AI
Wednesday, October 22, 2008 7:07:11 PM
Market Update 081022
http://biz.yahoo.com/mu/update.html
4:20 pm : Global economic concerns and earnings concerns sank stocks for the second straight session.
The S&P 500 spent the entire session in negative territory, falling 6.1% to its lowest closing level in five years. Weakness was broad-based with 478 of the S&P 500 components posting a loss, although volume was on the light side when considering the scope of this session's move.
Similar to Tuesday, the majority of companies (56%) reported better-than-expected earnings for the latest quarter, but outlooks were negative. Of the companies that issued earnings guidance with their quarterly reports, 39% were negative, 29% were in-line, 24% were mixed and only 7% were positive.
A few of the more widely-held names that topped earnings estimates include Apple (AAPL 96.57, +5.08), McDonald's (MCD 54.46, -0.67), Merck (MRK 28.02, -6.51) and Phillip Morris International (PM 40.94, -1.22). Of note, Merck plans to cut 7,200 jobs, or 13% of its workforce.
Yahoo! (YHOO 12.39, +0.32) reported a profit drop that met estimates, and said it plans to lay off 10%, or 1,500, of its workforce.
AT&T (T 23.93, -1.80) and Boeing (BA 43.03, -3.37) are two of the bigger names that missed earnings estimates.
All ten of the economic sectors posted a loss, ranging from -10.4% (energy) and -3.8% (consumer staples)
A sharp drop in crude prices in conjunction with disappointing earnings from ConocoPhillips (COP 49.06, -4.90) and Baker Hughes (BHI 30.43, -8.52) caused a 10.4%decline in energy stocks.
On related note, the material sector fell 8.3% as copper prices plunged 9.7%.
The defensive-oriented consumer staples sector outperformed on a relative basis with a decline of 3.8%.
The dollar rallied for the third straight session, with today's gains fueled by weakness in overseas markets and Bank of England Governor King saying that a U.K. recession seems likely -- The DJ World Index excluding US dropped 6.8%.
The strength in the dollar and global economic fears sparked a broad-based sell-off in commodities (-4.5%). Crude oil prices plunged 7.4% to $66.84, with selling interest compounded by the fourth straight weekly increase in inventory levels.
As stocks and commodities faltered, the long end of the Treasury curve rallied as investors sought safety. The benchmark 10-year note climbed more than a point to push its yield down to 3.60%. DJ30 -514.45 NASDAQ -80.93 NQ100 -3.6% R2K -5.9% SP400 -5.4% SP500 -58.27 NASDAQ Adv/Vol/Dec 353/2.57 bln/2391 NYSE Adv/Vol/Dec 461/1.56 bln/2657
3:35 pm : The stock market hits a new intraday low with 30 minutes left in the trading session. The selling pressure is broad-based, with notable weakness in financials (-7.2%)
Tomorrow, the market will pay close attention to the weekly new unemployment claims report at 8:30 ET. Economists expect that claims rose 4,000 to 465,000. In earnings news, Amazon.com (AMZN 48.29, -1.94) reports after the close today. Altria (MO 19.48, +0.10), Bristol-Myers Squibb (BMY 17.73, -0.73), Dow Chemical (DOW 22.35, -1.56), Eli Lilly (LLY 32.28, -1.40), and UPS (UPS 46.38, -4.35) report tomorrow before the open.DJ30 -510.11 NASDAQ -89.33 SP500 -61.29 NASDAQ Adv/Vol/Dec 359/1.99 bln/2370 NYSE Adv/Vol/Dec 441/983 mln/2665
3:00 pm : The major indices fall to new lows in broad-based weakness. The S&P 500 is now down 8.1% over the last two sessions, and is down 3.7% this week. The index is 7.8% above its multi-year intraday low that was reached on October 10.
Commodities are down 4.2% as crude prices plunge 7.4% and RBOB gasoline prices fall 6.8%. Even gold, which is typically seen as a safe-haven, fell 4.3%.DJ30 -427.87 NASDAQ -67.96 SP500 -51.05 NASDAQ Adv/Vol/Dec 392/1.73 bln/2295 NYSE Adv/Vol/Dec 455/858 mln/2637
2:30 pm : Stocks remain in a funk, but continue to trade off their session low. The relative strength of large-cap tech stocks continues to help the Nasdaq outperform the S&P 500 and the Dow Jones Industrial Average.
McDonald's (MCD 55.63, +0.50) is the only Dow component trading higher. Earlier today the fast food giant announced strong comparable sales growth and better-than-expected earnings per share results. While sales growth remains strong in the U.S., the highest growth continues to come from overseas. However, with the dollar rallying against a basket of foreign currencies, many fear the benefits of overseas growth will be diminished by less favorable currency translation rates.
The dollar index is at 85.5, up 1.8% this session and 11.5% year-to-date. That brings the index to its highest level since January 2007.DJ30 -324.81 NASDAQ -47.75 SP500 -38.90 NASDAQ Adv/Vol/Dec 471/1.59 bln/2195 NYSE Adv/Vol/Dec 503/789 mln/2568
2:00 pm : The S&P 500 is trading modestly above its recently reached session low of -4.9%.
The best performing sector, tech, is down 2.3%. The worst performing sector, energy, is down 8.5%.
As stocks struggle, buying interest picks up on the long end of the Treasury yield curve. The 10-year note is up a full point to send its yield down to 3.61%. The 30-year bond is up more than two points to send its yield down to 4.09%.
DJ30 -344.24 NASDAQ -46.90 SP500 -40.45 NASDAQ Adv/Vol/Dec 445/1.45 bln/2212 NYSE Adv/Vol/Dec 494/722 mln/2566
1:30 pm : The Nasdaq and S&P 500 hit fresh session lows. There does not appear to be a specific selling catalyst, although the financial sector (-4.3%) is showing relative weakness.
Wachovia (WB 5.88, -0.21) posted a massive $24 billion, or $11.89 per share, third quarter loss this morning. However, most of the loss was due to a noncash write-down of goodwill, which was expected as part of Wachovia's merger agreement with Wells Fargo (WFC 31.11, -1.53).
A total of 93% of stocks within the S&P 500 are in the red. The biggest percent losers are Coventry Health Care (CVH 14.78, -13.71), SanDisk (SNDK 10.04, -4.72) and General Growth Properties (GGP 3.44, -1.40). Coventry is down 48% after missing its third quarter earnings per share estimates by a wide margin and slashing its 2008 guidance as the health insurer has been pressured by costs and investment write-downs.
Flash memory maker SanDisk is down 32% after Samsung pulled its $26 per share, or $5.9 billion, bid. SanDisk had previously rejected the offer as too low. Samsung now believes the offer too high given SanDisk's weak third quarter and uncertain outlook.
General Growth Properties' 29% loss come after The Wall Street Journal reported the commercial REIT was looking to sell preferred stock.DJ30 -373.79 NASDAQ -46.03 SP500 -41.15 NASDAQ Adv/Vol/Dec 483/1.32 bln/2155 NYSE Adv/Vol/Dec 504/653 mln/2553
1:05 pm : The S&P 500 is back on the decline. Market breadth is negative. Decliners outpace advancers by 9-to-5 on the NYSE and by 10-to-3 on the Nasdaq. Volume is on the light side.
Oil has extended its decline, now down 7.2% to $67.05 per barrel, hitting its lowest level since June 2007.DJ30 -320.43 NASDAQ -35.20 SP500 -35.79 NASDAQ Adv/Vol/Dec 603/1.19 bln/1983 NYSE Adv/Vol/Dec 550/582 mln/2489
12:30 pm : Stocks are recovering some losses, although the S&P 500 is still down more than 2%.
The Nasdaq 100 is outperforming with a loss of only 0.3%. It is benefiting from strength in Apple (AAPL 99.58, +8.12) and Research In Motion (RIMM 52.43, +1.96). AT&T indicated RIM's BlackBerry Bold will be released ahead of schedule in early November, according to reports.DJ30 -238.15 NASDAQ -24.69 SP500 -26.26 NASDAQ Adv/Vol/Dec 675/1.09 bln/1878 NYSE Adv/Vol/Dec 576/532 mln/2422
12:05 pm : Stocks are posting steep losses at midday as global economic fears and cautious corporate earnings outlooks weigh on sentiment.
The S&P 500 has traded in negative territory throughout the entire session. Its current loss of 3.2% is an improvement from its worst level when it was down 4.4%.
Of the 164 companies that reported earnings after yesterday's close and before the open this session, 56% topped estimates, 35% missed, and 9% met.
Similar to earnings reports on Tuesday morning, investors are concerned about the large number of companies that issued negative outlooks relative to analyst estimates. Of the 41 companies that issued earnings guidance with their quarterly reports, 39% were negative, 29% were in-line, 24% were mixed and only 7% were positive.
A few of the more widely-held names that topped earnings estimates include Apple (AAPL 98.85,+7.36), McDonald's (MCD 55.78, +0.61), Merck (MRK 29.32, -0.65) and Phillip Morris International (PM 41.49, -0.67). Of note, Merck plans to cut 7,200 jobs, or 13% of its workforce.
AT&T (T 24.04, -1.69) and Boeing (BA 43.18, -3.22) are two of the bigger names that missed earnings estimates.
All ten sectors are posting a loss.
Tech (-1.6%) is outperforming on a relative basis due to positive reactions to earnings reports from Apple, EMC (EMC 10.54, +0.85) and Yahoo! (YHOO 12.66, +0.57). Yahoo said it plans to cut 1,500 jobs, or 10% of its workforce.
The telecom sector (-6.2%) is struggling in reaction to AT&T's earnings miss.
Weakness in crude prices, and disappointing earnings from ConocoPhillips (COP 50.48, -3.48) and Baker Hughes (BHI 32.49, -6.46) are taking a toll on energy stocks (-6.4%), which are the main laggards this session.
The dollar (+2.0%) is rallying, with the pound falling 4.0% against the dollar after Bank of England Governor King said that a U.K. recession seems likely. The strength of the dollar and expected weakness in the global economy is taking a toll on commodities (-3.2%), especially oil (-5.4% at $68.25 per barrel). Slowing demand was reflected in the government's weekly energy report, which showed the fourth straight increase in crude inventories.
In overseas trading, Europe sank 5.1%, Japan fell 6.8% and Hong Kong declined 5.2%.DJ30 -289.84 NASDAQ -31.93 SP500 -30.71 NASDAQ Adv/Vol/Dec 605/980 mln/1910 NYSE Adv/Vol/Dec 528/484 mln/2464
11:30 am : Stocks trade with steep losses. The financial (-2.7%), tech (-2.1%) and consumer staples (-2.7%) sectors are outperforming on a relative basis.
The telecom sector (-6.4%) is under selling pressure. AT&T (T 24.04, -1.69) this morning reported earnings that fell short of estimates due to lower-than-expected profit margins.DJ30 -318.04 NASDAQ -38.57 SP500 -33.97 NASDAQ Adv/Vol/Dec 618/848 mln/1871 NYSE Adv/Vol/Dec 479/416 mln/2475
11:00 am : The S&P 500 continues to post a steep loss, but has recovered about 1.5 percentage points from its session low. Tech stocks (-1.2%) are playing the largest role in the recovery effort.
Crude prices are down 5.7% to $68.11 per barrel, which is unchanged from the levels it was at prior to the inventory report. The energy sector, however, has seen some improvements with a loss of 5.7%.
Of the 164 companies that reported earnings after yesterday's close and before the open this session, 56% topped estimates, 35% missed, and 9% met. According to Thomson Reuters, since 1994 61% of companies have topped estimates, 20% missed and 19% matched. As of last Friday, earnings are expected to decline 9.1% in the third quarter, using a combination of companies that have already reported and analyst forecasts, according to Thomson Reuters.
Similar to earnings reports on Tuesday, a large number of companies issued negative outlooks relative to analyst estimates, and only a few gave a positive outlook. Of the 41 companies that issued earnings guidance with their quarterly reports, 39% were negative, 29% were in-line, 24% were mixed and only 7% were positive.DJ30 -249.30 NASDAQ -23.04 SP500 -26.47 NASDAQ Adv/Vol/Dec 693/704 mln/1726 NYSE Adv/Vol/Dec 522/347 mln/2383
10:35 am : Just hitting the wires, crude stockpiles for the week ended Oct. 17 rose 3.2 million barrels, which was larger than the expected increase of 2.7 million barrels. Gasoline stockpiles rose by 2.7 million barrels. Crude prices were down 5.7% to $68.08 per barrel just prior to the report.
The stock market trades with a sharp decline near recently reached session lows. All ten sectors are posting a loss, with the energy sector (-7.2%) showing the most weakness.
On top of the steep drop in crude prices, the energy sector is being pressured by disappointing earnings reports from Baker Hughes (BHI 32.86, -6.09) and ConocoPhillips (COP 48.99, -4.97). DJ30 -334.92 NASDAQ -39.11 SP500 -920.58 NASDAQ Adv/Vol/Dec 448/543 mln/1926 NYSE Adv/Vol/Dec 340/273 mln/2534
10:00 am : The major indices extend their opening declines in broad-based weakness, with the S&P 500 down almost 4%. Crude oil prices have plunged 6.0% to $67.84 per barrel ahead of the government's weekly energy report at 10:35 AM ET.
The Nasdaq and tech sector (-2.1%) are outperforming on a relative basis after several tech names reported earnings that pleased investors.
Apple (AAPL 99.69, +8.20) reported better-than-expected quarterly earnings per of $1.26, compared to the $1.11 consensus estimate, thanks to strong iPhone sales. The company's outlook for its current quarter, however, was cautious at between $1.06 and $1.35 per share, which is well below the consensus estimate of $1.65. Apple has a history of conservative earnings outlooks.
Yahoo! (YHOO 12.50, +0.42) reported in-line earnings, but shares are up 3.6% as the results were better-than-feared and on hopes the company will improve efficiency. Yahoo plans to eliminate at least 10%, or 1,500, of its workforce, as media reports had suggested earlier this week.
VMWare (VMW 20.66, +1.93), which makes virtualization software that allows users to run multiple operating systems on one computer, beat its lowered third quarter earnings outlook and gave upside guidance. EMC (EMC 10.34, +0.65), which owns a major stake in VMWare, also topped estimates.DJ30 -350.93 NASDAQ -37.44 SP500 -37.20 NASDAQ Adv/Vol/Dec 491/310 mln/1759 NYSE Adv/Vol/Dec 327/164 mln/2445
09:40 am : The stock market kicks off the session on a negative note as earnings outlooks weigh on sentiment and overseas markets succumb to selling pressure.
With regard to earnings, more companies posted upside results than downside for the third quarter. Outlooks, however, leaned negative as companies remain uncertain about the economic environment. Several companies announced job cuts, which is also weighing on sentiment.
Economic concerns are reflected in commodities, with crude prices down 4.8% and commodities as a whole down 2.2%. Meanwhile, the dollar (+1.6%) rallies after Bank of England Governor King said that U.K. recession seems likely.DJ30 -247.47 NASDAQ -37.57 SP500 -27.34
09:16 am : S&P futures vs fair value: -29.10. Nasdaq futures vs fair value: -17.00.
09:05 am : S&P futures vs fair value: -30.10. Nasdaq futures vs fair value: -20.30. S&P 500 futures are trading near their recently reached session low. Interbank dollar lending rates, measured by Libor, fell across all terms once again. Overnight Libor fell 16 basis points to 1.12%, which is the lowest rate in four years.
08:35 am : S&P futures vs fair value: -23.70. Nasdaq futures vs fair value: -18.30. Futures indicate a lower start. ConocoPhillips (COP) and Northwest Airlines (NWA) reported higher-than-expected earnings. In commodity trading, crude oil prices are down 4.0% to $69.26 per barrel ahead of the government's weekly energy inventory report at 10:35 ET. Analysts expect that there will be the fourth straight increase in crude stockpiles.
08:05 am : S&P futures vs fair value: -23.70. Nasdaq futures vs fair value: -10.50. Futures suggest a lower open as a barrage of earnings reports hit the wires. Apple (APPL) posted stronger than expected earnings, but gave a cautious fourth quarter outlook. Yahoo! (YHOO) reported a drop in earnings that met expectations. The Internet company plans to cut at least 10% of its workforce, or 1,500 employees, as previous media reports suggested. McDonald's (MCD), Philip Morris International (PM), VMWare (VMW) and WellPoint (WLP) posted better-than-expected earnings. AT&T (T) and Boeing (BA) missed estimates. In other news, Samsung Electronics withdrew its $26 per share, or $5.9 billion, offer to acquire SanDisk (SNDK) due to uncertain business conditions.
06:30 am : S&P futures vs fair value: -14.60. Nasdaq futures vs fair value: -7.50.
06:30 am : Nikkei...8674.69...-631.50...-6.80%. Hang Seng...14266.60...-774.50...-5.20%.
06:30 am : FTSE...4115.94...-113.80...-2.70%. DAX...4655.40...-129.00...-2.70%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
http://biz.yahoo.com/mu/update.html
4:20 pm : Global economic concerns and earnings concerns sank stocks for the second straight session.
The S&P 500 spent the entire session in negative territory, falling 6.1% to its lowest closing level in five years. Weakness was broad-based with 478 of the S&P 500 components posting a loss, although volume was on the light side when considering the scope of this session's move.
Similar to Tuesday, the majority of companies (56%) reported better-than-expected earnings for the latest quarter, but outlooks were negative. Of the companies that issued earnings guidance with their quarterly reports, 39% were negative, 29% were in-line, 24% were mixed and only 7% were positive.
A few of the more widely-held names that topped earnings estimates include Apple (AAPL 96.57, +5.08), McDonald's (MCD 54.46, -0.67), Merck (MRK 28.02, -6.51) and Phillip Morris International (PM 40.94, -1.22). Of note, Merck plans to cut 7,200 jobs, or 13% of its workforce.
Yahoo! (YHOO 12.39, +0.32) reported a profit drop that met estimates, and said it plans to lay off 10%, or 1,500, of its workforce.
AT&T (T 23.93, -1.80) and Boeing (BA 43.03, -3.37) are two of the bigger names that missed earnings estimates.
All ten of the economic sectors posted a loss, ranging from -10.4% (energy) and -3.8% (consumer staples)
A sharp drop in crude prices in conjunction with disappointing earnings from ConocoPhillips (COP 49.06, -4.90) and Baker Hughes (BHI 30.43, -8.52) caused a 10.4%decline in energy stocks.
On related note, the material sector fell 8.3% as copper prices plunged 9.7%.
The defensive-oriented consumer staples sector outperformed on a relative basis with a decline of 3.8%.
The dollar rallied for the third straight session, with today's gains fueled by weakness in overseas markets and Bank of England Governor King saying that a U.K. recession seems likely -- The DJ World Index excluding US dropped 6.8%.
The strength in the dollar and global economic fears sparked a broad-based sell-off in commodities (-4.5%). Crude oil prices plunged 7.4% to $66.84, with selling interest compounded by the fourth straight weekly increase in inventory levels.
As stocks and commodities faltered, the long end of the Treasury curve rallied as investors sought safety. The benchmark 10-year note climbed more than a point to push its yield down to 3.60%. DJ30 -514.45 NASDAQ -80.93 NQ100 -3.6% R2K -5.9% SP400 -5.4% SP500 -58.27 NASDAQ Adv/Vol/Dec 353/2.57 bln/2391 NYSE Adv/Vol/Dec 461/1.56 bln/2657
3:35 pm : The stock market hits a new intraday low with 30 minutes left in the trading session. The selling pressure is broad-based, with notable weakness in financials (-7.2%)
Tomorrow, the market will pay close attention to the weekly new unemployment claims report at 8:30 ET. Economists expect that claims rose 4,000 to 465,000. In earnings news, Amazon.com (AMZN 48.29, -1.94) reports after the close today. Altria (MO 19.48, +0.10), Bristol-Myers Squibb (BMY 17.73, -0.73), Dow Chemical (DOW 22.35, -1.56), Eli Lilly (LLY 32.28, -1.40), and UPS (UPS 46.38, -4.35) report tomorrow before the open.DJ30 -510.11 NASDAQ -89.33 SP500 -61.29 NASDAQ Adv/Vol/Dec 359/1.99 bln/2370 NYSE Adv/Vol/Dec 441/983 mln/2665
3:00 pm : The major indices fall to new lows in broad-based weakness. The S&P 500 is now down 8.1% over the last two sessions, and is down 3.7% this week. The index is 7.8% above its multi-year intraday low that was reached on October 10.
Commodities are down 4.2% as crude prices plunge 7.4% and RBOB gasoline prices fall 6.8%. Even gold, which is typically seen as a safe-haven, fell 4.3%.DJ30 -427.87 NASDAQ -67.96 SP500 -51.05 NASDAQ Adv/Vol/Dec 392/1.73 bln/2295 NYSE Adv/Vol/Dec 455/858 mln/2637
2:30 pm : Stocks remain in a funk, but continue to trade off their session low. The relative strength of large-cap tech stocks continues to help the Nasdaq outperform the S&P 500 and the Dow Jones Industrial Average.
McDonald's (MCD 55.63, +0.50) is the only Dow component trading higher. Earlier today the fast food giant announced strong comparable sales growth and better-than-expected earnings per share results. While sales growth remains strong in the U.S., the highest growth continues to come from overseas. However, with the dollar rallying against a basket of foreign currencies, many fear the benefits of overseas growth will be diminished by less favorable currency translation rates.
The dollar index is at 85.5, up 1.8% this session and 11.5% year-to-date. That brings the index to its highest level since January 2007.DJ30 -324.81 NASDAQ -47.75 SP500 -38.90 NASDAQ Adv/Vol/Dec 471/1.59 bln/2195 NYSE Adv/Vol/Dec 503/789 mln/2568
2:00 pm : The S&P 500 is trading modestly above its recently reached session low of -4.9%.
The best performing sector, tech, is down 2.3%. The worst performing sector, energy, is down 8.5%.
As stocks struggle, buying interest picks up on the long end of the Treasury yield curve. The 10-year note is up a full point to send its yield down to 3.61%. The 30-year bond is up more than two points to send its yield down to 4.09%.
DJ30 -344.24 NASDAQ -46.90 SP500 -40.45 NASDAQ Adv/Vol/Dec 445/1.45 bln/2212 NYSE Adv/Vol/Dec 494/722 mln/2566
1:30 pm : The Nasdaq and S&P 500 hit fresh session lows. There does not appear to be a specific selling catalyst, although the financial sector (-4.3%) is showing relative weakness.
Wachovia (WB 5.88, -0.21) posted a massive $24 billion, or $11.89 per share, third quarter loss this morning. However, most of the loss was due to a noncash write-down of goodwill, which was expected as part of Wachovia's merger agreement with Wells Fargo (WFC 31.11, -1.53).
A total of 93% of stocks within the S&P 500 are in the red. The biggest percent losers are Coventry Health Care (CVH 14.78, -13.71), SanDisk (SNDK 10.04, -4.72) and General Growth Properties (GGP 3.44, -1.40). Coventry is down 48% after missing its third quarter earnings per share estimates by a wide margin and slashing its 2008 guidance as the health insurer has been pressured by costs and investment write-downs.
Flash memory maker SanDisk is down 32% after Samsung pulled its $26 per share, or $5.9 billion, bid. SanDisk had previously rejected the offer as too low. Samsung now believes the offer too high given SanDisk's weak third quarter and uncertain outlook.
General Growth Properties' 29% loss come after The Wall Street Journal reported the commercial REIT was looking to sell preferred stock.DJ30 -373.79 NASDAQ -46.03 SP500 -41.15 NASDAQ Adv/Vol/Dec 483/1.32 bln/2155 NYSE Adv/Vol/Dec 504/653 mln/2553
1:05 pm : The S&P 500 is back on the decline. Market breadth is negative. Decliners outpace advancers by 9-to-5 on the NYSE and by 10-to-3 on the Nasdaq. Volume is on the light side.
Oil has extended its decline, now down 7.2% to $67.05 per barrel, hitting its lowest level since June 2007.DJ30 -320.43 NASDAQ -35.20 SP500 -35.79 NASDAQ Adv/Vol/Dec 603/1.19 bln/1983 NYSE Adv/Vol/Dec 550/582 mln/2489
12:30 pm : Stocks are recovering some losses, although the S&P 500 is still down more than 2%.
The Nasdaq 100 is outperforming with a loss of only 0.3%. It is benefiting from strength in Apple (AAPL 99.58, +8.12) and Research In Motion (RIMM 52.43, +1.96). AT&T indicated RIM's BlackBerry Bold will be released ahead of schedule in early November, according to reports.DJ30 -238.15 NASDAQ -24.69 SP500 -26.26 NASDAQ Adv/Vol/Dec 675/1.09 bln/1878 NYSE Adv/Vol/Dec 576/532 mln/2422
12:05 pm : Stocks are posting steep losses at midday as global economic fears and cautious corporate earnings outlooks weigh on sentiment.
The S&P 500 has traded in negative territory throughout the entire session. Its current loss of 3.2% is an improvement from its worst level when it was down 4.4%.
Of the 164 companies that reported earnings after yesterday's close and before the open this session, 56% topped estimates, 35% missed, and 9% met.
Similar to earnings reports on Tuesday morning, investors are concerned about the large number of companies that issued negative outlooks relative to analyst estimates. Of the 41 companies that issued earnings guidance with their quarterly reports, 39% were negative, 29% were in-line, 24% were mixed and only 7% were positive.
A few of the more widely-held names that topped earnings estimates include Apple (AAPL 98.85,+7.36), McDonald's (MCD 55.78, +0.61), Merck (MRK 29.32, -0.65) and Phillip Morris International (PM 41.49, -0.67). Of note, Merck plans to cut 7,200 jobs, or 13% of its workforce.
AT&T (T 24.04, -1.69) and Boeing (BA 43.18, -3.22) are two of the bigger names that missed earnings estimates.
All ten sectors are posting a loss.
Tech (-1.6%) is outperforming on a relative basis due to positive reactions to earnings reports from Apple, EMC (EMC 10.54, +0.85) and Yahoo! (YHOO 12.66, +0.57). Yahoo said it plans to cut 1,500 jobs, or 10% of its workforce.
The telecom sector (-6.2%) is struggling in reaction to AT&T's earnings miss.
Weakness in crude prices, and disappointing earnings from ConocoPhillips (COP 50.48, -3.48) and Baker Hughes (BHI 32.49, -6.46) are taking a toll on energy stocks (-6.4%), which are the main laggards this session.
The dollar (+2.0%) is rallying, with the pound falling 4.0% against the dollar after Bank of England Governor King said that a U.K. recession seems likely. The strength of the dollar and expected weakness in the global economy is taking a toll on commodities (-3.2%), especially oil (-5.4% at $68.25 per barrel). Slowing demand was reflected in the government's weekly energy report, which showed the fourth straight increase in crude inventories.
In overseas trading, Europe sank 5.1%, Japan fell 6.8% and Hong Kong declined 5.2%.DJ30 -289.84 NASDAQ -31.93 SP500 -30.71 NASDAQ Adv/Vol/Dec 605/980 mln/1910 NYSE Adv/Vol/Dec 528/484 mln/2464
11:30 am : Stocks trade with steep losses. The financial (-2.7%), tech (-2.1%) and consumer staples (-2.7%) sectors are outperforming on a relative basis.
The telecom sector (-6.4%) is under selling pressure. AT&T (T 24.04, -1.69) this morning reported earnings that fell short of estimates due to lower-than-expected profit margins.DJ30 -318.04 NASDAQ -38.57 SP500 -33.97 NASDAQ Adv/Vol/Dec 618/848 mln/1871 NYSE Adv/Vol/Dec 479/416 mln/2475
11:00 am : The S&P 500 continues to post a steep loss, but has recovered about 1.5 percentage points from its session low. Tech stocks (-1.2%) are playing the largest role in the recovery effort.
Crude prices are down 5.7% to $68.11 per barrel, which is unchanged from the levels it was at prior to the inventory report. The energy sector, however, has seen some improvements with a loss of 5.7%.
Of the 164 companies that reported earnings after yesterday's close and before the open this session, 56% topped estimates, 35% missed, and 9% met. According to Thomson Reuters, since 1994 61% of companies have topped estimates, 20% missed and 19% matched. As of last Friday, earnings are expected to decline 9.1% in the third quarter, using a combination of companies that have already reported and analyst forecasts, according to Thomson Reuters.
Similar to earnings reports on Tuesday, a large number of companies issued negative outlooks relative to analyst estimates, and only a few gave a positive outlook. Of the 41 companies that issued earnings guidance with their quarterly reports, 39% were negative, 29% were in-line, 24% were mixed and only 7% were positive.DJ30 -249.30 NASDAQ -23.04 SP500 -26.47 NASDAQ Adv/Vol/Dec 693/704 mln/1726 NYSE Adv/Vol/Dec 522/347 mln/2383
10:35 am : Just hitting the wires, crude stockpiles for the week ended Oct. 17 rose 3.2 million barrels, which was larger than the expected increase of 2.7 million barrels. Gasoline stockpiles rose by 2.7 million barrels. Crude prices were down 5.7% to $68.08 per barrel just prior to the report.
The stock market trades with a sharp decline near recently reached session lows. All ten sectors are posting a loss, with the energy sector (-7.2%) showing the most weakness.
On top of the steep drop in crude prices, the energy sector is being pressured by disappointing earnings reports from Baker Hughes (BHI 32.86, -6.09) and ConocoPhillips (COP 48.99, -4.97). DJ30 -334.92 NASDAQ -39.11 SP500 -920.58 NASDAQ Adv/Vol/Dec 448/543 mln/1926 NYSE Adv/Vol/Dec 340/273 mln/2534
10:00 am : The major indices extend their opening declines in broad-based weakness, with the S&P 500 down almost 4%. Crude oil prices have plunged 6.0% to $67.84 per barrel ahead of the government's weekly energy report at 10:35 AM ET.
The Nasdaq and tech sector (-2.1%) are outperforming on a relative basis after several tech names reported earnings that pleased investors.
Apple (AAPL 99.69, +8.20) reported better-than-expected quarterly earnings per of $1.26, compared to the $1.11 consensus estimate, thanks to strong iPhone sales. The company's outlook for its current quarter, however, was cautious at between $1.06 and $1.35 per share, which is well below the consensus estimate of $1.65. Apple has a history of conservative earnings outlooks.
Yahoo! (YHOO 12.50, +0.42) reported in-line earnings, but shares are up 3.6% as the results were better-than-feared and on hopes the company will improve efficiency. Yahoo plans to eliminate at least 10%, or 1,500, of its workforce, as media reports had suggested earlier this week.
VMWare (VMW 20.66, +1.93), which makes virtualization software that allows users to run multiple operating systems on one computer, beat its lowered third quarter earnings outlook and gave upside guidance. EMC (EMC 10.34, +0.65), which owns a major stake in VMWare, also topped estimates.DJ30 -350.93 NASDAQ -37.44 SP500 -37.20 NASDAQ Adv/Vol/Dec 491/310 mln/1759 NYSE Adv/Vol/Dec 327/164 mln/2445
09:40 am : The stock market kicks off the session on a negative note as earnings outlooks weigh on sentiment and overseas markets succumb to selling pressure.
With regard to earnings, more companies posted upside results than downside for the third quarter. Outlooks, however, leaned negative as companies remain uncertain about the economic environment. Several companies announced job cuts, which is also weighing on sentiment.
Economic concerns are reflected in commodities, with crude prices down 4.8% and commodities as a whole down 2.2%. Meanwhile, the dollar (+1.6%) rallies after Bank of England Governor King said that U.K. recession seems likely.DJ30 -247.47 NASDAQ -37.57 SP500 -27.34
09:16 am : S&P futures vs fair value: -29.10. Nasdaq futures vs fair value: -17.00.
09:05 am : S&P futures vs fair value: -30.10. Nasdaq futures vs fair value: -20.30. S&P 500 futures are trading near their recently reached session low. Interbank dollar lending rates, measured by Libor, fell across all terms once again. Overnight Libor fell 16 basis points to 1.12%, which is the lowest rate in four years.
08:35 am : S&P futures vs fair value: -23.70. Nasdaq futures vs fair value: -18.30. Futures indicate a lower start. ConocoPhillips (COP) and Northwest Airlines (NWA) reported higher-than-expected earnings. In commodity trading, crude oil prices are down 4.0% to $69.26 per barrel ahead of the government's weekly energy inventory report at 10:35 ET. Analysts expect that there will be the fourth straight increase in crude stockpiles.
08:05 am : S&P futures vs fair value: -23.70. Nasdaq futures vs fair value: -10.50. Futures suggest a lower open as a barrage of earnings reports hit the wires. Apple (APPL) posted stronger than expected earnings, but gave a cautious fourth quarter outlook. Yahoo! (YHOO) reported a drop in earnings that met expectations. The Internet company plans to cut at least 10% of its workforce, or 1,500 employees, as previous media reports suggested. McDonald's (MCD), Philip Morris International (PM), VMWare (VMW) and WellPoint (WLP) posted better-than-expected earnings. AT&T (T) and Boeing (BA) missed estimates. In other news, Samsung Electronics withdrew its $26 per share, or $5.9 billion, offer to acquire SanDisk (SNDK) due to uncertain business conditions.
06:30 am : S&P futures vs fair value: -14.60. Nasdaq futures vs fair value: -7.50.
06:30 am : Nikkei...8674.69...-631.50...-6.80%. Hang Seng...14266.60...-774.50...-5.20%.
06:30 am : FTSE...4115.94...-113.80...-2.70%. DAX...4655.40...-129.00...-2.70%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
Discover What Traders Are Watching
Explore small cap ideas before they hit the headlines.
