AI
Wednesday, November 26, 2008 6:51:39 PM
Market Update 081126
http://biz.yahoo.com/mu/update.html
4:10 pm :
Stocks opened sharply lower following a barrage of economic reports that painted an overall weak picture of the economic environment, but buying interest in tech and automaker stocks helped reverse sentiment, sending stocks to their fourth consecutive gain.
In the end, the S&P 500 surged 3.5%, marking a 19.7% gain from its multi-year low reached on Friday. All ten sectors advanced, with notable strength in consumer discretionary stocks as automakers spiked 31% on speculation that a bailout agreement may be reached next week. The tech sector (+4.2%) also sported solid gains. Defensive-oriented consumer staples (+1.4%), utilities (+0.5%) and healthcare (+1.2%) underperformed on a relative basis
In economic news, October personal spending dropped 1.0% month-over-month, which met estimates, although it will set a negative tone for fourth quarter earnings estimates. Income was up 0.3%, and the real PCE deflator, an inflation measure, dropped 0.6%, reflecting the sharp drop in energy prices.
The housing industry continues to show weakness as new home sales drop to the lowest level since 1991. The high supply of homes at current sales rates indicate a recovery is going to take time. The number of new home sales in October dropped 5.3% month-over-month to a seasonally-adjusted annual rate of 433,000, which was worse than the expected reading of 441,000. New home sales are down 40% from last year and down 69% from the all-time high reached in July 2005. The median sales price declined 1.7% month-over-month to $218,000 and the month's supply of homes for sale at 11.1 is the fifth highest on record.
Despite the dour housing data, homebuilders rose 13.6%. The Fed’s $600 billion plan to support housing lending spurred a drop in the average 30-year fixed mortgage rate to 5.81% from 5.98%, according to BankRate.com, which gave a lift to housing related stocks.
The number of new unemployment claims dropped 14,000 to 529,000 for the week ended Nov. 22. Although this was slightly better than the expected reading of 535,000, it still represents a very weak labor market.
In other economic news, October durable goods orders plunged by a larger-than-expected amount, Chicago manufacturing in November contracted the most since 1982 according to a regional survey, and consumer confidence dropped to a 28 year low in November, according to the University of Michigan.
In corporate news, Tiffany (TIF 20.86, +0.03) reported higher-than-expected third quarter earnings, but cut its full year earnings guidance to below expectations. Deere (DE 35.62, +2.52) reported a 14% drop in earnings per share and said the outlook for the year ahead is highly uncertain.
Oil futures had a volatile session. Prices eventually rose 7.6% to $54.62 per barrel despite a larger-than-expected increase in both crude and gasoline stockpiles.
In overseas news, China cut its benchmark lending rate by 1.08 percentage points to 5.58% in an effort to support its economy. China's CSI 300 rose 0.5%.
As a reminder, U.S. stock and bond markets are closed tomorrow in observance of Thanksgiving. Markets will reopen Friday for a half day.DJ30 +247.14 NASDAQ +67.37 NQ100 +4.4% R2K +5.3% SP400 +5.8% SP500 +30.29 NASDAQ Adv/Vol/Dec 2171/1.96 bln/585 NYSE Adv/Vol/Dec 2679/1.42 bln/464
3:30 pm : Stocks sport solid gains thanks to mostly broad-based strength.
As a reminder, U.S. stock and bond markets are closed Thursday in observance of Thanksgiving. Markets will reopen Friday for a half day.DJ30 207.40 NASDAQ +59.89 SP500 +27.28 NASDAQ Adv/Vol/Dec 2096/1.58 bln/652 NYSE Adv/Vol/Dec 2598/1.00 bln/534
2:55 pm : Stocks climb higher, with all ten sectors now in positive territory. Five sectors are up more than 3%.
The S&P 500 is now up 18.7% from its multi-year low reached last Friday. If the S&P 500 holds its gains, it will mark the first four-day winning streak since May.
EE Times reports that worldwide LCD TV shipments will grow less than expected, but will still rise at relatively healthy clip of 18.9% in 2008 and 20.5% in 2009, according to a revised forecast from iSuppli.DJ30 +166.06 NASDAQ +51.64 SP500 +22.11 NASDAQ Adv/Vol/Dec 2016/1.35 bln/682 NYSE Adv/Vol/Dec 2515/872 mln/595
2:30 pm : Stocks trade near session highs. Telecom recently rose to the top position with a gain of 4.4%.
Crude continues to rally, up 7.3% to $54.42 per barrel. Crude has had a volatile week, it rallied 9.2% on Monday and then fell 6.8% on Tuesday.
The gains in oil are causing airlines (+0.2%) to underperform.DJ30 +106.88 NASDAQ +41.14 SP500 +15.81 NASDAQ Adv/Vol/Dec 1912/1.24 bln/779 NYSE Adv/Vol/Dec 2386/802 mln/724
2:00 pm : The major indices trade with decent-sized gains. Small- and mid-cap stocks are outperforming, with the Russell 2000 Index up 2.1% and the S&P 400 Index up 2.5%.
The dollar is up 0.9% against a basket of world currencies as the 10-year note yield is at an all-time low.DJ30 +34.09 NASDAQ +30.07 SP500 +7.83 NASDAQ Adv/Vol/Dec 1792/1.14 bln/879 NYSE Adv/Vol/Dec 2266/740 mln/828
1:35 pm : Stocks trade slightly below recently reached session highs. Semiconductor stocks are outpeforming with a gain of 4.9%.
Market breadth is postive, with advancers outpacing decliners by 3-to-1 on the NYSE and by 12-to-5 on the Nasdaq. Volume is at the lowest level in six sessons.DJ30 +67.78 NASDAQ +39.79 SP500 +11.54 NASDAQ Adv/Vol/Dec 1877/1.04/779 NYSE Adv/Vol/Dec 2307/675 mln/771
1:00 pm : Stocks have advanced to fresh session highs as consumer discretionary stocks (+3.7%) sport the largest gains. Strength in the sector is broad based, yet homebuilders (+11.2%) and auto manufacturers (+40.7%) are surging. The industries have received a vote of confidence as investors digest recent government plans to help support consumer lending facilities, which are intended to help buyers finance large purchases.
Meanwhile, the more defensive-oriented sectors, like consumer staples (+0.0%), health care (-0.8%), and utilities (-0.7%), are all lagging.DJ30 +84.42 NASDAQ +40.54 SP500 +11.53 NASDAQ Adv/Vol/Dec 1877/941 mln/763 NYSE Adv/Vol/Dec 2312/616 mln/755
12:25 pm : Stocks trade modestly below session highs. Seven of the ten sectors post a gain.
General Motors (GM 4.69, +1.13) and Ford (F 2.01, +0.35) are rallying. The AP reports that the automakers, with Chrysler, are expected to go before Congress to lay out a plan how they would use a potential $25 billion loan from the government. In addition, Deutsche Bank said a bailout of the auto industry in increasingly likely, according to the report.DJ30 +39.26 NASDAQ +33.97 SP500 +5.91 NASDAQ Adv/Vol/Dec 1838/812 mln/772 NYSE Adv/Vol/Dec 2193/533 mln/842
12:00 pm : Stocks recover from early losses to post solid gains at midday as market participants digest a barrage of economic reports that paint an overall weak picture of the economic environment.
At midday, the S&P 500 is up 0.7% after recovering from an early loss of 1.9%. Seven of the ten sectors are posting a gain, led by tech (+2.4%). The strength in tech and small-cap stocks (+2.4%) is helping the Nasdaq outperform with a gain of 2.5%.
In economic news, October personal spending dropped 1.0% month-over-month, which met estimates, although it will set a negative tone for fourth quarter earnings estimates. Income was up 0.3%, and the real PCE deflator, an inflation measure, dropped 0.6%, reflecting the sharp drop in energy prices.
The housing industry continues to show weakness as new home sales drop to the lowest level since 1991. The high supply of homes at current sales rates indicate a recovery is going to take time. The number of new home sales in October dropped 5.3% month-over-month to a seasonally-adjusted annual rate of 433,000, which was worse than the expected reading of 441,000. New home sales are down 40% from last year and down 69% from the all-time high reached in July 2005. The median sales price declined 1.7% month-over-month to $218,000 and the month's supply of homes for sale at 11.1 is the fifth highest on record.
The number of new unemployment claims dropped 14,000 to 529,000 for the week ended Nov. 22. Although this was slightly better than the expected reading of 535,000, it still represents a very weak labor market.
In other economic news, October durable goods orders plunged by a larger-than-expected amount, Chicago manufacturing in November contracted the most since 1982 according to a regional survey, and consumer confidence dropped to a 28 year low in November, according to the University of Michigan.
In corporate news, Tiffany (TIF 20.95, +0.12) reported higher-than-expected third quarter earnings, but cut its full year earnings guidance to below expectations. Deere (DE 32.11, -0.99) reported a 14% drop in earnings per share and said the outlook for the year ahead is highly uncertain.
Oil futures have had a volatile session. Prices are currently up 3.5% to $52.55 per barrel despite a larger-than-expected increase in both crude and gasoline stockpiles.
In overseas news, China cut its benchmark lending rate by 1.08 percentage points to 5.58% in an effort to support its economy. China's CSI 300 rose 0.5%.DJ30 +43.48 NASDAQ +35.87 SP500 +6.03 NASDAQ Adv/Vol/Dec 1851/763 mln/730 NYSE Adv/Vol/Dec 2195/465 mln/826
11:30 am : Stocks extend their gains, led by large-cap tech (+2.4%) and telecom (+2.4%).
Retailers (+3.1%) are also performing well. Department store operators Macy's (M 6.96, +0.50) and Nordstrom (JWN 10.81, +0.83) are showing notable strength.
Oil prices spike to session highs, up 5.5% to $53.57 per barrel, despite the bearish inventory data.DJ30 +45.16 NASDAQ +29.86 SP500 +5.10 NASDAQ Adv/Vol/Dec 1728/598 mln/791 NYSE Adv/Vol/Dec 1999/398 mln/965
11:00 am : The major indices climb to session highs. The S&P 500 is currently posting a slight gain. Seven of the ten sectors post a loss, with weakness seen in utilities (-1.7%). However, strength in tech (+1.7%) and consumer discretionary (+1.5%) is offsetting the declines in other areas.
President-elect Obama is currently answering questions during a press conference. He confirmed that former Fed Chairman Paul Volcker will head his new economic advisory board.
Oil prices are up 0.8%, retreating from a gain of more than 3% following the larger-than-expected increase in oil inventory levels.
Shares of BCE (BCE 19.67, -11.61) have plunged 37% on concern the Canadian telecom company's $42 billion private takeover scheduled to close on Dec. 11 will not go through. Independent valuation firm KPMG notified BCE that it won't be able to deliver a solvency opinion due to current market conditions, which was a required condition for the takeover, The Wall Street Journal reports.DJ30 +3.18 NASDAQ +22.63 SP500 +0.12 NASDAQ Adv/Vol/Dec 1595/480 mln/881 NYSE Adv/Vol/Dec 1756/323 mln/1170
10:35 am : Just reported by the Department of Energy, crude oil inventories spiked 7.3 million barrels for the week ended Nov. 22, compared to the expected increase of 1.0 million barrels. Gasoline inventories rose 1.8 million barrels. Crude oil prices were trading up 3.6% to $52.58 per barrel just prior to the release.
Stocks recover some ground and then dip a bit as the oil inventory data are released, since the large build indicates weak demand. The Nasdaq is outperforming with a gain of 1.0%, benefiting from strength in tech and small-cap stocks.
After underperforming yesterday, tech (+1.2%) is outperforming this session. Microsoft (MSFT 20.34, +0.35), Hewlett-Packard (HPQ 34.09, +0.49) and Apple (AAPL 93.77, +2.97) are providing leadership.
Mortgage rates improved following the government's announcement yesterday of up to $600 billion in purchases of government-sponsored enterprises direct obligation and mortgage-backed securities. According to BankRate.com, the average 30-year fixed mortgage rate dropped to 5.81% yesterday from 5.98%. The average rate was as high as 6.46% just one month ago.
The 10-year note is rallying, with yields falling to 2.984%, marking the lowest level since records began in 1962.DJ30 -59.50 NASDAQ +13.99 SP500 -5.95 NASDAQ Adv/Vol/Dec 1458/354 mln/935 NYSE Adv/Vol/Dec 1595/244 mln/1281
10:00 am : The stock market recovers some ground and then goes on the defensive as a new home sales report is released.
Just hitting the wires, the number of new home sales in October slipped 5.3% month-over-month to a seasonally adjusted annual rate of 433,000. This was worse than the expected reading of 444,000 and the lowest amount of sales since 1991.
The November University of Michigan Consumer Confidence reading was revised down to 55.3 from 57.9. This was below the consensus estimate of 57.5.
Reported at 9:45 AM ET, Chicago manufacturing in November contracted the most since since 1982, according to a regional survey. Specifically, November Chicago PMI fell 4.0 to 33.8, which was worse than the expected reading of 37.0. A reading below 50 represents contraction in manufacturing activity in the Chicago region. Chicago manufacturing was holding up well, with an expansion indicated in September, but like other areas of the economy, a steep drop in activity was seen in October.DJ30 -89.37 NASDAQ +0.56 SP500 -9.44 NASDAQ Adv/Vol/Dec 1038/163 mln/1207 NYSE Adv/Vol/Dec 1031/122 mln/1715
09:35 am : The stock market gets off to a negative start following three straight positive sessions. Dour economic data has done little to support buying.
Durable goods orders plunged 6.2% in October, more than twice the expected 2.5% drop. Excluding transportation, orders fell 4.4%.
Personal spending fell 1.0% in October. Although this met estimates, it sets a very negative tone for fourth quarter GDP calculations. Income rose 0.3%.
The number of new jobless claims for the week ended Nov. 22 declined 14,000 to 529,000, which was slightly better than the consensus estimate of 535,000. The elevated state of claims reflect a weak labor market.
In earnings news, both Tiffany & Co (TIF 19.22, -1.61) and Deere (DE 30.86, -2.24) gave a disappointing earnings outlook.
In overseas developments, China cut its benchmark rate 1.08 percentage points to 5.58% and Europe is reportedly considering a 200 billion euros fiscal stimulus package. In Asian trading, China's CSI 300 rose 0.5%, Japan's Nikkei fell 1.3% and Hong Kong's Hang Seng rose 3.8%. In Europe, France's CAC is down 2.9%, London's FTSE is down 2.2% and Germany's DAX is down 2.4%.DJ30 -144.40 NASDAQ -13.63 SP500 -13.71
09:14 am : S&P futures vs fair value: -17.90. Nasdaq futures vs fair value: -9.80.
09:00 am : S&P futures vs fair value: -18.90. Nasdaq futures vs fair value: -13.00. Futures recover from session lows, but still suggest a lower start to the trading day. Oil prices are rebounding from yesterday's losses with a gain of 3.1% to $52.32 per barrel. Toyota Motor (TM) had its credit rating cut to AA from AAA with a negative outlook at Fitch ratings. Fitch believes that the negative developments in the auto industry means Toyota can no longer support an AAA rating, according to Reuters. Toyota had a AAA rating since 2005 at Fitch. Toyota still has a AAA rating at Standard & Poor's, as it has since 1985.
08:35 am : S&P futures vs fair value: -22.80. Nasdaq futures vs fair value: -16.80. Futures extend their decline as three economic reports hit the wires, including a larger-than-expected drop in durable goods orders. There were 529,000 new unemployment claims for the week ended Nov. 22, which was slightly better than the expected reading of 535,000. October personal income rose 0.3% month-over-month (consensus +0.1%) and personal spending dropped 1.0% (consensus -1.0%). The PCE Deflator, an inflation measure, dropped 0.6%. Finally, October durable goods orders tumbled 6.2% (consensus -3.0%). Excluding transportation, durable goods orders fell 4.4% (consensus -1.6%).
08:00 am : S&P futures vs fair value: -21.40. Nasdaq futures vs fair value: -11.00. Futures point to a lower start ahead of several economic reports. Durable goods orders, personal income and spending and the weekly initial jobless claims are due at 8:30 AM ET. Followed by the Chicago purchasing manager index (9:45 AM ET), University of Michigan consumer sentiment (10:00 AM ET) and new home sales (10:00 AM ET). President-elect Obama is scheduled to speak at another news conference today at 10:45 AM ET. In earnings news, Tiffany & Co (TIF) posted better-than-expected third quarter earnings on lower-than-expected revenue. The company issued downside earnings and revenue guidance for fiscal year 2009. Deere (DE) reported third quarter revenue that fell short of estimates. In overseas news, China cut its benchmark lending rate by 1.08 percentage points to 5.58%, according to reports. China's CSI 300 Index rose 0.5%.
06:38 am : S&P futures vs fair value: -14.50. Nasdaq futures vs fair value: -17.80.
06:38 am : Nikkei...8213.22...-110.70...-1.30%. Hang Seng...13369.45...+490.90...+3.80%.
06:38 am : FTSE...4093.25...-78.00...-1.90%. DAX...4494.59...-64.80...-1.40%.
http://biz.yahoo.com/mu/update.html
4:10 pm :
Stocks opened sharply lower following a barrage of economic reports that painted an overall weak picture of the economic environment, but buying interest in tech and automaker stocks helped reverse sentiment, sending stocks to their fourth consecutive gain.
In the end, the S&P 500 surged 3.5%, marking a 19.7% gain from its multi-year low reached on Friday. All ten sectors advanced, with notable strength in consumer discretionary stocks as automakers spiked 31% on speculation that a bailout agreement may be reached next week. The tech sector (+4.2%) also sported solid gains. Defensive-oriented consumer staples (+1.4%), utilities (+0.5%) and healthcare (+1.2%) underperformed on a relative basis
In economic news, October personal spending dropped 1.0% month-over-month, which met estimates, although it will set a negative tone for fourth quarter earnings estimates. Income was up 0.3%, and the real PCE deflator, an inflation measure, dropped 0.6%, reflecting the sharp drop in energy prices.
The housing industry continues to show weakness as new home sales drop to the lowest level since 1991. The high supply of homes at current sales rates indicate a recovery is going to take time. The number of new home sales in October dropped 5.3% month-over-month to a seasonally-adjusted annual rate of 433,000, which was worse than the expected reading of 441,000. New home sales are down 40% from last year and down 69% from the all-time high reached in July 2005. The median sales price declined 1.7% month-over-month to $218,000 and the month's supply of homes for sale at 11.1 is the fifth highest on record.
Despite the dour housing data, homebuilders rose 13.6%. The Fed’s $600 billion plan to support housing lending spurred a drop in the average 30-year fixed mortgage rate to 5.81% from 5.98%, according to BankRate.com, which gave a lift to housing related stocks.
The number of new unemployment claims dropped 14,000 to 529,000 for the week ended Nov. 22. Although this was slightly better than the expected reading of 535,000, it still represents a very weak labor market.
In other economic news, October durable goods orders plunged by a larger-than-expected amount, Chicago manufacturing in November contracted the most since 1982 according to a regional survey, and consumer confidence dropped to a 28 year low in November, according to the University of Michigan.
In corporate news, Tiffany (TIF 20.86, +0.03) reported higher-than-expected third quarter earnings, but cut its full year earnings guidance to below expectations. Deere (DE 35.62, +2.52) reported a 14% drop in earnings per share and said the outlook for the year ahead is highly uncertain.
Oil futures had a volatile session. Prices eventually rose 7.6% to $54.62 per barrel despite a larger-than-expected increase in both crude and gasoline stockpiles.
In overseas news, China cut its benchmark lending rate by 1.08 percentage points to 5.58% in an effort to support its economy. China's CSI 300 rose 0.5%.
As a reminder, U.S. stock and bond markets are closed tomorrow in observance of Thanksgiving. Markets will reopen Friday for a half day.DJ30 +247.14 NASDAQ +67.37 NQ100 +4.4% R2K +5.3% SP400 +5.8% SP500 +30.29 NASDAQ Adv/Vol/Dec 2171/1.96 bln/585 NYSE Adv/Vol/Dec 2679/1.42 bln/464
3:30 pm : Stocks sport solid gains thanks to mostly broad-based strength.
As a reminder, U.S. stock and bond markets are closed Thursday in observance of Thanksgiving. Markets will reopen Friday for a half day.DJ30 207.40 NASDAQ +59.89 SP500 +27.28 NASDAQ Adv/Vol/Dec 2096/1.58 bln/652 NYSE Adv/Vol/Dec 2598/1.00 bln/534
2:55 pm : Stocks climb higher, with all ten sectors now in positive territory. Five sectors are up more than 3%.
The S&P 500 is now up 18.7% from its multi-year low reached last Friday. If the S&P 500 holds its gains, it will mark the first four-day winning streak since May.
EE Times reports that worldwide LCD TV shipments will grow less than expected, but will still rise at relatively healthy clip of 18.9% in 2008 and 20.5% in 2009, according to a revised forecast from iSuppli.DJ30 +166.06 NASDAQ +51.64 SP500 +22.11 NASDAQ Adv/Vol/Dec 2016/1.35 bln/682 NYSE Adv/Vol/Dec 2515/872 mln/595
2:30 pm : Stocks trade near session highs. Telecom recently rose to the top position with a gain of 4.4%.
Crude continues to rally, up 7.3% to $54.42 per barrel. Crude has had a volatile week, it rallied 9.2% on Monday and then fell 6.8% on Tuesday.
The gains in oil are causing airlines (+0.2%) to underperform.DJ30 +106.88 NASDAQ +41.14 SP500 +15.81 NASDAQ Adv/Vol/Dec 1912/1.24 bln/779 NYSE Adv/Vol/Dec 2386/802 mln/724
2:00 pm : The major indices trade with decent-sized gains. Small- and mid-cap stocks are outperforming, with the Russell 2000 Index up 2.1% and the S&P 400 Index up 2.5%.
The dollar is up 0.9% against a basket of world currencies as the 10-year note yield is at an all-time low.DJ30 +34.09 NASDAQ +30.07 SP500 +7.83 NASDAQ Adv/Vol/Dec 1792/1.14 bln/879 NYSE Adv/Vol/Dec 2266/740 mln/828
1:35 pm : Stocks trade slightly below recently reached session highs. Semiconductor stocks are outpeforming with a gain of 4.9%.
Market breadth is postive, with advancers outpacing decliners by 3-to-1 on the NYSE and by 12-to-5 on the Nasdaq. Volume is at the lowest level in six sessons.DJ30 +67.78 NASDAQ +39.79 SP500 +11.54 NASDAQ Adv/Vol/Dec 1877/1.04/779 NYSE Adv/Vol/Dec 2307/675 mln/771
1:00 pm : Stocks have advanced to fresh session highs as consumer discretionary stocks (+3.7%) sport the largest gains. Strength in the sector is broad based, yet homebuilders (+11.2%) and auto manufacturers (+40.7%) are surging. The industries have received a vote of confidence as investors digest recent government plans to help support consumer lending facilities, which are intended to help buyers finance large purchases.
Meanwhile, the more defensive-oriented sectors, like consumer staples (+0.0%), health care (-0.8%), and utilities (-0.7%), are all lagging.DJ30 +84.42 NASDAQ +40.54 SP500 +11.53 NASDAQ Adv/Vol/Dec 1877/941 mln/763 NYSE Adv/Vol/Dec 2312/616 mln/755
12:25 pm : Stocks trade modestly below session highs. Seven of the ten sectors post a gain.
General Motors (GM 4.69, +1.13) and Ford (F 2.01, +0.35) are rallying. The AP reports that the automakers, with Chrysler, are expected to go before Congress to lay out a plan how they would use a potential $25 billion loan from the government. In addition, Deutsche Bank said a bailout of the auto industry in increasingly likely, according to the report.DJ30 +39.26 NASDAQ +33.97 SP500 +5.91 NASDAQ Adv/Vol/Dec 1838/812 mln/772 NYSE Adv/Vol/Dec 2193/533 mln/842
12:00 pm : Stocks recover from early losses to post solid gains at midday as market participants digest a barrage of economic reports that paint an overall weak picture of the economic environment.
At midday, the S&P 500 is up 0.7% after recovering from an early loss of 1.9%. Seven of the ten sectors are posting a gain, led by tech (+2.4%). The strength in tech and small-cap stocks (+2.4%) is helping the Nasdaq outperform with a gain of 2.5%.
In economic news, October personal spending dropped 1.0% month-over-month, which met estimates, although it will set a negative tone for fourth quarter earnings estimates. Income was up 0.3%, and the real PCE deflator, an inflation measure, dropped 0.6%, reflecting the sharp drop in energy prices.
The housing industry continues to show weakness as new home sales drop to the lowest level since 1991. The high supply of homes at current sales rates indicate a recovery is going to take time. The number of new home sales in October dropped 5.3% month-over-month to a seasonally-adjusted annual rate of 433,000, which was worse than the expected reading of 441,000. New home sales are down 40% from last year and down 69% from the all-time high reached in July 2005. The median sales price declined 1.7% month-over-month to $218,000 and the month's supply of homes for sale at 11.1 is the fifth highest on record.
The number of new unemployment claims dropped 14,000 to 529,000 for the week ended Nov. 22. Although this was slightly better than the expected reading of 535,000, it still represents a very weak labor market.
In other economic news, October durable goods orders plunged by a larger-than-expected amount, Chicago manufacturing in November contracted the most since 1982 according to a regional survey, and consumer confidence dropped to a 28 year low in November, according to the University of Michigan.
In corporate news, Tiffany (TIF 20.95, +0.12) reported higher-than-expected third quarter earnings, but cut its full year earnings guidance to below expectations. Deere (DE 32.11, -0.99) reported a 14% drop in earnings per share and said the outlook for the year ahead is highly uncertain.
Oil futures have had a volatile session. Prices are currently up 3.5% to $52.55 per barrel despite a larger-than-expected increase in both crude and gasoline stockpiles.
In overseas news, China cut its benchmark lending rate by 1.08 percentage points to 5.58% in an effort to support its economy. China's CSI 300 rose 0.5%.DJ30 +43.48 NASDAQ +35.87 SP500 +6.03 NASDAQ Adv/Vol/Dec 1851/763 mln/730 NYSE Adv/Vol/Dec 2195/465 mln/826
11:30 am : Stocks extend their gains, led by large-cap tech (+2.4%) and telecom (+2.4%).
Retailers (+3.1%) are also performing well. Department store operators Macy's (M 6.96, +0.50) and Nordstrom (JWN 10.81, +0.83) are showing notable strength.
Oil prices spike to session highs, up 5.5% to $53.57 per barrel, despite the bearish inventory data.DJ30 +45.16 NASDAQ +29.86 SP500 +5.10 NASDAQ Adv/Vol/Dec 1728/598 mln/791 NYSE Adv/Vol/Dec 1999/398 mln/965
11:00 am : The major indices climb to session highs. The S&P 500 is currently posting a slight gain. Seven of the ten sectors post a loss, with weakness seen in utilities (-1.7%). However, strength in tech (+1.7%) and consumer discretionary (+1.5%) is offsetting the declines in other areas.
President-elect Obama is currently answering questions during a press conference. He confirmed that former Fed Chairman Paul Volcker will head his new economic advisory board.
Oil prices are up 0.8%, retreating from a gain of more than 3% following the larger-than-expected increase in oil inventory levels.
Shares of BCE (BCE 19.67, -11.61) have plunged 37% on concern the Canadian telecom company's $42 billion private takeover scheduled to close on Dec. 11 will not go through. Independent valuation firm KPMG notified BCE that it won't be able to deliver a solvency opinion due to current market conditions, which was a required condition for the takeover, The Wall Street Journal reports.DJ30 +3.18 NASDAQ +22.63 SP500 +0.12 NASDAQ Adv/Vol/Dec 1595/480 mln/881 NYSE Adv/Vol/Dec 1756/323 mln/1170
10:35 am : Just reported by the Department of Energy, crude oil inventories spiked 7.3 million barrels for the week ended Nov. 22, compared to the expected increase of 1.0 million barrels. Gasoline inventories rose 1.8 million barrels. Crude oil prices were trading up 3.6% to $52.58 per barrel just prior to the release.
Stocks recover some ground and then dip a bit as the oil inventory data are released, since the large build indicates weak demand. The Nasdaq is outperforming with a gain of 1.0%, benefiting from strength in tech and small-cap stocks.
After underperforming yesterday, tech (+1.2%) is outperforming this session. Microsoft (MSFT 20.34, +0.35), Hewlett-Packard (HPQ 34.09, +0.49) and Apple (AAPL 93.77, +2.97) are providing leadership.
Mortgage rates improved following the government's announcement yesterday of up to $600 billion in purchases of government-sponsored enterprises direct obligation and mortgage-backed securities. According to BankRate.com, the average 30-year fixed mortgage rate dropped to 5.81% yesterday from 5.98%. The average rate was as high as 6.46% just one month ago.
The 10-year note is rallying, with yields falling to 2.984%, marking the lowest level since records began in 1962.DJ30 -59.50 NASDAQ +13.99 SP500 -5.95 NASDAQ Adv/Vol/Dec 1458/354 mln/935 NYSE Adv/Vol/Dec 1595/244 mln/1281
10:00 am : The stock market recovers some ground and then goes on the defensive as a new home sales report is released.
Just hitting the wires, the number of new home sales in October slipped 5.3% month-over-month to a seasonally adjusted annual rate of 433,000. This was worse than the expected reading of 444,000 and the lowest amount of sales since 1991.
The November University of Michigan Consumer Confidence reading was revised down to 55.3 from 57.9. This was below the consensus estimate of 57.5.
Reported at 9:45 AM ET, Chicago manufacturing in November contracted the most since since 1982, according to a regional survey. Specifically, November Chicago PMI fell 4.0 to 33.8, which was worse than the expected reading of 37.0. A reading below 50 represents contraction in manufacturing activity in the Chicago region. Chicago manufacturing was holding up well, with an expansion indicated in September, but like other areas of the economy, a steep drop in activity was seen in October.DJ30 -89.37 NASDAQ +0.56 SP500 -9.44 NASDAQ Adv/Vol/Dec 1038/163 mln/1207 NYSE Adv/Vol/Dec 1031/122 mln/1715
09:35 am : The stock market gets off to a negative start following three straight positive sessions. Dour economic data has done little to support buying.
Durable goods orders plunged 6.2% in October, more than twice the expected 2.5% drop. Excluding transportation, orders fell 4.4%.
Personal spending fell 1.0% in October. Although this met estimates, it sets a very negative tone for fourth quarter GDP calculations. Income rose 0.3%.
The number of new jobless claims for the week ended Nov. 22 declined 14,000 to 529,000, which was slightly better than the consensus estimate of 535,000. The elevated state of claims reflect a weak labor market.
In earnings news, both Tiffany & Co (TIF 19.22, -1.61) and Deere (DE 30.86, -2.24) gave a disappointing earnings outlook.
In overseas developments, China cut its benchmark rate 1.08 percentage points to 5.58% and Europe is reportedly considering a 200 billion euros fiscal stimulus package. In Asian trading, China's CSI 300 rose 0.5%, Japan's Nikkei fell 1.3% and Hong Kong's Hang Seng rose 3.8%. In Europe, France's CAC is down 2.9%, London's FTSE is down 2.2% and Germany's DAX is down 2.4%.DJ30 -144.40 NASDAQ -13.63 SP500 -13.71
09:14 am : S&P futures vs fair value: -17.90. Nasdaq futures vs fair value: -9.80.
09:00 am : S&P futures vs fair value: -18.90. Nasdaq futures vs fair value: -13.00. Futures recover from session lows, but still suggest a lower start to the trading day. Oil prices are rebounding from yesterday's losses with a gain of 3.1% to $52.32 per barrel. Toyota Motor (TM) had its credit rating cut to AA from AAA with a negative outlook at Fitch ratings. Fitch believes that the negative developments in the auto industry means Toyota can no longer support an AAA rating, according to Reuters. Toyota had a AAA rating since 2005 at Fitch. Toyota still has a AAA rating at Standard & Poor's, as it has since 1985.
08:35 am : S&P futures vs fair value: -22.80. Nasdaq futures vs fair value: -16.80. Futures extend their decline as three economic reports hit the wires, including a larger-than-expected drop in durable goods orders. There were 529,000 new unemployment claims for the week ended Nov. 22, which was slightly better than the expected reading of 535,000. October personal income rose 0.3% month-over-month (consensus +0.1%) and personal spending dropped 1.0% (consensus -1.0%). The PCE Deflator, an inflation measure, dropped 0.6%. Finally, October durable goods orders tumbled 6.2% (consensus -3.0%). Excluding transportation, durable goods orders fell 4.4% (consensus -1.6%).
08:00 am : S&P futures vs fair value: -21.40. Nasdaq futures vs fair value: -11.00. Futures point to a lower start ahead of several economic reports. Durable goods orders, personal income and spending and the weekly initial jobless claims are due at 8:30 AM ET. Followed by the Chicago purchasing manager index (9:45 AM ET), University of Michigan consumer sentiment (10:00 AM ET) and new home sales (10:00 AM ET). President-elect Obama is scheduled to speak at another news conference today at 10:45 AM ET. In earnings news, Tiffany & Co (TIF) posted better-than-expected third quarter earnings on lower-than-expected revenue. The company issued downside earnings and revenue guidance for fiscal year 2009. Deere (DE) reported third quarter revenue that fell short of estimates. In overseas news, China cut its benchmark lending rate by 1.08 percentage points to 5.58%, according to reports. China's CSI 300 Index rose 0.5%.
06:38 am : S&P futures vs fair value: -14.50. Nasdaq futures vs fair value: -17.80.
06:38 am : Nikkei...8213.22...-110.70...-1.30%. Hang Seng...13369.45...+490.90...+3.80%.
06:38 am : FTSE...4093.25...-78.00...-1.90%. DAX...4494.59...-64.80...-1.40%.
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