Market Update 071226 http://biz.yahoo.com/mu/update.html 4:20 pm : On Wednesday, stocks struggled shortly after the opening bell on disappointing news regarding consumer spending and worse-than-expected home price data. The S&P 500 managed to end the day slightly above the unchanged mark, though, after stocks were lifted by the disclosure of two investments in a pair of flagging financial companies. Trading volume was light, as many traders were on an extended holiday.
MasterCard reported overall holiday sales through Dec. 24 were up a modest 3.6%, compared to last year's 6.6% increase. Excluding gasoline, retail sales increased by only 2.4%.
Target (TGT 51.16, -1.31) was the worst performing retail stock after the company warned its December same-store sales will come up short of expectations. The company said it now expects sales to be down 1% to up 1%, well below the previous forecast that called for sales to rise 3% to 5%.
Internet retailer Amazon.com (AMZN 92.85, +1.84) bucked today's negative retail trend after the company said it had its best holiday season ever in 2007. Strong demand for GPS systems, digital cameras, high-definition televisions and other consumer electronics helped boost sales. Amazon is also outperforming the S&P 500 Retailing Index year-to-date, its stock has soared more than 130%, which is in contrast to the 17% drop in the Index.
In acquisition news, Warren Buffet's Berkshire Hathaway (BRK.A 138,500, +520) is acquiring 60% of Pritzker family owned Marmon Holdings for $4.5 billion. Berkshire will purchase the remaining 40% of the company during the next five to six years at a price based on future earnings of Marmon.
The stock market recovered to the unchanged mark in afternoon trade after Davis Selected Advisors disclosed a new 5.1% stake in struggling bond insurer MBIA (MBI 22.33, +2.21).The disclosure aided other mortgage finance names, such as Ambac (ABK 30.14, +3.46).This investment in MBIA follows Monday's announcement that Davis would invest $1.2 billion in Merrill Lynch (MER 54.54, +0.64).
On a related note, British billionaire Joe Lewis disclosed a 9.57% stake in Bear Stearns (BSC 89.29, +0.49). The news helped send the company's shares into positive territory. His previous stake in the company was 8.1%.
On the economic front, the S&P/Case-Shiller Home Price Index indicated October home prices dropped a more than expected 6.1% year-over-year. Economists expected a drop of 5.7%. Of the 20 metropolitan areas that make up the Index, Miami was hit the hardest with a 12.4% decline year-over-year. Only three areas saw prices rise, led by a 4.3% gain in Charlotte. The report has spurred some selling interest in the residential REITs group (-2.6%).
Of the six sectors that traded lower, the consumer discretionary sector (-0.5%) was the main laggard, in part due to the weakness in retailers (-1.2%). The financial sector (-0.5%) was also a laggard, as REITs were under selling pressure following the weaker than expected home price data.
The energy sector rose 1.2% thanks to the 1.9% rise in crude oil prices. Telecom posted a decent gain of 1.3%.DJ30 +2.36 NASDAQ +10.91 NQ100 +0.4% R2K +0.3% SP400 -0.3% SP500 +1.21 NASDAQ Dec/Adv/Vol 1317/1667/1.23 bln NYSE Dec/Adv/Vol 1598/1570/839 mln
3:30 pm : Heading into the close of trading, the S&P and Dow are slightly below the flat line, while the Nasdaq continues to sport modest gains.
The advance/decline line on the NYSE shows how indecisive the market currently is. Advancers to decliners are basically even, coming in at a 1-to-1 ratio. Meanwhile, new lows outpace new highs by 6-to-5 this session.
Tomorrow, durable orders, weekly initial jobless claims, consumer confidence and crude inventories are slated to be released. Briefing.com expects durable orders, initial claims, and consumer confidence to come in at 4.0%, 345K and 87.5, respectively. DJ30 -11.62 NASDAQ +8.67 SP500 -0.67 NASDAQ Dec/Adv/Vol 1329/1654/951 mln NYSE Dec/Adv/Vol 1625/1529/587 mln
3:05 pm : Stocks inch higher with the Nasdaq Composite hitting a fresh intraday high. The Dow is clutching the unchanged mark and is underperforming the other indices.
Of the 17 Dow components trading lower, United Technologies (UTX 77.56, -0.62) and Citigroup (C 30.41, -0.57) are showing the most weakness. Of the 13 components trading higher, Exxon Mobil (XOM 94.96, +1.30) and Caterpillar (CAT 73.62, +0.92) are showing the most strength.DJ30 +1.39 NASDAQ +12.65 SP500 +0.90 NASDAQ Dec/Adv/Vol 1296/1675/882 mln NYSE Dec/Adv/Vol 1567/1570/530 mln
2:30 pm : The Nasdaq is holding onto its recent gains. The S&P and Dow dip a bit, but are still trading just slightly below their best levels of the session.
Davis Selected Advisors disclosed a new 5.1% stake in bond insurer MBIA (MBI 22.05, +1.93). The stock has gained nearly a dollar since the disclosure and the report has aided other mortgage finance names, such as Ambac (ABK 29.22, +2.54). The news also helped lift the overall market during the previous pickup in buying interest that sent Dow and S&P back into positive territory. The stake was disclosed in a 13G filing, which typically indicates a passive investment. The new position comes as the troubled financial guarantor trades at a multi year low. Today's investment in MBIA follows Monday's announcement that Davis would invest $1.2 billion in Merrill Lynch (MER 54.32, +0.42).
Meanwhile, the recent recovery in stocks has led to some selling interest in bonds. The 10-year note is now down 13 ticks, sanding its yield up to 4.27%.DJ30 -6.99 NASDAQ +10.53 SP500 +0.37 NASDAQ Dec/Adv/Vol 1320/1614/776 mln NYSE Dec/Adv/Vol 1625/1480/457 mln
2:00 pm : After some choppy action, stocks are back on the rise as the Nasdaq extends its gains, and the S&P makes it to the unchanged mark. Four of the ten economic sectors are now posting a gain, led by energy (+1.2%) and telecom (+1.1%).
The small-cap Russell 2000 Index is outperforming its large-cap counterparts this session. For the year, though, the Russell has underperformed. It is up 1.1% year-to-date, only recently making it back into positive territory.
In commodity trading, gold closed the session higher by $13.30 to $829.80/oz, silver ended up $0.18 cents to $14.85/oz.DJ30 +3.26 NASDAQ +10.23 R2K +0.5% SP500 +1.06 NASDAQ Dec/Adv/Vol 1447/1451/701 mln NYSE Dec/Adv/Vol 1706/1400/425 mln
1:30 pm : Stocks continue to push higher. The Nasdaq is trading with a modest gain, while the S&P 500 and Dow are trading with slight losses.
If the Nasdaq manages to close in the green, it will mark its sixth consecutive positive trading day. The Nasdaq has outperformed the other major indices this year; it is up 12.2% , which surpasses the Dow's 8.5% advance and the S&P's 5.2% advance. DJ30 -16.25 NASDAQ +3.46 SP500 -1.59 NASDAQ Dec/Adv/Vol 1452/1424/634 mln NYSE Dec/Adv/Vol 1795/1304/378 mln
1:00 pm : The major indices are trading at or near their best levels of the session as they attempt to climb back to the unchanged mark, with the Nasdaq Composite outperforming on a relative basis. The recent buying interest has been broad-based.
38 stocks in the Nasdaq 100 are posting a gain. Some of the most influential and best performing stocks year-to-date are providing leadership, including Google (GOOG 708.86, +8.23), Amazon.com (AMZN 93.21, +2.20) and Apple (AAPL 199.17, +0.37). DJ30 -17.23 NASDAQ -0.60 SP500 -2.34 NASDAQ Dec/Adv/Vol 1734/1150/542 mln NYSE Dec/Adv/Vol 1938/1145/335 mln
12:25 pm : Much of the same as stocks hold modestly below the flat line. The major indices have been trading in a tight range.
Market internals lean bearish. On the NYSE decliners outpace advancers by a 19-to-11 margin. The Nasdaq comes in at a 18-to-11 margin. Volume is light, as expected, as many traders take an extended holiday.DJ30 -37.71 NASDAQ -6.51 SP500 -5.05 NASDAQ Dec/Adv/Vol 1751/1110/473 mln NYSE Dec/Adv/Vol 1932/1126/288 mln
12:00 pm : Stocks are trading modestly lower at midday, on what has been a relatively quiet session as traders take an extended holiday. Retailers have been in focus as the holiday shopping season comes to an end.
MasterCard added to the negative tone regarding retailers after reporting overall holiday sales through Dec. 24 were up a modest 3.6%, compared to last years 6.6% increase. Excluding gasoline, retail sales increased by only 2.4%.
Shares of Target (TGT 51.04, -1.43) are being hit especially hard after the company warned its December same-store sales will come up short of expectations. The company said it now expects sales to be down 1% to up 1%, well below the previous forecast that called for sales to rise 3% to 5%.
On a positive note, internet retailer Amazon.com (AMZN 92.82, +1.80) is outperforming today after the company said the 2007 holiday season finished as its best ever. Amazon's busiest day was Dec. 10, when the company sold 5.4 million items.
Amazon is also outperforming the S&P 500 Retailing Index year-to-date, its stock has soared more than 130%, which is in contrast to the 16% drop in the Index.
In acquisition news, Warren Buffet's Berkshire Hathaway (BRK.A 139,400, +1,420) is acquiring 60% of Pritzker family owned Marmon Holdings for $4.5 billion. Berkshire will purchase the remaining 40% of the company during the next five to six years at a price based on future earnings of Marmon.
On the economic front, the S&P/Case-Shiller Home Price Index indicated October home prices dropped 6.1% year-over-year, compared to the expected drop of 5.7%. Of the 20 metropolitan areas that make up the Index, Miami was hit the hardest with a 12.4% drop year-over-year. Only three areas saw prices rise, led by a 4.3% gain in Charlotte. The report has spurred some selling interest in the residential REITs group (-2.5%).
Eight of the ten economic sectors, are posting a loss. Leading the way lower is consumer discretionary (-1.0%), partly due to a 1.7% drop retailer stocks. The influential financial sector (-1.0%) is also showing weakness.
The energy sector (+0.7%) is providing leadership as it rises in conjunction with crude oil (+1.8% to $95.78). DJ30 -39.50 NASDAQ -8.65 SP500 -5.41 NASDAQ Dec/Adv/Vol 1762/1070/418 mln NYSE Dec/Adv/Vol 1904/1121/249 mln
11:30 am : Stocks continue to hover modestly below the unchanged mark. The underperformance of the heavily-weighted financial sector (-0.9%) is acting as a significant drag on the stock market.
The Dollar Index, which tracks the dollar against a basket of world currencies, is posting a significant 0.59% decline. The weakness in the dollar has helped spur some buying interest in commodities, which are up 0.98%.
Energy related commodities are seeing a good deal of the buying interest. RBOB gasoline is up 3.1%, heating oil is up 2.9% and crude oil is up 2.2%.DJ30 -36.01 NASDAQ -9.12 SP500 -4.86 NASDAQ Dec/Adv/Vol 1699/1071/343 mln NYSE Dec/Adv/Vol 1898/1101/193 mln
11:00 am : The stock market continues to trade with slight losses, as it has been unable to maintain upward momentum.
Retailers are under pressure today, posting a 1.6% loss. Internet retailer Amazon.com (AMZN 24.17, +0.12), however, is managing to buck the negative trend after the company said the 2007 holiday season finished as its best ever. Amazon's busiest day was Dec. 10, when the company sold 5.4 million items.
Amazon's stock has soared more than 130% year-to-date, which is in contrast to the 16% drop in the S&P 500 Retailing Index.DJ30 -41.45 NASDAQ -8.73 SP500 -5.07 NASDAQ Dec/Adv/Vol 1720/1020/265 mln NYSE Dec/Adv/Vol 1845/1094/153 mln
10:30 am : The stock market is off its worst level of the session, but continues to sport modest losses.
The Residential REITs (real estate investment trusts) group is down 2.0%, which makes it one of the worst performing groups this session. Earlier today, the S&P/CaseShiller Home Price Index indicated home prices dropped 6.1% year-over-year, compared to the expected drop of 5.7%. DJ30 -42.92 NASDAQ -6.28 SP500 -4.83 NASDAQ Dec/Adv/Vol 1611/1031/170 mln NYSE Dec/Adv/Vol 1763/997/71 mln
10:00 am : Stocks extend their losses. Eight of the ten sectors are in the red, led by a 0.9% decline in consumer discretionary.
Retailers are weighing on the discretionary sector, as indicated by the 1.9% decline in the S&P 500 Retailing Index. Target (TGT 51.04, -1.43) is playing a large role in the underperformance after the company warned that its Dec. same-store sales will disappoint. Sears Holdings (SHLD 100.89, -3.81) is also a laggard.
Financials (-1.1%), the most influential sector in the S&P 500, is also underperforming the broader market.
Energy (+0.3%) is providing leadership, thanks to an 1.9% in crude oil prices.DJ30 -54.30 NASDAQ -15.02 SP500 -7.95 NASDAQ Dec/Adv/Vol 1568/759/51 mln
09:40 am : As futures suggested, stocks open modestly lower. Due to the Christmas holiday yesterday, many investors are on vacation, which may lead to low trading volume today.
Topping headlines this morning, is news that Warren Buffet's Berkshire Hathaway (BRK.A) is acquiring 60% of Pritzker family owned Marmon Holdings for $4.5 billion. Berkshire will purchase the remaining 40% of the company during the next five to six years at a price based on future earnings of Marmon.
Retailers may come under scrutiny today. Target (TGT) warned December same-store sales will be below expectations, according to reports. Sales at stores opened at least a year are now expected to be in a range of down 1% to up 1%. Meanwhile, MasterCard reported holiday season retail sales were up a modest 3.6%, compared to last year's 6.6% gain.DJ30 -35.11 NASDAQ -10.00 SP500 -5.26
09:15 am : S&P futures vs fair value: -5.0. Nasdaq futures vs fair value: -7.1. S&P 500 futures slip, and now point to a modestly lower open.
09:00 am : S&P futures vs fair value: -2.6. Nasdaq futures vs fair value: -4.4.
08:31 am : S&P futures vs fair value: -1.4. Nasdaq futures vs fair value: -3.4. A slightly lower open is still expected. With many investors on vacation, volume is expected to be light.
08:00 am : S&P futures vs fair value: -1.7. Nasdaq futures vs fair value: -4.6. Stock futures point to a mostly flat open. News is slow this morning, although there are several items in regards to consumer spending. Target (TGT) said that December same-store sales were well below expectations, according to Reuters. MasterCard (MA) reported overall holiday season retail sales through Dec. 24 were up a modest 2.6%. Meanwhile, internet retailer Amazon.com (AMZN) painted a more upbeat picture after it said the 2007 holiday season finished as its best ever. In acquisition news, Warren Buffet’s Berkshire Hathaway (BRK.A) is going to acquire 60% of Marmon Holdings, a private company owned by trusts for the benefit of members of the Pritzker Family. The remaining 40% will be acquired over a five to six year period.
06:15 am : FTSE...Holiday......... DAX...Holiday.........
06:15 am : S&P futures vs fair value: +1.3.
06:15 am : Nikkei...15653.54...+100.95...+0.7%. Hang Seng...Holiday.........
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