Market Update 080827 http://biz.yahoo.com/mu/update.html 4:20 pm : Stocks rose Wednesday in a thinly traded and choppy session. An encouraging reading related to the manufacturing sector helped offset disappointment over the third straight gain in oil prices.
Volume was very light, with only 820 million shares exchanging hands on the NYSE -- marking the lowest level in 2008, and the fifth consecutive session marking a new low.
In economic news, the July durable goods orders report is a positive sign for the economy and contradicts the impression of a weak manufacturing sector. Orders rose a strong 1.3% month-over-month, topping the expected unchanged reading. Excluding transportation, orders rose 0.7%, which is better than the median economist forecast that called for a decline of 0.7%.
Enthusiasm over the durable orders report was held in check by a gain in crude prices, which rose 1.8% to $118.31 per barrel. The buying interest in crude was fueled by increased threats that Tropical Storm Gustav may disrupt production in the Gulf of Mexico. The National Oceanic Atmospheric Association said this morning that Gustav is on track to hit Louisiana early Monday as a major hurricane.
Crude oil traders analyzed the government's weekly energy report, which showed a small, but unexpected, decline in crude inventories. Gasoline inventories declined by a smaller-than-expected amount.
Nine of the ten sectors posted a gain. Some of the more beaten down areas saw notable buying interest, with the thrifts and mortgages group climbing 5.4% and homebuilding stocks advancing 6.3%.
Financials rose 1.7%, with Fannie Mae (FNM 6.48, +0.86) and Freddie Mac (FRE 4.73, +0.76) once again rallying. Standard and Poor's reaffirmed the GSE's senior debt ratings after Tuesday's close.
The energy sector was a standout, benefiting from the rise in oil prices. In addition, "crack spreads" widened as the price of gas (+2.4%) rose faster than the price of oil, giving a boost to refiners (+5.0%).
Health care stocks underperformed, falling 0.1%. Amylin Pharmaceuticals (AMLN 20.48, -6.76) tumbled 25%, after it and partner Eli Lilly (LLY 46.87, -0.15) announced that there have been four additional deaths of patients taking the diabetes drug Byetta. Separately, Bristol-Myers Squibb (BMY 21.53, -0.45) and Pfizer (PFE 19.08, -0.20) fell after results from a phase three study of Apixaban, an anti-clotting drug, did not meet expectations.DJ30 +89.64 NASDAQ +20.49 NQ100 +0.7% R2K +1.3% SP400 +1.3% SP500 +10.15 NASDAQ Adv/Vol/Dec 1816/1.56 bln/966 NYSE Adv/Vol/Dec 2383/821 mln/730
3:30 pm : Stocks are giving back some gains going into the final half-hour of the session. All ten sectors have seen pullback.
Tomorrow brings the preliminary second quarter GDP reading and new jobless claims for the week ended Aug. 23. GDP is expected to be revised upward to 2.7% from 1.9%, while jobless claims are forecast to slip slightly to 425,000.
Before the open, retailers will be in focus with earnings reports from Sears Holdings (SHLD 86.75, -0.87) and Tiffany & Co (TIF 39.71, +0.42).DJ30 +59.68 NASDAQ +17.16 SP500 +6.35 NASDAQ Adv/Vol/Dec 1731/1.26 bln/1040 NYSE Adv/Vol/Dec 2243/586 mln/851
3:00 pm : Stocks head toward session highs and then run into some modest resistance. Within the S&P 500, 81% of stocks are posting a gain.
Oil prices are climbing higher, now up 1.7% to $118.29 per barrel.
Airlines are down 3.1%, with selling interest spurred by the gain in oil. Transports as a whole, however, are managing to post a 1.3% advance thanks to gains in railroad stocks (+1.5%).DJ30 +96.40 NASDAQ +27.01 SP500 +10.26 NASDAQ Adv/Vol/Dec 1835/1.14 bln/915 NYSE Adv/Vol/Dec 2368/530 mln/714
2:30 pm : After some choppy action, the major indices are largely unchanged from the previous update. All ten sectors continue to post a gain.
Some of the most beaten down names are posting the largest gains this session. Within the financial sector (+1.1%), Freddie Mac (FRE 4.55, +0.58), Fannie Mae (FNM 6.23, +0.61), MBIA (MBI 12.09, +1.17) and Lehman Brothers (LEH 14.80, +0.77) are posting the largest percent gains. Homebuilders (+5.9%) are also having a solid day, with KB Home (KBH 19.39, +1.80) and Lennar (LEN 12.05, +1.01) seeing the most buying interest.DJ30 +102.67 NASDAQ +27.17 SP500 +10.65 NASDAQ Adv/Vol/Dec 1806/1.06 bln/927 NYSE Adv/Vol/Dec 2327/494 mln/756
2:00 pm : Stocks continue to sport solid gains modestly below session highs.
Market breadth leans positive, although the conviction behind the move is not clear considering that NYSE volume is only 446 million. Advancing issues top declining issues by 3-to-1 on the NYSE, and by 2-to-1 on the Nasdaq.
The Nasdaq Composite (+1.2%) is modestly outperforming its peers, mostly due to strength in large-cap tech (+1.1%). Microsoft (MSFT 27.70, +0.43), Cisco (CSCO 24.54, +0.43) and Intel (INTC 23.47, +0.32) are providing leadership.DJ30 +106.50 NASDAQ +27.45 SP500 +10.74 NASDAQ Adv/Vol/Dec 1806/963 mln/918 NYSE Adv/Vol/Dec 2284/446 mln/772
1:30 pm : The stock market has pulled back a bit from its session high, where it sported a gain of 1.1%. Financials had been leading the advance, previously up 1.9%, but their gains have been pared as the sector is now up 1.2%.
Interest in Treasuries has softened a bit. The 10-year Note is down just 3 ticks, but the story is that general interest in the safety of government-issued securities has pushed the yield on the benchmark Note to its lowest levels in over three months. The 10-year Note is yielding below 3.8% currently.DJ30 +105.52 NASDAQ +26.01 SP500 +10.30 NASDAQ Adv/Vol/Dec 1789/895 mln/921 NYSE Adv/Vol/Dec 2285/416 mln/741
1:00 pm : The stock market extends its recent advance as crude prices (+0.6%, $116.96) give up the majority of their 2.9% advance.
Despite the retreat in oil prices, energy stocks are still holding onto a decent gain of 0.9%. Refiners (+4.7%) are up the most, as refining companies make a larger profit when the spread between gasoline and crude prices widens.
All ten sectors are posting a gain, led by financials (+1.8%) and telecom (+1.8%). Consumer staples (+0.4%) and healthcare (+0.1%) are underperforming on a relative basis.DJ30 +132.39 NASDAQ +31.29 SP500 +12.41 NASDAQ Adv/Vol/Dec 1812/808 mln/862 NYSE Adv/Vol/Dec 2325/378 mln/698
12:30 pm : The major indices spike to session highs. Buying interest is broad-based, although financials (+1.6%) are seeing the bulk of the gains.
19 of the 20 financial sector industry groups are posting a gain. Thrifts & mortgages (+5.1%) and regional banks (+2.5%) lead the way. Industrial REITS (-0.8%) have been unable to recover to positive territory.
There does not appear to be a specific catalyst for the gains, although some of the most beaten down stocks -- Freddie Mac (FRE 4.52, +0.55), Fannie Mae (FNM 6.32, +0.70) and MBIA (MBI 11.96, +1.04) -- are posting the largest advance.DJ30 +100.05 NASDAQ +21.29 SP500 +10.07 NASDAQ Adv/Vol/Dec 1774/709 mln/887 NYSE Adv/Vol/Dec 2269/338 mln/738
12:00 pm : Stocks are posting a modest gain at midday after an encouraging development related to the manufacturing sector offsets disappointment over the third consecutive rise in crude prices. There has not been much corporate news, as has been the case throughout the week.
Volume is very light, with only 287 million shares exchanging hands on the NYSE by the East Coast lunch hour. The current level is on pace to be the lowest of 2008, which follows four consecutive sessions that marked the lowest NYSE volume in 2008.
In economic news, July durable goods orders rose a strong 1.3% month-over-month, topping the expected unchanged reading. Excluding transportation, orders rose 0.7%, which is better than the median economists forecast that called for a decline of 0.7%. The report is a good sign for the economy and contradicts the impression of a weak manufacturing sector.
Enthusiasm over the durable orders report is being held in check by a gain in crude prices, up 1.6% to $118.10 per barrel, although the current level is a significant improvement from the session high of +2.9%. The buying interest in crude is fueled by increased threats that Tropical Storm Gustav may disrupt production in the Gulf of Mexico. The National Oceanic Atmospheric Association said this morning that Gustav is on track to hit Louisiana early Monday as a Category 4 hurricane.
Crude oil traders are also weighing the government's weekly energy report, which showed a small, but unexpected, decline in crude inventories. Gasoline inventories declined by a smaller-than-expected amount.
Nine of the ten sectors are posting a gain. Telecom stocks (+1.1%) lead the way on no specific news item. The energy sector (+0.6%) is outperforming on the gains in oil prices, although the current advance is only a third of the sector's session high.
Healthcare stocks are underperforming with a loss of 0.6%. Amylin Pharmaceuticals (AMLN 21.00, -6.24) is weighing on healthcare, after it and partner Eli Lilly (LLY 46.75, -0.27) announced that there have been four additional deaths of patients taking the diabetes drug Byetta. Separately, Bristol-Myers Squibb (BMY 21.32, -0.66) and Pfizer (PFE 18.99, -0.29) are lower after results from a phase three study of Apixaban, an anti-clotting drug, did not meet expectations.DJ30 +49.83 NASDAQ +8.42 SP500 +4.03 NASDAQ Adv/Vol/Dec 1555/605 mln/1095 NYSE Adv/Vol/Dec 1968/287 mln/997
11:30 am : Stocks post modest gains, slightly below session highs. Nine of the ten sectors are posting a gain. The energy sector (+1.3%) is no longer the leader, overtaken by telecom (+1.3%) as crude futures, up 1.2% to $117.64 per barrel, give up some gains.
Crude oil traded up as much a 2.9% at $119.63 earlier in the session.
Financials are up 0.5%, with Fannie Mae (FNM 6.17, +0.55) and Freddie Mac (FRE 4.44, +0.47) once again leading the way as traders speculate about the future of the two government-sponsored enterprises. Over the last five sessions, shares of Fannie and Freddie are up 39% and 34%, respectively. However, the gains do not come even close to making up recent losses. During the last 30 sessions, shares of Fannie and Freddie are still down 34% and 36%, respectively.DJ30 +57.32 NASDAQ +9.96 SP500 +4.61 NASDAQ Adv/Vol/Dec 1567/524 mln/1001 NYSE Adv/Vol/Dec 2050/244 mln/870
11:00 am : Crude prices approach session highs and then retreat a bit to a 2.1% gain at $118.79 per barrel. Energy traders are digesting an unexpected decrease in crude oil inventories, while gasoline stockpiles posted a smaller-than-expected decline.
The stock market posts a modest gain in mostly broad-based strength as eight of the ten economic sectors advance. However, volume is once again light. During the last four sessions, the NYSE posted consecutive trading volume lows for the year. A total of 192 million shares have exchanged hands on the NYSE today, so this session is on pace to be below yesterday's level of 856 million shares.DJ30 +53.90 NASDAQ +9.70 SP500 +5.24 NASDAQ Adv/Vol/Dec 1564/417 mln/931 NYSE Adv/Vol/Dec 2035/192 mln/830
10:35 am : The Department of Energy just reported that crude oil inventory levels for the week ended Aug. 22 fell 177,000 barrels. Analyst forecast an increase of 1.1 million barrels. Gasoline stockpiles fell 1.2 million barrels. Crude prices were up 1.8% to $118.31 per barrel just prior to the release.
The major indices had rebounded into positive territory thanks to mostly broad-based buying interest and then hold near highs upon the release of the energy data. Nine of the ten sectors are posting a gain. Energy (+1.5%) and telecom (+1.4%) are leading the way. Only healthcare (-0.2%) remains in the red.DJ30 +60.17 NASDAQ +13.47 SP500 +7.01 NASDAQ Adv/Vol/Dec 1548/320 mln/880 NYSE Adv/Vol/Dec 2055/149 mln/770
10:00 am : The stock market fluctuates near the unchanged mark in a tight range. Four of the ten economic sectors are posting a gain.
The energy sector (+1.5%) is posting the largest advance, lifted by the gain in crude prices. Material stocks (+0.6%) are also performing well, with commodities as a whole rising 1.5% as the dollar slips 0.5%.
Consumer discretionary (-0.5%) and healthcare (-0.6%) are the worst performing sectors. Discretionary is seeing a decline due to the increase in oil prices and disappointing reactions to earnings reports from retailers J. Crew (JCG 24.90, -1.74) and Dollar Tree (DTLR 37.39, -1.79).
Amylin Pharmaceuticals (AMLN 23.09, -4.15) is weighing on healthcare, after it and partner Eli Lilly (LLY 46.64, -0.38) announced that there have been four additional deaths of patients taking the diabetes drug Byetta. Separately, Bristol-Myers Squibb (BMY 21.31, -0.67) and Pfizer (PFE 19.00, -0.27) are lower after results from a phase three study of Apixaban, an anti-clotting drug, did not meet expectations.DJ30 -23.29 NASDAQ -1.00 SP500 -0.23 NASDAQ Adv/Vol/Dec 1189/174 mln/1090 NYSE Adv/Vol/Dec 1496/81 mln/1215
09:35 am : The stock market gets off to a sluggish start. A strong durable goods orders report is helping to offset disappointment over a spike in oil prices.
July durable good orders rose a strong 1.3% month-over-month, topping the expected unchanged reading. Excluding transportation, orders rose 0.7%, which is better than the expected decline of 0.7%. The report is a good sign for the economy and contradicts the impression of a weak manufacturing sector.
On the negative side of things, crude oil spiked to a gain of 2.3% at $118.97 per barrel. The buying interest is fueled by fears that Tropical Storm Gustav will disrupt production in the Gulf of Mexico -- the National Oceanic Atmospheric Association said this morning that Gustav is on track to hit Louisiana early Monday as a Category 4 hurricane. Oil prices will remain in focus, with the government to announce its weekly energy report at 10:35 ET.DJ30 -9.85 NASDAQ -1.26 SP500 +1.02
09:16 am : S&P futures vs fair value: +2.0. Nasdaq futures vs fair value: +1.5. The stock market appears to be poised for a slightly higher start. Crude oil futures rally to session highs, now up 2.7% to $119.55 per barrel.
08:57 am : S&P futures vs fair value: +3.7. Nasdaq futures vs fair value: +5.3. A modestly higher open is expected thanks to the strong level of durable good orders. Atlanta Fed President Lockhart said that both headline and core inflation are likely to ease over the rest of 2008 and into 2009. He believes CPI will peak nearly the July year-over-year level of 5.6%.
08:32 am : S&P futures vs fair value: +3.1. Nasdaq futures vs fair value: +6.3. Futures rebound to session highs on the release of a better-than-expected durable goods report. Just reported, July durable goods orders rose 1.3% month-over-month, compared to the expected unchanged reading. Excluding transportation, orders rose 0.7%, versus the expected 0.7% decline. Meanwhile, Crude oil futures (+1.7%, $118.27) climb higher as the National Oceanic and Atmospheric Association says that tropical storm Gustav is on track to hit Louisiana early Monday as a category four hurricane.
08:00 am : S&P futures vs fair value: -2.4. Nasdaq futures vs fair value: -1.8. Futures indicate a slightly lower open to the trading day. Crude oil is up 1.1% to $117.50 per barrel on continued threats of a potential hurricane disrupting production in the Gulf of Mexico. Crude prices will likely go on the move at 10:35 ET with the release of the government's weekly energy inventory report. The only item on the economic calendar is the July durable goods order report at 8:30 ET.
06:22 am : S&P futures vs fair value: -3.5. Nasdaq futures vs fair value: -6.8.
06:21 am : FTSE...5455.90...-14.80...-0.3%. DAX...6267.70...-72.82...-1.2%.
06:21 am : Nikkei...12752.96...-25.75...-0.2%. Hang Seng...21464.72...+408.06...+1.9%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
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