Market Update 080611 http://biz.yahoo.com/mu/update.html 4:15 pm : Stocks fluctuated on Tuesday as crude retreated from a gain of 2.7% to a decline of 2.0% and traders digested stern words on inflation from Fed officials. The S&P 500 eventually settled the day with modest losses, while the Dow settled with a slight gain.
Fed Chairman Bernanke noted policy makers will "strongly resist" any surge in inflation expectations, although he acknowledged downside risks to growth remain. Fed officials have made it sound of late that they are most likely done cutting rates, and that the next move is likely an increase in rates. Fed funds futures suggest an 87% probability that rates will be increased by the end of September.
Market participants are not pleased with the possibility of rate increases while growth is still sluggish, aware of the adverse earnings implications this scenario is likely to have.
The hawkish inflation comments sparked a 1.15% rally in the dollar -- its largest one-day gain since 2005. This prompted a 1.9% drop in crude prices and a 3.0% decline in gold. As a result, the energy (-2.2%) and materials (-1.3%) sectors posted the largest declines.
Four of the ten economic sectors posted a gain. Financials stocks led the way after rebounding from their 7.2% loss over the last two sessions. Large-cap names such as JPMorgan Chase (JPM 38.27, +0.76), Wells Fargo ( 25.92, +0.65) and Citigroup (C 20.27, +0.67) showed notable strength. Recently hard hit Lehman Brothers (LEH 27.32, -2.16) did not participate in the advance, with shares falling 7% after being downgraded at several brokerages.
The consumer staples sector posted a solid gain of 0.9%. Coca-Cola (KO 58.01, +2.15) surged 3.9% after being upgraded to Buy from Hold at Deutsche Bank.
In economic news, the April trade deficit widened to $60.9 billion from a downwardly revised $56.5 billion in March. However, the real trade deficit (inflation adjusted) -- which is factored into GDP forecasts -- dipped 0.1% to $46.898 billion from $46.966 billion. If the real trade deficit stays at the current level, the net export component of GDP should boost the second quarter calculation by over 1.0%. DJ30 +9.44 NASDAQ -10.52 NQ100 -0.4% R2K -0.4% SP400 -0.7% SP500 -3.32 NASDAQ Dec/Adv/Vol 1636/1184/2.05 bln NYSE Dec/Adv/Vol 2077/1085/1.39 bln
3:35 pm : The stock market is back at the unchanged mark as neither sellers nor buyers are showing much conviction. Strength in financials (+1.3%) and consumer staples (+1.0%) is offsetting weakness in energy (-2.0%).
Tomorrow, there will be only a handful of earnings reports. Energy traders will be digesting the weekly energy report. DJ30 +34.52 NASDAQ -5.85 SP500 -0.20 NASDAQ Dec/Adv/Vol 1610/1201/1.75 bln NYSE Dec/Adv/Vol 2000/1144/1.08 bln
3:05 pm : The stock market pares its losses as the energy sector (-2.1%) climbs off its worst level.
Ford Motor (F 6.14, -0.22) has faced selling pressure since the opening bell. It was announced this morning that one billion shares -- half of Ford's outstanding stock -- were offered to Kirk Kerkorian's Tracinda Corporation offer to purchase 20 million shares at a price of $8.50.DJ30 +33.95 NASDAQ -6.62 SP500 -0.21 NASDAQ Dec/Adv/Vol 1634/1163/1.62 bln NYSE Dec/Adv/Vol 2007/1119/985 mln
2:30 pm : Broad-based selling pressure sends the stock market back into negative territory. There is no clear catalyst for the quick retreat.
The energy sector (-3.3%) is getting hammered. The sector is now the second best performing sector this year, with its 4.8% advance falling short of the materials sector's gain of 5.7%.DJ30 +8.63 NASDAQ -11.65 SP500 -3.97 NASDAQ Dec/Adv/Vol 1705/1077/1.49 bln NYSE Dec/Adv/Vol 2100/1010/896 mln
2:00 pm : The stock market retreats from its session high and is now clutching the unchanged mark. Energy is acting as a major drag, as its 3.0% drop is taking six points off the S&P 500. Meanwhile, Treasures are facing selling interest. The 10-year not is down 25 ticks, sending its yield up to 4.1%
Market breadth leans neagative. Decliners outpace advancers by 11-to-7 on the NYSE and by 5-to-4 on the Nasdaq.DJ30 +37.78 NASDAQ -3.68 SP500 -0.36 NASDAQ Dec/Adv/Vol 1562/1208/1.34 bln NYSE Dec/Adv/Vol 1928/1161/812 mln
1:30 pm : The stock market climbs to a fresh session high in mostly broad-based buying interest.
Six of the ten economic sectors are in positive territory, with financials (+2.1%), consumer staples (+1.3%) and consumer discretionary (+1.2%) all posting a gain in excess of 1%.
Meanwhile, crude oil (-2.0%) has extended its decline as the dollar (+1.1%) climbs higher. The weakness in crude has sent the energy sector (-2.4%) to session lows.DJ30 +78.73 NASDAQ +6.82 SP500 +4.52 NASDAQ Dec/Adv/Vol 1440/1301/1.23 bln NYSE Dec/Adv/Vol 1784/1285/742 mln
1:00 pm : The broader market has picked up some steam in recent trading, but is still roughly flat on the session after falling as much as 0.8% in early trade.
The rebound effort kicked in with a retest of the 1350 area for the S&P 500 that is viewed by technicians as a key area of support for the market, as it represents roughly a 50% retracement of the advance that was made off the March 17 low (1348.61 is the exact level of a 50% retracement).
Notably, all sectors, with the exception of energy (-2.2%), have participated in today's rebound effort.DJ30 +49.83 NASDAQ -3.95 SP500 +0.51 NASDAQ Dec/Adv/Vol 1537/1198/1.07 bln NYSE Dec/Adv/Vol 1904/1148/631 mln
12:30 pm : A mostly broad-based increase in buying interest sends the S&P 500 into positive territory before retreating to the unchanged mark. The Dow is now posting a modest 0.4% gain, near its session highs. The Nasdaq remains in the red, even as tech recovers (+0.1%).
Five of the ten economic sectors are now in the green, led by financials (+1.9%), consumer staples (+0.9%) and consumer discretionary (+0.5%). DJ30 +43.15 NASDAQ -6.13 SP500 -0.29 NASDAQ Dec/Adv/Vol 1591/1110/993 mln NYSE Dec/Adv/Vol 1969/1057/616 mln
12:00 pm : The stock market is trading with a slight loss, after spending nearly the entirety of the session in negative territory following warnings of increased inflation risk from several Fed officials. The stock market is currently down 0.2% after falling as much as 0.8%. Investor sentiment saw some improvement after crude prices (-0.6% to $133.52) reversed into the red after being up as much as 2.7%.
Fed Chairman Bernanke noted policy makers will "strongly resist" any surge in inflation expectations, although he acknowledged downside risks to growth remain. The Fed has hinted that it is most likely done cutting rates, and its next move is likely an increase in rates. Fed funds futures suggest a 96% probability that rates will be higher by at least 25 basis points upon the completion of its October meeting -- which is three meetings from now.
Market participants are not pleased with the possibility of rate increases while growth is still sluggish, aware of the adverse earnings implications this scenario is likely to have.
The stern words on inflation have given a healthy 1.0% boost to the dollar. In turn, gold prices are down a steep 2.7% to $871 per ounce, marking a 16% drop from its all-time nominal high of $1033 per ounce.
In economic news, the April trade deficit widened to $60.9 billion from a downwardly revised $56.5 billion in March. However, the real trade deficit (inflation adjusted) -- which is factored into GDP forecasts -- dipped 0.1% to $46.898 billion from $46.966 billion. If the real trade deficit stays at the current level, the net export component of GDP should boost the second quarter calculation by over 1.0%.
Weakness has been mostly broad-based, with 70% of stocks in the red and seven of the ten sectors posting a loss. The energy (-2.1%) and materials (-1.4%) sectors are the main laggards.
The financial sector (+1.3%) has provided leadership for much of the session, as it rebounds from its 7.2% loss over the last two sessions. Large-cap names such as JPMorgan Chase (JPM 38.90, +1.39), Wells Fargo (26.17, +0.90) and Citigroup (C 20.14, +0.54) are showing strength.
The consumer staples (+1.0%) sector is also showing strength. Coca-Cola (KO 58.12, +2.26) is up 4% after being upgraded to Buy from Hold at Deutsche Bank. DJ30 +14.49 NASDAQ -16.60 SP500 -3.72 NASDAQ Dec/Adv/Vol 1691/996/865 mln NYSE Dec/Adv/Vol 2084/923/541 mln
11:30 am : The market continues to fluctuate in negative territory as eight of the ten economic sectors remain in the red. Within the S&P 500, only 25% of stocks are posting a gain. Financials (+0.7%) and consumer staples (+0.7%) account for more than half of the positive stocks.DJ30 -15.96 NASDAQ -18.67 SP500 -5.94 NASDAQ Dec/Adv/Vol 1655/988/719 mln NYSE Dec/Adv/Vol 2130/859/450 mln
11:05 am : The stock market remains in negative territory, as the financial sector (+0.5%) gives up the majority of its gains.
Within the sector, struggling regional bank National City (NCC 4.79, +0.32) is a standout after issuing a statment that defended its capital position. Conversely, Lehman Brothers (LEH 27.35, -2.13) is down 7% after being downgraded and having its price target cut at several brokerages.
The dollar (+0.8%) is seeing some buying interest after Bernanke and other Fed officials indicated increased concern over inflation risks. The strength in the dollar is spurring selling interest in gold, which is down 2.0% to $877 per ounce, marking a 15% retreat from its March 17 all-time noninflation-adjusted high of $1033 per ounce.
Oil is off its highs, but is still managing to advance 1.0% despite the strengthing dollar. Citigroup raised its 2008 oil price forecast by $22 to $117 per barrel.DJ30 -27.03 NASDAQ -18.11 SP500 -7.25 NASDAQ Dec/Adv/Vol 1506/1055/590 mln NYSE Dec/Adv/Vol 1980/968/371 mln
10:30 am : The major indices rebound to their best levels, with the Dow crossing into positive territory. A surge in financials (+1.8%) is driving the recovery effort. Eight of the ten sectors remain in the red.
The energy sector (-1.0%) is struggling, even as crude oil climbs 1.8% to $136.70 per barrel. There are some pockets of strength though. Shares of XTO Energy (XTO 69.97, +2.25) surged to an all-time high after the company announced that it will buy privately-held Hunt Petroleum for $4.2 billion in cash and stock.
Dow component Coca-Cola (KO 57.82, +1.96) is up 3.6% after being upgraded to Buy from Hold at Deutsche Bank. Deutsche believes the international side of the company will drive higher volumes.DJ30 +13.27 NASDAQ -12.58 SP500 -2.31 NASDAQ Dec/Adv/Vol 1482/980/416 mln NYSE Dec/Adv/Vol 1961/917/266 mln
10:00 am : A recovery attempt sputters as broad-based weakness offsets a 0.7% gain in financials and a 0.2% advance in consumer staples.
Large-cap financial names are providing early leadership, with strength in JPMorgan (JPM 38.30, +0.79), Bank of America (BAC 30.18, +0.60) and Citigroup (C 20.18, +0.58). The sector fell 7.2% over the last two sessions, hitting a fresh multi-year low in yesterday's trade.
The remaining sectors are under pressure, with notable weakness in telecom (-2.0%), materials (-1.7%) and energy (-1.4%).DJ30 -33.30 NASDAQ -18.71 SP500 -7.90 NASDAQ Dec/Adv/Vol 1615/754/236 mln NYSE Dec/Adv/Vol 2143/658/165 mln
09:45 am : Stern words regarding inflation risks from Fed Chairman Ben Bernanke spurred a sharply lower start to the trading day.
The chairman noted policy makers will "strongly resist" any surge in inflation expectations. Fed funds futures suggest a 12% chance of a 25 basis point increase and 88% chance the Fed will stand pat at the next Fed meeting on June 25.
In economic news, the April trade deficit widened to $60.9 billion from a downwardly revised $56.5 billion in March. The real trade deficit (inflation adjusted) -- which is factored into GDP forecasts -- dipped 0.1% to $46.898 billion from $46.966 billion.DJ30 -56.26 NASDAQ -22.19 SP500 -9.38
09:17 am : S&P futures vs fair value: -14.1. Nasdaq futures vs fair value: -24.0.
09:05 am : S&P futures vs fair value: -13.6. Nasdaq futures vs fair value: -23.3. Futures are trading near their worst levels. Canada unexpectedly left its benchmark rate unchanged at 3.00%, most expected a 25 basis point cut. Overseas markets are under pressure, with the DJ Euro Stoxx is down 0.7%. In Asia, Hong Kong's Hang Seng fell 4.2% and Japan's Nikkei slipped 1.1%.
08:31 am : S&P futures vs fair value: -13.7. Nasdaq futures vs fair value: -18.5. Stocks futures point to a sharply lower open as they slip toward their session lows. The April U.S. deficit increased 7.8% to $60.9 billion, compared to the expected deficit of $60.0 billion.
08:05 am : S&P futures vs fair value: -10.2. Nasdaq futures vs fair value: -12.0. Stock futures point to a lower open following some hawkish comments regarding inflation risks from Fed Chairman Bernanke. Bernanke noted the risk of a substantial economic downturn has fallen, while cautioning there are upside risks to inflation and inflation expectations. The dollar is up 0.8% as a result. Crude oil is back on the rise, up 1.5% to $136.32 per barrel.
06:20 am : S&P futures vs fair value: -7.0. Nasdaq futures vs fair value: -7.5.
06:20 am : FTSE...5855.70...-21.90...-0.4%. DAX...6765.11...-50.52...-0.7%.
06:20 am : Nikkei...14021.17...-160.21...-1.1%. Hang Seng...23375.52...-1026.66...-4.2%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
News 
Market Data 
Discover 
