AI
Tuesday, December 02, 2008 6:18:50 PM
Market Update 081202
http://biz.yahoo.com/mu/update.html
4:25 pm : The stock market regained about 40% of yesterday's massive 8.9% sell-off. Stocks were in positive ground after General Electric (GE 17.61, +2.11) gave a better-than-feared business update and then surged to session highs in the final minutes of trade after General Motors (GM 4.85, +0.26) outlined its plan for government aid.
The S&P 500 rose 4.0% in a volatile session, with all ten sectors posting a gain. Volume was slightly above average and on pace with Monday's level.
General Motors and Ford outlined to Congress how the automakers would use $25 billion in loans from the government. Ford asked for a $9 billion loan, saying it will focus on more fuel efficient vehicles and downsize its dealer-base, among other initiatives, to reach at least breakeven by 2011. GM requested $12 billion in government term loans and a $6 billion line of credit in case the downturn persists. GM plans to start repaying the loans as early as 2011.
November U.S. auto sales results were dismal. On year-over-year basis, sales plunged 41% at GM, 31% at Ford, 47% at Chrysler and 34% at Toyota (TM 62.00, +3.44).
General Electric was the best-performing stock. The conglomerate said it expects fourth quarter earnings on the low end of its previous guidance, but this was better than many analysts had expected. GE also said it will keep its dividend unchanged in 2009. At Monday's closing price, GE's dividend represented a hefty yield of 8%.
The financial sector (+7.9%) outperformed following its 17% plunge in the previous session. Goldman Sachs (GS 65.10, -0.66), however, was a notable underperformer. The Wall Street Journal reported that Goldman is likely to report a net loss of as much as $2 billion in its later quarter, which would be five times worse than the consensus estimate.
In earnings news, Sears Holdings (SHLD 36.03, +4.19) and Beazer Homes (BZH 1.37, -0.13) posted larger-than-expected third quarter losses. Staples (SPLS 16.32, +1.20) reported a slightly higher-than-expected profit.
Separately, The Federal Reserve said due to the strains in the financial markets it will extend three liquidity facilities through April 30, 2009. The facilities aim to increase liquidity for asset backed commercial paper and financial firms.
Despite the gains in stocks, Treasuries advanced as investors speculated that the Federal Reserve will buy longer-term Treasuries. The 10-year note rose 15 ticks to send its yield down to 2.67%.
Oil prices had a volatile session, eventually falling 3.8% to $47.42, which is the lowest level since May 2005.DJ30 +270.00 NASDAQ +51.73 NQ100 +3.6% R2K +5.9% SP400 +4.8% SP500 +32.60 NASDAQ Adv/Vol/Dec 1972/2.11 bln/776 NYSE Adv/Vol/Dec 2398/1.62 bln/749
3:30 pm : After some choppy action stocks reclaim more ground. General Electric (GE 17.47, +1.97) is trading near recently reached session highs.
Chrysler reported that November U.S. sales fell 47% year-over-year. Year-to-date, sales are down 28%.
General Motors (GM 4.57, -0.02) said it will provide at 5:30 PM ET an overview of its plan that was sent to Congress.
(Note: Nasdaq data appears to be frozen)DJ30 +207.65 NASDAQ +18.12 SP500 +24.13 NASDAQ Adv/Vol/Dec 1795/1.58 bln/920 NYSE Adv/Vol/Dec 2290/1.05 bln/838
3:05 pm : Stocks regain some ground, but are still well off session highs.
Tech stocks (+1.7%) as a whole are performing on par with the market, despite the underperformance of semiconductors (-0.6%). The semiconductor equipment market is expected to decline 28% in 2008 and 21% in 2009, according to the year-end edition of the SEMI Capital Equipment Forecast.
Prices of DRAM, a type of memory, have dropped to new lows, with 1 gigabyte DDR2 at only $0.60, according to Digitimes.DJ30 +101.31 NASDAQ +27.24 SP500 +14.80 NASDAQ Adv/Vol/Dec 1769/1.44 bln/939 NYSE Adv/Vol/Dec 2226/952 mln/888
2:30 pm : Stocks give up the majority of their gains, with the Dow briefly trading in the red. The weak General Motors (GM 4.42, -0.17) sales data and a report that the automaker may need to file for Chapter 11 bankruptcy protection before Christmas is weighing on sentiment. The S&P 500 is up only 0.7% after trading with a gain of as much as 3.9%.
Consumer staples (-1.0%) and utilities (-0.5%) are now posting a loss.
Meanwhile, crude prices fall to session lows, now down 4.6% to $47.05 per barrel.DJ30 +39.58 NASDAQ +12.08 SP500 +5.27 NASDAQ Adv/Vol/Dec 1566/1.30 bln/1112 NYSE Adv/Vol/Dec 1909/867 mln/1186
2:00 pm : The stock market continues to give up gains.
General Motors (GM 4.57, -0.02) reported November U.S. sales plunged 41.3% year-over-year, which was worse than the expected decline of 33%. The news sends shares of GM in the red for the first time this session.
The Wall Street Journal reports that the United Auto Workers Union said GM may need funding by the end of the year to avoid bankruptcy.DJ30 +140.50 NASDAQ +30.04 SP500 +18.01 NASDAQ Adv/Vol/Dec 1756/1.14 bln/906 NYSE Adv/Vol/Dec 2228/767 mln/861
1:30 pm : Stocks trade with solid gains, but have retreated from their best levels. Market breadth is positive. Advancers outpace decliners by 7-to-2 on the NYSE and by 5-to-2 on the Nasdaq.
Honda (HMC 20.77, +0.83) U.S. auto sales fell 31.6% in November, according to reports.DJ30 +195.37 NASDAQ +38.88 SP500 +23.73 NASDAQ Adv/Vol/Dec 1890/1.04 bln/769 NYSE Adv/Vol/Dec 2399/691 mln/673
1:05 pm : The stock market has eased off its session high, where it traded with a 3.9% gain, but continues to show strength. All ten of the economic sectors are trading in the green.
The consumer staples sector is lagging the other sectors. It is up just 0.9% this session. However, the sector also held up better than the others in the prior session's sell-off. Consumer staples stocks slipped little more than 5% in the prior session.
Reports indicate that former AOL CEO Jonathan Miller is trying to raise funds to purchase Yahoo! (YHOO 11.88, +1.44). The Wall Street Journal states its sources indicate a deal could be done between $20 and $22 per YHOO share. DJ30 +234.96 NASDAQ +47.26 SP500 +28.19 NASDAQ Adv/Vol/Dec 1883/958 mln/757 NYSE Adv/Vol/Dec 2382/636 mln/676
12:25 pm : Stocks continue to rally, led by financials (+6.8%) and telecom (+5.1%).
Ford (F 2.80, +0.25) reported that U.S. November sales dropped 30.6% year-over-year, which was slightly better than the expected decline of 32%. Year-to-date, sales have declined 19.7%.
Ford plans to produce 430,000 vehicles in North America during the first quarter 2009, down 38% from the 692,000 produced in the first quarter of 2008.
Weakness is not limited to just domestic automakers. Toyota Motor (TM 64.42, +3.86) reported a North American sales drop of 34%, according to the AP.DJ30 +262.76 NASDAQ +50.62 SP500 +31.03 NASDAQ Adv/Vol/Dec 1883/828 mln/726 NYSE Adv/Vol/Dec 2407/570 mln/633
11:55 am : Stocks post a solid 3.1% gain at midday, although they still have a long way to go to make up yesterday's 8.9% plunge.
Buying interest is mostly broad based, with all ten sectors in positive territory.
General Electric (GE 17.00, +1.50) is providing leadership. The conglomerate said it expects fourth quarter earnings on the low end of its previous guidance, but this was better than many analysts had feared. GE also said it will keep its dividend unchanged in 2009. At Monday's closing price, GE's dividend represented a hefty yield of 8%.
General Motors (GM 4.89, +0.30) and Ford (F 2.82, +0.27) are sporting gains as the automakers outline plans how they would use $25 billion in loans from the government. Ford asked for a $9 billion loan, saying it will focus on more fuel efficient vehicles and downsize its dealer-base, among other initiatives, to reach at least breakeven by 2011. Both automakers are scheduled later today to report November sales results.
In earnings news, Sears Holdings (SHLD 37.20, +5.36) and Beazer Homes (BZH 1.28, -0.22) posted larger-than-expected third quarter losses. Staples (SPLS 16.42, +1.30) posted a slightly higher-than-expected profit.
The Federal Reserve said due to the strains in the financial markets it will extend three liquidity facilities through April 30, 2009. The facilities aim to increase liquidity for asset backed commercial paper and financial firms.
In commodity trading, oil prices fell to $47.36 per barrel, marking a multi-year low. At midday, prices have recovered a bit to a 1.3% loss at $48.67 per barrel.DJ30 +227.63 NASDAQ +42.43 SP500 +25.99 NASDAQ Adv/Vol/Dec 1839/721 mln/743 NYSE Adv/Vol/Dec 2338/497 mln/662
11:30 am : Stocks trade at or near session highs. Buying interest is broad based with all ten sectors posting a gain, although defensive oriented stocks are underperforming on a relative basis.
Oil prices come under selling pressure, now down 3.0% to $47.75 per barrel, reversing an earlier gain of 2.0%. In early-morning electronic trade, crude prices fell to $47.36 per barrel, marking a fresh multi-year low.DJ30 +199.59 NASDAQ +38.38 SP500 +23.48 NASDAQ Adv/Vol/Dec 1748/624 mln/789 NYSE Adv/Vol/Dec 2245/430 mln/735
11:00 am : The major indices extend their gains and then run into some modest resistance at session highs.
General Electric (GE 17.01, +1.51) is one of the best-performing stocks this session as investors embrace the conglomerate's business update.
Shares of Dell (DELL 10.37, +0.32) received a boost after Dow Jones quoted CEO Michael Dell as saying Black Friday sales "look pretty good."
In commodity trading, crude oil is flat after giving up an early gain of 2.0%. The dollar is down 0.3%DJ30 +177.69 NASDAQ +34.94 SP500 +20.44 NASDAQ Adv/Vol/Dec 1718/505 mln/726 NYSE Adv/Vol/Dec 2303/347 mln/608
10:30 am : The major indices spike to session highs, with a recovery in financial stocks (+3.3%) leading the way. All ten sectors are posting a gain.
General Motors (GM 4.82, +0.23) and Ford (F 2.79, +0.24) are showing strength. Ford has submitted its plan to the Senate Banking Committee outlining how the automaker would use a government loan. The company is asking for a $9 billion line of credit with a 10-year term, which Ford would use as a backstop if conditions worsen further.
Ford said it will focus more on small and medium-sized vehicles, will strengthen its supply base and downsize its dealer network, among other initiatives. Ford expects these efforts will make the company at or above breakeven in 2011.DJ30 +150.45 NASDAQ +27.65 SP500 +18.69 NASDAQ Adv/Vol/Dec 1677/379 mln/709 NYSE Adv/Vol/Dec 2207/268 mln/662
10:00 am : Stocks give up most of their opening gains as financials (-0.7%) reverse into the red. Energy (+1.8%), telecom (+1.5%) and industrial (+1.3%) stocks are still posting solid gains.
In earnings news, retailer Sears Holdings (SHLD 31.92, +0.08) posted a third quarter loss of $0.90 per share, excluding nonrecurring items, which was worse than the expected loss of $0.49. Sears will close eight additional underperforming stores and has approved $500 million for share repurchases.
Staples (SPLS 16.45, +1.33) reported a 35% year-over-year increase in revenue, with gains fueled by the acquisition of Corporate Express. Staples earned $0.42 per share, which was slightly better than the expected earnings of $0.41.
Beazer Homes (BZH 1.67, +0.17) reported a massive $12.29 per share loss, or $474 million, as homebuilding revenues plunged 44.6% year-over-year. Wall Street expected a loss of $2.10 per share.DJ30 +12.58 NASDAQ +5.99 SP500 +2.75 NASDAQ Adv/Vol/Dec 1475/186 mln/751 NYSE Adv/Vol/Dec 1869/143 mln/884
09:35 am : The stock market opens with solid gains, although the advance only makes up a small portion of Monday's sharp sell-off.
General Electric (GE 16.02, +0.52) said its sees fourth quarter earnings per share of between $0.50 and $0.52, which is on the low end of GE's previous range of between $0.50 and $0.65. The consensus estimate is $0.51 per share. GE reaffirmed its plan to maintain a dividend of $1.24 in 2009.
General Motors (GM 4.98, +0.39), Ford (F 2.72, +0.17) and Chrysler will go before lawmakers today to lay out their plan on how they would use a potential $25 billion loan. The struggling automakers will also report November sales results later today.DJ30 +63.16 NASDAQ +15.31 SP500 +10.06
09:16 am : S&P futures vs fair value: +12.90. Nasdaq futures vs fair value: +15.00.
09:02 am : S&P futures vs fair value: +16.50. Nasdaq futures vs fair value: +18.80.
08:35 am : S&P futures vs fair value: +14.80. Nasdaq futures vs fair value: +19.00. A higher start is expected. General Electric said its sees fourth quarter earnings per share of between $0.50 and $0.52, which is on the low end of its previous range of between $0.50 and $0.65. The consensus estimate is $0.51 per share. GE reaffirmed its plans to maintain a dividend of $1.24 in 2009, which equates to a 8.00% yield at current prices. Shares of GE are up about 1% in premarket trading.
08:12 am : S&P futures vs fair value: +15.60. Nasdaq futures vs fair value: +20.80. Futures indicate a higher start following yesterday's sharp sell-off. U.S. automakers will go on Capitol Hill to outline a plan on how they would use a potential $25 billion loan. The automakers are also set to report November sales later today. In earnings news, Beazer Homes (BZH) and Sears Holdings (SHLD) both reported a larger-than-expected third quarter loss. The Wall Street Journal reported that Goldman Sachs (GS) is likely to report a net loss of as much as $2 billion in its latest quarter, which would be five times more than the consensus estimate. JPMorgan Chase (JPM) is going to slash 9,200 Washington Mutual jobs, according to Reuters.
06:38 am : S&P futures vs fair value: +16.60. Nasdaq futures vs fair value: +25.30.
06:38 am : Nikkei...7863.69...-533.50...-6.40%. Hang Seng...13405.85...-703.00...-4.90%.
06:38 am : FTSE...4101.40...+35.90...+0.90%. DAX...4488.48...+96.40...+2.20%.
http://biz.yahoo.com/mu/update.html
4:25 pm : The stock market regained about 40% of yesterday's massive 8.9% sell-off. Stocks were in positive ground after General Electric (GE 17.61, +2.11) gave a better-than-feared business update and then surged to session highs in the final minutes of trade after General Motors (GM 4.85, +0.26) outlined its plan for government aid.
The S&P 500 rose 4.0% in a volatile session, with all ten sectors posting a gain. Volume was slightly above average and on pace with Monday's level.
General Motors and Ford outlined to Congress how the automakers would use $25 billion in loans from the government. Ford asked for a $9 billion loan, saying it will focus on more fuel efficient vehicles and downsize its dealer-base, among other initiatives, to reach at least breakeven by 2011. GM requested $12 billion in government term loans and a $6 billion line of credit in case the downturn persists. GM plans to start repaying the loans as early as 2011.
November U.S. auto sales results were dismal. On year-over-year basis, sales plunged 41% at GM, 31% at Ford, 47% at Chrysler and 34% at Toyota (TM 62.00, +3.44).
General Electric was the best-performing stock. The conglomerate said it expects fourth quarter earnings on the low end of its previous guidance, but this was better than many analysts had expected. GE also said it will keep its dividend unchanged in 2009. At Monday's closing price, GE's dividend represented a hefty yield of 8%.
The financial sector (+7.9%) outperformed following its 17% plunge in the previous session. Goldman Sachs (GS 65.10, -0.66), however, was a notable underperformer. The Wall Street Journal reported that Goldman is likely to report a net loss of as much as $2 billion in its later quarter, which would be five times worse than the consensus estimate.
In earnings news, Sears Holdings (SHLD 36.03, +4.19) and Beazer Homes (BZH 1.37, -0.13) posted larger-than-expected third quarter losses. Staples (SPLS 16.32, +1.20) reported a slightly higher-than-expected profit.
Separately, The Federal Reserve said due to the strains in the financial markets it will extend three liquidity facilities through April 30, 2009. The facilities aim to increase liquidity for asset backed commercial paper and financial firms.
Despite the gains in stocks, Treasuries advanced as investors speculated that the Federal Reserve will buy longer-term Treasuries. The 10-year note rose 15 ticks to send its yield down to 2.67%.
Oil prices had a volatile session, eventually falling 3.8% to $47.42, which is the lowest level since May 2005.DJ30 +270.00 NASDAQ +51.73 NQ100 +3.6% R2K +5.9% SP400 +4.8% SP500 +32.60 NASDAQ Adv/Vol/Dec 1972/2.11 bln/776 NYSE Adv/Vol/Dec 2398/1.62 bln/749
3:30 pm : After some choppy action stocks reclaim more ground. General Electric (GE 17.47, +1.97) is trading near recently reached session highs.
Chrysler reported that November U.S. sales fell 47% year-over-year. Year-to-date, sales are down 28%.
General Motors (GM 4.57, -0.02) said it will provide at 5:30 PM ET an overview of its plan that was sent to Congress.
(Note: Nasdaq data appears to be frozen)DJ30 +207.65 NASDAQ +18.12 SP500 +24.13 NASDAQ Adv/Vol/Dec 1795/1.58 bln/920 NYSE Adv/Vol/Dec 2290/1.05 bln/838
3:05 pm : Stocks regain some ground, but are still well off session highs.
Tech stocks (+1.7%) as a whole are performing on par with the market, despite the underperformance of semiconductors (-0.6%). The semiconductor equipment market is expected to decline 28% in 2008 and 21% in 2009, according to the year-end edition of the SEMI Capital Equipment Forecast.
Prices of DRAM, a type of memory, have dropped to new lows, with 1 gigabyte DDR2 at only $0.60, according to Digitimes.DJ30 +101.31 NASDAQ +27.24 SP500 +14.80 NASDAQ Adv/Vol/Dec 1769/1.44 bln/939 NYSE Adv/Vol/Dec 2226/952 mln/888
2:30 pm : Stocks give up the majority of their gains, with the Dow briefly trading in the red. The weak General Motors (GM 4.42, -0.17) sales data and a report that the automaker may need to file for Chapter 11 bankruptcy protection before Christmas is weighing on sentiment. The S&P 500 is up only 0.7% after trading with a gain of as much as 3.9%.
Consumer staples (-1.0%) and utilities (-0.5%) are now posting a loss.
Meanwhile, crude prices fall to session lows, now down 4.6% to $47.05 per barrel.DJ30 +39.58 NASDAQ +12.08 SP500 +5.27 NASDAQ Adv/Vol/Dec 1566/1.30 bln/1112 NYSE Adv/Vol/Dec 1909/867 mln/1186
2:00 pm : The stock market continues to give up gains.
General Motors (GM 4.57, -0.02) reported November U.S. sales plunged 41.3% year-over-year, which was worse than the expected decline of 33%. The news sends shares of GM in the red for the first time this session.
The Wall Street Journal reports that the United Auto Workers Union said GM may need funding by the end of the year to avoid bankruptcy.DJ30 +140.50 NASDAQ +30.04 SP500 +18.01 NASDAQ Adv/Vol/Dec 1756/1.14 bln/906 NYSE Adv/Vol/Dec 2228/767 mln/861
1:30 pm : Stocks trade with solid gains, but have retreated from their best levels. Market breadth is positive. Advancers outpace decliners by 7-to-2 on the NYSE and by 5-to-2 on the Nasdaq.
Honda (HMC 20.77, +0.83) U.S. auto sales fell 31.6% in November, according to reports.DJ30 +195.37 NASDAQ +38.88 SP500 +23.73 NASDAQ Adv/Vol/Dec 1890/1.04 bln/769 NYSE Adv/Vol/Dec 2399/691 mln/673
1:05 pm : The stock market has eased off its session high, where it traded with a 3.9% gain, but continues to show strength. All ten of the economic sectors are trading in the green.
The consumer staples sector is lagging the other sectors. It is up just 0.9% this session. However, the sector also held up better than the others in the prior session's sell-off. Consumer staples stocks slipped little more than 5% in the prior session.
Reports indicate that former AOL CEO Jonathan Miller is trying to raise funds to purchase Yahoo! (YHOO 11.88, +1.44). The Wall Street Journal states its sources indicate a deal could be done between $20 and $22 per YHOO share. DJ30 +234.96 NASDAQ +47.26 SP500 +28.19 NASDAQ Adv/Vol/Dec 1883/958 mln/757 NYSE Adv/Vol/Dec 2382/636 mln/676
12:25 pm : Stocks continue to rally, led by financials (+6.8%) and telecom (+5.1%).
Ford (F 2.80, +0.25) reported that U.S. November sales dropped 30.6% year-over-year, which was slightly better than the expected decline of 32%. Year-to-date, sales have declined 19.7%.
Ford plans to produce 430,000 vehicles in North America during the first quarter 2009, down 38% from the 692,000 produced in the first quarter of 2008.
Weakness is not limited to just domestic automakers. Toyota Motor (TM 64.42, +3.86) reported a North American sales drop of 34%, according to the AP.DJ30 +262.76 NASDAQ +50.62 SP500 +31.03 NASDAQ Adv/Vol/Dec 1883/828 mln/726 NYSE Adv/Vol/Dec 2407/570 mln/633
11:55 am : Stocks post a solid 3.1% gain at midday, although they still have a long way to go to make up yesterday's 8.9% plunge.
Buying interest is mostly broad based, with all ten sectors in positive territory.
General Electric (GE 17.00, +1.50) is providing leadership. The conglomerate said it expects fourth quarter earnings on the low end of its previous guidance, but this was better than many analysts had feared. GE also said it will keep its dividend unchanged in 2009. At Monday's closing price, GE's dividend represented a hefty yield of 8%.
General Motors (GM 4.89, +0.30) and Ford (F 2.82, +0.27) are sporting gains as the automakers outline plans how they would use $25 billion in loans from the government. Ford asked for a $9 billion loan, saying it will focus on more fuel efficient vehicles and downsize its dealer-base, among other initiatives, to reach at least breakeven by 2011. Both automakers are scheduled later today to report November sales results.
In earnings news, Sears Holdings (SHLD 37.20, +5.36) and Beazer Homes (BZH 1.28, -0.22) posted larger-than-expected third quarter losses. Staples (SPLS 16.42, +1.30) posted a slightly higher-than-expected profit.
The Federal Reserve said due to the strains in the financial markets it will extend three liquidity facilities through April 30, 2009. The facilities aim to increase liquidity for asset backed commercial paper and financial firms.
In commodity trading, oil prices fell to $47.36 per barrel, marking a multi-year low. At midday, prices have recovered a bit to a 1.3% loss at $48.67 per barrel.DJ30 +227.63 NASDAQ +42.43 SP500 +25.99 NASDAQ Adv/Vol/Dec 1839/721 mln/743 NYSE Adv/Vol/Dec 2338/497 mln/662
11:30 am : Stocks trade at or near session highs. Buying interest is broad based with all ten sectors posting a gain, although defensive oriented stocks are underperforming on a relative basis.
Oil prices come under selling pressure, now down 3.0% to $47.75 per barrel, reversing an earlier gain of 2.0%. In early-morning electronic trade, crude prices fell to $47.36 per barrel, marking a fresh multi-year low.DJ30 +199.59 NASDAQ +38.38 SP500 +23.48 NASDAQ Adv/Vol/Dec 1748/624 mln/789 NYSE Adv/Vol/Dec 2245/430 mln/735
11:00 am : The major indices extend their gains and then run into some modest resistance at session highs.
General Electric (GE 17.01, +1.51) is one of the best-performing stocks this session as investors embrace the conglomerate's business update.
Shares of Dell (DELL 10.37, +0.32) received a boost after Dow Jones quoted CEO Michael Dell as saying Black Friday sales "look pretty good."
In commodity trading, crude oil is flat after giving up an early gain of 2.0%. The dollar is down 0.3%DJ30 +177.69 NASDAQ +34.94 SP500 +20.44 NASDAQ Adv/Vol/Dec 1718/505 mln/726 NYSE Adv/Vol/Dec 2303/347 mln/608
10:30 am : The major indices spike to session highs, with a recovery in financial stocks (+3.3%) leading the way. All ten sectors are posting a gain.
General Motors (GM 4.82, +0.23) and Ford (F 2.79, +0.24) are showing strength. Ford has submitted its plan to the Senate Banking Committee outlining how the automaker would use a government loan. The company is asking for a $9 billion line of credit with a 10-year term, which Ford would use as a backstop if conditions worsen further.
Ford said it will focus more on small and medium-sized vehicles, will strengthen its supply base and downsize its dealer network, among other initiatives. Ford expects these efforts will make the company at or above breakeven in 2011.DJ30 +150.45 NASDAQ +27.65 SP500 +18.69 NASDAQ Adv/Vol/Dec 1677/379 mln/709 NYSE Adv/Vol/Dec 2207/268 mln/662
10:00 am : Stocks give up most of their opening gains as financials (-0.7%) reverse into the red. Energy (+1.8%), telecom (+1.5%) and industrial (+1.3%) stocks are still posting solid gains.
In earnings news, retailer Sears Holdings (SHLD 31.92, +0.08) posted a third quarter loss of $0.90 per share, excluding nonrecurring items, which was worse than the expected loss of $0.49. Sears will close eight additional underperforming stores and has approved $500 million for share repurchases.
Staples (SPLS 16.45, +1.33) reported a 35% year-over-year increase in revenue, with gains fueled by the acquisition of Corporate Express. Staples earned $0.42 per share, which was slightly better than the expected earnings of $0.41.
Beazer Homes (BZH 1.67, +0.17) reported a massive $12.29 per share loss, or $474 million, as homebuilding revenues plunged 44.6% year-over-year. Wall Street expected a loss of $2.10 per share.DJ30 +12.58 NASDAQ +5.99 SP500 +2.75 NASDAQ Adv/Vol/Dec 1475/186 mln/751 NYSE Adv/Vol/Dec 1869/143 mln/884
09:35 am : The stock market opens with solid gains, although the advance only makes up a small portion of Monday's sharp sell-off.
General Electric (GE 16.02, +0.52) said its sees fourth quarter earnings per share of between $0.50 and $0.52, which is on the low end of GE's previous range of between $0.50 and $0.65. The consensus estimate is $0.51 per share. GE reaffirmed its plan to maintain a dividend of $1.24 in 2009.
General Motors (GM 4.98, +0.39), Ford (F 2.72, +0.17) and Chrysler will go before lawmakers today to lay out their plan on how they would use a potential $25 billion loan. The struggling automakers will also report November sales results later today.DJ30 +63.16 NASDAQ +15.31 SP500 +10.06
09:16 am : S&P futures vs fair value: +12.90. Nasdaq futures vs fair value: +15.00.
09:02 am : S&P futures vs fair value: +16.50. Nasdaq futures vs fair value: +18.80.
08:35 am : S&P futures vs fair value: +14.80. Nasdaq futures vs fair value: +19.00. A higher start is expected. General Electric said its sees fourth quarter earnings per share of between $0.50 and $0.52, which is on the low end of its previous range of between $0.50 and $0.65. The consensus estimate is $0.51 per share. GE reaffirmed its plans to maintain a dividend of $1.24 in 2009, which equates to a 8.00% yield at current prices. Shares of GE are up about 1% in premarket trading.
08:12 am : S&P futures vs fair value: +15.60. Nasdaq futures vs fair value: +20.80. Futures indicate a higher start following yesterday's sharp sell-off. U.S. automakers will go on Capitol Hill to outline a plan on how they would use a potential $25 billion loan. The automakers are also set to report November sales later today. In earnings news, Beazer Homes (BZH) and Sears Holdings (SHLD) both reported a larger-than-expected third quarter loss. The Wall Street Journal reported that Goldman Sachs (GS) is likely to report a net loss of as much as $2 billion in its latest quarter, which would be five times more than the consensus estimate. JPMorgan Chase (JPM) is going to slash 9,200 Washington Mutual jobs, according to Reuters.
06:38 am : S&P futures vs fair value: +16.60. Nasdaq futures vs fair value: +25.30.
06:38 am : Nikkei...7863.69...-533.50...-6.40%. Hang Seng...13405.85...-703.00...-4.90%.
06:38 am : FTSE...4101.40...+35.90...+0.90%. DAX...4488.48...+96.40...+2.20%.
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