AI
Friday, September 12, 2008 8:28:46 PM
Market Update 080912
http://biz.yahoo.com/mu/update.html
4:05 pm : The stock market struggled to make headway Friday. Buyers found little motivation to enter the market as uncertainty continues to shroud the financial sector. Although solid gains were made among beaten-down commodities stocks their influence was too small to lift the broader market in material fashion.
Traders continue to await clarity related to the fate of a couple of financial players. Lehman Brothers (LEH 3.65, -0.57) may receive a helping hand from another bank, or even by a consortium of firms, looking to take over the investment bank. Lehman has faced tough times before, but many question whether the firm will survive the current turmoil on its own.
As for Washington Mutual (WM 2.77, -0.06), a midday report that JPMorgan Chase (JPM 41.17, -0.48) is in advanced discussions to acquire the downtrodden savings and loan institution led to a recovery effort. However, JPMorgan stymied the rally when it came out to say it is not in negotiations, according to CNBC.
Making its way to a new 52-week low, AIG (AIG 12.14, -5.41) was one of the worst performers in the financial sector. The company has been subjected to heavy selling pressure as concerns mount over its fate.
Financials finished the session as the worst performing sector, which is where it began the session. Financials were down 2.7% early, then rallied to a 0.6% gain before volatile action led the sector to close 1.0% lower.
While financials fared the worst, materials and energy saw the largest gains as traders picked up depressed names. Stocks dealing in commodities have seen their shares beaten down in recent sessions amid fears a global slowdown will hamper demand. In fact, earlier this week the materials and energy sectors were at their lowest level in months. They ended the day with gains of 3.2% and 2.8%, respectively. Due to the losses seen earlier in the week, materials advanced 2.1% week-to-date, while energy concluded the week 0.7% higher.
Expectations of softer demand have also been reflected in oil prices. Though hurricanes threaten production and refining facilities in the Gulf of Mexico, crude briefly dipped below the $100 mark this session. It closed just short of $101 per barrel, down roughly 0.1% this session and 31% from its July 11 high.
Lackluster economic data did little to restore investor confidence. Prior to the session's opening bell it was reported August retail sales decreased 0.3%, despite expectations for a 0.2% increase. Sales during the prior month were revised lower to reflect a 0.5% decrease. Consumer spending remains on a sluggish growth path as consumers continue to face stiff headwinds.
A separate report indicated encouraging inflationary data. The Producer Price Index indicated prices declined 0.9% in August, which marked a sharper downturn than economists expected. Core PPI, which excludes food and energy, increased 0.2%, which was in-line with expectations. DJ30 -11.72 NASDAQ +3.05 NQ100 -0.4% R2K +0.2% SP400 +1.1% SP500 +2.68 NASDAQ Adv/Vol/Dec 1347/1.97 bln/1455 NYSE Adv/Vol/Dec 1759/1.28 bln/1390
3:30 pm : The stock market is showing little direction heading into the final leg of trading. For the week, the Dow is up 1.2%, while the Nasdaq is unchanged and the S&P 500 is up 0.6%.
The week's strongest gainer has been the consumer staples sector. Though it is down 0.4% this session, it has advanced 2.6% week-to-date.
Consumer staples are also the only sector to trade with a year-to-date gain, up 0.1%. They have benefited from investor wariness amid recent market turmoil.DJ30 -26.05 NASDAQ -0.23 SP500 +0.91 NASDAQ Adv/Vol/Dec 1259/1.69 bln/1517 NYSE Adv/Vol/Dec 1677/996 mln/1459
3:05 pm : The S&P 500 recovers to a modest gain as energy (+2.8%) and material (+3.1%) stocks provide leadership. CNBC reports that AIG (AIG 13.36, -4.19) may announce a turnaround plan before Sept. 25. The insurance giant is trading with a massive 24% loss.
Despite all the volatility this week and concerns regarding the fate of Lehman Brothers (LEH 3.49, -0.72), the S&P 500 is up 0.9% this week. The financial sector is down 2.0%, but is being offset by a 2.5% gain in consumer discretionary and a 2.7% gain in consumer staples.
Separately, commodities are up 1.6% this session. Corn futures for December delivery hit its daily trading limit, rising $0.30 cents, or 6.6%, with the buying interest prompted by a bullish USDA report. The March, May and July corn futures contracts also hit their daily limit.DJ30 -14.16 NASDAQ +4.43 SP500 +2.48 NASDAQ Adv/Vol/Dec 1299/1.47 bln/1495 NYSE Adv/Vol/Dec 1626/867 mln/1409
2:30 pm : The major indices continue to look for direction. After spending the morning in the red, stocks made their way into positive ground. The ascent was shortlived, however, as stocks moved lower and are now chopping along in negative ground.
The uncertainty surrounding the session's action has prompted equity investors to seek out the defensive-oriented utilities sector (+1.1%). Utilities have made healthy advances during the past two sessions. Their upward turn, helps limit the losses they have seen in recent weeks. The sector is down 3.8% week-to-date.DJ30 -78.24 NASDAQ -6.58 SP500 -3.87 NASDAQ Adv/Vol/Dec 1187/1.38 bln/1560 NYSE Adv/Vol/Dec 1532/832 mln/1566
2:05 pm : Stocks moved back to the neutral line, but the advance proved unsustainable. The lift out of the recent lull was inspired by the financial sector (-1.1%) as a report from American Banker suggested Washington Mutual (WM 2.90, +0.07) may be the target of an acquisition by JPMorgan Chase (JPM 41.25, -0.40). However, JPMorgan indicated it is not in current negotiations, according to CNBC.
Separately, crude prices have reversed early gains to trade with a loss. Futures are momentarily dipped below the $100 mark. That marks the first time crude has broken through the $100 threshold since the first week of April.DJ30 -81.74 NASDAQ -11.51 SP500 -4.85 NASDAQ Adv/Vol/Dec 1122/1.28 bln/1605 NYSE Adv/Vol/Dec 1487/777 mln/1596
1:30 pm : Losses are steepest in the Dow. Though nearly half of its components are trading with gains, its laggards are having the most pronounced effect.
Dow component American International Group (AIG 13.10, -4.45) is trading substantially lower. AIG has been subjected to market fears. The company has been hit with massive losses and asset mark downs in recent quarters.
Also a laggard is General Electric (GE 26.45, -1.71). The stock is less than a dollar off its 52-week low.DJ30 -69.04 NASDAQ -6.66 SP500 -3.30 NASDAQ Adv/Vol/Dec 1169/1.16 bln/1509 NYSE Adv/Vol/Dec 1539/692 mln/1547
1:00 pm : The major indices have surrendered to selling pressure. After chopping along the neutral line all three are now showing sizable losses.
The downturn follows broadbased declines. However, losses in the financial sector are the most significant. The financial sector was recently down 1.2%, but extended its losses to 2.1% with the latest move.
There is little interest in the financial sector as just three industry groups trade higher. Retail REITs (+0.1%) are garnerning modest attention, as are regional banks (+0.1%). Thrifts and mortgages (+0.3%) are the best performers.DJ30 -98.19 NASDAQ -13.42 SP500 -7.11 NASDAQ Adv/Vol/Dec 1296/998 mln/1385 NYSE Adv/Vol/Dec 1581/590 mln/1393
12:30 pm : After climbing to a session high, which equated to a 0.5% advance for the S&P 500, stocks have faded. The S&P 500 has since been chopping along the unchanged mark.
Gains are the most impressive among energy and materials. The two sectors are up 2.2% and 1.9%, respectively. The two sectors have been pressured in recent weeks as fears of a global economic slowdown take hold. Both sectors fell to their lowest point of the year earlier this week before buyers emerged.DJ30 -35.33 NASDAQ -2.07 SP500 -1.21 NASDAQ Adv/Vol/Dec 1195/876 mln/1441 NYSE Adv/Vol/Dec 1535/528 mln/1486
12:00 pm : Similar to the prior session, action during the first part of Friday trade has been guided by uncertainty. Investors continue looking for reassurance that the financial sector is patching its wounds, but the confirmation just isn't there.
Early selling efforts pushed the financial sector as much as 2.7% lower as traders tried to assess reports that suggest battered investment bank Lehman Brothers (LEH 3.81, -0.41) will be taken over by another bank, or even by a consortium of firms. Whoever the suitor proves to be, the Treasury has stated that government funds will be unavailable.
Meanwhile, Reuters reported the Treasury will guarantee the debt and mortgage backed securities of Fannie Mae (FNM 0.75, -0.03) and Freddie Mac (FRE 0.54, -0.06) until at least 2010.
Also garnering attention is Washington Mutual (WM 2.95, +0.12), which provided a third quarter update that indicated it is more than well-capitalized. It expects provisions to be around $4.5 billion for the quarter and has a liquidity position of $50 billion.
Credit rating agency Fitch downgraded WaMu and gave the firm a negative outlook. Its stock was downgraded at a handful of firms, but upgraded by others. The bank has also been the subject of takeover chatter.
The pressure on financials has eased a bit. The sector is now down 1.1%.
Uninspiring economic data also failed to motivate buying action in the early going, but participants have moved past the data. August retail sales reflected a decrease of 0.3%, despite expectations for a 0.2% increase. Sales during the prior month were revised lower to reflect a 0.5% decrease. Consumer spending remains on a sluggish growth path as consumers face such headwinds as rising unemployment levels and a cloudy economic outlook.
However, good inflation news can be taken from the latest PPI report. Producer prices declined 0.9% in August (consensus -0.5%) after increasing 1.2% in July and 1.8% in June. Core PPI, which excludes food and energy, rose 0.2%, in-line with expectations. DJ30 -28.90 NASDAQ -1.83 SP500 -0.62 NASDAQ Adv/Vol/Dec 1208/849 mln/1409 NYSE Adv/Vol/Dec 1555/511 mln/1484
11:30 am : The major indices have made their way into positive ground. Broad-based gains are leading the advance as no clear leader has emerged.
In contrast to the prior session, small-caps and mid-caps are outperforming the Dow, Nasdaq, and S&P 500. The Russell 2000 is up 0.6%, but the S&P 400 has climbed an impressive 1.3%. One of the better performing mid-cap companies is Arch Coal (ACI 41.45, +3.51). Arch has advanced during recent sessions after falling to its lowest point since January that followed commodity sell-offs.DJ30 +6.60 NASDAQ +5.05 SP500 +3.53 NASDAQ Adv/Vol/Dec 1266/727 mln/1301 NYSE Adv/Vol/Dec 1676/435 mln/1323
11:00 am : Stocks continue to trade in choppy fashion. The major indices have spent the entire session in the red.
Auto manufacturers are making a strong showing. Shares of General Motors (GM 13.78, +1.03) and Ford (F 4.88, +0.20) are both advancing. Reports indicate that GM is looking for low-cost loans from Congress that would help operations at the struggling automaker. Automakers continue efforts to stimulate business by offering incentives to consumers.
The rest of the consumer discretionary sector is performing less impressively. The sector is down 0.9%.DJ30 -80.76 NASDAQ -17.50 SP500 -5.32 NASDAQ Adv/Vol/Dec 928/537 mln/1570 NYSE Adv/Vol/Dec 1295/342 mln/1668
10:30 am : Stocks are improved from earlier levels, but still trade with losses.
According to a Reuters report, Treasury Secretary Paulson is adamant there will be no government money involved in any deal that resolves the crisis at Lehman Brothers (LEH 3.81, -0.41). The comments are intended to curtail speculation of government involvement, given the Fed's role in the JPMorgan Chase (JPM 41.26, -0.39) and Bear Stearns deal. Meanwhile, an article from Financial Times indicates that Bank of America (BAC 33.02, -0.04), investment advisory firm J.C. Flowers, and sovereign wealth fund China Investment Co. are considering a joint bid for Lehman. DJ30 -81.33 NASDAQ -17.58 SP500 -6.00 NASDAQ Adv/Vol/Dec 871/409 mln/1556 NYSE Adv/Vol/Dec 1182/264 mln/1712
10:00 am : Energy is trading with the largest gain among the ten economic sectors. It is up 1.1%.
All of energy's industry components are trading higher. Refiners continue to lead the charge, currently up 3.7%. Drillers (+1.7%) and exploration and production firms (+2.1%) are helping the effort.
Helping the performance of the drillers and E&P firms is a 0.9% rise in crude oil prices. The increase is still considerably less than the 4.3% slide week-to-date.
Lower fuel prices bode well for consumers by increasing their spending power.
The University of Michigan Preliminary Consumer Confidence Report for September came in at 73.1, reflecting substantial improvement from the 63.0 registered in the prior month. Economists had anticipated a reading of just 64.0 for September.DJ30 -110.56 NASDAQ -22.26 SP500 -9.14 NASDAQ Adv/Vol/Dec 643/211 mln/1645 NYSE Adv/Vol/Dec 923/147 mln/1852
09:45 am : Stocks have opened the session markedly lower. Losses are steepest among financials (-1.8%), though their position has improved.
The downturn in financials reflects continued investor wariness. Trading has been marked by uncertainty recently as participants ruminate over the future of Lehman Brothers (LEH 3.75, -0.47). According to reports, the struggling investment bank may be acquired, helping protect against the threat of failure. Shares of LEH have dropped more than 90% this year.
As a group, investment banks and brokerages are down 2.7% this session.DJ30 -121.00 NASDAQ -19.26 SP500 -10.16
09:15 am : S&P futures vs fair value: -9.30. Nasdaq futures vs fair value: -16.50. The major indices continue to trail fair value, indicating a downward start to the week's final trading session.
09:02 am : S&P futures vs fair value: -9.30. Nasdaq futures vs fair value: -16.50. Stock futures remain weak ahead of the opening. Telecom giants AT&T (T) and Verizon (VZ) have had their estimates cut at Credit Suisse. The lowered estimates reflect macro concerns and margin pressure. Meanwhile, analysts have a mixed view on Washington Mutual (WM); the stock has been downgraded at some firms and upgraded by others.
08:30 am : S&P futures vs fair value: -8.10. Nasdaq futures vs fair value: -9.50. The major indices remain on track for a downward open. The Producer Price Index (PPI) for August reflected a 0.9% decline from the prior month. Economists were expecting a 0.5% slide after the prior month gained 1.2%. Excluding food and energy costs, the PPI was up 0.2% month-over-month. The consensus also called for a 0.2% gain after the 0.7% advance registered the prior month. The advance reading for August retail sales decreased 0.3%, which is below the 0.2% increase that was widely anticipated. Sales during the prior month were revised lower to reflect a 0.5% decrease. Excluding autos, August retail sales were expected to slide 0.2%, but decreased 0.7%. They were up 0.3% the month before. Rising unemployment claims and a muddled outlook continue to represent stiff headwinds for consumers.
08:00 am : S&P futures vs fair value: -2.40. Nasdaq futures vs fair value: -3.30. Stock futures lag fair value ahead of Friday's opening bell. After yesterday's close The Washington Post reported the Treasury and the Fed are working on the sale of Lehman Brothers (LEH) through a consortium of firms. The report followed word that from The Wall Street Journal that Bank of America (BAC) is in talks with Lehman. Meanwhile, Reuters reported the Treasury will guarantee the debt and mortgage backed securities of Fannie Mae (FNM) and Freddie Mac (FRE) until at least 2010. Washington Mutual (WM) announced its capital levels surpass the well-capitalized level for the third quarter and expects provisions to be around $4.5 billion for the quarter. It also stated it has a strong liquidity position of $50 billion. Credit rating agency Fitch downgraded WaMu to BBB- and gave the firm a negative outlook
06:45 am : S&P futures vs fair value: -1.70. Nasdaq futures vs fair value: -7.00.
06:45 am : Nikkei...12214.76...-112.30...+0.90%. Hang Seng...19352.90...-35.80...-0.20%.
06:45 am : FTSE...5373.00...+54.60...+1.00%. DAX...6205.07...+26.20...+0.40%.
http://biz.yahoo.com/mu/update.html
4:05 pm : The stock market struggled to make headway Friday. Buyers found little motivation to enter the market as uncertainty continues to shroud the financial sector. Although solid gains were made among beaten-down commodities stocks their influence was too small to lift the broader market in material fashion.
Traders continue to await clarity related to the fate of a couple of financial players. Lehman Brothers (LEH 3.65, -0.57) may receive a helping hand from another bank, or even by a consortium of firms, looking to take over the investment bank. Lehman has faced tough times before, but many question whether the firm will survive the current turmoil on its own.
As for Washington Mutual (WM 2.77, -0.06), a midday report that JPMorgan Chase (JPM 41.17, -0.48) is in advanced discussions to acquire the downtrodden savings and loan institution led to a recovery effort. However, JPMorgan stymied the rally when it came out to say it is not in negotiations, according to CNBC.
Making its way to a new 52-week low, AIG (AIG 12.14, -5.41) was one of the worst performers in the financial sector. The company has been subjected to heavy selling pressure as concerns mount over its fate.
Financials finished the session as the worst performing sector, which is where it began the session. Financials were down 2.7% early, then rallied to a 0.6% gain before volatile action led the sector to close 1.0% lower.
While financials fared the worst, materials and energy saw the largest gains as traders picked up depressed names. Stocks dealing in commodities have seen their shares beaten down in recent sessions amid fears a global slowdown will hamper demand. In fact, earlier this week the materials and energy sectors were at their lowest level in months. They ended the day with gains of 3.2% and 2.8%, respectively. Due to the losses seen earlier in the week, materials advanced 2.1% week-to-date, while energy concluded the week 0.7% higher.
Expectations of softer demand have also been reflected in oil prices. Though hurricanes threaten production and refining facilities in the Gulf of Mexico, crude briefly dipped below the $100 mark this session. It closed just short of $101 per barrel, down roughly 0.1% this session and 31% from its July 11 high.
Lackluster economic data did little to restore investor confidence. Prior to the session's opening bell it was reported August retail sales decreased 0.3%, despite expectations for a 0.2% increase. Sales during the prior month were revised lower to reflect a 0.5% decrease. Consumer spending remains on a sluggish growth path as consumers continue to face stiff headwinds.
A separate report indicated encouraging inflationary data. The Producer Price Index indicated prices declined 0.9% in August, which marked a sharper downturn than economists expected. Core PPI, which excludes food and energy, increased 0.2%, which was in-line with expectations. DJ30 -11.72 NASDAQ +3.05 NQ100 -0.4% R2K +0.2% SP400 +1.1% SP500 +2.68 NASDAQ Adv/Vol/Dec 1347/1.97 bln/1455 NYSE Adv/Vol/Dec 1759/1.28 bln/1390
3:30 pm : The stock market is showing little direction heading into the final leg of trading. For the week, the Dow is up 1.2%, while the Nasdaq is unchanged and the S&P 500 is up 0.6%.
The week's strongest gainer has been the consumer staples sector. Though it is down 0.4% this session, it has advanced 2.6% week-to-date.
Consumer staples are also the only sector to trade with a year-to-date gain, up 0.1%. They have benefited from investor wariness amid recent market turmoil.DJ30 -26.05 NASDAQ -0.23 SP500 +0.91 NASDAQ Adv/Vol/Dec 1259/1.69 bln/1517 NYSE Adv/Vol/Dec 1677/996 mln/1459
3:05 pm : The S&P 500 recovers to a modest gain as energy (+2.8%) and material (+3.1%) stocks provide leadership. CNBC reports that AIG (AIG 13.36, -4.19) may announce a turnaround plan before Sept. 25. The insurance giant is trading with a massive 24% loss.
Despite all the volatility this week and concerns regarding the fate of Lehman Brothers (LEH 3.49, -0.72), the S&P 500 is up 0.9% this week. The financial sector is down 2.0%, but is being offset by a 2.5% gain in consumer discretionary and a 2.7% gain in consumer staples.
Separately, commodities are up 1.6% this session. Corn futures for December delivery hit its daily trading limit, rising $0.30 cents, or 6.6%, with the buying interest prompted by a bullish USDA report. The March, May and July corn futures contracts also hit their daily limit.DJ30 -14.16 NASDAQ +4.43 SP500 +2.48 NASDAQ Adv/Vol/Dec 1299/1.47 bln/1495 NYSE Adv/Vol/Dec 1626/867 mln/1409
2:30 pm : The major indices continue to look for direction. After spending the morning in the red, stocks made their way into positive ground. The ascent was shortlived, however, as stocks moved lower and are now chopping along in negative ground.
The uncertainty surrounding the session's action has prompted equity investors to seek out the defensive-oriented utilities sector (+1.1%). Utilities have made healthy advances during the past two sessions. Their upward turn, helps limit the losses they have seen in recent weeks. The sector is down 3.8% week-to-date.DJ30 -78.24 NASDAQ -6.58 SP500 -3.87 NASDAQ Adv/Vol/Dec 1187/1.38 bln/1560 NYSE Adv/Vol/Dec 1532/832 mln/1566
2:05 pm : Stocks moved back to the neutral line, but the advance proved unsustainable. The lift out of the recent lull was inspired by the financial sector (-1.1%) as a report from American Banker suggested Washington Mutual (WM 2.90, +0.07) may be the target of an acquisition by JPMorgan Chase (JPM 41.25, -0.40). However, JPMorgan indicated it is not in current negotiations, according to CNBC.
Separately, crude prices have reversed early gains to trade with a loss. Futures are momentarily dipped below the $100 mark. That marks the first time crude has broken through the $100 threshold since the first week of April.DJ30 -81.74 NASDAQ -11.51 SP500 -4.85 NASDAQ Adv/Vol/Dec 1122/1.28 bln/1605 NYSE Adv/Vol/Dec 1487/777 mln/1596
1:30 pm : Losses are steepest in the Dow. Though nearly half of its components are trading with gains, its laggards are having the most pronounced effect.
Dow component American International Group (AIG 13.10, -4.45) is trading substantially lower. AIG has been subjected to market fears. The company has been hit with massive losses and asset mark downs in recent quarters.
Also a laggard is General Electric (GE 26.45, -1.71). The stock is less than a dollar off its 52-week low.DJ30 -69.04 NASDAQ -6.66 SP500 -3.30 NASDAQ Adv/Vol/Dec 1169/1.16 bln/1509 NYSE Adv/Vol/Dec 1539/692 mln/1547
1:00 pm : The major indices have surrendered to selling pressure. After chopping along the neutral line all three are now showing sizable losses.
The downturn follows broadbased declines. However, losses in the financial sector are the most significant. The financial sector was recently down 1.2%, but extended its losses to 2.1% with the latest move.
There is little interest in the financial sector as just three industry groups trade higher. Retail REITs (+0.1%) are garnerning modest attention, as are regional banks (+0.1%). Thrifts and mortgages (+0.3%) are the best performers.DJ30 -98.19 NASDAQ -13.42 SP500 -7.11 NASDAQ Adv/Vol/Dec 1296/998 mln/1385 NYSE Adv/Vol/Dec 1581/590 mln/1393
12:30 pm : After climbing to a session high, which equated to a 0.5% advance for the S&P 500, stocks have faded. The S&P 500 has since been chopping along the unchanged mark.
Gains are the most impressive among energy and materials. The two sectors are up 2.2% and 1.9%, respectively. The two sectors have been pressured in recent weeks as fears of a global economic slowdown take hold. Both sectors fell to their lowest point of the year earlier this week before buyers emerged.DJ30 -35.33 NASDAQ -2.07 SP500 -1.21 NASDAQ Adv/Vol/Dec 1195/876 mln/1441 NYSE Adv/Vol/Dec 1535/528 mln/1486
12:00 pm : Similar to the prior session, action during the first part of Friday trade has been guided by uncertainty. Investors continue looking for reassurance that the financial sector is patching its wounds, but the confirmation just isn't there.
Early selling efforts pushed the financial sector as much as 2.7% lower as traders tried to assess reports that suggest battered investment bank Lehman Brothers (LEH 3.81, -0.41) will be taken over by another bank, or even by a consortium of firms. Whoever the suitor proves to be, the Treasury has stated that government funds will be unavailable.
Meanwhile, Reuters reported the Treasury will guarantee the debt and mortgage backed securities of Fannie Mae (FNM 0.75, -0.03) and Freddie Mac (FRE 0.54, -0.06) until at least 2010.
Also garnering attention is Washington Mutual (WM 2.95, +0.12), which provided a third quarter update that indicated it is more than well-capitalized. It expects provisions to be around $4.5 billion for the quarter and has a liquidity position of $50 billion.
Credit rating agency Fitch downgraded WaMu and gave the firm a negative outlook. Its stock was downgraded at a handful of firms, but upgraded by others. The bank has also been the subject of takeover chatter.
The pressure on financials has eased a bit. The sector is now down 1.1%.
Uninspiring economic data also failed to motivate buying action in the early going, but participants have moved past the data. August retail sales reflected a decrease of 0.3%, despite expectations for a 0.2% increase. Sales during the prior month were revised lower to reflect a 0.5% decrease. Consumer spending remains on a sluggish growth path as consumers face such headwinds as rising unemployment levels and a cloudy economic outlook.
However, good inflation news can be taken from the latest PPI report. Producer prices declined 0.9% in August (consensus -0.5%) after increasing 1.2% in July and 1.8% in June. Core PPI, which excludes food and energy, rose 0.2%, in-line with expectations. DJ30 -28.90 NASDAQ -1.83 SP500 -0.62 NASDAQ Adv/Vol/Dec 1208/849 mln/1409 NYSE Adv/Vol/Dec 1555/511 mln/1484
11:30 am : The major indices have made their way into positive ground. Broad-based gains are leading the advance as no clear leader has emerged.
In contrast to the prior session, small-caps and mid-caps are outperforming the Dow, Nasdaq, and S&P 500. The Russell 2000 is up 0.6%, but the S&P 400 has climbed an impressive 1.3%. One of the better performing mid-cap companies is Arch Coal (ACI 41.45, +3.51). Arch has advanced during recent sessions after falling to its lowest point since January that followed commodity sell-offs.DJ30 +6.60 NASDAQ +5.05 SP500 +3.53 NASDAQ Adv/Vol/Dec 1266/727 mln/1301 NYSE Adv/Vol/Dec 1676/435 mln/1323
11:00 am : Stocks continue to trade in choppy fashion. The major indices have spent the entire session in the red.
Auto manufacturers are making a strong showing. Shares of General Motors (GM 13.78, +1.03) and Ford (F 4.88, +0.20) are both advancing. Reports indicate that GM is looking for low-cost loans from Congress that would help operations at the struggling automaker. Automakers continue efforts to stimulate business by offering incentives to consumers.
The rest of the consumer discretionary sector is performing less impressively. The sector is down 0.9%.DJ30 -80.76 NASDAQ -17.50 SP500 -5.32 NASDAQ Adv/Vol/Dec 928/537 mln/1570 NYSE Adv/Vol/Dec 1295/342 mln/1668
10:30 am : Stocks are improved from earlier levels, but still trade with losses.
According to a Reuters report, Treasury Secretary Paulson is adamant there will be no government money involved in any deal that resolves the crisis at Lehman Brothers (LEH 3.81, -0.41). The comments are intended to curtail speculation of government involvement, given the Fed's role in the JPMorgan Chase (JPM 41.26, -0.39) and Bear Stearns deal. Meanwhile, an article from Financial Times indicates that Bank of America (BAC 33.02, -0.04), investment advisory firm J.C. Flowers, and sovereign wealth fund China Investment Co. are considering a joint bid for Lehman. DJ30 -81.33 NASDAQ -17.58 SP500 -6.00 NASDAQ Adv/Vol/Dec 871/409 mln/1556 NYSE Adv/Vol/Dec 1182/264 mln/1712
10:00 am : Energy is trading with the largest gain among the ten economic sectors. It is up 1.1%.
All of energy's industry components are trading higher. Refiners continue to lead the charge, currently up 3.7%. Drillers (+1.7%) and exploration and production firms (+2.1%) are helping the effort.
Helping the performance of the drillers and E&P firms is a 0.9% rise in crude oil prices. The increase is still considerably less than the 4.3% slide week-to-date.
Lower fuel prices bode well for consumers by increasing their spending power.
The University of Michigan Preliminary Consumer Confidence Report for September came in at 73.1, reflecting substantial improvement from the 63.0 registered in the prior month. Economists had anticipated a reading of just 64.0 for September.DJ30 -110.56 NASDAQ -22.26 SP500 -9.14 NASDAQ Adv/Vol/Dec 643/211 mln/1645 NYSE Adv/Vol/Dec 923/147 mln/1852
09:45 am : Stocks have opened the session markedly lower. Losses are steepest among financials (-1.8%), though their position has improved.
The downturn in financials reflects continued investor wariness. Trading has been marked by uncertainty recently as participants ruminate over the future of Lehman Brothers (LEH 3.75, -0.47). According to reports, the struggling investment bank may be acquired, helping protect against the threat of failure. Shares of LEH have dropped more than 90% this year.
As a group, investment banks and brokerages are down 2.7% this session.DJ30 -121.00 NASDAQ -19.26 SP500 -10.16
09:15 am : S&P futures vs fair value: -9.30. Nasdaq futures vs fair value: -16.50. The major indices continue to trail fair value, indicating a downward start to the week's final trading session.
09:02 am : S&P futures vs fair value: -9.30. Nasdaq futures vs fair value: -16.50. Stock futures remain weak ahead of the opening. Telecom giants AT&T (T) and Verizon (VZ) have had their estimates cut at Credit Suisse. The lowered estimates reflect macro concerns and margin pressure. Meanwhile, analysts have a mixed view on Washington Mutual (WM); the stock has been downgraded at some firms and upgraded by others.
08:30 am : S&P futures vs fair value: -8.10. Nasdaq futures vs fair value: -9.50. The major indices remain on track for a downward open. The Producer Price Index (PPI) for August reflected a 0.9% decline from the prior month. Economists were expecting a 0.5% slide after the prior month gained 1.2%. Excluding food and energy costs, the PPI was up 0.2% month-over-month. The consensus also called for a 0.2% gain after the 0.7% advance registered the prior month. The advance reading for August retail sales decreased 0.3%, which is below the 0.2% increase that was widely anticipated. Sales during the prior month were revised lower to reflect a 0.5% decrease. Excluding autos, August retail sales were expected to slide 0.2%, but decreased 0.7%. They were up 0.3% the month before. Rising unemployment claims and a muddled outlook continue to represent stiff headwinds for consumers.
08:00 am : S&P futures vs fair value: -2.40. Nasdaq futures vs fair value: -3.30. Stock futures lag fair value ahead of Friday's opening bell. After yesterday's close The Washington Post reported the Treasury and the Fed are working on the sale of Lehman Brothers (LEH) through a consortium of firms. The report followed word that from The Wall Street Journal that Bank of America (BAC) is in talks with Lehman. Meanwhile, Reuters reported the Treasury will guarantee the debt and mortgage backed securities of Fannie Mae (FNM) and Freddie Mac (FRE) until at least 2010. Washington Mutual (WM) announced its capital levels surpass the well-capitalized level for the third quarter and expects provisions to be around $4.5 billion for the quarter. It also stated it has a strong liquidity position of $50 billion. Credit rating agency Fitch downgraded WaMu to BBB- and gave the firm a negative outlook
06:45 am : S&P futures vs fair value: -1.70. Nasdaq futures vs fair value: -7.00.
06:45 am : Nikkei...12214.76...-112.30...+0.90%. Hang Seng...19352.90...-35.80...-0.20%.
06:45 am : FTSE...5373.00...+54.60...+1.00%. DAX...6205.07...+26.20...+0.40%.
Discover What Traders Are Watching
Explore small cap ideas before they hit the headlines.
