Market Update 080808 Olympic started today http://biz.yahoo.com/mu/update.html 4:15 pm : Stocks concluded the week's final session on a strong note, thanks to sinking oil prices. The major indices each advanced more than 2% to close near their session highs. In turn, the Dow, Nasdaq, and S&P 500 finished the week up by 3.6%, 4.5%, and 2.9%, respectively.
Friday's plus-4% drop in oil prices induced buying in stocks. Oil finished the week more than 8% lower, though is still up 20% year-to-date.
Helping trim oil prices was strength in the U.S. dollar. The greenback found favor after cautions that the European economy would weaken, most likely an adverse effect of tighter credit and higher input costs. The dollar index advanced 1.8%.
Fixed income investors bid up the price of bonds as a stronger dollar, lower oil prices, and encouraging unit labor cost data helped ease inflationary expectations. According to government data, unit labor costs were up just 1.3% during the second quarter, which is down from the pace in the previous two quarters.
In corporate news, Merrill Lynch (MER 26.87, +0.77) is planning to repurchase auction rate securities from its clients, but the program is being placed under further review for not containing certain investor safeguards. Bank of America (BAC 32.25, +0.73) disclosed certain class actions have been filed against it alleging violations connected with the sale of auction rate securities. Both companies' stocks finished higher.
Battered bond insurer MBIA (MBI 8.57, +0.29) also made gains after announcing this morning a surprising second quarter profit of $0.96 per share, excluding extraordinary items. The company also announced the resumption of its share buyback plan.
Though the financial sector was able to finish 3.5% higher, not every component fared so well. Hard hit mortgage giant Fannie Mae (FNM 9.05, -0.90) unveiled a wider-than-expected loss earlier today and further disappointed investors by slashing its quarterly dividend to $0.05 from a $0.25.
In the end, only the energy sector (-0.6%) finished the session with a loss. It concluded the week 4% lower. DJ30 +302.89 NASDAQ +58.37 NQ100 +2.5% R2K +2.9% SP400 +2.2% SP500 +30.25 NASDAQ Adv/Vol/Dec 1999/2.21 bln/806 NYSE Adv/Vol/Dec 2369/1.24 bln/777
3:30 pm : Heading into the final stretch the major indices continue sporting attractive gains.
Oil has shed 4.3% on the session, bringing futures prices down below $115 per barrel. The dollar continues showing strength; the dollar index is up 1.7%.DJ30 +298.08 NASDAQ +51.62 SP500 +28.19 NASDAQ Adv/Vol/Dec 1960/1.83 bln/824 NYSE Adv/Vol/Dec 2323/877 mln/810
3:00 pm : The stock market continues to boast strong, broad-based gains. Energy (-1.3%) nearly joined the other economic sectors in the green earlier, but succumbed to selling pressure instead; it is still the sole sector trading with a loss.
At their current levels, the Dow is looking at a week-to-date gain of 3.6%, while the Nasdaq and S&P 500 eye respective gains of 4.3% and 2.7% for the week.
At $115 per barrel oil is facing a week-to-date decline of 8%. Crude prices are now 28% off their 52-week high, but still 40% above their 52-week low.DJ30 +305.49 NASDAQ +53.95 SP500 +28.34 NASDAQ Adv/Vol/Dec 1957/1.65 bln/799 NYSE Adv/Vol/Dec 2333/791 mln/796
2:30 pm : The stock market continues to trade with hefty gains after taking another step higher. The Dow Jones Industrial Average is now up 2.7%.
All 30 components in the Dow are trading higher. Home Depot (HD 26.29, +1.81) is posting the largest percentage-based advance in the index. The stock is currently at a fresh session high.
Sliding oil prices continue to bolster optimism among market participants. Crude is down 4% and trading near $115 per barrel.
Oil's pullback bodes well for inflation expectations. Treasuries at the long end of the yield curve are seeing interest as a result, since higher inflation offsets real returns of fixed securities. The 30-year Bond is up 4 ticks, but the 10-year Note is down 6 ticks.DJ30 +314.37 NASDAQ +56.78 SP500 +29.41 NASDAQ Adv/Vol/Dec 1963/1.51 bln/784 NYSE Adv/Vol/Dec 2348/728 mln/773
2:05 pm : All three of the major indices are now trading with a gain in excess of 2% as broad-based buying leads equities higher. The Dow is now up 8.3% from its 52-week low, while the Nasdaq is up 11.7% and the S&P 500 is up 7.7% from their respective 52-week lows.
Small and mid-cap stocks are also faring well in Friday's trade. The Russell 2000 is up 2.7% and the S&P 400 is up 2.0%.
As a side, MGM Mirage (MGM 33.78, +1.18) had its outlook revised to Negative from Stable at Fitch. MGM's ratings were affirmed, however.DJ30 +287.17 NASDAQ +51.01 SP500 +26.29 NASDAQ Adv/Vol/Dec 1935/1.38 bln/796 NYSE Adv/Vol/Dec 2310/663 mln/786
1:30 pm : The stock market climbs to fresh session highs, as consumer discretionary stocks rally (+4.4%). After a volatile week, the major indices are set to make some solid gains. Week-to-date, the Dow, Nasdaq and S&P 500 are up 3.3%, 4.2% and 2.4%, respectively.
The energy sector remains in negative territory (-0.8%) as the price of crude tumbles 3.1%. The sector's decline is limited, however, as strength in refining stocks (+4.9%) offsets weakness in producers (-2.5%). The recent advance in crude prices outpaced increases in gasoline prices, which has cramped profit margins at refiners. As crude prices fall, refiners stand to see larger profit margins.
European markets did not fare as well as the current S&P 500 advance, but did rebound out of negative territory after the U.S. market rallied. London's FTSE ended its session up 0.2%, Germany's DAX rose 0.3% and France's CAC climbed 0.8%.DJ30 +264.78 NASDAQ +50.75 SP500 +25.16 NASDAQ Adv/Vol/Dec 1903/1.26 bln/800 NYSE Adv/Vol/Dec 2261/607 mln/827
1:00 pm : The major indices continue to trade near their best levels of the session. Despite a mixed opening the mood on Wall Street has been upbeat.
85% of the S&P 500 components are showing gains. International conglomerate General Electric (GE 29.48, +0.91) is providing the most leadership, though there is no distinct news item behind its advance.
The dollar continues to display relative strength, which is undercutting oil prices and other commodity prices as well. Oil is down 3.3% at $116 per barrel and the CRB Commodity Index is down 2.2%.DJ30 +231.56 NASDAQ +45.57 SP500 +21.94 NASDAQ Adv/Vol/Dec 1878/1.15 bln/814 NYSE Adv/Vol/Dec 2215/557 mln/851
12:30 pm : Stocks have moved another leg higher, giving the Dow and the Nasdaq a 2% advance for the session. Until the recent move, trading had been generally directionless for much of the morning.
The consumer discretionary sector is now up 4.1% to its session high. Energy (-1.1%) continues to lag with broad-based weakness in the sector. However, oil and gas refiners are performing well; the industry group is up 4.5%.DJ30 +239.30 NASDAQ +47.12 SP500 +22.33 NASDAQ Adv/Vol/Dec 1865/1.03 bln/807 NYSE Adv/Vol/Dec 2211/509 mln/824
12:05 pm : The sizable slide in oil prices can be credited for the session's upbeat tone. Oil is currently down more than 3% this session, trading near $116 per barrel. Oil prices have shed more than 7% week-to-date, though they remain up 21% year-to-date.
A stronger dollar is helping to undercut oil prices. The greenback has garnered attention following cautions that the European economy would weaken. As tighter credit and higher costs hit the continent, growth prospects become dimmed, making it less likely the ECB will hike interest rates. The greenback is benefiting from a rotation trade that is lifting the dollar index 1.6% higher.
The slide in oil prices also helps relieve heightened inflation expectations, as does encouraging second quarter labor cost data. Labor unit costs were up 1.3% for the second quarter, which is down from the first quarter's 2.5% increase and the preceding fourth quarter's 4.5% increase.
Outside of those macro concerns, Merrill Lynch (MER 25.68, -0.42) is planning to buy back auction rate securities from its clients. They are predominately AAA and not credit impaired. Meanwhile, Bank of America (BAC 31.86, +0.34) is being subpoenaed in connection with auction rate securities. Shares of BAC have been downgraded at UBS to Underweight from Neutral.
Elsewhere in the financial sector (+1.3%), bond insurer MBIA (MBI 8.84, +0.56) is up after announcing an adjusted profit of $0.96 per share for its most recent quarter. A laggard has been Fannie Mae (FNM 9.11, -0.84). It announced a disappointing loss and also slashed its dividend this morning.DJ30 +196.14 NASDAQ +41.67 SP500 +18.22 NASDAQ Adv/Vol/Dec 1831/907 mln/800 NYSE Adv/Vol/Dec 2151/452 mln/869
11:35 am : The stock market is chugging along sideways, continuing to sport healthy gains. The advance is largely broad-based.
The financial sector (+1.8%), which has been key in previous rallies, is performing well. Bond insurer MBIA (MBI 9.00, +0.72) is up considerably after announcing this morning an adjusted profit of $0.96 per share for its most recent quarter. A laggard in the financial sector has been mortgage guarantor Fannie Mae (FNM 9.38, -0.57), which has actually pared losses since announcing a disappointing loss and slashing its dividend this morning.
Still, gains are most pronounced among oil sensitive industries. The S&P Retailing Index is up 4.1% and the Amex Airline Index is up 6.7%.DJ30 +198.17 NASDAQ +39.04 SP500 +17.11 NASDAQ Adv/Vol/Dec 1831/788 mln/756 NYSE Adv/Vol/Dec 2127/399 mln/861
11:00 am : Stocks continue to trade with strong gains, but have eased off their session high. At its best level, the S&P 500 was up almost 1.6%.
Nine of the ten economic sectors are trading with gains. Only energy is in the red; it is down 0.9%.
Consumer discretionary stocks are atop the list of gainers. The sector is up 2.9%, benefiting from leadership in McDonald's (MCD 64.00, +2.14). McDonald's announced earlier today that July comparable sales increased 8%.DJ30 +193.70 NASDAQ +36.71 SP500 +18.11 NASDAQ Adv/Vol/Dec 1802/632 mln/714 NYSE Adv/Vol/Dec 2130/322 mln/799
10:30 am : All three of the major indices are up more than 1% as the drop in oil prices continues to stir buying in stocks.
Oil futures were down as much as 3.6% to trade below $116 per barrel. Helping drive the decline in oil prices is a stronger dollar.
European Central Bank head, Jean-Claude Trichet, recently cautioned the economy would weaken in the Eurozone. Tighter credit paired with higher fuel and material costs are dimming growth prospects overseas and making it less likely the ECB will hike rates in the near future. That notion is spurring interest in the dollar as the euro loses luster. The euro is down 1.8% against the dollar.DJ30 +200.95 NASDAQ +42.34 SP500 +18.71 NASDAQ Adv/Vol/Dec 1809/480 mln/637 NYSE Adv/Vol/Dec 2085/250 mln/779
10:00 am : Crude oil futures slipped as much as 3%, helping the major indices stretch upward. The slide in oil prices bodes well for reducing inflation expectations.
Second quarter labor cost data also bode well for lowering inflation expectations. Announced ahead of the opening bell, labor unit costs were up 1.3% for the second quarter. The increase reflects a decelerating rate of increase from the first quarter's 2.5% increase and the preceding fourth quarter's 4.5% increase.
Separately, wholesale inventories for June were up 1.1%, which is more than the 0.6% increase economists came to expect. Inventories for May were revised upward to reflect a 0.9% increase.DJ30 +60.82 NASDAQ +19.19 SP500 +5.31 NASDAQ Adv/Vol/Dec 1580/235 mln/739 NYSE Adv/Vol/Dec 1670/129 mln/1047
09:50 am : Stocks are showing decent gains in the early going. Seven of the economic sectors remain in positive ground.
Energy (-2.3%) is the weakest sector as oil prices take a 1.9% slide to $117.75 per barrel. The drop is partly due to relative strength in the dollar. The dollar index is up 1.4%.
The dollar is also impacting the materials sector, which is down 1.7%.DJ30 +27.52 NASDAQ +11.52 SP500 +2.83 NASDAQ Adv/Vol/Dec 1437/146 mln/817 NYSE Adv/Vol/Dec 1510/87 mln/1124
09:15 am : S&P futures vs fair value: -2.1. Nasdaq futures vs fair value: +1.2. Stock futures continue to trade in an uncertain direction. Early morning sentiment had largely been positive, but as the opening bell nears the tone has weakened.
09:00 am : S&P futures vs fair value: +0.7. Nasdaq futures vs fair value: +3.5. A relatively mixed tone is indicated during premarket action. McDonald's (MCD) announced global same-store sales climbed 8% in July. Its U.S. comparable-store sales were up 6.7%. Meanwhile, Merrill Lynch (MER) is planning to buy back auction rate securities from its clients. They are mostly AAA and not credit impaired. Additionally, Korea Investment Corp. disclosed a 7.4% stake in Merrill in a regulatory filing.
08:30 am : S&P futures vs fair value: -0.5. Nasdaq futures vs fair value: +1.8. The initial upbeat tone in premarket trading continues to weaken. Second quarter nonfarm productivity increased 2.2%, though economists were looking for 2.5% after the first quarter's 2.6% increase. Unit labor costs were up 1.3% after climbing 2.5% in the first quarter. Economists thought unit labor costs would climb 1.4%. Separately, relative strength in the dollar is helping push oil prices lower.
08:00 am : S&P futures vs fair value: +1.0. Nasdaq futures vs fair value: +3.8. There is a slightly positive tone to premarket trading, though beleaguered mortgage giant Fannie Mae (FNM) reported a wider-than-expected loss for its fiscal second quarter. The company also announced plans to slash its dividend.
06:17 am : S&P futures vs fair value: +8.0. Nasdaq futures vs fair value: +9.8.
06:17 am : FTSE...5491.10...+13.60...+0.3%. DAX...6568.03...+24.54...+0.4%.
06:17 am : Nikkei...13168.41...+43.42...+0.3%. Hang Seng...21885.21...-218.99...-1.0%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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