AI
Wednesday, November 05, 2008 6:44:31 PM
Market Update 081105
http://biz.yahoo.com/mu/update.html
4:15 pm : On Wednesday, stocks tumbled 5.3%, ending at session lows in broad-based weakness. The decline was driven by profit taking, and discouraging economic data on employment and the services sector. Meanwhile, investors digested Barack Obama winning the presidency and other election results.
According to the ADP national employment report, nonfarm private employment declined by 157,000 in October, which is the largest decline since 2002. The result was worse than the expected drop of 100,000. September was revised to a decrease of 26,000 from a decrease of 8,000. The ADP data have had a spotty track record compared to the government's report, which includes both public and private nonfarm payrolls, and is set for release on Friday.
The services sector contracted by the most since at least 1997 and the sixth time this year, according Institute for Supply Management's national nonmanufacturing survey, which dates back to 1997. Specifically, the October ISM Services Index registered 44.4 in October, 2.6 worse than expected and 5.8 lower than the 50.2 reading in September. A reading below 50 is intended to imply contraction in the services sector.
In corporate news, Google (GOOG 342.57, -24.37) announced on its blog that it decided to end its advertising agreement with Yahoo! (YHOO 13.93, +0.58) after it became clear that government regulators and some advertisers continued to have concern about the pact. Google traded down on the news, while Yahoo saw a boost as traders speculated this may open the door to another Microsoft (MSFT 22.07, -1.46) offer.
All ten of the economic sectors posted a loss.
Financials (-8.8%) were the main laggard. A wider-than-expected quarterly losses from bond insurers Ambac (ABK 2.06, -1.34) and MBIA (MBI 8.31, -2.15) along with a disappointing earnings and outlook from REIT General Growth Properties (GGP 2.09, -2.40) added to selling interest.
The energy sector fell 4.6% as crude prices plunged 7.4% to $65.28 per barrel. The drop in oil prices was fueled by economic concerns and weekly energy inventory data that showed the sixth increase in crude stockpiles and an increase in gasoline levels.
Quarterly earnings results were mixed, with outlooks leaning negative. Some notable companies that reported worse-than-expected earnings include Arcelor Mittal (MT 25.16, -6.54), Duke Energy (DUK 15.61, -1.31), Marsh McLennan (MMC 26.07, -3.63), MBIA (MBI 8.31, -2.15), Molson Coors (TAP 41.87, +3.29) and Transocean (RIG 80.61, -3.91).
Devon Energy (DVN 79.64, -3.36), Medco Health Solutions (MHS 41.45, +3.45), Polo Ralph Lauren (RL 48.54, -0.97), Sara Lee (SLE 10.22, -1.64), and Time Warner (TWX 10.15, -0.68) beat in their latest quarters.
The S&P 500 is now down 1.7% this week, but is still up 13.5% from its Oct. 10 multi-year low. It is down 37.5% this year.DJ30 -486.01 NASDAQ -98.48 NQ100 -5.7% R2K -5.7% SP400 -5.1% SP500 -52.98 NASDAQ Adv/Vol/Dec 534/2.18 bln/2232 NYSE Adv/Vol/Dec 603/1.31 bln/2490
3:30 pm : The stock market establishes a fresh session low going into the final half-hour of trade. Week-to-date, the Dow, Nasdaq and S&P 500 are down 1.1%, 1.0%, 0.7%, respectively.
The decline is broad-based with all ten economic sectors at or near intraday lows. Losses range from 2.6% (consumer staples) to 6.5% (Financials).
Tomorrow, the market will digest a barrage of earnings, including tech bellwether Cisco (CSCO 17.39, -0.94). In addition, retailers will be reporting October same-store sales. On the economic front, the weekly initial jobless claims number and the preliminary third quarter productivity reading will be released at 8:30 AM ET. Overseas central banks are expected to announce rate cuts tomorrow, including the European Central Bank, the Bank of England and the Bank of Korea.DJ30 -387.81 NASDAQ -74.52 SP500 -42.01 NASDAQ Adv/Vol/Dec 560/1.68 bln/2191 NYSE Adv/Vol/Dec 677/848 mln/2387
3:00 pm : The S&P 500 posts a steep loss of more than 3%.
Of the 133 S&P 500 industry groups, only three are posting a gain -- health care services (+3.6%), managed health care (+1.3%) and agricultural products (+0.8%). The worst performing groups are forest products (-12.1%), construction and engineering (-10.0%) and tires and rubber (-9.6%).DJ30 -308.95 NASDAQ -61.41 SP500 -33.69 NASDAQ Adv/Vol/Dec 638/1.53 bln/2087 NYSE Adv/Vol/Dec 788/771 mln/2259
2:30 pm : Stocks fall to fresh flows as financials (-4.9%) come under additional selling pressure.
Within the S&P 500, 472 stocks are posting a decline. The main laggards are Exxon Mobil (XOM 74.99, -2.50) and AT&T (T 27.66, -1.62). Medco Health Solutions (MHS 42.02, +4.02) and Chesapeake Energy (CHK 25.63, +2.67) are providing leadership.DJ30 -331.41 NASDAQ -67.20 SP500 -35.37 NASDAQ Adv/Vol/Dec 585/1.39 bln/2123 NYSE Adv/Vol/Dec 697/701 mln/2350
2:00 pm : Stocks trade near session lows. Market breadth is negative. Decliners outpace advancers by 3-to-1 on they NYSE and by 19-to-6 on the Nasdaq. Volume is on the light side.
A Yahoo! (YHOO 14.08, +0.73) spokesperson said there is no truth to the rumor that it will announce a deal with Microsoft (MSFT 22.70, -0.83) on Wednesday, Reuters reported.DJ30 -312.56 NASDAQ -62.12 SP500 -33.99 NASDAQ Adv/Vol/Dec 646/1.25 bln/2044 NYSE Adv/Vol/Dec 740/633 mln/2300
1:30 pm : The major indices remain near session lows with steep losses.
OPEC may cut crude output by 1.1 million barrels per day by January, which is equal to 70% of the cartel's announced output cut, according to the EIA, Reuters reported. Crude prices are down 6.7% this session, and have plunged 55% since July 11.
General Motors (GM 5.87, +0.15) is expected to announce on Friday "important changes" to its automotive operations, the Detroit News reported, citing an internal GM e-mail.DJ30 -290.56 NASDAQ -56.20 SP500 -31.14 NASDAQ Adv/Vol/Dec 633/1.15 bln/2294 NYSE Adv/Vol/Dec 731/582 mln/2294
1:00 pm : The major indices remain under pressure, trading near their recently reached session lows.
The financial sector has been hit especially hard (-4.2%). Retail REITs are down 8% following disappointing results from General Growth Properties (GGP 2.53, -1.96). Investment banks and brokerages are down 5.1%. Meanwhile, bond insurers MBIA (MBI 8.38, -2.08) and Ambac (ABK 2.29, -1.11) are getting hammered after reporting larger-than-expected quarterly losses.DJ30 -287.96 NASDAQ -54.71 SP500 -30.96 NASDAQ Adv/Vol/Dec 610/1.05 bln/2054 NYSE Adv/Vol/Dec 708/539 mln/2306
12:25 pm : Stocks extend their declines in broad-based weakness. Only the energy and material sectors have not hit session lows in the past half-hour.
House Speaker Pelosi said a stimulus plan is being discussed with the White House, and she hopes a plan will be considered soon.DJ30 -219.59 NASDAQ -46.85 SP500 -23.18 NASDAQ Adv/Vol/Dec 687/902 mln/1939 NYSE Adv/Vol/Dec 797/473 mln/2182
12:00 pm : The stock market is succumbing to profit-taking as investors digest the election results. Disappointing private employment and services sector reports are adding to the selling interest.
At midday, the S&P 500 is down 2.0%, which is near recently reached lows.
According to the ADP national employment report, nonfarm private employment declined by 157,000 in October. A drop of 100,000 was expected. September was revised to a decrease of 26,000 from a decrease of 8,000. The ADP data have had a spotty track record compared to the government's report, which includes both public and private nonfarm payrolls, and is set for release on Friday.
The October ISM Services Index, a national nonmanufacturing survey, registered 44.4 in October, 2.6 worse than expected and 5.8 lower than the 50.2 reading in September. This marks the lowest level on record, which dates back to 1997. Because the result is below 50, it indicates contraction in the services sector -- the sixth month of contraction in 2008.
In corporate news, Google (GOOG 353.88, -13.06) announced on its blog that it decided to end its advertising agreement with Yahoo! (YHOO 14.33, +0.98) after it became clear that government regulators and some advertisers continued to have concern about the pact. Google traded down on the news, while Yahoo saw a boost as traders speculated this may open the door to another Microsoft (MSFT 22.86, -0.67) offer.
Earnings have been mixed, and once again outlooks have leaned negative. Ambac (ABK 2.48, -0.92), Arcelor Mittal (MT 26.47, -5.23), Duke Energy (DUK 15.92, -1.00), Marsh McLennan (MMC 26.99, -2.71), MBIA (MBI 8.35, -2.11), Molson Coors (TAP 40.62, +2.04) and Transocean (RIG 81.10, -3.42) all missed estimates for their latest quarters. Devon Energy (DVN 80.35, -2.65), Medco Health Solutions (MHS 41.77, +3.76), Polo Ralph Lauren (RL 50.12, +0.61), Sara Lee (SLE 10.37, -1.49), and Time Warner (TWX 10.99, +0.16) beat in their latest quarters.
Oil prices have tumbled 7.1% to $65.50. The government's weekly report showed a smaller-than-expected increase in crude stockpiles, which was offset by an unexpected increase in gasoline inventories.
All ten economic sectors are posting a loss. Telecom (-2.8%), financials (-2.7%) and energy (-2.2%) are the main laggards. The consumer staples (-1.0%) sector is outperforming on a relative basis. DJ30 -203.82 NASDAQ -38.85 NQ100 -2.4% R2K -2.1% SP400 -2.1% SP500 -19.84 NASDAQ Adv/Vol/Dec 769/806 mln/1816 NYSE Adv/Vol/Dec 892/426 mln/2053
11:30 am : The stock market trades with a loss, with the Nasdaq hitting a fresh session low. Google (GOOG 354.99, -11.95) is one of the main laggards within the Nasdaq, with shares dropping on news it will no longer partner with Yahoo! (YHOO 14.06, +0.72).
Crude prices have sharply declined to a 6.2% loss at $66.23 per barrel. The government's weekly report showed a smaller-than-expected increase in crude stockpiles, which was offset by an unexpected increase in gasoline inventory. RBOB gas prices are down 6.1%.DJ30 -150.85 NASDAQ -31.58 SP500 -15.84 NASDAQ Adv/Vol/Dec 801/682 mln/1748 NYSE Adv/Vol/Dec 986/365 mln/1924
11:00 am : The recovery effort runs into resistance, sending the stock market back on the retreat.
Pharmacy management service company MedcoHealth Solutions (MHS 42.58, +4.58) is one of the best-performing S&P 500 stocks this session after reporting better-than-expected third quarter revenue and earnings. Other notable gainers in reaction to earnings include Time Warner (TWX 11.06, +0.23), Hospira (HSP 31.49, +2.84) and Molson Coors Brewing (TAP 40.73, +2.15).
Conversely, General Growth Properties (GGP 3.17, -1.32) is one of the worst-performing stocks after the REIT posted third quarter revenue and earnings that missed estimates, and gave downside guidance for fiscal year 2008. Other losers in reaction to earnings include Duke Energy (DUK 16.05, -0.87), MBIA (MBI 8.18, -2.28), Sara Lee (SLE 10.49, -1.37), March & McLennan (MMC 27.28, -2.42).DJ30 -135.08 NASDAQ -26.08 SP500 -12.42 NASDAQ Adv/Vol/Dec 855/548 mln/1631 NYSE Adv/Vol/Dec 1103/299 mln/1762
10:35 am : Just hitting the wires, crude oil inventories for the week ended Nov. 1 rose by 54,000 barrels. An increase of 1.0 million barrels was expected. Gasoline inventories rose by 1.1 million barrels. Crude prices were down 1.7% to $69.26 per barrel just prior to the announcement.
The Fed said it will alter the formulas used to determine interest paid to depository institutions on required reserve balances and excess reserve balances in an effort to keep the effective fed funds rate closer to the FOMC's target rate. The interest paid will now be slightly higher.
Google (GOOG 359.91, -7.03) announced on its blog that it decided to end its advertising agreement with Yahoo! (YHOO 13.95, +0.60) after it became clear after four months of review that government regulators and some advertisers continued to have concern about the pact. Google and Yahoo had delayed the implementation of the deal to give regulators the chance to review it. Google traded down on the news, while Yahoo saw a boost as traders speculated this may open the door to another Microsoft (MSFT 23.17, -0.36) offer.
The stock market pares about half of its losses in a recovery effort led by the energy sector (unch).DJ30 -99.48 NASDAQ -19.13 SP500 -8.79 NASDAQ Adv/Vol/Dec 917/437 mln/1510 NYSE Adv/Vol/Dec 1136/241 mln/1683
10:05 am : The October ISM Services Index, a nonmanufacturing survey, registered 44.4 in October, 2.6 worse than expected and 5.8 lower than the 50.2 reading in September. This marks the lowest level on record, which dates back to 1997. Because the result is below 50, it indicates contraction in the services sector -- the sixth month of contraction in 2008.
The stock market remains in the red and has a mostly muted reaction to the data. All ten of the economic sectors are in negative territory. Two of the largest gainers yesterday -- materials (-3.3%) and energy (-3.3%) -- are laggards this session. Longer-term Treasuries catch a bid for the second day in a row, with the 10-year note up five ticks and the 30-year bond up 15 ticks.DJ30 -156.03 NASDAQ -25.35 SP500 -15.05 NASDAQ Adv/Vol/Dec 623/218 mln/1671 NYSE Adv/Vol/Dec 619/135 mln/2119
09:35 am : Stocks open in the red as traders take profits following Tuesday's rally. Investors are digesting the election results, including more speculation on how an Obama administration will impact the stock market.
Economic news added to the selling interest this morning. According to the ADP national employment report, nonfarm private employment declined by 157,000 in October. A decline of 100,000 was expected. September was revised to a decline of 26,000 from a decline of 8,000.
Oil prices are down 3.5% to $68.08 per barrel ahead of the government's weekly energy report at 10:35 AM ET.DJ30 -144.24 NASDAQ -26.85 SP500 -16.42
09:17 am : S&P futures vs fair value: -15.10. Nasdaq futures vs fair value: -19.30.
09:00 am : S&P futures vs fair value: -14.40. Nasdaq futures vs fair value: -19.00.
08:32 am : S&P futures vs fair value: -17.40. Nasdaq futures vs fair value: -23.00. A lower start is expected. GMAC reported a third quarter net loss of $2.5 billion, versus a net loss of $1.6 billion in the previous year. The result was due to a loss at Residential Capital and pressure in GMAC's automotive finance operation. The company said absent economic support from GMAC, substantial doubt exists regarding ResCap's ability to continue as a going concern.lower start is expected. Separately, Polo Ralph Lauren (RL) reported better than expected third quarter earnings.
08:15 am : S&P futures vs fair value: -18.80. Nasdaq futures vs fair value: -23.50. Futures give up a few points following worse-than-expected jobs data. According to the ADP national employment report, nonfarm private employment declined by 157,000 in October. A decline of 100,000 was expected. September was revised to a decline of 26,000 from a decline of 8,000. The ADP data have had a spotty track record compared to the government's report, which includes both public and private nonfarm payrolls, and is set for release on Friday.
08:00 am : S&P futures vs fair value: -14.40. Nasdaq futures vs fair value: -17.80. Stock futures suggest a lower start as investors take profits following yesterday's strong gain. Market participants are digesting election results, with continued talks of what Barack Obama means for the stock market. In earnings news, Sara Lee (SLE), Devon Energy (DVN), Time Warner (TWX) and Time Warner Cable (TWC) all reported larger than expected earnings per share gains. Arcelor Mittal (MT), Duke Energy (DUK), and Transocean (RIG) missed earnings estimates. Bond insurers Ambac (ABK) and MBIA (MBI) reported wider than expected quarterly losses. On the economic front, the October ADP private employment report will be released at 8:15 PM ET and the October ISM Services Index at 10:00 AM ET. In addition, the government will release its weekly energy inventory report at 10:35 AM ET.
06:36 am : S&P futures vs fair value: -13.40. Nasdaq futures vs fair value: -14.80.
06:36 am : Nikkei...9521.24...+406.60...+4.50%. Hang Seng...14840.16...+455.80...+3.20%.
06:36 am : FTSE...4551.02...-88.50...-1.90%. DAX...5211.79...-66.10...-1.20%.
http://biz.yahoo.com/mu/update.html
4:15 pm : On Wednesday, stocks tumbled 5.3%, ending at session lows in broad-based weakness. The decline was driven by profit taking, and discouraging economic data on employment and the services sector. Meanwhile, investors digested Barack Obama winning the presidency and other election results.
According to the ADP national employment report, nonfarm private employment declined by 157,000 in October, which is the largest decline since 2002. The result was worse than the expected drop of 100,000. September was revised to a decrease of 26,000 from a decrease of 8,000. The ADP data have had a spotty track record compared to the government's report, which includes both public and private nonfarm payrolls, and is set for release on Friday.
The services sector contracted by the most since at least 1997 and the sixth time this year, according Institute for Supply Management's national nonmanufacturing survey, which dates back to 1997. Specifically, the October ISM Services Index registered 44.4 in October, 2.6 worse than expected and 5.8 lower than the 50.2 reading in September. A reading below 50 is intended to imply contraction in the services sector.
In corporate news, Google (GOOG 342.57, -24.37) announced on its blog that it decided to end its advertising agreement with Yahoo! (YHOO 13.93, +0.58) after it became clear that government regulators and some advertisers continued to have concern about the pact. Google traded down on the news, while Yahoo saw a boost as traders speculated this may open the door to another Microsoft (MSFT 22.07, -1.46) offer.
All ten of the economic sectors posted a loss.
Financials (-8.8%) were the main laggard. A wider-than-expected quarterly losses from bond insurers Ambac (ABK 2.06, -1.34) and MBIA (MBI 8.31, -2.15) along with a disappointing earnings and outlook from REIT General Growth Properties (GGP 2.09, -2.40) added to selling interest.
The energy sector fell 4.6% as crude prices plunged 7.4% to $65.28 per barrel. The drop in oil prices was fueled by economic concerns and weekly energy inventory data that showed the sixth increase in crude stockpiles and an increase in gasoline levels.
Quarterly earnings results were mixed, with outlooks leaning negative. Some notable companies that reported worse-than-expected earnings include Arcelor Mittal (MT 25.16, -6.54), Duke Energy (DUK 15.61, -1.31), Marsh McLennan (MMC 26.07, -3.63), MBIA (MBI 8.31, -2.15), Molson Coors (TAP 41.87, +3.29) and Transocean (RIG 80.61, -3.91).
Devon Energy (DVN 79.64, -3.36), Medco Health Solutions (MHS 41.45, +3.45), Polo Ralph Lauren (RL 48.54, -0.97), Sara Lee (SLE 10.22, -1.64), and Time Warner (TWX 10.15, -0.68) beat in their latest quarters.
The S&P 500 is now down 1.7% this week, but is still up 13.5% from its Oct. 10 multi-year low. It is down 37.5% this year.DJ30 -486.01 NASDAQ -98.48 NQ100 -5.7% R2K -5.7% SP400 -5.1% SP500 -52.98 NASDAQ Adv/Vol/Dec 534/2.18 bln/2232 NYSE Adv/Vol/Dec 603/1.31 bln/2490
3:30 pm : The stock market establishes a fresh session low going into the final half-hour of trade. Week-to-date, the Dow, Nasdaq and S&P 500 are down 1.1%, 1.0%, 0.7%, respectively.
The decline is broad-based with all ten economic sectors at or near intraday lows. Losses range from 2.6% (consumer staples) to 6.5% (Financials).
Tomorrow, the market will digest a barrage of earnings, including tech bellwether Cisco (CSCO 17.39, -0.94). In addition, retailers will be reporting October same-store sales. On the economic front, the weekly initial jobless claims number and the preliminary third quarter productivity reading will be released at 8:30 AM ET. Overseas central banks are expected to announce rate cuts tomorrow, including the European Central Bank, the Bank of England and the Bank of Korea.DJ30 -387.81 NASDAQ -74.52 SP500 -42.01 NASDAQ Adv/Vol/Dec 560/1.68 bln/2191 NYSE Adv/Vol/Dec 677/848 mln/2387
3:00 pm : The S&P 500 posts a steep loss of more than 3%.
Of the 133 S&P 500 industry groups, only three are posting a gain -- health care services (+3.6%), managed health care (+1.3%) and agricultural products (+0.8%). The worst performing groups are forest products (-12.1%), construction and engineering (-10.0%) and tires and rubber (-9.6%).DJ30 -308.95 NASDAQ -61.41 SP500 -33.69 NASDAQ Adv/Vol/Dec 638/1.53 bln/2087 NYSE Adv/Vol/Dec 788/771 mln/2259
2:30 pm : Stocks fall to fresh flows as financials (-4.9%) come under additional selling pressure.
Within the S&P 500, 472 stocks are posting a decline. The main laggards are Exxon Mobil (XOM 74.99, -2.50) and AT&T (T 27.66, -1.62). Medco Health Solutions (MHS 42.02, +4.02) and Chesapeake Energy (CHK 25.63, +2.67) are providing leadership.DJ30 -331.41 NASDAQ -67.20 SP500 -35.37 NASDAQ Adv/Vol/Dec 585/1.39 bln/2123 NYSE Adv/Vol/Dec 697/701 mln/2350
2:00 pm : Stocks trade near session lows. Market breadth is negative. Decliners outpace advancers by 3-to-1 on they NYSE and by 19-to-6 on the Nasdaq. Volume is on the light side.
A Yahoo! (YHOO 14.08, +0.73) spokesperson said there is no truth to the rumor that it will announce a deal with Microsoft (MSFT 22.70, -0.83) on Wednesday, Reuters reported.DJ30 -312.56 NASDAQ -62.12 SP500 -33.99 NASDAQ Adv/Vol/Dec 646/1.25 bln/2044 NYSE Adv/Vol/Dec 740/633 mln/2300
1:30 pm : The major indices remain near session lows with steep losses.
OPEC may cut crude output by 1.1 million barrels per day by January, which is equal to 70% of the cartel's announced output cut, according to the EIA, Reuters reported. Crude prices are down 6.7% this session, and have plunged 55% since July 11.
General Motors (GM 5.87, +0.15) is expected to announce on Friday "important changes" to its automotive operations, the Detroit News reported, citing an internal GM e-mail.DJ30 -290.56 NASDAQ -56.20 SP500 -31.14 NASDAQ Adv/Vol/Dec 633/1.15 bln/2294 NYSE Adv/Vol/Dec 731/582 mln/2294
1:00 pm : The major indices remain under pressure, trading near their recently reached session lows.
The financial sector has been hit especially hard (-4.2%). Retail REITs are down 8% following disappointing results from General Growth Properties (GGP 2.53, -1.96). Investment banks and brokerages are down 5.1%. Meanwhile, bond insurers MBIA (MBI 8.38, -2.08) and Ambac (ABK 2.29, -1.11) are getting hammered after reporting larger-than-expected quarterly losses.DJ30 -287.96 NASDAQ -54.71 SP500 -30.96 NASDAQ Adv/Vol/Dec 610/1.05 bln/2054 NYSE Adv/Vol/Dec 708/539 mln/2306
12:25 pm : Stocks extend their declines in broad-based weakness. Only the energy and material sectors have not hit session lows in the past half-hour.
House Speaker Pelosi said a stimulus plan is being discussed with the White House, and she hopes a plan will be considered soon.DJ30 -219.59 NASDAQ -46.85 SP500 -23.18 NASDAQ Adv/Vol/Dec 687/902 mln/1939 NYSE Adv/Vol/Dec 797/473 mln/2182
12:00 pm : The stock market is succumbing to profit-taking as investors digest the election results. Disappointing private employment and services sector reports are adding to the selling interest.
At midday, the S&P 500 is down 2.0%, which is near recently reached lows.
According to the ADP national employment report, nonfarm private employment declined by 157,000 in October. A drop of 100,000 was expected. September was revised to a decrease of 26,000 from a decrease of 8,000. The ADP data have had a spotty track record compared to the government's report, which includes both public and private nonfarm payrolls, and is set for release on Friday.
The October ISM Services Index, a national nonmanufacturing survey, registered 44.4 in October, 2.6 worse than expected and 5.8 lower than the 50.2 reading in September. This marks the lowest level on record, which dates back to 1997. Because the result is below 50, it indicates contraction in the services sector -- the sixth month of contraction in 2008.
In corporate news, Google (GOOG 353.88, -13.06) announced on its blog that it decided to end its advertising agreement with Yahoo! (YHOO 14.33, +0.98) after it became clear that government regulators and some advertisers continued to have concern about the pact. Google traded down on the news, while Yahoo saw a boost as traders speculated this may open the door to another Microsoft (MSFT 22.86, -0.67) offer.
Earnings have been mixed, and once again outlooks have leaned negative. Ambac (ABK 2.48, -0.92), Arcelor Mittal (MT 26.47, -5.23), Duke Energy (DUK 15.92, -1.00), Marsh McLennan (MMC 26.99, -2.71), MBIA (MBI 8.35, -2.11), Molson Coors (TAP 40.62, +2.04) and Transocean (RIG 81.10, -3.42) all missed estimates for their latest quarters. Devon Energy (DVN 80.35, -2.65), Medco Health Solutions (MHS 41.77, +3.76), Polo Ralph Lauren (RL 50.12, +0.61), Sara Lee (SLE 10.37, -1.49), and Time Warner (TWX 10.99, +0.16) beat in their latest quarters.
Oil prices have tumbled 7.1% to $65.50. The government's weekly report showed a smaller-than-expected increase in crude stockpiles, which was offset by an unexpected increase in gasoline inventories.
All ten economic sectors are posting a loss. Telecom (-2.8%), financials (-2.7%) and energy (-2.2%) are the main laggards. The consumer staples (-1.0%) sector is outperforming on a relative basis. DJ30 -203.82 NASDAQ -38.85 NQ100 -2.4% R2K -2.1% SP400 -2.1% SP500 -19.84 NASDAQ Adv/Vol/Dec 769/806 mln/1816 NYSE Adv/Vol/Dec 892/426 mln/2053
11:30 am : The stock market trades with a loss, with the Nasdaq hitting a fresh session low. Google (GOOG 354.99, -11.95) is one of the main laggards within the Nasdaq, with shares dropping on news it will no longer partner with Yahoo! (YHOO 14.06, +0.72).
Crude prices have sharply declined to a 6.2% loss at $66.23 per barrel. The government's weekly report showed a smaller-than-expected increase in crude stockpiles, which was offset by an unexpected increase in gasoline inventory. RBOB gas prices are down 6.1%.DJ30 -150.85 NASDAQ -31.58 SP500 -15.84 NASDAQ Adv/Vol/Dec 801/682 mln/1748 NYSE Adv/Vol/Dec 986/365 mln/1924
11:00 am : The recovery effort runs into resistance, sending the stock market back on the retreat.
Pharmacy management service company MedcoHealth Solutions (MHS 42.58, +4.58) is one of the best-performing S&P 500 stocks this session after reporting better-than-expected third quarter revenue and earnings. Other notable gainers in reaction to earnings include Time Warner (TWX 11.06, +0.23), Hospira (HSP 31.49, +2.84) and Molson Coors Brewing (TAP 40.73, +2.15).
Conversely, General Growth Properties (GGP 3.17, -1.32) is one of the worst-performing stocks after the REIT posted third quarter revenue and earnings that missed estimates, and gave downside guidance for fiscal year 2008. Other losers in reaction to earnings include Duke Energy (DUK 16.05, -0.87), MBIA (MBI 8.18, -2.28), Sara Lee (SLE 10.49, -1.37), March & McLennan (MMC 27.28, -2.42).DJ30 -135.08 NASDAQ -26.08 SP500 -12.42 NASDAQ Adv/Vol/Dec 855/548 mln/1631 NYSE Adv/Vol/Dec 1103/299 mln/1762
10:35 am : Just hitting the wires, crude oil inventories for the week ended Nov. 1 rose by 54,000 barrels. An increase of 1.0 million barrels was expected. Gasoline inventories rose by 1.1 million barrels. Crude prices were down 1.7% to $69.26 per barrel just prior to the announcement.
The Fed said it will alter the formulas used to determine interest paid to depository institutions on required reserve balances and excess reserve balances in an effort to keep the effective fed funds rate closer to the FOMC's target rate. The interest paid will now be slightly higher.
Google (GOOG 359.91, -7.03) announced on its blog that it decided to end its advertising agreement with Yahoo! (YHOO 13.95, +0.60) after it became clear after four months of review that government regulators and some advertisers continued to have concern about the pact. Google and Yahoo had delayed the implementation of the deal to give regulators the chance to review it. Google traded down on the news, while Yahoo saw a boost as traders speculated this may open the door to another Microsoft (MSFT 23.17, -0.36) offer.
The stock market pares about half of its losses in a recovery effort led by the energy sector (unch).DJ30 -99.48 NASDAQ -19.13 SP500 -8.79 NASDAQ Adv/Vol/Dec 917/437 mln/1510 NYSE Adv/Vol/Dec 1136/241 mln/1683
10:05 am : The October ISM Services Index, a nonmanufacturing survey, registered 44.4 in October, 2.6 worse than expected and 5.8 lower than the 50.2 reading in September. This marks the lowest level on record, which dates back to 1997. Because the result is below 50, it indicates contraction in the services sector -- the sixth month of contraction in 2008.
The stock market remains in the red and has a mostly muted reaction to the data. All ten of the economic sectors are in negative territory. Two of the largest gainers yesterday -- materials (-3.3%) and energy (-3.3%) -- are laggards this session. Longer-term Treasuries catch a bid for the second day in a row, with the 10-year note up five ticks and the 30-year bond up 15 ticks.DJ30 -156.03 NASDAQ -25.35 SP500 -15.05 NASDAQ Adv/Vol/Dec 623/218 mln/1671 NYSE Adv/Vol/Dec 619/135 mln/2119
09:35 am : Stocks open in the red as traders take profits following Tuesday's rally. Investors are digesting the election results, including more speculation on how an Obama administration will impact the stock market.
Economic news added to the selling interest this morning. According to the ADP national employment report, nonfarm private employment declined by 157,000 in October. A decline of 100,000 was expected. September was revised to a decline of 26,000 from a decline of 8,000.
Oil prices are down 3.5% to $68.08 per barrel ahead of the government's weekly energy report at 10:35 AM ET.DJ30 -144.24 NASDAQ -26.85 SP500 -16.42
09:17 am : S&P futures vs fair value: -15.10. Nasdaq futures vs fair value: -19.30.
09:00 am : S&P futures vs fair value: -14.40. Nasdaq futures vs fair value: -19.00.
08:32 am : S&P futures vs fair value: -17.40. Nasdaq futures vs fair value: -23.00. A lower start is expected. GMAC reported a third quarter net loss of $2.5 billion, versus a net loss of $1.6 billion in the previous year. The result was due to a loss at Residential Capital and pressure in GMAC's automotive finance operation. The company said absent economic support from GMAC, substantial doubt exists regarding ResCap's ability to continue as a going concern.lower start is expected. Separately, Polo Ralph Lauren (RL) reported better than expected third quarter earnings.
08:15 am : S&P futures vs fair value: -18.80. Nasdaq futures vs fair value: -23.50. Futures give up a few points following worse-than-expected jobs data. According to the ADP national employment report, nonfarm private employment declined by 157,000 in October. A decline of 100,000 was expected. September was revised to a decline of 26,000 from a decline of 8,000. The ADP data have had a spotty track record compared to the government's report, which includes both public and private nonfarm payrolls, and is set for release on Friday.
08:00 am : S&P futures vs fair value: -14.40. Nasdaq futures vs fair value: -17.80. Stock futures suggest a lower start as investors take profits following yesterday's strong gain. Market participants are digesting election results, with continued talks of what Barack Obama means for the stock market. In earnings news, Sara Lee (SLE), Devon Energy (DVN), Time Warner (TWX) and Time Warner Cable (TWC) all reported larger than expected earnings per share gains. Arcelor Mittal (MT), Duke Energy (DUK), and Transocean (RIG) missed earnings estimates. Bond insurers Ambac (ABK) and MBIA (MBI) reported wider than expected quarterly losses. On the economic front, the October ADP private employment report will be released at 8:15 PM ET and the October ISM Services Index at 10:00 AM ET. In addition, the government will release its weekly energy inventory report at 10:35 AM ET.
06:36 am : S&P futures vs fair value: -13.40. Nasdaq futures vs fair value: -14.80.
06:36 am : Nikkei...9521.24...+406.60...+4.50%. Hang Seng...14840.16...+455.80...+3.20%.
06:36 am : FTSE...4551.02...-88.50...-1.90%. DAX...5211.79...-66.10...-1.20%.
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