AI
Friday, November 07, 2008 9:27:39 PM
Market Update 081107
http://biz.yahoo.com/mu/update.html
4:25 pm : Stocks finished the week on a positive note, recovering from the worst two-session drop in more than 20 years. Despite another round of weak economic and earnings data, buyers entered the action to bid depressed prices higher.
Nonfarm payrolls declined 240,000 in October, lifting the unemployment rate to a 14-year high of 6.5%. That was up from 6.1% the month before. The decline in October payrolls marked the 10th consecutive monthly decline.
Job losses are mounting in the face of dim business prospects and a gloomy economic outlook. Atlanta Fed President Lockhart stated that he sees economic weakness at least through the first half of 2009, and higher unemployment.
Supporting that conclusion, Ford (F 2.02, +0.04) stated it will layoff an additional 10% of its salaried workforce. That announcement was paired with another paltry quarterly performance, in which the company posted a loss and burned through $7.7 billion in cash. General Motors (GM 4.36, -0.44) also posted ugly quarterly results, but burned through $6.9 billion during the quarter. Given the performance, GM is suspending talks with privately held Chrysler to concentrate on its financial health. Meanwhile, Ford had its credit rating cut to Caa1 from B3, with a negative outlook at Moody's.
Weak economic conditions are dampening prospects in several other industries as well. Qualcomm (QCOM 35.66, +2.61) posted better-than-expected earnings per share results for its latest quarter, but issued downside guidance.
Entertainment and broadcasting company Walt Disney (DIS 23.36, +0.55) also stated it expects some challenges in fiscal 2009. Disney missed the consensus earnings per share estimate when it reported its latest quarterly results.
Elsewhere, Goldman Sachs (GS 77.78, -2.94) and Morgan Stanley (MS 15.98, +0.59) had their respective earnings estimates cut by analysts at JPMorgan.
Meanwhile, Wells Fargo (WFC 29.50, +0.73) spent most of the session lower after it issued an $11 billion capital raise priced at $27 per share, which is a 6% discount to the prior session's closing price.
The financial sector was an underperformer for the majority of the session, but late buying interest pulled the sector up from a loss of 1.3% to finish near its session high, up 2.0%.
Microsoft (MSFT 21.50, +0.62) provided leadership to the tech sector after it stated that it has no interest in making a bid for Yahoo! (YHOO 12.20, -1.76). Yahoo stated just yesterday that it is a good fit for Microsoft and would sell itself for the right price.
Exxon-Mobil (XOM 73.95, +4.39) was a key performer this session, providing leadership to both the Dow Jones and the S&P 500. Exxon's gains came as oil prices made a modest 0.5% advance. Crude futures finished the session near $61.00 per barrel.
Despite the fact much of the day's troubling news came before the opening bell, stocks still spent the entire session in the green. A couple of rounds of selling pressure early and late in the session threatened to undercut the stock market's advance, but a concerted buying effort helped stocks finish near session highs. Friday's advance softened the impact of losses earlier in the week; the stock market slipped 3.9% for the week. Volume was relatively light during Friday's advance.DJ30 +248.02 NASDAQ +38.70 NQ100 +2.4% R2K +2.0% SP400 +2.5% SP500 +26.11 NASDAQ Adv/Vol/Dec 1698/1.93 bln/1045 NYSE Adv/Vol/Dec 2124/1.26 bln/932
3:30 pm : The stock market has encountered some selling pressure as the session begins drawing to a close. After climbing to a 2.8% gain the S&P 500 recently fell to an afternoon low. It is now reclaiming some of its gains.
Still, the bout of selling pressure pushed financials back into the red. The sector is now down 1.0%, a bit above its session low.DJ30 +103.30 NASDAQ +14.19 SP500 +9.64 NASDAQ Adv/Vol/Dec 1388/1.56 bln/1330 NYSE Adv/Vol/Dec 1724/881 mln/1330
3:05 pm : President-elect Obama has started a news conference after meeting with his economic team. He said America needs a rescue plan for the middle class, including a fiscal stimulus plan. He will also review the current administration's financial plan.
The stock market gives up half of its gains as Obama makes his statements.
Ford Motor (F 2.00, +0.02) had its credit rating cut to Caa1 from B3, with a negative outlook at Moody's. The rating, considered junk, is five steps up from Moody's lowest rating. Moody's action comes after Ford reported this morning that it burned through $7.7 billion in cash in the third quarter.
Just hitting the wires, September consumer credit rose by $6.9 billion, compared to the expectations for a flat reading. Credit declined by $6.3 billion in August.DJ30 +124.01 NASDAQ +17.90 SP500 +12.58 NASDAQ Adv/Vol/Dec 1544/1.40 bln/1160 NYSE Adv/Vol/Dec 1859/796 mln/1191
2:30 pm : Stocks continue to hold their gains as the end of the week draws near. At its current level, the stock market is facing a week-to-date loss of 4.9%. The week's loss follows one of the best single week advances in decades.
Earnings season will begin drawing to a close next week. Before all is done, though, retailers like Kohl's (KSS 34.01, +0.63), JCPenney (JCP 22.55, +0.65), Macy's (M 10.88, +0.44), Nordstrom (JWN 15.43, +0.20), TJX Companies (TJX 24.00, -0.01), and Wal-Mart (WMT 54.20, +0.71) will make their quarterly announcements. Their results start hitting the wires early next week.
Retailers, as a group, are up 1.9% this session. The gains come after back-to-back losses in which the group shed roughly 5% during each session. Those losses came as many retailers posted negative same-store sales results for October. Discount retailers and wholesalers were the general exception, though; several saw same-store sales grow as cash-strapped customers sought bargains.DJ30 +195.06 NASDAQ +33.27 SP500 +18.75 NASDAQ Adv/Vol/Dec 1662/1.25 bln/1022 NYSE Adv/Vol/Dec 1994/708 mln/1044
2:00 pm : The strong performance by U.S. equities comes in the face of a less impressive performance by foreign indices. The Dow Jones World Index, excluding the U.S., is up less than 0.1%. Meanwhile, both the Dow and the S&P 500 are up more than 2% with the Nasdaq close behind.
The U.S. dollar is unchanged this session. According to the dollar index, which measures the dollar against a basket of major foreign currencies, stands at almost 86. The index is up 12% this year with nearly all of the advance coming since this past summer.DJ30 +181.44 NASDAQ +31.21 SP500 +18.67 NASDAQ Adv/Vol/Dec 1661/1.16 bln/998 NYSE Adv/Vol/Dec 2029/655 mln/989
1:30 pm : Investors continue bidding the stock market higher after the worst two-session slide since 1987. Losses in the prior two sessions combined for a 10.0% drop, giving the stock market a loss of nearly 5% week-to-date.
Atlanta Fed President Lockhart stated in a speech that he sees economic weakness at least through the first half of 2009, and higher unemployment. He also stated recent data indicate the economy is in recession and the Fed could operate monetary policy with interest rates at 0.0%.
In a similar vein, economists at Goldman Sachs see the Fed's target lending rate falling to 0.5% by December.DJ30 +171.48 NASDAQ +28.84 SP500 +17.48 NASDAQ Adv/Vol/Dec 1594/1.06 bln/1048 NYSE Adv/Vol/Dec 1980/600 mln/997
1:00 pm : The stock market has narrowed the range of its swings in early afternoon trade. The stock market was up 2.8% at its session high, and up just 0.2% at its session low. That range was made before noon.
Market breadth remains positive with 75% of the stocks making up the S&P 500 showing gains.
Utilities (+4.3%) has replaced the energy sector (+3.5%) as the session's best performing economic sector. Briefing.com recommended Exelon (EXC 53.31, +2.71) is providing the sector with leadership.DJ30 +167.34 NASDAQ +29.50 SP500 +17.17 NASDAQ Adv/Vol/Dec 1620/980 mln/1002 NYSE Adv/Vol/Dec 2002/553 mln/968
12:30 pm : Large-cap tech names like Qualcomm (QCOM 35.96, +2.91) and Microsoft (MSFT 21.40, +0.52) are helping the Nasdaq outperform the three headline indices: Dow Jones Industrial Average, Nasdaq, and S&P 500. The Nasdaq 100 is up 2.2%.
Qualcomm is finding favor after posting better-than-expected earnings per share results for its latest quarter. However, the firm did issue downside guidance.
As for Micosoft, the company made it known that it is not interested in pursuing merger talks with Yahoo! (YHOO 12.16, -1.80). Yahoo stated just yesterday that it is a good fit for Microsoft and would sell itself for the right price; the statement was made after Google (GOOG 334.61, +3.39) walked away from talks with Yahoo regarding a joint Internet search agreement.DJ30 +158.82 NASDAQ +30.58 SP500 +16.21 NASDAQ Adv/Vol/Dec 1638/906 mln/952 NYSE Adv/Vol/Dec 2042/511 mln/931
12:05 pm : Despite a day full of weak earnings news and economic data, stocks continue to trade with strong gains.
Shares of Qualcomm (QCOM 36.22, +3.17) are up after the company posted better-than-expected earnings per share results for its latest quarter. The advance comes despite downside guidance from management.
Walt Disney (DIS 22.59, -0.22) also expects some challenges in fiscal 2009. The company said the economy has declined and its business has been negatively impacted. Disney failed to hit analysts' consensus earnings per share estimate in the third quarter.
A weak economic outlook and ongoing asset impairment charges have analysts trimming their earnings estimates for many widely held financial institutions. Goldman Sachs (GS 77.75, -2.97) and Morgan Stanley (MS 16.49, +1.10) had their respective earnings estimates cut by analysts at JPMorgan. Analysts at Morgan Stanley also recently cut earnings estimates for Goldman Sachs. Shares of GS are trading just a few dollars above their 52-week low, which was reached in October.
Wells Fargo (WFC 27.70, -1.07) is also a laggard this session. The bank issued an $11 billion capital raise to help pay for its acquisition of Wachovia Bank (WB 5.33, -0.05). Wells Fargo priced the capital raise at $27 per share, a 6% discount to where the stock finished the prior session.
Collective weakness in the financial sector has made it an underperformer this session. The sector is only up 0.3% while every other sector sports a gain in excess of 1%.
Energy (+3.0%) has been a relative a leader this session. Higher oil prices are helping the sector, though crude futures prices have eased back a bit. Prices are currently up 0.5% to $61.10 after being up more than 3%.
General Motors (GM 4.23, -0.57) and Ford (F 1.94, -0.04) announced some paltry results for the third quarter. Both companies posted earnings losses, but GM burned through $6.9 billion during the quarter and Ford burned through $7.7 billion in cash. CNBC just reported that GM is suspending talks with privately held Chrysler to concentrate on its financial health.
The weakness in the automotive companies reflects the tenuous state of the economy as shoppers spend less amid rising unemployment. Nonfarm payrolls declined 240,000 in October, lifting the unemployment rate to 6.5% from 6.1%. The job losses and the unemployment rate were worse than expected. Over the first 10 months of 2008, 1.2 million jobs have been lost with over half of those losses coming in the past three months. DJ30 +177.46 NASDAQ +30.75 SP500 +17.72 NASDAQ Adv/Vol/Dec 1661/823 mln/909 NYSE Adv/Vol/Dec 2055/465 mln/891
11:30 am : General Motors (GM, halted) announced it lost $4.45 per share, including special items, or an adjusted loss of $7.35 per share. It burned through $6.9 billion during the quarter, indicating a cash burn rate of $2.3 billion per month. GM's burn rate more than doubled from the prior year quarter.
The stock market continues to pare its gains as investors digest GM's results and assess the automotive giant's future.
Despite trending lower, the stock market continues to show solid gains. The session's advance comes without leadership from the financials sector (-0.8%), which continues to trail the broader market. Wells Fargo (WFC 27.65, -1.12) is a primary laggard among financial players. The bank priced an $11 billion capital raise at $27 per share after yesterday's close, which is about a 6% discount to where the stock finished the session.
September pending home sales were down 4.6% month-over-month, worse than the 3.4% downturn that was expected. Pending home sales were up 7.5% in the prior month.DJ30 +91.44 NASDAQ +18.46 SP500 +9.17 NASDAQ Adv/Vol/Dec 1539/706 mln/985 NYSE Adv/Vol/Dec 1893/393 mln/1016
11:00 am : Stocks have tapered gains, but remain well into positive ground. The advance remains broad based.
Investors continue to await quarterly results from General Motors (GM 4.80, +0.00). The automotive giant has delayed its announcement while investors speculate how bad the performance was. Ford (F 1.99, +0.01) announced a loss of $1.31 per share and burned through $7.7 billion in cash during the latest quarter. Assuming GM's results are equally paltry, automakers are likely to continue asking for federal help to protect their operations. Loans totalling $25 billion have already been arranged for use in improving vehicle fuel economy.DJ30 +183.51 NASDAQ +33.86 SP500 +18.30 NASDAQ Adv/Vol/Dec 1733/571 mln/713 NYSE Adv/Vol/Dec 2224/323 mln/659
10:30 am : Stocks have extended their gains to trade at fresh morning highs. All ten of the major economic sectors are now trading higher; each sector is up more than 1%.
Energy (+4.3%) is currently a leader with every one of its industry groups advancing. Higher oil prices are helping the sector as crude futures climb 1.6% to $61.70 per barrel. However, crude prices are actually down more than 8.5% week-to-date, and 58% off their record high.
Oil and gas equipment companies (+4.2%) are some of the best performers. Schlumberger (SLB 50.88, +2.73) is currently providing leadership to the industry group.DJ30 +186.93 NASDAQ +34.09 SP500 +19.49 NASDAQ Adv/Vol/Dec 1703/425 mln/656 NYSE Adv/Vol/Dec 2169/247 mln/644
10:05 am : After making a quick pullback, stocks have retraced their downturn to continue trading with solid gains.
The financial sector (-0.6%) continues to lag the broader market. Particular weakness is being exhibited by diversified banks (-3.7%) and investment banks and brokers (-1.9%). Industry players have been hit hard in recent sessions as analysts and investors re-examine earnings expectations for some of Wall Street's former stars. For instance, analysts at JPMorgan cut earnings estimates for Goldman Sachs (GS 76.00, -4.72) and Morgan Stanley (MS 15.66, +0.27).
In recent economic news, September wholesale inventories were down 0.1%, which is worse than the 0.3% increase that was widely expected and the 0.6% increase registered in the prior reading. Additionally, average weekly hours for October were in-line with expectations at 33.6.DJ30 +114.14 NASDAQ +19.78 SP500 +9.76 NASDAQ Adv/Vol/Dec 1499/249 mln/743 NYSE Adv/Vol/Dec 1704/147 mln/959
09:45 am : Stocks are making solid gains in the session's opening minutes. Eight of the ten economic sectors are trading higher; only financials (-0.4%) and consumer discretionary stocks (-0.2%) are trading lower.
The broad-based advance contrasts with the prior two sessions when stocks traded lower from the start, culminating in the worst two-session slide in roughly 20 years.
Investors are well aware, however, that recent volatility has made it difficult for stocks to end the session near where they began, for better or worse.DJ30 +75.11 NASDAQ +15.40 SP500 +6.84 NASDAQ Adv/Dec 1439/653 NYSE Adv/Dec 1676/882
09:15 am : S&P futures vs fair value: +6.00. Nasdaq futures vs fair value: +11.00. Stock futures have reclaimed some of their lost ground and now indicate a more positive start to the session. Prior to the open, each of the major indices is down at least 6.5% week-to-date.
09:01 am : S&P futures vs fair value: -1.50. Nasdaq futures vs fair value: +6.00. A mixed tone is now indicated in premarket action following glum economic and earnings data. Earnings estimates continue to be honed in amid ongoing economic and financial market strife. Goldman Sachs (GS) and Morgan Stanley (MS) had their respective earnings estimates cut by analysts at JPMorgan. Just yesterday analysts at Morgan Stanley cut earnings estimates for Goldman Sachs as a growing analyst base projects Goldman to post a loss for the fourth quarter. Microsoft (MSFT) chief executive, Steve Ballmer, indicated that his company will not make a bid for Yahoo! (YHOO), according to Financial Times. The comments came after Yahoo chief executive, Jerry Yang, stated that Yahoo is a good fit for Microsoft and that he would sell to Microsoft for the right price. The Wall Street Journal reported that federal officials are considering ways to ease financial pressure on AIG (AIG), including changing the terms of its $85 billion government loan.
08:30 am : S&P futures vs fair value: +5.20. Nasdaq futures vs fair value: +10.80. Stock futures indicate a positive start to the session, despite easing off of earlier levels. Nonfarm payrolls fell by 240,000 in October, marking the 10th consecutive monthly decline. The drop in payrolls was worse than the consensus, which called for 200,000 jobs to be lost. Nonfarm payrolls declined by 284,000 in September. Manufacturing payrolls were down 90,000, exceeding the 65,000 manufacturing job losses that economists forecast, and down from the 56,000 job losses in the prior month. The national unemployment rate now stands at 6.5%, which is up from the 6.1% unemployment rate reported last month. Economists were expecting an unemployment rate of 6.3%. Average hourly earnings were up 0.2% month-over-month and 3.5% year-over-year. Both were in-line with the consensus.
08:00 am : S&P futures vs fair value: +9.20. Nasdaq futures vs fair value: +17.80. Stock futures point to an upward start, despite several disappointing earnings announcements. In addition to burning through nearly $8 billion in cash during the third quarter, Ford (F) announced a loss of $1.31 per share. Qualcomm (QCOM) posted better-than-expected quarterly earnings results, but disappointed investors by issuing downside guidance. Walt Disney (DIS) and Sprint (S) both failed to hit analysts' prevailing third quarter earnings per share estimates. In global economic news, The Wall Street Journal reported South Korea's central bank cut its main interest rate to 4.00% from 4.25%, the third cut in four weeks. Investors await October unemployment data, which is due at the bottom of the hour. Economists expect October to mark the 10th consecutive month of payroll declines.
06:32 am : S&P futures vs fair value: +15.60. Nasdaq futures vs fair value: +24.50.
06:32 am : Nikkei...8583.00...-316.10...-3.60%. Hang Seng...12423.43...+453.40...+3.30%.
06:32 am : FTSE...4652.89...+80.50...+1.90%. DAX...4858.51...+44.60...+0.90%.
http://biz.yahoo.com/mu/update.html
4:25 pm : Stocks finished the week on a positive note, recovering from the worst two-session drop in more than 20 years. Despite another round of weak economic and earnings data, buyers entered the action to bid depressed prices higher.
Nonfarm payrolls declined 240,000 in October, lifting the unemployment rate to a 14-year high of 6.5%. That was up from 6.1% the month before. The decline in October payrolls marked the 10th consecutive monthly decline.
Job losses are mounting in the face of dim business prospects and a gloomy economic outlook. Atlanta Fed President Lockhart stated that he sees economic weakness at least through the first half of 2009, and higher unemployment.
Supporting that conclusion, Ford (F 2.02, +0.04) stated it will layoff an additional 10% of its salaried workforce. That announcement was paired with another paltry quarterly performance, in which the company posted a loss and burned through $7.7 billion in cash. General Motors (GM 4.36, -0.44) also posted ugly quarterly results, but burned through $6.9 billion during the quarter. Given the performance, GM is suspending talks with privately held Chrysler to concentrate on its financial health. Meanwhile, Ford had its credit rating cut to Caa1 from B3, with a negative outlook at Moody's.
Weak economic conditions are dampening prospects in several other industries as well. Qualcomm (QCOM 35.66, +2.61) posted better-than-expected earnings per share results for its latest quarter, but issued downside guidance.
Entertainment and broadcasting company Walt Disney (DIS 23.36, +0.55) also stated it expects some challenges in fiscal 2009. Disney missed the consensus earnings per share estimate when it reported its latest quarterly results.
Elsewhere, Goldman Sachs (GS 77.78, -2.94) and Morgan Stanley (MS 15.98, +0.59) had their respective earnings estimates cut by analysts at JPMorgan.
Meanwhile, Wells Fargo (WFC 29.50, +0.73) spent most of the session lower after it issued an $11 billion capital raise priced at $27 per share, which is a 6% discount to the prior session's closing price.
The financial sector was an underperformer for the majority of the session, but late buying interest pulled the sector up from a loss of 1.3% to finish near its session high, up 2.0%.
Microsoft (MSFT 21.50, +0.62) provided leadership to the tech sector after it stated that it has no interest in making a bid for Yahoo! (YHOO 12.20, -1.76). Yahoo stated just yesterday that it is a good fit for Microsoft and would sell itself for the right price.
Exxon-Mobil (XOM 73.95, +4.39) was a key performer this session, providing leadership to both the Dow Jones and the S&P 500. Exxon's gains came as oil prices made a modest 0.5% advance. Crude futures finished the session near $61.00 per barrel.
Despite the fact much of the day's troubling news came before the opening bell, stocks still spent the entire session in the green. A couple of rounds of selling pressure early and late in the session threatened to undercut the stock market's advance, but a concerted buying effort helped stocks finish near session highs. Friday's advance softened the impact of losses earlier in the week; the stock market slipped 3.9% for the week. Volume was relatively light during Friday's advance.DJ30 +248.02 NASDAQ +38.70 NQ100 +2.4% R2K +2.0% SP400 +2.5% SP500 +26.11 NASDAQ Adv/Vol/Dec 1698/1.93 bln/1045 NYSE Adv/Vol/Dec 2124/1.26 bln/932
3:30 pm : The stock market has encountered some selling pressure as the session begins drawing to a close. After climbing to a 2.8% gain the S&P 500 recently fell to an afternoon low. It is now reclaiming some of its gains.
Still, the bout of selling pressure pushed financials back into the red. The sector is now down 1.0%, a bit above its session low.DJ30 +103.30 NASDAQ +14.19 SP500 +9.64 NASDAQ Adv/Vol/Dec 1388/1.56 bln/1330 NYSE Adv/Vol/Dec 1724/881 mln/1330
3:05 pm : President-elect Obama has started a news conference after meeting with his economic team. He said America needs a rescue plan for the middle class, including a fiscal stimulus plan. He will also review the current administration's financial plan.
The stock market gives up half of its gains as Obama makes his statements.
Ford Motor (F 2.00, +0.02) had its credit rating cut to Caa1 from B3, with a negative outlook at Moody's. The rating, considered junk, is five steps up from Moody's lowest rating. Moody's action comes after Ford reported this morning that it burned through $7.7 billion in cash in the third quarter.
Just hitting the wires, September consumer credit rose by $6.9 billion, compared to the expectations for a flat reading. Credit declined by $6.3 billion in August.DJ30 +124.01 NASDAQ +17.90 SP500 +12.58 NASDAQ Adv/Vol/Dec 1544/1.40 bln/1160 NYSE Adv/Vol/Dec 1859/796 mln/1191
2:30 pm : Stocks continue to hold their gains as the end of the week draws near. At its current level, the stock market is facing a week-to-date loss of 4.9%. The week's loss follows one of the best single week advances in decades.
Earnings season will begin drawing to a close next week. Before all is done, though, retailers like Kohl's (KSS 34.01, +0.63), JCPenney (JCP 22.55, +0.65), Macy's (M 10.88, +0.44), Nordstrom (JWN 15.43, +0.20), TJX Companies (TJX 24.00, -0.01), and Wal-Mart (WMT 54.20, +0.71) will make their quarterly announcements. Their results start hitting the wires early next week.
Retailers, as a group, are up 1.9% this session. The gains come after back-to-back losses in which the group shed roughly 5% during each session. Those losses came as many retailers posted negative same-store sales results for October. Discount retailers and wholesalers were the general exception, though; several saw same-store sales grow as cash-strapped customers sought bargains.DJ30 +195.06 NASDAQ +33.27 SP500 +18.75 NASDAQ Adv/Vol/Dec 1662/1.25 bln/1022 NYSE Adv/Vol/Dec 1994/708 mln/1044
2:00 pm : The strong performance by U.S. equities comes in the face of a less impressive performance by foreign indices. The Dow Jones World Index, excluding the U.S., is up less than 0.1%. Meanwhile, both the Dow and the S&P 500 are up more than 2% with the Nasdaq close behind.
The U.S. dollar is unchanged this session. According to the dollar index, which measures the dollar against a basket of major foreign currencies, stands at almost 86. The index is up 12% this year with nearly all of the advance coming since this past summer.DJ30 +181.44 NASDAQ +31.21 SP500 +18.67 NASDAQ Adv/Vol/Dec 1661/1.16 bln/998 NYSE Adv/Vol/Dec 2029/655 mln/989
1:30 pm : Investors continue bidding the stock market higher after the worst two-session slide since 1987. Losses in the prior two sessions combined for a 10.0% drop, giving the stock market a loss of nearly 5% week-to-date.
Atlanta Fed President Lockhart stated in a speech that he sees economic weakness at least through the first half of 2009, and higher unemployment. He also stated recent data indicate the economy is in recession and the Fed could operate monetary policy with interest rates at 0.0%.
In a similar vein, economists at Goldman Sachs see the Fed's target lending rate falling to 0.5% by December.DJ30 +171.48 NASDAQ +28.84 SP500 +17.48 NASDAQ Adv/Vol/Dec 1594/1.06 bln/1048 NYSE Adv/Vol/Dec 1980/600 mln/997
1:00 pm : The stock market has narrowed the range of its swings in early afternoon trade. The stock market was up 2.8% at its session high, and up just 0.2% at its session low. That range was made before noon.
Market breadth remains positive with 75% of the stocks making up the S&P 500 showing gains.
Utilities (+4.3%) has replaced the energy sector (+3.5%) as the session's best performing economic sector. Briefing.com recommended Exelon (EXC 53.31, +2.71) is providing the sector with leadership.DJ30 +167.34 NASDAQ +29.50 SP500 +17.17 NASDAQ Adv/Vol/Dec 1620/980 mln/1002 NYSE Adv/Vol/Dec 2002/553 mln/968
12:30 pm : Large-cap tech names like Qualcomm (QCOM 35.96, +2.91) and Microsoft (MSFT 21.40, +0.52) are helping the Nasdaq outperform the three headline indices: Dow Jones Industrial Average, Nasdaq, and S&P 500. The Nasdaq 100 is up 2.2%.
Qualcomm is finding favor after posting better-than-expected earnings per share results for its latest quarter. However, the firm did issue downside guidance.
As for Micosoft, the company made it known that it is not interested in pursuing merger talks with Yahoo! (YHOO 12.16, -1.80). Yahoo stated just yesterday that it is a good fit for Microsoft and would sell itself for the right price; the statement was made after Google (GOOG 334.61, +3.39) walked away from talks with Yahoo regarding a joint Internet search agreement.DJ30 +158.82 NASDAQ +30.58 SP500 +16.21 NASDAQ Adv/Vol/Dec 1638/906 mln/952 NYSE Adv/Vol/Dec 2042/511 mln/931
12:05 pm : Despite a day full of weak earnings news and economic data, stocks continue to trade with strong gains.
Shares of Qualcomm (QCOM 36.22, +3.17) are up after the company posted better-than-expected earnings per share results for its latest quarter. The advance comes despite downside guidance from management.
Walt Disney (DIS 22.59, -0.22) also expects some challenges in fiscal 2009. The company said the economy has declined and its business has been negatively impacted. Disney failed to hit analysts' consensus earnings per share estimate in the third quarter.
A weak economic outlook and ongoing asset impairment charges have analysts trimming their earnings estimates for many widely held financial institutions. Goldman Sachs (GS 77.75, -2.97) and Morgan Stanley (MS 16.49, +1.10) had their respective earnings estimates cut by analysts at JPMorgan. Analysts at Morgan Stanley also recently cut earnings estimates for Goldman Sachs. Shares of GS are trading just a few dollars above their 52-week low, which was reached in October.
Wells Fargo (WFC 27.70, -1.07) is also a laggard this session. The bank issued an $11 billion capital raise to help pay for its acquisition of Wachovia Bank (WB 5.33, -0.05). Wells Fargo priced the capital raise at $27 per share, a 6% discount to where the stock finished the prior session.
Collective weakness in the financial sector has made it an underperformer this session. The sector is only up 0.3% while every other sector sports a gain in excess of 1%.
Energy (+3.0%) has been a relative a leader this session. Higher oil prices are helping the sector, though crude futures prices have eased back a bit. Prices are currently up 0.5% to $61.10 after being up more than 3%.
General Motors (GM 4.23, -0.57) and Ford (F 1.94, -0.04) announced some paltry results for the third quarter. Both companies posted earnings losses, but GM burned through $6.9 billion during the quarter and Ford burned through $7.7 billion in cash. CNBC just reported that GM is suspending talks with privately held Chrysler to concentrate on its financial health.
The weakness in the automotive companies reflects the tenuous state of the economy as shoppers spend less amid rising unemployment. Nonfarm payrolls declined 240,000 in October, lifting the unemployment rate to 6.5% from 6.1%. The job losses and the unemployment rate were worse than expected. Over the first 10 months of 2008, 1.2 million jobs have been lost with over half of those losses coming in the past three months. DJ30 +177.46 NASDAQ +30.75 SP500 +17.72 NASDAQ Adv/Vol/Dec 1661/823 mln/909 NYSE Adv/Vol/Dec 2055/465 mln/891
11:30 am : General Motors (GM, halted) announced it lost $4.45 per share, including special items, or an adjusted loss of $7.35 per share. It burned through $6.9 billion during the quarter, indicating a cash burn rate of $2.3 billion per month. GM's burn rate more than doubled from the prior year quarter.
The stock market continues to pare its gains as investors digest GM's results and assess the automotive giant's future.
Despite trending lower, the stock market continues to show solid gains. The session's advance comes without leadership from the financials sector (-0.8%), which continues to trail the broader market. Wells Fargo (WFC 27.65, -1.12) is a primary laggard among financial players. The bank priced an $11 billion capital raise at $27 per share after yesterday's close, which is about a 6% discount to where the stock finished the session.
September pending home sales were down 4.6% month-over-month, worse than the 3.4% downturn that was expected. Pending home sales were up 7.5% in the prior month.DJ30 +91.44 NASDAQ +18.46 SP500 +9.17 NASDAQ Adv/Vol/Dec 1539/706 mln/985 NYSE Adv/Vol/Dec 1893/393 mln/1016
11:00 am : Stocks have tapered gains, but remain well into positive ground. The advance remains broad based.
Investors continue to await quarterly results from General Motors (GM 4.80, +0.00). The automotive giant has delayed its announcement while investors speculate how bad the performance was. Ford (F 1.99, +0.01) announced a loss of $1.31 per share and burned through $7.7 billion in cash during the latest quarter. Assuming GM's results are equally paltry, automakers are likely to continue asking for federal help to protect their operations. Loans totalling $25 billion have already been arranged for use in improving vehicle fuel economy.DJ30 +183.51 NASDAQ +33.86 SP500 +18.30 NASDAQ Adv/Vol/Dec 1733/571 mln/713 NYSE Adv/Vol/Dec 2224/323 mln/659
10:30 am : Stocks have extended their gains to trade at fresh morning highs. All ten of the major economic sectors are now trading higher; each sector is up more than 1%.
Energy (+4.3%) is currently a leader with every one of its industry groups advancing. Higher oil prices are helping the sector as crude futures climb 1.6% to $61.70 per barrel. However, crude prices are actually down more than 8.5% week-to-date, and 58% off their record high.
Oil and gas equipment companies (+4.2%) are some of the best performers. Schlumberger (SLB 50.88, +2.73) is currently providing leadership to the industry group.DJ30 +186.93 NASDAQ +34.09 SP500 +19.49 NASDAQ Adv/Vol/Dec 1703/425 mln/656 NYSE Adv/Vol/Dec 2169/247 mln/644
10:05 am : After making a quick pullback, stocks have retraced their downturn to continue trading with solid gains.
The financial sector (-0.6%) continues to lag the broader market. Particular weakness is being exhibited by diversified banks (-3.7%) and investment banks and brokers (-1.9%). Industry players have been hit hard in recent sessions as analysts and investors re-examine earnings expectations for some of Wall Street's former stars. For instance, analysts at JPMorgan cut earnings estimates for Goldman Sachs (GS 76.00, -4.72) and Morgan Stanley (MS 15.66, +0.27).
In recent economic news, September wholesale inventories were down 0.1%, which is worse than the 0.3% increase that was widely expected and the 0.6% increase registered in the prior reading. Additionally, average weekly hours for October were in-line with expectations at 33.6.DJ30 +114.14 NASDAQ +19.78 SP500 +9.76 NASDAQ Adv/Vol/Dec 1499/249 mln/743 NYSE Adv/Vol/Dec 1704/147 mln/959
09:45 am : Stocks are making solid gains in the session's opening minutes. Eight of the ten economic sectors are trading higher; only financials (-0.4%) and consumer discretionary stocks (-0.2%) are trading lower.
The broad-based advance contrasts with the prior two sessions when stocks traded lower from the start, culminating in the worst two-session slide in roughly 20 years.
Investors are well aware, however, that recent volatility has made it difficult for stocks to end the session near where they began, for better or worse.DJ30 +75.11 NASDAQ +15.40 SP500 +6.84 NASDAQ Adv/Dec 1439/653 NYSE Adv/Dec 1676/882
09:15 am : S&P futures vs fair value: +6.00. Nasdaq futures vs fair value: +11.00. Stock futures have reclaimed some of their lost ground and now indicate a more positive start to the session. Prior to the open, each of the major indices is down at least 6.5% week-to-date.
09:01 am : S&P futures vs fair value: -1.50. Nasdaq futures vs fair value: +6.00. A mixed tone is now indicated in premarket action following glum economic and earnings data. Earnings estimates continue to be honed in amid ongoing economic and financial market strife. Goldman Sachs (GS) and Morgan Stanley (MS) had their respective earnings estimates cut by analysts at JPMorgan. Just yesterday analysts at Morgan Stanley cut earnings estimates for Goldman Sachs as a growing analyst base projects Goldman to post a loss for the fourth quarter. Microsoft (MSFT) chief executive, Steve Ballmer, indicated that his company will not make a bid for Yahoo! (YHOO), according to Financial Times. The comments came after Yahoo chief executive, Jerry Yang, stated that Yahoo is a good fit for Microsoft and that he would sell to Microsoft for the right price. The Wall Street Journal reported that federal officials are considering ways to ease financial pressure on AIG (AIG), including changing the terms of its $85 billion government loan.
08:30 am : S&P futures vs fair value: +5.20. Nasdaq futures vs fair value: +10.80. Stock futures indicate a positive start to the session, despite easing off of earlier levels. Nonfarm payrolls fell by 240,000 in October, marking the 10th consecutive monthly decline. The drop in payrolls was worse than the consensus, which called for 200,000 jobs to be lost. Nonfarm payrolls declined by 284,000 in September. Manufacturing payrolls were down 90,000, exceeding the 65,000 manufacturing job losses that economists forecast, and down from the 56,000 job losses in the prior month. The national unemployment rate now stands at 6.5%, which is up from the 6.1% unemployment rate reported last month. Economists were expecting an unemployment rate of 6.3%. Average hourly earnings were up 0.2% month-over-month and 3.5% year-over-year. Both were in-line with the consensus.
08:00 am : S&P futures vs fair value: +9.20. Nasdaq futures vs fair value: +17.80. Stock futures point to an upward start, despite several disappointing earnings announcements. In addition to burning through nearly $8 billion in cash during the third quarter, Ford (F) announced a loss of $1.31 per share. Qualcomm (QCOM) posted better-than-expected quarterly earnings results, but disappointed investors by issuing downside guidance. Walt Disney (DIS) and Sprint (S) both failed to hit analysts' prevailing third quarter earnings per share estimates. In global economic news, The Wall Street Journal reported South Korea's central bank cut its main interest rate to 4.00% from 4.25%, the third cut in four weeks. Investors await October unemployment data, which is due at the bottom of the hour. Economists expect October to mark the 10th consecutive month of payroll declines.
06:32 am : S&P futures vs fair value: +15.60. Nasdaq futures vs fair value: +24.50.
06:32 am : Nikkei...8583.00...-316.10...-3.60%. Hang Seng...12423.43...+453.40...+3.30%.
06:32 am : FTSE...4652.89...+80.50...+1.90%. DAX...4858.51...+44.60...+0.90%.
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