96, +0.67).
Telecom (-0.3%) and industrials (-0.2%) are the worst-performing areas this session. DJ30 +13.43 NASDAQ +1.95 SP500 +3.64 NASDAQ Adv/Vol/Dec 1505/584 mln/1129 NYSE Adv/Vol/Dec 1844/311 mln/1115
11:30 am : The stock market fluctuates in positive territory and is trading modestly below session highs. The Nasdaq Composite is underperforming on a relative basis, as tech stocks post a 0.1% loss.
News has slowed considerably and volume remains light.
Crude oil is currently up 1.5% to $116.85 per barrel. It has traded as low as $112.36 and as high as $117.89.DJ30 +22.39 NASDAQ +1.51 SP500 +4.83 NASDAQ Adv/Vol/Dec 1468/497 mln/1097 NYSE Adv/Vol/Dec 1867/265 mln/1039
11:00 am : The major indices spike to session highs, and then meet some resistance. The current advance is modest.
The move higher is led by the financial sector (+1.2%), which is rebounding following the previous session's 3% decline.
Government sponsored enterprises Fannie Mae (FNM 6.10, +0.91) and Freddie Mac (FRE 4.08, +0.79) are standouts this morning. Goldman Sachs said anxiety over a bailout of FNM and FRE is unwarranted and that a bailout would be entirely manageable, according to Dow Jones.
All ten economic sectors are now in positive territory.DJ30 +31.99 NASDAQ +8.42 SP500 +6.72 NASDAQ Adv/Vol/Dec 1513/397 mln/954 NYSE Adv/Vol/Dec 1959/219 mln/910
10:30 am : The major indices trade in mixed fashion as neither buyers, nor sellers, show much conviction. Trading volume is once again very light -- the previous session marked the NYSE's lowest volume in 2008.
Commodities continue to advance, now up 1.0%. Natural gas prices rally 6.2% as traders show concern regarding hurricane threats in the Gulf of Mexico. Crude prices are up 2.3% to $117.70 per barrel.DJ30 -2.67 NASDAQ +2.01 SP500 +4.35 NASDAQ Adv/Vol/Dec 1367/304 mln/1050 NYSE Adv/Vol/Dec 1758/169 mln/1047
10:05 am : A pair of economic reports just hit the wires, one that shows a hefty increase in consumer confidence, and the other that shows an increase in new home sales.
According to the Conference Board, July consumer confidence spiked 9.6% to 56.9 from the previous month. Economists expected that confidence would increase 2.1% to 53.0.
Separately, July new home sales rose 2.4% to a seasonally adjusted annualized rate of 515,000 from a downwardly revised June reading of 503,000, according to the U.S. Department of Commerce. Economists expected a reading of 525,000. New home sales are down 35% from the prior year, but have shown some stabilization in recent months.
Stocks make some modest gains as the data hit the wires. Six of the ten economic sectors are in the red. Consumer discretionary (-0.4%) is the main laggard with a modest loss. The energy sector (+1.4%) is posting the largest gain, benefiting from the recovery in oil prices.
Crude prices continue to rally, now up 1.9% to $117.31 per barrel. The Dollar Index is up 0.5%, which is a significant retreat from its high when it was up 1.1%.DJ30 +0.32 NASDAQ +3.26 SP500 +3.86 NASDAQ Adv/Vol/Dec 1171/159 mln/1077 NYSE Adv/Vol/Dec 1407/93 mln/1279
09:35 am : Stocks get off to a slightly lower start as investors weigh a rebound in oil prices and slightly better-than-expected housing data.
Oil prices are up 1.3% to $116.20 per barrel after recovering from a 2.4% loss. There does not appear to be a specific catalyst for the rebound, although news reports indicate that traders are showing increased concern regarding a hurricane threat in the Gulf of Mexico.
On the economic front, the S&P/Case-Shiller 20 city composite showed a 15.9% year-over-year drop in home prices in June. This marks the largest decline on record, but was slightly better than the expected 16.2% decrease. In addition, the acceleration of the decline is moderating, indicating that a bottoming in the housing industry is taking place.
The new home sales report at 10:00 ET will shed more light on the state of the housing market.DJ30 -34.20 NASDAQ -3.00 SP500 -1.94
09:17 am : S&P futures vs fair value: -0.5. Nasdaq futures vs fair value: +0.3. The stock market is set for a subdued start to the trading day as investors await the consumer confidence and new home sales readings at 10:00 AM and the Aug. 5 FOMC meeting minutes at 2:00 PM.
09:05 am : S&P futures vs fair value: -0.4. Nasdaq futures vs fair value: +1.0. Futures recover some ground and then go back on the retreat as crude prices rally. Oil prices rebound to a 1.0% gain at $115.50 per barrel after trading down as much as 2.4% at $112.36 per barrel. There is no immediate news that would account for the recovery in oil, and the dollar continues to post a healthy gain of 0.8%. Meanwhile, the S&P/Case-Shiller 20 city composite showed a 15.9% year-over-year drop in home prices in June (consensus -16.2%). The S&P/Case-Shiller National Home Price Index slipped 15.4% in the second quarter compared to the previous year (consensus -16.2%).
08:32 am : S&P futures vs fair value: -1.6. Nasdaq futures vs fair value: +0.2. Stock market futures slipped to session lows in the past half hour as crude prices (-0.6%, $114.30) pare some losses. A modestly lower open is expected.
08:00 am : S&P futures vs fair value: -0.7. Nasdaq futures vs fair value: +1.8. Futures suggest a flat start to the trading day as a drop in oil prices is unable to lift the market. Anadarko Petroleum (APC) authorized a share repurchase program up to $5 billion, which at its current price represents roughly 18% of outstanding common shares. On a related note, Coach (COH) established a share repurchase program of up to $1 billion. In earnings news, American Eagle (AEO) topped estimates by a penny for its second quarter, but issued downside guidance for the third quarter. In commodity trading, crude prices are down 1.3% to $113.60 per barrel as the dollar rallies 1.0%.
06:19 am : S&P futures vs fair value: +1.2. Nasdaq futures vs fair value: +5.8.
06:18 am : FTSE...5396.00...-109.60...-2.0%. DAX...6283.01...-13.94...-0.2%.
06:18 am : Nikkei...12778.71...-99.95...-0.8%. Hang Seng...21056.66...-48.13...-0.2%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
http://biz.yahoo.com/mu/update.html
4:20 pm : The major indices ended Tuesday mixed in a choppy session that marked the lowest volume of the year. Corporate news was light, but there was plenty of economic data and movement in commodities.
The S&P 500 posted a 0.4% gain with seven of the ten economic sectors in the green as traders digested a spike in crude prices and several better-than-expected economic releases. Only 856 million shares exchanged hands on the NYSE, marking the lowest amount of volume in 2008.
Crude prices traded in a volatile manner, falling 2.4% in early trade, and then spiking to a gain of 2.4% on threats of a hurricane disrupting production in the Gulf of Mexico. Crude prices eventually settled with a gain of 1.0% at $116.26 per barrel, while natural gas prices rallied 5.7%.
The energy sector (+1.8%) provided leadership, benefiting from the gains in crude and natural gas prices. Anadarko Petroleum (APC 61.54, +3.70) gave the sector an added boost after the company authorized a share repurchase program of up to $5 billion.
Financials stocks fell to a 1% loss in afternoon trading on news that the FDIC increased the number of problem institutions to 117 in the second quarter from 90, with assets at problem institutions increasing to $78 billion from $26 billion. This headline is not as bad as it seems, considering $32 billion of the asset increase was due to IndyMac (which already failed) and 98% of institutions remain well capitalized. As a result, financials recovered from the knee-jerk reaction to the headlines to finish the day with a 0.7% gain.
The tech sector was the worst-performing area with a 0.4% loss. The tech-heavy Nasdaq composite posted a loss of 0.2% as a result.
On the economic front, July new home sales rose 2.4% to a seasonally adjusted annualized rate of 515,000 from a downwardly revised June reading of 503,000, according to the U.S. Department of Commerce. Economists expected 525,000 sales. New home sales are down 35% from the prior year, but have held somewhat steady near 500,000 in recent months.
The S&P/Case-Shiller 20 city composite posted a 15.9% year-over-year drop in home prices in June. This marks the largest decline on record, but was slightly better than the expected 16.2% decrease. In addition, the acceleration of the decline is moderating, indicating that a bottoming in the housing industry is taking place. A separate report from OFHEO showed flat home prices in June compared to May, which topped expectations. Homebuilding stocks fell 2.9%.
Consumer confidence rose 9.6% month-over-month in August to 56.9, topping the median economist estimate of 53.0. The survey shows increased plans to buy a car, a home and major appliances within the next six months.
Briefing.com does not put much weight into confidence surveys compared to hard data. Nonetheless, the reading counters conventional wisdom that the consumer is going into retrenchment mode.
Separately, the FOMC released the minutes from its Aug. 5 meeting. The minutes did not tell the market anything it did not already know, and as a result had a limited trading impact. DJ30 +26.62 NASDAQ -3.62 NQ100 -0.2% R2K +0.4% SP400 +0.5% SP500 +4.67 NASDAQ Adv/Vol/Dec 1520/1.46 bln/1296 NYSE Adv/Vol/Dec 1961/856 mln/1145
3:30 pm : The S&P 500 is back at the unchanged mark as financials (-0.2%) recover most of their losses. Despite the release of the FOMC minutes and the FDIC quarterly report, volume remains very light.
According to the FDIC, the number of problem institution assets increased to $78 billion from $26 billion. This headline is not as bad as it seems, considering $32 billion of the asset increase was due to IndyMac (which has already failed) and 98% of institutions remain well capitalized.DJ30 -2.12 NASDAQ +0.53 SP500 -10.97 NASDAQ Adv/Vol/Dec 1288/1.20 bln/1512 NYSE Adv/Vol/Dec 1630/616 mln/1448
3:00 pm : The stock market falls to a fresh session low and holds near that level. Losses are being kept in check thanks to a strong 1.5% gain in energy stocks.
The energy sector is benefiting from a 1.0% rise in crude prices and a 5.3% gain in natural gas. Anadarko Petroleum (APC 61.41, +3.57) is giving the sector an added boost after the company authorized a share repurchase program of up to $5 billion.DJ30 -28.99 NASDAQ -18.80 SP500 -2.63 NASDAQ Adv/Vol/Dec 1150/1.09 bln/1627 NYSE Adv/Vol/Dec 1491/561 mln/1583
2:30 pm : CNBC reports that 117 financial institutions are on the FDIC's trouble list, up from 90 in the first quarter. However, the number of troubled institutions is still well below the levels seen during the savings and loan crisis of the 1980s. Still, financials (-0.9%) fall to session lows on the news, although losses are relatively well contained.
Meanwhile, three mortgage insurance groups had their counterparty credit ratings downgraded at Standard & Poor's -- Old Republic International (ORI 10.13), PMI Group (PMI 2.98, -0.04) and Radian (RDN 3.91, +0.43).
Seven sectors are now posting a loss, with tech stocks (-0.9%) also facing significant selling pressure. The stock market posts a slight loss.DJ30 -36.07 NASDAQ -18.02 SP500 -2.98 NASDAQ Adv/Vol/Dec 1147/998 mln/1604 NYSE Adv/Vol/Dec 1496/515 mln/1564
2:05 pm : The FOMC minutes for the Aug. 5 meeting were just released. At the Aug. 5 meeting, the FOMC kept the fed funds rate unchanged at 2.00%, acknowledging both downside risk to growth and increased inflation risks. Dallas Fed President Fisher dissented, preferring a rate increase, as he did at the previous meeting.
Fed officials are concerned that inflation won't ease until 2009, but most participants anticipate moderation in the coming quarters. In general, Fed officials expect the next policy move will be to raise rates.
The major indices had already slipped a bit, and then have a mostly muted response immediately after the minutes release.DJ30 -24.84 NASDAQ -11.98 SP500 -0.90 NASDAQ Adv/Vol/Dec 1698/874 mln/1338 NYSE Adv/Vol/Dec 1698/454 mln/1338
1:30 pm : The major indices trade in mixed fashion after the financial sector (-0.2%) pulls back into negative territory.
Financials were up as much as 1.5%, but gave up gains as the investment banks and brokerages industry group (-0.7%) gave in to selling pressure.
Although four of the ten economic sectors are in negative territory, none are posting a significant loss. The tech sector is posting the largest decline of 0.4%.DJ30 -1.55 NASDAQ -4.50 SP500 +1.71 NASDAQ Adv/Vol/Dec 1424/794 mln/1264 NYSE Adv/Vol/Dec 1739/415 mln/1264
1:05 pm : The S&P 500 continues to outperform its counterparts. The S&P 500 is benefitting from energy behemoth Exxon Mobil (XOM 79.44, +0.73) and financial giant JPMorgan Chase (JPM 36.66, +0.53); the two are also lending support to the Dow, though.
Roughly 60% of the S&P 500 components are trading with gains. Roughly half the Dow components are trading higher. Approximately half the Nasdaq components are trading in the green as well, but its weakness is reflected by the influence of large-cap tech stocks.DJ30 +8.87 NASDAQ -2.27 SP500 +2.30 NASDAQ Adv/Vol/Dec 1459/736 mln/1226 NYSE Adv/Vol/Dec 1761/386 mln/1239
12:30 pm : Stocks attempted to recover to session highs, but buying interest fades as crude prices (+0.8%, $116.11) go back on the rise.
Market breadth leans positive, with advancers outpacing decliners by 5-to-3 on the NYSE and by 11-to-8 on the Nasdaq. Volume is light with only 344 million shares exchanging hands on the NYSE -- only slightly more than yesterday's volume at this time, which marked the lowest of the year.DJ30 -1.06 NASDAQ -0.95 SP500 +2.52 NASDAQ Adv/Vol/Dec 1528/645 mln/1115 NYSE Adv/Vol/Dec 1857/344 mln/1127
12:00 pm : The stock market is posting a modest gain at midday, as some better-than-expected economic data offset volatile oil prices. Volume is once again very light on what has been a relatively slow news day.
Crude prices fell as much as 2.4% in early trade, but then rebounded to a gain of 2.4% on concerns regarding a hurricane threat in the Gulf of Mexico. Prices have since eased a bit, with a gain of 0.6% at $115.82 per barrel. Natural gas prices have rallied 5.2%.
This session's economic data are helping to limit the negative impact that higher oil prices are having on market sentiment. July new home sales rose 2.4% to a seasonally adjusted annualized rate of 515,000 from a downwardly revised June reading of 503,000, according to the U.S. Department of Commerce. Economists expected 525,000 sales. New home sales are down 35% from the prior year, but have held somewhat steady near 500,000 in recent months.
The S&P/Case-Shiller 20 city composite posted a 15.9% year-over-year drop in home prices in June. This marks the largest decline on record, but was slightly better than the expected 16.2% decrease. In addition, the acceleration of the decline is moderating, indicating that a bottoming in the housing industry is taking place.
August consumer confidence rose 9.6% month-over-month to 56.9, topping the median economist estimate of 53.0. The survey shows increased plans to buy a car, a home and major appliances within the next six months.
Briefing.com does not put much weight into confidence surveys compared to hard data. Nonetheless, the reading counters conventional wisdom that the consumer is going into retrenchment mode.
Seven of the ten economic sectors are posting a gain. The financial sector (+0.7%) is leading the way, benefiting from a rebound trade following its 3% drop in the previous session and strength in Fannie Mae (FNM 8.83, +0.64) and Freddie Mac (FRE 3.96, +0.67).
Telecom (-0.3%) and industrials (-0.2%) are the worst-performing areas this session. DJ30 +13.43 NASDAQ +1.95 SP500 +3.64 NASDAQ Adv/Vol/Dec 1505/584 mln/1129 NYSE Adv/Vol/Dec 1844/311 mln/1115
11:30 am : The stock market fluctuates in positive territory and is trading modestly below session highs. The Nasdaq Composite is underperforming on a relative basis, as tech stocks post a 0.1% loss.
News has slowed considerably and volume remains light.
Crude oil is currently up 1.5% to $116.85 per barrel. It has traded as low as $112.36 and as high as $117.89.DJ30 +22.39 NASDAQ +1.51 SP500 +4.83 NASDAQ Adv/Vol/Dec 1468/497 mln/1097 NYSE Adv/Vol/Dec 1867/265 mln/1039
11:00 am : The major indices spike to session highs, and then meet some resistance. The current advance is modest.
The move higher is led by the financial sector (+1.2%), which is rebounding following the previous session's 3% decline.
Government sponsored enterprises Fannie Mae (FNM 6.10, +0.91) and Freddie Mac (FRE 4.08, +0.79) are standouts this morning. Goldman Sachs said anxiety over a bailout of FNM and FRE is unwarranted and that a bailout would be entirely manageable, according to Dow Jones.
All ten economic sectors are now in positive territory.DJ30 +31.99 NASDAQ +8.42 SP500 +6.72 NASDAQ Adv/Vol/Dec 1513/397 mln/954 NYSE Adv/Vol/Dec 1959/219 mln/910
10:30 am : The major indices trade in mixed fashion as neither buyers, nor sellers, show much conviction. Trading volume is once again very light -- the previous session marked the NYSE's lowest volume in 2008.
Commodities continue to advance, now up 1.0%. Natural gas prices rally 6.2% as traders show concern regarding hurricane threats in the Gulf of Mexico. Crude prices are up 2.3% to $117.70 per barrel.DJ30 -2.67 NASDAQ +2.01 SP500 +4.35 NASDAQ Adv/Vol/Dec 1367/304 mln/1050 NYSE Adv/Vol/Dec 1758/169 mln/1047
10:05 am : A pair of economic reports just hit the wires, one that shows a hefty increase in consumer confidence, and the other that shows an increase in new home sales.
According to the Conference Board, July consumer confidence spiked 9.6% to 56.9 from the previous month. Economists expected that confidence would increase 2.1% to 53.0.
Separately, July new home sales rose 2.4% to a seasonally adjusted annualized rate of 515,000 from a downwardly revised June reading of 503,000, according to the U.S. Department of Commerce. Economists expected a reading of 525,000. New home sales are down 35% from the prior year, but have shown some stabilization in recent months.
Stocks make some modest gains as the data hit the wires. Six of the ten economic sectors are in the red. Consumer discretionary (-0.4%) is the main laggard with a modest loss. The energy sector (+1.4%) is posting the largest gain, benefiting from the recovery in oil prices.
Crude prices continue to rally, now up 1.9% to $117.31 per barrel. The Dollar Index is up 0.5%, which is a significant retreat from its high when it was up 1.1%.DJ30 +0.32 NASDAQ +3.26 SP500 +3.86 NASDAQ Adv/Vol/Dec 1171/159 mln/1077 NYSE Adv/Vol/Dec 1407/93 mln/1279
09:35 am : Stocks get off to a slightly lower start as investors weigh a rebound in oil prices and slightly better-than-expected housing data.
Oil prices are up 1.3% to $116.20 per barrel after recovering from a 2.4% loss. There does not appear to be a specific catalyst for the rebound, although news reports indicate that traders are showing increased concern regarding a hurricane threat in the Gulf of Mexico.
On the economic front, the S&P/Case-Shiller 20 city composite showed a 15.9% year-over-year drop in home prices in June. This marks the largest decline on record, but was slightly better than the expected 16.2% decrease. In addition, the acceleration of the decline is moderating, indicating that a bottoming in the housing industry is taking place.
The new home sales report at 10:00 ET will shed more light on the state of the housing market.DJ30 -34.20 NASDAQ -3.00 SP500 -1.94
09:17 am : S&P futures vs fair value: -0.5. Nasdaq futures vs fair value: +0.3. The stock market is set for a subdued start to the trading day as investors await the consumer confidence and new home sales readings at 10:00 AM and the Aug. 5 FOMC meeting minutes at 2:00 PM.
09:05 am : S&P futures vs fair value: -0.4. Nasdaq futures vs fair value: +1.0. Futures recover some ground and then go back on the retreat as crude prices rally. Oil prices rebound to a 1.0% gain at $115.50 per barrel after trading down as much as 2.4% at $112.36 per barrel. There is no immediate news that would account for the recovery in oil, and the dollar continues to post a healthy gain of 0.8%. Meanwhile, the S&P/Case-Shiller 20 city composite showed a 15.9% year-over-year drop in home prices in June (consensus -16.2%). The S&P/Case-Shiller National Home Price Index slipped 15.4% in the second quarter compared to the previous year (consensus -16.2%).
08:32 am : S&P futures vs fair value: -1.6. Nasdaq futures vs fair value: +0.2. Stock market futures slipped to session lows in the past half hour as crude prices (-0.6%, $114.30) pare some losses. A modestly lower open is expected.
08:00 am : S&P futures vs fair value: -0.7. Nasdaq futures vs fair value: +1.8. Futures suggest a flat start to the trading day as a drop in oil prices is unable to lift the market. Anadarko Petroleum (APC) authorized a share repurchase program up to $5 billion, which at its current price represents roughly 18% of outstanding common shares. On a related note, Coach (COH) established a share repurchase program of up to $1 billion. In earnings news, American Eagle (AEO) topped estimates by a penny for its second quarter, but issued downside guidance for the third quarter. In commodity trading, crude prices are down 1.3% to $113.60 per barrel as the dollar rallies 1.0%.
06:19 am : S&P futures vs fair value: +1.2. Nasdaq futures vs fair value: +5.8.
06:18 am : FTSE...5396.00...-109.60...-2.0%. DAX...6283.01...-13.94...-0.2%.
06:18 am : Nikkei...12778.71...-99.95...-0.8%. Hang Seng...21056.66...-48.13...-0.2%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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