Market Update 080708 http://biz.yahoo.com/mu/update.html 4:15 pm : The stock market rebounded Tuesday following a late session rally as financial stocks soared and crude prices plummeted. The S&P 500 rose 1.7%, with eight of the ten economic sectors advancing.
The financial sector spiked 5.7% in a rebound bid after falling 17% over the previous few weeks. Beaten-down names Freddie Mac (FRE 13.81, +1.90) and Fannie Mae (FNM 17.94, +2.20) showed significant strength. Fed Chairman Bernanke said the Fed is committed to financial stability, and may continue its emergency lending to investment banks through 2009.
Crude fell 3.8% to $135.99 per barrel, marking a two-day decline of 6.4%. Traders took profits on reports that Iran's president wants to avoid war with Israel and the United States. Commodities as a whole fell 2.4% as the dollar rose 0.5%.
The drop in crude prices lifted energy sensitive names, with transportation stocks climbing 5.0% and airlines gaining 11.2%. The consumer discretionary sector climbed 2.2%.
Conversely, the energy sector slipped 1.5% due to the decline in crude prices.
In corporate news, savings and loan company IndyMac Bancorp (IMB 0.44, -0.27) fell 38% after announcing that it could not successfully raise new capital, and that regulators said the firm is no longer well capitalized. IndyMac will no longer accept new loan submissions.
VMware (VMW 40.24, -12.95) plunged 24% to its lowest level since its August 2007 IPO after the company said it expects fiscal year 2008 revenue growth to be below prior guidance that called for more than 50% growth. The tech company also announced the departure of its president and CEO. EMC Corp (EMC 13.39, -1.75), which has a majority holding in VMware, fell on the news.
Office Depot (ODP 7.12, -3.29) announced that it expects second quarter North American retail same-store sales slipped 10% from last year, citing the sluggish economic environment. The company expects its earnings before interest and taxes margin to shrink by 2% more than previously forecast. Shares of Office Depot fell 32% on the announcement.
In economic news, the latest pending home sales data indicate that the home sales market is still weak, but is not deteriorating at the same rate we saw throughout 2007. According to the National Association of Realtors, May pending home sales fell 4.7%, which is slightly more than the expected decline of 2.8%. However, April was revised higher to a gain of 7.1% from a rise of 6.3%.DJ30 +152.25 NASDAQ +51.10 NQ100 +2.4% R2K +3.7% SP400 +2.2% SP500 +21.39 NASDAQ Adv/Vol/Dec 2025/2.48 bln/844 NYSE Adv/Vol/Dec 2149/1.72 bln/1031
3:30 pm : The stock market is sporting a gain of more than 1% following the broad-based rally that was led by financials (+4.3%).
Crude oil is trading near its session low, with a loss of 3.9%. The decline is giving a sharp 4.5% boost to transportation stocks, with airlines spiking 9%.
After the close, Dow component Alcoa (AA 32.43, -0.96) kicks off second quarter earnings season. The aluminum company is expected to report a drop in profit due to the rise in energy prices.DJ30 +135.80 NASDAQ +39.02 SP500 +17.20 NASDAQ Adv/Vol/Dec 1873/2.06 bln/959 NYSE Adv/Vol/Dec 2004/1.31 bln/1155
3:00 pm : The major indices climb to session highs, led by a spike in financial stocks (+3.0%). Within financials, beaten up names Fannie Mae (FNM 16.52, +0.78) and Freddie Mac (FRE 12.61, +0.70) are showing notable strength.
Seven of the ten sectors are posting a gain, and five of them are up more than 1%.DJ30 +86.30 NASDAQ +30.24 SP500 +10.92 NASDAQ Adv/Vol/Dec 1764/1.82 bln/1053 NYSE Adv/Vol/Dec 1779/1.15 bln/1367
2:35 pm : The stock market is trading with a slight gain, near the unchanged mark. The financial sector (+1.8%) is climbing toward its session high.
According to reports, Anheuser-Busch (BUD 61.62, -0.12) is suing InBev, saying the Belgian brewer's $65 per share, or $45 billion, buyout offer was illegal. BUD recently rejected InBev's offer, declaring that it undervalues Anheuser.DJ30 +27.43 NASDAQ +12.95 SP500 +2.51 NASDAQ Adv/Vol/Dec 1618/1.63 bln/1178 NYSE Adv/Vol/Dec 1576/1.04 bln/1588
2:00 pm : The stock market has retreated into negative territory, trading just below the unchanged mark.
Much of the session's story remains the same as financials (+0.7%) continue to guide trading. The sector has dipped further from its session high, inducing the broader market's decline.
Sources indicate that Russia stated it will use military means if the U.S. deployed a missile defense shield near Russian borders. The stock market's reaction to the news has been negligible.DJ30 -8.64 NASDAQ +5.17 SP500 -1.71 NASDAQ Adv/Vol/Dec 1535/1.48 bln/1249 NYSE Adv/Vol/Dec 1438/950 mln/1702
1:30 pm : The stock market is trading with a slight gain of 0.1% after retreating from its session high when it was up 0.6%.
The financial sector (+1.4%) is outperforming the broader market. The hard-hit regional banks group is outperforming with a gain of 4.5%. The thrifts & mortgages group (+3.3%) is modestly rebounding from its steep 12% drop yesterday.
The computer storage & peripherals group (-6.6%) is posting the largest loss. EMC (EMC 13.59, -1.55) is the main laggard after EMC's majority holding VMware (VMW 39.07 -14.12) said its revenue growth will fall short of previous expectations.DJ30 +25.97 NASDAQ +9.10 SP500 +1.51 NASDAQ Adv/Vol/Dec 1534/1.34 bln/1245 NYSE Adv/Vol/Dec 1440/866 mln/1678
1:00 pm : The S&P 500 holds a modest gain as seven of the ten economic sectors trade in positive territory. Financials are up 1.3%, which is partially offsetting weakness in energy stocks (-2.4%)
Richmond Fed President Lacker reiterated previous Fed statements that "downside risks" to economic growth have "diminished significantly" and that growth will pick up next year. He noted that consumer spending has held up fairly well, but may sag as the rebate checks wear off.DJ30 +46.97 NASDAQ +16.56 SP500 +3.83 NASDAQ Adv/Vol/Dec 1626/1.23 bln/1139 NYSE Adv/Vol/Dec 1506/796 mln/1613
12:30 pm : The major indices climb to session highs, with the Nasdaq outpeforming thanks to strength in large-cap names such as Qualcomm (QCOM 46.34, +0.98) and eBay (EBAY 28.25, +1.33).
Wal-Mart (WMT 58.15, +1.24) is posting a solid gain of 2.2%. According to reports, Merrill Lynch added Wal-Mart to a list of recommended stocks.DJ30 +60.75 NASDAQ +17.61 SP500 +5.18 NASDAQ Adv/Vol/Dec 1595/1.09 bln/1144 NYSE Adv/Vol/Dec 1512/713 mln/1582
12:00 pm : The stock market is trading near the unchanged mark at midday, as a steep drop in crude oil prices is unable to lift the market in the face of some less-than-stellar corporate news.
Crude prices are down 3.5% to $136.41 per barrel, marking a two-day decline of 6.1%. Commodities as a whole are under pressure, with the CRB Index shedding 2.5%.
Although the drop in crude prices is welcomed, corporate news has been less inspiring.
Savings and loan company IndyMac Bancorp (IMB 0.41, -0.30) is down 42% after announcing that it could not successfully raise new capital, and that regulators said the firm is no longer well capitalized. The firm also said it will not accept new loan submissions.
VMware (VMW 39.41, 13.78) plunged 26% to its lowest level since its August 2007 IPO after the company announced the departure of its president and CEO. The tech-company also said it expects fiscal year 2008 revenue growth to be mostly below prior guidance that called for more than 50% growth.
Office Depot (ODP 6.99, -3.42) announced earlier that it expects second quarter North American retail same-store sales slipped 10% from last year, citing the sluggish economic environment. Shares of Office Depot are down 33% on the news.
Six of the ten economic sectors are posting a gain, led by a 2% advance in healthcare stocks. Energy (-2.8%) and materials (-2.4%) are posting steep declines as oil and commodity prices slip, although the two sectors have recovered from their session lows.
In a speech this morning, Fed Chairman Ben Bernanke said that the Fed may continue its emergency lending to Wall Street firms through 2009. The financial sector is up 0.4%.
In economic news, the latest pending home sales data indicate that the home sales market is still weak, but is not deteriorating at the same rate we saw throughout 2007. According to the National Association of Realtors, May pending home sales fell 4.7%, which is slightly more than the expected decline of 2.8%. However, April was revised higher to a gain of 7.1% from a rise of 6.3%.DJ30 +10.42 NASDAQ +5.59 SP500 -1.30 NASDAQ Adv/Vol/Dec 1477/909 mln/1206 NYSE Adv/Vol/Dec 1387/598 mln/1663
11:30 am : The S&P 500 recovers to the unchanged mark following a wave of broad-based buying interest that sends eight of the ten economic sectors in positive territory.
Of note, the financial sector is trading at session highs with a gain of 0.9% thanks to strength in insurance brokers (+2.1%) and life and health insurers (+2.0%). Specialized finance is under pressure as exchanges CME Group (CME 320.66, -13.63) and NYSE Euronext (NYX 44.67, -1.57) slip.
The energy sector pares its loss to -2.6% after being down as much as 3.8%. The modest recovery comes even as crude trades near its worst level, with a loss of 4.1% to $135.67 per barrel.DJ30 +49.50 NASDAQ +12.22 SP500 +2.96 NASDAQ Adv/Vol/Dec 1349/731 mln/1281 NYSE Adv/Vol/Dec 1278/473 mln/1720
11:00 am : The major indices slip to session lows in mostly broad-based weakness and then recover a bit. Crude oil prices are trading near session lows, with a loss of 3.7% to $136.12 per barrel.
The dollar is seeing some buying interest, rising 0.4% against a basket of world currencies. Meanwhile, gold is down 0.7% to $922.00 per ounce.DJ30 -1.63 NASDAQ +0.58 SP500 -3.50 NASDAQ Adv/Vol/Dec 1214/583 mln/1345 NYSE Adv/Vol/Dec 1147/373 mln/1822
10:30 am : The stock market retreats to a modest loss after briefly climbing back into positive territory. Crude oil continues to slide, now down 3.6% to $136.28 per barrel.
The drop in crude prices is weighing on the energy sector (-3.1%), but is giving a boost to the Amex Airline Index (+4.5%).
Financials are trading with a loss of 0.3% and have seen some volatile trade this morning. Savings and loan company IndyMac Bancorp (IMB 0.40, -0.31) is down 44% after announcing that it could not successfully raise new capital, and that regulators said the firm is no longer well capitalized. The firm also said it will not accept new loan submissions.DJ30 +3.90 NASDAQ +3.54 SP500 -3.31 NASDAQ Adv/Vol/Dec 1369/414 mln/1075 NYSE Adv/Vol/Dec 1310/267 mln/1580
10:05 am : Just hitting the wires, May pending home sales fell 4.7%, compared to the expected decline of 2.8%. Separately, wholesale inventories rose 0.8%, which is slightly more than the consensus estimate that called for growth of 0.6%.
The S&P falls into negative territory following the economic reports, although the market's loss is slight. Six of the ten economic sectors are in the red, led by weakness in energy (-2.6%) and materials (-2.5%) as commodity prices slip 1%.
VMware (VMW 40.17, -13.12) plunged 24% to its lowest level since its August 2007 IPO after announcing the departure of its president and CEO. The tech-company also said it expects fiscal year 2008 revenue growth to be mostly below prior guidance that called for more than 50% growth.DJ30 -24.27 NASDAQ +1.40 SP500 -4.79 NASDAQ Adv/Vol/Dec 1414/238 mln/944 NYSE Adv/Vol/Dec 1406/164 mln/1381
09:40 am : The stock market opens flat after premarket losses were reversed in response to a drop in crude oil prices (-2.6% at $137.75) and word that the Fed stands ready to extend its emergency loans to Wall Street firms through 2009.
In corporate news, Office Depot (ODP 8.00, -2.40) is trading down 23% after announcing that its same-store sales fell 10% in the second quarter, citing economic weakness.DJ30 +17.09 NASDAQ +4.23 SP500 -0.63 NASDAQ Adv/Vol/Dec 1021/76 mln/1130 NYSE Adv/Vol/Dec 906/62 mln/1490
09:17 am : S&P futures vs fair value: -0.7. Nasdaq futures vs fair value: -4.0. Futures point to a slightly lower start after recovering from early-morning lows. Office Depot (ODP) announced earlier that it expects North American retail same-stores slipped 10% from last year, citing the sluggish economic environment.
08:58 am : S&P futures vs fair value: -4.3. Nasdaq futures vs fair value: -6.2. Futures continue to suggest a negative start to the trading day as they trade modestly below session highs. Conversely, crude oil is trading near its session lows, down 1.8% to $138.80 per barrel.
08:27 am : S&P futures vs fair value: -4.2. Nasdaq futures vs fair value: -12.5. Futures point to a negative start, but are well off their worst levels. Fed Chairman Bernanke said the Fed may extend its lending to Wall Street firms through 2009. Merrill Lynch (MER) had its second quarter earnings estimates cut at Wachovia, noting Merrill's CDO and bond insurer exposure.
08:00 am : S&P futures vs fair value: -9.0. Nasdaq futures vs fair value: -14.5. Stock futures indicate a lower start to the trading day. Fed Chairman Bernanke will speak about mortgage lending at 8:00 ET. In corporate news, yesterday after the close IndyMac (IMB) announced that it has been unable to raise additional capital and was informed by regulators that it is no longer well capitalized. Crude prices are trading 1.1% lower to $139.79 per barrel. Financial stocks fell in overseas trading, with Japan's Nikkei ending its session with a loss of 2.5%, and as European markets trade more than 1% lower.
06:16 am : S&P futures vs fair value: -8.7. Nasdaq futures vs fair value: -18.5.
06:15 am : FTSE...5388.30...-124.40...-2.3%. DAX...6253.94...-141.76...-2.2%.
06:15 am : Nikkei...13033.10...-326.94...-2.5%. Hang Seng...21220.81...-692.25...-3.2%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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