Hi WB, Interesting market actions with making new highs at resistances which noted before, SPX 1485 +/- and Qs 45.55 +/- shown on daily charts. My market thoughts posted on the link.
Best wishes & Enjoy the day as we have nice weather.
Hi WB, Interesting market actions with making new highs at resistances which noted before, SPX 1485 +/- and Qs 45.55 +/- shown on daily charts. My market thoughts posted on the link.
Best wishes & Enjoy the day as we have nice weather.
4:20 pm : Stocks closed modestly lower Tuesday as a market ripe for a pullback lacked the overwhelming evidence necessary to extend recent market gains.
With the Dow closing at record highs over the previous three sessions and garnering its entire 4% year-to-date advance over the last three weeks, it wasn't surprising to see investors take some money off the table. The Dow came within 16 points of hitting the 13,000 milestone earlier in the day, getting a lift from analyst upgrades on IBM (IBM 95.27 +0.69) and Caterpillar (CAT 71.85 +0.03), two of the price-weighted index's most expensive names.
However, valuation concerns that prompted analyst downgrades on ExxonMobil (XOM 79.24 -0.52) and Pfizer (PFE 26.35 -0.62), coupled with an afternoon sell-off in fellow Dow component General Motors (GM 30.68 -1.00), pushed the Dow into the red for good. GM's Vice Chairman Bob Lutz said there has been some spillover of the mortgage industry meltdown into the auto business, giving investors another reason to question the sustainability of the market's recent run-up.
As if valuations weren't already posing a concern, oil prices surging 2.6% and flirting with $66/bbl acted as an additional headwind for the bulls. Crude for June delivery closed at $65.77/bbl amid potential supply disruptions from Nigeria following its presidential elections over the weekend. Oil's rise did lure investors into energy names; but ExxonMobil's substantial influence on the sector offset gains in everything from Drillers to Refiners.
Other news getting overshadowed Monday was another wave of M&A. Barclays PLC (BCS 58.27 -1.73) finally unveiled a proposal to acquire ABN Amro NV (ABN 48.16 -1.13) for $91 bln while AstraZeneca PLC (AZN 56.00 -3.04) said it will buy MedImmune (MEDI 56.57 +8.56) for $15.6 bln.
While both deals offered some reassurance that companies remain confident about the business climate, the fact that Friday's rally was fueled in part by anticipation Monday would bring another round of supportive M&A activity, and that both deals had been rumored for weeks, resulted in a muted response from investors. As a reminder, MedImmune said it was exploring strategic alternatives on April 12 while Barclays confirmed talks with ABN Amro over a potential blockbuster merger in March.
The absence of leadership from Financials and Technology, which only trailed Telecom as today's worst performing sectors, were among the biggest reasons behind the market taking a breather. Better than expected earnings from both sectors last week were among the catalysts for the market's outperformance.
Utilities was the only sector that finished in positive territory; but a 0.7% advance on one of the S&P 500's least influential sectors, and an area defensive in nature no less, merely underscored the hesitation on the part of buyers Monday. BTK +1.5% DJ30 -42.58 DJTA -0.9% DJUA +0.6% DOT -0.1% NASDAQ -2.72 NQ100 +0.2% R2K -0.2% SOX -0.7% SP400 +0.2% SP500 -3.42 XOI +0.1% NASDAQ Dec/Adv/Vol 1766/1294/1.93 bln NYSE Dec/Adv/Vol 1718/1551/1.38 bln
3:30 pm : With only 30 minutes left in the trading day, the Dow runs the risk of having its seven-day winning streak snapped; 21 of its 30 components are trading lower. The S&P 500, which closed Friday less than 44 points away from the all-time high reached in March 2000, is also on pace to closed modestly lower.
The Nasdaq, meanwhile, is showing signs of improvement going into the close but is also erring on the side of caution as tech investors await an earnings report from Texas Instruments (TXN 32.49 -0.01) after the bell to shed some light on the sector's growth prospects, especially after TI tightened its guidance in March. Of the 18 components that make up the PHLX Semiconductor Sector Index, 13 are trading lower (e.g. INTC -1.0%, MRVL -4.1%, AMAT -1.4%, BRCM -1.0%). DJ30 -23.72 NASDAQ -1.47 SOX -0.7% SP500 -1.50 NASDAQ Dec/Adv/Vol 1770/1269/1.59 bln NYSE Dec/Adv/Vol 1719/1505/1.10 bln
3:00 pm : The major averages are bouncing off their worst levels of the afternoon but buyers' last ditch efforts to cut their losses aren't amounting to all that much. Not only are the most influential of S&P 500 sectors also among today's biggest laggards, but below average volume merely underscores the lack of confidence the bulls have in sustaining a late-day push to at least get the indices closer to break even for the day.
With only an hour left in the session, the NYSE still hasn't seen more than 1.0 bln shares trade hands. Industrials and Utilities are the only sectors in positive territory while Financials and Technology are only trailing Telecom as today's worst performing sectors. DJ30 -31.81 NASDAQ -3.92 SP500 -2.88 NASDAQ Dec/Adv/Vol 1766/1256/1.46 bln NYSE Dec/Adv/Vol 1740/1478/992 mln
2:30 pm : As reflected by the Financials sector (-0.5%) now turning in the day's second worst performance, it is becoming apparent that worries tied to subprime mortgage misfortunes have not gone away by any means. Not surprising, Thrifts & Mortgage (e.g. CFC -3.2%, WM -1.2%, SOV -1.1%, MTG -1.5%), one of this year's biggest disappointments (-5.3%), now ranks among the sector's worst performers.
Financials was already under some pressure from Bank of America (BAC 50.40 -0.64), the sector's second most heavily-weighted component which is now down 1.2%. Shareholders are questioning the near-term costs associated with B of A's proposed $21 bln cash offer for ABN Amro's (ABN 48.00 -1.29) LaSalle Bank unit. DJ30 -40.14 NASDAQ -5.91 SP500 -3.95 NASDAQ Dec/Adv/Vol 1786/1220/1.38 bln NYSE Dec/Adv/Vol 1753/1462/932 mln
2:00 pm : The market's recent recovery attempts have been short lived as a renewed wave of selling interest knocks the indices to session lows. Health Care turning negative within the last 20 minutes has removed leadership from the S&P 500's third most influential sector. Drug stocks (DRG -1.2%) remain the sector's Achilles' heel, led by the downgrade on Pfizer (PFE 26.40 -0.57), while fellow Dow component General Motors (GM 31.43 -0.25) spiking to session lows has contributed to further deterioration on the index and in the Discretionary sector.
GM's Vice Chairman Bob Lutz recently saying there has been some spillover of the mortgage industry meltdown into the auto business has given investors another reason to question the sustainability of recent gains and is actually having more of an impact on overall sentiment than GM shares in general so far.DJ30 -29.58 NASDAQ -5.76 SP500 -3.03 NASDAQ Dec/Adv/Vol 1720/1259/1.27 bln NYSE Dec/Adv/Vol 1639/1569/840 mln
1:30 pm : Absent a catalyst throughout most of the session, stocks have finally got a lift from, of all things, rising oil prices. Crude for June delivery is now up 1.9% near $65.30/bbl, amid more reports of violence in Nigeria, helping the Energy sector turn positive and lift the indices back into the green.
Energy's leadership, though, has not nearly been enough to make a significant change in the standings, let alone improve overall sentiment since higher energy prices have been cited by the Fed as having the potential to sustain inflation pressures. In fact, the indices are pulling back almost as quickly as they turned the corner. DJ30 +1.80 NASDAQ +0.81 SP500 +0.22 NASDAQ Dec/Adv/Vol 1635/1337/1.16 bln NYSE Dec/Adv/Vol 1535/1632/760 mln
1:00 pm : Not much has changed since the last update as traders continue to cautiously make their way through the New York lunch hour lacking the evidence necessary to extend recent market gains. While the Dow did get to within 16 points of hitting the 13,000 milestone earlier, the fact that advancers and decliners on the blue-chip index remain evenly matched further underscores the lack of conviction from either buyers or sellers.
Pfizer's (PFE 26.40 -0.57) downgrade-induced 2.1% decline paces the way among the laggards while IBM (IBM 95.23 +0.65), after it was upgraded, is among the price-weighted index's best performers; but its modest 0.7% gain only accounts for about 5 Dow points. DJ30 -1.14 NASDAQ -0.39 SP500 -0.40 NASDAQ Dec/Adv/Vol 1627/1334/1.05 bln NYSE Dec/Adv/Vol 1547/1621/690 mln
12:30 pm : All three indices are now in negative territory, spearheaded in part by a reversal in the Energy sector (-0.1%). Even though oil prices continue to trade near session highs, up 0.8% near $64.60/bbl, the sector's three biggest components -- Exxon Mobil (XOM 79.58 -0.18), Chevron (CVX 78.06 -0.39), ConocoPhillips (COP 71.02 +0.23), recently turning negative removes some influential leadership.
All three, which combined account for nearly 44% of the Energy sector's total weighting, were downgraded this morning and have relinquished what little gains they were enjoying earlier to keep a bid in the overall sectorDJ30 -2.60 NASDAQ -1.10 SOX -0.6% SP500 -0.39 NASDAQ Dec/Adv/Vol 1589/1343/960 mln NYSE Dec/Adv/Vol 1488/1634/608 mln
12:00 pm : The major averages are taking a breather midday as big M&A news fails to sideline concerns that stocks are overbought after such a huge run-up of late.
With the Dow in record territory, garnering its entire 4% year-to-date advance over the last three weeks while posting gains in 15 of the last 16 sessions, it hasn't been overly shocking to see investors feel tempted to take some money off the table, especially with valuation concerns prompting analyst downgrades on components ExxonMobil (XOM 79.75 -0.01) and Pfizer (PFE 26.46 -0.50).
On a positive note, investors have sifted through some M&A activity. Barclays PLC (BCS 58.78 -1.22) finally unveiled a proposal to acquire ABN Amro NV (ABN 48.49 -0.80) for $91 bln while AstraZeneca PLC (AZN 56.63 -2.40) said it will buy MedImmune (MEDI 56.59 +8.58) for $15.6 bln. While both deals signal that companies remain confident about the business climate, the realization that Friday's rally was fueled in part by anticipation Monday would again bring another round of supportive M&A activity, and that both deals have been rumored for weeks, has resulted in a muted response from investors.
On the earnings front, the bulk of today's reports checked in better than analysts' consensus estimates; however, none of the companies out this morning carry the market-moving potential that nearly half of the Dow 30 out with results last week did to lift the blue-chip index 2.8%. DJ30 -1.87 NASDAQ +0.98 SP500 -0.14 NASDAQ Dec/Adv/Vol 1574/1315/850 mln NYSE Dec/Adv/Vol 1400/1696/530 mln
11:30 am : The indices continue to cling to the smallest of gains as there is still a lack of conviction on the part of buyers. Three influential sectors recently slipping into negative territory removes some key support, leaving industry leadership on the S&P 500 now evenly matched.
The reversal in Financials is the most notable since it carries a nearly 22% weighting on the S&P 500 while Staples and Discretionary have followed suit below the flat line. Fortunately for the bulls, their losses are minimal in scope, leaving just enough room for respectable gains in the Industrials and Energy sectors to keep the major averages trading slightly better than unchanged. DJ30 +1.06 NASDAQ +2.40 SP500 +0.75 NASDAQ Dec/Adv/Vol 1530/1318/718 mln NYSE Dec/Adv/Vol 1394/1640/450 mln
11:00 am : Stocks continue to look a bit fatigued following last week's impressive rally. As if valuations weren't already posing a concern, oil prices recently hitting fresh session highs are acting as an additional headwind for the bulls. Crude for June delivery is now up 1.0% near $64.80/bbl amid potential supply disruptions from Nigeria following its presidential elections over the weekend.
The Energy sector (+0.6%) is trading at its best levels of the session and acting as somewhat of an offset to the commodity's potential inflationary characteristics. However, analyst downgrades on the sector's three biggest components -- Exxon Mobil (XOM 79.89 +0.13), Chevron (CVX 78.59 +0.14), ConocoPhillips (COP 71.40 +0.15) -- are keeping a lid on a more convincing sector advance. DJ30 +3.71 NASDAQ +1.54 SP500 +1.40 XOI +0.8% NASDAQ Dec/Adv/Vol 1458/1344/574 mln NYSE Dec/Adv/Vol 1306/1689/350 mln
10:30 am : As is typically the case for a Monday morning, investors are sifting through some M&A news. Barclays PLC (BCS 58.74 -1.26) has finally unveiled a proposal to acquire ABN Amro NV (ABN 48.49 -0.79) for $91 bln, which also involves selling ABN's LaSalle Bank unit to Bank of America (BAC 50.76 -0.28) for $21 bln in cash. Biotech is also in focus after AstraZeneca PLC (AZN 56.58 -2.46) said it will buy MedImmune (MEDI 56.60 +8.59) for $15.6 bln.
While one might think two transactions of such magnitude would create a buying frenzy in stocks, the tepid response by the overall market isn't too surprising since both deals have been rumored for weeks. MedImmune confirmed it was exploring strategic alternatives on April 12 while Barclays confirmed talks with ABN Amro over a potential blockbuster merger on March 26. BTK +1.6% DJ30 +8.94 NASDAQ +1.75 SP500 +1.62 NASDAQ Dec/Adv/Vol 1336/1364/406 mln NYSE Dec/Adv/Vol 1271/1634/230 mln
10:00 am : Buyers show some resolve since the opening bell, but only enough to inch the major averages above the flat line. Of the seven economic sectors now in positive territory, Industrials is providing the bulk of early leadership following an analyst upgrade on Dow component Caterpillar (CAT 72.50 +0.68). The Materials and Utilities sectors are turning in comparable gains of 0.4%.
However, as the two least influential areas on the S&P 500, the absence of leadership from more influential sectors like Technology and Health Care is overshadowing their outperformance. The latter two sectors will be in focus all day as investors await earnings reports from Amgen (AMGN 62.01 +0.04) and Texas Instruments (TXN 32.59 +0.09) after the bell. DJ30 +11.22 NASDAQ +2.44 SOX -0.3% SP500 +1.89 NASDAQ Dec/Adv/Vol 1215/1311/180 mln NYSE Dec/Adv/Vol 1320/1283/70 mln
09:40 am : Stocks open with little fanfare as investors lack overwhelming evidence to support stock prices after three weeks of gains. With the Dow in record territory, closing less than 40 points away from 13,000, and up 15 of the last 16 sessions, it's not surprising to see it pullback in early trading, especially with valuation concerns prompting analyst downgrades on ExxonMobil (XOM 79.43 -0.33) and Pfizer (PFE 26.70 -0.27).
Their declines are offsetting an upgrade on fellow Dow component IBM (IBM 95.25 +0.67); but market losses are minimal in scope, certainly not ruling out the possibility that buyers will regroup to keep the market's underlying bullish sentiment intact.DJ30 -9.83 NASDAQ -1.92 SP500 -1.38 NASDAQ Vol 86 mln NYSE Vol 42 mln
09:15 am : S&P futures vs fair value: -0.6. Nasdaq futures vs fair value: +1.5.
09:00 am : S&P futures vs fair value: -0.2. Nasdaq futures vs fair value: +1.8. Early indications continue to suggest last week's huge run-up will run into some headwinds at the onset of trading. As a reminder, the Dow surged 2.8% to record highs last week while the S&P 500 and Nasdaq hit six-year highs logging respective gains of 2.2% and 1.4%.
It is also worth noting that, while the majority of earnings reports continue to exceed Wall Street expectations, that is typical since analysts always tend to forecast a bit on the light side, leaving room for surprises. The fact that the stock market has responded well to what was pegged as an uninspiring earnings season says more about underlying sentiment than anything overwhelmingly positive about the actual reports.
08:30 am : S&P futures vs fair value: +0.1. Nasdaq futures vs fair value: +2.0. With better than expected earnings reports playing an integral part in the market's recent gains, especially the Dow's push into unchartered territory, the absence of any notable economic data this morning is placing even more emphasis on earnings and guidance.
Fortunately for the bulls, the bulk of today's reports have also checked in better than analysts' consensus estimates; however, none of this morning's companies carrying the market-moving potential that nearly half of the Dow 30 did last week leaves some questioning the sustainability of last week's rally.
08:00 am : S&P futures vs fair value: +0.6. Nasdaq futures vs fair value: +2.8. Per usual for a Monday morning, investors are sifting through some M&A news. Barclays PLC (BCS) has confirmed it will acquire ABN Amro NV (ABN) for $91 bln, selling ABN's LaSalle Bank unit to Bank of America (BAC) for $21 bln. AstraZeneca PLC (AZN) said it will buy MedImmune (MEDI) for $15.6 bln.
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