Market Update 071227 http://biz.yahoo.com/mu/update.html 4:15 pm : The stock market had a bearish bias throughout the trading day on Thursday. The major indices each finished at or near their worst levels of the session, and all ten economic sectors closed in the red.
The main selling catalysts were a Goldman Sachs report that several Wall Street banks will have larger than expected write-downs and a disappointing durable orders economic release. The assassination of a former Pakistani Prime Minister provided some additional selling pressure.
Goldman Sachs said Citigroup (C 29.52, -0.93) may cut its dividend by 40%, and raised its write-down estimate to $18.7 billion, up from $11 billion, according to Bloomberg.com. Goldman also doubled its write-down estimates on JPMorgan Chase (JPM 43.64, -1.30) and Merrill Lynch (MER 53.20, -1.34). The report acted as a noticeable drag on the influential financial sector (-2.2%), which finished the day as the main laggard.
Regarding today's economic data, November durable orders rose 0.1%, which was less than the expected 2.2% rise. Excluding transportation, orders declined 0.7%, compared to the expectation of a 0.5% rise. Business investment trends are sluggish, but the data don't indicate a recession. The weaker than expected data is serving as a profit taking catalyst in the materials sector (-1.8%), which is one the best performing sectors year-to-date (+21%).
Jobless claims basically held steady at 349K for the week ended Dec 22. The data were more than the expected 340K claims, but remains lower than recessionary levels. On a positive note, the Conference Board reported December consumer confidence rose to 88.6, higher than the expected reading of 87.0. The better than expected report had a muted effect on the stock market.
Reports of the assassination of former Pakistan Prime Minister Benazir Bhutto added to the negative bias today, although not as much as the media is making it out to be. After the suicide bombing hit news wires, stock market futures modestly slipped while oil, gold, and Treasury bonds gained. The media, though, is attributing too much of today's weakness to the murder. If it was the main selling catalyst, the European markets would most likely not have finished the day with a gain. In addition, the bottom-line impact for U.S. companies from this tragedy is insignificant.
Crude oil (+$0.65 $96.62) closed higher after the government's weekly inventory report showed stockpiles declined by a larger than expected amount. The gains in crude were not able to lift the energy sector (-1.0%) into positive territory, although it did outperform on a relative basis. DJ30 -192.08 NASDAQ -47.62 NQ100 -1.4% R2K -3.0% SP400 -1.5% SP500 -21.39 NASDAQ Dec/Adv/Vol 2331/716/1.32 bln NYSE Dec/Adv/Vol 2446/759/832 mln
3:30 pm : The major indices are hovering slightly above their worst levels of the session after dipping a bit. Market volatility is higher today as indicated by the 6.3% gain in the VIX.
Looking toward tomorrow, December Chicago PMI (a regional manufacturing survey) will be released at 9:45 ET, and November new home sales will be released at 10:00 ET. Briefing.com expects the PMI reading to dip to 52.5 and 700K new home sales.DJ30 -156.07 NASDAQ -36.67 SP500 -16.83 NASDAQ Dec/Adv/Vol 2207/819/1.08 bln NYSE Dec/Adv/Vol 2317/872/670 mln
2:55 pm : Stocks trade in a choppy manner modestly above their worst levels of the session. Trade has been light this session, and news has been slow in afternoon trade.
There has been a bearish bias throughout the session, as the major indices have yet to trade in positive territory.
Meanwhile, Treasury bonds are climbing back toward their session highs. The 10-year note is up 20 ticks, pushing its yield down to 4.20%.DJ30 -136.62 NASDAQ -28.94 SP500 -14.01 NASDAQ Dec/Adv/Vol 2210/789/969 mln NYSE Dec/Adv/Vol 2306/882/612 mln
2:30 pm : Stocks are slowly climbing higher, but the indices are still posting decent losses.
The small-cap Russell 2000 Index is underperforming the broader market today, as it has this year. This session's loss puts the Russell in negative territory year-to-date. The performance of the Russell is in contrast to last year, when the Russell posted a gain of 17% compared to the S&P's 13.6% return. DJ30 -133.56 NASDAQ -24.18 R2K -1.6% SP500 -13.14 NASDAQ Dec/Adv/Vol 2192/802/903 mln NYSE Dec/Adv/Vol 2313/872/570 mln
1:55 pm : The major indices pare some of their losses, and are now trading modestly above the worst levels of the session. Financials (-1.5%) have made the most gains in the recent pickup in buying interest.
In commodity trading, gold finished higher by $2.50 to $832.00 per ounce. Commodities as a whole are up 0.4% this session.DJ30 -140.30 NASDAQ -27.99 SP500 -14.00 NASDAQ Dec/Adv/Vol 2210/762/816 mln NYSE Dec/Adv/Vol 2366/800/511 mln
1:30 pm : The bearish bias remains intact as the major indices trade near their worst levels of the session. Declines are broad-based with all sectors in the red, although there is some relative weakness in the financial sector (-1.8%).
18 of the 19 groups are posting a loss within the sector. The thrifts & mortgages group (+1.7%) is seeing some buying interest on reports that the Office of Federal Housing Enterprise Oversight said Fannie Mae (FNM 39.75, +0.95) and Freddie Mac (FRE 34.04, +1.62) are "adequately capitalized." Both companies have been hit hard by the subprime market turmoil; Freddie is down roughly 50% year-to-date and Fannie is down roughly 30%.DJ30 -145.34 NASDAQ -27.21 SP500 -14.20 NASDAQ Dec/Adv/Vol 2234/737/746 mln NYSE Dec/Adv/Vol 2380/776/455 mln
1:00 pm : The S&P 500 extends its losses and then after a bit of a recovery holds near its worst level of the session.
The Nasdaq 100 is overwhelmingly negative, with only nine of the 100 stocks posting a gain. Intel (26.92, -0.53) and Microsoft (MSFT 36.35, -0.26) are leading the way lower. Apple (AAPL 201.00, +2.04) and Amazon.com (AMZN 93.78, +0.96), two of the top performing stocks yesterday, are again the strongest stocks in the Nasdaq.
The Dow is down across the board, with none of its 30 components posting a gain. Boeing (BA 88.51, -1.49) and IBM (IBM 110.28, -1.28) are the main laggards. DJ30 -156.32 NASDAQ -31.12 SP500 -15.22 NASDAQ Dec/Adv/Vol 2234/702/680 mln NYSE Dec/Adv/Vol 2340/784/410 mln
12:30 pm : The major indices continue their broad-based retreat as they hit fresh intraday lows. Market breadth is negative. Decliners outpace advancers by more than a 2-to-1 margin on the NYSE, while the Nasdaq comes in at nearly a 3-to-1 margin. Volume remains relatively light.
Airlines, down 2.4%, are getting hit especially hard as crude oil holds its gains. Transports as a whole are performing in-line with the broader market.DJ30 -139.08 DJTA -0.9% NASDAQ -28.08 SP500 -13.73 NASDAQ Dec/Adv/Vol 2141/768/597 mln NYSE Dec/Adv/Vol 2215/903/351 mln
12:00 pm : The stock market has remained in negative territory throughout the session, with all ten economic sectors posting a loss. There has been a number of profit taking catalysts including Goldman Sachs raising its write-down estimates on a number of Wall Street banks, weaker than expected economic data, and the killing of a former Pakistani Prime Minister.
Goldman Sachs said Citigroup (C 29.79, -0.67) may cut its dividend by 40%, and raised its write-down estimate to $18.7 billion, up from $11 billion, according to Bloomberg.com. Goldman also doubled its write-down estimates on JPMorgan Chase (JPM 44.50, -0.44) and Merrill Lynch (MER 53.52, -1.04). After not having much of an effect on the overall futures market, the report is acting as a noticeable drag on the influential financial sector (-1.2%), which is pacing this session's decline.
Regarding today's economic data, November durable orders rose 0.1%, which was less than the expected 2.2% rise. Business investment trends are sluggish, but the data don't indicate a recession. The weaker than expected data is serving as a profit taking catalyst in the material sector (-1.2%), which is one the best performing sectors year-to-date (+23%).
Jobless claims basically held steady at 349K for the week ended Dec 22. The data was more than the expected 340K claims, but remains lower than recessionary levels.
On a positive note, the Conference Board reported December consumer confidence rose to 88.6, higher than the expected reading of 87.0. The better than expected report had a muted effect on the stock market.
Reports of the assassination of former Pakistan Prime Minister Benazir Bhutto has added to the negative bias today. After the suicide bombing hit news wires, stock market futures slipped while oil, gold, and Treasury bonds gained.
Crude oil (1.3% to $97.26) extended its gains after the government's weekly inventory reported showed stockpiles declined by a larger than expected amount. The gains in crude have not been able to lift the energy sector (-0.2%) into positive territory, although it is outperforming on a relative basis. DJ30 -119.82 NASDAQ -24.11 R2K -1.5% SP400 -0.8% SP500 -11.33 NASDAQ Dec/Adv/Vol 2093/773/517 mln NYSE Dec/Adv/Vol 2166/931/307 mln
11:30 am : For now, it appears that selling pressure has eased, but there is not much concerted buying effort either as the major indices trade near their recently reached intraday lows.
In currency trading, the euro is up a strong 0.8% against the dollar. The dollar as a whole is down 0.35% this session, as indicated by the DXY Index.DJ30 -115.18 NASDAQ -23.64 SP500 -10.53 NASDAQ Dec/Adv/Vol 2060/750/446 mln NYSE Dec/Adv/Vol 2155/895/246 mln
11:00 am : Stocks extend their losses as they fall to fresh intraday lows. The financial sector continues to weigh on the broader market, with a 2.2% decline in the retail REITs group and a 2.0% decline in investment banks & brokerages.
Crude oil is now up 1.3% to $97.25 per barrel on the bullish crude inventory data. The gains in crude oil have not been able to lift the energy sector (-0.1%) into positive territory, although it is outperforming on a relative basis.
Struggling student-lender SLM Corp. (SLM 20.86, -1.27), commonly referred to as Sallie Mae, is once again making headlines. Its shares are down nearly 6% after the company announced that it is issuing a total of $2.5 billion in preferred and common stock.
The majority of the offering will go to settle contracts that require the company to repurchase shares at above-market prices. The contracts allowed Sallie Mae to repurchase shares at a discount when its stock was rising, but it now has to purchase the shares back at a premium after its stock fell. DJ30 -105.10 NASDAQ -19.95 SP500 -10.40 NASDAQ Dec/Adv/Vol 1924/883/341 mln NYSE Dec/Adv/Vol 1986/1007/193 mln
10:30 am : Stocks are off their lows, but continue to trade with modest losses. All ten economic sectors remain in negative territory. Similar to yesterday, volume is light as many traders take an extended holiday.
Just reported by the Energy Information Administration, for the week ended Dec. 27 crude oil inventories slipped by 3.3 million barrels. Analysts expected a smaller stockpile drop of 1.5 million barrels. Crude oil for February delivery was trading up 0.4% to $96.35 just prior to the report.DJ30 -66.33 NASDAQ -9.25 SP500 -6.45 NASDAQ Dec/Adv/Vol 1780/862/219 mln NYSE Dec/Adv/Vol 1773/1068/95 mln
10:00 am : Just hitting the wires, the Conference Board said December consumer confidence rose to 88.6. A reading of 87.0 was expected. The major indices did not react much to the data, as they continue to post a loss.
All ten of the economic sectors are in the red, with financials (-0.9%) leading the decline after Goldman Sachs raised its write-down estimates on a handful of Wall Street banks. The materials sector (-0.9%) is also a laggard.DJ30 -75.41 NASDAQ -12.87 SP500 -7.72 NASDAQ Dec/Adv/Vol 817/1563/89 mln
09:45 am : Stocks open modestly lower on a pair of weaker than expected economic reports and news that former Pakistan Prime Minister Benazir Bhutto was killed by a suicide bomber.
On the economic front, durable goods orders rose by 0.1%, which was lower than the expectation of a 2.0% rise. Separately, weekly initial jobless claims came in at 349K. Economists expected a reading of 340K.
Goldman Sachs said that Citigroup (C) may cut its dividend by 40% and may write-down $18.7 billion in debt, which is higher than the previous estimate of $11 billion. Goldman also said it expects a larger write-down at JPMorgan Chase (JPM) and Merrill Lynch (MER). This news did not have much of an effect on the broader market in futures trading, which is a stark contrast to a month ago when it would have slammed the entire market.DJ30 -66.82 NASDAQ -10.72 SP500 -7.42
09:16 am : S&P futures vs fair value: -4.8. Nasdaq futures vs fair value: -4.8.
09:00 am : S&P futures vs fair value: -5.3. Nasdaq futures vs fair value: -4.8. The futures market continues to point to a negative start following the killing of Pakistan's form Prime Minister Benazir Bhutto and the weaker than expected economic data. The Dept. releases its weekly energy inventory report at 10:30 ET. The report was delayed a day due to the Christmas holiday. Crude oil is trading up 0.7% to $96.65 per barrel.
08:30 am : S&P futures vs fair value: -2.6. Nasdaq futures vs fair value: -6.0. Futures slipped on reports that ex-Pakistan Prime Minister Benazir Bhutto was killed by a suicide bomber. Futures then dip a bit more on a pair of economic reports. The Dept. of Commerce reports that November durable orders rose 0.1%, which was less than the consensus estimate of 2.0%. Separately, there were 349K initial jobless claims for the week ended Dec. 22. Economists expected 340K claims.
08:00 am : S&P futures vs fair value: +1.7. Nasdaq futures vs fair value: +3.3. Early indications suggest a slightly higher open for the stock market. Goldman Sachs said Citigroup (C) may cut its dividend by 40% and may write-down $18.7 bln in CDOs, which is more than the previous estimate of $11 bln. There are a handful of economic reports. Durable orders (consensus 2.2%) and initial claims (consensus 345K) are both set to be released at 8:30 ET. Consumer confidence (consensus 87.0) is slated for release at 10:00 ET.
06:21 am : S&P futures vs fair value: +1.4. Nasdaq futures vs fair value: +3.0.
06:20 am : FTSE...6498.10...+18.80...+0.3%. DAX...8066.38...+63.71...+0.8%.
06:20 am : Nikkei...15564.69...-88.85...-0.6%. Hang Seng...27842.93...-285.87...-1.0%.
Market Data 
Markets 
AI
