Market Update 071129 http://biz.yahoo.com/mu/update.html 4:15 pm : In the wake of the massive two-day rally, the major indices showed a striking resilience to profit-taking efforts as they finished slightly higher on Thursday after being down in early-trading. This is an encouraging sign to market bulls considering gains were made in the face of some weak economic data and a few disappointing earnings reports.
The S&P 500 Retailing Index (-0.7%) was under pressure today as several retailers failed to live up to earnings expectations. Notably, Sears Holding (SHLD 104.09, -12.25) posted a third quarter profit of $0.01 per share, marking a whopping 99% drop in earnings compared to a year-ago. Shares plummeted 10%.
E*Trade (ETFC 4.82, -0.46) gained more than 10% in early trading following news of a $2.5 billion capital infusion from Citadel Investment Group. The stock, however, failed to build on the opening gains and actually ended the day noticeably lower. Presumably, the lack of follow through on early buying efforts prompted momentum accounts, which had bought the stock on speculation about a possible deal, to lock in profits.
Of the four sectors that traded lower, the financial sector (-0.7%) was the main laggard. A bit of a pullback, though, was expected considering financials were up roughly 8% in the last two sessions.
The telecom sector (+1.1%) managed to post the highest gain. The energy sector (+1.0%) also provided leadership, although it finished well off its session high as crude oil was unable to hold its gains.
January crude oil ( +$0.44 to $91.05) traded in a volatile manner following word overnight that an explosion cut Canadian oil shipments through four pipelines in Minnesota that supply crude to the Midwest. After spiking more than $4.00 per barrel, prices pulled back on news that two pipelines were reopened and the remaining pipelines will be reopened within a few days.
There were several economic reports released, although the market's response was mostly muted.
Initial jobless claims for the week ended Nov. 24 rose to 352,000 from 329,000 the week before. This is just one week of data in what can be a volatile series, but it bears watching to see if an uptrend develops.
Third quarter real GDP was revised upward to a very strong 4.9% annual growth rate from a previously reported 3.9%. This was in-line with expectations. On a related note, Dow Jones reports the White House raised its 2007 U.S. GDP forecast to 2.7% versus 2.3% and cut its 2008 U.S. GDP forecast to 2.7% versus 3.1%.
New home sales for October rose 1.5%, but only because the September level was revised sharply lower. At an annual rate of 728,000, sales were below expectations of about 750,000. The median price of a new home sold dropped a very steep 13%. The housing industry remains in a deep slump that will continue for a while. DJ30 +22.28 NASDAQ +5.22 SP500 +.70 NASDAQ Dec/Adv/Vol 1629/1366/2.17 bln NYSE Dec/Adv/Vol 1784/1474/1.33 bln
3:30 pm : Heading into the final half-hour of trading, the major indices continue to cling to the unchanged mark. Market volatility is slightly lower today as indicated by the 1.1% decline in the VIX.
After the close, eight companies are confirmed to report earnings, including Dell (DELL 28.34, +0.65).
Tomorrow before the open, October core-PCE Inflation, Personal Income and Personal Spending will all be released at 8:30ET.DJ30 +16.26 NASDAQ +4.02 SP500 -0.10 NASDAQ Dec/Adv/Vol 1583/1354/1.77 bln NYSE Dec/Adv/Vol 1791/1451/967 mln
3:00 pm : The major indices continue to trade near the unchanged mark. Stocks making new lows outpace those making new highs by 7-to-3.
There are no more economic reports slated for release today, but there are two Federal Reserve officials speaking after the close. The market is awaiting Fed Governor Mishkin's speech on Fed communications at 16:30 ET, and Chairman Bernanke's speech on U.S. regional economies at 19:00 ET.DJ30 +15.37 NASDAQ +4.19 SP500 -0.19 NASDAQ Dec/Adv/Vol 1627/1304/1.61 bln NYSE Dec/Adv/Vol 1900/1330/904 mln
2:30 pm : Much of the same as the indices vacillate near the unchanged mark, although some slight gains have been made.
The financial sector continues to be the main laggard. Of the 18 industry groups posting a loss, the weakest are investment banks (-2.0%) and regional banks (-2.0%). The only group in the green is thrifts & mortgages (+0.1%).
Decliners at the NYSE lead by a 19-to-13 margin, while at the Nasdaq decliners lead by a 17-to-12 margin. DJ30 +20.98 NASDAQ +1.75 SP500 -0.11 NASDAQ Dec/Adv/Vol 1675/1256/1.49 bln NYSE Dec/Adv/Vol 1966/1251/823
2:00 pm : The stock market trades in a choppy manner, as it is now back on the rise. Bonds continue to have a strong day. The 10-year note is up more than a full point to yield 3.91%.
Morgan Stanley's (MS 52.13, -1.37) fourth quarter earnings estimates are cut at Credit Suisse. Credit Suisse says broadly weaker fixed income market conditions, compounded by a dearth of trading and new issue activity, and declines in investment banking activity now translate to a fourth quarter net loss of $0.30 per share for Morgan Stanley versus prior estimates of earnings of $0.20 (consensus is at $0.04.)DJ30 +1.22 NASDAQ -2.90 SP500 -2.08 NASDAQ Dec/Adv/Vol 1669/1241/1.33 bln NYSE Dec/Adv/Vol 1853/1357/735 mln
1:30 pm : The stock market dips again, but losses are modest. There has not been any market-moving news items in the past hour.
The small-cap Russell 2000 Index is underperforming its large-cap counterparts. Despite the recent rallies, the index is still down 2.2% year-to-date at yesterday's closing price. DJ30 -14.22 NASDAQ -7.11 R2K -0.7% SP500 -3.72 NASDAQ Dec/Adv/Vol 1627/1267/1.25 bln NYSE Dec/Adv/Vol 1823/1359/662 mln
1:00 pm : The major indices slide a bit. The stock market is now trading in the red, but remains very close to the unchanged mark. Compared to the last few sessions, today's trading range has been very tight.
Released this morning, RealtyTrac said foreclosure activity increased 2% in October, which translates to a large 94% jump year-over-year. The Foreclosure Market Report shows a total of 224,451 foreclosure filings were reported during the month. The national foreclosure rate for October was one foreclosure filing for every 555 households. DJ30 -6.34 NASDAQ -3.28 SP500 -2.25 NASDAQ Dec/Adv/Vol 1536/1318/1.12 bln NYSE Dec/Adv/Vol 1660/1507/602 mln
12:35 pm : The stock market pulls back a bit as it hovers slightly above the unchanged mark. All of the defensive oriented sectors are posting gains.
19 of the 30 Dow components are trading higher. Altria (MO 75.74, +1.65) and Exxon Mobil (XOM 89.07, +1.15) are providing leadership. American Express (AXP 55.98, -0.43) and Honeywell (HON 55.16, -0.42) are the main laggards.DJ30 +23.98 NASDAQ +4.26 SP500 +1.19 NASDAQ Dec/Adv/Vol 1492/1331/1.01 bln NYSE Dec/Adv/Vol 1542/1611/538 mln
12:00 pm : After spending most of the early-going in the red, the major indices have showed striking resilience to profit taking efforts as they trade modestly above the unchanged mark. The lack of a pullback is especially impressive as it comes in the face of the massive two-day rally where the Dow, Nasdaq and S&P rallied 4.3%, 4.8% and 4.4%, respectively.
Shares of E*Trade (ETFC 5.49, +0.21) are outperforming after the company announced that it will be receiving a $2.5 billion cash infusion from Citadel Investment Group and that its CEO is stepping down. The stock was up as much as 25% in pre-market trading, but waned as investors realized $1.6 billion of capital was in exchange for 12.5% senior unsecured notes and common stock.
Sears Holdings (SHLD 101.12, -15.22) posted a third quarter profit of $0.01 per share, marking a whopping 99% drop in earnings compared to a year-ago. Shares have plummeted 15%.
On the economic front, initial jobless claims for the week ended Nov. 24 rose to 352,000 from 329,000 the week before. This is a volatile series, but a close eye will be kept to see if an upward trend develops.
Third quarter real GDP was revised upward to a very strong 4.9% annual growth rate from a previously reported 3.9%. This was in-line with expectations. On a related note, Dow Jones reports the White House raised its 2007 U.S. GDP forecast to 2.7% versus 2.3% and cut its 2008 U.S. GDP forecast to 2.7% versus 3.1%.
New home sales for October rose 1.5%. At an annual rate of 728,000, sales were below expectations of about 750,000. The number was only up because the September level was revised sharply lower from an original report of 770,000 to 716,000. The median price of a new home sold dropped a very steep 13%. The housing industry remains in a deep slump that will continue for a while.
Crude oil has traded in a volatile manner after an explosion in Minnesota shut down four pipelines. After spiking more than $4.00 per barrel, prices pulled back on news that two pipelines were reopened. Crude oil for January delivery is currently up $1.05 to $91.76 per barrel.
Of the six economic sectors trading higher, energy (+1.7%) leads the way. The financial sector (-0.4%) is the main laggard, although losses are modest compared to its huge 5.0% gain yesterday. DJ30 +36.18 NASDAQ +7.04 SP500 +2.18 NASDAQ Dec/Adv/Vol 1395/1400/893 mln NYSE Dec/Adv/Vol 1596/1510/461 mln
11:30 am : The major indices make some gains as the Nasdaq trades back in positive territory, and the Dow hits the unchanged mark. The pickup in buying interest has been broad-based.
Dow Jones reports the White House has raised its 2007 U.S. GDP forecast to 2.7% versus 2.3% and cut its 2008 U.S. GDP forecast to 2.7% versus 3.1%. DJ30 +0.41 NASDAQ +4.41 SP500 -2.07 NASDAQ Dec/Adv/Vol 1472/1292/744 mln NYSE Dec/Adv/Vol 1839/1247/374 mln
11:00 am : The major indices trade near their best levels of the session as the tech sector (+0.1%) makes it back into the green. The only other sectors in the green are energy (+1.6%) and telecom (+0.4%).
Crude oil, while off its session highs, is back on the rise (+2.0% to $92.45) which is weighing on the Amex Airline Index (-2.4%) and Dow Jones Transportation Average (-1.4%). DJ30 -18.77 NASDAQ -2.06 SP500 -3.86 NASDAQ Dec/Adv/Vol 1560/1126/612 mln NYSE Dec/Adv/Vol 1929/1116/295 mln
10:30 am : The stock market has traded in a choppy manner following the new home sales report. Currently, the major indices are off their worst levels reached shortly after the report, but are still trading with modest losses.
This week has been a wild ride for stocks, with the steep drop on Monday and then two back-to-back rallies. The bond market has also had large swings, moving in the opposite direction of stocks this week. Today is no different as the 10-year note is up 29 ticks to yield 3.9%.DJ30 -21.21 NASDAQ -9.17 SP500 -7.69 NASDAQ Dec/Adv/Vol 1583/994/437 mln NYSE Dec/Adv/Vol 1999/965/188 mln
10:10 am : The Nasdaq joins the other major indices in the red as selling pressure picks up. Six of the ten economic sectors are in negative territory. The financial sector (-1.5%) is the main laggard, which follows its impressive 5% rally yesterday. The energy sector (+0.9%) is showing the most strength as it rises in conjunction with oil prices.
Just reported, October New Home Sales rose 1.7% to 728,000, compared to the prior revised reading of 716,000. The only reason new home sales rose this month is because the previous reading was revised down to 716,000 from 770,000. The consensus estimate called for a reading of 750,000. Currently, the stock market's reaction to the data is muted.DJ30 -54.95 NASDAQ -10.43 SP500 -8.26 NASDAQ Dec/Adv/Vol 1391/1028/282 mln NYSE Dec/Adv/Vol 1641/1149/98 mln
09:45 am : Stocks open slightly lower, but are now trading in mixed fashion. The ability of the Nasdaq to make it into the green is striking, as some profit taking was expected following the huge 4.8% gain in the Nasdaq over the last two sessions.
In corporate news, E*Trade (ETFC) announced its CEO is stepping down and that it will receive a cash infusion of $2.5 billion from a hedge fund.
Sears Holdings (SHLD) posted a third quarter profit of $0.01 per share, marking a 99% decline from the year-ago period.
Meanwhile, crude oil (+0.9% to $91.45) was up sharply after an explosion in Minnesota shut down four pipelines. Prices have since eased after it was reported two pipelines have been reopened. CNBC also said that the Dept. of Energy will make the Strategic Petroleum Reserves available if necessary.DJ30 -11.21 NASDAQ +4.66 SP500 -1.62
09:15 am : S&P futures vs fair value: -5.4. Nasdaq futures vs fair value: -10.8.
08:59 am : S&P futures vs fair value: -4.1. Nasdaq futures vs fair value: -10.3. Early indications continue to suggest a negative opening, but futures are well off their lows of the day. The October new home sales report is slated for release at 10:00 ET.
08:30 am : S&P futures vs fair value: -6.0. Nasdaq futures vs fair value: -9.5. Just hitting the wires, Q3 GDP-Prelim came in at the expected reading of 4.9%. Initial jobless claims for the week ended 11/24 was 352K, compared to the expectation for claims to hold steady at 330K. Futures gain about a point immediately following the releases.
08:00 am : S&P futures vs fair value: -3.5. Nasdaq futures vs fair value: -7.8. Futures point to a lower open. Some profit taking following the stock market’s huge run the last two days is behind the weakness. Oil prices spiked (+2.8% to $93.17) after an explosion in Minnesota shut down four pipelines. Follow up reports indicated two pipelines have been reopened, causing oil prices to ease a bit. In corporate news, E*Trade (ETFC) has announced that affiliates of Citadel Investment Group are providing a $2.5 billion cash infusion and that its CEO is stepping down. Sears Holdings (SHLD) posted a third quarter profit of $0.01 per share. It's unclear if that number is comparable to the consensus estimate, but regardless, it marks a 99% decline from the year-ago period.
06:21 am : S&P futures vs fair value: -4.4. Nasdaq futures vs fair value: -7.0.
06:21 am : FTSE...6299.40...-6.80...-0.1%. DAX...7761.45...+37.79...+0.5%.
06:21 am : Nikkei...15513.74...+359.96...+2.4%. Hang Seng...28482.54...+1111.30...+4.1%.
01:00 am : The major indices slide a bit. The major indices are now back in the red, but are trading only slightly below the unchanged mark. Compared to the last few sessions, today's range has been very tight.
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