Market Update 080208 http://biz.yahoo.com/mu/update.html 4:30 pm : The stock market finished down today, extending the week's decline to 4.6%. Seven of the ten economic sectors finished in negative territory. Still, a strong showing by tech stocks was unable to offset the subprime pressures weighing on financials.
The financial sector was the day's main laggard, down 3.3% at its lowest point. The sector has succumbed to continued concerns stemming from subprime fallout.
On a related note, beleaguered bond insurer MBIA (MBI 14.60, +0.40) announced after yesterday's close its common stock offering was oversubscribed and the company will, in turn, issue a $1 billion offering. Shares were priced below yesterday's closing price. The stock managed to post a 2.8% gain on the belief that the offer will improve MBIA's financial health and help protect the firm's AAA credit rating.
Meanwhile, the tech sector (+1.3%) and the Nasdaq handily outperformed. Amazon.com (AMZN 73.50, +2.59) announced it is authorizing a $1 billion share repurchase plan and may redeem or retire a series of 4.75% convertible senior notes. Recently beaten down, Hewlett-Packard (HPQ 41.88, +1.38), Google (GOOG 516.69, +11.74), Apple (AAPL 125.48, +4.24), and Microsoft (MSFT 28.56, +0.44) all bounced back in today's activity.
Energy stocks were also one of the day's relative leaders (+1.3%). Crude prices reached a February high of $91.98 per barrel on a Bloomberg.com report that OPEC will cut output to prevent prices from falling below $80 per barrel. Additionally, a damaged pipeline in Nigeria and forecasts for lower output in the North Sea boosted prices, according to Bloomberg.com.
Materials (+1.9%) also outperformed the broader market, helped by the 1.9% rise in the commodity index. In turn, seed producer and agricultural company Monsanto (MON 109.92, +5.99) saw its shares increase 6.5%.
The U.S. Senate voted in favor of the economic stimulus package. According to reports, the package is valued at $167 billion and includes checks for individuals making up to $75,000 and couples making up to $150,000. Social Security recipients will receive rebate checks. There has been some skepticism regarding the stimulus package, but it will certainly provide a significant boost to GDP growth in the second half the year.
In terms of economic data, December wholesale inventories increased 1.1%, which is more than the 0.3% increase economists came to expect. Wholesales increased 0.8% in the prior reading. The market's response to this announcement, however, was muted. DJ30 -64.87 NASDAQ +11.82 NQ100 +1.2% R2K -0.6% SP400 +0.2% SP500 -5.62 NASDAQ Dec/Adv/Vol 1695/1275/2.26 bln NYSE Dec/Adv/Vol 1855/1261/1.45 bln
3:30 pm : According to the volatility index, VIX, market volatility has moved sharply higher this week. The VIX is up more than 18.0% since last Friday.
The stock market remains in negative territory, though off session lows. The Nasdaq is residing along the unchanged mark.
Stocks have had a challenging week, pulled lower by the financial sector, which has lost some 9.0%. All ten economic sectors are on pace to finish the week in negative territory.DJ30 -93.89 NASDAQ +2.79 SP500 -9.50 NASDAQ Dec/Adv/Vol 1745/1191/1.78 bln NYSE Dec/Adv/Vol 1947/1161/1.02 bln
3:00 pm : The stock market has held a bearish sentiment through the afternoon. Financials (-2.7%) have been the day's primary laggard, down 3.3% at their session low.
Separately, shares of health care company Allergan (AGN 64.16, -3.15) are being undercut by reports indicating the company's Botox drug is being reviewed by the FDA for safety risks. Botox represented more than 30% of Allergan's revenues during 2006.DJ30 -93.15 NASDAQ +2.71 SP500 -8.51 NASDAQ Dec/Adv/Vol 1717/1194/1.65 bln NYSE Dec/Adv/Vol 1918/1170/958 mln
2:30 pm : The broader market has turned upward and the Nasdaq has made its way back into positive territory.
Timber company Weyerhaeuser (WY 62.78, -1.93) displeased investors with a pessimistic outlook for 2008. The company expects lower first quarter earnings on a sequential basis.
Higher oil prices are weighing on the transportation index (-0.8%) and airlines (-2.2%).DJ30 -81.69 NASDAQ +3.41 SP500 -7.29 NASDAQ Dec/Adv/Vol 1756/1161/1.52 bln NYSE Dec/Adv/Vol 2003/1084/874 mil
2:00 pm : Stocks bounced off their recently reached session lows, sending the Nasdaq back to the unchanged mark. Despite the modest recovery effort, the S&P 500 continues to trade with a decent sized loss. If this month's negative trend continues, it will mark the first time since 2002 that the S&P 500 traded down in four consecutive months.
Of the Dow's 30 components, 22 are in the red. Financial companies are leading the retreat, as traders speculate there will be more subprime mortgage fallout. American Express (AXP 44.34, -2.11), AIG (AIG 50.13, -1.52) and JPMorgan Chase (JPM 43.61, -1.50) are the main laggards. McDonald's (MCD 55.60, +1.14) and Hewlett Packard (HPQ 41.64, +1.14) are showing the most strength.DJ30 -101.28 NASDAQ -2.06 SP500 -10.12 NASDAQ Dec/Adv/Vol 1804/1083/1.36 bln NYSE Dec/Adv/Vol 1964/1109/770 mln
1:30 pm : The major indices reached new session lows with the Nasdaq briefly crossing into negative territory.
Financials (-2.8%) have fallen to fresh lows. After a CNBC report indicated no bailout plan has been reached for bond insurers, shares of MBIA (MBI 14.01, -0.19) and Ambac (ABK 10.78, -0.18) retreated in response.
Crude prices (+3.4%) have hit a February high, trading near the session's best levels of $91.94 per barrel. Sugar (+5.1%) and wheat (+2.8%) are also trading higher today. Overall, commodities are up 2.1%.DJ30 -98.03 NASDAQ +1.37 SP500 -9.77 NASDAQ Dec/Adv/Vol 1672/1200/1.22 bln NYSE Dec/Adv/Vol 1856/1197/697 mln
1:00 pm : After choppy action, the stock market is attempting a recovery but remains modestly above the session's worst levels. Energy (+1.4%) and tech (+1.1%) are attempting to offset the session's declines. Still, selling pressure among financials (-2.2%) remains intense.
After a poor outing yesterday, the 10-year Treasury note has added 23 ticks today, lowering its yield to 3.67%.DJ30 -63.89 NASDAQ +6.03 SP500 -5.91 NASDAQ Dec/Adv/Vol 1620/1208/1.10 bln NYSE Dec/Adv/Vol 1847/1170/623 mln
12:30 pm : The stock market continues to trend lower and has touched fresh lows, led by further losses in the financial sector (-1.9%). Nasdaq has surrendered the majority of this session's gains.
Shares of Bank of America (BAC 42.38, -0.99) and JP Morgan (JPM 44.14, -0.97) are having the most pronounced downside effect. Separately, firms in the consumer finance industry group (-4.3%) remain hard hit. DJ30 -72.10 NASDAQ +5.16 SP500 -6.47 NASDAQ Dec/Adv/Vol 1489/1333/971 mln NYSE Dec/Adv/Vol 1754/1239/540 mln
12:00 pm : After holding near the unchanged mark for most of the session on a slow news day, the stock market is trading with a modest loss. The Nasdaq is handily outperforming the S&P 500 due to leadership in large-cap tech stocks.
The Nasdaq and tech (+1.1%) are outperforming partly due to strength in shares of Amazon.com (AMZN 73.56, +2.65). Amazon announced this morning a share repurchase of up to $1 billion of common stock. It may also redeem or otherwise retire all of its outstanding 4.75% convertible senior notes.
Hewlett-Packard (HPQ 41.86, +1.36) and Microsoft (MSFT 28.71, +0.59) are also aiding in the outperformance of the Nasdaq and tech.
The Nasdaq and tech stocks have been under the most selling pressure in 2008 relative to their peers. At yesterday's closing prices, the Nasdaq was down 13.5% and tech was down 17.2%.
The U.S. Senate came to an agreement on a fiscal stimulus package. According to reports, individuals who earn $3000 to $75,000 a year will get a $300 to $600 rebate check. Couples earning up to $150,000 will get $1200. The plan also includes checks for people on Social Security. Parents will get a check of $300 per child. President Bush is expected to sign the bill next week.
The plan will provide a significant boost to GDP growth.
Bond insurer MBIA (MBI 14.50, +0.30) increased the size of its common stock offering to $1 billion from the planned $750 million. The offering was priced 14% below yesterday's closing price. Despite the low offering price, the stock is trading higher on hopes the fresh capital will help the company maintain its AAA rating.
Of the four sectors trading lower, financials (-1.8%) are acting as a limiting factor on broader market this session. Consumer finance is down 2.8% and retail REITs are down 3.6%.
Healthcare (-1.1%) came under pressure on reports that the FDA has received reports of death and respiratory reaction from use of botox products.
Energy (+0.7%) and materials (+1.4%) are providing leadership. Energy has rose in conjunction with crude (+2.9%), which saw gains after Bloomberg.com reported OPEC may cut output to keep oil prices above $80 per barrel. Materials stocks are up as commodities make gains. DJ30 -46.23 NASDAQ 9.30 SP500 -4.99 NASDAQ Dec/Adv/Vol 1211/1567/824 mln NYSE Dec/Adv/Vol 1450/1509/454 mln
11:25 am : Weakness in the influential financial sector (-1.3%) is limiting gains in the broader market. 17 of its 18 industry groups are posting a loss. Consumer finance is the main laggard with a 2.5% slide. Industrial REITs (+1.7%) is managing to buck the negative trend.
McDonald's (MCD 56.22, +1.76) is providing leadership. The company reported same-store U.S. sales rose by 1.9%.DJ30 -2.11 NASDAQ +19.26 SP500 +0.61 NASDAQ Dec/Adv/Vol 1104/1642/698 mln NYSE Dec/Adv/Vol 1493/1426/376 mln
11:00 am : The stock market remains near the unchanged mark. The Nasdaq Composite continues to show strength. The Composite has been hit hard this year, shedding roughly 13%, largely due to the approximately 16% drop in the tech sector.DJ30 +3.82 NASDAQ +19.78 SP500 +0.71 NASDAQ Dec/Adv/Vol 1321/1323/546 mln NYSE Dec/Adv/Vol 1645/1224/289 mln
10:30 am : The stock market is posting a slight gain, and the Nasdaq continues to outperform. Treasuries are seeing some buying interest after seeing a sell off yesterday due to a poor Treasury auction result.
Tech (+1.2%) is extending its advance. Microsoft (MSFT 28.96, +0.84) and and Hewlett-Packard (HPQ 41.53, +1.03) are leading the way. Both companies were laggards yesterday, dropping 1.4% and 3.9% respectively.
Bloomberg.com reports economists expect a 50% chance of a U.S. recession in the next 12 months, up from 40% in January. Briefing.com believes U.S. growth will be slow, but will avoid a recession.DJ30 -13.95 NASDAQ +15.28 SP500 +0.34 NASDAQ Dec/Adv/Vol 1051/1509/356 mln NYSE Dec/Adv/Vol 1327/1432/169 mln
10:00 am : The Nasdaq composite extends its gains and the S&P makes it to the unchanged mark. Four of the ten economic sector are higher led by energy (+0.8%) and tech (+0.7%). Energy is seeing some strength due to a rebound in crude oil prices (+1.3% to $89.23). OPEC may cut output next month to keep crude oil prices above $80 per barrel, according to Bloomberg.com.
Financials (-0.8%), health care (-0.9%) and utilities (-0.8%) are the main laggards.
Just reported, December wholesale inventories rose 1.1%, higher than the expected rise of 0.3%.DJ30 -10.57 NASDAQ +14.57 SP500 +0.53 NASDAQ Dec/Adv/Vol 1291/1086/145 mln
09:40 am : The major indices open in mixed fashion on a slow news day. The U.S. Senate came to an agreement on a fiscal stimulus package. President Bush is expected to sign the bill next week.
The Nasdaq is outperforming due to strength in shares of Amazon.com (AMZN). Amazon announced this morning a share repurchase of up to $1 billion of common stock. It may also redeem or otherwise retire all of its outstanding notes 4.75% senior convertible notes.
DJ30 -31.05 NASDAQ +10.28 SP500 -2.51
09:15 am : S&P futures vs fair value: -7.2. Nasdaq futures vs fair value: +1.0.
08:55 am : S&P futures vs fair value: -7.5. Nasdaq futures vs fair value: flat. Futures are holding steady. Crude oil is up 1.1% to $89.05 per barrel. Bloomberg.com reports OPEC may cut output next month to keep oil prices above $80 per barrel.
08:28 am : S&P futures vs fair value: -7.5. Nasdaq futures vs fair value: +0.8. It is shaping up to be a modestly lower start for the stock market. Futures suggest the Nasdaq 100 will outperform the S&P 500 with a flat start. Today’s sole economic reading is the December Wholesale Inventory report, which is estimated to post a gain of 0.3%. It is not expected to have much of an impact on the market due to its dated nature.
08:00 am : S&P futures vs fair value: -6.3. Nasdaq futures vs fair value: -0.5. Stock market futures indicate a modestly lower start to the trading day. There is not a specific selling catalyst. Bond insurer MBIA (MBI) increased the size of its common stock offering to $1 billion from the planned $750 million. The offering was priced 14% below yesterday’s closing price. MBIA raised the capital in an attempt to retain its AAA rating. The U.S. Senate came to an agreement on a fiscal stimulus package. President Bush is expected to sign the bill next week.
06:20 am : S&P futures vs fair value: -4.4. Nasdaq futures vs fair value: -1.5.
06:19 am : FTSE...5748.90...+24.80...+0.4%. DAX...6770.89...+37.17...+0.6%.
06:19 am : Nikkei...13017.24...-189.91...-1.4%. Hang Seng...Holiday.........
Market Data 
Markets 
AI
