AI
Friday, February 04, 2011 8:28:37 PM
Market Update 110204
4:30 pm : The January jobs report did little to spark traders into action today. That made for a largely lackluster session full of sideways chop, until a late bit of buying helped the three major equity averages set fresh two-year closing highs.
The only piece of data on today's calendar was the official payrolls report for for January. Nonfarm payrolls reportedly increased by 36,000, but that is considerably less than the 148,000 additions that had been expected, on average, among economists polled by Briefing.com. Private payrolls increased by only 50,000, which is far from the 163,000 additions had been widely expected.
However, the headline unemployment rate fell sharply to 9.0% from 9.4% in December. It had been expected to increase to 9.5%. Many attribute the drop in the unemployment rate to changes in prevailing population estimates and inclement weather.
Average hourly earnings made a surprise increase of 0.4%, which is the strongest monthly spike since 2008. The threat of wage inflation stirred a specter related to broader inflation, which acted as an additional catalyst in the five-day slide suffered by Treasuries -- the yield on the benchmark 10-year Note hit a multi-month high of 3.65% today.
Stocks were without clear of leadership for the third straight session. Despite that, the broader market still mustered another gain, which propped the S&P 500 up by 2.7%. That makes for the stock market's best weekly performance in nine weeks.
Although broad market action was largely lackluster, semiconductor stocks has an impressive session. The group spiked 2.1% and is already up 12.5% year-to-date. Strength among semiconductor plays made tech (+0.8%) the strongest sector of the session and gave the Nasdaq a lead over its counterparts.
There weren't a whole lot of earnings to digest, but news of an upside earnings surprise, upside guidance, and a dividend hike from Aetna (AET 37.42, +4.15) helped shares of the health care benefits provider stage strongest single-session surge in more than a year. The stock settled at its best level in 27 months.
Lack of motivation among investors made for unimpressive share volume once again. Specifically, trading volume on the NYSE failed to exceed 1 billion shares for the third straight session.
The Dollar Index advanced 0.3% for its third straight gain. It still ended logged a fractional loss for the week, though.
Advancing Sectors: Tech (+0.8%), Consumer Discretionary (+0.7%), Consumer Staples (+0.5%), Health Care (+0.5%), Industrials (+0.3%)
Unchanged: Financial, Materials, Telecom
Declining Sectors: Utilities (-0.6%), Energy (-0.3%)DJ30 +29.89 NASDAQ +15.42 NQ100 +0.7% R2K +0.2% SP400 +0.6% SP500 +3.77 NASDAQ Adv/Vol/Dec 1255/1.97 bln/1349 NYSE Adv/Vol/Dec 1477/919 mln/1492
3:50 pm : Commodities finished mixed on the session, with grains, precious metals, and livestock posting modest gains, while energy, softs and industrials all moved to the downside.
March crude oil shed 1.7% to settle at $89.03 per barrel. Prices dropped sharply in mid-morning trade, giving up modest gains and breaking below the $89 level to notch lows at $88.45 per barrel. The sell off in crude coincided with chatter that Egypt's President Hosni Mubarak would resign ahead of his last day in September. That was never confirmed and prices bounced modestly into the close. For the week, crude dropped 0.4%. March natural gas closed off 0.4% to $4.31 per MMBtu.
April gold finished lower by 0.3% to $1349.50 per ounce, while March silver ended higher by 1.1% to $29.01 per ounce. DJ30 +26.90 NASDAQ +15.43 SP500 +3.65 NASDAQ Adv/Vol/Dec 1229/1.8 bln/1362 NYSE Adv/Vol/Dec 1464/723.4 mln/1488
3:00 pm : Only an hour remains before the trading week ends. As things currently stand, the stock market is on pace for a weekly gain of more than 2%.
Next week brings another bevy of earnings, although the number of widely-held names has already begun to wane. There is also a dearth of data slated for next week. Monday brings consumer credit figures for December, but there really isn't anything pivotal until weekly jobless claims are posted on Thursday. Trade balance data and a consumer sentiment survey are due on Friday. DJ30 +11.99 NASDAQ +13.50 SP500 +1.70 NASDAQ Adv/Vol/Dec 1192/1.50 bln/1367 NYSE Adv/Vol/Dec 1356/600 mln/1587
2:30 pm : The stock market continues to chop along with a narrow gain. Action has been both listless and lackluster all session long.
Market participants have been unmotivated by the January jobs report, which featured smaller-than-expected growth in both nonfarm and private payrolls. The headline unemployment number tumbled unexpectedly to 9.0% from 9.4%, but prevailing population estimates played a part in that drop.
Lack of motivation among investors has also made for a lull in trading activity. As such, trading volume on the NYSE has yet to hit 550 million shares and only 90 minutes remain today. DJ30 +10.25 NASDAQ +12.83 SP500 +1.37 NASDAQ Adv/Vol/Dec 1146/1.38 bln/1397 NYSE Adv/Vol/Dec 1307/548 mln/1628
2:00 pm : The stock market is holding steady in higher ground, but it has yet to turn the move into anything material. However, the consumer discretionary sector is up 0.6% with help from retailers (+1.2%) while the tech sector is also up 0.6% with help from semiconductor issues (+1.9%).
Utilities have underperformed almost all session. The sector is down 1.0% at the moment. DJ30 +6.93 NASDAQ +13.54 SP500 +1.48 NASDAQ Adv/Vol/Dec 1210/1.27 bln/1315 NYSE Adv/Vol/Dec 1336/505 mln/1576
1:30 pm : Some buying interest has begun to surface in the broader market. That has the S&P 500 at its highest level in about three hours. As for the Nasdaq, it has climbed to a session high, where it sports a solid gain. The Nasdaq continues to be helped by tech stocks (+0.6%), namely semiconductor issues (+1.8%).DJ30 +5.86 NASDAQ +13.50 SP500 +1.09 NASDAQ Adv/Vol/Dec 1201/1.17 bln/1304 NYSE Adv/Vol/Dec 1290/470 mln/1610
1:00 pm : The January jobs report has done little to drive stocks this session. That has left the major equity averages stuck in a sideways chop all session. However, the dollar has staged another advance and Treasuries have resumed their descent.
During January nonfarm payrolls increased by 36,000 and private payrolls increased by 50,000, but both were well short of what had been widely expected. That made the drop in the headline unemployment rate to 9.0% from 9.4% a complete surprise. However, many attribute the dramatic reduction in the unemployment rate to changes in prevailing population estimates. Just yesterday Fed Chairman Bernanke reiterated that the economic recovery hasn't been strong enough to significantly reduce unemployment.
The jobs report featured a surprisingly strong 0.4% monthly increase in average hourly earnings. It was the sharpest monthly increase in more than two years. Some analysts have cited that increase as a catalyst for further selling in Treasuries, which are down markedly.
Treasuries have been stuck in a week long descent. That has the yield on the benchmark 10-year Note comfortably above 3.60% to its highest level in several months.
The major equity averages have been chopping along all session, but semiconductor stocks have attracted considerable support. Their collective 1.4% gain has helped the Nasdaq Composite maintain a modest lead over its counterparts.
The pace of earnings announcements slowed a bit over the past 24 hours. However, Aetna (AET 36.40, +3.13) was out with its latest quarterly report, which featured an upside earnings surprise and upside forecast that have helped the stock stage its best percentage move in more than a year to trade at a fresh two-year high.
The dollar continues to advance against competing currencies after it had set a two-month low earlier this week. The Dollar Index is up 0.4% today, but down 0.1% for the week. DJ30 +1.70 NASDAQ +8.06 SP500 -0.10 NASDAQ Adv/Vol/Dec 1080/1.07 bln/1416 NYSE Adv/Vol/Dec 1189/435 mln/1709
12:30 pm : The Nasdaq has managed to remain in positive territory while its counterparts chop along with fractional losses. The tech-rich Nasdaq continues to be helped by semiconductor issues, which are collectively up 1.2% at the moment. Semiconductor stocks are already up more than 11% this year.
Oil prices have come under increased pressure over the past hour. In turn, generic futures contract prices currently put oil at $88.90 per barrel, down 1.8% for the day.
The drop in oil prices has weighed on the energy sector which had spent about the first hour of trade near the neutral line, but it has since descended to a 0.5% loss. Although that isn't a dramatic drop, it is enough to make energy one of this session's worst performing sectors. DJ30 -8.25 NASDAQ +2.97 SP500 -1.38 NASDAQ Adv/Vol/Dec 914/975 mln/1558 NYSE Adv/Vol/Dec 1090/400 mln/1782
12:00 pm : Overall trade remains lackluster, but shares of Aetna (AET 36.24, +2.97) are having an impressive session. Following an upside earnings surprise and upside forecast, the stock is on pace for its best percentage move in more than a year and already at a fresh two-year high.
In contrast, Life Technologies (LIFE 52.28, -2.52) is down sharply to a near two-month low, even though the firm reported last evening better-than-expected earnings and issued in-line guidance. DJ30 -12.60 NASDAQ +1.74 SP500 -1.97 NASDAQ Adv/Vol/Dec 882/894 mln/1571 NYSE Adv/Vol/Dec 1069/365 mln/1802
11:30 am : Listless trade has made for some rather choppy action, which continues to keep stocks in a generally narrow trading range.
Despite the dullness that surrounds equities today, the dollar has turned higher. Recent buying in the greenback has the Dollar Index up 0.4%, which puts it on pace for its third straigth gain. During that time the Dollar Index has advanced 1.3%, which makes for its best three-session performance in about a month. The dollar is still down a bit more than 1% against a collection of competing currencies this year, though. DJ30 -12.57 NASDAQ +0.51 SP500 -2.02 NASDAQ Adv/Vol/Dec 820/785 mln/1597 NYSE Adv/Vol/Dec 1061/320 mln/1790
11:00 am : Stocks have turned lower in recent trade. The slide has the three major equity averages back into the red.
However, semiconductor stocks are puting together an impressive performance. Their collective strength has the Philadelphia Semiconductor Index up 0.9%. Marvell Tech (MRVL 19.85, +0.37) is a primary leader in the semiconductor space.
Strength among semiconductor issues has helped prop up the broader tech sector, which is up 0.1%. Tech is currently the only major sector of the S&P 500 to sport a gain. DJ30 -18.92 NASDAQ -0.86 SP500 -3.17 NASDAQ Adv/Vol/Dec 805/650 mln/1582 NYSE Adv/Vol/Dec 1029/265 mln/1796
10:35 am : The dollar index is trading near session highs, but this is only weighing on select commodities as half of the commodities in the CRB Commodity Index are higher. Most commodity segments are mixed this morning such as soft, energy, industrial, grains and livestock.
Sugar futures are leading the CRB Index this morning after plunging over 10% during yesterday's trading session. It closed about 9.3% lower. Volatility in sugar over the last few days initially stemmed from Cyclone Yasi near Australia, which threatened the country's sugar crop. In current trade, sugar is up 2.4% at 32.82 cents/lb.
Energy markets are mixed with crude in positive territory and RBOB gasoline, heating oil and natural gas lower. March crude oil moved into positive territory over four hours ago and hit session highs of $91.67 per barrel just after pit trading began. Crude is currently up 0.8% at $91.24 per barrel.
March natural gas pulled back around the top of the hour, falling back in to negative territory. It's now back near session lows of $4.29 per MMBtu, currently at $4.32 per MMBtu, down 0.3%.
Precious metals are trading higher this morning with silver the second best performer in the CRB Index. April gold began to move higher when pit trade opened and pushed into positive territory. It hit new session highs of $1358.50 per ounce and is now 0.3% higher at $1358.00 per ounce. March silver is up 1.8% at $29.25 per ounce.DJ30 +9.84 NASDAQ +7.22 SP500 +1.21 NASDAQ Adv/Vol/Dec 1002/475.2 mln/1302 NYSE Adv/Vol/Dec 1324/200.8 mln/1457
10:00 am : Stocks have recovered from an early slip. The S&P 500 and the Dow are now flat, but the Nasdaq is actually up to a modest gain. The Nasdaq is currently led by large-cap tech issues like Apple (AAPL 346.25, +2.84) and Research In Motion (RIMM 64.28, +1.61).
With stocks catching a bid, Treasuries have extended their recent slide. The yield on the benchmark 10-year Note is now to a multi-month high above 3.60%.
Advancing Sectors: Consumer Discretionary (+0.6%), Tech (+0.3%), Industrials (+0.2%), Materials (+0.1%), Consumer Staples (+0.1%)
Unchanged: Energy, Health Care
Declining Sectors: Utilities (-0.7%), Telecom (-0.4%), Financial (-0.4%)DJ30 +4.47 NASDAQ +5.96 SP500 +0.19 NASDAQ Adv/Vol/Dec 1011/315 mln/1231 NYSE Adv/Vol/Dec 1281/140 mln/1429
09:45 am : The major equity averages have slid to slight losses in the first few minutes of trade. Financials are currently the heaviest drag; they are down 0.7%.
Weakness among financial issues is rather broad. Diversified financial services are down 1.1%, diversified banks are down 1.0%, investment banks and brokerages are down 0.9%. However, insurance brokers are up an enviable 2.0%. Retail has attracted support for the second straight session.
The group advanced more than 1% in the prior session, but is up a much more tame 0.2% this morning. DJ30 -10.67 NASDAQ -2.75 SP500 -2.05 NASDAQ Adv/Vol/Dec 786/174 mln/1334 NYSE Adv/Vol/Dec 1007/94 mln/1631
09:15 am : S&P futures vs fair value: +1.60. Nasdaq futures vs fair value: +3.00. The stock market is up more than 2% for the week, but stock futures suggest that a flat-to-slightly higher start Friday is in order. The flow of earnings announcements has slowed a bit and the only economic item on the calendar -- the January jobs report -- was already released. Both nonfarm payrolls and private payrolls had smaller-than-expected increases, but the headline unemployment rate still made an unexpected drop to 9.0% from 9.4% in December. Part of that drop has been attributed to updated population estimates. The dollar has resumed its advance against competing currencies. In the prior session it posted its best percentage gain in almost one month. It is up modestly this morning, though. Action abroad has provided a generally positive backdrop to premarket trade; Europe's bourses are up modestly and Japan's Nikkei climbed more than 1% while China and Hong Kong's markets remained closed for holiday observance.
09:05 am : S&P futures vs fair value: +1.60. Nasdaq futures vs fair value: +3.50. The tone abroad has been generally positive, but gains have varied. Germany's DAX is up 0.1%. Deutsche Bank (DB) is a leader for the second straight session; the stock now trades at a five-month high on the German bourse. Automakers BMW and Volkswagen are back under pressure. France's CAC is currently up 0.2%. Saint Gobain has been a primary leader this session. Its effort has been complemented by Societe Generale and BNP Paribas, both of which have made nice rebounds from their prior session slides. Britain's FTSE is up 0.3%. Vodafone (VOD), Anglo American, and Barclays (BCS) have been driving forces behind the move. Royal Dutch Shell (RDS.A) has been a source of weakness for the second straight session; the cumulative effect of its slide in this session and in the prior session is a loss of more than 4%.
Markets in China and Hong Kong remain closed for holiday observance, but Japan's Nikkei was open for trade. The Nikkei scored a 1.1% gain. Softbank outperformed as it ascended to a 30-session high following its upwardly revised profit forecast. That helped the telecom sector swing to a 2.6% gain. Sony (SNE) also made a gain following its latest quarterly report. In merger and acquisition activity, Nippon Steel and Sumitomo Metal announced that they will combine.
08:35 am : S&P futures vs fair value: +0.50. Nasdaq futures vs fair value: +3.00. Stock futures saw some whipsaw action in the minutes surrounding the release of January nonfarm payrolls, but they have since stabilized near the neutral line. Nonfarm payrolls for January increased by 36,000, which is a far cry from the increase of 148,000 that had been expected, on average, among economists polled by Briefing.com. Private payrolls increased just 50,000, when 163,000 additions had been widely expected. Despite the smaller-than-expected increases, the headline unemployment rate fell sharply to 9.0% from 9.4% in December. The consensus among economists polled by Briefing.com had called for an unemployment rate of 9.5%. It should be noted, though, that the drop in the unemployment rate is mostly due to changes in prevailing population estimates. After all, Fed Chairman Bernanke just stated yesterday that the economic recovery hasn't been strong enough to significantly reduce unemployment.
08:05 am : S&P futures vs fair value: +0.80. Nasdaq futures vs fair value: +3.00. Stock futures have been bouncing around since the prior session's close. Their lack of direction has left them narrowly above the neutral line. The dollar is also flat after it staged a strong gain in the prior session. Listlessness comes ahead of the official January nonfarm payrolls report, which is due at the bottom of the hour. The flow of earnings announcements has slowed since yesterday, but Aetna (AET) has distinguished itself with better-than-expected results and upside guidance. Las Vegas Sands (LVS) had an upside earnings surprise, but its top line was light. UPS (UPS) had already reported its latest quarterly results earlier this week, but announced last evening an 11% increase in its quarterly dividend to $0.52 per share. As for overseas action, the tone has been generally positive, but markets in China and Hong Kong remain closed for holiday observance.
06:53 am : [BRIEFING.COM] S&P futures vs fair value: -0.30. Nasdaq futures vs fair value: +1.80.
06:53 am : Nikkei...10543.52...+112.20...+1.10%. Hang Seng...Holiday.........
http://finance.yahoo.com/marketupdate/update
5:31PM Canadian Natl Rail announces plan to buy back shares through private agreements (CNI) 68.38 +0.33 : Co announced that it intends to purchase for cancellation up to three million of its common shares pursuant to private agreements between CN and an arm's-length third-party seller. The purchases will form part of CN's 16.5-million share-repurchase program announced on Jan. 25, 2011.
5:15PM Borders receives notice regarding NYSE listing criteria (BGP) 0.39 -0.01 : Borders Group (BGP) reported that on Feb. 3, 2011, it was notified by NYSE Regulation that it was not in compliance with the continued listing standard of the New York Stock Exchange requiring a minimum average closing price of $1.00 per share over a consecutive 30 trading day period. Subject to providing required notice to the NYSE, the co is entitled to a six-month period from the date of the notification to cure this deficiency. During this period, Borders' shares would continue to be listed and traded on the NYSE, subject to its compliance with other NYSE continued listing standards.
5:00PM Holly Corp reports delay in return to planned operating levels at Navajo refinery due to weather (HOC) 52.65 +1.12 : Co announced that inclement weather has delayed its Navajo Refinery in Artesia, New Mexico from returning to planned operating levels. The Navajo Refinery experienced a plant-wide power failure late in the day on January 26, 2011 due to an interruption in power supply from its local utility. Navajo's crude rate has been reduced to ~40,000 barrels per day while plant personnel continue to work to restart certain downstream processing units. Management expects that because of the poor weather conditions, it could take at least an additional week to return to planned operating levels.
4:45PM A. O. Smith, Regal Beloit (RBC) receive request for more information from Department of Justice Regarding Sale of Motor Division (AOS) 42.80 +0.04 : A. O. Smith Corporation (AOS) and Regal Beloit Corp announced they have each received a request for additional information and documentary material from the U. S. Department of Justice regarding the sale of A. O. Smith Electrical Products Company to Regal Beloit. The request will extend the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976 as amended until 30 days after both companies have complied with the requests. The request may be subject to modifications suggested by the companies provided the Department of Justice agrees to the modifications. AOS and RBC are in the process of gathering information to respond to the requests and are working cooperatively with the Department of Justice as it reviews the proposed transaction.
4:40PM Ampco-Pittsburgh reports Q4 ($0.94) vs. $0.38 in last year's quarter; revs rose 23.5% to $82.2 mln (AP) 25.32 -0.57 :
4:38PM Energy Partners announces pricing of notes (EPL) 16.16 -0.12 : Co announced that it has priced its offering of $210.0 mln principal amount of 8.25% senior notes due 2018. The Notes will be sold to the initial purchasers at par, and will be fully and unconditionally guaranteed, jointly and severally, on an unsecured, senior basis, by certain of EPL's existing direct and indirect material subsidiaries. Jefferies & Co and BMO Capital Markets Corp. are acting as joint book-running managers for the offering.
4:30PM Bank of America Home Loans shifts resources to core mortgage operations; exits reverse mortgage origination business (BAC) 14.29 -0.14 : BAC Home Loans announced today that it will exit the reverse mortgage origination business and move the unit's operational resources into other critical areas serving customers. BAC Home Loans will continue to serve the needs of existing reverse mortgage customers and those with loans in process.
4:15PM Bank of America announces changes to resolve legacy mortgage issues and continue building the leading home lending business (BAC) 14.29 -0.14 : BAC President and Chief Executive Officer Brian Moynihan today announced changes to BAC Home Loans and Insurance that will continue the co's strong momentum in extending home mortgage credit while improving its leading mortgage modification programs for distressed homeowners and resolving legacy mortgage issues. The decision is the latest in a series of significant actions taken to resolve outstanding mortgage-related issues while solidifying the co's leading position in mortgage finance. While the review of the foreclosure process found that the underlying grounds for foreclosure decisions has been accurate, BAC implemented a series of improvements - including staffing, customer impact, and quality controls. Barbara Desoer, BAC Home Loans president, will continue building the mortgage business for BAC. Desoer is responsible for servicing loans for the more than 12 mln mortgage customers who remain current on their accounts, and for implementing the bank's strategy to be the preferred mortgage choice for its 50 mln household customers going forward. In 2010, BAC delivered $306 bln in quality mortgage lending to 1.4 mln customers. At the same time, a newly formed unit, Legacy Asset Servicing, has been established. Terry Laughlin will lead this unit and be responsible for servicing all defaulted loans, and for servicing discontinued residential mortgage products.
4:12PM Renasant announces acquisition of American Trust Bank of Roswell, Georgia; immediately accretive to Renasant's earnings per share and tangible book value (RNST) 15.83 -0.12 : Co announced that its wholly-owned subsidiary, Renasant Bank, has acquired all of the deposits, substantially all of the assets and certain other liabilities of American Trust Bank of Roswell, Georgia in a Federal Deposit Insurance Corporation assisted transaction. Renasant Bank acquired ~$145 mln of American Trust's assets and assumed approximately $230 million in liabilities. The acquisition is expected to provide a one-time gain in the first quarter of 2011, and it will be immediately accretive to Renasant's earnings per share and tangible book value.
4:08PM Bemis increases to quarterly cash dividend to $0.24 per share from $0.23 per share (BMS) 32.66 :
4:06PM Palatin Technologies reports that its exchange listing compliance plan has been accepted by the NYSE Amex; co has been granted an extension until May 26, 2011 to regain compliance (PTN) 1.19 -0.01 :
4:01PM American Apparel appointed John J. Luttrell as Executive Vice President and CFO, effective February 7, 2011 (APP) 1.12 +0.06 : The company announced that current Chief Financial Officer, Adrian Kowalewski, is being named Executive Vice President, Corporate Strategy, and that it appointed John J. Luttrell as Executive Vice President and CFO, effective February 7, 2011 Mr. Luttrell was previously Executive Vice President and CFO of Old Navy from 2007 to 2008. Prior to Old Navy, Mr. Luttrell was Executive Vice President and CFO of Wet Seal, from 2005 to 2007; and prior to that he spent approximately five years from 2001 to 2005 as CFO at Cost Plus.
4:00PM eDiets.com received notice from The NASDAQ Stock market that it does not comply with the minimum $35 million market value of listed securities requirement (DIET) 0.34 -0.01 :
3:57PM Monsanto announces USDA authorizes spring planting of Genuity Roundup Ready sugar beets (MON) 74.61 -0.22 : Co added that co and KWS SAAT AG petitioned USDA to act with interim measures so farmers could continue to grow Roundup Ready sugar beets while USDA completes an Environmental Impact Statement. "USDA's decision is a positive step for sugar beet farmers... Sugar beet farmers have been busy preparing for spring planting, waiting for USDA's guidance and hoping it would come in time for spring planting." Co states that it will carefully review the details of these interim measures for continued planting of Roundup Ready sugar beets.
3:43PM Las Vegas Sands: Following earnings, stock slips to fresh gap down lows late in the session as it breaks into the $46.00 level (LVS) 46.05 -4.22 : Would note that the 50-day ema is in this vicinity at $46.43, and the $44.00-45.00 zone below is considered supportive as well.
3:01PM Stock indices back flirting with session highs -- Dow +18, S&P +2, Nasdaq Comp +13.9 (SPY) :
2:50PM China Agritech responds to shortseller (CAGC) 10.02 +0.17 : "A number of analysts, professional investors, industry experts, and the Company's independent accountants have toured the Company's facilities in the past. The Company has never received any challenges regarding either the existence or the scale of production of its facilities. In addition, management has confirmed that the Harbin facility has never been listed for sale. The sales growth of the Company's organic fertilizers remains robust. In response to the short sellers' allegation that the Company's distribution centers are non-existent, there have already been 10 newly established distribution centers in Henan Province alone. In response to the short sellers' allegation that the Company's subsidiary YiNong does not exist, YiNong in fact is headquartered in Beijing with strong governmental support. In August 2010, the Company announced that it had entered into a strategic agreement with the Beijing Municipal Government to establish within Beijing the headquarters of its nationwide network of distribution centers. In response to the short sellers' allegation that the Company does not have a license to manufacture granular fertilizer, the government-issued production license number for China Agritech's granular fertilizers is clearly marked on each of our product's packaging..."
2:49PM Jack Henry announced that its Board of Directors has increased the quarterly cash dividend by 11% to $0.105/share (JKHY) 30.63 -0.18 :
2:44PM Tim Hortons signed a Master License Agreement with Apparel Group based in Dubai for up to 120 multi-format restaurants in markets in the Gulf Cooperation Council (THI) 41.73 +0.09 :
2:42PM NYMEX Energy Closing Prices (COMDX) : Crude oil settled lower by $1.52 to $89.03, natural gas closed lower by 2.5 cents to $4.312, heating oil fell 4.89 cents to finish at $2.7185, while RBOB gasoline ended down 6.41 cents to $2.4392 (all March contracts).
2:38PM CBOT Agriculture and Ethanol and ICE Exchange Sugar Closing Prices (COMDX) : March corn finished up 16 cents to $6.785, March wheat fell 5.25 cents to close at $8.5375, March soybeans fell 1.5 cents to close at $14.34, Feb ethanol closed up +0.07 at $2.434, while March world sugar futures closed up 0.60 cents (or 1.9%) to 32.64 cents.
2:23PM Medtronic reports an article has been published demonstrating the impact of spasticity on patients with multiple sclerosis and the benefits and underutilization of intrathecal baclofen (MDT) 39.15 +0.48 : The paper, published this week as an OnlineFirst article in Multiple Sclerosis Journal, recommends physician evaluation of ITB therapy as a treatment option for patients at all clinical stages of MS who are intolerant of or unresponsive to oral spasticity therapies.
1:53PM HearUSA files an action against Siemens (SI) Hearing Instruments (EAR) 0.51 -0.02 : Co files an action against Siemens Hearing Instruments in the Supreme Court of the State of New York. Co is seeking adjudication of a dispute between the parties concerning a claim by Siemens for an additional loan prepayment under the credit agreement of $2.3 million arising from HearUSA's sale of its Canadian assets in 2009.
1:49PM Cotton Futures Fall Limit-Down (BAL) 85.17 -1.93 : Cotton futures are pulling back further from yesterday's losses, which was primarily due to negative USDA data, causing cotton prices to fall the exchange limit of 4 cents to $1.6786/lb. Recent strength in the dollar index, which is showing gains for the third straight session of about 1.4%, is not helping either.
Yesterday, before its sell-off, cotton futures hit an all-time high of $1.8122/lb right before the USDA released its data. From that new high, cotton has now pulled back 7.4%. However, cotton is still up 24% from last month, up 20% from three months ago and up 143% YoY.
Yesterday, the USDA reported that net upland cotton sales fell 83% from the previous week and 63% from the prior 4-week average. The USDA noted that increases reported for Turkey (14,000 RB), Brazil (11,100 RB), China (7,700 RB), and Bangladesh (4,200 RB), were partially offset by decreases for Pakistan (7,300 RB) and Japan (2,600 RB). The USDA reported that exports of 426,800 RB --a marketing-year high-- were up 18% from the previous week and 42% from the prior 4-week average. The primary destinations were China (117,700 RB) and Turkey (85,700 RB).
The primary driver of the strength in cotton prices over the past year continues to be China, which is the largest producer and importer of cotton. The U.S. is the world's largest exporter of the commodity. In 2010, China imports rose 86% from the prior year on improved economic growth from the textile industry in combination with damage to the cotton crop. In 2011, China is expected to need more cotton than the country will produce, therefore keeping imports high. Meanwhile, inventory levels are at multi-year lows.
1:43PM Nasdaq Comp +12 has lagged behind S&P/Dow but finally edges above its Jan peak (QQQQ) : The Nasdaq Comp underperformed the S&P in terms of taking out it Jan peak but it has accomplished this in recent action today. However, its relative strength line vs. the S&P has yet to confirm the new high. This needs monitored going forward as previous non-confirmation have often led to at least some short term corrective trade (Click for chart).
1:36PM COMEX Metals Closing Prices (COMDX) : April gold ended lower by $3.50 to $1349.50, March silver gained 33.7 cents to finish at $29.065, while March copper ended up 3.5 cents to $4.5795.
1:34PM TransCanada Pipelines announces that its Horn River pipeline project has received regulatory approval from the National Energy Board (TRP) 38.39 +0.48 :
1:22PM Seagate Tech testing this week's previous peak and its 50 sma at 14.44 (STX) 14.43 +0.20 :
1:21PM Relative Sector Strength as Nasdaq Comp +13 breaks above Jan peak to set a new multi-year high of 2767.16 (QQQQ) : Sectors that are outperforming the S&P in recent action include: Disk Drive, Semi SMH, Software IGV, Networking IGN, Internet FDN, Materials XLB, Silver SLV, Coal KOL.
1:15PM S&P +1 and Dow +8 working back toward morning highs (SPY) :
1:12PM Nasdaq Comp +8.8 edges to fractional new session high of 2763.02 (QQQQ) : Last week's high is at 2763.64 with the Jan/multi-year (highest level since Nov 2007) at 2766.17.
1:07PM Temple-Inland announces 18% increase in quarterly dividend to $0.13 (TIN) 24.62 -0.27 :
12:43PM Networking Index -NWX- approaching Jan/40 month high (TECHX) 307.15 : Noted relative strength in the sector in early updates with the recent upside extension leaving the NWX slightly below its Jan/40 month high at 307.80 (session high 307.32). The Networking ETF (IGN) has slightly surpassed its Jan high of 36.54 (session high 36.60). The next levels of note above for the NWX are at 310 (Oct 2007 high) and 314 (July 2007 high) -- ADTN +3.7%, ALU +3.9%, ARRS +1.8%, AXE +1.1%, CIEN +10.3%, CSCO +0.7%, JNPR +2%, PLCM +0.9%, TLAB +3.7%.
12:23PM 10-yr Treasury Yield -TNX- surges to new multi-month high (TECHX) : The TNX broke out of a consolidation/triangle pattern this week and beyond the Dec high this morning to test the 3.65 level (Click for daily TNX chart).
12:03PM Energy slides to minor new session lows -- XLE, OIH, XES, XOP (XLE) :
12:01PM Silicon Labs edges back toward morning peak at 45.36 (SLAB) 45.34 +0.60 : Note that its high for the week and its 50 ema come into play at 45.48 and 45.61.
11:52AM Crude oil to fresh lows at $88.81; now off $1.63 to $88.91 (COMDX) :
11:48AM Compuware unit extends submittal window for Physician Quality Reporting Initiative revenue incentives to mid-March (CPWR) 10.92 -0.07 : Covisint, a Compuware company, announced that -- due to a high degree of customer demand and success -- it will extend its deadline for processing submittals to the Centers for Medicare & Medicaid Services (CMS) for the 2010 Physician Quality Reporting Initiative, through March 15, 2011.
11:36AM S&P -1.2 still in the red but holds/edges off support (SPY) : Noted second level support for the index at 1301/1300 in The Technical Take and have seen the index test and edge off this area this morning. This marks the 50% retracement of the push off yesterday's early low and congestion. A continued hold above keeps a favorable short term price pattern intact. Resistance above the high (1308) and Fib extension targets (1309/1310) is in the 1313/1315 area.
11:08AM Crude to fresh lows at $89.20; now off $1.24 to $89.30 (COMDX) :
10:48AM Superconductor announces $13.3 million common stock registered direct offering (SCON) 3.12 0.00 : Co announces that certain U.S.-based investors have agreed to invest $13.3 million in cash to purchase 5,443,000 million shares of co's Common Stock. Co expects to use the ~$12.4 million in net proceeds for general working capital purposes.
10:46AM Sharp reversal in crude oil; now off 20 cents to $90.34 (COMDX) :
10:40AM Miller Energy Resources appoints KPMG as new auditor (MILL) 5.00 -0.00 : Co announced that it has appointed KPMG as the Company's registered independent public accounting firm replacing Miller's previous independent public accounting firm, Sherb & Co. LLP. The Company's Audit Committee approved the change in auditor. "There were no disagreements between Miller and Sherb & Co. LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures."
10:37AM U.S. Oil Fund ETF break to fresh gap up lows as it peels back toward the $38.00 level (USO) 38.15 +0.07 : XLE, OIH
10:35AM Limited gains but dips have continued to bring in buyers -- Dow +6, S&P +1, Nasdaq Comp +7 (SPY) : Relative strength (outperforming the S&P) in: Rail (WAB +1.6%, CSX +0.9%, NSC +0.4%, UNP +0.8%, TRN +1.1%, ARII +0.4%, RAIL +0.3%, CNI +0.5%), KSU +0.4%, GWR +0.6%), Telecom IYZ, Semi SMH Internet FDN, Silver SLV.
10:32AM Widepoint and Wackenhut Services announce strategic alliance to expands the total security services Wackenhut can offer its customers; financial terms not disclosed (WYY) 1.30 :
10:29AM Simon Properties Correction: Beats Q4 FFO consensus by $0.06 (SPG) 103.48 -1.22 : Earlier we incorrectly reported Q4 FFO of $1.75, the comment has been removed and should have read as follows: Reports Q4 (Dec) funds from operations of $1.80 per share, excluding non-recurring items, $0.06 better than the Thomson Reuters consensus of $1.74. Co issues in-line guidance for FY11, sees FFO of $6.45-6.60 vs. $6.57 Thomson Reuters consensus.
http://finance.yahoo.com/marketupdate/inplay
4:30 pm : The January jobs report did little to spark traders into action today. That made for a largely lackluster session full of sideways chop, until a late bit of buying helped the three major equity averages set fresh two-year closing highs.
The only piece of data on today's calendar was the official payrolls report for for January. Nonfarm payrolls reportedly increased by 36,000, but that is considerably less than the 148,000 additions that had been expected, on average, among economists polled by Briefing.com. Private payrolls increased by only 50,000, which is far from the 163,000 additions had been widely expected.
However, the headline unemployment rate fell sharply to 9.0% from 9.4% in December. It had been expected to increase to 9.5%. Many attribute the drop in the unemployment rate to changes in prevailing population estimates and inclement weather.
Average hourly earnings made a surprise increase of 0.4%, which is the strongest monthly spike since 2008. The threat of wage inflation stirred a specter related to broader inflation, which acted as an additional catalyst in the five-day slide suffered by Treasuries -- the yield on the benchmark 10-year Note hit a multi-month high of 3.65% today.
Stocks were without clear of leadership for the third straight session. Despite that, the broader market still mustered another gain, which propped the S&P 500 up by 2.7%. That makes for the stock market's best weekly performance in nine weeks.
Although broad market action was largely lackluster, semiconductor stocks has an impressive session. The group spiked 2.1% and is already up 12.5% year-to-date. Strength among semiconductor plays made tech (+0.8%) the strongest sector of the session and gave the Nasdaq a lead over its counterparts.
There weren't a whole lot of earnings to digest, but news of an upside earnings surprise, upside guidance, and a dividend hike from Aetna (AET 37.42, +4.15) helped shares of the health care benefits provider stage strongest single-session surge in more than a year. The stock settled at its best level in 27 months.
Lack of motivation among investors made for unimpressive share volume once again. Specifically, trading volume on the NYSE failed to exceed 1 billion shares for the third straight session.
The Dollar Index advanced 0.3% for its third straight gain. It still ended logged a fractional loss for the week, though.
Advancing Sectors: Tech (+0.8%), Consumer Discretionary (+0.7%), Consumer Staples (+0.5%), Health Care (+0.5%), Industrials (+0.3%)
Unchanged: Financial, Materials, Telecom
Declining Sectors: Utilities (-0.6%), Energy (-0.3%)DJ30 +29.89 NASDAQ +15.42 NQ100 +0.7% R2K +0.2% SP400 +0.6% SP500 +3.77 NASDAQ Adv/Vol/Dec 1255/1.97 bln/1349 NYSE Adv/Vol/Dec 1477/919 mln/1492
3:50 pm : Commodities finished mixed on the session, with grains, precious metals, and livestock posting modest gains, while energy, softs and industrials all moved to the downside.
March crude oil shed 1.7% to settle at $89.03 per barrel. Prices dropped sharply in mid-morning trade, giving up modest gains and breaking below the $89 level to notch lows at $88.45 per barrel. The sell off in crude coincided with chatter that Egypt's President Hosni Mubarak would resign ahead of his last day in September. That was never confirmed and prices bounced modestly into the close. For the week, crude dropped 0.4%. March natural gas closed off 0.4% to $4.31 per MMBtu.
April gold finished lower by 0.3% to $1349.50 per ounce, while March silver ended higher by 1.1% to $29.01 per ounce. DJ30 +26.90 NASDAQ +15.43 SP500 +3.65 NASDAQ Adv/Vol/Dec 1229/1.8 bln/1362 NYSE Adv/Vol/Dec 1464/723.4 mln/1488
3:00 pm : Only an hour remains before the trading week ends. As things currently stand, the stock market is on pace for a weekly gain of more than 2%.
Next week brings another bevy of earnings, although the number of widely-held names has already begun to wane. There is also a dearth of data slated for next week. Monday brings consumer credit figures for December, but there really isn't anything pivotal until weekly jobless claims are posted on Thursday. Trade balance data and a consumer sentiment survey are due on Friday. DJ30 +11.99 NASDAQ +13.50 SP500 +1.70 NASDAQ Adv/Vol/Dec 1192/1.50 bln/1367 NYSE Adv/Vol/Dec 1356/600 mln/1587
2:30 pm : The stock market continues to chop along with a narrow gain. Action has been both listless and lackluster all session long.
Market participants have been unmotivated by the January jobs report, which featured smaller-than-expected growth in both nonfarm and private payrolls. The headline unemployment number tumbled unexpectedly to 9.0% from 9.4%, but prevailing population estimates played a part in that drop.
Lack of motivation among investors has also made for a lull in trading activity. As such, trading volume on the NYSE has yet to hit 550 million shares and only 90 minutes remain today. DJ30 +10.25 NASDAQ +12.83 SP500 +1.37 NASDAQ Adv/Vol/Dec 1146/1.38 bln/1397 NYSE Adv/Vol/Dec 1307/548 mln/1628
2:00 pm : The stock market is holding steady in higher ground, but it has yet to turn the move into anything material. However, the consumer discretionary sector is up 0.6% with help from retailers (+1.2%) while the tech sector is also up 0.6% with help from semiconductor issues (+1.9%).
Utilities have underperformed almost all session. The sector is down 1.0% at the moment. DJ30 +6.93 NASDAQ +13.54 SP500 +1.48 NASDAQ Adv/Vol/Dec 1210/1.27 bln/1315 NYSE Adv/Vol/Dec 1336/505 mln/1576
1:30 pm : Some buying interest has begun to surface in the broader market. That has the S&P 500 at its highest level in about three hours. As for the Nasdaq, it has climbed to a session high, where it sports a solid gain. The Nasdaq continues to be helped by tech stocks (+0.6%), namely semiconductor issues (+1.8%).DJ30 +5.86 NASDAQ +13.50 SP500 +1.09 NASDAQ Adv/Vol/Dec 1201/1.17 bln/1304 NYSE Adv/Vol/Dec 1290/470 mln/1610
1:00 pm : The January jobs report has done little to drive stocks this session. That has left the major equity averages stuck in a sideways chop all session. However, the dollar has staged another advance and Treasuries have resumed their descent.
During January nonfarm payrolls increased by 36,000 and private payrolls increased by 50,000, but both were well short of what had been widely expected. That made the drop in the headline unemployment rate to 9.0% from 9.4% a complete surprise. However, many attribute the dramatic reduction in the unemployment rate to changes in prevailing population estimates. Just yesterday Fed Chairman Bernanke reiterated that the economic recovery hasn't been strong enough to significantly reduce unemployment.
The jobs report featured a surprisingly strong 0.4% monthly increase in average hourly earnings. It was the sharpest monthly increase in more than two years. Some analysts have cited that increase as a catalyst for further selling in Treasuries, which are down markedly.
Treasuries have been stuck in a week long descent. That has the yield on the benchmark 10-year Note comfortably above 3.60% to its highest level in several months.
The major equity averages have been chopping along all session, but semiconductor stocks have attracted considerable support. Their collective 1.4% gain has helped the Nasdaq Composite maintain a modest lead over its counterparts.
The pace of earnings announcements slowed a bit over the past 24 hours. However, Aetna (AET 36.40, +3.13) was out with its latest quarterly report, which featured an upside earnings surprise and upside forecast that have helped the stock stage its best percentage move in more than a year to trade at a fresh two-year high.
The dollar continues to advance against competing currencies after it had set a two-month low earlier this week. The Dollar Index is up 0.4% today, but down 0.1% for the week. DJ30 +1.70 NASDAQ +8.06 SP500 -0.10 NASDAQ Adv/Vol/Dec 1080/1.07 bln/1416 NYSE Adv/Vol/Dec 1189/435 mln/1709
12:30 pm : The Nasdaq has managed to remain in positive territory while its counterparts chop along with fractional losses. The tech-rich Nasdaq continues to be helped by semiconductor issues, which are collectively up 1.2% at the moment. Semiconductor stocks are already up more than 11% this year.
Oil prices have come under increased pressure over the past hour. In turn, generic futures contract prices currently put oil at $88.90 per barrel, down 1.8% for the day.
The drop in oil prices has weighed on the energy sector which had spent about the first hour of trade near the neutral line, but it has since descended to a 0.5% loss. Although that isn't a dramatic drop, it is enough to make energy one of this session's worst performing sectors. DJ30 -8.25 NASDAQ +2.97 SP500 -1.38 NASDAQ Adv/Vol/Dec 914/975 mln/1558 NYSE Adv/Vol/Dec 1090/400 mln/1782
12:00 pm : Overall trade remains lackluster, but shares of Aetna (AET 36.24, +2.97) are having an impressive session. Following an upside earnings surprise and upside forecast, the stock is on pace for its best percentage move in more than a year and already at a fresh two-year high.
In contrast, Life Technologies (LIFE 52.28, -2.52) is down sharply to a near two-month low, even though the firm reported last evening better-than-expected earnings and issued in-line guidance. DJ30 -12.60 NASDAQ +1.74 SP500 -1.97 NASDAQ Adv/Vol/Dec 882/894 mln/1571 NYSE Adv/Vol/Dec 1069/365 mln/1802
11:30 am : Listless trade has made for some rather choppy action, which continues to keep stocks in a generally narrow trading range.
Despite the dullness that surrounds equities today, the dollar has turned higher. Recent buying in the greenback has the Dollar Index up 0.4%, which puts it on pace for its third straigth gain. During that time the Dollar Index has advanced 1.3%, which makes for its best three-session performance in about a month. The dollar is still down a bit more than 1% against a collection of competing currencies this year, though. DJ30 -12.57 NASDAQ +0.51 SP500 -2.02 NASDAQ Adv/Vol/Dec 820/785 mln/1597 NYSE Adv/Vol/Dec 1061/320 mln/1790
11:00 am : Stocks have turned lower in recent trade. The slide has the three major equity averages back into the red.
However, semiconductor stocks are puting together an impressive performance. Their collective strength has the Philadelphia Semiconductor Index up 0.9%. Marvell Tech (MRVL 19.85, +0.37) is a primary leader in the semiconductor space.
Strength among semiconductor issues has helped prop up the broader tech sector, which is up 0.1%. Tech is currently the only major sector of the S&P 500 to sport a gain. DJ30 -18.92 NASDAQ -0.86 SP500 -3.17 NASDAQ Adv/Vol/Dec 805/650 mln/1582 NYSE Adv/Vol/Dec 1029/265 mln/1796
10:35 am : The dollar index is trading near session highs, but this is only weighing on select commodities as half of the commodities in the CRB Commodity Index are higher. Most commodity segments are mixed this morning such as soft, energy, industrial, grains and livestock.
Sugar futures are leading the CRB Index this morning after plunging over 10% during yesterday's trading session. It closed about 9.3% lower. Volatility in sugar over the last few days initially stemmed from Cyclone Yasi near Australia, which threatened the country's sugar crop. In current trade, sugar is up 2.4% at 32.82 cents/lb.
Energy markets are mixed with crude in positive territory and RBOB gasoline, heating oil and natural gas lower. March crude oil moved into positive territory over four hours ago and hit session highs of $91.67 per barrel just after pit trading began. Crude is currently up 0.8% at $91.24 per barrel.
March natural gas pulled back around the top of the hour, falling back in to negative territory. It's now back near session lows of $4.29 per MMBtu, currently at $4.32 per MMBtu, down 0.3%.
Precious metals are trading higher this morning with silver the second best performer in the CRB Index. April gold began to move higher when pit trade opened and pushed into positive territory. It hit new session highs of $1358.50 per ounce and is now 0.3% higher at $1358.00 per ounce. March silver is up 1.8% at $29.25 per ounce.DJ30 +9.84 NASDAQ +7.22 SP500 +1.21 NASDAQ Adv/Vol/Dec 1002/475.2 mln/1302 NYSE Adv/Vol/Dec 1324/200.8 mln/1457
10:00 am : Stocks have recovered from an early slip. The S&P 500 and the Dow are now flat, but the Nasdaq is actually up to a modest gain. The Nasdaq is currently led by large-cap tech issues like Apple (AAPL 346.25, +2.84) and Research In Motion (RIMM 64.28, +1.61).
With stocks catching a bid, Treasuries have extended their recent slide. The yield on the benchmark 10-year Note is now to a multi-month high above 3.60%.
Advancing Sectors: Consumer Discretionary (+0.6%), Tech (+0.3%), Industrials (+0.2%), Materials (+0.1%), Consumer Staples (+0.1%)
Unchanged: Energy, Health Care
Declining Sectors: Utilities (-0.7%), Telecom (-0.4%), Financial (-0.4%)DJ30 +4.47 NASDAQ +5.96 SP500 +0.19 NASDAQ Adv/Vol/Dec 1011/315 mln/1231 NYSE Adv/Vol/Dec 1281/140 mln/1429
09:45 am : The major equity averages have slid to slight losses in the first few minutes of trade. Financials are currently the heaviest drag; they are down 0.7%.
Weakness among financial issues is rather broad. Diversified financial services are down 1.1%, diversified banks are down 1.0%, investment banks and brokerages are down 0.9%. However, insurance brokers are up an enviable 2.0%. Retail has attracted support for the second straight session.
The group advanced more than 1% in the prior session, but is up a much more tame 0.2% this morning. DJ30 -10.67 NASDAQ -2.75 SP500 -2.05 NASDAQ Adv/Vol/Dec 786/174 mln/1334 NYSE Adv/Vol/Dec 1007/94 mln/1631
09:15 am : S&P futures vs fair value: +1.60. Nasdaq futures vs fair value: +3.00. The stock market is up more than 2% for the week, but stock futures suggest that a flat-to-slightly higher start Friday is in order. The flow of earnings announcements has slowed a bit and the only economic item on the calendar -- the January jobs report -- was already released. Both nonfarm payrolls and private payrolls had smaller-than-expected increases, but the headline unemployment rate still made an unexpected drop to 9.0% from 9.4% in December. Part of that drop has been attributed to updated population estimates. The dollar has resumed its advance against competing currencies. In the prior session it posted its best percentage gain in almost one month. It is up modestly this morning, though. Action abroad has provided a generally positive backdrop to premarket trade; Europe's bourses are up modestly and Japan's Nikkei climbed more than 1% while China and Hong Kong's markets remained closed for holiday observance.
09:05 am : S&P futures vs fair value: +1.60. Nasdaq futures vs fair value: +3.50. The tone abroad has been generally positive, but gains have varied. Germany's DAX is up 0.1%. Deutsche Bank (DB) is a leader for the second straight session; the stock now trades at a five-month high on the German bourse. Automakers BMW and Volkswagen are back under pressure. France's CAC is currently up 0.2%. Saint Gobain has been a primary leader this session. Its effort has been complemented by Societe Generale and BNP Paribas, both of which have made nice rebounds from their prior session slides. Britain's FTSE is up 0.3%. Vodafone (VOD), Anglo American, and Barclays (BCS) have been driving forces behind the move. Royal Dutch Shell (RDS.A) has been a source of weakness for the second straight session; the cumulative effect of its slide in this session and in the prior session is a loss of more than 4%.
Markets in China and Hong Kong remain closed for holiday observance, but Japan's Nikkei was open for trade. The Nikkei scored a 1.1% gain. Softbank outperformed as it ascended to a 30-session high following its upwardly revised profit forecast. That helped the telecom sector swing to a 2.6% gain. Sony (SNE) also made a gain following its latest quarterly report. In merger and acquisition activity, Nippon Steel and Sumitomo Metal announced that they will combine.
08:35 am : S&P futures vs fair value: +0.50. Nasdaq futures vs fair value: +3.00. Stock futures saw some whipsaw action in the minutes surrounding the release of January nonfarm payrolls, but they have since stabilized near the neutral line. Nonfarm payrolls for January increased by 36,000, which is a far cry from the increase of 148,000 that had been expected, on average, among economists polled by Briefing.com. Private payrolls increased just 50,000, when 163,000 additions had been widely expected. Despite the smaller-than-expected increases, the headline unemployment rate fell sharply to 9.0% from 9.4% in December. The consensus among economists polled by Briefing.com had called for an unemployment rate of 9.5%. It should be noted, though, that the drop in the unemployment rate is mostly due to changes in prevailing population estimates. After all, Fed Chairman Bernanke just stated yesterday that the economic recovery hasn't been strong enough to significantly reduce unemployment.
08:05 am : S&P futures vs fair value: +0.80. Nasdaq futures vs fair value: +3.00. Stock futures have been bouncing around since the prior session's close. Their lack of direction has left them narrowly above the neutral line. The dollar is also flat after it staged a strong gain in the prior session. Listlessness comes ahead of the official January nonfarm payrolls report, which is due at the bottom of the hour. The flow of earnings announcements has slowed since yesterday, but Aetna (AET) has distinguished itself with better-than-expected results and upside guidance. Las Vegas Sands (LVS) had an upside earnings surprise, but its top line was light. UPS (UPS) had already reported its latest quarterly results earlier this week, but announced last evening an 11% increase in its quarterly dividend to $0.52 per share. As for overseas action, the tone has been generally positive, but markets in China and Hong Kong remain closed for holiday observance.
06:53 am : [BRIEFING.COM] S&P futures vs fair value: -0.30. Nasdaq futures vs fair value: +1.80.
06:53 am : Nikkei...10543.52...+112.20...+1.10%. Hang Seng...Holiday.........
http://finance.yahoo.com/marketupdate/update
5:31PM Canadian Natl Rail announces plan to buy back shares through private agreements (CNI) 68.38 +0.33 : Co announced that it intends to purchase for cancellation up to three million of its common shares pursuant to private agreements between CN and an arm's-length third-party seller. The purchases will form part of CN's 16.5-million share-repurchase program announced on Jan. 25, 2011.
5:15PM Borders receives notice regarding NYSE listing criteria (BGP) 0.39 -0.01 : Borders Group (BGP) reported that on Feb. 3, 2011, it was notified by NYSE Regulation that it was not in compliance with the continued listing standard of the New York Stock Exchange requiring a minimum average closing price of $1.00 per share over a consecutive 30 trading day period. Subject to providing required notice to the NYSE, the co is entitled to a six-month period from the date of the notification to cure this deficiency. During this period, Borders' shares would continue to be listed and traded on the NYSE, subject to its compliance with other NYSE continued listing standards.
5:00PM Holly Corp reports delay in return to planned operating levels at Navajo refinery due to weather (HOC) 52.65 +1.12 : Co announced that inclement weather has delayed its Navajo Refinery in Artesia, New Mexico from returning to planned operating levels. The Navajo Refinery experienced a plant-wide power failure late in the day on January 26, 2011 due to an interruption in power supply from its local utility. Navajo's crude rate has been reduced to ~40,000 barrels per day while plant personnel continue to work to restart certain downstream processing units. Management expects that because of the poor weather conditions, it could take at least an additional week to return to planned operating levels.
4:45PM A. O. Smith, Regal Beloit (RBC) receive request for more information from Department of Justice Regarding Sale of Motor Division (AOS) 42.80 +0.04 : A. O. Smith Corporation (AOS) and Regal Beloit Corp announced they have each received a request for additional information and documentary material from the U. S. Department of Justice regarding the sale of A. O. Smith Electrical Products Company to Regal Beloit. The request will extend the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976 as amended until 30 days after both companies have complied with the requests. The request may be subject to modifications suggested by the companies provided the Department of Justice agrees to the modifications. AOS and RBC are in the process of gathering information to respond to the requests and are working cooperatively with the Department of Justice as it reviews the proposed transaction.
4:40PM Ampco-Pittsburgh reports Q4 ($0.94) vs. $0.38 in last year's quarter; revs rose 23.5% to $82.2 mln (AP) 25.32 -0.57 :
4:38PM Energy Partners announces pricing of notes (EPL) 16.16 -0.12 : Co announced that it has priced its offering of $210.0 mln principal amount of 8.25% senior notes due 2018. The Notes will be sold to the initial purchasers at par, and will be fully and unconditionally guaranteed, jointly and severally, on an unsecured, senior basis, by certain of EPL's existing direct and indirect material subsidiaries. Jefferies & Co and BMO Capital Markets Corp. are acting as joint book-running managers for the offering.
4:30PM Bank of America Home Loans shifts resources to core mortgage operations; exits reverse mortgage origination business (BAC) 14.29 -0.14 : BAC Home Loans announced today that it will exit the reverse mortgage origination business and move the unit's operational resources into other critical areas serving customers. BAC Home Loans will continue to serve the needs of existing reverse mortgage customers and those with loans in process.
4:15PM Bank of America announces changes to resolve legacy mortgage issues and continue building the leading home lending business (BAC) 14.29 -0.14 : BAC President and Chief Executive Officer Brian Moynihan today announced changes to BAC Home Loans and Insurance that will continue the co's strong momentum in extending home mortgage credit while improving its leading mortgage modification programs for distressed homeowners and resolving legacy mortgage issues. The decision is the latest in a series of significant actions taken to resolve outstanding mortgage-related issues while solidifying the co's leading position in mortgage finance. While the review of the foreclosure process found that the underlying grounds for foreclosure decisions has been accurate, BAC implemented a series of improvements - including staffing, customer impact, and quality controls. Barbara Desoer, BAC Home Loans president, will continue building the mortgage business for BAC. Desoer is responsible for servicing loans for the more than 12 mln mortgage customers who remain current on their accounts, and for implementing the bank's strategy to be the preferred mortgage choice for its 50 mln household customers going forward. In 2010, BAC delivered $306 bln in quality mortgage lending to 1.4 mln customers. At the same time, a newly formed unit, Legacy Asset Servicing, has been established. Terry Laughlin will lead this unit and be responsible for servicing all defaulted loans, and for servicing discontinued residential mortgage products.
4:12PM Renasant announces acquisition of American Trust Bank of Roswell, Georgia; immediately accretive to Renasant's earnings per share and tangible book value (RNST) 15.83 -0.12 : Co announced that its wholly-owned subsidiary, Renasant Bank, has acquired all of the deposits, substantially all of the assets and certain other liabilities of American Trust Bank of Roswell, Georgia in a Federal Deposit Insurance Corporation assisted transaction. Renasant Bank acquired ~$145 mln of American Trust's assets and assumed approximately $230 million in liabilities. The acquisition is expected to provide a one-time gain in the first quarter of 2011, and it will be immediately accretive to Renasant's earnings per share and tangible book value.
4:08PM Bemis increases to quarterly cash dividend to $0.24 per share from $0.23 per share (BMS) 32.66 :
4:06PM Palatin Technologies reports that its exchange listing compliance plan has been accepted by the NYSE Amex; co has been granted an extension until May 26, 2011 to regain compliance (PTN) 1.19 -0.01 :
4:01PM American Apparel appointed John J. Luttrell as Executive Vice President and CFO, effective February 7, 2011 (APP) 1.12 +0.06 : The company announced that current Chief Financial Officer, Adrian Kowalewski, is being named Executive Vice President, Corporate Strategy, and that it appointed John J. Luttrell as Executive Vice President and CFO, effective February 7, 2011 Mr. Luttrell was previously Executive Vice President and CFO of Old Navy from 2007 to 2008. Prior to Old Navy, Mr. Luttrell was Executive Vice President and CFO of Wet Seal, from 2005 to 2007; and prior to that he spent approximately five years from 2001 to 2005 as CFO at Cost Plus.
4:00PM eDiets.com received notice from The NASDAQ Stock market that it does not comply with the minimum $35 million market value of listed securities requirement (DIET) 0.34 -0.01 :
3:57PM Monsanto announces USDA authorizes spring planting of Genuity Roundup Ready sugar beets (MON) 74.61 -0.22 : Co added that co and KWS SAAT AG petitioned USDA to act with interim measures so farmers could continue to grow Roundup Ready sugar beets while USDA completes an Environmental Impact Statement. "USDA's decision is a positive step for sugar beet farmers... Sugar beet farmers have been busy preparing for spring planting, waiting for USDA's guidance and hoping it would come in time for spring planting." Co states that it will carefully review the details of these interim measures for continued planting of Roundup Ready sugar beets.
3:43PM Las Vegas Sands: Following earnings, stock slips to fresh gap down lows late in the session as it breaks into the $46.00 level (LVS) 46.05 -4.22 : Would note that the 50-day ema is in this vicinity at $46.43, and the $44.00-45.00 zone below is considered supportive as well.
3:01PM Stock indices back flirting with session highs -- Dow +18, S&P +2, Nasdaq Comp +13.9 (SPY) :
2:50PM China Agritech responds to shortseller (CAGC) 10.02 +0.17 : "A number of analysts, professional investors, industry experts, and the Company's independent accountants have toured the Company's facilities in the past. The Company has never received any challenges regarding either the existence or the scale of production of its facilities. In addition, management has confirmed that the Harbin facility has never been listed for sale. The sales growth of the Company's organic fertilizers remains robust. In response to the short sellers' allegation that the Company's distribution centers are non-existent, there have already been 10 newly established distribution centers in Henan Province alone. In response to the short sellers' allegation that the Company's subsidiary YiNong does not exist, YiNong in fact is headquartered in Beijing with strong governmental support. In August 2010, the Company announced that it had entered into a strategic agreement with the Beijing Municipal Government to establish within Beijing the headquarters of its nationwide network of distribution centers. In response to the short sellers' allegation that the Company does not have a license to manufacture granular fertilizer, the government-issued production license number for China Agritech's granular fertilizers is clearly marked on each of our product's packaging..."
2:49PM Jack Henry announced that its Board of Directors has increased the quarterly cash dividend by 11% to $0.105/share (JKHY) 30.63 -0.18 :
2:44PM Tim Hortons signed a Master License Agreement with Apparel Group based in Dubai for up to 120 multi-format restaurants in markets in the Gulf Cooperation Council (THI) 41.73 +0.09 :
2:42PM NYMEX Energy Closing Prices (COMDX) : Crude oil settled lower by $1.52 to $89.03, natural gas closed lower by 2.5 cents to $4.312, heating oil fell 4.89 cents to finish at $2.7185, while RBOB gasoline ended down 6.41 cents to $2.4392 (all March contracts).
2:38PM CBOT Agriculture and Ethanol and ICE Exchange Sugar Closing Prices (COMDX) : March corn finished up 16 cents to $6.785, March wheat fell 5.25 cents to close at $8.5375, March soybeans fell 1.5 cents to close at $14.34, Feb ethanol closed up +0.07 at $2.434, while March world sugar futures closed up 0.60 cents (or 1.9%) to 32.64 cents.
2:23PM Medtronic reports an article has been published demonstrating the impact of spasticity on patients with multiple sclerosis and the benefits and underutilization of intrathecal baclofen (MDT) 39.15 +0.48 : The paper, published this week as an OnlineFirst article in Multiple Sclerosis Journal, recommends physician evaluation of ITB therapy as a treatment option for patients at all clinical stages of MS who are intolerant of or unresponsive to oral spasticity therapies.
1:53PM HearUSA files an action against Siemens (SI) Hearing Instruments (EAR) 0.51 -0.02 : Co files an action against Siemens Hearing Instruments in the Supreme Court of the State of New York. Co is seeking adjudication of a dispute between the parties concerning a claim by Siemens for an additional loan prepayment under the credit agreement of $2.3 million arising from HearUSA's sale of its Canadian assets in 2009.
1:49PM Cotton Futures Fall Limit-Down (BAL) 85.17 -1.93 : Cotton futures are pulling back further from yesterday's losses, which was primarily due to negative USDA data, causing cotton prices to fall the exchange limit of 4 cents to $1.6786/lb. Recent strength in the dollar index, which is showing gains for the third straight session of about 1.4%, is not helping either.
Yesterday, before its sell-off, cotton futures hit an all-time high of $1.8122/lb right before the USDA released its data. From that new high, cotton has now pulled back 7.4%. However, cotton is still up 24% from last month, up 20% from three months ago and up 143% YoY.
Yesterday, the USDA reported that net upland cotton sales fell 83% from the previous week and 63% from the prior 4-week average. The USDA noted that increases reported for Turkey (14,000 RB), Brazil (11,100 RB), China (7,700 RB), and Bangladesh (4,200 RB), were partially offset by decreases for Pakistan (7,300 RB) and Japan (2,600 RB). The USDA reported that exports of 426,800 RB --a marketing-year high-- were up 18% from the previous week and 42% from the prior 4-week average. The primary destinations were China (117,700 RB) and Turkey (85,700 RB).
The primary driver of the strength in cotton prices over the past year continues to be China, which is the largest producer and importer of cotton. The U.S. is the world's largest exporter of the commodity. In 2010, China imports rose 86% from the prior year on improved economic growth from the textile industry in combination with damage to the cotton crop. In 2011, China is expected to need more cotton than the country will produce, therefore keeping imports high. Meanwhile, inventory levels are at multi-year lows.
1:43PM Nasdaq Comp +12 has lagged behind S&P/Dow but finally edges above its Jan peak (QQQQ) : The Nasdaq Comp underperformed the S&P in terms of taking out it Jan peak but it has accomplished this in recent action today. However, its relative strength line vs. the S&P has yet to confirm the new high. This needs monitored going forward as previous non-confirmation have often led to at least some short term corrective trade (Click for chart).
1:36PM COMEX Metals Closing Prices (COMDX) : April gold ended lower by $3.50 to $1349.50, March silver gained 33.7 cents to finish at $29.065, while March copper ended up 3.5 cents to $4.5795.
1:34PM TransCanada Pipelines announces that its Horn River pipeline project has received regulatory approval from the National Energy Board (TRP) 38.39 +0.48 :
1:22PM Seagate Tech testing this week's previous peak and its 50 sma at 14.44 (STX) 14.43 +0.20 :
1:21PM Relative Sector Strength as Nasdaq Comp +13 breaks above Jan peak to set a new multi-year high of 2767.16 (QQQQ) : Sectors that are outperforming the S&P in recent action include: Disk Drive, Semi SMH, Software IGV, Networking IGN, Internet FDN, Materials XLB, Silver SLV, Coal KOL.
1:15PM S&P +1 and Dow +8 working back toward morning highs (SPY) :
1:12PM Nasdaq Comp +8.8 edges to fractional new session high of 2763.02 (QQQQ) : Last week's high is at 2763.64 with the Jan/multi-year (highest level since Nov 2007) at 2766.17.
1:07PM Temple-Inland announces 18% increase in quarterly dividend to $0.13 (TIN) 24.62 -0.27 :
12:43PM Networking Index -NWX- approaching Jan/40 month high (TECHX) 307.15 : Noted relative strength in the sector in early updates with the recent upside extension leaving the NWX slightly below its Jan/40 month high at 307.80 (session high 307.32). The Networking ETF (IGN) has slightly surpassed its Jan high of 36.54 (session high 36.60). The next levels of note above for the NWX are at 310 (Oct 2007 high) and 314 (July 2007 high) -- ADTN +3.7%, ALU +3.9%, ARRS +1.8%, AXE +1.1%, CIEN +10.3%, CSCO +0.7%, JNPR +2%, PLCM +0.9%, TLAB +3.7%.
12:23PM 10-yr Treasury Yield -TNX- surges to new multi-month high (TECHX) : The TNX broke out of a consolidation/triangle pattern this week and beyond the Dec high this morning to test the 3.65 level (Click for daily TNX chart).
12:03PM Energy slides to minor new session lows -- XLE, OIH, XES, XOP (XLE) :
12:01PM Silicon Labs edges back toward morning peak at 45.36 (SLAB) 45.34 +0.60 : Note that its high for the week and its 50 ema come into play at 45.48 and 45.61.
11:52AM Crude oil to fresh lows at $88.81; now off $1.63 to $88.91 (COMDX) :
11:48AM Compuware unit extends submittal window for Physician Quality Reporting Initiative revenue incentives to mid-March (CPWR) 10.92 -0.07 : Covisint, a Compuware company, announced that -- due to a high degree of customer demand and success -- it will extend its deadline for processing submittals to the Centers for Medicare & Medicaid Services (CMS) for the 2010 Physician Quality Reporting Initiative, through March 15, 2011.
11:36AM S&P -1.2 still in the red but holds/edges off support (SPY) : Noted second level support for the index at 1301/1300 in The Technical Take and have seen the index test and edge off this area this morning. This marks the 50% retracement of the push off yesterday's early low and congestion. A continued hold above keeps a favorable short term price pattern intact. Resistance above the high (1308) and Fib extension targets (1309/1310) is in the 1313/1315 area.
11:08AM Crude to fresh lows at $89.20; now off $1.24 to $89.30 (COMDX) :
10:48AM Superconductor announces $13.3 million common stock registered direct offering (SCON) 3.12 0.00 : Co announces that certain U.S.-based investors have agreed to invest $13.3 million in cash to purchase 5,443,000 million shares of co's Common Stock. Co expects to use the ~$12.4 million in net proceeds for general working capital purposes.
10:46AM Sharp reversal in crude oil; now off 20 cents to $90.34 (COMDX) :
10:40AM Miller Energy Resources appoints KPMG as new auditor (MILL) 5.00 -0.00 : Co announced that it has appointed KPMG as the Company's registered independent public accounting firm replacing Miller's previous independent public accounting firm, Sherb & Co. LLP. The Company's Audit Committee approved the change in auditor. "There were no disagreements between Miller and Sherb & Co. LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures."
10:37AM U.S. Oil Fund ETF break to fresh gap up lows as it peels back toward the $38.00 level (USO) 38.15 +0.07 : XLE, OIH
10:35AM Limited gains but dips have continued to bring in buyers -- Dow +6, S&P +1, Nasdaq Comp +7 (SPY) : Relative strength (outperforming the S&P) in: Rail (WAB +1.6%, CSX +0.9%, NSC +0.4%, UNP +0.8%, TRN +1.1%, ARII +0.4%, RAIL +0.3%, CNI +0.5%), KSU +0.4%, GWR +0.6%), Telecom IYZ, Semi SMH Internet FDN, Silver SLV.
10:32AM Widepoint and Wackenhut Services announce strategic alliance to expands the total security services Wackenhut can offer its customers; financial terms not disclosed (WYY) 1.30 :
10:29AM Simon Properties Correction: Beats Q4 FFO consensus by $0.06 (SPG) 103.48 -1.22 : Earlier we incorrectly reported Q4 FFO of $1.75, the comment has been removed and should have read as follows: Reports Q4 (Dec) funds from operations of $1.80 per share, excluding non-recurring items, $0.06 better than the Thomson Reuters consensus of $1.74. Co issues in-line guidance for FY11, sees FFO of $6.45-6.60 vs. $6.57 Thomson Reuters consensus.
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