Market Update 080617 http://biz.yahoo.com/mu/update.html 4:20 pm : The stock market fluctuated on Tuesday as traders digested mixed economic reports and highly anticipated earnings reports from Best Buy (BBY 43.32, -2.56) and Goldman Sachs (GS 179.62, -2.47). Eventually, renewed fears within the financial sector sank stocks, with the S&P 500 ending the day 0.7% lower, near session lows.
Goldman Sachs said it earned $4.58 per share in the second quarter, which is down from the previous year, but is 34% higher than Wall Street had forecast. Considering that Goldman rallied 12% in the three sessions leading up to its report, it can be said the market got what it expected -- which limited the report's impact.
Despite Goldman's relatively strong results, financials (-2.9%) ended the day with the largest decline. Regional banks fell 5.7% after Goldman Sachs estimated that U.S. banks may need to raise up to $65 billion in fresh capital, according to reports. American Express (AXP 42.74, -1.94) struggled after Friedman Billings forecast consumer credit quality will continue to deteriorate.
In earnings news, shares of Best Buy spiked higher in premarket trading after the retailer reported better-than-expected earnings, but shares settled 5.6% lower. As a result, the stock was the worst-performing name within the S&P 500 Retailing Index (-1.6%).
Economic news was mixed. May PPI rose by a higher-than-expected amount due to the spike in energy prices. However, core PPI -- which excludes food and energy -- was in-line with estimates. Weak consumer demand has limited the ability of producers to raise prices. The year-over-year increase in PPI is now 7.2%. The year-over-year increase in the core rate is 3.0%.
The housing industry is still depressed, but the pace of declines in housing starts is slowing -- which is a positive for the construction spending portion of GDP forecasts. Housing starts fell 3.3% from the prior month and building permits dipped 1.3%. Homebuilding stocks ended the session 3.4% lower.
Industrial production in May unexpectedly dipped, but the slowdown is still not near the levels seen during the 2001 recession. Specifically, production declined 0.2% from the prior month, which was worse than the forecast of a 0.1% increase. Capacity utilization slipped 0.2% to 79.4%.
Separately, fed fund futures indicate a smaller chance of a Fed rate hike in the near term after The Wall Street Journal reported that the Fed is unlikely to raise the fed funds rates before autumn.DJ30 -108.79 NASDAQ -17.05 NQ100 -0.6% R2K -0.6% SP400 -0.1% SP500 -9.21 NASDAQ Dec/Adv/Vol 1812/1031/1.83 bln NYSE Dec/Adv/Vol 1837/1271/1.09 bln
3:30 pm : The major indices fall to session lows, led by weakness within tech stocks (-0.9%). The tech-heavy Nasdaq is now trailing the S&P 500, after outperforming for most of the session.
Financials (-2.4%) have just hit session lows, yet CME Group (CME 444.12, +24.71), parent company of the Chicago Mercantile Exchange, is up 5.9%. CME announced this morning that it received unconditional clearance to proceed with its acquisition of Nymex from the Department of Justice. CME was also upgraded to Buy from Hold at Citigroup.DJ30 -97.38 NASDAQ -15.67 SP500 -7.69 NASDAQ Dec/Adv/Vol 1797/1052/1.53 bln NYSE Dec/Adv/Vol 1810/1284/838 mln
3:00 pm : The major indices continue to trade in the red. The Dow is underperforming, with 26 of its 30 components posting a loss.
The main laggards within the Dow are IBM (IBM 125.28, -1.43) and American Express (AXP 43.28, -1.41). Energy companies Chevron (CVX 100.49, +1.00) and Exxon Mobil (XOM 88.71, +0.72) are showing the most strength.DJ30 -67.50 NASDAQ -4.98 SP500 -3.45 NASDAQ Dec/Adv/Vol 1653/1161/1.36 bln NYSE Dec/Adv/Vol 1687/1375/749 mln
2:30 pm : Selling interest within consumer discretonary (-1.1%) and financial (-2.2%) stocks puts the major indices on the defensive. Only two sectors are in the green -- energy (+1.7%) and materials (+0.8%).
The Amex Airline Index is posting a solid 2.4% gain as crude prices slip 0.8%. However, soaring oil prices -- which are up 39% this year -- have taken a toll on airlines year-to-date. The index is down 46% this year.DJ30 -81.66 NASDAQ -6.74 SP500 -5.73 NASDAQ Dec/Adv/Vol 1645/1154/1.26 bln NYSE Dec/Adv/Vol 1692/1355/685 mln
2:00 pm : The major indices are trading with modest losses. Decliners outpace advancers by 6-to-5 on the NYSE and by 7-to-5 on the Nasdaq.
The Nasdaq is outperforming on a relative basis, thanks to strength in several large-cap names. Apple (AAPL 181.25, +4.41), Research In Motion (RIMM 143.24, +2.26) and Amazon.com (AMZN 84.16, +2.43) are seeing some buying interest this session.DJ30 -59.03 NASDAQ -2.70 SP500 -2.86 NASDAQ Dec/Adv/Vol 1627/1155/1.15 bln NYSE Dec/Adv/Vol 1640/1382/619 mln
1:30 pm : The major indices remain in the red, but pare some of their losses in a broad-based recovery effort.
Mid-cap stocks are outperforming their large-cap counterparts, as demonostrated by the 0.4% rise in the S&P 400. The index is benefiting from a rise in shares of energy companies, with notable strength in Denbury Resources (DNR 38.61, +2.61) and Newfield Exploration (NFX 67.15, +3.23).DJ30 -54.88 NASDAQ -3.75 SP500 -2.51 NASDAQ Dec/Adv/Vol 1636/1134/1.08 bln NYSE Dec/Adv/Vol 1647/1375/574 mln
1:00 pm : After falling to its session low, down 0.5%, the stock market has taken a slight step higher to trade at previous levels. However, all three of the major indices remain in the red.
Financials remain depressed this session. The sector is trading 1.7% lower, worse than any of the other major economic sectors.
On the other hand, energy is trading 1.1% higher, leading the other economic sectors. Energy has been sporting a solid gain for much of the session, despite a 0.8% decline in oil prices. Crude is currently trading hands at $133.50 per barrel.DJ30 -80.03 NASDAQ -8.64 SP500 -5.40 NASDAQ Dec/Adv/Vol 1684/1074/982 mln NYSE Dec/Adv/Vol 1691/1314/521 mln
12:30 pm : The stock market is trading near session lows.
Wal-Mart (WMT 58.76, -0.55) cut its fiscal year 2009 capital expenditures forecast, citing the company's ability to grow "more efficiently with reduced capital expenditures." The retailing giant now expects capital expenditures of $13.0 billion to $14.0 billion, down from its previous forecast of $13.5 billion to $15.2 billion.
European markets ended their sessions with solid gains, but settled down from their best levels as U.S. stocks went on the retreat. A strong showing from consumer discretionary, financial and material stocks helped lift the DJ Euro Stoxx to a 0.6% gain.DJ30 -67.74 NASDAQ -6.20 SP500 -4.01 NASDAQ Dec/Adv/Vol 1636/1101/899 mln NYSE Dec/Adv/Vol 1628/1348/477 mln
12:00 pm : The stock market is trading with modest losses after giving up opening gains. Investors are digesting mixed economic news, and earnings reports from a major retailer and a Wall Street investment bank.
Goldman Sachs (GS 180.35, -1.74) earned $4.58 per share in the second quarter, a dip from the previous year but blowing past estimates by 34%. Despite the better-than-expected results, Goldman's stock is down 1%. Considering that Goldman rallied 12% in the three sessions leading up to its report, it can be said the market got what it expected -- which is limiting the report's impact on the broader market.
Financials (-2.0%) are underperforming, with notable weakness within regional banks (-4.8%) on cautious brokerage comments and renewed fears the worst is yet to come.
Shares of Best Buy (BBY 44.08, -1.79) spiked higher in premarket trading after the retailer reported better-than-expected earnings, but shares have turned south in regular trading. As a result, the stock is the worst-performing name within the S&P 500 Retailing Index (-1.3%).
Economic news was mixed. May PPI rose by a higher-than-expected amount due to the spike in energy prices. However, core PPI -- which excludes food and energy -- was in-line with estimates -- as weak consumer demand has limited the ability of producers to raise prices. The year-over-year increase in PPI is now 7.2%. The year-over-year increase in the core rate is 3.0%.
Separately, the housing industry is still depressed, but the pace of declines in housing starts is slowing -- which is a positive for the construction spending portion of GDP forecasts. Housing starts fell 3.3% from the prior month and building permits dipped 1.3%.
Industrial production in May dipped by a larger-than-expected amount, but the slowdown is still not near the levels during the 2001 recession. Specifically, production declined 0.2% from the prior month, which was worse the forecast of a 0.1% increase. Capacity utilization dipped 0.2% to 79.4%.
In Treasury trading, the long end of the curve saw a boost on reports that the Fed is unlikely to raise the Fed funds rates before autumn. The 10 year note is up 16 ticks, pushing its yield down to 4.20%.DJ30 -75.15 NASDAQ -7.05 SP500 -4.67 NASDAQ Dec/Adv/Vol 1631/1084/810 mln NYSE Dec/Adv/Vol 1611/1337/428 mln
11:35 am : The stock market falls to a session low, although its loss is modest.
Financials (-2.0%) extend their losses. Regional banks are under selling pressure, with a dip of 4.8%. SunTrust Banks (STI 40.93, -3.62) and Regions Financial (RF 12.87, -0.88) were reinitiated with an Underperform at Friedman Billing.
Crude (-0.2% at $134.40) briefly touched positive territory after trading down nearly 2.0% in earlier trade. Crude traded in an extremely choppy manner yesterday, hitting a record high near $140 and then falling as much as $7.DJ30 -60.90 NASDAQ -4.42 SP500 -3.63 NASDAQ Dec/Adv/Vol 1593/1067/699 mln NYSE Dec/Adv/Vol 1536/1392/366 mln
11:00 am : The stock market is posting a slight gain after spending much of the past half-hour in negative ground. The energy sector (+1.6%) is providing leadership.
In commodity trading, crude prices are down 0.2% to $134.38 per barrel and commodities as a whole are down 0.4%. In currency trading, the dollar is flat on the session as gains against the pound offset losses against the euro.DJ30 -14.57 NASDAQ +2.20 SP500 +1.28 NASDAQ Dec/Adv/Vol 1473/1141/535 mln NYSE Dec/Adv/Vol 1377/1492/286 mln
10:30 am : The stock market is fluctuating near the unchanged mark, in negative territory. Financials (-0.9%) are acting as the major drag, with 61% of its components in the red. By comparison, 49% of S&P 500 components are posting a loss.
Shares of Best Buy (BBY 44.28, -1.60) spiked higher in premarket trading after the retailer reported better-than-expected earnings, but shares have turned south ahead of the company's conference call. As a result, the stock is the worst-performing name within the S&P 500 Retailing Index (-1.0%).DJ30 -23.85 NASDAQ -5.47 SP500 -1.02 NASDAQ Dec/Adv/Vol 1508/1014/379 mln NYSE Dec/Adv/Vol 1397/1402/208 mln
10:00 am : The stock market is trading with a slight gain, and is keeping close to the unchanged mark. Five of the ten sectors are trading higher, led by energy (+1.3%) and materials (+0.8%).
Despite Goldman Sachs' (GS 184.10, +2.01) blowout second quarter, financials are underperforming with a loss of 0.2%. Goldman's stock is up 1.1%, which seems small when taking into account that the Wall Street firm reported a quarterly profit of $4.58 per share -- topping estimates by 34%. Considering that Goldman rallied 12% in the three sessions leading up to its report, it can be said the market got what it expected -- which is limiting the report's impact on the broader market.DJ30 +16.45 NASDAQ -1.30 SP500 +3.41 NASDAQ Dec/Adv/Vol 1413/949/210 mln NYSE Dec/Adv/Vol 1222/1488/121 mln
09:40 am : Stocks get off to a modestly higher start to the trading day. Sentiment was lifted by decreased rate hike expectations and better-than-expected earnings reports from Best Buy (BBY) and Goldman Sachs (GS).
Economic news was mixed. May PPI rose a higher-than-expected amount due to the spike in energy prices, but core PPI -- which excludes food and energy -- was in-line with estimates. Separately, the housing industry is still depressed, but the pace of declines in housing starts is slowing -- which is a positive for the construction spending portion of GDP forecasts.DJ30 +30.07 NASDAQ +0.76 SP500 +4.04
09:15 am : S&P futures vs fair value: +8.0. Nasdaq futures vs fair value: +5.0. Futures are trading near their session highs as better-than-expected earnings and decreased rate hike expectations lift sentiment. May Industrial production fell 0.2% month-over-month (consensus +0.1%), compared the prior reading that saw a decline of 0.7%. Capacity utilization dipped to 79.4%, fall short of the median estimate of 79.7%. Futures have a muted response to the data. Meanwhile, European stocks are rallying with London's FTSE up 2.2%, Germany's Dax up 1.7% and France's CAC 40 up 1.3%. The European markets are benefiting from strength in commodity and financial stocks, as expectations of rate hikes ease.
08:54 am : S&P futures vs fair value: +6.3. Nasdaq futures vs fair value: +3.0. Futures continue to indicate a positive start to the trading day. Crude oil is down 1.2% to $133.00 barrel after hitting a all-time high near $140 in yesterday's trade.
08:35 am : S&P futures vs fair value: +5.9. Nasdaq futures vs fair value: +2.0. Futures trade near session highs as traders digest economic data and better than expected earnings from a major retailer and Wall Street investment bank. Just hitting the wires, May PPI is up 1.4% month-over-month (consensus +1.0%) and up 7.2% year-over-year (consensus 6.8%). Excluding food and energy costs, core PPI is up 0.2% month-over-month (consensus +0.2%) and 3.0% year-over-year (consensus +3.0%). Separately, May housing starts came in at 975,000 (consensus 980,000) and building permits were 969,000 (consensus 960,000). In earnings news, Goldman Sachs (GS) handily topped its earnings estimates by $1.16 per share. Best Buy (BBY) reported earnings of $0.43 per share, which is $0.06 better than expectations. The electronics retailer also reaffirmed its 2009 earnings guidance.
08:00 am : S&P futures vs fair value: +5.0. Nasdaq futures vs fair value: +0.2. Futures point to a postive start to the trading day as traders await several key economic and earnings reports. On the economic front, the PPI and housing starts/building permits reports are set for release at 8:30 ET, while industrial production is set for release at 9:15 ET. In earnings news, Goldman Sachs (GS) and Best Buy (BBY) are scheduled to report this morning.
06:12 am : FTSE...5886.40...+91.80...+1.6%. DAX...6820.84...+90.99...+1.4%.
06:12 am : Nikkei...14348.37...-6.00...-0.0%. Hang Seng...23057.99...+28.30...+0.1%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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