AI
Tuesday, November 11, 2008 8:20:38 PM
Market Update 081111
http://biz.yahoo.com/mu/update.html
4:15 pm :
[BRIEFING.COM] Stocks fell on Tuesday as economic fears and concerns over corporate earnings overshadowed news of a government plan to help prevent foreclosures.
The S&P 500 was down as much as 3.7%, but pared some losses in the final two hours of the session to settle with a loss of 2.2%. Nine of the ten sectors fell in mostly broad-based weakness. The material sector (-4.2%) declined the most, while the defensive-oriented utilities sector (+0.2%) outperformed. Volume was below average, with 1.23 billions shares exchanging hands on the NYSE.
Government officials outlined a new mortgage modification plan for loans held by GSEs Fannie Mae (FNM 0.69, -0.03) and Freddie Mac (FRE 0.84, -0.04). The program targets the highest risk borrower who has missed three payments or more, owns and occupies the property as a primary residence and has not filed for bankruptcy. The borrower's loan payment will then be modified to be affordable, which the FHFA defined as no more than 38% of total monthly gross income.
Earlier in the day, Citigroup (C 10.85, -0.36) announced a plan to prevent foreclosures, which includes the modification of mortgage terms for a group of 500,000 homeowners.
In corporate news, American Express (AXP 22.42, -1.56) received approval to convert into a bank holding company, which will give it greater access to funding and other measures of the Federal Reserve. The Fed waived the normal 30-day supervisory period due to emergency conditions.
Third quarter earnings reports left investors disappointed. KKR Financial (KFN 1.97, -1.31), Las Vegas Sands (LVS 5.25, -2.75), Starbucks (SBUX 10.01, -0.19) and TJX (TJX 23.48, -0.22) missed estimates. Rockwell Automation (ROK 25.97, +1.09) and Tyco (TYC 21.77, -3.57) beat estimates. The latter company, however, gave downside earnings guidance for its fiscal year 2009, according to reports.
Meanwhile, analyst are cutting their earnings estimates on a large number of companies in the face the uncertain economic outlook. Google (GOOG 311.29, -7.49) had its 2009 and 2010 earnings estimates reduced at Goldman Sachs due to weak macroeconomic and consumer data.
GM (GM 2.92, -0.44) and Ford (F 1.80, -0.13) fell as traders continue to speculate if the automakers will have enough cash to make it through the economic downturn.
Alcoa (AA 10.91, -0.87) led material stocks lower after announcing that it will cut aluminum production by an additional 350,000 metric tons per year, or 8% of annualized output.
In commodity trading, crude prices plummeted 5.8% to $58.84 per barrel on the belief that the global economic slowdown will crimp demand. Commodities as a whole fell 3.5% as the dollar rose 1.4%.
The bond market was closed in observance of Veterans Day. It will reopen for normal trading hours on Wednesday.
DJ30 -176.58 NASDAQ -35.84 NQ100 -2.0% R2K -2.2% SP400 -2.4% SP500 -20.23 NASDAQ Adv/Vol/Dec 672/1.93 bln/2062 NYSE Adv/Vol/Dec 581/1.23 bln/2505
3:30 pm : Stocks are trading roughly in the middle of this session's range heading into the final half-hour.
Small-cap stocks are outperforming on a relative basis, with the Russell 2000 down 0.8% compared to the S&P 500's loss of 1.8%.DJ30 -142.17 NASDAQ -25.88 SP500 -16.79 NASDAQ Adv/Vol/Dec 911/1.56 bln/1793 NYSE Adv/Vol/Dec 711/922 mln/2357
3:00 pm : Stocks are back on the retreat after a recent rally proved unsustainable. The S&P 500 was down as much as 3.7% before cutting its losses to just 0.2%, but renewed selling pressure undercut that progress.
The defensive-oriented utilities sector is fighting to hold its gains. It is up just 0.1% and is the only sector trading in the green.
The sector's primary leader this session is Exelon (EXC 52.39, +1.90). Shares of the utility holding company are advancing on word that it has no plans to enrich its offer to acquire NRG Energy (NRG 23.23, +0.67), but remains committed to the buyout. NRG rejected Exelon's unsolicited buyout offer yesterday.DJ30 -178.49 NASDAQ -33.27 SP500 -21.99 NASDAQ Adv/Vol/Dec 892/1.43 bln/1804 NYSE Adv/Vol/Dec 670/845 mln/2396
2:35 pm : The S&P 500 bounces to session highs. It is currently trading with a modest loss after being down as much as 3.7%. Buying interest is broad-based, with a notable recovery within financials (-0.4%).
With regard to the Federal Housing Finance Agency's plan to get struggling homeowners into affordable GSE-held mortgages, the program targets the highest risk borrower who has missed three payments or more, owns and occupies the property as a primary residence and has not filed for bankruptcy. The borrower's loan payment will then be modified to be affordable, which the FHFA defined as no more than 38% of total monthly gross income.
Modifications will be done through a mix of reducing the mortgage interest rate, extending the loan or deferring payment on part of the principal. If these modifications still do not create an affordable payment, the borrower's situation will be evaluated through a customized process.DJ30 -36.88 NASDAQ -8.85 SP500 -5.52 NASDAQ Adv/Vol/Dec 1083/1.27 bln/1606 NYSE Adv/Vol/Dec 943/752 mln/2112
2:05 pm : Stocks recover some ground after CNBC reported that BlackRock's (BLK 113.07, -2.48) vice chairman said the $30 billion Bear Stearns mortgage portfolio is generating better cash flows than the market price implies. BlackRock is managing the $30 billion in assets that the Federal Reserve assumed following the collapse of Bear Stearns.
Government officials are currently outlining their new mortgage modification plan for loans held by GSEs Fannie Mae (FNM 0.71, -0.01) and Freddie Mac (FRE 0.86, -0.02). The goal is to get troubled homeowners an affordable mortgage payment.
Earlier today, Citigroup (C 10.75, -0.46) announce a plan to prevent foreclosures, which includes the modification of mortgage terms for a group of 500,000 homeowners.DJ30 -171.25 NASDAQ -33.10 SP500 -18.98 NASDAQ Adv/Vol/Dec 832/1.07 bln/1838 NYSE Adv/Vol/Dec 573/629 mln/2481
1:30 pm : Stocks are unable to recover as sellers continue to outpace buyers. In a half-hour, the government will outline a new mortgage relief plan, according to reports.
A total of 96% of S&P 500 components are posting a loss. The biggest percent losers are General Growth Properties (GGP 0.41, -0.96), -70.0%, Genworth Financial (GNW 1.30, -1.42), -52.4%, and CB Richard Ellis Group (CBG 4.31, -1.78), -29.2%. The biggest percent gainers are MGIC Investment (MTG 3.48, +0.36), +11.5%, and Rockwell Automation (ROK 26.26, +1.38), +5.6%.DJ30 -251.89 NASDAQ -44.66 SP500 -28.77 NASDAQ Adv/Vol/Dec 706/959 mln/1951 NYSE Adv/Vol/Dec 440/570 mln/2612
1:00 pm : The stock market fluctuates modestly above session lows. All ten sectors post a loss.
Las Vegas Sands (LVS 6.19, -1.81) just reopened for trading after the company said its $2 billion stock offering will bypass shareholder approval after the audit committee believed a delay would jeopardize the offering. Early today, the casino operator priced a $1 billion common stock offering at $5.50 per share and $1.05 billion in preferred stock at a yield of 10% with warrants to purchase common stock at $6.00 per share. The company is making the offering to ensure it can meet its obligations.DJ30 -261.81 NASDAQ -46.03 SP500 -29.77 NASDAQ Adv/Vol/Dec 690/869 mln/1952 NYSE Adv/Vol/Dec 390/518 mln/2635
12:30 pm : The major indices drop to fresh session lows in broad-based weakness Commodities (-3.2%) continue to fall, while the dollar (+1.3%) gains more ground.
Market breadth is bearish. Decliners outpace advancers by 20-to-3 on the NYSE and by 3-to-1 on the Nasdaq. Volume is on the light side.DJ30 -296.85 NASDAQ -51.78 SP500 -33.02 NASDAQ Adv/Vol/Dec 659/765 mln/1931 NYSE Adv/Vol/Dec 378/457 mln/2632
12:00 pm : Stocks tumble as economic woes weigh on sentiment. At midday, the S&P 500 is down 3% in broad-based weakness.
American Express (AXP 22.52, -1.46) received approval to convert into a bank holding company, which will give it greater access to funding and other measures of the Federal Reserve. The Fed waived the normal 30-day supervisory period due to emergency conditions.
In earnings news, KKR Financial (KFN 1.82, -1.46), Las Vegas Sands (LVS 6.65, -1.35) and TJX (TJX 22.69, -1.02) missed estimates. Rockwell Automation (ROK 25.68, +0.80) Tyco (TYC 21.77) beat estimates. The latter company, however, gave downside earnings guidance for its fiscal year 2009, according to reports.
Shares of Google (GOOG 305.01, -13.77) are getting hit after the search giant had its 2009 and 2010 earnings estimates cut at Goldman Sachs due to weak macroeconomic and consumer data.
All ten of the economic sectors are posting a loss. Energy stocks (-3.7%) are down in conjunction with a 4.7% to $59.53 per barrel drop in crude oil prices.
The material sector (-4.7%) is underperforming after Alcoa (AA 11.07, -0.71) said yesterday after the close that it will cut aluminum production by an additional 350,000 metric tons per year, or 8% of annualized output.
The consumer discretionary sector falls 4.2%. GM (GM 2.82, -0.54) and Ford (F 1.75, -0.18) are under selling pressure as market participants question the automakers' futures.
Defensive-oriented consumer staples (-1.9%), utilities (-0.6%) and healthcare (-2.0%) are outperforming on a relative basis.
At 2:00 PM ET, Fannie Mae (FNM 0.67, -0.05), Freddie Mac (FRE 0.81, -0.07) and U.S. government officials are expected to announce plans to modify hundreds of thousands of loans held by the GSEs, The Wall Street Journal reported. Certain loans that are past due will be targeted, with the aim to bring the ratio of household debt to income down to 38%, according to the Journal's sources.DJ30 -255.35 NASDAQ -44.19 SP500 -27.76 NASDAQ Adv/Vol/Dec 716/687 mln/1849 NYSE Adv/Vol/Dec 478/409 mln/2520
11:25 am : Stocks trade with steep losses modestly above session lows.
U.S. automakers are again getting clipped as market participants question whether General Motors (GM 2.81, -0.54) will have enough cash to fund its operations going into next year. GM, down 16%, is trading at its lowest level in more than six decades. Ford (F 1.75, -0.18) is down 9.8%.
State Street (STT 42.02, +0.79) is a bright spot this session. The financial services firm said 2008 revenue growth is exceeding its previous expectation of between 14% and 17%, while earnings per share growth is at the high end of its 10% to 15% range.DJ30 -240.14 NASDAQ -42.19 SP500 -25.70 NASDAQ Adv/Vol/Dec 672/589 mln/1844 NYSE Adv/Vol/Dec 447/352 mln/2512
10:55 am : Stocks trade near their recently reached session lows as Citigroup (C 10.86, -0.35) falls below $11 per share for the first time since 1996.
The Dow, Nasdaq and S&P 500 are 9.6%, 5.6% and 6.4% above their respective multi-year lows reached on October 10.
Crude oil prices (-5.3% at $59.10) declined to their lowest level since January 2007 as traders bet that the slowing global economy will crimp demand.
As commodities (-1.3%) fall, the dollar advances 1.0% against a basket of leading world currencies.DJ30 -234.96 NASDAQ -39.97 SP500 -25.53 NASDAQ Adv/Vol/Dec 663/463 mln/1802 NYSE Adv/Vol/Dec 428/281 mln/2488
10:35 am : Weakness is broad based, with 96% of the S&P 500 trading in the red.
Homebuilders are down 3.9%. In a preliminary fourth quarter report, luxury homebuilder Toll Brothers (TOL 18.48, -0.47) said revenue fell 41% year-over-year. Toll Brothers CEO Robert Toll said on a Bloomberg TV interview that the number of foreclosures has not yet peaked.
At 2:00 PM ET, Fannie Mae (FNM 0.66, -0.06), Freddie Mac (FRE 0.83, -0.05) and U.S. government officials are expected announce plans to modify hundreds of thousands of loans held by the GSEs, The Wall Street Journal reported. Certain loans that are past due will be targeted, with the aim to bring the ratio of household debt to income down to 38%, according to the Journal's sources.
General Growth Properties (GGP 0.42, -0.95) is down 70% on fears that the company will face bankruptcy. The retail REIT warned in a government filing that a failure to refinance or extend $1 billion in debt due this month could trigger a default, The Wall Street Journal reported. Shares traded at $51.24 one year ago.DJ30 -208.68 NASDAQ -37.23 SP500 -22.89 NASDAQ Adv/Vol/Dec 633/375 mln/1777 NYSE Adv/Vol/Dec 411/229 mln/2456
10:00 am : Stocks extend their opening decline. All ten sectors are in the red, with notable weakness in commodity-producing names.
Material stocks (-4.1%) are under pressure. Aluminum maker Alcoa (AA 10.76, -1.02) said yesterday after the close that it will cut aluminum production by an additional 350,000 metric tons per year, or 8% of annualized output. The Dow component has cut a total of 15% of output during the second half of 2008.
Crude prices are down 4.1% to $59.81 per barrel, which is weighing on energy stocks (-3.7%).
Several notable companies had their earnings estimates slashed this morning. Many market participants believe earning estimates are too high and need to come down. The S&P 500 is currently priced at 10.3x 2008 earnings and 11.1x 2009 earnings.
Shares of Google (GOOG 305.30, -12.92) are getting hit after the search giant had its 2009 and 2010 earnings estimates cut at Goldman Sachs due to weak macroeconomic and consumer data.
Meanwhile, AIG (AIG 2.16, -0.12) had its 2008 and 2009 earnings estimates cut at Stifel, while Credit Suisse reduced its price target on AIG to $1.50 from $3.00.
Wells Fargo (WFC 28.67, +0.05) had its 2008, 2009, and 2010 earnings estimates cut at Stifel.DJ30 -262.33 NASDAQ -44.63 SP500 -28.28 NASDAQ Adv/Vol/Dec 491/205 mln/1780 NYSE Adv/Vol/Dec 275/133 mln/2467
09:35 am : Stocks drop roughly 2% at the open as economic concerns weigh on sentiment.
American Express (AXP 22.96, -1.03) received approval to convert into a bank holding company, which will give it greater access to funding and other measures of the Federal Reserve. The Fed waived the normal 30-day supervisory period due to emergency conditions.
In earnings news, KKR Financial (KFN 2.00, -1.28), Las Vegas Sands (LVS 6.65, -1.35) and TJX (TJX 22.76, -0.94) missed estimates. Rockwell Automation (ROK 25.82, +0.94) Tyco (TYC 21.74, -3.60) beat estimates.
In overseas trading, Japan's Nikkei dropped 3.0% and Hong Kong's Hang Sang fell 4.8% after U.S. stocks were unable to hold gains yesterday. In Europe, France's CAC is down 3.2%, Germany's DAX is down 2.9% and London's FTSE is down 2.5%.DJ30 -164.32 NASDAQ -26.02 SP500 -18.00
09:16 am : S&P futures vs fair value: -14.30. Nasdaq futures vs fair value: -16.30.
09:00 am : S&P futures vs fair value: -12.90. Nasdaq futures vs fair value: -15.00. Futures continue to suggest a lower start as analysts cut estimates. TJX Cos (TJX) reported third quarter earnings that missed expectations and issued downside earnings guidance. Google (GOOG) had its earnings estimates cut at Goldman Sachs due to poor macro and consumer data, Barrons.com reports. Credit Suisse cut its price target on AIG (AIG) to $1.50 from $3.00, saying book value per share will decline by at least $1 per share in the fourth quarter.
08:33 am : S&P futures vs fair value: -13.90. Nasdaq futures vs fair value: -17.80. Stock futures point to a weak opening. Crude oil futures are also under selling pressure. The front month contract is down 3.5% to $60.24 per barrel.
08:05 am : S&P futures vs fair value: -12.60. Nasdaq futures vs fair value: -16.80. Futures point to a sharply lower open. American Express (AXP) received approval to convert into a bank holding company, which will give it greater access to the bailout package and other measures of the Federal Reserve. The Fed waived the normal 30 day supervisor period due to emergency conditions. Citigroup (C) announced plans to help prevent foreclosures, including modify the mortgage terms for a group of 500,000 homeowners. On a related note, Reuters.com reports that Fannie Mae (FNM) and Freddie Mac (FRE) will announce today new steps to mitigate foreclosures. Starbucks (SBUX) reported fiscal fourth quarter earnings of $0.10 per share, excluding nonrecurring items, which fell short of the consensus estimate of $0.13. Las Vegas Sands (LVS) reported third quarter earnings that missed expectations and chose to temporarily or indefinitely suspend some of its development projects, and focus on efforts with the highest rates of expected returns. The bond market is closed in observance of Veterans Day.
06:32 am : S&P futures vs fair value: -6.10. Nasdaq futures vs fair value: -12.50.
06:32 am : Nikkei...8809.30...-272.10...-3.00%. Hang Seng...10404.90...-703.70...-4.80%.
06:32 am : FTSE...4320.11...-83.80...-1.90%. DAX...4924.19...-101.40...-2.00%.
http://biz.yahoo.com/mu/update.html
4:15 pm :
[BRIEFING.COM] Stocks fell on Tuesday as economic fears and concerns over corporate earnings overshadowed news of a government plan to help prevent foreclosures.
The S&P 500 was down as much as 3.7%, but pared some losses in the final two hours of the session to settle with a loss of 2.2%. Nine of the ten sectors fell in mostly broad-based weakness. The material sector (-4.2%) declined the most, while the defensive-oriented utilities sector (+0.2%) outperformed. Volume was below average, with 1.23 billions shares exchanging hands on the NYSE.
Government officials outlined a new mortgage modification plan for loans held by GSEs Fannie Mae (FNM 0.69, -0.03) and Freddie Mac (FRE 0.84, -0.04). The program targets the highest risk borrower who has missed three payments or more, owns and occupies the property as a primary residence and has not filed for bankruptcy. The borrower's loan payment will then be modified to be affordable, which the FHFA defined as no more than 38% of total monthly gross income.
Earlier in the day, Citigroup (C 10.85, -0.36) announced a plan to prevent foreclosures, which includes the modification of mortgage terms for a group of 500,000 homeowners.
In corporate news, American Express (AXP 22.42, -1.56) received approval to convert into a bank holding company, which will give it greater access to funding and other measures of the Federal Reserve. The Fed waived the normal 30-day supervisory period due to emergency conditions.
Third quarter earnings reports left investors disappointed. KKR Financial (KFN 1.97, -1.31), Las Vegas Sands (LVS 5.25, -2.75), Starbucks (SBUX 10.01, -0.19) and TJX (TJX 23.48, -0.22) missed estimates. Rockwell Automation (ROK 25.97, +1.09) and Tyco (TYC 21.77, -3.57) beat estimates. The latter company, however, gave downside earnings guidance for its fiscal year 2009, according to reports.
Meanwhile, analyst are cutting their earnings estimates on a large number of companies in the face the uncertain economic outlook. Google (GOOG 311.29, -7.49) had its 2009 and 2010 earnings estimates reduced at Goldman Sachs due to weak macroeconomic and consumer data.
GM (GM 2.92, -0.44) and Ford (F 1.80, -0.13) fell as traders continue to speculate if the automakers will have enough cash to make it through the economic downturn.
Alcoa (AA 10.91, -0.87) led material stocks lower after announcing that it will cut aluminum production by an additional 350,000 metric tons per year, or 8% of annualized output.
In commodity trading, crude prices plummeted 5.8% to $58.84 per barrel on the belief that the global economic slowdown will crimp demand. Commodities as a whole fell 3.5% as the dollar rose 1.4%.
The bond market was closed in observance of Veterans Day. It will reopen for normal trading hours on Wednesday.
DJ30 -176.58 NASDAQ -35.84 NQ100 -2.0% R2K -2.2% SP400 -2.4% SP500 -20.23 NASDAQ Adv/Vol/Dec 672/1.93 bln/2062 NYSE Adv/Vol/Dec 581/1.23 bln/2505
3:30 pm : Stocks are trading roughly in the middle of this session's range heading into the final half-hour.
Small-cap stocks are outperforming on a relative basis, with the Russell 2000 down 0.8% compared to the S&P 500's loss of 1.8%.DJ30 -142.17 NASDAQ -25.88 SP500 -16.79 NASDAQ Adv/Vol/Dec 911/1.56 bln/1793 NYSE Adv/Vol/Dec 711/922 mln/2357
3:00 pm : Stocks are back on the retreat after a recent rally proved unsustainable. The S&P 500 was down as much as 3.7% before cutting its losses to just 0.2%, but renewed selling pressure undercut that progress.
The defensive-oriented utilities sector is fighting to hold its gains. It is up just 0.1% and is the only sector trading in the green.
The sector's primary leader this session is Exelon (EXC 52.39, +1.90). Shares of the utility holding company are advancing on word that it has no plans to enrich its offer to acquire NRG Energy (NRG 23.23, +0.67), but remains committed to the buyout. NRG rejected Exelon's unsolicited buyout offer yesterday.DJ30 -178.49 NASDAQ -33.27 SP500 -21.99 NASDAQ Adv/Vol/Dec 892/1.43 bln/1804 NYSE Adv/Vol/Dec 670/845 mln/2396
2:35 pm : The S&P 500 bounces to session highs. It is currently trading with a modest loss after being down as much as 3.7%. Buying interest is broad-based, with a notable recovery within financials (-0.4%).
With regard to the Federal Housing Finance Agency's plan to get struggling homeowners into affordable GSE-held mortgages, the program targets the highest risk borrower who has missed three payments or more, owns and occupies the property as a primary residence and has not filed for bankruptcy. The borrower's loan payment will then be modified to be affordable, which the FHFA defined as no more than 38% of total monthly gross income.
Modifications will be done through a mix of reducing the mortgage interest rate, extending the loan or deferring payment on part of the principal. If these modifications still do not create an affordable payment, the borrower's situation will be evaluated through a customized process.DJ30 -36.88 NASDAQ -8.85 SP500 -5.52 NASDAQ Adv/Vol/Dec 1083/1.27 bln/1606 NYSE Adv/Vol/Dec 943/752 mln/2112
2:05 pm : Stocks recover some ground after CNBC reported that BlackRock's (BLK 113.07, -2.48) vice chairman said the $30 billion Bear Stearns mortgage portfolio is generating better cash flows than the market price implies. BlackRock is managing the $30 billion in assets that the Federal Reserve assumed following the collapse of Bear Stearns.
Government officials are currently outlining their new mortgage modification plan for loans held by GSEs Fannie Mae (FNM 0.71, -0.01) and Freddie Mac (FRE 0.86, -0.02). The goal is to get troubled homeowners an affordable mortgage payment.
Earlier today, Citigroup (C 10.75, -0.46) announce a plan to prevent foreclosures, which includes the modification of mortgage terms for a group of 500,000 homeowners.DJ30 -171.25 NASDAQ -33.10 SP500 -18.98 NASDAQ Adv/Vol/Dec 832/1.07 bln/1838 NYSE Adv/Vol/Dec 573/629 mln/2481
1:30 pm : Stocks are unable to recover as sellers continue to outpace buyers. In a half-hour, the government will outline a new mortgage relief plan, according to reports.
A total of 96% of S&P 500 components are posting a loss. The biggest percent losers are General Growth Properties (GGP 0.41, -0.96), -70.0%, Genworth Financial (GNW 1.30, -1.42), -52.4%, and CB Richard Ellis Group (CBG 4.31, -1.78), -29.2%. The biggest percent gainers are MGIC Investment (MTG 3.48, +0.36), +11.5%, and Rockwell Automation (ROK 26.26, +1.38), +5.6%.DJ30 -251.89 NASDAQ -44.66 SP500 -28.77 NASDAQ Adv/Vol/Dec 706/959 mln/1951 NYSE Adv/Vol/Dec 440/570 mln/2612
1:00 pm : The stock market fluctuates modestly above session lows. All ten sectors post a loss.
Las Vegas Sands (LVS 6.19, -1.81) just reopened for trading after the company said its $2 billion stock offering will bypass shareholder approval after the audit committee believed a delay would jeopardize the offering. Early today, the casino operator priced a $1 billion common stock offering at $5.50 per share and $1.05 billion in preferred stock at a yield of 10% with warrants to purchase common stock at $6.00 per share. The company is making the offering to ensure it can meet its obligations.DJ30 -261.81 NASDAQ -46.03 SP500 -29.77 NASDAQ Adv/Vol/Dec 690/869 mln/1952 NYSE Adv/Vol/Dec 390/518 mln/2635
12:30 pm : The major indices drop to fresh session lows in broad-based weakness Commodities (-3.2%) continue to fall, while the dollar (+1.3%) gains more ground.
Market breadth is bearish. Decliners outpace advancers by 20-to-3 on the NYSE and by 3-to-1 on the Nasdaq. Volume is on the light side.DJ30 -296.85 NASDAQ -51.78 SP500 -33.02 NASDAQ Adv/Vol/Dec 659/765 mln/1931 NYSE Adv/Vol/Dec 378/457 mln/2632
12:00 pm : Stocks tumble as economic woes weigh on sentiment. At midday, the S&P 500 is down 3% in broad-based weakness.
American Express (AXP 22.52, -1.46) received approval to convert into a bank holding company, which will give it greater access to funding and other measures of the Federal Reserve. The Fed waived the normal 30-day supervisory period due to emergency conditions.
In earnings news, KKR Financial (KFN 1.82, -1.46), Las Vegas Sands (LVS 6.65, -1.35) and TJX (TJX 22.69, -1.02) missed estimates. Rockwell Automation (ROK 25.68, +0.80) Tyco (TYC 21.77) beat estimates. The latter company, however, gave downside earnings guidance for its fiscal year 2009, according to reports.
Shares of Google (GOOG 305.01, -13.77) are getting hit after the search giant had its 2009 and 2010 earnings estimates cut at Goldman Sachs due to weak macroeconomic and consumer data.
All ten of the economic sectors are posting a loss. Energy stocks (-3.7%) are down in conjunction with a 4.7% to $59.53 per barrel drop in crude oil prices.
The material sector (-4.7%) is underperforming after Alcoa (AA 11.07, -0.71) said yesterday after the close that it will cut aluminum production by an additional 350,000 metric tons per year, or 8% of annualized output.
The consumer discretionary sector falls 4.2%. GM (GM 2.82, -0.54) and Ford (F 1.75, -0.18) are under selling pressure as market participants question the automakers' futures.
Defensive-oriented consumer staples (-1.9%), utilities (-0.6%) and healthcare (-2.0%) are outperforming on a relative basis.
At 2:00 PM ET, Fannie Mae (FNM 0.67, -0.05), Freddie Mac (FRE 0.81, -0.07) and U.S. government officials are expected to announce plans to modify hundreds of thousands of loans held by the GSEs, The Wall Street Journal reported. Certain loans that are past due will be targeted, with the aim to bring the ratio of household debt to income down to 38%, according to the Journal's sources.DJ30 -255.35 NASDAQ -44.19 SP500 -27.76 NASDAQ Adv/Vol/Dec 716/687 mln/1849 NYSE Adv/Vol/Dec 478/409 mln/2520
11:25 am : Stocks trade with steep losses modestly above session lows.
U.S. automakers are again getting clipped as market participants question whether General Motors (GM 2.81, -0.54) will have enough cash to fund its operations going into next year. GM, down 16%, is trading at its lowest level in more than six decades. Ford (F 1.75, -0.18) is down 9.8%.
State Street (STT 42.02, +0.79) is a bright spot this session. The financial services firm said 2008 revenue growth is exceeding its previous expectation of between 14% and 17%, while earnings per share growth is at the high end of its 10% to 15% range.DJ30 -240.14 NASDAQ -42.19 SP500 -25.70 NASDAQ Adv/Vol/Dec 672/589 mln/1844 NYSE Adv/Vol/Dec 447/352 mln/2512
10:55 am : Stocks trade near their recently reached session lows as Citigroup (C 10.86, -0.35) falls below $11 per share for the first time since 1996.
The Dow, Nasdaq and S&P 500 are 9.6%, 5.6% and 6.4% above their respective multi-year lows reached on October 10.
Crude oil prices (-5.3% at $59.10) declined to their lowest level since January 2007 as traders bet that the slowing global economy will crimp demand.
As commodities (-1.3%) fall, the dollar advances 1.0% against a basket of leading world currencies.DJ30 -234.96 NASDAQ -39.97 SP500 -25.53 NASDAQ Adv/Vol/Dec 663/463 mln/1802 NYSE Adv/Vol/Dec 428/281 mln/2488
10:35 am : Weakness is broad based, with 96% of the S&P 500 trading in the red.
Homebuilders are down 3.9%. In a preliminary fourth quarter report, luxury homebuilder Toll Brothers (TOL 18.48, -0.47) said revenue fell 41% year-over-year. Toll Brothers CEO Robert Toll said on a Bloomberg TV interview that the number of foreclosures has not yet peaked.
At 2:00 PM ET, Fannie Mae (FNM 0.66, -0.06), Freddie Mac (FRE 0.83, -0.05) and U.S. government officials are expected announce plans to modify hundreds of thousands of loans held by the GSEs, The Wall Street Journal reported. Certain loans that are past due will be targeted, with the aim to bring the ratio of household debt to income down to 38%, according to the Journal's sources.
General Growth Properties (GGP 0.42, -0.95) is down 70% on fears that the company will face bankruptcy. The retail REIT warned in a government filing that a failure to refinance or extend $1 billion in debt due this month could trigger a default, The Wall Street Journal reported. Shares traded at $51.24 one year ago.DJ30 -208.68 NASDAQ -37.23 SP500 -22.89 NASDAQ Adv/Vol/Dec 633/375 mln/1777 NYSE Adv/Vol/Dec 411/229 mln/2456
10:00 am : Stocks extend their opening decline. All ten sectors are in the red, with notable weakness in commodity-producing names.
Material stocks (-4.1%) are under pressure. Aluminum maker Alcoa (AA 10.76, -1.02) said yesterday after the close that it will cut aluminum production by an additional 350,000 metric tons per year, or 8% of annualized output. The Dow component has cut a total of 15% of output during the second half of 2008.
Crude prices are down 4.1% to $59.81 per barrel, which is weighing on energy stocks (-3.7%).
Several notable companies had their earnings estimates slashed this morning. Many market participants believe earning estimates are too high and need to come down. The S&P 500 is currently priced at 10.3x 2008 earnings and 11.1x 2009 earnings.
Shares of Google (GOOG 305.30, -12.92) are getting hit after the search giant had its 2009 and 2010 earnings estimates cut at Goldman Sachs due to weak macroeconomic and consumer data.
Meanwhile, AIG (AIG 2.16, -0.12) had its 2008 and 2009 earnings estimates cut at Stifel, while Credit Suisse reduced its price target on AIG to $1.50 from $3.00.
Wells Fargo (WFC 28.67, +0.05) had its 2008, 2009, and 2010 earnings estimates cut at Stifel.DJ30 -262.33 NASDAQ -44.63 SP500 -28.28 NASDAQ Adv/Vol/Dec 491/205 mln/1780 NYSE Adv/Vol/Dec 275/133 mln/2467
09:35 am : Stocks drop roughly 2% at the open as economic concerns weigh on sentiment.
American Express (AXP 22.96, -1.03) received approval to convert into a bank holding company, which will give it greater access to funding and other measures of the Federal Reserve. The Fed waived the normal 30-day supervisory period due to emergency conditions.
In earnings news, KKR Financial (KFN 2.00, -1.28), Las Vegas Sands (LVS 6.65, -1.35) and TJX (TJX 22.76, -0.94) missed estimates. Rockwell Automation (ROK 25.82, +0.94) Tyco (TYC 21.74, -3.60) beat estimates.
In overseas trading, Japan's Nikkei dropped 3.0% and Hong Kong's Hang Sang fell 4.8% after U.S. stocks were unable to hold gains yesterday. In Europe, France's CAC is down 3.2%, Germany's DAX is down 2.9% and London's FTSE is down 2.5%.DJ30 -164.32 NASDAQ -26.02 SP500 -18.00
09:16 am : S&P futures vs fair value: -14.30. Nasdaq futures vs fair value: -16.30.
09:00 am : S&P futures vs fair value: -12.90. Nasdaq futures vs fair value: -15.00. Futures continue to suggest a lower start as analysts cut estimates. TJX Cos (TJX) reported third quarter earnings that missed expectations and issued downside earnings guidance. Google (GOOG) had its earnings estimates cut at Goldman Sachs due to poor macro and consumer data, Barrons.com reports. Credit Suisse cut its price target on AIG (AIG) to $1.50 from $3.00, saying book value per share will decline by at least $1 per share in the fourth quarter.
08:33 am : S&P futures vs fair value: -13.90. Nasdaq futures vs fair value: -17.80. Stock futures point to a weak opening. Crude oil futures are also under selling pressure. The front month contract is down 3.5% to $60.24 per barrel.
08:05 am : S&P futures vs fair value: -12.60. Nasdaq futures vs fair value: -16.80. Futures point to a sharply lower open. American Express (AXP) received approval to convert into a bank holding company, which will give it greater access to the bailout package and other measures of the Federal Reserve. The Fed waived the normal 30 day supervisor period due to emergency conditions. Citigroup (C) announced plans to help prevent foreclosures, including modify the mortgage terms for a group of 500,000 homeowners. On a related note, Reuters.com reports that Fannie Mae (FNM) and Freddie Mac (FRE) will announce today new steps to mitigate foreclosures. Starbucks (SBUX) reported fiscal fourth quarter earnings of $0.10 per share, excluding nonrecurring items, which fell short of the consensus estimate of $0.13. Las Vegas Sands (LVS) reported third quarter earnings that missed expectations and chose to temporarily or indefinitely suspend some of its development projects, and focus on efforts with the highest rates of expected returns. The bond market is closed in observance of Veterans Day.
06:32 am : S&P futures vs fair value: -6.10. Nasdaq futures vs fair value: -12.50.
06:32 am : Nikkei...8809.30...-272.10...-3.00%. Hang Seng...10404.90...-703.70...-4.80%.
06:32 am : FTSE...4320.11...-83.80...-1.90%. DAX...4924.19...-101.40...-2.00%.
Discover What Traders Are Watching
Explore small cap ideas before they hit the headlines.
