4:20 pm : Evidently buyers were still hungry to own stocks Tuesday as investors built on a broad-based rally a day earlier that was predicated in part on hopes that tomorrow's Fed statement will reflect a more accommodative policy stance.
Investors also embraced an added sense of stability in overseas markets, as the Bank of Japan leaving rates unchanged at 0.5% eased concerns tied to the unwinding of the carry trade.
Good overall housing data, more M&A news, and relief in the troubled subprime mortgage space also helped the bulls extend Monday's sizable gains.
After plunging 14% to a 10-year low in January, housing starts rebounded in February with a 9% rise to a 1.525 mln annual rate. Building permits, a sign of future construction, fell for the 12th time in 13 months, which investors felt will help with the housing inventory glut. It is worth noting, though, that while the volatile data overall eased the worst of fears about a housing market crash, the lack of a clear sign of a bottom didn't exactly provide overwhelming conviction that the Fed's impending statement will reflect the more balanced policy stance investors began pricing into the market yesterday.
As evidenced by the S&P 500 turning in a better performance than the Dow and Nasdaq, it's not surprising to see just how big of an impact more bargain-hunting interest throughout the beaten-down Financials sector had on the day's action. Another round of M&A activity helped the brokerage group build on yesterday's 1.6% advance. Citigroup (C 50.64 +0.58), whose Global Markets unit is funding the $8.2 bln buyout of Affiliated Computer Services (ACS 59.97 +8.68), rose 1.2%.
Accredited Home Lenders (LEND 10.77 +1.82) receiving a commitment for a $200 mln term loan from Farallon Capital helped silence concerns about the subprime mortgage misfortunes potentially spilling over into the broader economy. Insurance companies got a lift after Bear Stearns upgraded the group on valuation.
Of the other nine sectors trading higher, Utilities actually turned in the best performance as its defensive characteristics became attractive as a hedge against tomorrow's Fed directive possibly piquing concerns about the pace of economic growth. DJ30 +61.93 NASDAQ +13.80 SP500 +8.88 NASDAQ Dec/Adv/Vol 1078/1937/1.67 bln NYSE Dec/Adv/Vol 957/2321/1.33 bln
3:30 pm : Stocks are extending their reach to the upside going into the close as sellers begin to run for cover. Technology bouncing off its afternoon lows, as Application Software (+1.3%) breaks into today's top ten performing industry groups on the S&P 500, is giving the market a noticeable lift.
However, it is worth noting that Utilities (+1.1%) and Consumer Staples (+0.8%) are now the best performing sectors today. The absence of specific news to account for their outperformance leads one to believe that their defensive characteristics are attracting buyers as investors hedge their bets ahead of the Fed possibly piquing concerns about the pace of economic growth.
3:00 pm : More of the same for stocks as the indices remain mired in relatively tight trading ranges heading into the final of trading. As evidenced by modest market gains, it's increasingly evident investors are expecting a friendlier Fed policy statement tomorrow that weighs the economic risks as being equal to the risks of inflation.
However, a change in the policy statement would have to present a bias towards easing to provide a real boost to the stock market. We expect at best a balanced statement that doesn't provide the fuel for a sustainable rally since any change to the directive's wording is now partly priced into the market. DJ30 +43.50 NASDAQ +9.43 SP500 +6.27 NASDAQ Dec/Adv/Vol 1191/1773/1.28 bln NYSE Dec/Adv/Vol 1088/2127/1.00 bln
2:30 pm : The market is bouncing off its afternoon lows, as buyers show some resolve within the last 30 minutes. A turnaround in the Energy sector is now adding to the floor of support instituted primarily by Financials.
Other sectors providing notable leadership include Health Care, Consumer Discretionary, and Consumer Staples, which are up 0.6% on average. Technology is still trading higher but is well off its best levels, which is why the Nasdaq is no longer outpacing its blue-chip counterparts to the upside. DJ30 +46.15 NASDAQ +9.62 SP500 +6.48 NASDAQ Dec/Adv/Vol 1135/1822/1.18 bln NYSE Dec/Adv/Vol 1114/2094/926 mln
2:00 pm : The major averages are still sporting respectable gains but a renewed wave of selling interest since the last update leaves stocks retracing morning lows. After such a huge run-up across the board yesterday, it's not shocking to see the temptation creep back to take some money off the table.
Throw in the uneasiness that typically presages a Fed policy decision and stocks relinquishing all of their intraday gains would not be a huge surprise since there are no expectations whatsoever that the Fed will lower interest rates tomorrow and there's still an underlying risk the FOMC policy directive will reflect a bias towards further rate hikes. DJ30 +36.58 NASDAQ +7.73 SP500 +4.73 NASDAQ Dec/Adv/Vol 1119/1810/1.08 bln NYSE Dec/Adv/Vol 1094/2097/846 mln
1:30 pm : Not much has changed since the last update as the major averages continue to vacillate in roughly the same ranges. Nine out of 10 sectors are still trading higher, led by strength across the board in the most influential of them all -- Financials.
However, it is worth noting that below average volume similar to yesterday lends less conviction behind another broad-based move to the upside that currently leaves the S&P 500 enjoying its biggest two-day gain since August. Neither the NYSE nor the Nasdaq have exceeded 1.0 bln shares. DJ30 +49.11 NASDAQ +13.88 SP500 +6.96 NASDAQ Dec/Adv/Vol 1051/1881/976 mln NYSE Dec/Adv/Vol 947/2224/750 mln
1:00 pm : The indices continue to trade near session highs, as buying remains widespread across most areas. However, recent momentum has stalled as the Energy sector turns negative.
Energy has recently slipped into the red in sympathy with a sharp 6.0% reversal in Halliburton (HAL 30.50 -1.90), which guided Q1 earnings below Wall Street expectations within the last 30 minutes. Oil & Gas Equipment (-2.0%) is now the day's worst performing S&P industry group. DJ30 +46.63 NASDAQ +14.57 SP500 +7.42 NASDAQ Dec/Adv/Vol 1039/1864/884 mln NYSE Dec/Adv/Vol 940/2210/660 mln
12:30 pm : Stocks continue to edge higher as the afternoon session gets underway. Financials (+0.9%) has now surpassed Technology (+0.7%) as the day's best performing sector, which is now providing some very influential leadership. Citigroup (C 50.65 +0.59), which is funding the $8.2 bln leveraged buyout of Affiliated Computer Services (ACS 59.86 +8.57), is now up 1.2% as one of the day's best performing Dow components.
More relief in the troubled subprime mortgage space, after Accredited Home Lenders (LEND 10.82 +1.87) received a commitment for a $200 mln term loan from Farallon Capital, and Bear Stearns upgrading the Insurance Sector to Market Weight based on valuation, are also providing some sector support. DJ30 +44.22 NASDAQ +14.81 SP500 +7.65 NASDAQ Dec/Adv/Vol 1056/1805/792 mln NYSE Dec/Adv/Vol 963/2147/570 mln
12:00 pm : The indices are trading higher midday but gains are modest at best as investors continue to question what impact today's housing data will have (if any) on the Fed's upcoming policy decision tomorrow.
After plunging 14% to a 10-year low in January, housing starts rebounded in February with a 9% rise to a 1.525 mln annual rate. Building permits, a sign of future construction, fell for the 12th time in 13 months, which will help with the inventory problem and is contributing to the bid in Treasuries.
While the reports overall are comforting, easing the worst of fears about a housing market crash, no clear sign of a bottom hasn't exactly offered overwhelming conviction that the Fed's impending statement will reflect the more accommodative policy stance investors were pricing into the market Monday.
With regard to industry leadership, all 10 S&P sectors are trading higher. Technology is providing the bulk of early leadership, getting a boost from analyst upgrades on SanDisk (SNDK 41.79 +1.80) and Juniper Networks (JNPR 18.69 +0.72). Some M&A news, which in turn is helping brokerage stocks extend recent gains and provide Financials with some notable leadership, is also offering some support for Technology. Affiliated Computer Services (ACS 60.04 +8.75) has agreed to go private in an $8.2 bln deal. Oracle Corp (ORCL 17.55 +0.37) surging 2.2% ahead of its Q3 report tonight is also lending some reassurance about the earnings potential of a tech sector expected to be among the largest contributors to profit growth on the S&P 500 this year. DJ30 +33.72 NASDAQ +11.15 SP500 +5.44 NASDAQ Dec/Adv/Vol 1173/1660/680 mln NYSE Dec/Adv/Vol 1156/1922/480 mln
11:30 am : The indices are extending their reach to the upside as all 10 sectors are now in positive territory. Technology and Financials still chipping away at their year-to-date declines are providing the biggest lift to the market's recent uptick.
Rate-sensitive banks are benefiting from falling bonds yields while more M&A news is helping the brokerage group build on yesterday's 1.6% advance. Speaking of, tech giant Motorola (MOT 18.83 +0.54) is surging 3.0% after reports that its CEO recently pulled out of keynote speech at the CTIA conference raised speculation that something is going on with the company. Currently rumored as a potential bidder for Palm Inc (PALM 19.02 +0.88), Motorola has also been viewed by some as a takeover candidate itself. DJ30 +27.88 NASDAQ +9.89 SP500 +4.30 NASDAQ Dec/Adv/Vol 1096/1711/572 mln NYSE Dec/Adv/Vol 1091/1937/400 mln
11:00 am : Stocks have rebounded a bit within the last 30 minutes, spearheaded by turnarounds in Health Care and Industrials, but not nearly enough to make a significant change in the standings.
Sure, all three major indices have recently hit intraday highs, but minimal market gains remain subject to more consolidation as investors continue to err on the side of caution ahead of tomorrow's Fed decision and accompanying policy directive. DJ30 +11.59 NASDAQ +7.78 SP500 +2.55 NASDAQ Dec/Adv/Vol 1186/1537/428 mln NYSE Dec/Adv/Vol 1309/1671/300 mln
10:30 am : The indices are now trading in split fashion as buyers continue to lack the necessary catalysts to fend off sellers following yesterday's broad-based rally. As evidenced by the Nasdaq currently earmarked as the only major index in positive territory, Technology is providing some notable leadership.
Data Processing & Outsourcing Services (+1.4%) is today's best performing S&P industry group following reports that Affiliated Computer Services (ACS 60.00 +8.71) will go private in an $8.2 bln deal. Strong gains of 4% from SanDisk (SNDK 41.51 +1.52) and Juniper Networks (JNPR 18.69 +0.72), after both were upgraded, are also sources of sector support and the best performers on the Nasdaq 100.DJ30 -7.05 NASDAQ +2.71 SP500 -0.21 NASDAQ Dec/Adv/Vol 1307/1332/310 mln NYSE Dec/Adv/Vol 1410/1485/204 mln
10:00 am : Equities are still on the offensive, but barely, as the indices continue to vacillate just above the unchanged mark. While six out of 10 sectors are trading higher, Materials is turning in the best performance; but its gain is modest at best (+0.2%) and, since it ranks as the least influential of the S&P 500 sectors with only 3.0% weighting, the broader market is not taking notice.
Consumer Discretionary is posting a similarly paltry advance; but that's due in large part to bargain hunters using the housing data as a springboard to jump back into this year's second worst performing S&P industry group, Homebuilders. Energy, Industrials, Telecom and Utilities are trading slightly lower. DJ30 +5.13 NASDAQ +2.66 SP500 +0.97 NASDAQ Dec/Adv/Vol 1269/1180/140 mln NYSE Dec/Adv/Vol 1305/1340/66 mln
09:40 am : Stocks open with little fanfare as investors question what impact today's housing data will have (if any) on the Fed's upcoming policy decision tomorrow. After plunging 14% in January to a 10-year low, housing starts rebounded in February with a 9% rise to a 1.525 mln annual rate.
While that is very comforting news, as the worst of fears about a housing market crash have eased, the market remains more concerned as to whether policy makers will soften their bias against inflation; and so far today's data have not offered convincing evidence that such a revision is likely.DJ30 +3.45 NASDAQ +1.40 SP500 +0.76 NASDAQ Vol 78 mln NYSE Vol 42 mln
09:15 am : S&P futures vs fair value: +0.5. Nasdaq futures vs fair value: +2.0.
09:00 am : S&P futures vs fair value: +0.5. Nasdaq future
Market Data 
Markets 
AI
