AI
Monday, October 27, 2008 7:59:42 PM
Market Update 081027
http://biz.yahoo.com/mu/update.html
4:25 pm : The S&P 500 was poised to buck a negative trend seen in overseas markets after a better-than-expected new home sales lifted sentiment, but a surge in selling interest going into the closing bell caused the S&P 500 settle with sharp loss at session lows.
It was a volatile start to the week. The S&P 500 opened with a 2.4% loss, climbed to a gain of as much as 1.9% and settled with a loss of 3.2%. Volume was on the light side, with only 1.3 billion shares exchanging hands on the NYSE.
Small- and mid-cap stocks saw the largest decline, with the Russell 2000 falling 4.8% and the S&P 400 dropping 4.3%. Each index hit a fresh multi-year low this session.
Nine of the ten economic sectors posted a loss in broad-based selling interest as economic worries continue to sink stocks.
The energy sector tumbled 5.7%. A 3.1% decline in crude oil prices and a 3.2% RBOB gasoline prices added to the selling interest.
The financial sector was a laggard with a decline of 4.1%. Multi-line insurers tumbled 17.7% after traders were disappointed with a quarterly earnings decline at Humana (HUM). Goldman Sachs (GS 92.88, -7.52) and Citigroup (C 11.73, -0.41) were in focus on reports that last month Goldman approached Citi about a possible merger, which Citi quickly rejected. However, Regional banks rose 1.6% after several banks disclosed how much capital they would be receiving from the Treasury
The telecom (+1.9%) sector outperformed. Verizon (VZ 27.61, +2.53) reported a 4.8% year-over-year increase in third quarter earnings per share that met expectations. Strength in cellular and FiOS helped offset weakness in its traditional telecom business. Separately, CenturyTel (CTL 25.62, +3.88) is acquiring Embarq (EQ 30.38, +0.64) in all-stock transaction valued at $11.6 billion, including $6 billion in Embarq debt.
In economic news, new home sales for September rose 2.7% month-over-month to a seasonally adjusted annual rate of 464,000, from a downwardly revised August reading of 452,000 (revised from 460,000). Economists forecast sales of a month-over-month decline of 2.2% to 450,000. Sales are down 33.1% year-over-year.
The median sales price of a new house is down 0.9% month-over-month and down 9.1% year-over-year. The inventory level declined 1.0 to 10.4 months, which is a good sign.
Shares of homebuilders fell 3.3%.
Overseas markets fell, with Asia getting hit especially hard. Japan's Nikkei declined 6.4% to its lowest closing level since 1982 as traders worried that the strengthening yen will take a toll on Japanese exporters. The recent sharp rally in the yen prompted the G-7 to issue a statement warning about the "excessive gains" in the currency. Hong Kong's Hang Seng dropped 12.7%. The Eurostoxx 600 declined 1.9%, paring some losses in conjunction with a midday U.S. stock market recovery and word that ECB President Trichet said the ECB may cut rates again at its November 6 meeting.
The S&P 500 closed at a new 5.5 year low, but remains 1.1% above its 5.5 year intraday low that was reached on October 10. The index is down 27% in October and 42% this year. DJ30 -203.18 NASDAQ -46.13 SP500 -27.85 NASDAQ Adv/Vol/Dec 562/2.27 bln/2177 NYSE Adv/Vol/Dec 655/1.34 bln/2447
3:35 pm : The S&P 500 climbs to the unchanged mark and runs into selling resistance as we head into the final half-hour of the session. Eight of the ten sectors are posting a loss.
The Dow is outperforming with a slight gain.DJ30 +9.32 NASDAQ -6.93 SP500 -4.71 NASDAQ Adv/Vol/Dec 902/1.83 bln/1820 NYSE Adv/Vol/Dec 947/947 mln/2132
3:05 pm : The major indices are on the retreat. The decline is mostly broad-based, with notable weakness in energy (-2.5%) and financials (-1.8%).
Merrill Lynch (MER 15.67, -0.18) left its quarterly dividend unchanged at $0.35 per share, which is equivalent to an annual yield of 8.8% at current prices. Merrill Lynch previously agreed to be acquired by Bank of America (BAC 21.08, +0.01).DJ30 -9.48 NASDAQ -11.60 SP500 -6.64 NASDAQ Adv/Vol/Dec 852/1.66 bln/1854 NYSE Adv/Vol/Dec 914/869 mln/2151
2:30 pm : The stock market gives up its advance, falling to a slight loss. The S&P 500 was up 2.0% at its recently reached session high, and was down 2.4% at its opening low.
Market breadth is negative, with decliners outpacing advancers by nearly 2-to-1 on the NYSE and by 3-to-2 on the Nasdaq.
The negative market breadth is largely due to weakness in small- and mid-cap stocks. The Russell 2000 is down 1.7% and the S&P 400 is down 1.6%.
Wal-Mart (WMT 50.90, -0.50) said at its analyst day conference that credit as a percent of total sales has declined 7.4% year-to-date, noting that its customers are starting to max out their credit cards.
The Fed launched its commercial paper backstop program today, according to the Wall Street Journal. The Fed will pay a 1.88% rate for high grade three-month debt and 3.88% for asset-backed debt, according to the report. Commercial paper is short term debt issued by companies.DJ30 +19.20 NASDAQ -6.01 SP500 -3.27 NASDAQ Adv/Vol/Dec 1003/1.47 bln/1690 NYSE Adv/Vol/Dec 1086/770 mln/1945
2:00 pm : The major indices surge higher and then run into some modest resistance. Still, each major index is up at least 1%.
Retail stocks (+3.1%) are leading the way. Home Depot (HD 19.32, +0.80), Target (TGT 34.30, +1.38) and Lowe's (LOW 17.63, +0.43) are all exhibiting strength.DJ30 +145.68 NASDAQ +15.52 SP500 +9.32 NASDAQ Adv/Vol/Dec 1188/1.35 bln/1477 NYSE Adv/Vol/Dec 1353/710 mln/1682
1:30 pm : The stock market is trading near session highs. It was down 2.4% shortly after the opening bell.
The recovery was broad-based with each of the ten economic sectors now posting a gain.
The energy sector (+1.1%) rebounded from a loss of as much as 3.9% in conjunction with a recovery in crude oil prices. Crude futures are currently up 1.9% to $65.28 per barrel after trading down as much as 4.4%.DJ30 +159.88 NASDAQ +9.29 SP500 +10.17 NASDAQ Adv/Vol/Dec 1118/1.21 bln/1529 NYSE Adv/Vol/Dec 1287/614 mln/1730
1:00 pm : Stocks are showing decent gains, reversing the generally negative tone indicated early on. The largest advance continues to come from the Dow, where telco giant Verizon (VZ 27.85, +2.77) trades with the largest percentage gain of the Dow components.
Verizon announced earlier this morning in-line earnings per share results, thanks to the steadiness of its business. Even with the stock's advance this session, shares of VZ continue to bost a rich dividend yield. At its current price the stock yields 6.6%, which is almost 300 basis points more than the 10-year Treasury.
Verizon's strong performance this session has also lent support to the broader telecom sector. It is currently up 4.3%, more than any other economic sector.DJ30 +121.23 NASDAQ +8.64 SP500 +7.17 NASDAQ Adv/Vol/Dec 1116/1.11 bln/1509 NYSE Adv/Vol/Dec 1250/590 mln/1766
12:30 pm : The Dow trades with a modest gain, while the S&P 500 posts a modest loss. Five of the ten sectors post a gain.
At the same time, crude oil futures moved into positive territory for the first time this session before retreating to a loss of 0.3%.DJ30 +30.90 NASDAQ -9.50 SP500 -2.36 NASDAQ Adv/Vol/Dec 903/950 mln/1689 NYSE Adv/Vol/Dec 1032/512 mln/1959
12:00 pm : The stock market appeared to be ready to follow its overseas counterparts by selling off at the open, but U.S. stocks were able to limit their losses, aided by a better-than-expected new home sales report.
Still, the S&P 500 is posting a loss of about 1% at midday in what has been a choppy session.
New home sales for September rose 2.7% month-over-month to a seasonally adjusted annual rate of 464,000, from a downwardly revised August reading of 452,000 (revised from 460,000). Economists forecast sales of a month-over-month decline of 2.2% to 450,000. Sales are down 33.1% year-over-year.
The median sales price of a new house is down 0.9% month-over-month and down 9.1% year-over-year. The inventory level declined 1.0 to 10.4 months, which is a good sign
At midday, two of the ten economic sectors are posting a gain.
The telecom (+1.9%) sector is showing notable strength. Verizon (VZ 27.36, +2.28) reported a 4.8% year-over-year increase in third quarter earnings per share that met expectations. Strength in cellular and FiOS helped offset weakness in its traditional telecom business. Separately, CenturyTel (CTL 25.97, -3.53) is acquiring Embarq (EQ 31.23, +1.49) in all-stock transaction valued at $11.6 billion, including $6 billion in Embarq debt.
Consumer discretionary stocks (+0.1%) are posting a gain as retailers rally 2.0%.
The financial sector has seen some volatile action. Regional banks are climbing on reports that several banks are receiving capital injections from the Treasury. This helped to offset disappointment over insurer Humana's (HUM 33.22, -3.05) third quarter earnings.
The energy sector (-2.6%) is a laggard, with a 1.1% drop in crude oil prices and a 1.4% drop in RBOB gasoline prices sparking the selling interest.
Overseas markets fell, with Asia getting hit especially hard. Japan's Nikkei fell 6.4% to its lowest closing level since 1982 as traders worried that the strengthening yen will take a toll on Japanese exporters. The recent sharp rally in the yen prompted the G-7 to issue a statement warning about the "excessive gains" in the currency. Hong Kong's Hang Seng dropped 12.7%. The Eurostoxx 600 declined 1.7%. DJ30 -16.80 NASDAQ -17.39 SP500 -8.46 NASDAQ Adv/Vol/Dec 782/821 mln/1794 NYSE Adv/Vol/Dec 875/451 mln/2088
11:30 am : The Dow and S&P 500 briefly trade in positive ground before going back on the retreat. The Dow is outperforming on a relative basis, benefiting from strength in Verizon (VZ 27.65, +2.56).
Retailers (+1.6%) are showing strength. Home Depot (HD 19.09, +0.58) saw a boost following the better-than-expected new home sales report. Target (TG 34.26, +1.34T) is also outperforming, even though it had its earnings estimates cut at Citigroup, according to the AP.DJ30 -23.02 NASDAQ -17.54 SP500 -7.54 NASDAQ Adv/Vol/Dec 845/704 mln/1686 NYSE Adv/Vol/Dec 815/387 mln/2006
11:00 am : The stock market is in the red with nine of the ten economic sectors posting a loss.
Tech (-1.6%) and energy (-3.0%) stocks are posting the largest decline.
Crude oil futures are down 2.3% to $62.64 per barrel as global economic concerns continue to take a toll on prices. The current level is an improvement from earlier lows, when prices were down 4.4% at $61.30 per barrel.DJ30 -38.31 NASDAQ -16.47 SP500 -7.59 NASDAQ Adv/Vol/Dec 779/550 mln/1677 NYSE Adv/Vol/Dec 852/310 mln/2035
10:35 am : The major indices only trade in positive territory briefly, as selling pressure quickly sends the major indices back into the red. Still, current levels are an improvement from opening lows.
Regional banks (+5.2%) are showing notable strength. Several regional banks accepted roughly $28 billion in capital injections from the Treasury, Bloomberg.com reports. Some of the banks named in the report include SunTrust (STI 36.16, +1.05), KeyCorp (KEY 10.91, +0.79) and PNC Financial Services (PNc 59.97, +1.09). Capital One (COF 36.25, +0.95) was also named as a recipient.
Telecom (+1.8%) is outperforming after Verizon (VZ 27.25, +2.14) reported in-line earnings results. Verizon posted a 4.8% year-over-year increase in third quarter earnings per share, as strength in cellular and FiOS helped offset weakness in its traditional telecom business.DJ30 -69.21 NASDAQ -22.21 SP500 -10.50 NASDAQ Adv/Vol/Dec 740/444 mln/1651 NYSE Adv/Vol/Dec 824/253 mln/2008
10:05 am : The major indices pare most of their losses in a broad-based move led by telecom (+3.1%) and financials (+1.8%). The stock market then jumps into positive territory on a better-than-expected new home sales report and reports that ECB President Trichet said the ECB may cut rates again at its November 6 meeting.
New home sales for September rose 2.7% month-over-month to a seasonally adjusted annual basis of 464,000. Economists forecast sales of 450,000 and a month-over-month decline of 2.2%. Sales are down 33.1% year-over-year. August sales were revised 8,000 lower to 452,000. The August level of new home sales was the lowest level since 1991.
The median sales price of a new house is down 0.9% month-over-month and down 9.1% year-over-year. The inventory level declined 1.0 to 10.4 months, which is a good sign.DJ30 +55.60 NASDAQ +3.78 SP500 +3.91 NASDAQ Adv/Vol/Dec 706/221 mln/1563 NYSE Adv/Vol/Dec 902/143 mln/1803
09:40 am : The stock market kicks off the week on a low note as overseas markets tumble. Still, opening losses are an improvement from earlier futures market indications.
Japan's Nikkei fell 6.4% to its lowest closing level since 1982 as traders worried that the strengthening yen will take a toll on Japanese exporters. The recent sharp rally in the yen prompted the G-7 to issue a statement warning about the "excessive gains" in the currency. Hong Kong's Hang Seng dropped 12.7%.
South Korea cut its benchmark interest rate by 75 basis points to 4.25%, which was its largest cut ever.
The major European bourses are trading with losses ranging from 1.8% to 4.2%.
The dollar is up 0.9% as it gains against European currencies. The yen continues strengthen against the dollar.DJ30 -152.76 NASDAQ -29.65 SP500 -18.21
09:16 am : S&P futures vs fair value: -23.20. Nasdaq futures vs fair value: -23.80.
08:59 am : S&P futures vs fair value: -19.70. Nasdaq futures vs fair value: -17.80. Stock futures recover a lot of ground, although a lower start is still expected. At session lows that were reached around 4:00 AM ET, S&P 500 futures were 52 points below fair value and Nasdaq 100 futures were 69 points below fair value.
08:33 am : S&P futures vs fair value: -32.90. Nasdaq futures vs fair value: -36.00. Futures indicate a sharply lower start to the session. Holding company Loews Corp (L) reported a third quarter net loss per share of $0.33, compared to a profit of $0.58 per share a year ago. Loews will inject $1.25 billion into CNA Financial Corp after the insurance company reported a loss, Bloomberg reports. In commodity trading, crude oil futures continue to tumble, now down 3.0% to $62.22 per barrel.
08:05 am : S&P futures vs fair value: -34.30. Nasdaq futures vs fair value: -41.00. Stock futures suggest a sharply lower open as overseas markets tumble. Japan's Nikkei fell 6.4% to its lowest closing level since 1982 as traders worried about the strengthening yen (-1.0% at 93.36). The recent sharp rally in the yen prompted the G-7 to issue a statement warning about the "excessive gains" in the currency. Hong Kong's Hang Seng dropped 12.7%. South Korea cut its benchmark interest rate by 75 basis points to 4.25%. In Europe, the Eurostoxx 600 is down 4.3%, hitting a fresh multi-year low this session. In corporate news, the Financial Times reports Goldman Sachs (GS) called Citigroup (C) last month to discuss a merger, which was quickly rejected by Citigroup. Humana (HUM) reported a drop in quarterly earnings, although it topped expectations. Verizon (VZ) reported in-line earnings.
06:35 am : S&P futures vs fair value: -41.60. Nasdaq futures vs fair value: -56.80.
06:35 am : Nikkei...7162.90...-486.20...-6.40%. Hang Seng...11015.84...-1602.50...-12.70%.
06:35 am : FTSE...3702.99...-180.40...-4.60%. DAX...4153.22...-153.00...-3.40%.
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 S&P 500 was poised to buck a negative trend seen in overseas markets after a better-than-expected new home sales lifted sentiment, but a surge in selling interest going into the closing bell caused the S&P 500 settle with sharp loss at session lows.
It was a volatile start to the week. The S&P 500 opened with a 2.4% loss, climbed to a gain of as much as 1.9% and settled with a loss of 3.2%. Volume was on the light side, with only 1.3 billion shares exchanging hands on the NYSE.
Small- and mid-cap stocks saw the largest decline, with the Russell 2000 falling 4.8% and the S&P 400 dropping 4.3%. Each index hit a fresh multi-year low this session.
Nine of the ten economic sectors posted a loss in broad-based selling interest as economic worries continue to sink stocks.
The energy sector tumbled 5.7%. A 3.1% decline in crude oil prices and a 3.2% RBOB gasoline prices added to the selling interest.
The financial sector was a laggard with a decline of 4.1%. Multi-line insurers tumbled 17.7% after traders were disappointed with a quarterly earnings decline at Humana (HUM). Goldman Sachs (GS 92.88, -7.52) and Citigroup (C 11.73, -0.41) were in focus on reports that last month Goldman approached Citi about a possible merger, which Citi quickly rejected. However, Regional banks rose 1.6% after several banks disclosed how much capital they would be receiving from the Treasury
The telecom (+1.9%) sector outperformed. Verizon (VZ 27.61, +2.53) reported a 4.8% year-over-year increase in third quarter earnings per share that met expectations. Strength in cellular and FiOS helped offset weakness in its traditional telecom business. Separately, CenturyTel (CTL 25.62, +3.88) is acquiring Embarq (EQ 30.38, +0.64) in all-stock transaction valued at $11.6 billion, including $6 billion in Embarq debt.
In economic news, new home sales for September rose 2.7% month-over-month to a seasonally adjusted annual rate of 464,000, from a downwardly revised August reading of 452,000 (revised from 460,000). Economists forecast sales of a month-over-month decline of 2.2% to 450,000. Sales are down 33.1% year-over-year.
The median sales price of a new house is down 0.9% month-over-month and down 9.1% year-over-year. The inventory level declined 1.0 to 10.4 months, which is a good sign.
Shares of homebuilders fell 3.3%.
Overseas markets fell, with Asia getting hit especially hard. Japan's Nikkei declined 6.4% to its lowest closing level since 1982 as traders worried that the strengthening yen will take a toll on Japanese exporters. The recent sharp rally in the yen prompted the G-7 to issue a statement warning about the "excessive gains" in the currency. Hong Kong's Hang Seng dropped 12.7%. The Eurostoxx 600 declined 1.9%, paring some losses in conjunction with a midday U.S. stock market recovery and word that ECB President Trichet said the ECB may cut rates again at its November 6 meeting.
The S&P 500 closed at a new 5.5 year low, but remains 1.1% above its 5.5 year intraday low that was reached on October 10. The index is down 27% in October and 42% this year. DJ30 -203.18 NASDAQ -46.13 SP500 -27.85 NASDAQ Adv/Vol/Dec 562/2.27 bln/2177 NYSE Adv/Vol/Dec 655/1.34 bln/2447
3:35 pm : The S&P 500 climbs to the unchanged mark and runs into selling resistance as we head into the final half-hour of the session. Eight of the ten sectors are posting a loss.
The Dow is outperforming with a slight gain.DJ30 +9.32 NASDAQ -6.93 SP500 -4.71 NASDAQ Adv/Vol/Dec 902/1.83 bln/1820 NYSE Adv/Vol/Dec 947/947 mln/2132
3:05 pm : The major indices are on the retreat. The decline is mostly broad-based, with notable weakness in energy (-2.5%) and financials (-1.8%).
Merrill Lynch (MER 15.67, -0.18) left its quarterly dividend unchanged at $0.35 per share, which is equivalent to an annual yield of 8.8% at current prices. Merrill Lynch previously agreed to be acquired by Bank of America (BAC 21.08, +0.01).DJ30 -9.48 NASDAQ -11.60 SP500 -6.64 NASDAQ Adv/Vol/Dec 852/1.66 bln/1854 NYSE Adv/Vol/Dec 914/869 mln/2151
2:30 pm : The stock market gives up its advance, falling to a slight loss. The S&P 500 was up 2.0% at its recently reached session high, and was down 2.4% at its opening low.
Market breadth is negative, with decliners outpacing advancers by nearly 2-to-1 on the NYSE and by 3-to-2 on the Nasdaq.
The negative market breadth is largely due to weakness in small- and mid-cap stocks. The Russell 2000 is down 1.7% and the S&P 400 is down 1.6%.
Wal-Mart (WMT 50.90, -0.50) said at its analyst day conference that credit as a percent of total sales has declined 7.4% year-to-date, noting that its customers are starting to max out their credit cards.
The Fed launched its commercial paper backstop program today, according to the Wall Street Journal. The Fed will pay a 1.88% rate for high grade three-month debt and 3.88% for asset-backed debt, according to the report. Commercial paper is short term debt issued by companies.DJ30 +19.20 NASDAQ -6.01 SP500 -3.27 NASDAQ Adv/Vol/Dec 1003/1.47 bln/1690 NYSE Adv/Vol/Dec 1086/770 mln/1945
2:00 pm : The major indices surge higher and then run into some modest resistance. Still, each major index is up at least 1%.
Retail stocks (+3.1%) are leading the way. Home Depot (HD 19.32, +0.80), Target (TGT 34.30, +1.38) and Lowe's (LOW 17.63, +0.43) are all exhibiting strength.DJ30 +145.68 NASDAQ +15.52 SP500 +9.32 NASDAQ Adv/Vol/Dec 1188/1.35 bln/1477 NYSE Adv/Vol/Dec 1353/710 mln/1682
1:30 pm : The stock market is trading near session highs. It was down 2.4% shortly after the opening bell.
The recovery was broad-based with each of the ten economic sectors now posting a gain.
The energy sector (+1.1%) rebounded from a loss of as much as 3.9% in conjunction with a recovery in crude oil prices. Crude futures are currently up 1.9% to $65.28 per barrel after trading down as much as 4.4%.DJ30 +159.88 NASDAQ +9.29 SP500 +10.17 NASDAQ Adv/Vol/Dec 1118/1.21 bln/1529 NYSE Adv/Vol/Dec 1287/614 mln/1730
1:00 pm : Stocks are showing decent gains, reversing the generally negative tone indicated early on. The largest advance continues to come from the Dow, where telco giant Verizon (VZ 27.85, +2.77) trades with the largest percentage gain of the Dow components.
Verizon announced earlier this morning in-line earnings per share results, thanks to the steadiness of its business. Even with the stock's advance this session, shares of VZ continue to bost a rich dividend yield. At its current price the stock yields 6.6%, which is almost 300 basis points more than the 10-year Treasury.
Verizon's strong performance this session has also lent support to the broader telecom sector. It is currently up 4.3%, more than any other economic sector.DJ30 +121.23 NASDAQ +8.64 SP500 +7.17 NASDAQ Adv/Vol/Dec 1116/1.11 bln/1509 NYSE Adv/Vol/Dec 1250/590 mln/1766
12:30 pm : The Dow trades with a modest gain, while the S&P 500 posts a modest loss. Five of the ten sectors post a gain.
At the same time, crude oil futures moved into positive territory for the first time this session before retreating to a loss of 0.3%.DJ30 +30.90 NASDAQ -9.50 SP500 -2.36 NASDAQ Adv/Vol/Dec 903/950 mln/1689 NYSE Adv/Vol/Dec 1032/512 mln/1959
12:00 pm : The stock market appeared to be ready to follow its overseas counterparts by selling off at the open, but U.S. stocks were able to limit their losses, aided by a better-than-expected new home sales report.
Still, the S&P 500 is posting a loss of about 1% at midday in what has been a choppy session.
New home sales for September rose 2.7% month-over-month to a seasonally adjusted annual rate of 464,000, from a downwardly revised August reading of 452,000 (revised from 460,000). Economists forecast sales of a month-over-month decline of 2.2% to 450,000. Sales are down 33.1% year-over-year.
The median sales price of a new house is down 0.9% month-over-month and down 9.1% year-over-year. The inventory level declined 1.0 to 10.4 months, which is a good sign
At midday, two of the ten economic sectors are posting a gain.
The telecom (+1.9%) sector is showing notable strength. Verizon (VZ 27.36, +2.28) reported a 4.8% year-over-year increase in third quarter earnings per share that met expectations. Strength in cellular and FiOS helped offset weakness in its traditional telecom business. Separately, CenturyTel (CTL 25.97, -3.53) is acquiring Embarq (EQ 31.23, +1.49) in all-stock transaction valued at $11.6 billion, including $6 billion in Embarq debt.
Consumer discretionary stocks (+0.1%) are posting a gain as retailers rally 2.0%.
The financial sector has seen some volatile action. Regional banks are climbing on reports that several banks are receiving capital injections from the Treasury. This helped to offset disappointment over insurer Humana's (HUM 33.22, -3.05) third quarter earnings.
The energy sector (-2.6%) is a laggard, with a 1.1% drop in crude oil prices and a 1.4% drop in RBOB gasoline prices sparking the selling interest.
Overseas markets fell, with Asia getting hit especially hard. Japan's Nikkei fell 6.4% to its lowest closing level since 1982 as traders worried that the strengthening yen will take a toll on Japanese exporters. The recent sharp rally in the yen prompted the G-7 to issue a statement warning about the "excessive gains" in the currency. Hong Kong's Hang Seng dropped 12.7%. The Eurostoxx 600 declined 1.7%. DJ30 -16.80 NASDAQ -17.39 SP500 -8.46 NASDAQ Adv/Vol/Dec 782/821 mln/1794 NYSE Adv/Vol/Dec 875/451 mln/2088
11:30 am : The Dow and S&P 500 briefly trade in positive ground before going back on the retreat. The Dow is outperforming on a relative basis, benefiting from strength in Verizon (VZ 27.65, +2.56).
Retailers (+1.6%) are showing strength. Home Depot (HD 19.09, +0.58) saw a boost following the better-than-expected new home sales report. Target (TG 34.26, +1.34T) is also outperforming, even though it had its earnings estimates cut at Citigroup, according to the AP.DJ30 -23.02 NASDAQ -17.54 SP500 -7.54 NASDAQ Adv/Vol/Dec 845/704 mln/1686 NYSE Adv/Vol/Dec 815/387 mln/2006
11:00 am : The stock market is in the red with nine of the ten economic sectors posting a loss.
Tech (-1.6%) and energy (-3.0%) stocks are posting the largest decline.
Crude oil futures are down 2.3% to $62.64 per barrel as global economic concerns continue to take a toll on prices. The current level is an improvement from earlier lows, when prices were down 4.4% at $61.30 per barrel.DJ30 -38.31 NASDAQ -16.47 SP500 -7.59 NASDAQ Adv/Vol/Dec 779/550 mln/1677 NYSE Adv/Vol/Dec 852/310 mln/2035
10:35 am : The major indices only trade in positive territory briefly, as selling pressure quickly sends the major indices back into the red. Still, current levels are an improvement from opening lows.
Regional banks (+5.2%) are showing notable strength. Several regional banks accepted roughly $28 billion in capital injections from the Treasury, Bloomberg.com reports. Some of the banks named in the report include SunTrust (STI 36.16, +1.05), KeyCorp (KEY 10.91, +0.79) and PNC Financial Services (PNc 59.97, +1.09). Capital One (COF 36.25, +0.95) was also named as a recipient.
Telecom (+1.8%) is outperforming after Verizon (VZ 27.25, +2.14) reported in-line earnings results. Verizon posted a 4.8% year-over-year increase in third quarter earnings per share, as strength in cellular and FiOS helped offset weakness in its traditional telecom business.DJ30 -69.21 NASDAQ -22.21 SP500 -10.50 NASDAQ Adv/Vol/Dec 740/444 mln/1651 NYSE Adv/Vol/Dec 824/253 mln/2008
10:05 am : The major indices pare most of their losses in a broad-based move led by telecom (+3.1%) and financials (+1.8%). The stock market then jumps into positive territory on a better-than-expected new home sales report and reports that ECB President Trichet said the ECB may cut rates again at its November 6 meeting.
New home sales for September rose 2.7% month-over-month to a seasonally adjusted annual basis of 464,000. Economists forecast sales of 450,000 and a month-over-month decline of 2.2%. Sales are down 33.1% year-over-year. August sales were revised 8,000 lower to 452,000. The August level of new home sales was the lowest level since 1991.
The median sales price of a new house is down 0.9% month-over-month and down 9.1% year-over-year. The inventory level declined 1.0 to 10.4 months, which is a good sign.DJ30 +55.60 NASDAQ +3.78 SP500 +3.91 NASDAQ Adv/Vol/Dec 706/221 mln/1563 NYSE Adv/Vol/Dec 902/143 mln/1803
09:40 am : The stock market kicks off the week on a low note as overseas markets tumble. Still, opening losses are an improvement from earlier futures market indications.
Japan's Nikkei fell 6.4% to its lowest closing level since 1982 as traders worried that the strengthening yen will take a toll on Japanese exporters. The recent sharp rally in the yen prompted the G-7 to issue a statement warning about the "excessive gains" in the currency. Hong Kong's Hang Seng dropped 12.7%.
South Korea cut its benchmark interest rate by 75 basis points to 4.25%, which was its largest cut ever.
The major European bourses are trading with losses ranging from 1.8% to 4.2%.
The dollar is up 0.9% as it gains against European currencies. The yen continues strengthen against the dollar.DJ30 -152.76 NASDAQ -29.65 SP500 -18.21
09:16 am : S&P futures vs fair value: -23.20. Nasdaq futures vs fair value: -23.80.
08:59 am : S&P futures vs fair value: -19.70. Nasdaq futures vs fair value: -17.80. Stock futures recover a lot of ground, although a lower start is still expected. At session lows that were reached around 4:00 AM ET, S&P 500 futures were 52 points below fair value and Nasdaq 100 futures were 69 points below fair value.
08:33 am : S&P futures vs fair value: -32.90. Nasdaq futures vs fair value: -36.00. Futures indicate a sharply lower start to the session. Holding company Loews Corp (L) reported a third quarter net loss per share of $0.33, compared to a profit of $0.58 per share a year ago. Loews will inject $1.25 billion into CNA Financial Corp after the insurance company reported a loss, Bloomberg reports. In commodity trading, crude oil futures continue to tumble, now down 3.0% to $62.22 per barrel.
08:05 am : S&P futures vs fair value: -34.30. Nasdaq futures vs fair value: -41.00. Stock futures suggest a sharply lower open as overseas markets tumble. Japan's Nikkei fell 6.4% to its lowest closing level since 1982 as traders worried about the strengthening yen (-1.0% at 93.36). The recent sharp rally in the yen prompted the G-7 to issue a statement warning about the "excessive gains" in the currency. Hong Kong's Hang Seng dropped 12.7%. South Korea cut its benchmark interest rate by 75 basis points to 4.25%. In Europe, the Eurostoxx 600 is down 4.3%, hitting a fresh multi-year low this session. In corporate news, the Financial Times reports Goldman Sachs (GS) called Citigroup (C) last month to discuss a merger, which was quickly rejected by Citigroup. Humana (HUM) reported a drop in quarterly earnings, although it topped expectations. Verizon (VZ) reported in-line earnings.
06:35 am : S&P futures vs fair value: -41.60. Nasdaq futures vs fair value: -56.80.
06:35 am : Nikkei...7162.90...-486.20...-6.40%. Hang Seng...11015.84...-1602.50...-12.70%.
06:35 am : FTSE...3702.99...-180.40...-4.60%. DAX...4153.22...-153.00...-3.40%.
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.
