Market Update 080821 http://biz.yahoo.com/mu/update.html 4:25 pm : Despite resurging commodity prices, the stock market concluded Thursday with a fair gain. All three of the major indices opened lower and traded with sizeable losses, but were able to close well above their lows.
Crude climbed as much as 5.6% to eclipse the $122 per barrel mark. That's the highest price crude has seen in two weeks. Crude prices remain more than 21% below their 52-week high.
The CRB Commodity Index also made a strong advance, climbing 3.7% for the session. Commodities, in general, were helped by a weaker dollar. The dollar shed 1.1% against a basket of major foreign currencies.
The dollar has gained strength during recent sessions as concerns regarding the health of the world economy weighed on currency traders.
While the U.S. economy continues to slog along, data is not at recession-like levels. Initial jobless claims for the week ending Aug. 16 fell 13,000 to 432,000, which is below the 440,000 claims economists forecast. The 4-week moving average for jobless claims remains elevated, advancing to 445,750 from 438,500.
Trading volume was relatively light as there were no market-moving earnings releases. Still, Limited Brands (LTD 20.28, +2.31) and H. J. Heinz (HNZ 51.99, +0.28) reported positive upside EPS surprises. Shares of LTD jumped, reflecting the good news.
Weakness was apparent in large-cap financials and large-cap tech stocks, though they finished off their respective lows. Investment banks concluded the session with a 0.6% loss after being down as much as 2.8%, thanks to help from Merrill Lynch (MER 24.34, -0.07) and Lehman Brothers (LEH 13.72, -0.01). Merrill is reportedly scheduled to meet with a Korean sovereign wealth fund and Bloomberg.com reported Singapore's state-owned fund, Temasek, may increase its stake in shares of MER. Temasek is already the largest shareholder.
Lehman Brothers was upgraded to Buy from Neutral at brokerage firm Ladenburg Thalmann. However, an analyst from Citigroup cut earnings estimates for Lehman Brothers, Goldman Sachs (GS 156.42, -1.83), and Morgan Stanley (MS 37.06, -0.34), according to Reuters.
Weakness in Intel (INTC 23.05, -0.34) and Apple (AAPL 174.29, -1.55), along with other large-cap tech names, weighed on the tech-rich Nasdaq. However, it closed off its session low, which equated to a 1.2% loss.
Strength in oil companies Exxon Mobil (XOM 80.35, +1.54) and ConocoPhillips (COP 85.05, +4.20) helped the Dow and S&P 500 outperform the Nasdaq. The Dow and S&P 500 were down 0.9% and 0.7% at their lows, respectively, before finishing in positive territory.DJ30 +12.78 NASDAQ -8.70 NQ100 -0.3% R2K -0.9% SP400 +0.1% SP500 +3.18 NASDAQ Adv/Vol/Dec 1041/1.56 bln/1715 NYSE Adv/Vol/Dec 1363/912 mln/1752
3:30 pm : The major indices trade near session highs going into the final half-hour of the session and are holding up well considering oil prices have rallied 5.0% to $121.30 per barrel and commodities are up 3.7%.
Volume is very light, with only 689 million shares exchanging hands on the NYSE.
Lehman Brothers (LEH 13.73, +0.01) is at the unchanged mark after rebounding from an 8.7% loss. Lehman's late afternoon recovery came after being upgraded to Buy from Neutral at brokerage firm Ladenburg Thalmann. Ladenburg said Lehman is trading 48% below tangible book value, yet its subsidiary Neuberger Berman should be worth somewhere between $9 billion and $13 billion, meaning Lehman's current price values the rest of the company at less than zero.
The financial sector is down 0.7% after trading with a loss of as much as 2.4%.
Food companies Hormel Foods (HRL 35.42, +0.28) and H. J. Heinz (HNZ 51.93, +0.22) reported quarterly earnings this morning. Heinz was able to offset higher commodity costs with price increases, while Hormel saw profit decline after being unable to pass along increased costs. Both companies are trading modestly higher.DJ30 +24.91 NASDAQ -5.76 SP500 +4.33 NASDAQ Adv/Vol/Dec 1136/1.30 bln/1590 NYSE Adv/Vol/Dec 1396/689 mln/1695
3:05 pm : The major indices recently hit session highs, but have retreated a bit. At their best level the Dow was up 0.4%, the Nasdaq was trading with a 0.3% loss, and the S&P 500 showed a 0.5% gain.
There is no distinguishable news item driving the advance. Crude remains 5% higher and the dollar remains 1% lower.
Losses in the financial sector (-0.8%) have been pared, though. After falling to a new multiyear low in the previous session Fannie Mae (FNM 4.75, +0.35) is sporting a strong gain and helping the sector.DJ30 +43.07 NASDAQ -5.07 SP500 +5.67 NASDAQ Adv/Vol/Dec 1138/1.19 bln/1562 NYSE Adv/Vol/Dec 1458/635 mln/1641
2:30 pm : The S&P 500 is fighting to hold gains. It is currently up nearly 0.1%.
The upward move has been helped by the collective effort of several sectors, notably health care (unch), consumer discretionary (+0.3%), telecom (+0.1%). Each has recently improved its standing after trading in negative ground for much of the session.
Six of the ten economic sectors now trade with gains.DJ30 -7.33 NASDAQ -8.02 SP500 +1.49 NASDAQ Adv/Vol/Dec 1098/1.09 bln/1584 NYSE Adv/Vol/Dec 1316/583 mln/1773
2:00 pm : The S&P 500 continues to vacillate across the neutral line, much improved from earlier levels. At its session low the S&P 500 was down 0.7%.
Commodities continue to trade with healthy gains, outpacing stocks. Oil is up 4.9%, the CRB Commodity Index is up 3.3%, and gold is trading 2.7% higher.
Gold is up 5.9% week-to-date, but remains 24% off its 52-week high. Gold traded near $1,034 per ounce in mid-March.DJ30 -28.74 NASDAQ -14.49 SP500 -1.21 NASDAQ Adv/Vol/Dec 1025/1.00 bln/1643 NYSE Adv/Vol/Dec 1246/535 mln/1825
1:30 pm : The S&P 500 broke into positive territory and the Dow attempted to join it. The two, however, have faltered and are trading in-line with earlier levels. The Nasdaq continues to underperform its counterparts.
The S&P 500 and the Dow have both benefited from mammoth oil companies Exxon Mobil (XOM 80.40, +1.59) and ConocoPhillips (COP 83.79, +2.94).
On the other hand, the Nasdaq has suffered from weakness in Intel (INTC 22.89, -0.50) and Microsoft (MSFT 27.01, -0.28).DJ30 -23.69 NASDAQ -17.03 SP500 -0.93 NASDAQ Adv/Vol/Dec 940/919 mln/1719 NYSE Adv/Vol/Dec 1207/496 mln/1843
1:05 pm : The major indices continue to trade with losses. Weakness in the Dow Jones Industrial Average is most pronounced in shares of American International Group (AIG 19.59, -1.21). General Motors (GM 9.80, -0.36) is also suffering.
The Dow Utilities Average is outperforming the larger Industrial Average, thanks to strength in Exelon (EXC 76.71, +2.44) and Edison International (EIX 46.74, +1.13).DJ30 -44.86 NASDAQ -21.21 SP500 -3.03 NASDAQ Adv/Vol/Dec 885/835 mln/1756 NYSE Adv/Vol/Dec 1116/452 mln/1926
12:35 pm : Stocks continue to oscillate as no leader has emerged to take the major indices into positive ground.
Weakness in Apple (AAPL 172.23, -3.61) and other large-cap tech names is weighing on the Nasdaq 100. The Nasdaq 100 is down nearly 1%, though there is no apparent catalyst behind the drop.
Small-cap stocks are also underperforming the broader market. The Russell 2000 is down 1% as well. One of its primary laggards is Hot Topic (HOTT 5.32, -1.55), which reported after yesterday's close better-than-expected earnings results.DJ30 -46.25 NASDAQ -21.03 SP500 -3.62 NASDAQ Adv/Vol/Dec 888/770 mln/1720 NYSE Adv/Vol/Dec 1084/418 mln/1936
12:05 pm : Resurging oil prices have governed much of the session's action. As a result, the major indices are trading lower, though they are fighting to push into higher ground.
Crude advanced as much as 5.6% to trade above $122 per barrel earlier in the session. That marked the highest price in two weeks. The commodity is currently up 5.0%.
Commodity prices, in general, are being helped by a weaker dollar. The greenback is down 1.0% when compared with a basket of major foreign currencies. It is now down 0.7% year-to-date after breaking into positive territory during recent sessions. The CRB commodity index is up more than 3%, while the energy sector is up 2.4% and the materials sector is up 0.5%.
Rising prices require a larger share of consumer's spending dollars, but apparel retailers are finding favor this session, thanks to strength in Limited Brands (LTD 19.72, +1.75). Limited posted earnings per share results that topped the consensus forecast even though it saw another year-over-year drop in quarterly revenues.
Despite the upside surprise, investors remain concerned that consumer headwinds like high fuel costs and rising unemployment will leave shoppers hard pressed.
Initial jobless claims for the week ending Aug. 16 totaled 432,000, which is below the 440,000 claims economists came to expect. Claims fell 13,000 relative to the prior week's downwardly revised total. Still, the 4-week moving average for jobless claims advanced to 445,750 from 438,500. Though the level is not at recession-like levels it remains elevated.
The session's weakness is focused on the financial sector (-1.4%), led lower by Bank of America (BAC 28.97, -0.32). Bank of America was named in The Wall Street Journal as being the focus of increased probes from the New York Attorney General regarding auction rate securities (ARS).
Also in the sector, an analyst from Citigroup has trimmed earnings per share estimates for Lehman Brothers (LEH 13.14, -0.59), Goldman Sachs (GS 154.64, -3.61), and Morgan Stanley (MS 36.89, -0.51), suggesting they will incur further write-downs, according to Reuters. DJ30 -27.68 NASDAQ -14.60 SP500 -1.19 NASDAQ Adv/Vol/Dec 943/703 mln/1624 NYSE Adv/Vol/Dec 1188/383 mln/1793
11:30 am : The major indices are making a concerted push upward. The indices, however, remain challenged to sustain the move and climb out of negative ground.
Financials represent the worst performing economic sector (-1.9%), led lower by Bank of America (BAC 28.55, -0.74). 84 of the sector's 89 members are trading with losses.
The Wall Street Journal listed Bank of America alongside Goldman Sachs (GS 153.87, -4.38) and Deutsche Bank (DB 83.41, -0.85) as financial institutions facing increased probes from the New York Attorney General regarding Auction Rate Securities (ARS).DJ30 -58.22 NASDAQ -20.69 SP500 -5.19 NASDAQ Adv/Vol/Dec 841/596 mln/1704 NYSE Adv/Vol/Dec 1005/327 mln/1938
11:00 am : Crude prices continue to dominate the session's action. Oil futures extended their gains to a 5.6% advance, but have since curtailed the move to a 4.8% advance. Oil is now trading a bit above $121 per barrel. The move brings oil's week-to-date advance to roughly 6.5%.
While the Dow and S&P 500 have resisted their session lows, the Nasdaq recently hit a loss of 1.2% for a new session low. Their positions have since improved.DJ30 -63.75 NASDAQ -22.88 SP500 -5.88 NASDAQ Adv/Vol/Dec 804/488 mln/1677 NYSE Adv/Vol/Dec 990/274 mln/1893
10:30 am : After ascending from earlier depths, stocks have succumbed to renewed selling pressure. Nonetheless, the major indices remain off their session lows when the Dow and Nasdaq were down 0.9% and the S&P 500 was down 0.7%.
Though oil prices are off their record high by 23%, they are still up 24% year-to-date, boding ill for consumer discretionary stocks. Still, the apparel retail index (+1.6%) is trading higher this session. The index is being helped by Limited Brands (LTD 19.62, +1.65), which posted better-than-expected earnings per share results for its latest quarter. The upside surprise comes despite another year-over-year drop in quarterly revenues.
Limited cited a challenging economic environment as cause for the slide in sales. Concerns related to the economy have represented stiff headwinds for retailers as consumers contend with rising fuel costs and rising unemployment.
The most recent 4-week moving average for jobless claims advanced to 445,750 from 438,500. Though the level is not at recession-like levels it remains elevated.DJ30 -34.20 NASDAQ -12.02 SP500 -2.99 NASDAQ Adv/Vol/Dec 918/338 mln/1447 NYSE Adv/Vol/Dec 1084/200 mln/1732
10:05 am : Stocks have moved upward to their best level of the session, though all three of the major indices remain in negative ground.
Oil has pared some of its gains to trade below $119 per barrel. Still, the greenback is down 0.7%, according to the Dollar Index. A weaker dollar is helping buoy the price of commodities as the CRB Commodity Index is up 2%.
The leading economic indicators for July dipped 0.7%. Economists were looking for a 0.2% decline. The previous reading was revised upward from a 0.1% decline to the neutral mark.
Separately, the Philadelphia Fed Index improved, posting a reading of -12.7. The consensus called for a -12.6 reading. The prior reading remains at -16.3.DJ30 -44.78 NASDAQ -7.97 SP500 -3.96 NASDAQ Adv/Vol/Dec 942/201 mln/1309 NYSE Adv/Vol/Dec 1049/132 mln/1670
09:45 am : Stocks opened sharply lower, but have pared some of their losses. Only the energy sector (+1.6%) and defensive-oriented utilities (+0.2%) are trading higher.
Oil prices are up sharply to their highest level in about two weeks. Oil is currently trading near $119 per barrel.DJ30 -78.81 NASDAQ -15.44 SP500 -7.11 NASDAQ Adv/Vol/Dec 746/104 mln/1394 NYSE Adv/Vol/Dec 770/81 mln/1854
09:15 am : S&P futures vs fair value: -11.1. Nasdaq futures vs fair value: -17.8. Stocks continue toward a downward start. Higher oil prices are not helping early sentiment as crude futures climb 3.6% to trade a bit below $120 per barrel.
09:00 am : S&P futures vs fair value: -10.0. Nasdaq futures vs fair value: -14.5. Stock futures remain depressed. An analyst from Citigroup has trimmed earnings per share estimates for Lehman Brothers (LEH), Goldman Sachs (GS), and Morgan Stanley (MS). The analysis contends the institutions may incur further write downs, according to Reuters. Additionally, The Wall Street Journal reported that the Fed contacted Credit Suisse (CS) regarding a rumor that it pulled a credit line from Lehman Brothers; Credit Suisse said there was no truth to the rumor and it had no intention of pulling it.
08:30 am : S&P futures vs fair value: -6.2. Nasdaq futures vs fair value: -11.5. Stock futures continue to indicate a downward start to the trading session. Initial jobless claims for the week ending August 16 totaled 432,000, which is below the 440,000 claims economists came to expect. Claims fell 13,000 relative to the prior week's downwardly revised total.
08:00 am : S&P futures vs fair value: -8.5. Nasdaq futures vs fair value: -13.0. The tone in premarket action is downbeat. Limited Brands (LTD) reported better-than-expected earnings results for its latest quarter, despite falling revenues. Meanwhile, HJ Heinz (HNZ) and Burger King (BKC) both announced earnings per share results that topped the consensus estimate on rising sales.
06:17 am : S&P futures vs fair value: -8.6. Nasdaq futures vs fair value: -13.5.
06:17 am : FTSE...5329.20...-42.60...-0.8%. DAX...6255.08...-62.72...-1.0%.
06:17 am : Nikkei...12752.21...-99.48...-0.8%. Hang Seng...20392.06...-539.20...-2.6%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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