AI
Monday, November 17, 2008 8:34:33 PM
Market Update 081117
http://biz.yahoo.com/mu/update.html
4:25 pm : Stocks posted sharp losses on Monday as economic concerns and corporate job cuts continued to weigh on investor sentiment.
Stocks made a recovery attempt to briefly trade with a gain, but a surge in selling interest in the final minutes left the S&P 500 near its session low at the close. Trading action was choppy on below average volume. All ten economic sectors posted a loss.
In corporate news, Citigroup (C 8.87, -0.65) announced plans to slash as many as 52,000 jobs from its workforce, which totaled 352,000 at the end of the third quarter, in an effort to cut costs due to the financial market turmoil. Citi has already eliminated 36,000 positions in 2008. The financial sector was a laggard with a decline of 6.0%.
Lowe's (LOW 19.01, +0.78) topped expectations for the third quarter, but issued downside earnings guidance for the fourth quarter after warning that consumers will likely delay discretionary home improvement and big ticket purchases. The results were better-than-feared following downside guidance from several retailers last week, resulting in a bounce in shares of Lowe's.
Target (TGT 31.69, -1.34) reported in-line earnings, but decided to temporarily suspend its share repurchase program due to the uncertain economic environment. The retailer also cut its 2009 capital expenditure forecast by $1 billion. Retailers as a whole fell 2.7%.
The group of twenty finance ministers, known as the G-20, announced their latest initiatives, but did not produce any agreements that would alter the near-term picture in any meaningful way. Among other measures, the G-20 agreed to continue to use fiscal measures to help stimulate domestic demand and help developing economies gain access to credit. The G-20 also said there will be more international cooperation among regulators and that banks will meet stricter standards. For the next 12 months the G-20 countries will not implement any new trade barriers.
Economic conditions remain weak across the globe -- Japan officially fell into a recession for the first time since 2001, joining the Eurozone.
In U.S. economic news, industrial production bounced to an increase of 1.3% in October from a decrease of 3.7% in September. The increase should be seen as temporary as it was in part due to a recovery in mining (oil) and regional manufacturing output following hurricanes Gustav and Ike.
The November New York Empire Manufacturing Index, a regional manufacturing survey, declined to -25.4 from its October level of -24.6. While the reading reflects contraction in manufacturing in the New York region, it was slightly better than the -26.0 that economists expected.
Oil futures ($55.01, -3.6%) traded in a volatile manner, with OPEC cutting its 2009 demand forecast to 30.9 million barrels per day from 31.1 million. OPEC said evidence suggests the global economy will be weaker than the cartel had previously anticipated.DJ30 -223.73 NASDAQ -34.80 NQ100 -2.4% R2K -1.1% SP400 -1.6% SP500 -22.54 NASDAQ Adv/Vol/Dec 861/1.85 bln/1918 NYSE Adv/Vol/Dec 767/1.31 bln/2385
3:30 pm : Stocks continue to trade in a tight range with modest losses. The S&P 500 was down as much as 2.8% and up as much as 1.0% this session.
A total of 15 companies are confirmed to report after the market close and before the open tomorrow, including Home Depot (HD 20.21, -0.33) and Saks (SKS 3.92, -0.14). The producer price index will be released at 8:30 AM ET, with expectations for third straight month of declines as food and energy prices fall.DJ30 -57.83 NASDAQ -8.14 SP500 -4.84 NASDAQ Adv/Vol/Dec 1074/1.50 bln/1696 NYSE Adv/Vol/Dec 1062/939 mln/2069
3:00 pm : Stocks once again test the unchanged mark only to run into selling resistance. Small- and mid-cap stocks are posting slight gains.
Bloomberg reported that the Bush administration will not seek the remaining $350 billion from the $700 billion financial rescue plan, and will leave it to the Obama administration.DJ30 -96.54 NASDAQ -14.29 SP500 -8.22 NASDAQ Adv/Vol/Dec 1104/1.36 bln/1642 NYSE Adv/Vol/Dec 1168/849 mln/1947
2:30 pm : The stock market recovers to the unchanged mark and then runs into some selling resistance, sending it to a loss of 1%.
Crude oil prices fall to session lows, currently down 3.4% at $55.10 per barrel.DJ30 -88.41 NASDAQ -14.44 SP500 -8.73 NASDAQ Adv/Vol/Dec 1045/1.24 bln/1678 NYSE Adv/Vol/Dec 1033/765 mln/2061
1:55 pm : Stocks trade in a relatively tight range with modest losses. Treasuries extend their gains, with the 10-year note up 18 ticks and the 30-year bond up 25 ticks.
Starbucks (SBUX 8.86, +0.25) had its credit rating on $550 million of senior unsecured notes downgraded to Baa2 from Baa1 at Moody's. The downgrade was due to weaker-than-expected operating performance. The debt currently yields 7.6% and matures in 2017.DJ30 -46.84 NASDAQ -6.98 SP500 -3.10 NASDAQ Adv/Vol/Dec 1165/1.10 bln/1527 NYSE Adv/Vol/Dec 1243/686 mln/1837
1:30 pm : The bulls are unable to sustain the recovery as stocks slip into the red. Still, losses are modest.
Market breadth leans negative. Decliners outpace advancers by 5-to-3 on the NYSE and by 3-to-2 on the Nasdaq.DJ30 -34.45 NASDAQ -8.83 SP500 -2.41 NASDAQ Adv/Vol/Dec 1092/998 mln/1582 NYSE Adv/Vol/Dec 1164/632 mln/1907
1:00 pm : The major indices continue to trade with modest gains, with only the financial sector remaining in the red.
Still, even financials (-1.1%) have made a significant recovery from session lows when they were down 5.0%.
Small- and mid-caps are outperforming with the Russell 2000 Index up 1.3% and the S&P 400 up 1.0%.DJ30 +9.87 NASDAQ +5.01 SP500 +3.62 NASDAQ Adv/Vol/Dec 1314/897 mln/1346 NYSE Adv/Vol/Dec 1451/575 mln/1600
12:35 pm : All three of the major indices climb into positive territory, with the S&P 500 posting the largest gain of 0.6%. There is not a specific news item to account for the buying interest.
The recovery effort is being led by energy stocks (+1.8%) as Exxon Mobil (XOM 75.84, +2.16) gains 2.9%.
Reuters reports that a Democratic leadership aide said the U.S. Senate is unlikely to pass a broad economic stimulus this year.DJ30 +35.52 NASDAQ +3.19 SP500 +4.55 NASDAQ Adv/Vol/Dec 1181/800 mln/1461 NYSE Adv/Vol/Dec 1361/516 mln/1683
12:05 pm : A surge in buying interest shortly before midday sends the stock market to its best level of the session near the unchanged mark as the bulls try to look past economic concerns and more job cuts.
The S&P 500 was down as much as 2.8%, but has since recovered to a loss of just 0.4% as a broad-based recovery effort lifts stocks. Six of the ten sectors are posting a gain, helping to offset a 2.3% decline in financial stocks.
Citigroup (C 9.53, +0.01) announced plans to slash 52,000 jobs from its 352,000 workforce in effort to cut costs due to the financial market turmoil. Citi has already cut 36,000 positions in 2008.
In earnings news, Lowe's (LOW 19.97, +1.74) topped expectations for the third quarter, but issued downside guidance for the fourth quarter after warning that consumers will likely delay discretionary home improvement and big ticket purchases. Target (TGT 32.80, -0.23) reported in-line earnings, but decided to temporarily suspend its share repurchase program due to the uncertain economic environment. It appears that the cautious outlooks were better-than-feared following downside guidance from several retailers last week, resulting in a bounce in shares of Lowe's and retailers as a whole (+1.0%).
Separately, the G-20 summit did not produce any agreements that would alter the near-term picture in any meaningful way. The G-20 agreed to continue to use fiscal measures to help stimulate domestic demand, help developing economies gain access to credit, among other initiatives. The G-20 also said there will be more international cooperation among regulators and banks will meet stricter standards. For the next 12 months the G-20 countries will not implement any new trade barriers.
Economic conditions remain weak across the globe -- Japan officially fell into a recession for the first time since 2001, joining the Eurozone.
In U.S. economic news, industrial production bounced to a increase of 1.3% in October from a decrease of 3.7% in September. The increase should be seen as temporary as it was in part due to recovery in mining and regional manufacturing output following hurricane Gustav.
Oil futures ($56.94, -0.3%) have had a volatile session. OPEC cut its demand forecast for 2009 by 0.7% in response to evidence that the global economy will be weaker than the cartel had expected. OPEC said due to the volatile situation, closer monitoring and more frequent intervention are required, indicating it is willing to cut output ahead of scheduled meetings.DJ30 -32.74 NASDAQ -5.94 SP500 -3.59 NASDAQ Adv/Vol/Dec 1090/704 mln/1523 NYSE Adv/Vol/Dec 1177/453 mln/1847
11:30 am : Stocks trade with substantial losses, but are above session lows. The 10-year Treasury note is up 13 ticks as investors seek safety.
Target (TGT 32.80, -0.23) on its conference call said that its gross margin performance may not be repeated in the fourth quarter on concerns that the pace of same-store sales will result in clearance markdowns. Despite the cautious outlooks from Target and Lowe's (LOW 19.74, +1.51), retailers are up 0.2% this session.DJ30 -169.20 NASDAQ -25.25 SP500 -16.88 NASDAQ Adv/Vol/Dec 849/574 mln/1725 NYSE Adv/Vol/Dec 770/368 mln/2222
11:00 am : Stocks trade near session lows as economic concerns continue to weigh on investor sentiment.
There continues to be speculation regarding government intervention to aid General Motors (GM 3.31, +0.30), Ford (F 1.76, -0.04) and Chrysler. GM told federal officials that a bankruptcy filing would result in a chain reaction that would damage suppliers and dealers, The Wall Street Journal reported.
The risk of running out of cash has taken a toll on shares of GM and Ford, sending the stocks down 89% and 79%, respectively, from their 52-week highs. The automakers' bonds have also been hammered. A Ford bond maturing in 2018 is priced at 26 cents on the dollar to yield 30.9% while a GM bond maturing in 2016 is priced at 22 cents on the dollar to yield 43.5%.DJ30 -222.38 NASDAQ -32.01 SP500 -22.04 NASDAQ Adv/Vol/Dec 769/468 mln/1742 NYSE Adv/Vol/Dec 675/305 mln/2307
10:30 am : The major indices fall to session lows, with financials (-4.0%) showing notable weakness.
Goldman Sachs (GS 62.84, -3.89) and JPMorgan Chase (JPM 33.00, -1.47) are among the main laggards.
Weakness is broad-based, as all ten of the sectors are posting a decline.DJ30 -230.90 NASDAQ -31.91 SP500 -22.17 NASDAQ Adv/Vol/Dec 733/349 mln/1689 NYSE Adv/Vol/Dec 615/230 mln/2278
10:00 am : The stock market extends it declines and then recovers a bit. The energy sector (+1.1%) is providing leadership as crude oil prices ($58.28, +2.2%) rebound into the green.
The financial sector (-2.0%) is the main laggard. This morning Citigroup (C 9.20, -0.30) said it will cut 52,000 jobs from its 352,000 workforce. Citi has already cut roughly 36,000 positions in 2008. Meanwhile, there were reports that JPMorgan Chase (JPM 33.83, -0.64) is mulling job cuts.
In earnings news, Lowe's (LOW 14.64, +0.41) topped expectations for the third quarter, but issued downside guidance for the fourth quarter after warning that consumers will likely delay discretionary home improvement and big ticket purchases. Target (TGT 34.34, +1.27) reported in-line earnings for the third quarter, but decided to temporarily suspend its share repurchase program.DJ30 -101.29 NASDAQ -12.22 SP500 -9.25 NASDAQ Adv/Vol/Dec 1046/191 mln/1220 NYSE Adv/Vol/Dec 1113/132 mln/1670
09:40 am : The stock market kicks of the week on a negative note, although the loss is less severe than early indications after it was reported that October industrial production increased by a larger-than-expected amount.
The G-20 summit did not produce any agreements that would alter the near-term picture in any meaningful way, which is keeping economic concerns at the forefront. The G-20 agreed to continue to use fiscal measures to help stimulate domestic demand, help developing economies gain access to credit, among other initiatives. The G-20 also said there will be more international cooperation among regulators and banks will meet stricter standards. For the next 12 months the G-20 countries will not implement any new trade barriers.
Economic conditions remain weak across the globe -- Japan officially fell into a recession for the first time since 2001, joining the Eurozone.DJ30 -110.47 NASDAQ -18.61 SP500 -11.13
09:20 am : S&P futures vs fair value: -15.80. Nasdaq futures vs fair value: -28.80. Futures recover some ground following a larger-than-expected increase in industrial production. Just hitting the wires, October industrial production rose by 1.3% after falling 3.7% in September. Economists expected an increase of 0.2%. Capacity utilization was 76.4% in October, a slight dip from utilization of 76.5% in September. Economists expected utilization of 76.5%. Separately, General Electric (GE) had its 2009 and 2010 earnings estimates cut at Citi. Apple (AAPL) had its first quarter earnings estimates cut at Barclays.
08:54 am : S&P futures vs fair value: -20.80. Nasdaq futures vs fair value: -34.80. Futures are under pressure in premarket trading, with S&P 500 futures approaching session lows. Meanwhile, oil prices are down 1.4%.
08:32 am : S&P futures vs fair value: -17.40. Nasdaq futures vs fair value: -32.80. Stocks futures continue to point to a negative open. The November New York empire manufacturing index, a regional manufacturing survey, declined to -25.4 from its October level of -24.6. Economists expected a reading of -26.0. Citigroup (C) said it will cut 20% of its workforce from peak levels down to roughly 300,000, according the company's presentation slides. Citigroup had roughly 350,000 employees as of Sept. 30. Citi also plans to reduce expenses by 20% from peak levels. In earnings news, Target (TGT) earned $0.49 per share in the third quarter, matching estimates. The retailer is temporarily suspending its buyback program.
08:00 am : S&P futures vs fair value: -17.60. Nasdaq futures vs fair value: -30.50. Futures suggest a lower start to the trading day. Japan officially fell into a recession for the first time since 2001, joining the Eurozone. The Nikkei managed to gain 0.7%. Separately, the G-20 agreed to continue to use fiscal measures to help stimulate domestic demand, help developing economies gain access to credit, among other initiatives. The G-20 also said there will be more international cooperation among regulators and banks will meet stricter standards. For the next 12 months the G-20 countries will not implement any new trade barriers. In corporate news, there is continued talk about possible government aid for General Motors (GM), Ford (F) and Chrysler. Lowe's (LOW) posted better-than-expected third quarter earnings, but gave downside fourth quarter earnings guidance.
06:39 am : S&P futures vs fair value: -18.00. Nasdaq futures vs fair value: -36.80.
06:39 am : Nikkei...8522.58...+60.20...+0.70%. Hang Seng...13529.53...-13.10...-0.10%.
06:39 am : FTSE...4154.16...-74.80...-1.80%. DAX...4595.18...-114.10...-2.40%.
http://biz.yahoo.com/mu/update.html
4:25 pm : Stocks posted sharp losses on Monday as economic concerns and corporate job cuts continued to weigh on investor sentiment.
Stocks made a recovery attempt to briefly trade with a gain, but a surge in selling interest in the final minutes left the S&P 500 near its session low at the close. Trading action was choppy on below average volume. All ten economic sectors posted a loss.
In corporate news, Citigroup (C 8.87, -0.65) announced plans to slash as many as 52,000 jobs from its workforce, which totaled 352,000 at the end of the third quarter, in an effort to cut costs due to the financial market turmoil. Citi has already eliminated 36,000 positions in 2008. The financial sector was a laggard with a decline of 6.0%.
Lowe's (LOW 19.01, +0.78) topped expectations for the third quarter, but issued downside earnings guidance for the fourth quarter after warning that consumers will likely delay discretionary home improvement and big ticket purchases. The results were better-than-feared following downside guidance from several retailers last week, resulting in a bounce in shares of Lowe's.
Target (TGT 31.69, -1.34) reported in-line earnings, but decided to temporarily suspend its share repurchase program due to the uncertain economic environment. The retailer also cut its 2009 capital expenditure forecast by $1 billion. Retailers as a whole fell 2.7%.
The group of twenty finance ministers, known as the G-20, announced their latest initiatives, but did not produce any agreements that would alter the near-term picture in any meaningful way. Among other measures, the G-20 agreed to continue to use fiscal measures to help stimulate domestic demand and help developing economies gain access to credit. The G-20 also said there will be more international cooperation among regulators and that banks will meet stricter standards. For the next 12 months the G-20 countries will not implement any new trade barriers.
Economic conditions remain weak across the globe -- Japan officially fell into a recession for the first time since 2001, joining the Eurozone.
In U.S. economic news, industrial production bounced to an increase of 1.3% in October from a decrease of 3.7% in September. The increase should be seen as temporary as it was in part due to a recovery in mining (oil) and regional manufacturing output following hurricanes Gustav and Ike.
The November New York Empire Manufacturing Index, a regional manufacturing survey, declined to -25.4 from its October level of -24.6. While the reading reflects contraction in manufacturing in the New York region, it was slightly better than the -26.0 that economists expected.
Oil futures ($55.01, -3.6%) traded in a volatile manner, with OPEC cutting its 2009 demand forecast to 30.9 million barrels per day from 31.1 million. OPEC said evidence suggests the global economy will be weaker than the cartel had previously anticipated.DJ30 -223.73 NASDAQ -34.80 NQ100 -2.4% R2K -1.1% SP400 -1.6% SP500 -22.54 NASDAQ Adv/Vol/Dec 861/1.85 bln/1918 NYSE Adv/Vol/Dec 767/1.31 bln/2385
3:30 pm : Stocks continue to trade in a tight range with modest losses. The S&P 500 was down as much as 2.8% and up as much as 1.0% this session.
A total of 15 companies are confirmed to report after the market close and before the open tomorrow, including Home Depot (HD 20.21, -0.33) and Saks (SKS 3.92, -0.14). The producer price index will be released at 8:30 AM ET, with expectations for third straight month of declines as food and energy prices fall.DJ30 -57.83 NASDAQ -8.14 SP500 -4.84 NASDAQ Adv/Vol/Dec 1074/1.50 bln/1696 NYSE Adv/Vol/Dec 1062/939 mln/2069
3:00 pm : Stocks once again test the unchanged mark only to run into selling resistance. Small- and mid-cap stocks are posting slight gains.
Bloomberg reported that the Bush administration will not seek the remaining $350 billion from the $700 billion financial rescue plan, and will leave it to the Obama administration.DJ30 -96.54 NASDAQ -14.29 SP500 -8.22 NASDAQ Adv/Vol/Dec 1104/1.36 bln/1642 NYSE Adv/Vol/Dec 1168/849 mln/1947
2:30 pm : The stock market recovers to the unchanged mark and then runs into some selling resistance, sending it to a loss of 1%.
Crude oil prices fall to session lows, currently down 3.4% at $55.10 per barrel.DJ30 -88.41 NASDAQ -14.44 SP500 -8.73 NASDAQ Adv/Vol/Dec 1045/1.24 bln/1678 NYSE Adv/Vol/Dec 1033/765 mln/2061
1:55 pm : Stocks trade in a relatively tight range with modest losses. Treasuries extend their gains, with the 10-year note up 18 ticks and the 30-year bond up 25 ticks.
Starbucks (SBUX 8.86, +0.25) had its credit rating on $550 million of senior unsecured notes downgraded to Baa2 from Baa1 at Moody's. The downgrade was due to weaker-than-expected operating performance. The debt currently yields 7.6% and matures in 2017.DJ30 -46.84 NASDAQ -6.98 SP500 -3.10 NASDAQ Adv/Vol/Dec 1165/1.10 bln/1527 NYSE Adv/Vol/Dec 1243/686 mln/1837
1:30 pm : The bulls are unable to sustain the recovery as stocks slip into the red. Still, losses are modest.
Market breadth leans negative. Decliners outpace advancers by 5-to-3 on the NYSE and by 3-to-2 on the Nasdaq.DJ30 -34.45 NASDAQ -8.83 SP500 -2.41 NASDAQ Adv/Vol/Dec 1092/998 mln/1582 NYSE Adv/Vol/Dec 1164/632 mln/1907
1:00 pm : The major indices continue to trade with modest gains, with only the financial sector remaining in the red.
Still, even financials (-1.1%) have made a significant recovery from session lows when they were down 5.0%.
Small- and mid-caps are outperforming with the Russell 2000 Index up 1.3% and the S&P 400 up 1.0%.DJ30 +9.87 NASDAQ +5.01 SP500 +3.62 NASDAQ Adv/Vol/Dec 1314/897 mln/1346 NYSE Adv/Vol/Dec 1451/575 mln/1600
12:35 pm : All three of the major indices climb into positive territory, with the S&P 500 posting the largest gain of 0.6%. There is not a specific news item to account for the buying interest.
The recovery effort is being led by energy stocks (+1.8%) as Exxon Mobil (XOM 75.84, +2.16) gains 2.9%.
Reuters reports that a Democratic leadership aide said the U.S. Senate is unlikely to pass a broad economic stimulus this year.DJ30 +35.52 NASDAQ +3.19 SP500 +4.55 NASDAQ Adv/Vol/Dec 1181/800 mln/1461 NYSE Adv/Vol/Dec 1361/516 mln/1683
12:05 pm : A surge in buying interest shortly before midday sends the stock market to its best level of the session near the unchanged mark as the bulls try to look past economic concerns and more job cuts.
The S&P 500 was down as much as 2.8%, but has since recovered to a loss of just 0.4% as a broad-based recovery effort lifts stocks. Six of the ten sectors are posting a gain, helping to offset a 2.3% decline in financial stocks.
Citigroup (C 9.53, +0.01) announced plans to slash 52,000 jobs from its 352,000 workforce in effort to cut costs due to the financial market turmoil. Citi has already cut 36,000 positions in 2008.
In earnings news, Lowe's (LOW 19.97, +1.74) topped expectations for the third quarter, but issued downside guidance for the fourth quarter after warning that consumers will likely delay discretionary home improvement and big ticket purchases. Target (TGT 32.80, -0.23) reported in-line earnings, but decided to temporarily suspend its share repurchase program due to the uncertain economic environment. It appears that the cautious outlooks were better-than-feared following downside guidance from several retailers last week, resulting in a bounce in shares of Lowe's and retailers as a whole (+1.0%).
Separately, the G-20 summit did not produce any agreements that would alter the near-term picture in any meaningful way. The G-20 agreed to continue to use fiscal measures to help stimulate domestic demand, help developing economies gain access to credit, among other initiatives. The G-20 also said there will be more international cooperation among regulators and banks will meet stricter standards. For the next 12 months the G-20 countries will not implement any new trade barriers.
Economic conditions remain weak across the globe -- Japan officially fell into a recession for the first time since 2001, joining the Eurozone.
In U.S. economic news, industrial production bounced to a increase of 1.3% in October from a decrease of 3.7% in September. The increase should be seen as temporary as it was in part due to recovery in mining and regional manufacturing output following hurricane Gustav.
Oil futures ($56.94, -0.3%) have had a volatile session. OPEC cut its demand forecast for 2009 by 0.7% in response to evidence that the global economy will be weaker than the cartel had expected. OPEC said due to the volatile situation, closer monitoring and more frequent intervention are required, indicating it is willing to cut output ahead of scheduled meetings.DJ30 -32.74 NASDAQ -5.94 SP500 -3.59 NASDAQ Adv/Vol/Dec 1090/704 mln/1523 NYSE Adv/Vol/Dec 1177/453 mln/1847
11:30 am : Stocks trade with substantial losses, but are above session lows. The 10-year Treasury note is up 13 ticks as investors seek safety.
Target (TGT 32.80, -0.23) on its conference call said that its gross margin performance may not be repeated in the fourth quarter on concerns that the pace of same-store sales will result in clearance markdowns. Despite the cautious outlooks from Target and Lowe's (LOW 19.74, +1.51), retailers are up 0.2% this session.DJ30 -169.20 NASDAQ -25.25 SP500 -16.88 NASDAQ Adv/Vol/Dec 849/574 mln/1725 NYSE Adv/Vol/Dec 770/368 mln/2222
11:00 am : Stocks trade near session lows as economic concerns continue to weigh on investor sentiment.
There continues to be speculation regarding government intervention to aid General Motors (GM 3.31, +0.30), Ford (F 1.76, -0.04) and Chrysler. GM told federal officials that a bankruptcy filing would result in a chain reaction that would damage suppliers and dealers, The Wall Street Journal reported.
The risk of running out of cash has taken a toll on shares of GM and Ford, sending the stocks down 89% and 79%, respectively, from their 52-week highs. The automakers' bonds have also been hammered. A Ford bond maturing in 2018 is priced at 26 cents on the dollar to yield 30.9% while a GM bond maturing in 2016 is priced at 22 cents on the dollar to yield 43.5%.DJ30 -222.38 NASDAQ -32.01 SP500 -22.04 NASDAQ Adv/Vol/Dec 769/468 mln/1742 NYSE Adv/Vol/Dec 675/305 mln/2307
10:30 am : The major indices fall to session lows, with financials (-4.0%) showing notable weakness.
Goldman Sachs (GS 62.84, -3.89) and JPMorgan Chase (JPM 33.00, -1.47) are among the main laggards.
Weakness is broad-based, as all ten of the sectors are posting a decline.DJ30 -230.90 NASDAQ -31.91 SP500 -22.17 NASDAQ Adv/Vol/Dec 733/349 mln/1689 NYSE Adv/Vol/Dec 615/230 mln/2278
10:00 am : The stock market extends it declines and then recovers a bit. The energy sector (+1.1%) is providing leadership as crude oil prices ($58.28, +2.2%) rebound into the green.
The financial sector (-2.0%) is the main laggard. This morning Citigroup (C 9.20, -0.30) said it will cut 52,000 jobs from its 352,000 workforce. Citi has already cut roughly 36,000 positions in 2008. Meanwhile, there were reports that JPMorgan Chase (JPM 33.83, -0.64) is mulling job cuts.
In earnings news, Lowe's (LOW 14.64, +0.41) topped expectations for the third quarter, but issued downside guidance for the fourth quarter after warning that consumers will likely delay discretionary home improvement and big ticket purchases. Target (TGT 34.34, +1.27) reported in-line earnings for the third quarter, but decided to temporarily suspend its share repurchase program.DJ30 -101.29 NASDAQ -12.22 SP500 -9.25 NASDAQ Adv/Vol/Dec 1046/191 mln/1220 NYSE Adv/Vol/Dec 1113/132 mln/1670
09:40 am : The stock market kicks of the week on a negative note, although the loss is less severe than early indications after it was reported that October industrial production increased by a larger-than-expected amount.
The G-20 summit did not produce any agreements that would alter the near-term picture in any meaningful way, which is keeping economic concerns at the forefront. The G-20 agreed to continue to use fiscal measures to help stimulate domestic demand, help developing economies gain access to credit, among other initiatives. The G-20 also said there will be more international cooperation among regulators and banks will meet stricter standards. For the next 12 months the G-20 countries will not implement any new trade barriers.
Economic conditions remain weak across the globe -- Japan officially fell into a recession for the first time since 2001, joining the Eurozone.DJ30 -110.47 NASDAQ -18.61 SP500 -11.13
09:20 am : S&P futures vs fair value: -15.80. Nasdaq futures vs fair value: -28.80. Futures recover some ground following a larger-than-expected increase in industrial production. Just hitting the wires, October industrial production rose by 1.3% after falling 3.7% in September. Economists expected an increase of 0.2%. Capacity utilization was 76.4% in October, a slight dip from utilization of 76.5% in September. Economists expected utilization of 76.5%. Separately, General Electric (GE) had its 2009 and 2010 earnings estimates cut at Citi. Apple (AAPL) had its first quarter earnings estimates cut at Barclays.
08:54 am : S&P futures vs fair value: -20.80. Nasdaq futures vs fair value: -34.80. Futures are under pressure in premarket trading, with S&P 500 futures approaching session lows. Meanwhile, oil prices are down 1.4%.
08:32 am : S&P futures vs fair value: -17.40. Nasdaq futures vs fair value: -32.80. Stocks futures continue to point to a negative open. The November New York empire manufacturing index, a regional manufacturing survey, declined to -25.4 from its October level of -24.6. Economists expected a reading of -26.0. Citigroup (C) said it will cut 20% of its workforce from peak levels down to roughly 300,000, according the company's presentation slides. Citigroup had roughly 350,000 employees as of Sept. 30. Citi also plans to reduce expenses by 20% from peak levels. In earnings news, Target (TGT) earned $0.49 per share in the third quarter, matching estimates. The retailer is temporarily suspending its buyback program.
08:00 am : S&P futures vs fair value: -17.60. Nasdaq futures vs fair value: -30.50. Futures suggest a lower start to the trading day. Japan officially fell into a recession for the first time since 2001, joining the Eurozone. The Nikkei managed to gain 0.7%. Separately, the G-20 agreed to continue to use fiscal measures to help stimulate domestic demand, help developing economies gain access to credit, among other initiatives. The G-20 also said there will be more international cooperation among regulators and banks will meet stricter standards. For the next 12 months the G-20 countries will not implement any new trade barriers. In corporate news, there is continued talk about possible government aid for General Motors (GM), Ford (F) and Chrysler. Lowe's (LOW) posted better-than-expected third quarter earnings, but gave downside fourth quarter earnings guidance.
06:39 am : S&P futures vs fair value: -18.00. Nasdaq futures vs fair value: -36.80.
06:39 am : Nikkei...8522.58...+60.20...+0.70%. Hang Seng...13529.53...-13.10...-0.10%.
06:39 am : FTSE...4154.16...-74.80...-1.80%. DAX...4595.18...-114.10...-2.40%.
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