AI
Monday, September 22, 2008 6:55:32 PM
Market Update 080922
http://biz.yahoo.com/mu/update.html
4:20 pm : The major indices were pummeled on Monday due to uncertainty over the details regarding the U.S. government’s $700 billion plan to fix the financial market turmoil and news that the two remaining major Wall Street investment banks converted to a traditional banking structure.
The S&P 500 fell 3.8%, settling at session lows, with all ten of the economic sectors posting a loss. Financials fell 8.5%, and consumer discretionary stocks declined 5.0%. The dollar fell sharply, and commodities rallied.
Over the weekend, Treasury Secretary Paulson submitted legislation to give the Treasury authority to spend up to $700 billion to purchase troubled assets from financial institutions, with most of the focus on residential and commercial mortgage-related assets. The Treasury believes the plan will address the root cause of the financial system’s stress by removing the distressed assets from the system.
There is some political wrangling regarding the deal, which is adding to the uncertainty of when the proposal will be passed by Congress. Reports indicate there are disagreements over some additional proposals from Democrats for the plan, including the Treasury taking an equity stake in the participating financial companies and limiting executive compensation.
Sunday night, the Federal Reserve agreed to convert Goldman Sachs (GS 120.59, -9.21) and Morgan Stanley (MS 27.26, +0.05) into bank holding companies. The move will allow Goldman and Morgan to expand retail banking offerings and give ongoing access to the Fed’s discount window, but will place the firms under additional regulatory oversight from the Federal Reserve.
In addition, Morgan Stanley said it is pursuing a strategic alliance with Tokyo-based Mitsubishi UFG Financial Group (MTU 8.27, -0.09). Mitsubishi will eventually take up to a 20% stake in Morgan Stanley at book value, according to its nonbinding letter of intent.
In corporate news, there were several share repurchase program announcements this morning. Microsoft (MSFT 25.39, +0.23) announced an additional $40 billion share repurchase program and raised its quarterly dividend by 18% to $0.13 per share. Hewlett-Packard (HPQ 47.06, -1.20) authorized an additional $8 billion for share repurchases. Nike (NKE 63.06, -0.64) announced a four-year $5 billion share repurchase program.
The amount of spending in the government’s plan to help financial firms sparked a sharp decline in the dollar. The Dollar Index fell 2.3%, with the euro gaining 3.0% against the dollar. This prompted buying interest in commodities (+3.9%).
Crude oil futures traded in an extremely volatile manner. The crude oil contract for October delivery, which expired today, spiked as high as 24% to $130 per barrel, before settling with a 15% gain at $120.00. Oil for November delivery, which becomes the front-month contract tomorrow, rallied 5.6% to $108.50 per barrel, but saw gains much smaller than October.
The outsized gains of the October delivery oil contract suggests that a massive short-covering rally played a role in the advance.DJ30 -372.75 NASDAQ -94.92 NQ100 -4.5% R2K -4.4% SP400 -4.7% SP500 -47.99 NASDAQ Adv/Vol/Dec 634/1.92 bln/2142 NYSE Adv/Vol/Dec 574/1.27 bln/2592
3:30 pm : The major indices extend their losses. The S&P 500 is down more than 3%, with notable weakness in financials (-8.0%), consumer discretionary (-4.7%) and telecom (-4.4%).
Volume on the NYSE is poised to be the lowest level in at least two weeks with 908 million shares exchanging hands. Market breadth is negative, with advancers outpacing decliners by 4-to-1 on the NYSE.DJ30 -333.16 NASDAQ -79.98 SP500 -42.40 NASDAQ Adv/Vol/Dec 667/1.50 bln/2105 NYSE Adv/Vol/Dec 631/908 mln/2521
3:00 pm : The S&P 500 hits a fresh session low going into the final hour of the session. Nine of the ten economic sectors are down at least 1%. Energy is posting a slight 0.6% gain.
General Motors (GM 12.16, -0.92) had its issuer default rating downgraded to CCC from B- with a negative outlook at Fitch Ratings. The downgrade was prompted by diminished liquidity and lack of access to capital.DJ30 -260.52 NASDAQ -65.44 SP500 -33.09 NASDAQ Adv/Vol/Dec 691/1.34 bln/2069 NYSE Adv/Vol/Dec 705/819 mln/2437
2:30 pm : The S&P 500 posts a loss of more than 2%.
Oil futures continue to rally. Oil for October delivery, which expires today, rose as much as 24%. It is up 19.6% to $124.20 per barrel. Oil for November delivery, however, is up 7.1% to $110.31 per barrel.
Commodities as a whole are up 3.3%, with gold posting a 4.7% gain at $901.00 per ounce.DJ30 -232.41 NASDAQ -61.43 SP500 -28.84 NASDAQ Adv/Vol/Dec 700/1.22 bln/2039 NYSE Adv/Vol/Dec 755/742 mln/2382
2:00 pm : The major indices post steep losses, but have halted their recent decline.
Oil prices climb to a gain of 12.8% at $118.80 per barrel in very volatile trade. Energy stocks are up 1.7%.
The gains in oil prices are weighing on airline stocks (-9.7%) and transports (-3.6%) in general. Retailers are down 4.2%.DJ30 -221.42 NASDAQ -55.96 SP500 -27.58 NASDAQ Adv/Vol/Dec 701/1.10 bln/2024 NYSE Adv/Vol/Dec 755/670 mln/2365
1:35 pm : Stocks establish fresh session lows as crude oil prices continues to rally. Prices are now up 9.6% to $114.54 per barrel -- marking the largest one-day percent gain since 1998. Oil prices have posted a gain during each of the last four sessions.
The dollar extends its decline, falling 1.8% against a basket of world currencies. The dollar is down 2.7% against the euro.
Moody's said the United States' Aaa rating is not presently threatened by the current challenging environment, noting the robust levels of economic and financial resilience of the U.S.DJ30 -257.53 NASDAQ -57.98 SP500 -30.59 NASDAQ Adv/Vol/Dec 709/1.01 bln/2000 NYSE Adv/Vol/Dec 743/615 mln/2364
1:00 pm : Though the government is making strides to restore financial markets, the lingering uncertainty continues to benefit commodities.
Crude prices have moved past $112 per barrel. They are now up more than 7% this session and up almost 15% over the past two sessions. Crude prices are still nearly 25% off their record highs, however.
Gold is also finding favor from safety seekers. The yellow metal is up 4% for the session. It was hit hard late last week as stocks spiked on regulatory developments, but it is still up more than 14% from five sessions ago. Gold is about 15% off of its 52-week high.DJ30 -178.81 NASDAQ -43.81 SP500 -22.34 NASDAQ Adv/Vol/Dec 766/899 mln/1904 NYSE Adv/Vol/Dec 807/552 mln/2274
12:30 pm : The major indices trade near recently reached session lows. Fitch Ratings said the costs of the U.S. government rescue plan are manageable and within the AAA sovereign rating, Reuters reports.
European markets ended their session with substantial losses, falling in conjunction with U.S. stocks. London's FTSE fell 1.4%, France's CAC declined 2.3% and Germany's DAX fell 1.3%.DJ30 -201.34 NASDAQ -48.41 SP500 -26.47 NASDAQ Adv/Vol/Dec 709/198 mln/1945 NYSE Adv/Vol/Dec 704/493 mln/2368
12:05 pm : The stock market is trading with a loss of more than 2% as market participants digest developments regarding the government’s $700 billion plan to save the financial system and news that the two remaining Wall Street investment banks are changing to a traditional banking structure.
Over the weekend, Treasury Secretary Paulson submitted legislation to give the Treasury authority to spend up to $700 billion to purchase troubled assets from financial institutions, with most of the focus on residential and commercial mortgage-related assets. Purchases would be made up to two years from the plan’s enactment, and prices would be established through market mechanisms, such as reverse auctions. The Treasury believes the plan will address the root cause of the financial system’s stress by removing the distressed assets from the system.
Senate Democrats are working on adding measures to the proposal, including giving government shares in the participating financial companies, limiting executive compensation and creating an oversight board, The Wall Street Journal reports.
Last night, the Federal Reserve agreed to convert Goldman Sachs (GS 130.17, +0.37) and Morgan Stanley (MS 30.00, +2.79) into bank holding companies. The move will allow Goldman and Morgan to expand retail banking offerings and give ongoing access to the Fed’s discount window, but will place the firms under additional regulatory oversight from the Federal Reserve.
In addition, Morgan Stanley said it is pursuing a strategic alliance with Tokyo-based Mitsubishi UFG Financial Group (MTU 8.17, -0.19). Mitsubishi will eventually take up to a 20% stake in Morgan Stanley at book value, according to its nonbinding letter of intent.
The financial sector is down 6.1%, with regional banks dropping 9.5%. A JPMorgan analyst said investors should sell shares in regional banks, noting that the stocks may only have an indirect benefit from the government’s rescue plan, according to Reuters.
There were several share repurchase program announcements this morning. Microsoft (MSFT 25.91, +0.75) announced an additional $40 billion share repurchase program and raised its quarterly dividend by 18% to $0.13 per share. Hewlett-Packard (HPQ 48.02, -0.24) authorized an additional $8 billion for share repurchases. Nike (NKE 62.97, -0.73) announced a four-year $5 billion share repurchase program.
As stocks falter, commodities rally. Oil prices are up 4.9% to $109.66 per barrel and gold prices are up 4.6%. Conversely, the dollar is down 1.3% against a basket of world currencies.
All ten economic sectors are posting a loss at midday, as the S&P 500 trades near its recently reached session low. Financials, consumer discretionary (-2.7%) and telecom (-2.8%) are the worst-performing areas. The energy sector (-0.2%) is outperforming on a relative basis thanks to the gains in oil prices.DJ30 -191.87 NASDAQ -47.27 SP500 -26.37 NASDAQ Adv/Vol/Dec 720/730 mln/1914 NYSE Adv/Vol/Dec 7222/452 mln/2334
11:30 am : The major indices fall to session lows, with the S&P 500 down more than 2%. The recent downturn has been broad-based.
At the same time, crude (+4.4%, $109.16) and gold (+4.3%) prices rally to session highs. Oil prices are up 14% during the past five sessions.DJ30 -193.06 NASDAQ -44.01 SP500 -25.79 NASDAQ Adv/Vol/Dec 686/605 mln/1922 NYSE Adv/Vol/Dec 727/386 mln/2295
11:05 am : The major indices trade modestly above session lows. Volume is relatively light today, with the NYSE on pace for its lowest volume in 12 sessions.
The Wall Street Journal reports that Senator Christopher Dodd's bailout draft could give the government shares of financial companies. Senator Dodd is the Chairman of the Senate Banking Committee. The Senate draft would limit executive compensation for participating firms, and would create an oversight board, the Journal reported.
Washington Mutual (WM 3.48, -0.77) is down 18%. The struggling company has not been able to find a buyer, according to reports.DJ30 -145.59 NASDAQ -29.53 SP500 -18.44 NASDAQ Adv/Vol/Dec 780/482 mln/1771 NYSE Adv/Vol/Dec 864/317 mln/2122
10:30 am : The stock market extends its decline, with all ten economic sectors in the red.
The worst performing sectors are financials (-5.9%) and consumer discretionary (-2.0%). The energy sector (-0.2%) is outperforming on a relative basis as crude prices rally 3.6%.
The advance in oil prices is weighing on airline stocks (-4.6%) and retailers (-2.4%).
In overseas trading, European market's are posting slight losses, with the FTSE down 0.3%, France's CAC down 0.4% and Germany's DAX down 0.1%. Japan's Nikkei rose 1.4% and Hong Kong's Hang Seng climbed 1.6%.DJ30 -150.29 NASDAQ -32.87 SP500 -20.49 NASDAQ Adv/Vol/Dec 720/354 mln/1774 NYSE Adv/Vol/Dec 762/247 mln/2161
10:00 am : The stock market extends its losses in mostly broad-based weakness. Nine of the ten sectors are posting a loss.
The financial sector is posting the largest decline, down 4.7%. The thrifts & mortgage group is down 8.8%, diversified banks are down 8.3% and regional banks are down 7.6%.
News of the possible bailout of financial instutions sparked a stock market rally on Thursday and Friday last week, but the plan is also prompting buying interest in commodities.
Crude oil prices are up 3.3% to $108.05 per barrel this session, and are up 13% since the low on Thursday. Gold is up 2.1% today, and is up 6% since its low on Thursday and commodities as a whole are up 1.3% today and are up 4% since the low on Thursday.
Conversely, the dollar has come under selling interest. The Dollar Index is down 1.0% today, and is down 2.0% since its high on Thursday.DJ30 -124.96 NASDAQ -29.71 SP500 -18.90 NASDAQ Adv/Vol/Dec 737/200 mln/1624 NYSE Adv/Vol/Dec 892/153 mln/1952
09:40 am : The stock market opens on a negative note following the previous two session's strong gains.
Morgan Stanley (MS 30.82, +3.76) is up 14% after Tokyo-based Mitsubishi UFJ Financial Group said it plans to buy between 10% and 20% of MS common stock, according to Reuters. Last night, the Federal Reserve agreed to convert Goldman Sachs (GS 130.79, +0.99) and Morgan Stanley into bank holding companies, according to reports.
The Treasury wants to spend up to $700 billion to buy bad mortgage-related debt from financial institutions. Congress still has to approve a plan.
There were several share repurchase program announcements this morning. Microsoft (MSFT 26.04, +0.89) announced an additional $40 billion share repurchase program and raised its quarterly dividend by 18% to $0.13 per share. Hewlett-Packard (HPQ 48.32, +0.06) authorized an additional $8 billion for share repurchases. Nike (NKE 64.97, +1.27) announced a four-year $5 billion share repurchase program.DJ30 -57.26 NASDAQ -18.97 SP500 -10.21
09:16 am : S&P futures vs fair value: -8.90. Nasdaq futures vs fair value: -7.80. Futures climb to session highs, although a lower start is still indicated. Hewlett-Packard (HPQ) authorized an additional $8 billion for share repurchases. Hewlett-Packard had $3 billion of repurchase authorization remaining from its previous $8 billion program authorized in November 2007. Nike (NKE) announced a four-year $5 billion share repurchase program, which will start upon the completion of the company's current $3 billion program.
08:59 am : S&P futures vs fair value: -15.20. Nasdaq futures vs fair value: -12.30. Nasdaq futures climb to session highs after Microsoft announced an additional $40 billion share repurchase program and raised its quarterly dividend by 18% to $0.13 per share. MSFT is up 5.3% in premarket trading. Morgan Stanley (MS) is up 14% after Tokyo-based Mitsubishi UFJ Financial Group said it plans to buy between 10% and 20% of MS common stock, according to Reuters.
08:30 am : S&P futures vs fair value: -13.60. Nasdaq futures vs fair value: -21.50.
08:00 am : S&P futures vs fair value: -19.60. Nasdaq futures vs fair value: -28.30. Futures suggest a lower start following Friday's sharp gains. Treasury Secretary Paulson wants to spend up to $700 billion to buy bad mortgage-related debt from financial institutions. Last night, the Federal Reserve agreed to convert Goldman Sachs (GS) and Morgan Stanley (MS) into bank holding companies, according to reports. The move will allow Goldman and Morgan to take on more deposits, but will place them under additional regulatory oversight from the Federal Reserve.
06:40 am : Nikkei...12090.59...+169.70...+1.40%. Hang Seng...19632.20...+304.50...+1.60%.
06:40 am : FTSE...5305.07...-6.20...-0.10%. DAX...6185.55...-4.00...-0.10%.
06:40 am : S&P futures vs fair value: -21.40. Nasdaq futures vs fair value: -26.25.
http://biz.yahoo.com/mu/update.html
4:20 pm : The major indices were pummeled on Monday due to uncertainty over the details regarding the U.S. government’s $700 billion plan to fix the financial market turmoil and news that the two remaining major Wall Street investment banks converted to a traditional banking structure.
The S&P 500 fell 3.8%, settling at session lows, with all ten of the economic sectors posting a loss. Financials fell 8.5%, and consumer discretionary stocks declined 5.0%. The dollar fell sharply, and commodities rallied.
Over the weekend, Treasury Secretary Paulson submitted legislation to give the Treasury authority to spend up to $700 billion to purchase troubled assets from financial institutions, with most of the focus on residential and commercial mortgage-related assets. The Treasury believes the plan will address the root cause of the financial system’s stress by removing the distressed assets from the system.
There is some political wrangling regarding the deal, which is adding to the uncertainty of when the proposal will be passed by Congress. Reports indicate there are disagreements over some additional proposals from Democrats for the plan, including the Treasury taking an equity stake in the participating financial companies and limiting executive compensation.
Sunday night, the Federal Reserve agreed to convert Goldman Sachs (GS 120.59, -9.21) and Morgan Stanley (MS 27.26, +0.05) into bank holding companies. The move will allow Goldman and Morgan to expand retail banking offerings and give ongoing access to the Fed’s discount window, but will place the firms under additional regulatory oversight from the Federal Reserve.
In addition, Morgan Stanley said it is pursuing a strategic alliance with Tokyo-based Mitsubishi UFG Financial Group (MTU 8.27, -0.09). Mitsubishi will eventually take up to a 20% stake in Morgan Stanley at book value, according to its nonbinding letter of intent.
In corporate news, there were several share repurchase program announcements this morning. Microsoft (MSFT 25.39, +0.23) announced an additional $40 billion share repurchase program and raised its quarterly dividend by 18% to $0.13 per share. Hewlett-Packard (HPQ 47.06, -1.20) authorized an additional $8 billion for share repurchases. Nike (NKE 63.06, -0.64) announced a four-year $5 billion share repurchase program.
The amount of spending in the government’s plan to help financial firms sparked a sharp decline in the dollar. The Dollar Index fell 2.3%, with the euro gaining 3.0% against the dollar. This prompted buying interest in commodities (+3.9%).
Crude oil futures traded in an extremely volatile manner. The crude oil contract for October delivery, which expired today, spiked as high as 24% to $130 per barrel, before settling with a 15% gain at $120.00. Oil for November delivery, which becomes the front-month contract tomorrow, rallied 5.6% to $108.50 per barrel, but saw gains much smaller than October.
The outsized gains of the October delivery oil contract suggests that a massive short-covering rally played a role in the advance.DJ30 -372.75 NASDAQ -94.92 NQ100 -4.5% R2K -4.4% SP400 -4.7% SP500 -47.99 NASDAQ Adv/Vol/Dec 634/1.92 bln/2142 NYSE Adv/Vol/Dec 574/1.27 bln/2592
3:30 pm : The major indices extend their losses. The S&P 500 is down more than 3%, with notable weakness in financials (-8.0%), consumer discretionary (-4.7%) and telecom (-4.4%).
Volume on the NYSE is poised to be the lowest level in at least two weeks with 908 million shares exchanging hands. Market breadth is negative, with advancers outpacing decliners by 4-to-1 on the NYSE.DJ30 -333.16 NASDAQ -79.98 SP500 -42.40 NASDAQ Adv/Vol/Dec 667/1.50 bln/2105 NYSE Adv/Vol/Dec 631/908 mln/2521
3:00 pm : The S&P 500 hits a fresh session low going into the final hour of the session. Nine of the ten economic sectors are down at least 1%. Energy is posting a slight 0.6% gain.
General Motors (GM 12.16, -0.92) had its issuer default rating downgraded to CCC from B- with a negative outlook at Fitch Ratings. The downgrade was prompted by diminished liquidity and lack of access to capital.DJ30 -260.52 NASDAQ -65.44 SP500 -33.09 NASDAQ Adv/Vol/Dec 691/1.34 bln/2069 NYSE Adv/Vol/Dec 705/819 mln/2437
2:30 pm : The S&P 500 posts a loss of more than 2%.
Oil futures continue to rally. Oil for October delivery, which expires today, rose as much as 24%. It is up 19.6% to $124.20 per barrel. Oil for November delivery, however, is up 7.1% to $110.31 per barrel.
Commodities as a whole are up 3.3%, with gold posting a 4.7% gain at $901.00 per ounce.DJ30 -232.41 NASDAQ -61.43 SP500 -28.84 NASDAQ Adv/Vol/Dec 700/1.22 bln/2039 NYSE Adv/Vol/Dec 755/742 mln/2382
2:00 pm : The major indices post steep losses, but have halted their recent decline.
Oil prices climb to a gain of 12.8% at $118.80 per barrel in very volatile trade. Energy stocks are up 1.7%.
The gains in oil prices are weighing on airline stocks (-9.7%) and transports (-3.6%) in general. Retailers are down 4.2%.DJ30 -221.42 NASDAQ -55.96 SP500 -27.58 NASDAQ Adv/Vol/Dec 701/1.10 bln/2024 NYSE Adv/Vol/Dec 755/670 mln/2365
1:35 pm : Stocks establish fresh session lows as crude oil prices continues to rally. Prices are now up 9.6% to $114.54 per barrel -- marking the largest one-day percent gain since 1998. Oil prices have posted a gain during each of the last four sessions.
The dollar extends its decline, falling 1.8% against a basket of world currencies. The dollar is down 2.7% against the euro.
Moody's said the United States' Aaa rating is not presently threatened by the current challenging environment, noting the robust levels of economic and financial resilience of the U.S.DJ30 -257.53 NASDAQ -57.98 SP500 -30.59 NASDAQ Adv/Vol/Dec 709/1.01 bln/2000 NYSE Adv/Vol/Dec 743/615 mln/2364
1:00 pm : Though the government is making strides to restore financial markets, the lingering uncertainty continues to benefit commodities.
Crude prices have moved past $112 per barrel. They are now up more than 7% this session and up almost 15% over the past two sessions. Crude prices are still nearly 25% off their record highs, however.
Gold is also finding favor from safety seekers. The yellow metal is up 4% for the session. It was hit hard late last week as stocks spiked on regulatory developments, but it is still up more than 14% from five sessions ago. Gold is about 15% off of its 52-week high.DJ30 -178.81 NASDAQ -43.81 SP500 -22.34 NASDAQ Adv/Vol/Dec 766/899 mln/1904 NYSE Adv/Vol/Dec 807/552 mln/2274
12:30 pm : The major indices trade near recently reached session lows. Fitch Ratings said the costs of the U.S. government rescue plan are manageable and within the AAA sovereign rating, Reuters reports.
European markets ended their session with substantial losses, falling in conjunction with U.S. stocks. London's FTSE fell 1.4%, France's CAC declined 2.3% and Germany's DAX fell 1.3%.DJ30 -201.34 NASDAQ -48.41 SP500 -26.47 NASDAQ Adv/Vol/Dec 709/198 mln/1945 NYSE Adv/Vol/Dec 704/493 mln/2368
12:05 pm : The stock market is trading with a loss of more than 2% as market participants digest developments regarding the government’s $700 billion plan to save the financial system and news that the two remaining Wall Street investment banks are changing to a traditional banking structure.
Over the weekend, Treasury Secretary Paulson submitted legislation to give the Treasury authority to spend up to $700 billion to purchase troubled assets from financial institutions, with most of the focus on residential and commercial mortgage-related assets. Purchases would be made up to two years from the plan’s enactment, and prices would be established through market mechanisms, such as reverse auctions. The Treasury believes the plan will address the root cause of the financial system’s stress by removing the distressed assets from the system.
Senate Democrats are working on adding measures to the proposal, including giving government shares in the participating financial companies, limiting executive compensation and creating an oversight board, The Wall Street Journal reports.
Last night, the Federal Reserve agreed to convert Goldman Sachs (GS 130.17, +0.37) and Morgan Stanley (MS 30.00, +2.79) into bank holding companies. The move will allow Goldman and Morgan to expand retail banking offerings and give ongoing access to the Fed’s discount window, but will place the firms under additional regulatory oversight from the Federal Reserve.
In addition, Morgan Stanley said it is pursuing a strategic alliance with Tokyo-based Mitsubishi UFG Financial Group (MTU 8.17, -0.19). Mitsubishi will eventually take up to a 20% stake in Morgan Stanley at book value, according to its nonbinding letter of intent.
The financial sector is down 6.1%, with regional banks dropping 9.5%. A JPMorgan analyst said investors should sell shares in regional banks, noting that the stocks may only have an indirect benefit from the government’s rescue plan, according to Reuters.
There were several share repurchase program announcements this morning. Microsoft (MSFT 25.91, +0.75) announced an additional $40 billion share repurchase program and raised its quarterly dividend by 18% to $0.13 per share. Hewlett-Packard (HPQ 48.02, -0.24) authorized an additional $8 billion for share repurchases. Nike (NKE 62.97, -0.73) announced a four-year $5 billion share repurchase program.
As stocks falter, commodities rally. Oil prices are up 4.9% to $109.66 per barrel and gold prices are up 4.6%. Conversely, the dollar is down 1.3% against a basket of world currencies.
All ten economic sectors are posting a loss at midday, as the S&P 500 trades near its recently reached session low. Financials, consumer discretionary (-2.7%) and telecom (-2.8%) are the worst-performing areas. The energy sector (-0.2%) is outperforming on a relative basis thanks to the gains in oil prices.DJ30 -191.87 NASDAQ -47.27 SP500 -26.37 NASDAQ Adv/Vol/Dec 720/730 mln/1914 NYSE Adv/Vol/Dec 7222/452 mln/2334
11:30 am : The major indices fall to session lows, with the S&P 500 down more than 2%. The recent downturn has been broad-based.
At the same time, crude (+4.4%, $109.16) and gold (+4.3%) prices rally to session highs. Oil prices are up 14% during the past five sessions.DJ30 -193.06 NASDAQ -44.01 SP500 -25.79 NASDAQ Adv/Vol/Dec 686/605 mln/1922 NYSE Adv/Vol/Dec 727/386 mln/2295
11:05 am : The major indices trade modestly above session lows. Volume is relatively light today, with the NYSE on pace for its lowest volume in 12 sessions.
The Wall Street Journal reports that Senator Christopher Dodd's bailout draft could give the government shares of financial companies. Senator Dodd is the Chairman of the Senate Banking Committee. The Senate draft would limit executive compensation for participating firms, and would create an oversight board, the Journal reported.
Washington Mutual (WM 3.48, -0.77) is down 18%. The struggling company has not been able to find a buyer, according to reports.DJ30 -145.59 NASDAQ -29.53 SP500 -18.44 NASDAQ Adv/Vol/Dec 780/482 mln/1771 NYSE Adv/Vol/Dec 864/317 mln/2122
10:30 am : The stock market extends its decline, with all ten economic sectors in the red.
The worst performing sectors are financials (-5.9%) and consumer discretionary (-2.0%). The energy sector (-0.2%) is outperforming on a relative basis as crude prices rally 3.6%.
The advance in oil prices is weighing on airline stocks (-4.6%) and retailers (-2.4%).
In overseas trading, European market's are posting slight losses, with the FTSE down 0.3%, France's CAC down 0.4% and Germany's DAX down 0.1%. Japan's Nikkei rose 1.4% and Hong Kong's Hang Seng climbed 1.6%.DJ30 -150.29 NASDAQ -32.87 SP500 -20.49 NASDAQ Adv/Vol/Dec 720/354 mln/1774 NYSE Adv/Vol/Dec 762/247 mln/2161
10:00 am : The stock market extends its losses in mostly broad-based weakness. Nine of the ten sectors are posting a loss.
The financial sector is posting the largest decline, down 4.7%. The thrifts & mortgage group is down 8.8%, diversified banks are down 8.3% and regional banks are down 7.6%.
News of the possible bailout of financial instutions sparked a stock market rally on Thursday and Friday last week, but the plan is also prompting buying interest in commodities.
Crude oil prices are up 3.3% to $108.05 per barrel this session, and are up 13% since the low on Thursday. Gold is up 2.1% today, and is up 6% since its low on Thursday and commodities as a whole are up 1.3% today and are up 4% since the low on Thursday.
Conversely, the dollar has come under selling interest. The Dollar Index is down 1.0% today, and is down 2.0% since its high on Thursday.DJ30 -124.96 NASDAQ -29.71 SP500 -18.90 NASDAQ Adv/Vol/Dec 737/200 mln/1624 NYSE Adv/Vol/Dec 892/153 mln/1952
09:40 am : The stock market opens on a negative note following the previous two session's strong gains.
Morgan Stanley (MS 30.82, +3.76) is up 14% after Tokyo-based Mitsubishi UFJ Financial Group said it plans to buy between 10% and 20% of MS common stock, according to Reuters. Last night, the Federal Reserve agreed to convert Goldman Sachs (GS 130.79, +0.99) and Morgan Stanley into bank holding companies, according to reports.
The Treasury wants to spend up to $700 billion to buy bad mortgage-related debt from financial institutions. Congress still has to approve a plan.
There were several share repurchase program announcements this morning. Microsoft (MSFT 26.04, +0.89) announced an additional $40 billion share repurchase program and raised its quarterly dividend by 18% to $0.13 per share. Hewlett-Packard (HPQ 48.32, +0.06) authorized an additional $8 billion for share repurchases. Nike (NKE 64.97, +1.27) announced a four-year $5 billion share repurchase program.DJ30 -57.26 NASDAQ -18.97 SP500 -10.21
09:16 am : S&P futures vs fair value: -8.90. Nasdaq futures vs fair value: -7.80. Futures climb to session highs, although a lower start is still indicated. Hewlett-Packard (HPQ) authorized an additional $8 billion for share repurchases. Hewlett-Packard had $3 billion of repurchase authorization remaining from its previous $8 billion program authorized in November 2007. Nike (NKE) announced a four-year $5 billion share repurchase program, which will start upon the completion of the company's current $3 billion program.
08:59 am : S&P futures vs fair value: -15.20. Nasdaq futures vs fair value: -12.30. Nasdaq futures climb to session highs after Microsoft announced an additional $40 billion share repurchase program and raised its quarterly dividend by 18% to $0.13 per share. MSFT is up 5.3% in premarket trading. Morgan Stanley (MS) is up 14% after Tokyo-based Mitsubishi UFJ Financial Group said it plans to buy between 10% and 20% of MS common stock, according to Reuters.
08:30 am : S&P futures vs fair value: -13.60. Nasdaq futures vs fair value: -21.50.
08:00 am : S&P futures vs fair value: -19.60. Nasdaq futures vs fair value: -28.30. Futures suggest a lower start following Friday's sharp gains. Treasury Secretary Paulson wants to spend up to $700 billion to buy bad mortgage-related debt from financial institutions. Last night, the Federal Reserve agreed to convert Goldman Sachs (GS) and Morgan Stanley (MS) into bank holding companies, according to reports. The move will allow Goldman and Morgan to take on more deposits, but will place them under additional regulatory oversight from the Federal Reserve.
06:40 am : Nikkei...12090.59...+169.70...+1.40%. Hang Seng...19632.20...+304.50...+1.60%.
06:40 am : FTSE...5305.07...-6.20...-0.10%. DAX...6185.55...-4.00...-0.10%.
06:40 am : S&P futures vs fair value: -21.40. Nasdaq futures vs fair value: -26.25.
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