AI
Friday, October 31, 2008 9:22:20 PM
Market Update 081031
http://biz.yahoo.com/mu/update.html
4:35 pm : Stocks started the session in negative territory before making their way higher to tout gains in excess of 3%. Although another late selling effort pared gains, the stock market still finished higher. Friday's advance put an end to the month-long streak of failing to register back-to-back gains.
Earnings announcements were relatively light ahead of the opening bell, causing market participants to turn to other corporate announcements and economic data.
Integrated oil giant Chevron (CVX 74.60, +0.42) traded in choppy fashion after posting better-than-expected third quarter results. Its net income more than doubled, thanks largely to record high oil prices.
Oil prices were down more than 4% at their session low, but made a rallied late in the day to close roughly 3% higher near $68 per barrel. Despite the rally in crude prices, energy remained a laggard. It ended the session just 0.6% higher, up 13.3% for the week.
Tech (+0.1%) was also a notable laggard. Semiconductors fell 0.4% after Intel (INTC 16.03, -0.14) indicated current financial conditions could have a negative impact on operations.
Internet search companies Yahoo! (YHOO 12.82, -0.11) and Google (GOOG 359.36, -0.33) posted mixed results after reports suggested a business deal between the pair is looking unlikely due to regulators' requirements.
Financials emerged to provide leadership after lagging in the prior session. The sector closed 5.5% higher, more than any other sector, as every one of its industry groups advanced. Financials finished the week 11.6% higher.
Failing to participate in the gains, though, was Barclays (BCS 10.73, -2.88). Shares of the British bank sunk after it received nearly $12 billion in capital from a group of Middle East investors, according to reports.
Separately, Fed Chairman Bernanke stated in a prepared speech that the idea of privatizing GSEs and letting them compete as private mortgage insurers and securitizers has been discussed. He also stated that at least under the most stressed conditions, some form of government backstop may be necessary to ensure continued securitization of mortgages.
Many pundits continue pointing to the need to shore up the housing industry and, in turn, mortgage exposure on banks' balance sheets before the economy can get back on track.
Still, central banks continue using traditional tools to stimulate growth. Most recently, Japan's central bank announced a key overnight lending rate target cut to 0.3% from 0.5%.
In other economic data, the core PCE deflator was up 0.2%. Total PCE deflator was up 0.1%, as energy prices dipped. The third quarter employment cost index provided good news from an inflation standpoint, and with a softer labor market, there is reason to expect the favorable trend to persist.
September personal income and spending numbers were down 0.3%, reaffirming what was indicated in the advance third quarter GDP release.
For the week, investors pushed stocks more than 10% higher, whcih marks the best single-week advance in recent years. However, the stock market finished the month almost 17% lower, marking one of the worst monthly performances in decades.DJ30 +144.32 NASDAQ +22.43 SP500 +14.66 NASDAQ Adv/Vol/Dec 2147/2.48 bln/653 NYSE Adv/Vol/Dec 2268/1.57 bln/835
3:30 pm : Stocks have encountered a bout of stiff selling pressure as traders head into the session's final stretch. Each of the major indices moved sharply off their session highs.
Whether the session's gains completely roll over will only be seen in time. However, if gains are maintained, it will mark the first time the stock market registered advances for two consecutive sessions in over one month.
At its current level, the stock market is positioned to conclude the week more than 10% higher. For the month, though, the stock market is positioned to end more than 17% lower.DJ30 +93.18 NASDAQ +11.21 SP500 +10.07 NASDAQ Adv/Vol/Dec 1940/1.90 bln/803 NYSE Adv/Vol/Dec 2181/907 mln/894
3:05 pm : Stocks trade in a relatively tight range near session highs.
Market breadth is positive. Advancers outpace decliners by 19-to-6 on the NYSE and by 3-to-1 on the Nasdaq. Volume, however, is on the light side with only 783 million shares exchanging hands on the NYSE.DJ30 +235.43 NASDAQ +39.65 SP500 +26.82 NASDAQ Adv/Vol/Dec 2032/1.63 bln/702 NYSE Adv/Vol/Dec 2329/783 mln/735
2:30 pm : Crude oil prices are spiking higher, though no news item seems immediately responsible for the climb. After being down as much as 4.3%, crude is now up more than 3% to above $68 per barrel.
The stock market has pared some of its gains, but remains well above its early morning low. Shortly after the opening bell the S&P 500 had fallen to a 1.0% loss.
Fed Chairman Bernanke stated in a prepared speech that the idea of privatizing GSEs and letting them compete as private mortgage insurers and securitizers has been discussed. He also stated that at least under the most stressed conditions, some form of government backstop may be necessary to ensure continued securitization of mortgages. DJ30 +178.49 NASDAQ +28.31 SP500 +20.43 NASDAQ Adv/Vol/Dec 2008/1.50 bln/688 NYSE Adv/Vol/Dec 2273/718 mln/781
2:00 pm : Stocks have drifted off their session highs. For a moment the Dow was up 2.7%, the Nasdaq was up 2.3%, and the S&P 500 was up 2.8%.
Nine of the 10 economic sectors are trading with gains. Only the defensive-oriented utilities sector (-0.1%) has failed to join the bunch. Utilities have also logged one of the weakest week-to-date performances, advancing 7.8% since Monday. Only healthcare has fared worse by that measure, it is up 6.2% since Monday, but up 2.2% in this session alone.DJ30 +185.02 NASDAQ +31.73 SP500 +20.90 NASDAQ Adv/Vol/Dec 1994/1.35 bln/684 NYSE Adv/Vol/Dec 2240/647 mln/795
1:30 pm : Broad-based gains have taken the major indices to their highest levels of the afternoon. At their current levels, the Dow, Nasdaq, and S&P 500 are each looking to conclude the week with gains exceeding 11%.
The Dow is currently on pace for its best weekly advance in years.
As equities improve, Treasuries have been paring gains. The benchmark 10-year Note is currently up just 3 ticks after being up as many as 32 ticks.DJ30 +174.74 NASDAQ +30.61 SP500 +20.54 NASDAQ Adv/Vol/Dec 1920/1.22 bln/722 NYSE Adv/Vol/Dec 2194/580 mln/823
1:00 pm : Stocks retrace their recent downturn to add to their gains. Financials (+3.2%) continue to show leadership and challenge their session high.
Commodities are being hit with selling pressure, causing the energy sector (-0.6%) and the materials sector (-0.6%) to underperform. Much of the weakness in commodities is owed the confluence of recession-based fears and a rebound in the U.S. dollar.DJ30 +89.44 NASDAQ +14.57 SP500 +10.04 NASDAQ Adv/Vol/Dec 1791/1.09 bln/807 NYSE Adv/Vol/Dec 1977/512 mln/1019
12:30 pm : The major indices are moving downward after posting solid gains. Large-cap tech stocks are showing particular weakness and have caused the Nasdaq 100 (-0.2%) to fall back into the red.
Apple (AAPL 107.72, -3.32) is a notable laggard as its shares are hit by profit takers. The stock is down roughly 3% this session, but up 14% for the week.
Small-cap stocks are faring well as the major indices seek direction. The Russell 2000 is up 2.6% currently. It also outperformed the headline indices in the prior session. DJ30 +66.10 NASDAQ +9.77 SP500 +6.83 NASDAQ Adv/Vol/Dec 1776/988 mln/793 NYSE Adv/Vol/Dec 1962/465 mln/1006
12:05 pm : Stocks are trading with healthy gains after opening the session in negative territory. Only defensive-oriented sectors exhibited resilience early on, but now seven of the 10 economic sectors are showing gains.
Should the stock market end the session higher, it would be the first back-to-back advance in over one month. Currently, the S&P 500 is poised to conclude the week 10.0% higher, though it is facing a loss of 17% for October.
Market participants received another dose of economic data this morning. The core PCE deflator was up 0.2%. Total PCE deflator was up 0.1%, as energy prices dipped. The numbers are likely to be lower in upcoming months. Additionally, the third quarter employment cost index provided good news from an inflation standpoint. With a softer labor market, there is reason to expect the favorable trend to persist in the fourth quarter.
September personal income and spending numbers were down 0.3%, which was not surprising after yesterday's advance third quarter GDP release. Despite indications of softer consumer spending, retailers are outperforming the broader market. They are currently up 2.7% this session. Retailers are likely to benefit from lower oil prices as fewer dollars at the fuel pump means more money for discretionary purchases.
A stronger dollar is helping put pressure on oil prices. The greenback is up an impressive 1.7% this session, when measured against a basket of foreign currencies. The U.S. dollar is up 12.1% year-to-date.
The dollar's recent strength is owed to international investors seeking safety from economic turmoil. Such turmoil has prompted central banks across the globe to cut interest rates. Most recently, Japan's central bank announced a key overnight lending rate target cut to 0.3% from 0.5%.
Crude prices are down 2.5% midsession. The commodity most recently traded hands for little more than $64 per barrel.
Crude oil prices hit an all-time high of $147 per barrel in the third quarter, helping Chevron (CVX 73.85, -0.33) more than double its net income. The company posted better-than-expected third quarter results.
Elsewhere in corporate news, a search deal between Yahoo! (YHOO 13.12, +0.19) and Google (GOOG 357.83, -1.86) is looking unlikely as the companies weigh regulators' concerns and requirements.
The financial sector (+2.7%) has emerged as a leader, after trailing in recent sessions. Barclays (BCS 10.91, -2.70) is a laggard, though, after disclosing it received a nearly $12 billion capital infusion from a group of investors from the Middle East, according to reports.DJ30 +65.94 NASDAQ +12.49 SP500 +7.01 NASDAQ Adv/Vol/Dec 1790/893 mln/761 NYSE Adv/Vol/Dec 1934/424 mln/1042
11:30 am : Stocks spiked to their best level of the session, but have since curtailed gains. The advance was broad based with every economic sector participating in the move.
Despite ongoing reports indicating softer consumer spending (September personal spending down 0.3%, advance third quarter personal consumption down 3.1%), retailers have been faring well in recent sessions. Retailers, as a group, are up 2.6% this session.
Retailers providing the most leadership this session include home improvement companies Lowe's (LOW 21.18, +1.10) and Home Depot (HD 23.15, +0.43). Consumer and home electronics retailer Best Buy (BBY 26.40, +1.79) is also providing a positive influence to the group. Shares of BBY were upgraded to Neutral from Underperform by analysts at JPMorgan.
Despite dour economic data on consumer spending, lower oil prices represent a boon for buying. By spending less at the gas station consumers have more funds for discretionary items.
Oil is currently trading below $65 per barrel, down more than 2% this session. Crude futures were trading near the $63 mark at their session low.DJ30 +92.15 NASDAQ +11.01 SP500 +8.79 NASDAQ Adv/Vol/Dec 1706/724 mln/780 NYSE Adv/Vol/Dec 1884/351 mln/1047
11:00 am : Tech, which is currently the largest sector in the S&P 500, remains a notable laggard. It is currently off by 1.0% this session, and down almost 19% for the month.
Yahoo! (YHOO 13.12, +0.19) is trading higher, but is providing limited help to the overall tech sector. Yahoo's gains come despite reports that cast doubt on the possibility of a search deal with Google (GOOG 357.83, -1.86). Yahoo's interest in teaming up with Google stems from trying to improve its competitiveness in the Internet search category. However, if the deal is blocked by regulators, Yahoo could be looking for other strategic alternatives. As such, many believe Yahoo should reconsider merging with Microsoft (MSFT 22.32, -0.31), though no actual announcements regarding such a matter have been made.DJ30 -9.64 NASDAQ -4.78 SP500 -3.67 NASDAQ Adv/Vol/Dec 1471/565 mln/938 NYSE Adv/Vol/Dec 1560/280 mln/1329
10:30 am : A recent bout of buying sent stocks spiking upward, but the effort has encountered headwinds and caused stocks to ease back.
Financial stocks (+1.4%) are showing some leadership after lagging in the prior session. The sector is being led by diversified banks (+3.0%) other diversified financial service companies (+1.9%), like JPMorgan Chase (JPM 38.96, +1.34). Analysts at Merrill Lynch recently increased earnings estimates for JPMorgan.
Tech (-0.7%) remains an area of considerable weakness. Intel (INTC 15.74, -0.43) is down after disclosing that current financial conditions could have a negative impact on its operations and, therefore, its financial condition. Sun Microsystems (JAVA 4.59, -0.70) is down considerably after posting a worse-than-expected loss for its latest quarter.DJ30 +16.24 NASDAQ -8.10 SP500 +0.98 NASDAQ Adv/Vol/Dec 1171/418 mln/1132 NYSE Adv/Vol/Dec 1471/218 mln/1368
10:00 am : After slipping in each of the last three sessions, the U.S. dollar is catching a bid. The greenback, as measured by the Dollar Index, is up 1.5% this session.
The dollar's rebound has pressured the euro to fall 1.6% against the dollar, but the Japanese yen is holding up reasonably well and is nearly unchanged.
Japan's central bank announced it was cutting its unsecured overnight lending rate target to 0.3% from 0.5%. The decision comes as central banks across the globe continue to fight systemic weakness in capital and credit markets.DJ30 -38.16 NASDAQ -22.18 SP500 -6.84 NASDAQ Adv/Vol/Dec 827/231 mln/1353 NYSE Adv/Vol/Dec 1005/132 mln/1725
09:45 am : The stock market has started the session with a loss. A few of the traditionally defensive sectors are showing gains; consumer staples (+0.4%), health care (+0.2%), and telecom (+0.1%) are all advancing. The utilities sector (-1.4%) has failed to join the bunch, though, after registering some of the strongest gains in the prior session -- it closed more than 4% higher Thursday.
Month-to-date, the stock market is down nearly 19%.DJ30 -51.93 NASDAQ -20.57 SP500 -8.51 NASDAQ Adv/Dec 774/1287 NYSE Adv/Dec 903/1742
09:15 am : S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: -15.00. Stock futures are improved from earlier levels, but a downward start remains likely. Although, a lower start does not preclude stocks from making gains throughout the session.
09:03 am : S&P futures vs fair value: -0.20. Nasdaq futures vs fair value: -12.30. Stock futures continue to improve ahead of the session's start. Diversified chemical company Clorox (CLX) posted better-than-expected earnings per share results for its latest quarter. Integrated oil company Chevron (CVX) also posted strong results that exceeded Wall Street's expectations. Crude futures are trading below $65 per barrel; they were trading below $64 per barrel earlier. Overnight Libor rates continue to ease, coming in at 0.406%, down more than 32 basis points from the prior overnight rate.
08:35 am : S&P futures vs fair value: -6.60. Nasdaq futures vs fair value: -16.00. Futures are improved, but continue to indicate a negative tone. September personal income was up 0.2%, which is slightly better than the 0.1% increase that was expected. August personal income was revised lower to reflect a 0.4% increase. Personal spending was down 0.3%, which is slightly worse than the consensus estimate of a 0.2% decline. Spending in August was flat. September core personal consumption expenditures deflator were up 0.2% month-over-month and up 2.4% year-over-year. Month-over-month figures were a bit worse than the expected increase of 0.1% and the year-over-year increase was in-line with expectations. The PCE deflator was up 4.2% year-over-year, just ahead of the 4.1% increase that was expected.
08:00 am : S&P futures vs fair value: -9.90. Nasdaq futures vs fair value: -21.30. Stock futures currently indicate a relatively negative bias ahead of the session's opening bell. The Japanese central bank has cut its unsecured overnight lending rate to 0.3% from 0.5%. The move follows rate cuts by other Asian central banks yesterday. Barclays (BCS) is receiving a $12 billion capital infusion from a group of investors from the Middle East, according to reports. The Wall Street Journal is reporting that owed to regulatory concern a search deal between Yahoo! (YHOO) and Google (GOOG) is looking less likely. On the earnings front, Aon (AOC) topped earnings per share expectations, as did American Electric (AEP). Electronic Arts (ERTS) posted a loss for its latest quarter, but it was still in-line with expectations.
06:30 am : S&P futures vs fair value: -11.40. Nasdaq futures vs fair value: -26.00.
06:30 am : Nikkei...8576.98...-452.80...-5.00%. Hang Seng...13968.67...+361.20...-2.50%.
06:30 am : FTSE...4217.43...-74.20...-1.70%. DAX...4831.6...-31.70...-0.60%.
http://biz.yahoo.com/mu/update.html
4:35 pm : Stocks started the session in negative territory before making their way higher to tout gains in excess of 3%. Although another late selling effort pared gains, the stock market still finished higher. Friday's advance put an end to the month-long streak of failing to register back-to-back gains.
Earnings announcements were relatively light ahead of the opening bell, causing market participants to turn to other corporate announcements and economic data.
Integrated oil giant Chevron (CVX 74.60, +0.42) traded in choppy fashion after posting better-than-expected third quarter results. Its net income more than doubled, thanks largely to record high oil prices.
Oil prices were down more than 4% at their session low, but made a rallied late in the day to close roughly 3% higher near $68 per barrel. Despite the rally in crude prices, energy remained a laggard. It ended the session just 0.6% higher, up 13.3% for the week.
Tech (+0.1%) was also a notable laggard. Semiconductors fell 0.4% after Intel (INTC 16.03, -0.14) indicated current financial conditions could have a negative impact on operations.
Internet search companies Yahoo! (YHOO 12.82, -0.11) and Google (GOOG 359.36, -0.33) posted mixed results after reports suggested a business deal between the pair is looking unlikely due to regulators' requirements.
Financials emerged to provide leadership after lagging in the prior session. The sector closed 5.5% higher, more than any other sector, as every one of its industry groups advanced. Financials finished the week 11.6% higher.
Failing to participate in the gains, though, was Barclays (BCS 10.73, -2.88). Shares of the British bank sunk after it received nearly $12 billion in capital from a group of Middle East investors, according to reports.
Separately, Fed Chairman Bernanke stated in a prepared speech that the idea of privatizing GSEs and letting them compete as private mortgage insurers and securitizers has been discussed. He also stated that at least under the most stressed conditions, some form of government backstop may be necessary to ensure continued securitization of mortgages.
Many pundits continue pointing to the need to shore up the housing industry and, in turn, mortgage exposure on banks' balance sheets before the economy can get back on track.
Still, central banks continue using traditional tools to stimulate growth. Most recently, Japan's central bank announced a key overnight lending rate target cut to 0.3% from 0.5%.
In other economic data, the core PCE deflator was up 0.2%. Total PCE deflator was up 0.1%, as energy prices dipped. The third quarter employment cost index provided good news from an inflation standpoint, and with a softer labor market, there is reason to expect the favorable trend to persist.
September personal income and spending numbers were down 0.3%, reaffirming what was indicated in the advance third quarter GDP release.
For the week, investors pushed stocks more than 10% higher, whcih marks the best single-week advance in recent years. However, the stock market finished the month almost 17% lower, marking one of the worst monthly performances in decades.DJ30 +144.32 NASDAQ +22.43 SP500 +14.66 NASDAQ Adv/Vol/Dec 2147/2.48 bln/653 NYSE Adv/Vol/Dec 2268/1.57 bln/835
3:30 pm : Stocks have encountered a bout of stiff selling pressure as traders head into the session's final stretch. Each of the major indices moved sharply off their session highs.
Whether the session's gains completely roll over will only be seen in time. However, if gains are maintained, it will mark the first time the stock market registered advances for two consecutive sessions in over one month.
At its current level, the stock market is positioned to conclude the week more than 10% higher. For the month, though, the stock market is positioned to end more than 17% lower.DJ30 +93.18 NASDAQ +11.21 SP500 +10.07 NASDAQ Adv/Vol/Dec 1940/1.90 bln/803 NYSE Adv/Vol/Dec 2181/907 mln/894
3:05 pm : Stocks trade in a relatively tight range near session highs.
Market breadth is positive. Advancers outpace decliners by 19-to-6 on the NYSE and by 3-to-1 on the Nasdaq. Volume, however, is on the light side with only 783 million shares exchanging hands on the NYSE.DJ30 +235.43 NASDAQ +39.65 SP500 +26.82 NASDAQ Adv/Vol/Dec 2032/1.63 bln/702 NYSE Adv/Vol/Dec 2329/783 mln/735
2:30 pm : Crude oil prices are spiking higher, though no news item seems immediately responsible for the climb. After being down as much as 4.3%, crude is now up more than 3% to above $68 per barrel.
The stock market has pared some of its gains, but remains well above its early morning low. Shortly after the opening bell the S&P 500 had fallen to a 1.0% loss.
Fed Chairman Bernanke stated in a prepared speech that the idea of privatizing GSEs and letting them compete as private mortgage insurers and securitizers has been discussed. He also stated that at least under the most stressed conditions, some form of government backstop may be necessary to ensure continued securitization of mortgages. DJ30 +178.49 NASDAQ +28.31 SP500 +20.43 NASDAQ Adv/Vol/Dec 2008/1.50 bln/688 NYSE Adv/Vol/Dec 2273/718 mln/781
2:00 pm : Stocks have drifted off their session highs. For a moment the Dow was up 2.7%, the Nasdaq was up 2.3%, and the S&P 500 was up 2.8%.
Nine of the 10 economic sectors are trading with gains. Only the defensive-oriented utilities sector (-0.1%) has failed to join the bunch. Utilities have also logged one of the weakest week-to-date performances, advancing 7.8% since Monday. Only healthcare has fared worse by that measure, it is up 6.2% since Monday, but up 2.2% in this session alone.DJ30 +185.02 NASDAQ +31.73 SP500 +20.90 NASDAQ Adv/Vol/Dec 1994/1.35 bln/684 NYSE Adv/Vol/Dec 2240/647 mln/795
1:30 pm : Broad-based gains have taken the major indices to their highest levels of the afternoon. At their current levels, the Dow, Nasdaq, and S&P 500 are each looking to conclude the week with gains exceeding 11%.
The Dow is currently on pace for its best weekly advance in years.
As equities improve, Treasuries have been paring gains. The benchmark 10-year Note is currently up just 3 ticks after being up as many as 32 ticks.DJ30 +174.74 NASDAQ +30.61 SP500 +20.54 NASDAQ Adv/Vol/Dec 1920/1.22 bln/722 NYSE Adv/Vol/Dec 2194/580 mln/823
1:00 pm : Stocks retrace their recent downturn to add to their gains. Financials (+3.2%) continue to show leadership and challenge their session high.
Commodities are being hit with selling pressure, causing the energy sector (-0.6%) and the materials sector (-0.6%) to underperform. Much of the weakness in commodities is owed the confluence of recession-based fears and a rebound in the U.S. dollar.DJ30 +89.44 NASDAQ +14.57 SP500 +10.04 NASDAQ Adv/Vol/Dec 1791/1.09 bln/807 NYSE Adv/Vol/Dec 1977/512 mln/1019
12:30 pm : The major indices are moving downward after posting solid gains. Large-cap tech stocks are showing particular weakness and have caused the Nasdaq 100 (-0.2%) to fall back into the red.
Apple (AAPL 107.72, -3.32) is a notable laggard as its shares are hit by profit takers. The stock is down roughly 3% this session, but up 14% for the week.
Small-cap stocks are faring well as the major indices seek direction. The Russell 2000 is up 2.6% currently. It also outperformed the headline indices in the prior session. DJ30 +66.10 NASDAQ +9.77 SP500 +6.83 NASDAQ Adv/Vol/Dec 1776/988 mln/793 NYSE Adv/Vol/Dec 1962/465 mln/1006
12:05 pm : Stocks are trading with healthy gains after opening the session in negative territory. Only defensive-oriented sectors exhibited resilience early on, but now seven of the 10 economic sectors are showing gains.
Should the stock market end the session higher, it would be the first back-to-back advance in over one month. Currently, the S&P 500 is poised to conclude the week 10.0% higher, though it is facing a loss of 17% for October.
Market participants received another dose of economic data this morning. The core PCE deflator was up 0.2%. Total PCE deflator was up 0.1%, as energy prices dipped. The numbers are likely to be lower in upcoming months. Additionally, the third quarter employment cost index provided good news from an inflation standpoint. With a softer labor market, there is reason to expect the favorable trend to persist in the fourth quarter.
September personal income and spending numbers were down 0.3%, which was not surprising after yesterday's advance third quarter GDP release. Despite indications of softer consumer spending, retailers are outperforming the broader market. They are currently up 2.7% this session. Retailers are likely to benefit from lower oil prices as fewer dollars at the fuel pump means more money for discretionary purchases.
A stronger dollar is helping put pressure on oil prices. The greenback is up an impressive 1.7% this session, when measured against a basket of foreign currencies. The U.S. dollar is up 12.1% year-to-date.
The dollar's recent strength is owed to international investors seeking safety from economic turmoil. Such turmoil has prompted central banks across the globe to cut interest rates. Most recently, Japan's central bank announced a key overnight lending rate target cut to 0.3% from 0.5%.
Crude prices are down 2.5% midsession. The commodity most recently traded hands for little more than $64 per barrel.
Crude oil prices hit an all-time high of $147 per barrel in the third quarter, helping Chevron (CVX 73.85, -0.33) more than double its net income. The company posted better-than-expected third quarter results.
Elsewhere in corporate news, a search deal between Yahoo! (YHOO 13.12, +0.19) and Google (GOOG 357.83, -1.86) is looking unlikely as the companies weigh regulators' concerns and requirements.
The financial sector (+2.7%) has emerged as a leader, after trailing in recent sessions. Barclays (BCS 10.91, -2.70) is a laggard, though, after disclosing it received a nearly $12 billion capital infusion from a group of investors from the Middle East, according to reports.DJ30 +65.94 NASDAQ +12.49 SP500 +7.01 NASDAQ Adv/Vol/Dec 1790/893 mln/761 NYSE Adv/Vol/Dec 1934/424 mln/1042
11:30 am : Stocks spiked to their best level of the session, but have since curtailed gains. The advance was broad based with every economic sector participating in the move.
Despite ongoing reports indicating softer consumer spending (September personal spending down 0.3%, advance third quarter personal consumption down 3.1%), retailers have been faring well in recent sessions. Retailers, as a group, are up 2.6% this session.
Retailers providing the most leadership this session include home improvement companies Lowe's (LOW 21.18, +1.10) and Home Depot (HD 23.15, +0.43). Consumer and home electronics retailer Best Buy (BBY 26.40, +1.79) is also providing a positive influence to the group. Shares of BBY were upgraded to Neutral from Underperform by analysts at JPMorgan.
Despite dour economic data on consumer spending, lower oil prices represent a boon for buying. By spending less at the gas station consumers have more funds for discretionary items.
Oil is currently trading below $65 per barrel, down more than 2% this session. Crude futures were trading near the $63 mark at their session low.DJ30 +92.15 NASDAQ +11.01 SP500 +8.79 NASDAQ Adv/Vol/Dec 1706/724 mln/780 NYSE Adv/Vol/Dec 1884/351 mln/1047
11:00 am : Tech, which is currently the largest sector in the S&P 500, remains a notable laggard. It is currently off by 1.0% this session, and down almost 19% for the month.
Yahoo! (YHOO 13.12, +0.19) is trading higher, but is providing limited help to the overall tech sector. Yahoo's gains come despite reports that cast doubt on the possibility of a search deal with Google (GOOG 357.83, -1.86). Yahoo's interest in teaming up with Google stems from trying to improve its competitiveness in the Internet search category. However, if the deal is blocked by regulators, Yahoo could be looking for other strategic alternatives. As such, many believe Yahoo should reconsider merging with Microsoft (MSFT 22.32, -0.31), though no actual announcements regarding such a matter have been made.DJ30 -9.64 NASDAQ -4.78 SP500 -3.67 NASDAQ Adv/Vol/Dec 1471/565 mln/938 NYSE Adv/Vol/Dec 1560/280 mln/1329
10:30 am : A recent bout of buying sent stocks spiking upward, but the effort has encountered headwinds and caused stocks to ease back.
Financial stocks (+1.4%) are showing some leadership after lagging in the prior session. The sector is being led by diversified banks (+3.0%) other diversified financial service companies (+1.9%), like JPMorgan Chase (JPM 38.96, +1.34). Analysts at Merrill Lynch recently increased earnings estimates for JPMorgan.
Tech (-0.7%) remains an area of considerable weakness. Intel (INTC 15.74, -0.43) is down after disclosing that current financial conditions could have a negative impact on its operations and, therefore, its financial condition. Sun Microsystems (JAVA 4.59, -0.70) is down considerably after posting a worse-than-expected loss for its latest quarter.DJ30 +16.24 NASDAQ -8.10 SP500 +0.98 NASDAQ Adv/Vol/Dec 1171/418 mln/1132 NYSE Adv/Vol/Dec 1471/218 mln/1368
10:00 am : After slipping in each of the last three sessions, the U.S. dollar is catching a bid. The greenback, as measured by the Dollar Index, is up 1.5% this session.
The dollar's rebound has pressured the euro to fall 1.6% against the dollar, but the Japanese yen is holding up reasonably well and is nearly unchanged.
Japan's central bank announced it was cutting its unsecured overnight lending rate target to 0.3% from 0.5%. The decision comes as central banks across the globe continue to fight systemic weakness in capital and credit markets.DJ30 -38.16 NASDAQ -22.18 SP500 -6.84 NASDAQ Adv/Vol/Dec 827/231 mln/1353 NYSE Adv/Vol/Dec 1005/132 mln/1725
09:45 am : The stock market has started the session with a loss. A few of the traditionally defensive sectors are showing gains; consumer staples (+0.4%), health care (+0.2%), and telecom (+0.1%) are all advancing. The utilities sector (-1.4%) has failed to join the bunch, though, after registering some of the strongest gains in the prior session -- it closed more than 4% higher Thursday.
Month-to-date, the stock market is down nearly 19%.DJ30 -51.93 NASDAQ -20.57 SP500 -8.51 NASDAQ Adv/Dec 774/1287 NYSE Adv/Dec 903/1742
09:15 am : S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: -15.00. Stock futures are improved from earlier levels, but a downward start remains likely. Although, a lower start does not preclude stocks from making gains throughout the session.
09:03 am : S&P futures vs fair value: -0.20. Nasdaq futures vs fair value: -12.30. Stock futures continue to improve ahead of the session's start. Diversified chemical company Clorox (CLX) posted better-than-expected earnings per share results for its latest quarter. Integrated oil company Chevron (CVX) also posted strong results that exceeded Wall Street's expectations. Crude futures are trading below $65 per barrel; they were trading below $64 per barrel earlier. Overnight Libor rates continue to ease, coming in at 0.406%, down more than 32 basis points from the prior overnight rate.
08:35 am : S&P futures vs fair value: -6.60. Nasdaq futures vs fair value: -16.00. Futures are improved, but continue to indicate a negative tone. September personal income was up 0.2%, which is slightly better than the 0.1% increase that was expected. August personal income was revised lower to reflect a 0.4% increase. Personal spending was down 0.3%, which is slightly worse than the consensus estimate of a 0.2% decline. Spending in August was flat. September core personal consumption expenditures deflator were up 0.2% month-over-month and up 2.4% year-over-year. Month-over-month figures were a bit worse than the expected increase of 0.1% and the year-over-year increase was in-line with expectations. The PCE deflator was up 4.2% year-over-year, just ahead of the 4.1% increase that was expected.
08:00 am : S&P futures vs fair value: -9.90. Nasdaq futures vs fair value: -21.30. Stock futures currently indicate a relatively negative bias ahead of the session's opening bell. The Japanese central bank has cut its unsecured overnight lending rate to 0.3% from 0.5%. The move follows rate cuts by other Asian central banks yesterday. Barclays (BCS) is receiving a $12 billion capital infusion from a group of investors from the Middle East, according to reports. The Wall Street Journal is reporting that owed to regulatory concern a search deal between Yahoo! (YHOO) and Google (GOOG) is looking less likely. On the earnings front, Aon (AOC) topped earnings per share expectations, as did American Electric (AEP). Electronic Arts (ERTS) posted a loss for its latest quarter, but it was still in-line with expectations.
06:30 am : S&P futures vs fair value: -11.40. Nasdaq futures vs fair value: -26.00.
06:30 am : Nikkei...8576.98...-452.80...-5.00%. Hang Seng...13968.67...+361.20...-2.50%.
06:30 am : FTSE...4217.43...-74.20...-1.70%. DAX...4831.6...-31.70...-0.60%.
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