AI
Tuesday, October 21, 2008 6:47:37 PM
Market Update 081021
http://biz.yahoo.com/mu/update.html
4:25 pm : The stock market posted a large loss on Tuesday as several companies posted quarterly earnings misses and cautious outlooks that overshadowed signs of improvement in the credit markets. In addition, investors digested news the U.S. government plans to take additional steps to shore up money market mutual funds.
The S&P 500 spent the entirety of the session in negative territory, although it did see large swings. The Index traded near the unchanged mark with an hour of trade left, but a surge of selling interest sent it to session lows to settle with a loss of 3.1%.
It was extremely busy session on the earnings front. Results were mixed -- of the 77 companies that reported earnings after yesterday's close and before this session's open, 52% topped estimates, 35% missed and 13% were in-line. Outlooks were cautious -- of the 49 companies that issued guidance, 45% were negative, 30% were in-line, 21% were mixed and only 3% were positive.
Some notable names that topped third quarter earnings estimates include 3M (MMM 60.02, +2.51), American Express (AXP 26.33, +1.98), DuPont (DD 33.32, -2.85), Pfizer (PFE 17.35, +0.01) and Lockheed Martin (LMT 84.43, -8.79). DuPont and Lockheed, however, issued downside earnings guidance for their fourth quarter and full year.
The more widely held companies that missed estimates include BlackRock (BLK 129.24, -13.98), Caterpillar (CAT 38.84, -2.06), Freeport-McMoRan (FCX 32.81, -3.91) and Texas Instruments (TXN 16.85, -1.13). Texas Instruments also gave a downside fourth quarter earnings outlook, citing a slowdown in orders.
With regard to the government's latest effort, the Fed will buy commercial paper -- which is short-term corporate debt that many businesses rely on -- from money market mutual funds. The Fed said it created the facility because money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests and meet portfolio rebalancing needs. The Fed had already announced plans to buy commercial paper directly from companies.
While the Fed needing to shore up money market funds shows that the financial markets remain considerably strained, there continue to be signs of improvement. The rates banks charge each other for short-term dollar loans, measured by Libor, decreased across all terms.
In the end all ten sectors posted a decline in broad-based weakness. Volume was on the light side with 1.16 billion shares exchanging hands on the NYSE, which is short of the one-year average of 1.49 billion.
The tech sector (-5.6%) posted a large decline due to the 6.3% drop in Texas Instruments. An earnings warning from Sun Microsystems (JAVA 4.78, -1.00) also weighed on the sector.
The energy sector fell 4.3% as crude prices dropped 4.5% to $70.89 per barrel. The drop in crude prices was fueled by global economic concerns and a 1.5% surge in the dollar.
The materials sector declined 5.7% after copper producer Freeport McMoRan plunged 11%.
The financial sector outperformed on a relative basis with a loss of 1.8%. Strength in American Express helped offset weakness in BlackRock and Citigroup (C 14.17, -0.92). DJ30 -231.77 NASDAQ -73.35 SP500 -30.35 NASDAQ Adv/Vol/Dec 745/2.15 bln/2029 NYSE Adv/Vol/Dec 925/1.16 bln/2182
3:30 pm : After trading in a tight range near session highs, the major indices go on the retreat. Losses are substantial, but are still above the worst levels of the day. The tech sector (-5.4%) is acting as the main drag.
Earnings will be in focus tomorrow. After this session's close, Apple (AAPL 92.31, -6.11), Norfolk Southern (NSC 54.48, -1.38), VMWare (VMW 19.58, -1.06) and Yahoo! (YHOO 12.22, -0.64) report earnings. Wednesday before the open, AT&T (T 26.05, -0.94), Boeing (BA 46.45, -0.26), ConocoPhillips (COP 54.78, -2.95), McDonald's (MCD 55.83, -1.01), Merck (MRK 30.39, -0.61) are a few of the big names reporting earnings.DJ30 -139.54 NASDAQ -51.60 SP500 -18.78 NASDAQ Adv/Vol/Dec 889/1.71 bln/1876 NYSE Adv/Vol/Dec 1071/879 mln/2022
3:00 pm : The Dow recovers all the way back to the unchanged mark and then dips back into the red to post a modest loss.
The Dow is outperforming its counterparts, which stems from strong gains in 3M (MMM 61.28, +3.77) and American Express (AXP 26.84, +2.47), both of which posted better-than-expected earnings. Their strength is more than offsetting weakness in Hewlett-Packard (HPQ 38.57, -2.45) and DuPont (DD 34.15, -2.02).DJ30 -58.66 NASDAQ -35.08 SP500 -9.54 NASDAQ Adv/Vol/Dec 1027/1.51 bln/1706 NYSE Adv/Vol/Dec 1268/783 mln/1826
2:30 pm : Buying interest, led by the financial sector, helps the major indices pare more than half their losses. The S&P 500 is down about 1%.
The financial sector (+0.6%) currently stands alone in positive territory. Strength in consumer finance (+5.0%), regional banks (+2.9%) and diversified banks (+2.7%) is offsetting weakness in BlackRock (BLK 129.57, -13.65) and Citigroup (C 14.50, -0.59).DJ30 -46.19 NASDAQ -35.41 SP500 -9.44 NASDAQ Adv/Vol/Dec 956/1.37 bln/1764 NYSE Adv/Vol/Dec 1173/713 mln/1915
2:00 pm : The S&P 500's recovery effort is met with selling pressure, sending the index back on the defense.
Market breadth leans negative, with decliners outpacing advancers by 9-to-4 on the NYSE and by 12-to-5 on the Nasdaq. Volume is about average.DJ30 -182.15 NASDAQ -55.16 SP500 -23.82 NASDAQ Adv/Vol/Dec 789/1.24 bln/1899 NYSE Adv/Vol/Dec 950/647 mln/2119
1:25 pm : Stocks hit session lows and then recover more than a percentage point. The Dow, Nasdaq and S&P 500 traded as low as 2.8%, 3.7% and 3.2%, respectively.
In foreign trading, Argentine bond yields shot up to 24.8% and its stock market fell 13.7% due to fears that its government will nationalize pension funds, Bloomberg.com reports. Argentina said it will unveil a new pension fund plan at 4:00 PM ET, according to the report.DJ30 -158.42 NASDAQ -47.55 SP500 -20.45 NASDAQ Adv/Vol/Dec 767/1.13 bln/1894 NYSE Adv/Vol/Dec 899/592 mln/2161
12:55 pm : The major indices are trading at or near session lows.
Of the 132 S&P 500 industry groups, only 14 are posting a gain. The largest gains are seen by apparel & accessories (+3.9%), office REITs (+2.1%) and drug retail (+2.1%). The groups posting the largest declines are industrial REITs (-10.2%), diversified metals & mining (-7.7%) and home entertainment software (-8.6%).DJ30 -232.65 NASDAQ -60.37 SP500 -28.01 NASDAQ Adv/Vol/Dec 687/1.02 bln/1968 NYSE Adv/Vol/Dec 790/538 mln/2262
12:30 pm : The S&P 500 is near its session low with a loss of roughly 2.5%.
Citigroup (C 13.79, -1.30) is under pressure, falling 8.6%. Goldman Sachs restarted Citi with a Sell and added Citi to its Conviction Sell list this morning, MarketWatch.com reports. Goldman said Citi may not be able to report a profit until the second half of 2009, according to the report. Conversely, Goldman recommended the purchase of Morgan Stanley (MS 20.12, +0.35).
The financial sector is down 1.2%.DJ30 -195.65 NASDAQ -52.03 SP500 -24.35 NASDAQ Adv/Vol/Dec 702/914 mln/1928 NYSE Adv/Vol/Dec 829/489 mln/2216
12:05 pm : Stocks are posting steep declines as concern about corporate earnings offsets some signs of improvement in credit markets. In addition, the Fed announced another plan to shore up money markets, but investors showed some concerns that such a move was needed.
At midday, the S&P 500 is down more than 2%, recently falling to session lows due to broad-based weakness.
It has been an extremely busy session on the earnings front, including five Dow components reporting. Results have been mixed -- of the 77 companies that reported earnings before the open and after yesterday's close, 52% topped estimates, 35% missed and 13% were in-line. Meanwhile, outlooks are cautious -- of the 49 companies that issued guidance, 45% were negative, 30% were in-line, 21% were mixed and only 3% were positive.
Some notable names that topped third quarter earnings estimates include 3M (MMM 59.18, +1.67), American Express (AXP 25.43, +1.10), DuPont (DD 33.82, -2.36), Pfizer (PFE 17.61, +0.27) and Lockheed Martin (LMT 86.22, -7.00). DuPont, however, issued downside earnings guidance for its fourth quarter and full year.
The more widely held companies that missed estimates include BlackRock (BLK 130.60, -12.62), Caterpillar (CAT 38.73, -2.17), Freeport-McMoRan (FCX 33.01, -3.71) and Texas Instruments (TXN 16.39, -1.59). Texas Instruments also gave a downside fourth quarter earnings outlook, citing a slowdown in orders.
With regard to the government's latest effort, the Fed will buy commercial paper -- which is short-term corporate debt that many businesses rely on -- from money market mutual funds. The Fed said it created the facility because money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests and meet portfolio rebalancing needs. The Fed had already announced plans to buy commercial paper directly from companies.
While the Fed needing to shore up money markets shows that the financial markets remain considerably strained, there continue to be some improvements. The rates banks charge each other for short-term dollar loans, measured by Libor, decreased across all terms.
Commodities are under selling pressure due to global growth concerns and a stronger dollar (+1.2%). Crude oil prices are down 5.4% to $70.24 per barrel and commodities as a whole are down 1.8%.
The weakness in crude prices is prompting a 5.6% decline in the energy sector. Weakness in other commodities is resulting in a 4.6% decline in the materials sector, with selling interest compounded by the disappointing earnings from copper producer Freeport-McMoRan.
The tech sector (-4.9%) is also a laggard as Texas Instruments plunges 9%.
The industrials sector (-1.4%) is outperforming on a relative basis as 3M gains 4%. Defensive oriented consumer staples (-0.8%) and healthcare (-0.8%) are also outperforming on a relative basis. The healthcare sector is benefiting from strength in Pfizer, which has a 9.9% weighting within the sector.DJ30 -177.37 NASDAQ -46.72 SP500 -22.72 NASDAQ Adv/Vol/Dec 686/827 mln/1906 NYSE Adv/Vol/Dec 807/444 mln/2213
11:30 am : The White House said it is not proposing a second stimulus package, but is open to ideas, Reuters reports. Yesterday, Fed Chairman Bernanke said it would be appropriate for Congress to consider a second stimulus considering that the U.S. is likely to face slow growth in the coming quarters.
The S&P 500 is down more than 1%, but still remains above the worst level of the session.
Crude oil prices make new lows, falling 5.1% to $70.43 per barrel. Crude prices are down 2% this week despite OPEC calling an emergency meeting for Friday. The cartel is expected to cut output due to the 52% plunge in oil prices in the past three months.
As stocks weaken, Treasuries enjoy some buying interest. The 10-year note is up 21 ticks to 3.76%.DJ30 -87.18 NASDAQ -26.48 SP500 -11.65 NASDAQ Adv/Vol/Dec 856/642 mln/1696 NYSE Adv/Vol/Dec 995/362 mln/1963
11:00 am : Stocks recovery attempt ends as selling pressure sends the major indices back down in the middle of this session's range.
The energy sector is a laggard (-4.3%) as crude oil prices fall 4.7% to $71.83 per barrel and RBOB gasoline prices decline 3.9% to $1.63 per gallon.
On a similar note, the materials sector is down 3.0% as commodities as whole fall 1.3%. Copper producer Freeport-McMoRan (FCX 33.80, -2.95) reported a larger than expected drop in third quarter earnings and revenue due to weakened economic conditions and lower copper prices.DJ30 -76.70 NASDAQ -21.15 SP500 -10.54 NASDAQ Adv/Vol/Dec 887/520 mln/1603 NYSE Adv/Vol/Dec 1011/307 mln/1920
10:30 am : Stocks recover the majority of their losses in a mostly broad-based move led by financials (+0.6%). The Dow briefly hit positive territory before falling to a slight loss.
Consumer finance is up 3.0% thanks to a smaller-than-expected drop in third quarter earnings at American Express (AXP 25.47, +1.12).
Regional banks (+1.3%), saw a lift after CNBC's David Faber said he is hearing there are going to be deals between regional banks, noting National City (NCC 3.08, +0.16). The regional bank group opened with a 3.1% loss after National City, KeyCorp (KEY 10.62, +0.88) and Fifth Third Bancorp (FITB 11.81, -0.43) all posted third quarter losses. Financials as a whole were down 1.7% at the open.
The S&P 500 is down 0.4% after opening with a 1.8% loss. Six of the ten sectors are currently posting a gain.DJ30 -21.82 NASDAQ -9.30 SP500 -3.98 NASDAQ Adv/Vol/Dec 993/381 mln/1403 NYSE Adv/Vol/Dec 1144/232 mln/1723
10:00 am : The stock market remains in the red as it trades slightly above opening lows. All ten sectors post a loss.
The tech sector (-3.7%) is under pressure this morning. Semiconductor giant Texas Instruments (TXN 16.39, -1.59) posted a larger-than-expected 17% decline in earnings per share and lowered its fourth quarter earnings outlook, citing weak orders. SanDisk (SNDK 14.53, +0.11), which manufactures flash memory, posted a larger-than-expected loss as the company had -17.5% non-GAAP gross margins due to the sharp drops in flash memory prices as industry oversupply remains high and demand slows.
In addition, DigiTimes reports that the chairman of Powerchip Semiconductor said that DRAM (memory used in computers) pricing will not rebound until the worldwide economy improves. Micron (MU 4.39, -0.06) is a major producer of DRAM chips.DJ30 -85.86 NASDAQ -24.50 SP500 -13.30 NASDAQ Adv/Vol/Dec 744/193 mln/1541 NYSE Adv/Vol/Dec 633/136 mln/2138
09:35 am : The volatile action continues as the stock market falls 1.8% on the open after surging nearly 5% in the previous session. Selling interest is fueled this morning by some earnings misses and negative outlooks.
While credit markets continue to show improvements, there are still some negative signs. On the positive side, interbank lending rates declined once again and the TED spread fell 37 basis points to 2.61% -- the seventh consecutive drop.
However, the Fed created a new facility to improve liquidity in money market investors, which is a clear sign that the financial market remains stressed. The Fed said it created the facility because money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests and meet portfolio rebalancing needs.
Meanwhile, France said it plans to inject roughly $14 billion in six of its largest banks.DJ30 -133.17 NASDAQ -32.81 SP500 -17.50
09:15 am : S&P futures vs fair value: -18.90. Nasdaq futures vs fair value: -33.50. Stocks futures see some choppy action and then extend their declines on news the Fed is again working to shore up the money market industry. The Federal Reserve announced a new facility to improve liquidity for U.S. money markets investors, citing that money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests and meet portfolio rebalancing needs. Separately, the Bank of Canada cuts its benchmark lending rate by 25 basis points to 2.25%, which was a smaller ease than economists had forecast, Bloomberg reports.
08:56 am : S&P futures vs fair value: -14.90. Nasdaq futures vs fair value: -31.00. Stock futures fall to session lows.
08:33 am : S&P futures vs fair value: -11.90. Nasdaq futures vs fair value: -26.50. A lower start is expected as S&P 500 and Nasdaq 100 futures trade near session lows. Kirk Kerkorian's Tracinda plans to reduce its holdings of Ford (F) due to value it sees in gaming and hospitality and the oil and gas industries. It has sold 7.3 million shares of Ford in the open market for an average price of $2.43 per share and plans to further reduce its Ford holdings, including the possibility of the sale of all its 133,500,000 shares, or 6.1% stake. Ford is down 2.6% in premarket trading. In commodity trading, oil prices are down 2.3% to $72.58 per barrel and gold is down 1.4% to $779.20 per ounce. The dollar is up 0.8% as it hits a fresh 52-week high.
08:10 am : S&P futures vs fair value: -9.90. Nasdaq futures vs fair value: -23.00. Futures suggest a lower open on what has been a very busy day of third quarter earnings reports. With regard to Dow components, Pfizer (PFE) and 3M (MMM) posted a larger-than-expected increase in earnings per share. American Express (AXP) saw earnings decline, but its results topped expectations. DuPont (DD) posted upside results for its latest quarter, but issued downside guidance. Caterpillar (CAT) slightly missed estimates. In other earnings news, Lockheed Martin (LMT) and Schering-Plough (SGP) topped expectations. Coach (COH) reported in-line earnings. Biogen (BIIB) posted upside results for its latest quarter, but issued downside guidance for fiscal year 2008. Texas Instruments (TXN) reported a larger-than-expected drop in earnings per share and gave a downside earnings estimate for the fourth quarter. SanDisk (SNDK) reported a larger-than-expected loss. BlackRock (BLK) and US Bancorp (USB) reported earnings that missed estimates, although it is not clear if they are comparable. Separately, more overseas governments have moved to shore up the financial system. France plans to purchase roughly $14 billion in debt from six of its largest banks. Credit markets continue to show improvement with Libor decreasing across all terms and the TED spread falling 36 basis points to 2.62% -- its seventh consecutive decline.
06:27 am : S&P futures vs fair value: -2.60. Nasdaq futures vs fair value: -17.80.
06:27 am : Nikkei...9306.25...+300.70...+3.30%. Hang Seng...15041.17...-281.80...-1.80%.
06:27 am : FTSE...4323.98...+41.30...+0.90%. DAX...4889.62...+54.60...+1.10%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
http://biz.yahoo.com/mu/update.html
4:25 pm : The stock market posted a large loss on Tuesday as several companies posted quarterly earnings misses and cautious outlooks that overshadowed signs of improvement in the credit markets. In addition, investors digested news the U.S. government plans to take additional steps to shore up money market mutual funds.
The S&P 500 spent the entirety of the session in negative territory, although it did see large swings. The Index traded near the unchanged mark with an hour of trade left, but a surge of selling interest sent it to session lows to settle with a loss of 3.1%.
It was extremely busy session on the earnings front. Results were mixed -- of the 77 companies that reported earnings after yesterday's close and before this session's open, 52% topped estimates, 35% missed and 13% were in-line. Outlooks were cautious -- of the 49 companies that issued guidance, 45% were negative, 30% were in-line, 21% were mixed and only 3% were positive.
Some notable names that topped third quarter earnings estimates include 3M (MMM 60.02, +2.51), American Express (AXP 26.33, +1.98), DuPont (DD 33.32, -2.85), Pfizer (PFE 17.35, +0.01) and Lockheed Martin (LMT 84.43, -8.79). DuPont and Lockheed, however, issued downside earnings guidance for their fourth quarter and full year.
The more widely held companies that missed estimates include BlackRock (BLK 129.24, -13.98), Caterpillar (CAT 38.84, -2.06), Freeport-McMoRan (FCX 32.81, -3.91) and Texas Instruments (TXN 16.85, -1.13). Texas Instruments also gave a downside fourth quarter earnings outlook, citing a slowdown in orders.
With regard to the government's latest effort, the Fed will buy commercial paper -- which is short-term corporate debt that many businesses rely on -- from money market mutual funds. The Fed said it created the facility because money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests and meet portfolio rebalancing needs. The Fed had already announced plans to buy commercial paper directly from companies.
While the Fed needing to shore up money market funds shows that the financial markets remain considerably strained, there continue to be signs of improvement. The rates banks charge each other for short-term dollar loans, measured by Libor, decreased across all terms.
In the end all ten sectors posted a decline in broad-based weakness. Volume was on the light side with 1.16 billion shares exchanging hands on the NYSE, which is short of the one-year average of 1.49 billion.
The tech sector (-5.6%) posted a large decline due to the 6.3% drop in Texas Instruments. An earnings warning from Sun Microsystems (JAVA 4.78, -1.00) also weighed on the sector.
The energy sector fell 4.3% as crude prices dropped 4.5% to $70.89 per barrel. The drop in crude prices was fueled by global economic concerns and a 1.5% surge in the dollar.
The materials sector declined 5.7% after copper producer Freeport McMoRan plunged 11%.
The financial sector outperformed on a relative basis with a loss of 1.8%. Strength in American Express helped offset weakness in BlackRock and Citigroup (C 14.17, -0.92). DJ30 -231.77 NASDAQ -73.35 SP500 -30.35 NASDAQ Adv/Vol/Dec 745/2.15 bln/2029 NYSE Adv/Vol/Dec 925/1.16 bln/2182
3:30 pm : After trading in a tight range near session highs, the major indices go on the retreat. Losses are substantial, but are still above the worst levels of the day. The tech sector (-5.4%) is acting as the main drag.
Earnings will be in focus tomorrow. After this session's close, Apple (AAPL 92.31, -6.11), Norfolk Southern (NSC 54.48, -1.38), VMWare (VMW 19.58, -1.06) and Yahoo! (YHOO 12.22, -0.64) report earnings. Wednesday before the open, AT&T (T 26.05, -0.94), Boeing (BA 46.45, -0.26), ConocoPhillips (COP 54.78, -2.95), McDonald's (MCD 55.83, -1.01), Merck (MRK 30.39, -0.61) are a few of the big names reporting earnings.DJ30 -139.54 NASDAQ -51.60 SP500 -18.78 NASDAQ Adv/Vol/Dec 889/1.71 bln/1876 NYSE Adv/Vol/Dec 1071/879 mln/2022
3:00 pm : The Dow recovers all the way back to the unchanged mark and then dips back into the red to post a modest loss.
The Dow is outperforming its counterparts, which stems from strong gains in 3M (MMM 61.28, +3.77) and American Express (AXP 26.84, +2.47), both of which posted better-than-expected earnings. Their strength is more than offsetting weakness in Hewlett-Packard (HPQ 38.57, -2.45) and DuPont (DD 34.15, -2.02).DJ30 -58.66 NASDAQ -35.08 SP500 -9.54 NASDAQ Adv/Vol/Dec 1027/1.51 bln/1706 NYSE Adv/Vol/Dec 1268/783 mln/1826
2:30 pm : Buying interest, led by the financial sector, helps the major indices pare more than half their losses. The S&P 500 is down about 1%.
The financial sector (+0.6%) currently stands alone in positive territory. Strength in consumer finance (+5.0%), regional banks (+2.9%) and diversified banks (+2.7%) is offsetting weakness in BlackRock (BLK 129.57, -13.65) and Citigroup (C 14.50, -0.59).DJ30 -46.19 NASDAQ -35.41 SP500 -9.44 NASDAQ Adv/Vol/Dec 956/1.37 bln/1764 NYSE Adv/Vol/Dec 1173/713 mln/1915
2:00 pm : The S&P 500's recovery effort is met with selling pressure, sending the index back on the defense.
Market breadth leans negative, with decliners outpacing advancers by 9-to-4 on the NYSE and by 12-to-5 on the Nasdaq. Volume is about average.DJ30 -182.15 NASDAQ -55.16 SP500 -23.82 NASDAQ Adv/Vol/Dec 789/1.24 bln/1899 NYSE Adv/Vol/Dec 950/647 mln/2119
1:25 pm : Stocks hit session lows and then recover more than a percentage point. The Dow, Nasdaq and S&P 500 traded as low as 2.8%, 3.7% and 3.2%, respectively.
In foreign trading, Argentine bond yields shot up to 24.8% and its stock market fell 13.7% due to fears that its government will nationalize pension funds, Bloomberg.com reports. Argentina said it will unveil a new pension fund plan at 4:00 PM ET, according to the report.DJ30 -158.42 NASDAQ -47.55 SP500 -20.45 NASDAQ Adv/Vol/Dec 767/1.13 bln/1894 NYSE Adv/Vol/Dec 899/592 mln/2161
12:55 pm : The major indices are trading at or near session lows.
Of the 132 S&P 500 industry groups, only 14 are posting a gain. The largest gains are seen by apparel & accessories (+3.9%), office REITs (+2.1%) and drug retail (+2.1%). The groups posting the largest declines are industrial REITs (-10.2%), diversified metals & mining (-7.7%) and home entertainment software (-8.6%).DJ30 -232.65 NASDAQ -60.37 SP500 -28.01 NASDAQ Adv/Vol/Dec 687/1.02 bln/1968 NYSE Adv/Vol/Dec 790/538 mln/2262
12:30 pm : The S&P 500 is near its session low with a loss of roughly 2.5%.
Citigroup (C 13.79, -1.30) is under pressure, falling 8.6%. Goldman Sachs restarted Citi with a Sell and added Citi to its Conviction Sell list this morning, MarketWatch.com reports. Goldman said Citi may not be able to report a profit until the second half of 2009, according to the report. Conversely, Goldman recommended the purchase of Morgan Stanley (MS 20.12, +0.35).
The financial sector is down 1.2%.DJ30 -195.65 NASDAQ -52.03 SP500 -24.35 NASDAQ Adv/Vol/Dec 702/914 mln/1928 NYSE Adv/Vol/Dec 829/489 mln/2216
12:05 pm : Stocks are posting steep declines as concern about corporate earnings offsets some signs of improvement in credit markets. In addition, the Fed announced another plan to shore up money markets, but investors showed some concerns that such a move was needed.
At midday, the S&P 500 is down more than 2%, recently falling to session lows due to broad-based weakness.
It has been an extremely busy session on the earnings front, including five Dow components reporting. Results have been mixed -- of the 77 companies that reported earnings before the open and after yesterday's close, 52% topped estimates, 35% missed and 13% were in-line. Meanwhile, outlooks are cautious -- of the 49 companies that issued guidance, 45% were negative, 30% were in-line, 21% were mixed and only 3% were positive.
Some notable names that topped third quarter earnings estimates include 3M (MMM 59.18, +1.67), American Express (AXP 25.43, +1.10), DuPont (DD 33.82, -2.36), Pfizer (PFE 17.61, +0.27) and Lockheed Martin (LMT 86.22, -7.00). DuPont, however, issued downside earnings guidance for its fourth quarter and full year.
The more widely held companies that missed estimates include BlackRock (BLK 130.60, -12.62), Caterpillar (CAT 38.73, -2.17), Freeport-McMoRan (FCX 33.01, -3.71) and Texas Instruments (TXN 16.39, -1.59). Texas Instruments also gave a downside fourth quarter earnings outlook, citing a slowdown in orders.
With regard to the government's latest effort, the Fed will buy commercial paper -- which is short-term corporate debt that many businesses rely on -- from money market mutual funds. The Fed said it created the facility because money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests and meet portfolio rebalancing needs. The Fed had already announced plans to buy commercial paper directly from companies.
While the Fed needing to shore up money markets shows that the financial markets remain considerably strained, there continue to be some improvements. The rates banks charge each other for short-term dollar loans, measured by Libor, decreased across all terms.
Commodities are under selling pressure due to global growth concerns and a stronger dollar (+1.2%). Crude oil prices are down 5.4% to $70.24 per barrel and commodities as a whole are down 1.8%.
The weakness in crude prices is prompting a 5.6% decline in the energy sector. Weakness in other commodities is resulting in a 4.6% decline in the materials sector, with selling interest compounded by the disappointing earnings from copper producer Freeport-McMoRan.
The tech sector (-4.9%) is also a laggard as Texas Instruments plunges 9%.
The industrials sector (-1.4%) is outperforming on a relative basis as 3M gains 4%. Defensive oriented consumer staples (-0.8%) and healthcare (-0.8%) are also outperforming on a relative basis. The healthcare sector is benefiting from strength in Pfizer, which has a 9.9% weighting within the sector.DJ30 -177.37 NASDAQ -46.72 SP500 -22.72 NASDAQ Adv/Vol/Dec 686/827 mln/1906 NYSE Adv/Vol/Dec 807/444 mln/2213
11:30 am : The White House said it is not proposing a second stimulus package, but is open to ideas, Reuters reports. Yesterday, Fed Chairman Bernanke said it would be appropriate for Congress to consider a second stimulus considering that the U.S. is likely to face slow growth in the coming quarters.
The S&P 500 is down more than 1%, but still remains above the worst level of the session.
Crude oil prices make new lows, falling 5.1% to $70.43 per barrel. Crude prices are down 2% this week despite OPEC calling an emergency meeting for Friday. The cartel is expected to cut output due to the 52% plunge in oil prices in the past three months.
As stocks weaken, Treasuries enjoy some buying interest. The 10-year note is up 21 ticks to 3.76%.DJ30 -87.18 NASDAQ -26.48 SP500 -11.65 NASDAQ Adv/Vol/Dec 856/642 mln/1696 NYSE Adv/Vol/Dec 995/362 mln/1963
11:00 am : Stocks recovery attempt ends as selling pressure sends the major indices back down in the middle of this session's range.
The energy sector is a laggard (-4.3%) as crude oil prices fall 4.7% to $71.83 per barrel and RBOB gasoline prices decline 3.9% to $1.63 per gallon.
On a similar note, the materials sector is down 3.0% as commodities as whole fall 1.3%. Copper producer Freeport-McMoRan (FCX 33.80, -2.95) reported a larger than expected drop in third quarter earnings and revenue due to weakened economic conditions and lower copper prices.DJ30 -76.70 NASDAQ -21.15 SP500 -10.54 NASDAQ Adv/Vol/Dec 887/520 mln/1603 NYSE Adv/Vol/Dec 1011/307 mln/1920
10:30 am : Stocks recover the majority of their losses in a mostly broad-based move led by financials (+0.6%). The Dow briefly hit positive territory before falling to a slight loss.
Consumer finance is up 3.0% thanks to a smaller-than-expected drop in third quarter earnings at American Express (AXP 25.47, +1.12).
Regional banks (+1.3%), saw a lift after CNBC's David Faber said he is hearing there are going to be deals between regional banks, noting National City (NCC 3.08, +0.16). The regional bank group opened with a 3.1% loss after National City, KeyCorp (KEY 10.62, +0.88) and Fifth Third Bancorp (FITB 11.81, -0.43) all posted third quarter losses. Financials as a whole were down 1.7% at the open.
The S&P 500 is down 0.4% after opening with a 1.8% loss. Six of the ten sectors are currently posting a gain.DJ30 -21.82 NASDAQ -9.30 SP500 -3.98 NASDAQ Adv/Vol/Dec 993/381 mln/1403 NYSE Adv/Vol/Dec 1144/232 mln/1723
10:00 am : The stock market remains in the red as it trades slightly above opening lows. All ten sectors post a loss.
The tech sector (-3.7%) is under pressure this morning. Semiconductor giant Texas Instruments (TXN 16.39, -1.59) posted a larger-than-expected 17% decline in earnings per share and lowered its fourth quarter earnings outlook, citing weak orders. SanDisk (SNDK 14.53, +0.11), which manufactures flash memory, posted a larger-than-expected loss as the company had -17.5% non-GAAP gross margins due to the sharp drops in flash memory prices as industry oversupply remains high and demand slows.
In addition, DigiTimes reports that the chairman of Powerchip Semiconductor said that DRAM (memory used in computers) pricing will not rebound until the worldwide economy improves. Micron (MU 4.39, -0.06) is a major producer of DRAM chips.DJ30 -85.86 NASDAQ -24.50 SP500 -13.30 NASDAQ Adv/Vol/Dec 744/193 mln/1541 NYSE Adv/Vol/Dec 633/136 mln/2138
09:35 am : The volatile action continues as the stock market falls 1.8% on the open after surging nearly 5% in the previous session. Selling interest is fueled this morning by some earnings misses and negative outlooks.
While credit markets continue to show improvements, there are still some negative signs. On the positive side, interbank lending rates declined once again and the TED spread fell 37 basis points to 2.61% -- the seventh consecutive drop.
However, the Fed created a new facility to improve liquidity in money market investors, which is a clear sign that the financial market remains stressed. The Fed said it created the facility because money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests and meet portfolio rebalancing needs.
Meanwhile, France said it plans to inject roughly $14 billion in six of its largest banks.DJ30 -133.17 NASDAQ -32.81 SP500 -17.50
09:15 am : S&P futures vs fair value: -18.90. Nasdaq futures vs fair value: -33.50. Stocks futures see some choppy action and then extend their declines on news the Fed is again working to shore up the money market industry. The Federal Reserve announced a new facility to improve liquidity for U.S. money markets investors, citing that money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests and meet portfolio rebalancing needs. Separately, the Bank of Canada cuts its benchmark lending rate by 25 basis points to 2.25%, which was a smaller ease than economists had forecast, Bloomberg reports.
08:56 am : S&P futures vs fair value: -14.90. Nasdaq futures vs fair value: -31.00. Stock futures fall to session lows.
08:33 am : S&P futures vs fair value: -11.90. Nasdaq futures vs fair value: -26.50. A lower start is expected as S&P 500 and Nasdaq 100 futures trade near session lows. Kirk Kerkorian's Tracinda plans to reduce its holdings of Ford (F) due to value it sees in gaming and hospitality and the oil and gas industries. It has sold 7.3 million shares of Ford in the open market for an average price of $2.43 per share and plans to further reduce its Ford holdings, including the possibility of the sale of all its 133,500,000 shares, or 6.1% stake. Ford is down 2.6% in premarket trading. In commodity trading, oil prices are down 2.3% to $72.58 per barrel and gold is down 1.4% to $779.20 per ounce. The dollar is up 0.8% as it hits a fresh 52-week high.
08:10 am : S&P futures vs fair value: -9.90. Nasdaq futures vs fair value: -23.00. Futures suggest a lower open on what has been a very busy day of third quarter earnings reports. With regard to Dow components, Pfizer (PFE) and 3M (MMM) posted a larger-than-expected increase in earnings per share. American Express (AXP) saw earnings decline, but its results topped expectations. DuPont (DD) posted upside results for its latest quarter, but issued downside guidance. Caterpillar (CAT) slightly missed estimates. In other earnings news, Lockheed Martin (LMT) and Schering-Plough (SGP) topped expectations. Coach (COH) reported in-line earnings. Biogen (BIIB) posted upside results for its latest quarter, but issued downside guidance for fiscal year 2008. Texas Instruments (TXN) reported a larger-than-expected drop in earnings per share and gave a downside earnings estimate for the fourth quarter. SanDisk (SNDK) reported a larger-than-expected loss. BlackRock (BLK) and US Bancorp (USB) reported earnings that missed estimates, although it is not clear if they are comparable. Separately, more overseas governments have moved to shore up the financial system. France plans to purchase roughly $14 billion in debt from six of its largest banks. Credit markets continue to show improvement with Libor decreasing across all terms and the TED spread falling 36 basis points to 2.62% -- its seventh consecutive decline.
06:27 am : S&P futures vs fair value: -2.60. Nasdaq futures vs fair value: -17.80.
06:27 am : Nikkei...9306.25...+300.70...+3.30%. Hang Seng...15041.17...-281.80...-1.80%.
06:27 am : FTSE...4323.98...+41.30...+0.90%. DAX...4889.62...+54.60...+1.10%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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