Wednesday, October 15, 2008 7:17:32 PM
Market Update 081015
http://biz.yahoo.com/mu/update.html
4:30 pm : The stock market plunged the most since the crash of 1987 as disappointing retail sales data and credit concerns renewed economic fears. Specifically, the S&P 500 plunged 9.0%, settling near session lows.
Consumers continue to curtail spending in the face of economic headwinds. Retail sales in September tumbled 1.2% month-over-month, the third consecutive monthly drop and largest decline in three years. The decrease was larger than the expected drop of 0.7%. Sales are down 1.0% compared to last year, marking the first year-over-year decline since October 2002.
Separately, the Producer Price Index, an inflation reading, fell 0.4% in September due to a decrease in commodity prices. Excluding food and energy, PPI rose 0.4%, which was more than the expected increase of 0.2%.
Although credit markets are showing signs of improvement, there are concerns that a recovery will take longer than hoped for. Dollar Libor, which is the rate banks charge each other for short-term dollar loans, slightly declined across all terms for the second straight session, but remain at highly elevated states. This indicates banks are more willing to lend to each other, but are still showing extreme caution. In addition, there was a high demand for Treasuries as investors seek safety.
An afternoon speech from Fed Chairman Bernanke and the release of the Fed's Beige Book did not give the market any real surprises, but painted a sobering economic picture and indicated that a recovery will take time.
Economic concerns sparked broad-based selling, with 99% of the S&P 500 posting a loss and all ten of the economic sectors ending the day deep in the red.
The energy sector (-15.5%) was hit the hardest, falling in conjunction with energy commodities. Crude prices tumbled 5.9% to $74.03 per barrel on global slowdown concerns and a cut in OPEC's demand forecast. On a similar note, commodity prices as a whole fell 4.5%, resulting in a 12.1% decline in the materials sector.
Defensive oriented sectors consumer staples (-6.0%) and healthcare (-6.7%) outperformed on a relative basis, but still posted steep declines.
In earnings news, quarterly results were mostly better-than-expected, although several companies that posted upside results still came under selling pressure.
Some of the more notable names that topped expectations include Abbott Labs (ABT 53.40, -1.38) Coca-Cola (KO 44.19. +0.46), Intel (INTC 15.05, +0.88), JPMorgan Chase (JPM 38.34, -2.37) and Wells Fargo (WFC 32.76, -0.76).
The S&P 500 is now up only 1.0% this week after giving up the majority of Monday's massive 11.6% gain. The index is still up 8.1% from its multi-year intraday low reached last Friday.DJ30 -733.08 NASDAQ -150.68 NQ100 -8.8% R2K -9.5% SP400 -9.7% SP500 -90.17 NASDAQ Adv/Vol/Dec 369/2.54 bln/2401 NYSE Adv/Vol/Dec 340/1.68 bln/2848
3:30 pm : Another recovery attempt is met with selling pressure as the stock market posts a loss of nearly 7% going into the closing bell.
Market breadth is bearish. Decliners outpace advancers by more than 7-to-1 on the NYSE and by more than 5-to-1 on the Nasdaq. Volume is about average, but could be considered light given the scope of the move this session.
Tomorrow is packed with earnings releases, with 18 companies reporting after the close of this session and 48 reporting before the open on Thursday. Some of the bigger names include eBay (EBAY 15.74, -2.00), Citigroup (C 16.63, -1.99) and Merrill Lynch (MER 19.08, -2.27).DJ30 -529.43 NASDAQ -107.26 SP500 -68.21 NASDAQ Adv/Vol/Dec 454/1.95 bln/2299 NYSE Adv/Vol/Dec 390/1.08 bln/2785
3:00 pm : Stocks recover some ground and then selling pressure puts them back on the defensive. The S&P 500 is down roughly 6.5%, which is near its session low when it was down 7.3% at 2:15 PM ET.
St. Louis Fed President Bullard said the September retail sales report is signaling third quarter real GDP could be flat or even slightly negative, Reuters reports.DJ30 -515.70 NASDAQ -98.40 SP500 -64.51 NASDAQ Adv/Vol/Dec 439/1.77 bln/2300 NYSE Adv/Vol/Dec 384/989 mln/2782
2:30 pm : Stocks trade near recently reached session lows as traders digest the Fed's Beige Book, which is a collection of anecdotal economic information.
The Beige Book said that economic activity slowed in September, and credit tightened throughout the country. Residential real estate remains weak and commercial real estate is slowing in many districts. On the positive side, inflationary pressures moderated a bit in September.DJ30 -497.16 NASDAQ -100.21 SP500 -64.59 NASDAQ Adv/Vol/Dec 404/1.58 bln/2319 NYSE Adv/Vol/Dec 358/899 mln/2799
2:00 pm : Losses remain heavy in the major indices. The Dow, Nasdaq, and S&P 500 have all fallen another leg lower to new session lows.
Market breadth remains bearish. 98% of the companies in the S&P 500 are trading with losses, while 29 of the 30 Dow components are in the red.
Coca-Cola (KO 45.06, +1.33) is the only Dow component making gains. Coke announced this morning upbeat earnings per share results for its latest quarter. It was the eighth straight quarter in which Coke logged double-digit earnings per share growth, and at least as many in which the results surpassed the consensus estimate.
Just hitting the wires, the Fed's Beige Book indicated a weakening of economic activity across all 12 districts.DJ30 -508.87 NASDAQ -102.84 SP500 -66.63 NASDAQ Adv/Vol/Dec 421/1.44 bln/2287 NYSE Adv/Vol/Dec 350/822 mln/2793
1:30 pm : The stock market slides to a fresh session low. The S&P 500 is down more than 5% this session, but is still up 4.9% this week thanks to the 11.6% surge on Monday.
The recent downturn has been broad-based and there does not appear to be a specific catalyst for the decline.
Meanwhile, buying interest picks up in Treasuries and the dollar (+0.9%).
The Brazilian Bovespa stock market tumbled to a 10% loss, prompting a halt in trading.DJ30 -429.78 NASDAQ -82.91 SP500 -55.76 NASDAQ Adv/Vol/Dec 461/1.25 bln/2227 NYSE Adv/Vol/Dec 380/726 mln/2742
1:00 pm : The S&P 500 recovers from session lows, but is still down roughly 4%.
Fed Chairman Bernanke has completed his prepared text and is currently participating in an question and answer session at the Economic Club of New York. When asked about the similarities to the Great Depression, Bernanke said the current situation is not remotely like that of the 1930s, noting that the government is not making the same mistakes.DJ30 -286.49 NASDAQ -59.18 SP500 -39.20 NASDAQ Adv/Vol/Dec 524/1.13 bln/2117 NYSE Adv/Vol/Dec 399/661 mln/2699
12:30 pm : Stocks extend their declines as Fed Chairman Bernanke speaks at the Economic Club of New York.
In Bernanke's prepared text, he said that during past economic crises the government took too long to act, but during the current turmoil the government acted swiftly, which will help to restore market functioning quicker. Despite the swift action, Bernanke noted that credit markets "will take some time to unfreeze" and the economic recovery "will not happen right away."DJ30 -379.20 NASDAQ -68.46 SP500 -49.02 NASDAQ Adv/Vol/Dec 502/1.02 bln/2126 NYSE Adv/Vol/Dec 332/600 mln/2740
12:00 pm : Stocks are down more than 4% at midday after a weak retail sales report added to overall economic worries.
Consumers continue to curtail spending in the face of economic headwinds. Retail sales in September tumbled 1.2% month-over-month, the third consecutive monthly drop and largest decline in three years. The decrease was larger than the expected drop of 0.7%. Sales are down 1.0% compared to last year, marking the first year-over-year decline since October 2002.
The disappointing data prompted a broad-based decline in the stock market, as all ten sectors post a loss at midday.
The energy sector (-9.5%) is the main laggard in conjunction with a retreat in energy prices. Crude oil prices are down 4.2% to $75.38, which is the lowest level in more than a year.
The tech sector (-2.9%) is outperforming on a relative basis thanks to a better-than-expected 13% year-over-year third quarter earnings per growth at Intel (INTC 16.21, +0.21). On a similar note, the defensive-oriented consumer staples sector (-2.2%) is outperforming on a relative basis after Coca-Cola (KO 45.90, +2.20) posted 17% third quarter earnings per share growth that topped estimates.
In other earnings news, Abbott Labs (ABT 54.83, +0.05), CSX (CSX 43.68, -4.46) and State Street (STT 49.82, -6.87) all posted quarterly earnings growth that topped expectations.
Charles Schwab (SCHW 20.68, -0.27), JPMorgan Chase (JPM 40.58, +0.13), Marshall & IIsley (MI 18.23, -0.77) and Wells Fargo (WFC 34.72, +1.20) saw earnings per share slip, but managed to exceed Wall Street's forecast.
Genentech's (DNA 83.19, +4.07) profit growth fell short of estimates and Delta Airlines (DAL 7.83, +0.48) swung to an unexpected loss.
Although the retail sales data garnered most of the market's attention, there were several other economic reports.
According to a regional survey, manufacturing in the New York region contracted by the most since 2001, which is as far as the survey's data go back. The NY Empire Manufacturing Index declined 17.2 to -24.6 in October, which was worse than the expected reading of -10.0.
The Producer Price Index, an inflation reading, fell 0.4% in September, helped by easing commodity prices. Excluding food and energy, PPI rose 0.4%.
Business inventories in August rose by 0.3%, which was slightly less then the expected growth of 0.5%. Inventory levels rose by 0.6% in manufacturing, 0.8% in wholesalers and declined 0.6% in retail. Inventories are up 6.4% year-over-year. The data are adjusted for seasonal variations, but not for price changes.
Fed Chairman Bernanke is set to speak at the Economic Club of New York in about 15 minutes.DJ30 -328.07 NASDAQ -57.75 SP500 -42.97 NASDAQ Adv/Vol/Dec 542/911 mln/2053 NYSE Adv/Vol/Dec 333/537 mln/2729
11:30 am : A recovery attempt is met with selling pressure, sending the major indices to session lows. The S&P 500 is down 5.0% as the energy sector tumbles 10.0% and the materials sector falls 7.4%
The dollar is up 0.5% as it rallies 2.1% against the Canadian dollar and 2.5% against the Swedish Krona.
DJ30 -387.42 NASDAQ -63.23 SP500 -49.80 NASDAQ Adv/Vol/Dec 526/790 mln/2034 NYSE Adv/Vol/Dec 299/467 mln/2753
11:00 am : The S&P 500 falls to a loss of more than 4%. Weakness is broad-based.
Within the S&P 500, only 25 stocks are in positive territory. By percent gain, the best-performing component is Hudson City Bancorp (HCBK 17.25, +1.18), +7.6%. The savings and loans firm reported better-than-expected quarterly earnings.
By percent loss, the worst performing component is Jones Apparel Group (JNY 10.04, -3.48), -25.7%. The retailer, which owns brands such as Nine West, cut its full year earnings outlook well below the consensus estimate.DJ30 -362.00 NASDAQ -59.57 SP500 -46.59 NASDAQ Adv/Vol/Dec 513/641 mln/1970 NYSE Adv/Vol/Dec 313/378 mln/2694
10:30 am : The major indices trade near recent session lows. Energy stocks (-9.2%) are taking a beating due to economic concerns and lower commodity prices.
Crude oil futures are down 4.0% to $75.50 per barrel, gasoline futures are down 4.5% to $1.79 per gallon and natural gas prices are down 2.9%.
Reported at 10:00 AM ET, business inventories in August rose by 0.3%, which was slightly less then the expected growth of 0.5%. Inventory levels rose by 0.6% in manufacturing, 0.8% in wholesalers and declined 0.6% in retail. Inventories are up 6.4% year-over-year. The data are adjusted for seasonal variations, but not for price changes.DJ30 -279.71 NASDAQ -39.18 SP500 -35.71 NASDAQ Adv/Vol/Dec 555/470 mln/1858 NYSE Adv/Vol/Dec 328/285 mln/2616
10:05 am : Stocks extend their opening declines. All ten sectors are posting a loss. Energy (-6.7%) is down the most, while the defensive-oriented consumer staples sector (-1.3%) is outperforming on a relative basis.
Quarterly earnings results were mostly better than expected, although some companies gave cautious outlooks.
Abbott Labs (ABT 54.55, -0.23), Coca-Cola (KO 46.37, +2.64), Intel (INTC 16.08, +0.15), CSX (CSX 44.00, -4.14) and State Street (STT 51.64, -4.92) all posted quarterly earnings growth that topped expectations.
Charles Schwab (SCHW 20.64, -0.33), JPMorgan Chase (JPM 41.22, +0.51), Marshall & IIsley (MI 18.04, -0.96) and Wells Fargo (WFC 33.60, +0.08) topped Wall Street's forecast, but posted year-over-year declines in earnings.
Genentech (DNA 80.66, +1.54) reported a year-over-year increase in earnings per share, but fell short of estimates. Delta Airlines (DAL 7.62, +0.27) swung to a loss, citing high fuel costs.
Crude oil prices are down 3.9% to $75.61 per barrel. The government's weekly energy report is delayed until Thursday due to Columbus Day last Monday. In addition, it will be released at 11:00 AM ET instead of the usual release time of 10:35 AM ET.DJ30 -233.85 NASDAQ -34.44 SP500 -31.08 NASDAQ Adv/Vol/Dec 557/273 mln/1736 NYSE Adv/Vol/Dec 336/177 mln/2523
09:35 am : Stocks decline more than 2% on the open after economic concerns were exacerbated by a disappointing retail sales report.
Consumers continue to curtail spending in the face of economic headwinds. Retail sales in September tumbled 1.2% month-over-month, the third consecutive monthly drop and largest decline in three years. Economists forecast a smaller drop of 0.7%.
The Producer Price Index, an inflation reading, fell 0.4% in September, helped by easing commodity prices. Excluding food and energy, PPI rose 0.4%.
The NY Empire Manufacturing Index, a regional manufacturing survey, declined 17.2 to -24.6 in October, which was worse than the expected reading of -10.0. This indicates manufacturing is contracting in the New York region. The index is at its lowest since data was first collected in July 2001.DJ30 -178.60 NASDAQ -32.55 SP500 -25.56
09:15 am : S&P futures vs fair value: -19.90. Nasdaq futures vs fair value: -24.30.
09:01 am : S&P futures vs fair value: -25.50. Nasdaq futures vs fair value: -27.80. Stocks futures trade near recently reached session lows. Charles Schwab (SCHW) reported better-than-expected earnings, as did regional bank bank Marshall & IIsley (MI). In overseas trading, Hong Kong's Hang Seng fell 5.0% and Japan's Nikkei rose 1.1%. France's CAC is down 3.7%, Germany's DAX is down 3.6% and London's FTSE has fallen 4.3%.
08:32 am : S&P futures vs fair value: -25.60. Nasdaq futures vs fair value: -29.80. Stock futures fall to fresh session lows and then extend their losses as retail sales and an inflation readings hits the wires. September retail sales fell 1.2% month-over-month (consensus -0.7%), marking the third consecutive decline as consumers curtail spending in the face of economic headwinds. Excluding autos, retail sales fell 0.6% (consensus -0.2%). The September Producer Price Index fell 0.4% month-over-month (consensus -0.4%), benefiting from easing commodity prices. Excluding food and energy, PPI rose 0.4% month-over-month (consensus +0.2%). Compared to last year, PPI is up 8.7% (consensus +8.6%) and PPI excluding food and energy is up 4.0% (consensus +3.8%). Crude Prices are down 4.4% to $75.17 per barrel, with prices hitting their lowest level since August 2007. Dollar Libor -- the rate which banks charge each other for short-term dollar loans -- fell modestly across all terms for the second straight day, indicating that credit markets are slowly improving.
08:00 am : S&P futures vs fair value: -11.80. Nasdaq futures vs fair value: -11.30. After some choppy trade, futures suggest a lower start to day. In earnings news, Coca-Cola (KO), CSX (CSX), Abbott Labs (ABT), Intel (INTC) and State Street (STT) all reported better-than-expected earnings growth. JPMorgan Chase (JPM) reported a loss of $0.06 per share before extraordinary gains, and earnings of $0.11 per share including items. Wells Fargo (WFC) posted earnings of $0.49 per share, which topped expectations by $0.08.
06:29 am : S&P futures vs fair value: -9.90. Nasdaq futures vs fair value: -7.50.
06:29 am : Nikkei...9547.4...+99.90...+1.10%. Hang Seng...15998.3...-834.50...-5.00%.
06:29 am : FTSE...4258.6...-135.60...-3.10%. DAX...5077.2...-121.90...-2.30%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
http://biz.yahoo.com/mu/update.html
4:30 pm : The stock market plunged the most since the crash of 1987 as disappointing retail sales data and credit concerns renewed economic fears. Specifically, the S&P 500 plunged 9.0%, settling near session lows.
Consumers continue to curtail spending in the face of economic headwinds. Retail sales in September tumbled 1.2% month-over-month, the third consecutive monthly drop and largest decline in three years. The decrease was larger than the expected drop of 0.7%. Sales are down 1.0% compared to last year, marking the first year-over-year decline since October 2002.
Separately, the Producer Price Index, an inflation reading, fell 0.4% in September due to a decrease in commodity prices. Excluding food and energy, PPI rose 0.4%, which was more than the expected increase of 0.2%.
Although credit markets are showing signs of improvement, there are concerns that a recovery will take longer than hoped for. Dollar Libor, which is the rate banks charge each other for short-term dollar loans, slightly declined across all terms for the second straight session, but remain at highly elevated states. This indicates banks are more willing to lend to each other, but are still showing extreme caution. In addition, there was a high demand for Treasuries as investors seek safety.
An afternoon speech from Fed Chairman Bernanke and the release of the Fed's Beige Book did not give the market any real surprises, but painted a sobering economic picture and indicated that a recovery will take time.
Economic concerns sparked broad-based selling, with 99% of the S&P 500 posting a loss and all ten of the economic sectors ending the day deep in the red.
The energy sector (-15.5%) was hit the hardest, falling in conjunction with energy commodities. Crude prices tumbled 5.9% to $74.03 per barrel on global slowdown concerns and a cut in OPEC's demand forecast. On a similar note, commodity prices as a whole fell 4.5%, resulting in a 12.1% decline in the materials sector.
Defensive oriented sectors consumer staples (-6.0%) and healthcare (-6.7%) outperformed on a relative basis, but still posted steep declines.
In earnings news, quarterly results were mostly better-than-expected, although several companies that posted upside results still came under selling pressure.
Some of the more notable names that topped expectations include Abbott Labs (ABT 53.40, -1.38) Coca-Cola (KO 44.19. +0.46), Intel (INTC 15.05, +0.88), JPMorgan Chase (JPM 38.34, -2.37) and Wells Fargo (WFC 32.76, -0.76).
The S&P 500 is now up only 1.0% this week after giving up the majority of Monday's massive 11.6% gain. The index is still up 8.1% from its multi-year intraday low reached last Friday.DJ30 -733.08 NASDAQ -150.68 NQ100 -8.8% R2K -9.5% SP400 -9.7% SP500 -90.17 NASDAQ Adv/Vol/Dec 369/2.54 bln/2401 NYSE Adv/Vol/Dec 340/1.68 bln/2848
3:30 pm : Another recovery attempt is met with selling pressure as the stock market posts a loss of nearly 7% going into the closing bell.
Market breadth is bearish. Decliners outpace advancers by more than 7-to-1 on the NYSE and by more than 5-to-1 on the Nasdaq. Volume is about average, but could be considered light given the scope of the move this session.
Tomorrow is packed with earnings releases, with 18 companies reporting after the close of this session and 48 reporting before the open on Thursday. Some of the bigger names include eBay (EBAY 15.74, -2.00), Citigroup (C 16.63, -1.99) and Merrill Lynch (MER 19.08, -2.27).DJ30 -529.43 NASDAQ -107.26 SP500 -68.21 NASDAQ Adv/Vol/Dec 454/1.95 bln/2299 NYSE Adv/Vol/Dec 390/1.08 bln/2785
3:00 pm : Stocks recover some ground and then selling pressure puts them back on the defensive. The S&P 500 is down roughly 6.5%, which is near its session low when it was down 7.3% at 2:15 PM ET.
St. Louis Fed President Bullard said the September retail sales report is signaling third quarter real GDP could be flat or even slightly negative, Reuters reports.DJ30 -515.70 NASDAQ -98.40 SP500 -64.51 NASDAQ Adv/Vol/Dec 439/1.77 bln/2300 NYSE Adv/Vol/Dec 384/989 mln/2782
2:30 pm : Stocks trade near recently reached session lows as traders digest the Fed's Beige Book, which is a collection of anecdotal economic information.
The Beige Book said that economic activity slowed in September, and credit tightened throughout the country. Residential real estate remains weak and commercial real estate is slowing in many districts. On the positive side, inflationary pressures moderated a bit in September.DJ30 -497.16 NASDAQ -100.21 SP500 -64.59 NASDAQ Adv/Vol/Dec 404/1.58 bln/2319 NYSE Adv/Vol/Dec 358/899 mln/2799
2:00 pm : Losses remain heavy in the major indices. The Dow, Nasdaq, and S&P 500 have all fallen another leg lower to new session lows.
Market breadth remains bearish. 98% of the companies in the S&P 500 are trading with losses, while 29 of the 30 Dow components are in the red.
Coca-Cola (KO 45.06, +1.33) is the only Dow component making gains. Coke announced this morning upbeat earnings per share results for its latest quarter. It was the eighth straight quarter in which Coke logged double-digit earnings per share growth, and at least as many in which the results surpassed the consensus estimate.
Just hitting the wires, the Fed's Beige Book indicated a weakening of economic activity across all 12 districts.DJ30 -508.87 NASDAQ -102.84 SP500 -66.63 NASDAQ Adv/Vol/Dec 421/1.44 bln/2287 NYSE Adv/Vol/Dec 350/822 mln/2793
1:30 pm : The stock market slides to a fresh session low. The S&P 500 is down more than 5% this session, but is still up 4.9% this week thanks to the 11.6% surge on Monday.
The recent downturn has been broad-based and there does not appear to be a specific catalyst for the decline.
Meanwhile, buying interest picks up in Treasuries and the dollar (+0.9%).
The Brazilian Bovespa stock market tumbled to a 10% loss, prompting a halt in trading.DJ30 -429.78 NASDAQ -82.91 SP500 -55.76 NASDAQ Adv/Vol/Dec 461/1.25 bln/2227 NYSE Adv/Vol/Dec 380/726 mln/2742
1:00 pm : The S&P 500 recovers from session lows, but is still down roughly 4%.
Fed Chairman Bernanke has completed his prepared text and is currently participating in an question and answer session at the Economic Club of New York. When asked about the similarities to the Great Depression, Bernanke said the current situation is not remotely like that of the 1930s, noting that the government is not making the same mistakes.DJ30 -286.49 NASDAQ -59.18 SP500 -39.20 NASDAQ Adv/Vol/Dec 524/1.13 bln/2117 NYSE Adv/Vol/Dec 399/661 mln/2699
12:30 pm : Stocks extend their declines as Fed Chairman Bernanke speaks at the Economic Club of New York.
In Bernanke's prepared text, he said that during past economic crises the government took too long to act, but during the current turmoil the government acted swiftly, which will help to restore market functioning quicker. Despite the swift action, Bernanke noted that credit markets "will take some time to unfreeze" and the economic recovery "will not happen right away."DJ30 -379.20 NASDAQ -68.46 SP500 -49.02 NASDAQ Adv/Vol/Dec 502/1.02 bln/2126 NYSE Adv/Vol/Dec 332/600 mln/2740
12:00 pm : Stocks are down more than 4% at midday after a weak retail sales report added to overall economic worries.
Consumers continue to curtail spending in the face of economic headwinds. Retail sales in September tumbled 1.2% month-over-month, the third consecutive monthly drop and largest decline in three years. The decrease was larger than the expected drop of 0.7%. Sales are down 1.0% compared to last year, marking the first year-over-year decline since October 2002.
The disappointing data prompted a broad-based decline in the stock market, as all ten sectors post a loss at midday.
The energy sector (-9.5%) is the main laggard in conjunction with a retreat in energy prices. Crude oil prices are down 4.2% to $75.38, which is the lowest level in more than a year.
The tech sector (-2.9%) is outperforming on a relative basis thanks to a better-than-expected 13% year-over-year third quarter earnings per growth at Intel (INTC 16.21, +0.21). On a similar note, the defensive-oriented consumer staples sector (-2.2%) is outperforming on a relative basis after Coca-Cola (KO 45.90, +2.20) posted 17% third quarter earnings per share growth that topped estimates.
In other earnings news, Abbott Labs (ABT 54.83, +0.05), CSX (CSX 43.68, -4.46) and State Street (STT 49.82, -6.87) all posted quarterly earnings growth that topped expectations.
Charles Schwab (SCHW 20.68, -0.27), JPMorgan Chase (JPM 40.58, +0.13), Marshall & IIsley (MI 18.23, -0.77) and Wells Fargo (WFC 34.72, +1.20) saw earnings per share slip, but managed to exceed Wall Street's forecast.
Genentech's (DNA 83.19, +4.07) profit growth fell short of estimates and Delta Airlines (DAL 7.83, +0.48) swung to an unexpected loss.
Although the retail sales data garnered most of the market's attention, there were several other economic reports.
According to a regional survey, manufacturing in the New York region contracted by the most since 2001, which is as far as the survey's data go back. The NY Empire Manufacturing Index declined 17.2 to -24.6 in October, which was worse than the expected reading of -10.0.
The Producer Price Index, an inflation reading, fell 0.4% in September, helped by easing commodity prices. Excluding food and energy, PPI rose 0.4%.
Business inventories in August rose by 0.3%, which was slightly less then the expected growth of 0.5%. Inventory levels rose by 0.6% in manufacturing, 0.8% in wholesalers and declined 0.6% in retail. Inventories are up 6.4% year-over-year. The data are adjusted for seasonal variations, but not for price changes.
Fed Chairman Bernanke is set to speak at the Economic Club of New York in about 15 minutes.DJ30 -328.07 NASDAQ -57.75 SP500 -42.97 NASDAQ Adv/Vol/Dec 542/911 mln/2053 NYSE Adv/Vol/Dec 333/537 mln/2729
11:30 am : A recovery attempt is met with selling pressure, sending the major indices to session lows. The S&P 500 is down 5.0% as the energy sector tumbles 10.0% and the materials sector falls 7.4%
The dollar is up 0.5% as it rallies 2.1% against the Canadian dollar and 2.5% against the Swedish Krona.
DJ30 -387.42 NASDAQ -63.23 SP500 -49.80 NASDAQ Adv/Vol/Dec 526/790 mln/2034 NYSE Adv/Vol/Dec 299/467 mln/2753
11:00 am : The S&P 500 falls to a loss of more than 4%. Weakness is broad-based.
Within the S&P 500, only 25 stocks are in positive territory. By percent gain, the best-performing component is Hudson City Bancorp (HCBK 17.25, +1.18), +7.6%. The savings and loans firm reported better-than-expected quarterly earnings.
By percent loss, the worst performing component is Jones Apparel Group (JNY 10.04, -3.48), -25.7%. The retailer, which owns brands such as Nine West, cut its full year earnings outlook well below the consensus estimate.DJ30 -362.00 NASDAQ -59.57 SP500 -46.59 NASDAQ Adv/Vol/Dec 513/641 mln/1970 NYSE Adv/Vol/Dec 313/378 mln/2694
10:30 am : The major indices trade near recent session lows. Energy stocks (-9.2%) are taking a beating due to economic concerns and lower commodity prices.
Crude oil futures are down 4.0% to $75.50 per barrel, gasoline futures are down 4.5% to $1.79 per gallon and natural gas prices are down 2.9%.
Reported at 10:00 AM ET, business inventories in August rose by 0.3%, which was slightly less then the expected growth of 0.5%. Inventory levels rose by 0.6% in manufacturing, 0.8% in wholesalers and declined 0.6% in retail. Inventories are up 6.4% year-over-year. The data are adjusted for seasonal variations, but not for price changes.DJ30 -279.71 NASDAQ -39.18 SP500 -35.71 NASDAQ Adv/Vol/Dec 555/470 mln/1858 NYSE Adv/Vol/Dec 328/285 mln/2616
10:05 am : Stocks extend their opening declines. All ten sectors are posting a loss. Energy (-6.7%) is down the most, while the defensive-oriented consumer staples sector (-1.3%) is outperforming on a relative basis.
Quarterly earnings results were mostly better than expected, although some companies gave cautious outlooks.
Abbott Labs (ABT 54.55, -0.23), Coca-Cola (KO 46.37, +2.64), Intel (INTC 16.08, +0.15), CSX (CSX 44.00, -4.14) and State Street (STT 51.64, -4.92) all posted quarterly earnings growth that topped expectations.
Charles Schwab (SCHW 20.64, -0.33), JPMorgan Chase (JPM 41.22, +0.51), Marshall & IIsley (MI 18.04, -0.96) and Wells Fargo (WFC 33.60, +0.08) topped Wall Street's forecast, but posted year-over-year declines in earnings.
Genentech (DNA 80.66, +1.54) reported a year-over-year increase in earnings per share, but fell short of estimates. Delta Airlines (DAL 7.62, +0.27) swung to a loss, citing high fuel costs.
Crude oil prices are down 3.9% to $75.61 per barrel. The government's weekly energy report is delayed until Thursday due to Columbus Day last Monday. In addition, it will be released at 11:00 AM ET instead of the usual release time of 10:35 AM ET.DJ30 -233.85 NASDAQ -34.44 SP500 -31.08 NASDAQ Adv/Vol/Dec 557/273 mln/1736 NYSE Adv/Vol/Dec 336/177 mln/2523
09:35 am : Stocks decline more than 2% on the open after economic concerns were exacerbated by a disappointing retail sales report.
Consumers continue to curtail spending in the face of economic headwinds. Retail sales in September tumbled 1.2% month-over-month, the third consecutive monthly drop and largest decline in three years. Economists forecast a smaller drop of 0.7%.
The Producer Price Index, an inflation reading, fell 0.4% in September, helped by easing commodity prices. Excluding food and energy, PPI rose 0.4%.
The NY Empire Manufacturing Index, a regional manufacturing survey, declined 17.2 to -24.6 in October, which was worse than the expected reading of -10.0. This indicates manufacturing is contracting in the New York region. The index is at its lowest since data was first collected in July 2001.DJ30 -178.60 NASDAQ -32.55 SP500 -25.56
09:15 am : S&P futures vs fair value: -19.90. Nasdaq futures vs fair value: -24.30.
09:01 am : S&P futures vs fair value: -25.50. Nasdaq futures vs fair value: -27.80. Stocks futures trade near recently reached session lows. Charles Schwab (SCHW) reported better-than-expected earnings, as did regional bank bank Marshall & IIsley (MI). In overseas trading, Hong Kong's Hang Seng fell 5.0% and Japan's Nikkei rose 1.1%. France's CAC is down 3.7%, Germany's DAX is down 3.6% and London's FTSE has fallen 4.3%.
08:32 am : S&P futures vs fair value: -25.60. Nasdaq futures vs fair value: -29.80. Stock futures fall to fresh session lows and then extend their losses as retail sales and an inflation readings hits the wires. September retail sales fell 1.2% month-over-month (consensus -0.7%), marking the third consecutive decline as consumers curtail spending in the face of economic headwinds. Excluding autos, retail sales fell 0.6% (consensus -0.2%). The September Producer Price Index fell 0.4% month-over-month (consensus -0.4%), benefiting from easing commodity prices. Excluding food and energy, PPI rose 0.4% month-over-month (consensus +0.2%). Compared to last year, PPI is up 8.7% (consensus +8.6%) and PPI excluding food and energy is up 4.0% (consensus +3.8%). Crude Prices are down 4.4% to $75.17 per barrel, with prices hitting their lowest level since August 2007. Dollar Libor -- the rate which banks charge each other for short-term dollar loans -- fell modestly across all terms for the second straight day, indicating that credit markets are slowly improving.
08:00 am : S&P futures vs fair value: -11.80. Nasdaq futures vs fair value: -11.30. After some choppy trade, futures suggest a lower start to day. In earnings news, Coca-Cola (KO), CSX (CSX), Abbott Labs (ABT), Intel (INTC) and State Street (STT) all reported better-than-expected earnings growth. JPMorgan Chase (JPM) reported a loss of $0.06 per share before extraordinary gains, and earnings of $0.11 per share including items. Wells Fargo (WFC) posted earnings of $0.49 per share, which topped expectations by $0.08.
06:29 am : S&P futures vs fair value: -9.90. Nasdaq futures vs fair value: -7.50.
06:29 am : Nikkei...9547.4...+99.90...+1.10%. Hang Seng...15998.3...-834.50...-5.00%.
06:29 am : FTSE...4258.6...-135.60...-3.10%. DAX...5077.2...-121.90...-2.30%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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