AI
Tuesday, October 28, 2008 7:07:22 PM
Market Update 081028
http://biz.yahoo.com/mu/update.html
4:20 pm : A volatile session gave stock market bulls something to cheer about, with the Dow surging 889 points on Tuesday, as bargain hunting and short-covering offset the weakest consumer confidence reading on record.
The S&P 500 rose 3.9% shortly after the opening bell, buoyed by strength in overseas markets. The index then fell to a loss of 0.4% due to the bearish consumer confidence news, only to rally into the close at session highs with a gain of 10.8%.
Strength was broad-based with all ten economic sectors posting a gain of at least 7.5%.
Retailers rallied 13.6%, with Target (TGT 38.44, +5.75) gaining 11.7%. Pershing Square Capital Management shared ideas with Target related to an alternative ownership structure of Target's real estate. The consumer discretionary sector rose 13.1%.
The energy sector rose 11.9%, lifted by better-than-expected results at Occidental Petroleum (OXY 49.77, +7.69) and Valero Energy (VLO 16.83, +1.72). The sector also received an indirect boost from BP (BP 45.52, +6.37), which posted stronger-than-expected earnings and revenue growth.
On a related note, the materials sector climbed 12.6%, aided by better-than-expected earnings at U.S. Steel (X 32.25, +4.43)
Boeing (BA 48.85, +6.49) climbed 15.3% after it reached a four-year tentative labor agreement with its striking machinist union. The union, Boeing's largest, has been on strike since the beginning of September due to disagreements on compensation, benefits and job security. The industrials sector rose 10.0%.
In overseas trading, Asian markets rallied with Japan's Nikkei closing up 6.4% and Hong Kong's Hang Seng surging 14.4%. European stocks rose 2.3%. Germany's DAX surged 11.3% as Volkswagen spiked 81.7%, marking a two-day gain of 348% due to a short-covering fueled rally after Porsche said it was increasing its stake in the automaker on Sunday.
The gains in Volkswagen sparked some volatility in the U.S. market, with Goldman Sachs (GS 94.59, +1.71) dropping as much as 11% on speculation that it was exposed to Volkswagen short positions. CNBC reported Goldman's sources said the company had no significant losses related to Volkswagen. The financial sector rose 12.5%.
In economic news, it was expected that consumer confidence would fall in October given the recent market turmoil, but the severity of the decline was not anticipated. Specifically, consumer confidence plummeted 23.4 to 38.0 in October, according to the Conference Board's survey. This was worse than the expected reading of 52.0. It marks the lowest level on record, which dates back to 1967.
August home prices in 20 major metro areas fell 16.6% year-over-year, according to the S&P/Case-Shiller Index, which matched expectations. Home prices have fallen on a year-over-year basis for 20 straight months.
In currency trading, the dollar soared 4.1% against the yen after reports indicated that the Bank of Japan is considering cutting its benchmark interest rate to 0.25% from 0.50%.DJ30 +889.35 NASDAQ +143.57 SP500 +91.59 NASDAQ Adv/Vol/Dec 1934/2.77 bln/862 NYSE Adv/Vol/Dec 2504/1.73 bln/624
3:30 pm : Stocks continue to rally with gains compounded by short-covering. The S&P 500 is up more than 7% with 95% of its components posting a gain.
Tomorrow, investors will digest quarterly earnings reports from Comcast (CMCSA 14.96, +1.34), Corning (GLW 10.99, +0.84), Kraft Foods (KFT 27.75, +0.75) and Procter & Gamble (PG 60.86, +3.49). The main event will be the FOMC policy statement at 2:15 PM ET. Fed funds futures currently fully price in a 50 basis point cut and price a 44% chance of a 75 basis point cut. The fed funds target rate is 1.50%.DJ30 +594.25 NASDAQ +94.20 SP500 +60.73 NASDAQ Adv/Vol/Dec 1724/2.10 bln/1028 NYSE Adv/Vol/Dec 2340/1.08 bln/770
2:55 pm : Stocks rally to session highs, with the S&P 500. Seven of the ten sectors are up more than 5%. There does not appear to be a specific news item to account for the surge.
Retailers (+7.8%) are showing notable strength. Target (TGT 36.51, +3.82) is up 11.7%. Pershing Square Capital Management shared ideas related to an alternative ownership structure related to Target's real estate.
Meanwhile, Treasuries extend their declines. The 10-year note is down more than a point, to send its yield up to 3.81%.DJ30 +447.42 NASDAQ +69.88 SP500 +46.33 NASDAQ Adv/Vol/Dec 1571/1.78 bln/1152 NYSE Adv/Vol/Dec 2148/935 mln/931
2:30 pm : Stocks are moving higher, lifted by broad-based buying interest. Gains range from 2.2% (financials) to 6.5% (telecom).
Despite the recover in stock prices, crude futures (-1.1% at $62.59 per barrel) remain in the red. Some of the selling interest may be due to a stronger dollar, which is up 0.6% against a basket of world currencies.
The yen, which rallied the past few sessions, is down 3% against the dollar. The Bank of Japan is considering a 25 basis point rate cut to lift its economy and help halt the recent gains in the yen, which have been hurting Japanese exporters. Japan's benchmark rate is currently 0.5%.DJ30 +327.03 NASDAQ +43.66 SP500 +30.56 NASDAQ Adv/Vol/Dec 1336/1.60 bln/1360 NYSE Adv/Vol/Dec 1869/850 mln/1191
2:00 pm : Stocks are on the retreat, but still post solid gains.
Within the S&P 500, 359 stocks are in positive territory. By percent change, the biggest advancers are General Growth Properties (2.59, +0.62), +31.5%, and Interpublic Group (IPG 4.82, +0.72), +17.6%. The biggest losers are Convergy (CVG 7.16, -2.75), -27.8%, and MGIC Investment (MTG 1.76, -0.39), -18.1%.DJ30 +132.69 NASDAQ +18.20 SP500 +11.52 NASDAQ Adv/Vol/Dec 1246/1.43 bln/1418 NYSE Adv/Vol/Dec 1633/770 mln/1393
1:30 pm : Stocks post solid gains of more than 2%, but have been unable to reach earlier highs.
According to the Silicon Alley Insider, some members of Yahoo!'s (YHOO 11.79, +0.20) board have reached out to Microsoft (MSFT 21.91, +0.72) about a possible search deal, on fears the Department of Justice will either kill or water down Yahoo's search agreement with Google (GOOG 338.58, +9.09).DJ30 +228.43 NASDAQ +30.01 SP500 +22.00 NASDAQ Adv/Vol/Dec 1338/1.33 bln/1326 NYSE Adv/Vol/Dec 1786/718 mln/1224
1:00 pm : The stock market is on the rise, climbing to a gain of more than 2%. The recovery effort is broad-based, led by consumer staples (+2.2%) and telecom (+5.3%).
The Dow has outperformed throughout the session. Boeing (BA 44.49, +2.17) is up 5.6% after it reached a four-year tentative labor agreement with its striking machinist union. The union, Boeing's largest, has been on strike since the beginning of September due to disagreements on compensation, benefits and job security.DJ30 +211.23 NASDAQ +19.62 SP500 +17.34 NASDAQ Adv/Vol/Dec 1189/1.19 bln/1447 NYSE Adv/Vol/Dec 1639/643 mln/1359
12:25 pm : The S&P 500 is holding onto a gain of more than 1% as all ten sectors advance.
Despite the gains, market breadth is negative. Advancers and decliners are nearly even on the NYSE, while decliners outpace advancers by 3-to-2 on the Nasdaq.
The weakness in breadth is due to the underperformance of small- and mid-cap stocks. The Russell 2000 Index is down 1.3% and the S&P 400 is down 0.5%.DJ30 +134.89 NASDAQ +11.95 SP500 +11.56 NASDAQ Adv/Vol/Dec 1029/1.07 bln/1596 NYSE Adv/Vol/Dec 1461/577 mln/1505
11:55 am : Stocks started the session on a strong note as global markets rallied, but the lowest consumer confidence reading on record prompted a pullback.
At midday the S&P 500 is up 1%. The index was up as much as 3.9% shortly after the bell and was down as much as 0.4% at 11:00 AM ET.
Economists expected that consumer confidence would fall in October given the recent market turmoil, but the severity of the decline was not expected. Specifically, consumer confidence plummeted 23.4 to 38.0 in October, according to the Conference Board's survey. This was worse than the expected reading of 52.0. It marks the lowest level on record, which dates back to 1967.
In other economic news, August home prices in 20 major metro areas fell 16.62% year-over-year, according to the S&P/Case-Shiller Index, which matched expectations. Home prices have fallen year-over-year for 20 straight months.
Nine of the ten sectors are posting a gain.
The energy sector is leading the way, buoyed by better-than-expected results at Occidental Petroleum (OXY 44.25, +2.17) and Valero Energy (VLO 16.31, +1.20). The sector is also getting an indirect boost from BP (BP 43.23, +3.08), which posted stronger-than-expected earnings and revenue growth.
The financial sector (-0.1%) is a notable laggard as investment banks fall -3.9% and multi-line insurance companies decline 1.8%. There is not a specific news item to account for the selling, which appears to be caused by market rumors and speculation.
In overseas trading, Asian markets rallied with Japan's Nikkei closing up 6.4% and Hong Kong's Hang Seng surging 14.4%. European stocks as whole are up 1.4%, but their advance was cut short as U.S. stocks gave up opening gains.DJ30 +118.52 NASDAQ +9.68 SP500 +8.42 NASDAQ Adv/Vol/Dec 1077/945 mln/1498 NYSE Adv/Vol/Dec 1483/514 mln/1458
11:30 am : The S&P 500 recovers from negative territory, but is still well off its high. Treasuries are in the red this session on the long end of the curve, while the short end is seeing some gains.
European markets faltered in conjunction with the recent retreat in U.S. stocks. France's CAC (-0.8%) slipped into the red, while the FTSE is now up only 0.4%. Germany's DAX is well off its high, but is still up 4.7% as Volkswagen surges 30%. On Sunday, Porsche announced it was increasing its stake in Volkswagen. There is speculation that the gains in Volkswagen is due to hedge funds covering their shorts, according to CNBC. Volkswagen is up 222% in two days.DJ30 +82.04 NASDAQ +7.15 SP500 +5.50 NASDAQ Adv/Vol/Dec 1020/816 mln/1513 NYSE Adv/Vol/Dec 1354/447 mln/1572
11:00 am : The major indices give up their gains as financials fall into negative territory. The retreat is broad based.
Within financials (-0.7%), the worst performing groups are investment banks (-9.2%) and multi-line insurance (-4.0%).
Transportation stocks (-2.4%) are also under selling pressure, with weakness seen in Ryder (R 34.22, -2.65) and Conway (CNW 30.14, -4.62).
At the same time, crude prices give up gains, now down 0.2% to $63.03 per barrel. Crude was up as much as 3.1% earlier in the session.DJ30 +23.81 NASDAQ +1.13 SP500 -0.54 NASDAQ Adv/Vol/Dec 1044/639 mln/1416 NYSE Adv/Vol/Dec 1340/353 mln/1520
10:30 am : Stocks are posting a gain, but have cut their opening advance in half, when the S&P 500 was up 3.9%.
The disappointing consumer confidence reading is the main reason for the pullback. Given the recent market turmoil, it was expected that consumer confidence would dip. But the severity of the decline from 61.5 to an all time low of 38.0 was larger than expected.
All ten sectors remain in the green. The financial sector (+0.6%) trails the broader market, with Goldman Sachs (GS 86.39, -6.49) showing notable weakness. There is no specific news item to account for the selling Goldman and the decline is likely due to market rumors and speculation.DJ30 +184.30 NASDAQ +266.04 SP500 +15.72 NASDAQ Adv/Vol/Dec 1401/473 mln/996 NYSE Adv/Vol/Dec 1949/266 mln/873
10:05 am : Stocks extend their gains and then give up some ground as a worse-than-expected consumer confidence survey is released. Still, the S&P 500 is up nearly 3%.
Just hitting the wires, consumer confidence plummeted 23.4 to 38.0 in October, according to the Conference Board's survey. This was worse than the expected reading of 52.0. It marks the lowest level on record, which dates back to 1967. A drop in confidence was expected given all the economic concerns and sharp drop in the stock market.
All ten economic sectors are posting a gain. Energy (+4.4%), materials (+4.3%) and telecom (+4.1%) are showing the most strength. The financial sector is up 1.7%, which is the smallest advance this session.DJ30 +229.64 NASDAQ +40.89 SP500 +24.21 NASDAQ Adv/Vol/Dec 1846/221 mln/414 NYSE Adv/Vol/Dec 2427/143 mln/298
09:35 am : The S&P 500 rebounds following Monday's late-session sell off as global markets rally.
In Asia, Hong Kong's Hang Seng rallied 14.4% and Japan's Nikkei rose 6.4%. In Europe, France's CAC is up 2.5%, Germany's DAX is up 8.9% and London's FTSE is up 3.4%. The DAX is benefiting from a 54% rally in shares of Volkswagen and the FTSE is benefiting from better-than-expected earnings from BP (BP 44.56, +4.44).
In the U.S., Occidental Petroleum (OXY 45.17, +3.09), Valero Energy (VLO 16.88, +1.77) and U.S. Steel (X 31.60, +0.78) posted better-than-expected quarterly earnings. Whirlpool (WHR 47.65, -2.38) beat for its latest quarter, but issued downside guidance.DJ30 +255.45 NASDAQ +48.03 SP500 +24.05
09:18 am : S&P futures vs fair value: +20.40. Nasdaq futures vs fair value: +30.50.
09:00 am : S&P futures vs fair value: +23.90. Nasdaq futures vs fair value: +36.50. Futures have slipped from session highs, but continue to suggest a strong start. August home prices in 20 major metro areas fell 16.62% year-over-year, according to the S&P/Case-Shiller Index. This was nearly in-line with the expected drop of 16.60%.
08:30 am : S&P futures vs fair value: +24.90. Nasdaq futures vs fair value: +37.80. Futures continue to suggest a sharply higher start. U.S. Steel (X) reported third quarter earnings of $7.79, which was $0.70 better than the average analyst estimate. However, the steel company did acknowledge it having "significant negative effects" on its business.
08:00 am : S&P futures vs fair value: +27.50. Nasdaq futures vs fair value: +41.80. Futures trade near session highs and point to a sharply higher open . Asian markets rallied, and European markets are currently posting strong gains. In corporate news, Chrysler and GM (GM) had their credit ratings cut at Moody's, Ford's (F) rating was put on review for a downgrade. Wal-Mart (WMT) plans to cut its store expansion plans, the Wall Street Journal reports. GE (GE) used the Fed's commercial paper facility, according to reports. Boeing (BA) and its machinist union have reached a tentative four-year agreement, the Financial Times reports. In earnings news, BP (BP), Occidental Petroleum and Valero Energy (VLO) all topped expectations. Whirlpool (WHR) posted higher than expected earnings for its latest quarter, but gave downside guidance and announced 5,000 job cuts.
06:31 am : S&P futures vs fair value: +21.50. Nasdaq futures vs fair value: +32.80.
06:31 am : Nikkei...7621.92...+459.00...+6.40%. Hang Seng...12596.29...+1580.50...+14.40%.
06:31 am : FTSE...3935.91...+83.30...+2.10%. DAX...4658.45...+321.90...+7.50%.
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 : A volatile session gave stock market bulls something to cheer about, with the Dow surging 889 points on Tuesday, as bargain hunting and short-covering offset the weakest consumer confidence reading on record.
The S&P 500 rose 3.9% shortly after the opening bell, buoyed by strength in overseas markets. The index then fell to a loss of 0.4% due to the bearish consumer confidence news, only to rally into the close at session highs with a gain of 10.8%.
Strength was broad-based with all ten economic sectors posting a gain of at least 7.5%.
Retailers rallied 13.6%, with Target (TGT 38.44, +5.75) gaining 11.7%. Pershing Square Capital Management shared ideas with Target related to an alternative ownership structure of Target's real estate. The consumer discretionary sector rose 13.1%.
The energy sector rose 11.9%, lifted by better-than-expected results at Occidental Petroleum (OXY 49.77, +7.69) and Valero Energy (VLO 16.83, +1.72). The sector also received an indirect boost from BP (BP 45.52, +6.37), which posted stronger-than-expected earnings and revenue growth.
On a related note, the materials sector climbed 12.6%, aided by better-than-expected earnings at U.S. Steel (X 32.25, +4.43)
Boeing (BA 48.85, +6.49) climbed 15.3% after it reached a four-year tentative labor agreement with its striking machinist union. The union, Boeing's largest, has been on strike since the beginning of September due to disagreements on compensation, benefits and job security. The industrials sector rose 10.0%.
In overseas trading, Asian markets rallied with Japan's Nikkei closing up 6.4% and Hong Kong's Hang Seng surging 14.4%. European stocks rose 2.3%. Germany's DAX surged 11.3% as Volkswagen spiked 81.7%, marking a two-day gain of 348% due to a short-covering fueled rally after Porsche said it was increasing its stake in the automaker on Sunday.
The gains in Volkswagen sparked some volatility in the U.S. market, with Goldman Sachs (GS 94.59, +1.71) dropping as much as 11% on speculation that it was exposed to Volkswagen short positions. CNBC reported Goldman's sources said the company had no significant losses related to Volkswagen. The financial sector rose 12.5%.
In economic news, it was expected that consumer confidence would fall in October given the recent market turmoil, but the severity of the decline was not anticipated. Specifically, consumer confidence plummeted 23.4 to 38.0 in October, according to the Conference Board's survey. This was worse than the expected reading of 52.0. It marks the lowest level on record, which dates back to 1967.
August home prices in 20 major metro areas fell 16.6% year-over-year, according to the S&P/Case-Shiller Index, which matched expectations. Home prices have fallen on a year-over-year basis for 20 straight months.
In currency trading, the dollar soared 4.1% against the yen after reports indicated that the Bank of Japan is considering cutting its benchmark interest rate to 0.25% from 0.50%.DJ30 +889.35 NASDAQ +143.57 SP500 +91.59 NASDAQ Adv/Vol/Dec 1934/2.77 bln/862 NYSE Adv/Vol/Dec 2504/1.73 bln/624
3:30 pm : Stocks continue to rally with gains compounded by short-covering. The S&P 500 is up more than 7% with 95% of its components posting a gain.
Tomorrow, investors will digest quarterly earnings reports from Comcast (CMCSA 14.96, +1.34), Corning (GLW 10.99, +0.84), Kraft Foods (KFT 27.75, +0.75) and Procter & Gamble (PG 60.86, +3.49). The main event will be the FOMC policy statement at 2:15 PM ET. Fed funds futures currently fully price in a 50 basis point cut and price a 44% chance of a 75 basis point cut. The fed funds target rate is 1.50%.DJ30 +594.25 NASDAQ +94.20 SP500 +60.73 NASDAQ Adv/Vol/Dec 1724/2.10 bln/1028 NYSE Adv/Vol/Dec 2340/1.08 bln/770
2:55 pm : Stocks rally to session highs, with the S&P 500. Seven of the ten sectors are up more than 5%. There does not appear to be a specific news item to account for the surge.
Retailers (+7.8%) are showing notable strength. Target (TGT 36.51, +3.82) is up 11.7%. Pershing Square Capital Management shared ideas related to an alternative ownership structure related to Target's real estate.
Meanwhile, Treasuries extend their declines. The 10-year note is down more than a point, to send its yield up to 3.81%.DJ30 +447.42 NASDAQ +69.88 SP500 +46.33 NASDAQ Adv/Vol/Dec 1571/1.78 bln/1152 NYSE Adv/Vol/Dec 2148/935 mln/931
2:30 pm : Stocks are moving higher, lifted by broad-based buying interest. Gains range from 2.2% (financials) to 6.5% (telecom).
Despite the recover in stock prices, crude futures (-1.1% at $62.59 per barrel) remain in the red. Some of the selling interest may be due to a stronger dollar, which is up 0.6% against a basket of world currencies.
The yen, which rallied the past few sessions, is down 3% against the dollar. The Bank of Japan is considering a 25 basis point rate cut to lift its economy and help halt the recent gains in the yen, which have been hurting Japanese exporters. Japan's benchmark rate is currently 0.5%.DJ30 +327.03 NASDAQ +43.66 SP500 +30.56 NASDAQ Adv/Vol/Dec 1336/1.60 bln/1360 NYSE Adv/Vol/Dec 1869/850 mln/1191
2:00 pm : Stocks are on the retreat, but still post solid gains.
Within the S&P 500, 359 stocks are in positive territory. By percent change, the biggest advancers are General Growth Properties (2.59, +0.62), +31.5%, and Interpublic Group (IPG 4.82, +0.72), +17.6%. The biggest losers are Convergy (CVG 7.16, -2.75), -27.8%, and MGIC Investment (MTG 1.76, -0.39), -18.1%.DJ30 +132.69 NASDAQ +18.20 SP500 +11.52 NASDAQ Adv/Vol/Dec 1246/1.43 bln/1418 NYSE Adv/Vol/Dec 1633/770 mln/1393
1:30 pm : Stocks post solid gains of more than 2%, but have been unable to reach earlier highs.
According to the Silicon Alley Insider, some members of Yahoo!'s (YHOO 11.79, +0.20) board have reached out to Microsoft (MSFT 21.91, +0.72) about a possible search deal, on fears the Department of Justice will either kill or water down Yahoo's search agreement with Google (GOOG 338.58, +9.09).DJ30 +228.43 NASDAQ +30.01 SP500 +22.00 NASDAQ Adv/Vol/Dec 1338/1.33 bln/1326 NYSE Adv/Vol/Dec 1786/718 mln/1224
1:00 pm : The stock market is on the rise, climbing to a gain of more than 2%. The recovery effort is broad-based, led by consumer staples (+2.2%) and telecom (+5.3%).
The Dow has outperformed throughout the session. Boeing (BA 44.49, +2.17) is up 5.6% after it reached a four-year tentative labor agreement with its striking machinist union. The union, Boeing's largest, has been on strike since the beginning of September due to disagreements on compensation, benefits and job security.DJ30 +211.23 NASDAQ +19.62 SP500 +17.34 NASDAQ Adv/Vol/Dec 1189/1.19 bln/1447 NYSE Adv/Vol/Dec 1639/643 mln/1359
12:25 pm : The S&P 500 is holding onto a gain of more than 1% as all ten sectors advance.
Despite the gains, market breadth is negative. Advancers and decliners are nearly even on the NYSE, while decliners outpace advancers by 3-to-2 on the Nasdaq.
The weakness in breadth is due to the underperformance of small- and mid-cap stocks. The Russell 2000 Index is down 1.3% and the S&P 400 is down 0.5%.DJ30 +134.89 NASDAQ +11.95 SP500 +11.56 NASDAQ Adv/Vol/Dec 1029/1.07 bln/1596 NYSE Adv/Vol/Dec 1461/577 mln/1505
11:55 am : Stocks started the session on a strong note as global markets rallied, but the lowest consumer confidence reading on record prompted a pullback.
At midday the S&P 500 is up 1%. The index was up as much as 3.9% shortly after the bell and was down as much as 0.4% at 11:00 AM ET.
Economists expected that consumer confidence would fall in October given the recent market turmoil, but the severity of the decline was not expected. Specifically, consumer confidence plummeted 23.4 to 38.0 in October, according to the Conference Board's survey. This was worse than the expected reading of 52.0. It marks the lowest level on record, which dates back to 1967.
In other economic news, August home prices in 20 major metro areas fell 16.62% year-over-year, according to the S&P/Case-Shiller Index, which matched expectations. Home prices have fallen year-over-year for 20 straight months.
Nine of the ten sectors are posting a gain.
The energy sector is leading the way, buoyed by better-than-expected results at Occidental Petroleum (OXY 44.25, +2.17) and Valero Energy (VLO 16.31, +1.20). The sector is also getting an indirect boost from BP (BP 43.23, +3.08), which posted stronger-than-expected earnings and revenue growth.
The financial sector (-0.1%) is a notable laggard as investment banks fall -3.9% and multi-line insurance companies decline 1.8%. There is not a specific news item to account for the selling, which appears to be caused by market rumors and speculation.
In overseas trading, Asian markets rallied with Japan's Nikkei closing up 6.4% and Hong Kong's Hang Seng surging 14.4%. European stocks as whole are up 1.4%, but their advance was cut short as U.S. stocks gave up opening gains.DJ30 +118.52 NASDAQ +9.68 SP500 +8.42 NASDAQ Adv/Vol/Dec 1077/945 mln/1498 NYSE Adv/Vol/Dec 1483/514 mln/1458
11:30 am : The S&P 500 recovers from negative territory, but is still well off its high. Treasuries are in the red this session on the long end of the curve, while the short end is seeing some gains.
European markets faltered in conjunction with the recent retreat in U.S. stocks. France's CAC (-0.8%) slipped into the red, while the FTSE is now up only 0.4%. Germany's DAX is well off its high, but is still up 4.7% as Volkswagen surges 30%. On Sunday, Porsche announced it was increasing its stake in Volkswagen. There is speculation that the gains in Volkswagen is due to hedge funds covering their shorts, according to CNBC. Volkswagen is up 222% in two days.DJ30 +82.04 NASDAQ +7.15 SP500 +5.50 NASDAQ Adv/Vol/Dec 1020/816 mln/1513 NYSE Adv/Vol/Dec 1354/447 mln/1572
11:00 am : The major indices give up their gains as financials fall into negative territory. The retreat is broad based.
Within financials (-0.7%), the worst performing groups are investment banks (-9.2%) and multi-line insurance (-4.0%).
Transportation stocks (-2.4%) are also under selling pressure, with weakness seen in Ryder (R 34.22, -2.65) and Conway (CNW 30.14, -4.62).
At the same time, crude prices give up gains, now down 0.2% to $63.03 per barrel. Crude was up as much as 3.1% earlier in the session.DJ30 +23.81 NASDAQ +1.13 SP500 -0.54 NASDAQ Adv/Vol/Dec 1044/639 mln/1416 NYSE Adv/Vol/Dec 1340/353 mln/1520
10:30 am : Stocks are posting a gain, but have cut their opening advance in half, when the S&P 500 was up 3.9%.
The disappointing consumer confidence reading is the main reason for the pullback. Given the recent market turmoil, it was expected that consumer confidence would dip. But the severity of the decline from 61.5 to an all time low of 38.0 was larger than expected.
All ten sectors remain in the green. The financial sector (+0.6%) trails the broader market, with Goldman Sachs (GS 86.39, -6.49) showing notable weakness. There is no specific news item to account for the selling Goldman and the decline is likely due to market rumors and speculation.DJ30 +184.30 NASDAQ +266.04 SP500 +15.72 NASDAQ Adv/Vol/Dec 1401/473 mln/996 NYSE Adv/Vol/Dec 1949/266 mln/873
10:05 am : Stocks extend their gains and then give up some ground as a worse-than-expected consumer confidence survey is released. Still, the S&P 500 is up nearly 3%.
Just hitting the wires, consumer confidence plummeted 23.4 to 38.0 in October, according to the Conference Board's survey. This was worse than the expected reading of 52.0. It marks the lowest level on record, which dates back to 1967. A drop in confidence was expected given all the economic concerns and sharp drop in the stock market.
All ten economic sectors are posting a gain. Energy (+4.4%), materials (+4.3%) and telecom (+4.1%) are showing the most strength. The financial sector is up 1.7%, which is the smallest advance this session.DJ30 +229.64 NASDAQ +40.89 SP500 +24.21 NASDAQ Adv/Vol/Dec 1846/221 mln/414 NYSE Adv/Vol/Dec 2427/143 mln/298
09:35 am : The S&P 500 rebounds following Monday's late-session sell off as global markets rally.
In Asia, Hong Kong's Hang Seng rallied 14.4% and Japan's Nikkei rose 6.4%. In Europe, France's CAC is up 2.5%, Germany's DAX is up 8.9% and London's FTSE is up 3.4%. The DAX is benefiting from a 54% rally in shares of Volkswagen and the FTSE is benefiting from better-than-expected earnings from BP (BP 44.56, +4.44).
In the U.S., Occidental Petroleum (OXY 45.17, +3.09), Valero Energy (VLO 16.88, +1.77) and U.S. Steel (X 31.60, +0.78) posted better-than-expected quarterly earnings. Whirlpool (WHR 47.65, -2.38) beat for its latest quarter, but issued downside guidance.DJ30 +255.45 NASDAQ +48.03 SP500 +24.05
09:18 am : S&P futures vs fair value: +20.40. Nasdaq futures vs fair value: +30.50.
09:00 am : S&P futures vs fair value: +23.90. Nasdaq futures vs fair value: +36.50. Futures have slipped from session highs, but continue to suggest a strong start. August home prices in 20 major metro areas fell 16.62% year-over-year, according to the S&P/Case-Shiller Index. This was nearly in-line with the expected drop of 16.60%.
08:30 am : S&P futures vs fair value: +24.90. Nasdaq futures vs fair value: +37.80. Futures continue to suggest a sharply higher start. U.S. Steel (X) reported third quarter earnings of $7.79, which was $0.70 better than the average analyst estimate. However, the steel company did acknowledge it having "significant negative effects" on its business.
08:00 am : S&P futures vs fair value: +27.50. Nasdaq futures vs fair value: +41.80. Futures trade near session highs and point to a sharply higher open . Asian markets rallied, and European markets are currently posting strong gains. In corporate news, Chrysler and GM (GM) had their credit ratings cut at Moody's, Ford's (F) rating was put on review for a downgrade. Wal-Mart (WMT) plans to cut its store expansion plans, the Wall Street Journal reports. GE (GE) used the Fed's commercial paper facility, according to reports. Boeing (BA) and its machinist union have reached a tentative four-year agreement, the Financial Times reports. In earnings news, BP (BP), Occidental Petroleum and Valero Energy (VLO) all topped expectations. Whirlpool (WHR) posted higher than expected earnings for its latest quarter, but gave downside guidance and announced 5,000 job cuts.
06:31 am : S&P futures vs fair value: +21.50. Nasdaq futures vs fair value: +32.80.
06:31 am : Nikkei...7621.92...+459.00...+6.40%. Hang Seng...12596.29...+1580.50...+14.40%.
06:31 am : FTSE...3935.91...+83.30...+2.10%. DAX...4658.45...+321.90...+7.50%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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