Stock Market Update
Updated: 03-Nov-09
The market at 14:30 ET
Dow: -17.99...
Nasdaq: +1.97... S&P: +1.90...
NYSE Vol: 838 mln.. Adv: 1587.. Dec: 1391
Nasdaq Vol: 1.47 bln.. Adv: 1308.. Dec: 1329
Moving the Market
Sector Watch
Buffett and Berkshire bid for Burlington Northern Dollar spikes sharply, then makes pullback; meanwhile, gold hits record highs
Strong: railroads; household appliances; info tech consulting and services; gold; agricultural products; coal and consumable fuel; diversified metals; building products; electronic components and equipment
Weak: construction materials; semiconductors; semiconductor equipment; broadcasting; consumer finance; brewers; automakers; department stores; home entertainment software
14:30 ET
Dow -17.99 at 9774.75, Nasdaq +1.97 at 2051.91, S&P +1.90 at 1044.78
[BRIEFING.COM] The S&P 500 has made its way to its best level of the session as the U.S. dollar surrenders its gains against foreign currencies. The Dollar Index is now up fractionally after being up nearly 0.8% earlier this session.
The dollar's drop has helped drive the CRB Commodity Index to a 1.1% gain and a session high. With commodities looking stronger, materials stocks and energy stocks have each made their way to gains of 1.5%.
14:00 ET
Dow -25.17 at 9764.27, Nasdaq -2.13 at 2047.07, S&P +0.03 at 1042.91
[BRIEFING.COM] Shares of automakers are down 1.7%, collectively, following monthly sales results from several major players. Ford (F 7.47, -0.11) said its October sales increased 3.1%, while Toyota Motor (TM 78.92, -0.20) said its U.S. sales in October declined 3.5% from the previous year. Nissan Motor (NSANY 14.31, -0.04) reported a 5.6% increase in North America sales during October and General Motors posted a 4% year-over-year gain for U.S. sales in October.
Meanwhile, the broader market continues to lack direction as it trades in choppy fashion along the neutral line.
13:30 ET
Dow -42.63 at 9746.52, Nasdaq -5.85 at 2044.87, S&P -2.54 at 1041.15
[BRIEFING.COM] Pharmaceutical stocks are having a tough outing. As a group they have lost 1.1% this session.
The slide comes even though major drug company and Dow component Johnson & Johnson (JNJ 59.03, -0.46) reaffirmed this morning its in-line earnings outlook for fiscal 2009 and generic drug maker Teva Pharmaceuticals (TEVA 50.01, -1.18) posted better-than-expected earnings for its latest quarter.
Amid their declines the health care sector is down 0.4%.
13:00 ET
Dow -34.01 at 9755.43, Nasdaq -7.17 at 2042.03, S&P -1.97 at 1040.91
[BRIEFING.COM] Though the S&P 500 recently managed to poke into positive territory, it remains hampered by widespread weakness as a result of listless trade and a stronger U.S. dollar.
The Dollar Index is currently up 0.3% after a pullback from earlier levels. That has helped give a lift to the broader market and garnered additional support for commodities.
In the face of gains by the greenback, gold prices have spiked to a new record high. They are currently up 2.9% to $1084.20 per ounce. That has helped drive the SPDR Gold Trust (GLD 106.35, +2.40) to its own record highs and prop up the materials sector, which is up 1.0%.
Oil prices started the session lower, but have made their way to a 1.5% gain at $79.30 per barrel. That has helped drive the energy sector to a 0.8% gain.
However, industrials make up the best performing major sector. It is currently up 1.1% amid strength in rail stocks, which are collectively up 11.3% following a bid from Berkshire Hathaway (BRK.A 100,350.00, +1,600) for Burlington Northern Santa Fe (BNI 97.59, +21.52) for $100 per share in cash and stock.
Still, the broader market remains largely unimpressed by those gains and so the other seven major sectors have been stuck in the red.
Financials had been one of the worst performing sectors, but recent volatility in the sector has left it with a rather modest 0.4% loss. MasterCard (MA 216.31, -6.34) has been a drag on the sector since hosting an uninspiring conference call that overshadowed its better-than-expected third quarter earnings.
In economic news, factory orders for September increased a stronger-than-expected 0.9%, but that didn't do anything to inspire participants.
12:30 ET
Dow -473.84 at 9741.60, Nasdaq -7.99 at 2041.21, S&P -2.69 at 1040.19
[BRIEFING.COM] A lack of leadership has left the broader equity market to continue trading in choppy fashion. Listless trade has also left the major averages in negative territory.
Of the major sectors in the broader market, only industrials (+1.0%), energy (+0.8%), and materials (+0.8%) have managed to make a gain.
12:00 ET
Dow -50.11 at 9739.33, Nasdaq -11.17 at 2038.03, S&P -3.70 at 1039.18
[BRIEFING.COM] The headline indices are trading with moderate losses, but the strength among mid-caps has helped the S&P 400 ascend to a 0.2% gain.
Oshkosh Truck (OSK 35.11, +3.28) is a primary leader among mid-caps. The company posted this morning better-than-expected adjusted earnings of $0.27 per share. Meanwhile, Kansas City Southern (KSU 26.23, +2.15) has also shown leadership; the company has been the center of chatter regarding its status as another possible takeover candidate among rail companies.
11:30 ET
Dow -60.84 at 9726.11, Nasdaq -12.53 at 2036.67, S&P -5.44 at 1037.75
[BRIEFING.COM] Financials have fallen back under another fit of selling pressure, but they remain above session lows. Still, the sector's 1.2% loss is worse than that of any other major sector.
Consumer finance stocks make up the worst performers in the financial sector. As a group, they are down 2.7%. Multiline insurers are providing some balance, however. The group is up a rather impressive 0.8% as AIG (AIG 35.49, +1.17) and Genworth Financial (GNW 10.36, +0.19) find support.
Industrials continue to make up the best performing major sector, however. The sector is currently up 0.9% amid strength in rail stocks, which are collectively up 11.3% following a bid from Berkshire Hathaway (BRK.A 100,100.00, +1,350) for Burlington Northern Santa Fe (BNI 97.59, +21.52) for $100 per share in cash and stock.
11:00 ET
Dow -31.97 at 9757.47, Nasdaq -9.57 at 2039.63, S&P -2.69 at 1040.19
[BRIEFING.COM] The stock market has made a couple of attempts to free itself from choppy trade by pushing toward positive territory. It has twice been rebuffed at the neutral line, however.
Meanwhile, the U.S. dollar continues to trade with strength, though it has eased back from earlier levels so that the Dollar Index now trades with a 0.4% gain.
The greenback's pullback has induced more interest in gold. The yellow metal was recently up 2% to $1075.00 per ounce, which is a new record high. That has helped shares of Barrick Gold (ABX 38.70, +2.19), Yamana Gold (AUY 11.42, +0.61), and Newmont Mining (NEM 45.96, +2.39) outperform the broader equity market. It has also helped Kinross Gold (KGC 18.20, -0.09) mitigate the impact of a disappointing quarterly report that featured a breakeven net, which was below the consensus estimate. Moreover, the SPDR Gold Trust (GLD 105.70, +1.75) has made its way to a new 52-week high.
10:30 ET
Dow -50.56 at 9738.88, Nasdaq -13.18 at 2036.02, S&P -5.03 at 1037.85
[BRIEFING.COM] The stock market opened sharply lower, but is currently back just under the unchanged line, while the US Dollar Index remains higher.
December crude oil has trended lower for the majority of its session thus far and recently hit lows of $76.55 per barrel. Currently, crude is trading 1.1% lower at $77.28 per barrel.
December natural gas rose sharply in recent activity, pushing out of negative territory to new session highs of $4.904 per MMBtu. In recent activity, natural gas is trading 0.9% higher at $4.866 per MMBtu.
Although the US Dollar Index remains near session highs, December gold is trading in positive territory, up 0.8% at $1062.9 per ounce, while December silver is essentially flat, down two cents at $16.42 per ounce.
10:00 ET
Dow -39.22 at 9749.91, Nasdaq -11.34 at 2037.77, S&P -3.75 at 1039.12
[BRIEFING.COM] Stocks futures continue to chop around in negative territory, despite the recent release of a solid piece of data.
Factory orders for September increased 0.9%, which is better than the 0.8% increase that was widely expected. It also marked an improvement from August's 0.8% increase.
Factory orders make up the only piece of data for release on today's economic calendar.
Early movers: Trading up -- BNI +28.3%, DDRX +24.3%, BDK +24%, SNIC +17.2%, TXRH +13%, DLLR +12.2%, RSO +10.3%, USEG +10%, RIC +9.5%, HEV +9.4%, CTSH +7.8%; Trading down -- ETM -15.4%, QCOR -14%, AIB -12.4%, TNL -11.6%, IRE -11.1%, MAIL -10.5%, ENR -10.2%, FUN -10%, RBS -9.6%
09:45 ET
Dow -37.08 at 9752.41, Nasdaq -11.85 at 2037.53, S&P -4.74 at 1038.14
[BRIEFING.COM] The stock market started the session moderately lower, but it has since trimmed its losses. Despite the improved position, financial stocks continue to trade with considerable weakness; the sector is down 1.1%, worse than any other major sector.
Declines by the financial sector stem partly from a sharp sell off in shares of MasterCard (MA 214.11, -8.54), which posted better-than-expected earnings for its latest quarter and said during its conference call that the worst of economic conditions is behind it and recent data are encouraging. However, the company still doesn't expect any global economic improvement until 2010. With that, the company reaffirmed that it doesn't expect revenue from 2009 to 2011 to grow at its 12% to 15% annual target.
09:15 ET
Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -7.70. Nasdaq futures vs fair value: -9.00. Stock futures continue to trade with weakness as considerable selling weighs on foreign markets and the U.S. dollar makes a heady 0.6% climb to its best level in nearly one month. However, stock futures have managed to pare their premarket losses. The improved position comes on the heels of news that Berkshire Hathaway (BRK.A) will pay a mix of cash and stock worth $100 per share for rail company Burlington Northern Santa Fe (BNI) in a move that Warren Buffett has essentially labeled a bet on the U.S. On a related note, Berkshire has announced that it will split its B shares (BRK.B) 50-for-1. There have only been a few other announcements from widely-held companies to complement Berkshire's news. Among them, MasterCard (MA) posted this morning better-than-expected adjusted earnings for the third quarter. Its shares are up fractionally ahead of the opening bell. Also, Dow component Johnson & Johnson (JNJ) reaffirmed its in-line outlook for fiscal 2009, winning it modest favor in premarket trade. There hasn't been any economic data out yet, though a small dose comes at 10:00 AM ET with the release of September factory orders. The FOMC also starts its 2-day meeting today, but it won't issue any official statement until tomorrow.
09:00 ET
Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -8.40. Nasdaq futures vs fair value: -10.00. Renewed strength in the U.S. dollar continues to prop up the Dollar Index, which currently sports a 0.6% gain, but it has caused commodity traders to make a push against oil prices. In turn, oil is down 1.3% to $77.10 per barrel in the first few minutes of pit trade. Gold is showing resilience, however. The yellow metal is currently up 0.5% to $1058.70 per ounce. Given the mixed interest between gold and oil prices, the broad CRB Commodity Index is down 0.6%.
08:35 ET
Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -7.60. Nasdaq futures vs fair value: -9.80. Europe's major indices are trading with marked losses. The selling comes in the face of news from New York Times that the European Union expects the full 27-nation bloc to be out of recession by the end of the year and that it revised upward its forecast for economic growth in 2010. Specifically, gross domestic product is now expected to rise by 0.7% in 2010, better than the 0.1% contraction projected last spring. France's CAC and Britain's FTSE are each off by 1.8%. According to The Wall Street Journal, Royal Bank of Scotland (RBS) and Lloyds Banking Group (LYG) unveiled agreements with the U.K. Treasury. RBS will participate in the expensive U.K. asset-protection scheme, while Lloyds opted not to. Meanwhile, Germany's DAX is down 1.4% as its declining issues outnumber its advancers by 4-to-1. Daimler (DAI) is a primary laggard in the group. In Asia, the MSCI Asia Pacific Index, excluding Japan, fell 1.6% during Tuesday's trade. In Hong Kong, the Hang Seng fell 1.8%. Heavyweight HSBC (HBC) proved unable to resist the selling and reversed early gains to settle with a loss. China Construction Bank and Bank of China also slid. In mainland China, the Shanghai Composite advanced 1.2%. Its metal and brokerage issues looked strong. The official China Securities Journal reported that the top four state-owned commercial banks extended about 136 billion yuan in new loans during October, up 23% from a month earlier. Japan's Nikkei was closed for a holiday, but according to The Wall Street Journal, Toyota (TM) representatives expect October U.S. sales to have made a "single-digit" decline in October from last year.
08:00 ET
Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -8.20. Nasdaq futures vs fair value: -10.80. A buyout of Burlington Northern Santa Fe (BNI) for $100 per share, a premium of approximately 30% from the previous session's closing price, by Berkshire Hathaway (BRK.A) has helped stock futures off of their premarket lows, but it hasn't been enough to position the major indices for a positive start. Instead, stock futures remain hampered by sellers responding to a considerably stronger U.S. dollar, which has pushed the Dollar Index up 0.6% to a near one-month high. Sizable losses in overseas markets are also helping to perpetuate selling. There isn't a lot of data out today, but participants still await September Factory Orders (10:00 AM ET) and monthly vehicle sales results, which are expected to be released throughout the day. The FOMC convenes today, but it won't issue an official statement until tomorrow.
06:27 ET
Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -12.30. Nasdaq futures vs fair value: -18.00.
06:27 ET
Market is Closed
[BRIEFING.COM] FTSE...4994.91...-109.60...-2.20%. DAX...5324.24...-106.60...-2.00%.
06:27 ET
Market is Closed
[BRIEFING.COM] Nikkei...Holiday......... Hang Seng...21240.06...-380.10...-1.80%.
16:30 ET
Dow +76.71 at 9789.44, Nasdaq +4.09 at 2049.20, S&P +6.69 at 1042.88
[BRIEFING.COM] Better-than-expected economic data helped the S&P 500 ascend to a 1.5% gain, but a bout of selling and technical resistance sent stocks to a 0.7% loss before buyers stepped back in to drive stocks to a positive finish.
News that the ISM Manufacturing Index for October came in at 55.7, construction spending in September spiked 0.8%, and pending home sales for September made a 6.1% monthly increase helped bring about some early, broad-based buying, which sent all 10 major S&P 500 sectors into the green.
Financials were a standout as the sector climbed to a 2.5% gain. Investors in the sector paid little attention to news that regional lender CIT Group will enter bankruptcy after weeks of struggling to secure financing and put together a plan for sustainability.
However, financial stocks soon saw their gains reverse as weakness among insurers spread to the rest of the sector. That took the financial sector to a 1.7% loss before buyers stepped back in and helped it finish with a 0.8% gain.
Midsession weakness among financials undercut the broader S&P 500, which was having trouble extending its gains past its 50-day moving average of 1052. Such technical resistance combined with weakness in one of the stock market's leading sectors eventually caused the broader market to roll over and surrender all of its gains.
Stocks were able to garner some support as an underlying bid limited the stock market's move to the downside. That support inevitably helped it settle the session with a gain.
Materials stocks finished the session with some of the strongest gains. The sector closed 1.0% higher, partly helped by a weaker dollar, which oscillated for the entire session before settling roughly 0.1% lower. The greenback's move lower helped the CRB Commodity Index climb 1.2%.
Other solid gains were made by consumer staples stocks (+1.0%) and consumer discretionary stocks (+0.9%), which were helped by strength in shares of Ford (F 7.58, +0.58). The automaker posted this morning better-than-expected earnings and also announced an increase in market share.
In other earnings news, Humana (HUM 37.01, -0.57) posted better-than-expected earnings of its own, but offered a mixed forecast that weighed on the stock. Managed care providers still advanced 1.5% as a group, though.
Advancing Sectors: Consumer Staples (+1.0%), Materials (+1.0%), Industrials (+1.0%), Consumer Discretionary (+0.9%), Financials (+0.8%), Health Care (+0.6%), Energy (+0.5%), Tech (+0.4%)
Declining Sectors: Telecom (-0.4%), Utilities (-0.3%)
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