AI
Thursday, October 23, 2008 8:14:46 PM
Market Update 081023
http://biz.yahoo.com/mu/update.html
4:30 pm : Volatility continued Thursday as the Dow turned an early 1.5% loss into a 3.3% gain, but then saw the advance fade into a 3.2% loss when the index fell to its session low. The Dow rallied late in the session to finish 2.0% higher.
Exxon Mobil (XOM 70.39, +5.82) provided the Dow and the energy sector (+6.6%) with leadership during the session. The integrated oil giant posted a strong advance as oil rebounded 3% off its 16-month low to trade near $69 per barrel.
Oil is down by more than 50% from its July high as slower economic growth threatens to undercut demand for the commodity. With oil prices down so dramatically, OPEC is expected to announce production cuts at its emergency meeting tomorrow.
Slower growth expectations also have many companies cutting jobs. Jobless claims for the week ending Oct. 18 rose 15,000 to 478,000, surpassing 468,000 claims that were expected. The four-week moving average actually dipped to 480,250 from 484,750, but a 10th consecutive month of nonfarm payroll declines is expected.
Weekly jobless claims came the same session that The Wall Street Journal reported Goldman Sachs (GS 108.58, -6.13) and Xerox (XRX 7.71, -0.27) will be cutting their workforces, and Dow Jones indicated that General Motors (GM 6.10, -0.09) will also be implementing layoffs of salaried employees. The cuts follow similar announcements in recent sessions from companies like Merck (MRK 28.85, +0.84) and Yahoo! (YHOO 12.65, +0.26).
With unemployment at elevated levels and economic headwinds stiff, spending on discretionary items is expected to wane. As such, online retailer Amazon.com (AMZN 50.32, +0.33) issued a tepid outlook for the fourth quarter. Despite strong earnings per share results, the disappointing outlook led investors to push shares sharply lower early on. They rallied at the close.
In other earnings news, Altria Group (MO 19.58, +0.29), UPS (UPS 48.13, +1.74), and Dow Chemical (DOW 24.43, +2.32) all topped earnings expectations for the third quarter. Bristol-Myers (BMY 18.05, +0.52), Eli Lilly (LLY 33.48, +1.37), and Amgen (AMGN 55.55, +5.85) also posted better-than-expected earnings. However, Amgen was the only company in the bunch to provide an optimistic outlook; its shares saw the largest gains.
In the end, eight of the ten economic sectors posted an advance. However, decliners in the S&P 500 had a slight edge over advancing issues.DJ30 +172.04 NASDAQ -11.84 SP500 +11.33 NASDAQ Adv/Vol/Dec 759/3.14 bln/2007 NYSE Adv/Vol/Dec 1166/1.69 bln/1935
3:30 pm : The Dow looked as if it were going to stage a late-session rally. It was down in excess of 3%, climbed its way back into positive ground, but recently succumbed to renewed selling pressure.
The swings in the Dow have been wide this session. From its morning low to its midday high the Dow swung 400 points. From its midday high to the afternoon low, which was also the session low, the Dow fell 550 points. In percentage terms, the Dow went from a 1.5% loss to a 3.3% gain, then down to a 3.2% loss at its session low.
Heavyweights like Exxon Mobil (XOM 66.83, +2.26), Boeing (BA 45.57, +2.66), and Briefing.com recommendation 3M (MMM 61.45, +3.26) are all helping the Dow outperform the other major indices this session.DJ30 -7.72 NASDAQ -37.39 SP500 -8.93 NASDAQ Adv/Vol/Dec 582/2.59 bln/2171 NYSE Adv/Vol/Dec 825/1.26 bln/2288
3:00 pm : Stocks remain in a funk. The major indices have fallen back to earlier session lows after catching some buying interest.
The CRB Commodity Index eased back 0.6% to 264.60 as investors fear a slower global economy will undermine demand for basic materials. The concern is also reflected by the losses incurred in the materials sector (-5.1%).
Though the growing consensus believes that demand for commodities will decline, crude gained $1.57 before closing at $68.32 per barrel on the Nymex. Crude registered new 52-week lows in prior sessions, but has rebounded a bit as traders anticipate OPEC will decide to tighten oil production when it meets tomorrow. Whether a production cut has been priced into oil remains to be seen.DJ30 -197.13 NASDAQ -68.88 SP500 -29.78 NASDAQ Adv/Vol/Dec 429/2.28 bln/2315 NYSE Adv/Vol/Dec 579/1.12 bln/2526
2:30 pm : The stock market extends its losses as Dow Jones reports that sellers of credit protection of the default of Washington Mutual (WM) will have to pay 43 cents on the dollar, which was worse than expected.
The Nasdaq took out its multi-year intraday low that was hit on October 10.
Traders will be keeping a close eye on 839.80 for the S&P 500, which is its multi-year intraday low that was reached on Oct. 10. It is currently about 3.4% above that level.DJ30 -195.38 NASDAQ -69.83 SP500 -29.15 NASDAQ Adv/Vol/Dec 453/2.05 bln/2287 NYSE Adv/Vol/Dec 618/1.01 bln/2475
2:05 pm : The major indices remain markedly lower. Stocks have been bouncing along for the last hour, slipping to new session lows, recovering, then falling again.
As concerns of tighter credit and slower economic growth grip international investors, many are pulling funds from developing economies. That has the dollar finding buyers, despite weakness in U.S. assets. The dollar index is up 0.2%, bringing its year-to-date advance to 11.5%. DJ30 -179.76 NASDAQ -57.08 SP500 -25.45 NASDAQ Adv/Vol/Dec 489/1.83 bln/2227 NYSE Adv/Vol/Dec 702/889 mln/2363
1:30 pm : The Nasdaq continues to underperform its counterparts. The losses stem from the likes of online retailer Amazon.com (AMZN 47.19, -2.80) and mobile communication device maker Research In Motion (RIMM 45.70, -2.95).
Amazon.com, for its part, issued a cautious outlook for its fourth fiscal quarter, reflecting Wall Street's worry that consumers will be less inclined to pay for discretionary items with depressed asset portfolios and unemployment on the rise. Its stock is off its session lows, however. As for Research In Motion, it has seen its stock falter during the last several sessions, recently hitting a new 52-week low. Its shares are down more than 60% this year.DJ30 -82.36 NASDAQ -43.97 SP500 -14.45 NASDAQ Adv/Vol/Dec 547/1.62 bln/2145 NYSE Adv/Vol/Dec 794/798 mln/2248
1:00 pm : Stocks continue to trend lower as the Nasdaq and S&P 500 take out new session lows. Gains have either been pared or entirely erased across all the major economic sectors.
Losses have become the most severe in the financial sector (-3.1%). Every one of its industry groups is trading with a loss. Residential REITs, in particular, are down 3.2%, though FDIC Chairman Blair announced intentions of developing a program to guarantee loans and credit enhancements to mortgage servicers if they modify existing loans. She stated that unafforadable loans could be converted into loans that are sustainable over the long term.DJ30 -76.46 NASDAQ -36.90 SP500 -12.93 NASDAQ Adv/Vol/Dec 611/1.45 bln/2038 NYSE Adv/Vol/Dec 903/701 mln/2141
12:30 pm : Stocks are on the retreat again. The Nasdaq has fallen to a new session low, but the Dow and the S&P 500 are resisting earlier lows when they each traded with a 1.5% loss.
There is no clear news item behind the move, but it has induced buying in Treasuries. The 10-year Note is now up 4 ticks after being down for much of the session.DJ30 -33.21 NASDAQ -30.65 SP500 -7.85 NASDAQ Adv/Vol/Dec 716/1.29 bln/1916 NYSE Adv/Vol/Dec 1025/619 mln/1999
12:05 pm : Stocks continue looking for direction. After making early gains the major indices retreated into negative territory, but then bounced back to positive ground. The major indices registered session highs midmorning, but have since been trending lower in choppy fashion. From its session low to its session high the Dow swung some 400 points.
Investors remain fretful over the health of the economy and, in turn, company prospects. Providing the latest clues regarding the state of things, initial jobless claims for the week ending Oct. 18 rose 15,000 to 478,000. More claims were filed than were expected -- the consensus estimate was pegged at 468,000 claims. However, the four-week moving average dipped to 480,250 from 484,750 while continuing claims held pretty steady at 3.72 million. The level of claims is reflective of a soft labor market and suggests nonfarm payrolls will decline for a 10th consecutive month.
Reflecting the weak labor market, The Wall Street Journal reported Goldman Sachs (GS 107.58, -7.13) will be cutting 10% of its workforce and Dow Jones indicated that General Motors (GM 6.21, +0.02) will be making layoffs of salaried employees.
Higher unemployment means consumers will likely tighten their purse strings and spend less on discretionary items. That had online retailer Amazon.com (AMZN 46.94, -3.05) issuing a tepid outlook for the fourth quarter, despite posting better-than-expected earnings per share results for its third quarter.
Altria Group (MO 19.70, +0.41), UPS (UPS 48.40, +2.01), and Dow Chemical (DOW 24.06, +1.95) also topped earnings expectations for the third quarter. Healthcare (+2.4%) plays like Bristol-Myers Squibb (BMY 18.23, +0.70), Eli Lilly (LLY 33.13, +1.02), and Amgen (AMGN 55.91, +6.21) each topped the consensus earnings estimate, too. Amgen, though, issued upside guidance for 2008, winning it the most positive reaction among investors.
The energy sector (+5.0%) has made strong gains this session, thanks to a rebound in oil prices. Oil futures are currently up 3.6% to more than $69 per barrel. That has helped integrated players like Exxon Mobil (XOM 68.76, +4.19) emerge as a leader in its sector and the broader S&P 500. DJ30 +148.15 NASDAQ +0.92 SP500 +12.18 NASDAQ Adv/Vol/Dec 1070/1.13 bln/1517 NYSE Adv/Vol/Dec 1496/549 mln/1506
11:30 am : Stocks have pulled back from their early session highs, when the S&P 500 was sporting a 2.9% gain. Still, the S&P 500 is well off its session low, when it traded with a 1.5% loss.
The financial sector (+0.2%) has failed to register the solid gains of the other major economic sectors. Major diversified financial services companies (+1.1%) like JPMorgan Chase (JPM 37.59, +0.42) and Bank of America (BAC 22.96, +0.30) are trying to provide leadership, but the likes of Allstate (ALL 27.50, -0.73) and Goldman Sachs (GS 108.39, -6.32) are holding the sector back.
Allstate posted a loss of $0.35 per share for its most recent quarter after experiencing a 19% year-over-year drop in revenue. The insurer also had its outlook revised lower to Negative from Stable by Standard & Poor's. Meanwhile, Goldman is planning to cut around 10% of its workforce, according to reports.DJ30 +166.46 NASDAQ +7.71 SP500 +14.20 NASDAQ Adv/Vol/Dec 1140/942 mln/1383 NYSE Adv/Vol/Dec 1541/469 mln/1424
11:00 am : Stocks have climbed to new session highs. Energy (+6.0%) remains the best performer, but the utilities sector (+5.5%) is not far behind.
Electricity generation, wholesaler, and retailer Southern Company (SO 35.84, +2.26) is advancing with marked gains as investors digest its latest financial results. Though its earnings were a penny shy of the consensus estimate of $1.02 per share, Southern saw revenue grow 12% year-over-year and net income increase 2% from the prior year.
Driving revenue growth were increased retail rates and market-response rates to industrial customers. Income failed to keep up with revenue growth due to depreciation associated with increased investment. Southern noted the investments were needed to produce cleaner energy and maintain reliability. DJ30 +253.52 NASDAQ +25.05 SP500 +24.39 NASDAQ Adv/Vol/Dec 1288/759 mln/1167 NYSE Adv/Vol/Dec 1725/388 mln/1170
10:30 am : Energy (+2.6%) continues to lead the major indices. It is one of only four economic sectors to trade in the green.
Oil well and services company Noble Corp (NE 26.21, +0.62) is moving higher after reporting upbeat earnings per share results after the prior session's close. Distinguishing itself from many other companies, Noble stated its outlook remains positive for 2008 and 2009. The company's outlook is supported by unprecedented fleet backlog and contracts already in place.
Falling oil prices have made some investors fearful the entire energy sector will suffer in the near term, but companies that have locked in service contracts ensure a stable top-line.DJ30 +24.77 NASDAQ -8.22 SP500 +0.04 NASDAQ Adv/Vol/Dec 897/534 mln/1489 NYSE Adv/Vol/Dec 1145/282 mln/1704
10:05 am : The major indices extended their downturn, but pulled up before hitting this week's low point, which was registered late in the previous session. Stocks have since made an upward move, lifting the Dow and S&P 500 back into positive ground.
The major indices continue to show losses for the week. At their current levels, the Dow has shed 4.2% this week, while the Nasdaq is down 6.5% this week and the S&P 500 is off by 5.3% this week.
The consumer discretionary sector has fared the poorest week-to-date; it is down 8.0% during that time. Fears of a prolonged global recession have investors moving out of the sector as revenue and earnings prospects for its businesses dim. The notion that consumers will be spending less amid higher unemployment, tighter credit, and tumultuous financial markets has unnerved investors. DJ30 +24.13 NASDAQ -4.09 SP500 +1.87 NASDAQ Adv/Vol/Dec 907/303 mln/1373 NYSE Adv/Vol/Dec 1039/171 mln/1710
09:45 am : Investors managed to put together an early morning advance, despite the fact stock futures suggested a downward start in premarket trading. However, the mood has reverted back to a more negative bias as the major indices all move into negative territory.
The energy sector (+1.0%) is an early leader among the major economic sectors. Its gains come as a rebound after dropping in the previous sessions. Energy has seen its gains pared in the first minutes of trade, though, as oil futures pare their own gains.
Oil futures are currently up 0.8% to $67.30 per barrel.DJ30 -27.00 NASDAQ -6.92 SP500 -3.21 NASDAQ Adv/Dec 981/1138 NYSE Adv/Dec 1221/1432
09:15 am : S&P futures vs fair value: -0.70. Nasdaq futures vs fair value: -10.80. Though the mood in premarket trading has shown improvement from earlier levels, stock futures continue to suggest the major indices will begin the session with a loss.
09:00 am : S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: -10.80. Stock futures have risen from earlier levels, reflecting an improvement in premarket sentiment. Overnight dollar Libor rates clicked up to 1.206% from 1.119% yesterday. The 3-month rade made an incremental move down to 3.535% from 3.541%.
08:30 am : S&P futures vs fair value: -6.50. Nasdaq futures vs fair value: -11.30. Several widely held companies continue to post better-than-expected third quarter earnings results, including Altria Group (MO), Bristol-Myers (BMY), and UPS (UPS), but fear of a recession has market participants focusing on the latest unemployment data for clues regarding the health of the economy. Initial jobless claims for the week ending October 18 totaled 478,000, which exceeded the consensus estimate of 468,000 claims. Initial claims were up 15,000 from the prior week. The initial claims data follows word from The Wall Street Journal that Goldman Sachs (GS) will be cutting 10% of its workforce and word from Dow Jones that General Motors (GM) will also be making layoffs. Futures have held relatively steady at more recent levels, but continue to indicate stocks will open the session to the downside.
08:00 am : S&P futures vs fair value: -12.10. Nasdaq futures vs fair value: -14.00. Stock futures take a dip and indicate a downward start for the session. Amazon.com (AMZN) posts better-than-expected earnings per share results for its third quarter, but disappoints investors with a tepid fourth quarter revenue forecast. Meanwhile, biotech major Amgen (AMGN) topped the consensus earnings estimate, and issued upside guidance for 2008. Materials company Potash (POT) and drug maker and marketer Eli Lilly (LLY) both announced positive earnings per share surprises and guided in-line with expectations. Dow Chemical (DOW) also topped earnings expectations for the third quarter, but did not offer an outlook. In economic news, Bloomberg.com reports Sweden cut its key interest rate by a half point for the second time in as many weeks. The move comes as global central banks continue working to restore credit and financial markets, and takes the bank's repo rate to 3.75%.
06:27 am : S&P futures vs fair value: +10.80. Nasdaq futures vs fair value: +8.80.
06:27 am : Nikkei...8460.98...-213.70...-2.50%. Hang Seng...13760.49...-506.10...-3.60%.
06:27 am : FTSE...3981.46...-59.40...-1.50%. DAX...4436.94...-136.00...-2.90%.
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 : Volatility continued Thursday as the Dow turned an early 1.5% loss into a 3.3% gain, but then saw the advance fade into a 3.2% loss when the index fell to its session low. The Dow rallied late in the session to finish 2.0% higher.
Exxon Mobil (XOM 70.39, +5.82) provided the Dow and the energy sector (+6.6%) with leadership during the session. The integrated oil giant posted a strong advance as oil rebounded 3% off its 16-month low to trade near $69 per barrel.
Oil is down by more than 50% from its July high as slower economic growth threatens to undercut demand for the commodity. With oil prices down so dramatically, OPEC is expected to announce production cuts at its emergency meeting tomorrow.
Slower growth expectations also have many companies cutting jobs. Jobless claims for the week ending Oct. 18 rose 15,000 to 478,000, surpassing 468,000 claims that were expected. The four-week moving average actually dipped to 480,250 from 484,750, but a 10th consecutive month of nonfarm payroll declines is expected.
Weekly jobless claims came the same session that The Wall Street Journal reported Goldman Sachs (GS 108.58, -6.13) and Xerox (XRX 7.71, -0.27) will be cutting their workforces, and Dow Jones indicated that General Motors (GM 6.10, -0.09) will also be implementing layoffs of salaried employees. The cuts follow similar announcements in recent sessions from companies like Merck (MRK 28.85, +0.84) and Yahoo! (YHOO 12.65, +0.26).
With unemployment at elevated levels and economic headwinds stiff, spending on discretionary items is expected to wane. As such, online retailer Amazon.com (AMZN 50.32, +0.33) issued a tepid outlook for the fourth quarter. Despite strong earnings per share results, the disappointing outlook led investors to push shares sharply lower early on. They rallied at the close.
In other earnings news, Altria Group (MO 19.58, +0.29), UPS (UPS 48.13, +1.74), and Dow Chemical (DOW 24.43, +2.32) all topped earnings expectations for the third quarter. Bristol-Myers (BMY 18.05, +0.52), Eli Lilly (LLY 33.48, +1.37), and Amgen (AMGN 55.55, +5.85) also posted better-than-expected earnings. However, Amgen was the only company in the bunch to provide an optimistic outlook; its shares saw the largest gains.
In the end, eight of the ten economic sectors posted an advance. However, decliners in the S&P 500 had a slight edge over advancing issues.DJ30 +172.04 NASDAQ -11.84 SP500 +11.33 NASDAQ Adv/Vol/Dec 759/3.14 bln/2007 NYSE Adv/Vol/Dec 1166/1.69 bln/1935
3:30 pm : The Dow looked as if it were going to stage a late-session rally. It was down in excess of 3%, climbed its way back into positive ground, but recently succumbed to renewed selling pressure.
The swings in the Dow have been wide this session. From its morning low to its midday high the Dow swung 400 points. From its midday high to the afternoon low, which was also the session low, the Dow fell 550 points. In percentage terms, the Dow went from a 1.5% loss to a 3.3% gain, then down to a 3.2% loss at its session low.
Heavyweights like Exxon Mobil (XOM 66.83, +2.26), Boeing (BA 45.57, +2.66), and Briefing.com recommendation 3M (MMM 61.45, +3.26) are all helping the Dow outperform the other major indices this session.DJ30 -7.72 NASDAQ -37.39 SP500 -8.93 NASDAQ Adv/Vol/Dec 582/2.59 bln/2171 NYSE Adv/Vol/Dec 825/1.26 bln/2288
3:00 pm : Stocks remain in a funk. The major indices have fallen back to earlier session lows after catching some buying interest.
The CRB Commodity Index eased back 0.6% to 264.60 as investors fear a slower global economy will undermine demand for basic materials. The concern is also reflected by the losses incurred in the materials sector (-5.1%).
Though the growing consensus believes that demand for commodities will decline, crude gained $1.57 before closing at $68.32 per barrel on the Nymex. Crude registered new 52-week lows in prior sessions, but has rebounded a bit as traders anticipate OPEC will decide to tighten oil production when it meets tomorrow. Whether a production cut has been priced into oil remains to be seen.DJ30 -197.13 NASDAQ -68.88 SP500 -29.78 NASDAQ Adv/Vol/Dec 429/2.28 bln/2315 NYSE Adv/Vol/Dec 579/1.12 bln/2526
2:30 pm : The stock market extends its losses as Dow Jones reports that sellers of credit protection of the default of Washington Mutual (WM) will have to pay 43 cents on the dollar, which was worse than expected.
The Nasdaq took out its multi-year intraday low that was hit on October 10.
Traders will be keeping a close eye on 839.80 for the S&P 500, which is its multi-year intraday low that was reached on Oct. 10. It is currently about 3.4% above that level.DJ30 -195.38 NASDAQ -69.83 SP500 -29.15 NASDAQ Adv/Vol/Dec 453/2.05 bln/2287 NYSE Adv/Vol/Dec 618/1.01 bln/2475
2:05 pm : The major indices remain markedly lower. Stocks have been bouncing along for the last hour, slipping to new session lows, recovering, then falling again.
As concerns of tighter credit and slower economic growth grip international investors, many are pulling funds from developing economies. That has the dollar finding buyers, despite weakness in U.S. assets. The dollar index is up 0.2%, bringing its year-to-date advance to 11.5%. DJ30 -179.76 NASDAQ -57.08 SP500 -25.45 NASDAQ Adv/Vol/Dec 489/1.83 bln/2227 NYSE Adv/Vol/Dec 702/889 mln/2363
1:30 pm : The Nasdaq continues to underperform its counterparts. The losses stem from the likes of online retailer Amazon.com (AMZN 47.19, -2.80) and mobile communication device maker Research In Motion (RIMM 45.70, -2.95).
Amazon.com, for its part, issued a cautious outlook for its fourth fiscal quarter, reflecting Wall Street's worry that consumers will be less inclined to pay for discretionary items with depressed asset portfolios and unemployment on the rise. Its stock is off its session lows, however. As for Research In Motion, it has seen its stock falter during the last several sessions, recently hitting a new 52-week low. Its shares are down more than 60% this year.DJ30 -82.36 NASDAQ -43.97 SP500 -14.45 NASDAQ Adv/Vol/Dec 547/1.62 bln/2145 NYSE Adv/Vol/Dec 794/798 mln/2248
1:00 pm : Stocks continue to trend lower as the Nasdaq and S&P 500 take out new session lows. Gains have either been pared or entirely erased across all the major economic sectors.
Losses have become the most severe in the financial sector (-3.1%). Every one of its industry groups is trading with a loss. Residential REITs, in particular, are down 3.2%, though FDIC Chairman Blair announced intentions of developing a program to guarantee loans and credit enhancements to mortgage servicers if they modify existing loans. She stated that unafforadable loans could be converted into loans that are sustainable over the long term.DJ30 -76.46 NASDAQ -36.90 SP500 -12.93 NASDAQ Adv/Vol/Dec 611/1.45 bln/2038 NYSE Adv/Vol/Dec 903/701 mln/2141
12:30 pm : Stocks are on the retreat again. The Nasdaq has fallen to a new session low, but the Dow and the S&P 500 are resisting earlier lows when they each traded with a 1.5% loss.
There is no clear news item behind the move, but it has induced buying in Treasuries. The 10-year Note is now up 4 ticks after being down for much of the session.DJ30 -33.21 NASDAQ -30.65 SP500 -7.85 NASDAQ Adv/Vol/Dec 716/1.29 bln/1916 NYSE Adv/Vol/Dec 1025/619 mln/1999
12:05 pm : Stocks continue looking for direction. After making early gains the major indices retreated into negative territory, but then bounced back to positive ground. The major indices registered session highs midmorning, but have since been trending lower in choppy fashion. From its session low to its session high the Dow swung some 400 points.
Investors remain fretful over the health of the economy and, in turn, company prospects. Providing the latest clues regarding the state of things, initial jobless claims for the week ending Oct. 18 rose 15,000 to 478,000. More claims were filed than were expected -- the consensus estimate was pegged at 468,000 claims. However, the four-week moving average dipped to 480,250 from 484,750 while continuing claims held pretty steady at 3.72 million. The level of claims is reflective of a soft labor market and suggests nonfarm payrolls will decline for a 10th consecutive month.
Reflecting the weak labor market, The Wall Street Journal reported Goldman Sachs (GS 107.58, -7.13) will be cutting 10% of its workforce and Dow Jones indicated that General Motors (GM 6.21, +0.02) will be making layoffs of salaried employees.
Higher unemployment means consumers will likely tighten their purse strings and spend less on discretionary items. That had online retailer Amazon.com (AMZN 46.94, -3.05) issuing a tepid outlook for the fourth quarter, despite posting better-than-expected earnings per share results for its third quarter.
Altria Group (MO 19.70, +0.41), UPS (UPS 48.40, +2.01), and Dow Chemical (DOW 24.06, +1.95) also topped earnings expectations for the third quarter. Healthcare (+2.4%) plays like Bristol-Myers Squibb (BMY 18.23, +0.70), Eli Lilly (LLY 33.13, +1.02), and Amgen (AMGN 55.91, +6.21) each topped the consensus earnings estimate, too. Amgen, though, issued upside guidance for 2008, winning it the most positive reaction among investors.
The energy sector (+5.0%) has made strong gains this session, thanks to a rebound in oil prices. Oil futures are currently up 3.6% to more than $69 per barrel. That has helped integrated players like Exxon Mobil (XOM 68.76, +4.19) emerge as a leader in its sector and the broader S&P 500. DJ30 +148.15 NASDAQ +0.92 SP500 +12.18 NASDAQ Adv/Vol/Dec 1070/1.13 bln/1517 NYSE Adv/Vol/Dec 1496/549 mln/1506
11:30 am : Stocks have pulled back from their early session highs, when the S&P 500 was sporting a 2.9% gain. Still, the S&P 500 is well off its session low, when it traded with a 1.5% loss.
The financial sector (+0.2%) has failed to register the solid gains of the other major economic sectors. Major diversified financial services companies (+1.1%) like JPMorgan Chase (JPM 37.59, +0.42) and Bank of America (BAC 22.96, +0.30) are trying to provide leadership, but the likes of Allstate (ALL 27.50, -0.73) and Goldman Sachs (GS 108.39, -6.32) are holding the sector back.
Allstate posted a loss of $0.35 per share for its most recent quarter after experiencing a 19% year-over-year drop in revenue. The insurer also had its outlook revised lower to Negative from Stable by Standard & Poor's. Meanwhile, Goldman is planning to cut around 10% of its workforce, according to reports.DJ30 +166.46 NASDAQ +7.71 SP500 +14.20 NASDAQ Adv/Vol/Dec 1140/942 mln/1383 NYSE Adv/Vol/Dec 1541/469 mln/1424
11:00 am : Stocks have climbed to new session highs. Energy (+6.0%) remains the best performer, but the utilities sector (+5.5%) is not far behind.
Electricity generation, wholesaler, and retailer Southern Company (SO 35.84, +2.26) is advancing with marked gains as investors digest its latest financial results. Though its earnings were a penny shy of the consensus estimate of $1.02 per share, Southern saw revenue grow 12% year-over-year and net income increase 2% from the prior year.
Driving revenue growth were increased retail rates and market-response rates to industrial customers. Income failed to keep up with revenue growth due to depreciation associated with increased investment. Southern noted the investments were needed to produce cleaner energy and maintain reliability. DJ30 +253.52 NASDAQ +25.05 SP500 +24.39 NASDAQ Adv/Vol/Dec 1288/759 mln/1167 NYSE Adv/Vol/Dec 1725/388 mln/1170
10:30 am : Energy (+2.6%) continues to lead the major indices. It is one of only four economic sectors to trade in the green.
Oil well and services company Noble Corp (NE 26.21, +0.62) is moving higher after reporting upbeat earnings per share results after the prior session's close. Distinguishing itself from many other companies, Noble stated its outlook remains positive for 2008 and 2009. The company's outlook is supported by unprecedented fleet backlog and contracts already in place.
Falling oil prices have made some investors fearful the entire energy sector will suffer in the near term, but companies that have locked in service contracts ensure a stable top-line.DJ30 +24.77 NASDAQ -8.22 SP500 +0.04 NASDAQ Adv/Vol/Dec 897/534 mln/1489 NYSE Adv/Vol/Dec 1145/282 mln/1704
10:05 am : The major indices extended their downturn, but pulled up before hitting this week's low point, which was registered late in the previous session. Stocks have since made an upward move, lifting the Dow and S&P 500 back into positive ground.
The major indices continue to show losses for the week. At their current levels, the Dow has shed 4.2% this week, while the Nasdaq is down 6.5% this week and the S&P 500 is off by 5.3% this week.
The consumer discretionary sector has fared the poorest week-to-date; it is down 8.0% during that time. Fears of a prolonged global recession have investors moving out of the sector as revenue and earnings prospects for its businesses dim. The notion that consumers will be spending less amid higher unemployment, tighter credit, and tumultuous financial markets has unnerved investors. DJ30 +24.13 NASDAQ -4.09 SP500 +1.87 NASDAQ Adv/Vol/Dec 907/303 mln/1373 NYSE Adv/Vol/Dec 1039/171 mln/1710
09:45 am : Investors managed to put together an early morning advance, despite the fact stock futures suggested a downward start in premarket trading. However, the mood has reverted back to a more negative bias as the major indices all move into negative territory.
The energy sector (+1.0%) is an early leader among the major economic sectors. Its gains come as a rebound after dropping in the previous sessions. Energy has seen its gains pared in the first minutes of trade, though, as oil futures pare their own gains.
Oil futures are currently up 0.8% to $67.30 per barrel.DJ30 -27.00 NASDAQ -6.92 SP500 -3.21 NASDAQ Adv/Dec 981/1138 NYSE Adv/Dec 1221/1432
09:15 am : S&P futures vs fair value: -0.70. Nasdaq futures vs fair value: -10.80. Though the mood in premarket trading has shown improvement from earlier levels, stock futures continue to suggest the major indices will begin the session with a loss.
09:00 am : S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: -10.80. Stock futures have risen from earlier levels, reflecting an improvement in premarket sentiment. Overnight dollar Libor rates clicked up to 1.206% from 1.119% yesterday. The 3-month rade made an incremental move down to 3.535% from 3.541%.
08:30 am : S&P futures vs fair value: -6.50. Nasdaq futures vs fair value: -11.30. Several widely held companies continue to post better-than-expected third quarter earnings results, including Altria Group (MO), Bristol-Myers (BMY), and UPS (UPS), but fear of a recession has market participants focusing on the latest unemployment data for clues regarding the health of the economy. Initial jobless claims for the week ending October 18 totaled 478,000, which exceeded the consensus estimate of 468,000 claims. Initial claims were up 15,000 from the prior week. The initial claims data follows word from The Wall Street Journal that Goldman Sachs (GS) will be cutting 10% of its workforce and word from Dow Jones that General Motors (GM) will also be making layoffs. Futures have held relatively steady at more recent levels, but continue to indicate stocks will open the session to the downside.
08:00 am : S&P futures vs fair value: -12.10. Nasdaq futures vs fair value: -14.00. Stock futures take a dip and indicate a downward start for the session. Amazon.com (AMZN) posts better-than-expected earnings per share results for its third quarter, but disappoints investors with a tepid fourth quarter revenue forecast. Meanwhile, biotech major Amgen (AMGN) topped the consensus earnings estimate, and issued upside guidance for 2008. Materials company Potash (POT) and drug maker and marketer Eli Lilly (LLY) both announced positive earnings per share surprises and guided in-line with expectations. Dow Chemical (DOW) also topped earnings expectations for the third quarter, but did not offer an outlook. In economic news, Bloomberg.com reports Sweden cut its key interest rate by a half point for the second time in as many weeks. The move comes as global central banks continue working to restore credit and financial markets, and takes the bank's repo rate to 3.75%.
06:27 am : S&P futures vs fair value: +10.80. Nasdaq futures vs fair value: +8.80.
06:27 am : Nikkei...8460.98...-213.70...-2.50%. Hang Seng...13760.49...-506.10...-3.60%.
06:27 am : FTSE...3981.46...-59.40...-1.50%. DAX...4436.94...-136.00...-2.90%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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