OK, this is getting a bit ridiculous.
For the third day in a row, stocks staged a final hour ramp-up, this one good for only 100 points on the Dow, but that came after stocks had been given an initial lift-off around 10:00 am, resulting in a nearly 200-point rise on the Dow.
News from the Eurozone was once again scant, as EU ministers and leaders of the nations comprising the EU proved they will not take a back seat to the US President and congress when it comes to foot-dragging and kicking the proverbial economic can down the road.
There was some discussion of "re-capitalization" of the major banks, meaning nothing more than egregious money printing and bailouts for those with the most capital who have not yet learned how to manage it wisely.
Considering the penchant for late-day moves, perhaps the directors of the various exchanges might consider opening the market later in the day, say, 3:00 pm, locking out sellers as the computer algorithms simply ramp up the stocks they like. Being that "banker's hours" are legendarily short as it is, this would give said elite bankers more time to count their profits and have their nails manicured.
It's worth pointing out that the past three day's worth of last hour rallies began off fresh lows, set in place on Tuesday's ripped decline. On that day, the Dow bottomed at 10362.26, a low point not seen since September 9, 2010. The S&P and NASDAQ made similar moves, setting new, 12-month lows before the "Merkel miracle" when German Chancellor Angela Merkel first uttered the word, "re-capitalize." The S&P had already entered official bear market territory, obviously something the power-mad bankers simply could not tolerate.
The legacy of the current short-run rally will depend greatly upon the figures released Friday morning when the BLS issues its monthly non-farm payroll data. Anything over 50,000 new jobs created is certain to be seen as a win for equity holders, though there are no hard and fast estimates that can be trusted after last month's zero reading.
While in the short term, propping up markets - as has been occurring since late 2008 - may seem a noble and prudent activity, the longer-term consequences of unbalancing markets are not well known, although the examples available (Weimar, Zimbabwe, Dutch Tulip Bubble) all seem to have ended very, very badly.
On that note, here's a couple of Wall Street Whiz Guys who think the "new" level to watch is 1070 on the S&P. Listen carefully and you'll hear them advise to buy low and sell lower. Obviously, these guys are fresh escapees from the zoo for unfit hedge fund manglers.
Legendary gold bull, Peter Schiff of Euro Pacific Capital, doesn't think we're headed for a double-dip recession, he believes we're headed straight into "a complete economic collapse." Schiff's entertaining and caustic video can be seen here.
Not to put too fine a point on the doom and gloom aspect, Aftershock author, Robert Wiedemer, opines that we'll see "another meltdown within 2 to 4 years."
Well, Bob, thanks for the warning, though two to four years seems a long time to be waiting for the Apocalypse.
Meanwhile, outside the granite, steel and glass elitist enclaves of the big Wall Street firms, the Occupy Wall Street (OWS) movement continues to aggravate the paymasters and grow in depth and volume, spreading to over 500 cities and even getting the attention of President Obama during a news conference on Thursday. The corner of Broadway and Wall Street is beginning to resemble Cairo's Tahir Square in many ways.
Dow 11,123.33, +183.38 (1.68%)
NASDAQ 2,506.82, +46.31 (1.88%)
S&P 500 1,164.97, +20.94 (1.83%)
NYSE Composite 6,997.64, +153.48 (2.24%)
NASDAQ Volume 2,263,897,750
NYSE Volume 5,586,015,500
Combined NYSE & NASDAQ Advance - Decline: 5253-1294
Combined NYSE & NASDAQ New highs - New lows: 15-69
WTI crude oil: 82.59, +2.91 (WTF?)
Gold: 1,653.20, +11.60
Silver: 32.00, +1.65
Finally, it is with great regret to report that Apple co-founder Steve Jobs has died at the tender age of 56. In a tribute to Jobs' brilliance, we present the Super Bowl "1984" ad which aired on Super Bowl Sunday, January 22, 1984, during the third quarter of Super Bowl XVIII, heralding the launch of the Macintosh computer that revolutionized computing and our lives in general. Jobs was a thinker and inventor along the lines of Benjamin Franklin and Thomas Edison, a man of such greatness that we will likely not see another like him for decades. It would be remiss not to point out that this blog, and many other online ventures, is run off a seven or eight year old e-Mac, purchased used for $50 more than three years ago and that the Mac PowerBook G3 that was purchased in 1998, is still running strong on system 8.9, and has been operational, without the need for upgrades or any repairs for thirteen years.
People who invent and produce products of such lasting and functional value don't come along too often. Jobs, and his unique understanding of technology and its interaction with people, will be sorely missed.
Showing posts with label AAPL. Show all posts
Showing posts with label AAPL. Show all posts
Thursday, October 6, 2011
Wednesday, January 19, 2011
NASDAQ Sells the News
On Monday, we heard that Apple CEO Steve Jobs was going to take a six-month medical leave of absence. On Tuesday, after the closing bell, Apple announced another smashing quarter with great earnings and revenue. On Wednesday, Apple stock got hit with the classic "sell the news" earnings aftermath sell-off.
The decline actually began with the Jobs press release on Tuesday morning, but after earning were released and the stock was initially rebounding, it opened lower on Wednesday and dragged the rest of the NASDAQ down 40 points. Though Apple has only lost 10 points over the past two days, the damage is being felt in other big tech names such as Cisco (CSCO), Dell (DELL), Amazon (AMZN) and Google (GOOG). Of course, it's far too early to tell, but, considering the way stocks have appreciated over the past 4 1/2 months, this could be the beginning of a significant correction, one probably overdue and timed perfectly for post-earnings profit-taking. As usual, the smart money may be getting out while the getting is good.
With tech sliding, the rest of the market didn't fare well, though major industrials on the Dow maintained a sense of stability. Another point of focus should be stock options, which expire on Friday. After that, markets could be in for a free-for-all.
Dow 11,825.29, -12.64 (0.11%)
NASDAQ 2,725.36, -40.49 (1.46%)
S&P 500 1,281.92, -13.10 (1.01%)
NYSE Composite 8,104.92, -85.99 (1.05%)
Losers beat gainers by an unhealthy margin, 5161-1411, indicating that the decline, though well-masked on Apple's move, was certainly not contained to tech stocks alone. On the NASDAQ, there were 147 new highs, but just 12 new lows. The NYSE reported 186 new highs and a mere 22 new lows, though the high-low indicator is somewhat of a lagging one, especially after a huge rally such as that seen since September. It will take a while for new highs to fall off in the case of a real correction and an even longer time period for fresh new lows to be plumbed. Volume was at its best level of the week, another disturbing data point.
NASDAQ Volume 2,106,258,500.00
NYSE Volume 5,298,377,000
Crude oil was relatively flat, dipping 52 cents on the front-end futures contract, to $90.86. Gold gained late in the day, up $2.70, to $1370.40 at last look. Silver continued to slide, however, down 12 cents, to $28.76.
Thursday will be a big day for earnings, with nearly 100 companies reporting, including big names such as Capital One (COF), Southwest Airlines (LUV), Morgan Stanley (MS), Coach (COH), Freeport-McMoRan (FCX) and Advanced Micro Devices (AMD).
Stay tuned. This may become interesting again.
The decline actually began with the Jobs press release on Tuesday morning, but after earning were released and the stock was initially rebounding, it opened lower on Wednesday and dragged the rest of the NASDAQ down 40 points. Though Apple has only lost 10 points over the past two days, the damage is being felt in other big tech names such as Cisco (CSCO), Dell (DELL), Amazon (AMZN) and Google (GOOG). Of course, it's far too early to tell, but, considering the way stocks have appreciated over the past 4 1/2 months, this could be the beginning of a significant correction, one probably overdue and timed perfectly for post-earnings profit-taking. As usual, the smart money may be getting out while the getting is good.
With tech sliding, the rest of the market didn't fare well, though major industrials on the Dow maintained a sense of stability. Another point of focus should be stock options, which expire on Friday. After that, markets could be in for a free-for-all.
Dow 11,825.29, -12.64 (0.11%)
NASDAQ 2,725.36, -40.49 (1.46%)
S&P 500 1,281.92, -13.10 (1.01%)
NYSE Composite 8,104.92, -85.99 (1.05%)
Losers beat gainers by an unhealthy margin, 5161-1411, indicating that the decline, though well-masked on Apple's move, was certainly not contained to tech stocks alone. On the NASDAQ, there were 147 new highs, but just 12 new lows. The NYSE reported 186 new highs and a mere 22 new lows, though the high-low indicator is somewhat of a lagging one, especially after a huge rally such as that seen since September. It will take a while for new highs to fall off in the case of a real correction and an even longer time period for fresh new lows to be plumbed. Volume was at its best level of the week, another disturbing data point.
NASDAQ Volume 2,106,258,500.00
NYSE Volume 5,298,377,000
Crude oil was relatively flat, dipping 52 cents on the front-end futures contract, to $90.86. Gold gained late in the day, up $2.70, to $1370.40 at last look. Silver continued to slide, however, down 12 cents, to $28.76.
Thursday will be a big day for earnings, with nearly 100 companies reporting, including big names such as Capital One (COF), Southwest Airlines (LUV), Morgan Stanley (MS), Coach (COH), Freeport-McMoRan (FCX) and Advanced Micro Devices (AMD).
Stay tuned. This may become interesting again.
Tuesday, January 18, 2011
Fed Leaves Big Tip
On Tuesday, the Federal Reserve purchased $1.74 billion in Treasury inflation-protected securities, otherwise known as TIPS, in an outright purchase as part of the $600+ billion QE2 program. The extra gobs of money created a nifty rise in securities - doesn't it always? - as the major stock indices rose to new highs. It is looking like January will see a positive "January Effect," a term that will be bandied about over the next two weeks if the markets are able to hold onto the gains made thus far or improve upon them.
The January Effect, as it is known to traders, is the theoretical assumption that as the markets go in January, so will they go the remainder of the year. This gauge is supposedly right something along the lines of 85% of the time if January is positive. Over the past two years - both of which saw falling equity prices - the "effect" was not seen, as both 2009 and 2010 turned in impressive upside performances.
While it might not correlate to downside Januaries, two consecutive years of non-conformation raises the issue of whether Fed meddling has rendered all "old" measures of anticipated returns nil. With this January off like gangbusters, what is the chance of ending the year lower? Well, we've got 11 more months to find out, but, if the Fed continues its inflationary policies, stocks will most likely end the year higher, if only to keep pace with the "moderate" inflation, which could turn into "unwieldy" in the second half of the year or sooner.
Wall Street is certainly having its way on the easy money train of late, and while it's probably not too late to jump on the bandwagon for some quick-turn profits, there still is considerable risk, even though nobody will admit to it.
Upward we go, as earnings this week will flow like mother's milk.
Dow 11,837.93, +50.55 (0.43%)
NASDAQ 2,765.85, +10.55 (0.38%)
S&P 500 1,295.02, +1.78 (0.14%)
NYSE Composite 8,190.91, +16.79 (0.21%)
Considering today's gains, the A/D line did not come in heavily on the side of advancers, which nonetheless beat decliners, 3464-3073. On the NASDAQ, new highs overwhelmed new lows, 269-12. On the NYSE, the beat was not quite as robust, with new highs checking in at 304, against 47 new lows. Volume was fairly strong, but not solid enough from which to draw any conclusions about future direction.
NASDAQ Volume 2,032,031,375
NYSE Volume 5,828,719,500
The front-end (February) crude oil contract on the NYMEX was nearly flat, losing 16 cents, to $91.38. Oil remains at elevated levels. Gold rebounded from last week's drubbing, picking up $7.70, to $1,368.20, with silver adding 58 cents, to $28.91.
There doesn't seem to be any downside to buying equities these days. Even in the case of Apple (APPL), where founder and CEO Steve Jobs announced a six-month medical leave of absence, the stock fell more than 7 points during the session, but recovered back most of that in after-hours trading as the company posted numbers in excess of Street estimates. IBM also reported and beat, while Citigroup announced a 50% miss (.04 cents on expectations of .08) prior to the opening bell.
The January Effect, as it is known to traders, is the theoretical assumption that as the markets go in January, so will they go the remainder of the year. This gauge is supposedly right something along the lines of 85% of the time if January is positive. Over the past two years - both of which saw falling equity prices - the "effect" was not seen, as both 2009 and 2010 turned in impressive upside performances.
While it might not correlate to downside Januaries, two consecutive years of non-conformation raises the issue of whether Fed meddling has rendered all "old" measures of anticipated returns nil. With this January off like gangbusters, what is the chance of ending the year lower? Well, we've got 11 more months to find out, but, if the Fed continues its inflationary policies, stocks will most likely end the year higher, if only to keep pace with the "moderate" inflation, which could turn into "unwieldy" in the second half of the year or sooner.
Wall Street is certainly having its way on the easy money train of late, and while it's probably not too late to jump on the bandwagon for some quick-turn profits, there still is considerable risk, even though nobody will admit to it.
Upward we go, as earnings this week will flow like mother's milk.
Dow 11,837.93, +50.55 (0.43%)
NASDAQ 2,765.85, +10.55 (0.38%)
S&P 500 1,295.02, +1.78 (0.14%)
NYSE Composite 8,190.91, +16.79 (0.21%)
Considering today's gains, the A/D line did not come in heavily on the side of advancers, which nonetheless beat decliners, 3464-3073. On the NASDAQ, new highs overwhelmed new lows, 269-12. On the NYSE, the beat was not quite as robust, with new highs checking in at 304, against 47 new lows. Volume was fairly strong, but not solid enough from which to draw any conclusions about future direction.
NASDAQ Volume 2,032,031,375
NYSE Volume 5,828,719,500
The front-end (February) crude oil contract on the NYMEX was nearly flat, losing 16 cents, to $91.38. Oil remains at elevated levels. Gold rebounded from last week's drubbing, picking up $7.70, to $1,368.20, with silver adding 58 cents, to $28.91.
There doesn't seem to be any downside to buying equities these days. Even in the case of Apple (APPL), where founder and CEO Steve Jobs announced a six-month medical leave of absence, the stock fell more than 7 points during the session, but recovered back most of that in after-hours trading as the company posted numbers in excess of Street estimates. IBM also reported and beat, while Citigroup announced a 50% miss (.04 cents on expectations of .08) prior to the opening bell.
Tuesday, October 20, 2009
Market Gains on Low Volume
A quick overview of Monday's trading follows. More on Tuesday after the bell.
Awaiting the 3rd quarter earnings report from Apple (AAPL), investors were encouraged by the number of S&P companies which reported earnings better than estimates (78%) last week and further weakness in the dollar as the session unfolded.
Dow 10,092.19, +96.28 (0.96%)
NASDAQ 2,176.32, +19.52 (0.88%)
S&P 500 1,097.91, +10.23 (0.94%)
NYSE Composite 7,222.21, +88.25 (1.13%)
Advancing issues led losers, 4415-1889. There were 819 stocks making new 52-week highs, to 100 new lows. Volume was exceedingly low, signaling a large degree of caution at the very start of the biggest week of earnings reports. If the low volume pattern continues through the next few days, it could be indicative of a short-term market top. However, most companies have not yet reported, so not much can be read into one day's trading volume.
NYSE Volume 3,816,968,500
NASDAQ Volume 1,725,801,875
Oil reached a new high for the year, trading up $1.08, to $79.61. Gold advanced $7.90, to $1,066.00. Silver tacked on 21 cents, to close at $17.63 per ounce.
Besides Apple reporting after the close, five Dow components will report prior to Tuesday's opening bell. Caterpillar (CAT), Pfizer (PFE), United Technologies (UTX), Coca-Cola (KO) and DuPont (DD) are the companies reporting.
Awaiting the 3rd quarter earnings report from Apple (AAPL), investors were encouraged by the number of S&P companies which reported earnings better than estimates (78%) last week and further weakness in the dollar as the session unfolded.
Dow 10,092.19, +96.28 (0.96%)
NASDAQ 2,176.32, +19.52 (0.88%)
S&P 500 1,097.91, +10.23 (0.94%)
NYSE Composite 7,222.21, +88.25 (1.13%)
Advancing issues led losers, 4415-1889. There were 819 stocks making new 52-week highs, to 100 new lows. Volume was exceedingly low, signaling a large degree of caution at the very start of the biggest week of earnings reports. If the low volume pattern continues through the next few days, it could be indicative of a short-term market top. However, most companies have not yet reported, so not much can be read into one day's trading volume.
NYSE Volume 3,816,968,500
NASDAQ Volume 1,725,801,875
Oil reached a new high for the year, trading up $1.08, to $79.61. Gold advanced $7.90, to $1,066.00. Silver tacked on 21 cents, to close at $17.63 per ounce.
Besides Apple reporting after the close, five Dow components will report prior to Tuesday's opening bell. Caterpillar (CAT), Pfizer (PFE), United Technologies (UTX), Coca-Cola (KO) and DuPont (DD) are the companies reporting.
Thursday, July 26, 2007
Dark Thursday, Black Friday?
Anyone who was surprised by today's dramatic sell-off simply has not been paying attention. The signs were everywhere: weak second quarter corporate earnings, an outright implosion in the US housing market, sub-prime defaults beginning to leak over into mainstream mortgage loans and corporate lending, a market soaring (the Dow was up 30% in just the past year) over and beyond 50 and 200-day moving averages.
Everything was in place for a selling spree of monumental proportions and on Thursday, it all came to fruition.
Dow 13,473.57 -311.50; NASDAQ 2,599.34 -48.83; S&P 500 1,482.66 -35.43; NYSE Composite 9,654.43 -275.93
The day began badly with ExxonMobil (XOM) announcing - prior to the open - that it had fallen short of analyst expectations for the 2nd quarter. Boo hoo, the largest corporation in the world and the company held widely responsible for causing people so much pain for US motorists only booked $10.26 billion, or $1.83 a share, from $10.36 billion, or $1.72 a share, a year earlier. Analysts were hoping for $1.96 per share. They were sorely disappointed and the stock lost more than 6 % on the day.
At 10:00, with the Dow already down more than 100 points, the Commerce Department provided more proof that the US housing collapse was getting even worse than anticipated. New home sales were down 6.6% to 834,000 units, the biggest percentage drop in 6 months. Sales are 22.3% lower than they were a year ago. Additionally, the median price dropped to $237,900, down 2.2% from a year ago.
As the day progressed, the selling intensified. From noon through 2:30 p.m. the Dow fell by more than 200 points as volume reached historic levels.
So powerful was the downdraft, that even oil traders were scared. Crude, up to $77 earlier, fell through the afternoon, eventually closing down 73 cents at $75.15. Gold dropped another $11, with silver closing 20 cents lower.
The Dow bottomed at 13,335.30, a loss of nearly 450 points. Then, something strange happened, just like yesterday. The Dow jumped nearly 90 points in a matter of minutes. It was either the invisible hand of Maynard Keynes, but more likely the clandestine hand of the Plunge Protection Team (PPT), otherwise known as the working group on financial markets, created by Ronald Reagan to prevent a repeat of the Wall Street meltdown in October 1987.
As usual, the foreign press - in this case the London Telegraph - had the story more than a year ago.
Nevertheless, not even Treasury Secretary Henry Paulson and his able team of financial commandos could stem the tide. By days end, the markets were in tatters, with advancers swamped by declining issues by a ratio of 7-1. New lows hit a number I have heretofore never witnessed - 1110 - to only 104 new highs.
And whatever the interlopers did to spike the market, it broke the feeds to Yahoo Finance and CNN Money. The volume figures on Yahoo Finance were totally knocked out (see the chart at right).
Judging by the late figures, the volume was the highest of the year, surpassing the mark of 4.283 billion shares, set yesterday. The overall Dow drop of 311 points was second only to the China rot on February 27 of this year.
There were over 400 stocks reporting on the day, but the biggest stories belonged to ExxonMobil (XOM), Apple (AAPL, beat estimates, +8.74), 3M (MMM, beat estimates), Black & Decker (BDK, beat estimates on lower profit, lowered guidance, -6.88), Office Depot (ODP, met on lower profits, -1.79) and Dow Chemical (DOW, beat, -2.22).
There will be more tomorrow, as investors digest earnings after hearing the government's preliminary figures for 2nd quarter GDP prior to the market open. The so-called "experts" - who haven't been remotely close lately - are predicting 3.2% growth. After Q1's horrific 0.7% gain, anything short of that number will likely precipitate even more selling.
Make no doubt about it, without the interference from government insiders, today's loss could have easily been 500 or 600 points. This slide certainly isn't over. In fact, it's probably only the beginning of a long, painful unwinding of an equally-long credit binge.
The fear is not in the second quarter results, but in the future, with an interest rate drop now becoming more and more of a distinct possibility as the US lags behind other countries - developed and emerging alike.
Everything was in place for a selling spree of monumental proportions and on Thursday, it all came to fruition.
Dow 13,473.57 -311.50; NASDAQ 2,599.34 -48.83; S&P 500 1,482.66 -35.43; NYSE Composite 9,654.43 -275.93
The day began badly with ExxonMobil (XOM) announcing - prior to the open - that it had fallen short of analyst expectations for the 2nd quarter. Boo hoo, the largest corporation in the world and the company held widely responsible for causing people so much pain for US motorists only booked $10.26 billion, or $1.83 a share, from $10.36 billion, or $1.72 a share, a year earlier. Analysts were hoping for $1.96 per share. They were sorely disappointed and the stock lost more than 6 % on the day.
At 10:00, with the Dow already down more than 100 points, the Commerce Department provided more proof that the US housing collapse was getting even worse than anticipated. New home sales were down 6.6% to 834,000 units, the biggest percentage drop in 6 months. Sales are 22.3% lower than they were a year ago. Additionally, the median price dropped to $237,900, down 2.2% from a year ago.
As the day progressed, the selling intensified. From noon through 2:30 p.m. the Dow fell by more than 200 points as volume reached historic levels.
So powerful was the downdraft, that even oil traders were scared. Crude, up to $77 earlier, fell through the afternoon, eventually closing down 73 cents at $75.15. Gold dropped another $11, with silver closing 20 cents lower.
The Dow bottomed at 13,335.30, a loss of nearly 450 points. Then, something strange happened, just like yesterday. The Dow jumped nearly 90 points in a matter of minutes. It was either the invisible hand of Maynard Keynes, but more likely the clandestine hand of the Plunge Protection Team (PPT), otherwise known as the working group on financial markets, created by Ronald Reagan to prevent a repeat of the Wall Street meltdown in October 1987.
As usual, the foreign press - in this case the London Telegraph - had the story more than a year ago.
Nevertheless, not even Treasury Secretary Henry Paulson and his able team of financial commandos could stem the tide. By days end, the markets were in tatters, with advancers swamped by declining issues by a ratio of 7-1. New lows hit a number I have heretofore never witnessed - 1110 - to only 104 new highs.
And whatever the interlopers did to spike the market, it broke the feeds to Yahoo Finance and CNN Money. The volume figures on Yahoo Finance were totally knocked out (see the chart at right).Judging by the late figures, the volume was the highest of the year, surpassing the mark of 4.283 billion shares, set yesterday. The overall Dow drop of 311 points was second only to the China rot on February 27 of this year.
There were over 400 stocks reporting on the day, but the biggest stories belonged to ExxonMobil (XOM), Apple (AAPL, beat estimates, +8.74), 3M (MMM, beat estimates), Black & Decker (BDK, beat estimates on lower profit, lowered guidance, -6.88), Office Depot (ODP, met on lower profits, -1.79) and Dow Chemical (DOW, beat, -2.22).
There will be more tomorrow, as investors digest earnings after hearing the government's preliminary figures for 2nd quarter GDP prior to the market open. The so-called "experts" - who haven't been remotely close lately - are predicting 3.2% growth. After Q1's horrific 0.7% gain, anything short of that number will likely precipitate even more selling.
Make no doubt about it, without the interference from government insiders, today's loss could have easily been 500 or 600 points. This slide certainly isn't over. In fact, it's probably only the beginning of a long, painful unwinding of an equally-long credit binge.
The fear is not in the second quarter results, but in the future, with an interest rate drop now becoming more and more of a distinct possibility as the US lags behind other countries - developed and emerging alike.
Wednesday, July 25, 2007
Rigged Rally
Any doubt that the US stock markets have been, are being or can be manipulated was put to rest today at precisely 3:00 p.m. Eastern time. It was at that moment that the Dow Jones Industrials climbed an extraordinary 50+ points in just over one minute. There was no news, no report issued that would move the market, only the covert actions by groping, free market fondlers.
Briefing.com called the 3:00 jump a "technical trade," which is a good substitute for "we don't know," and the Fed's Beige Book was released at 2:00, not 3:00, but maybe it took a while to digest.
In any case, the final result was a healthy gain for the Dow, with the other indices tagging along.
Dow 13,784.50 +67.55; NASDAQ 2,648.17 +8.31; S&P 500 1,518.09 +7.05; NYSE Composite 9,930.36 +20.41
Other than the faux late-day rally, it was really a see-saw session with the markets initially buffeted by stellar earnings reports from Amazon (AMZN) and Boeing (BA), then battered by the National Association of Realtors' (NAR) existing Home Sales for June, which came in well below estimates, suggesting that, considering the current malaise in the housing market, those estimates might want to be a little less optimistic going forward.
It was the worst showing for housing in roughly 4 1/2 years, though that in itself should not have been much of a surprise.
Elsewhere, companies were churning out 2nd quarter earnings reports, and some actually weren't all bad.
The story beyond the headline numbers was in stark contrast. Decliners beat advancing issues by a 3-2 ration, and new lows swamped the market, beating new highs by 630-134 (no, that's not a misprint).
Oil posted huge gains on the NY Mercantile Exchange, with crude up a massive $2.32 to $75.88. So, square those facts and numbers with a nearly 70-point rise on the Dow... really, try it.
Gold was hammered down $11 to $673.80, with silver losing 29 cents to close at $13.15.
More hijinks are in store for certain tomorrow, as new home sales figures for June are released and another 400+ companies roll out earnings reports.
Briefing.com called the 3:00 jump a "technical trade," which is a good substitute for "we don't know," and the Fed's Beige Book was released at 2:00, not 3:00, but maybe it took a while to digest.
In any case, the final result was a healthy gain for the Dow, with the other indices tagging along.
Dow 13,784.50 +67.55; NASDAQ 2,648.17 +8.31; S&P 500 1,518.09 +7.05; NYSE Composite 9,930.36 +20.41
Other than the faux late-day rally, it was really a see-saw session with the markets initially buffeted by stellar earnings reports from Amazon (AMZN) and Boeing (BA), then battered by the National Association of Realtors' (NAR) existing Home Sales for June, which came in well below estimates, suggesting that, considering the current malaise in the housing market, those estimates might want to be a little less optimistic going forward.
It was the worst showing for housing in roughly 4 1/2 years, though that in itself should not have been much of a surprise.
Elsewhere, companies were churning out 2nd quarter earnings reports, and some actually weren't all bad.
- Xerox (X) beat estimates by a penny, but was pounded lower by 1.10 (nearly 6%).
- Colgate-Palmolive (CL): Excluding restructuring charges, net income in the most recent quarter was $457.5 million, or 84 cents per share. Analysts expected earnings per share of 84 cents.
- ConocoPhillips (COP) posted income, excluding extraordinary items, of $4.8 billion, or $2.90 a share, compared with $5.2 billion, or $3.09 a share, during the second quarter of 2006. The results were well above the $2.68 analyst expectations.
- Freeport-McMoRan Copper & Gold (FCX): On the acquisition of rival Phelps Dodge in March and increased metal pricing, net income after paying preferred dividends rose to $1.10 billion, or $2.62 per share, from $367 million, or $1.74 per share, a year ago. Revenue surged to $5.81 billion from $1.43 billion last year. Analysts surveyed by Thomson Financial were looking for profit of $2.71 per share on revenue of $5.27 billion.
- GlaxoSmithKline (GSK): Pretax profit was flat at £1.896 billion -- compared with £1.897 billion a year earlier -- and was ahead of analysts' consensus expectations of £1.833 billion. Net profit rose to £1.36 billion from £1.34 billion a year earlier.
- Apple (AAPL): (After the close) For fiscal 2007 third quarter ended June 30, 2007, posted revenue of $5.41 billion and net quarterly profit of $818 million, or $.92 per diluted share. These results compare to revenue of $4.37 billion and net quarterly profit of $472 million, or $.54 per diluted share, in the year-ago quarter.
The story beyond the headline numbers was in stark contrast. Decliners beat advancing issues by a 3-2 ration, and new lows swamped the market, beating new highs by 630-134 (no, that's not a misprint).
Oil posted huge gains on the NY Mercantile Exchange, with crude up a massive $2.32 to $75.88. So, square those facts and numbers with a nearly 70-point rise on the Dow... really, try it.
Gold was hammered down $11 to $673.80, with silver losing 29 cents to close at $13.15.
More hijinks are in store for certain tomorrow, as new home sales figures for June are released and another 400+ companies roll out earnings reports.
Tuesday, July 24, 2007
Bear Claws
How bad was it?
It was in the top five worst performances for the combined indices this year, and likely the third worst showing (at least for the Dow it was). What triggered the Tuesday tempest was poor showings by a multitude of companies reporting second quarter earnings, most notably, McDonald's (MCD) huge miss and a miss by DuPont (DD) prior to the market open and Texas Instrument's (TI) poor showing announced Monday after the close.
Dow 13,716.95 -226.47; NASDAQ 2,639.86 -50.72; S&P 500 1,511.04 -30.53; NYSE Composite 9,909.95 -211.63
Here are just some of the early headlines, which seemed to get worse as the trading session wore on.
IN PLAY: Corn Products reports 2Q07 results; beats by $0.09
DuPont reports flat 2Q earnings
Kimberly-Clark 2Q Profit Beats Outlook
Legg Mason profit climbs 22 percent
Lexmark net profit slips 16 percent
Northrop 2Q profit rises 7%
PepsiCo 2Q Profit Rises 13 Percent
While there were a smattering of positives, they were overwhelmed by more than just a few companies not meeting 2nd quarter estimates.
Declining issues crushed advancers by a 5-1 margin and new lows swamped new highs, 642-162.
Not even bonds, tame, with the 10-year note yielding 4.92%, or oil, down $1.33 to $73.56, could pick up the spirits on Wall Street. The continual unwinding of the sub-prime mortgage blow-up (now spreading into other credit areas) combined with the spate of earnings disappointments led to an all-out rush for the exits.
For those with weak stomachs, stop here, because I'm going to tell you why it's going to get worse the rest of the week.
First, more companies will be releasing earnings reports and some are certain to miss estimates. Investors are in a sour mood already, and they simply don't need any more reasons to sell. Later in the day, US Steel (X) reported a 25% dip in profits from the year ago period. Net income fell to $302 million, or $2.54 per diluted share, for the quarter, from $404 million, or $3.22 per share, during the same period last year. Analysts were looking for earnings of $2.35 per share on $4.05 billion in sales and the stock ended the day up 42 cents at 106.41.
After the close, Amazon (AMZN) booked solid profits. Earnings climbed to $78 million, or 19 cents per share, from $22 million, or 5 cents per share during the same period last year, soundly beating expectations of 16 cents per share.
Eli Lily (LLY) also reported after the close. Excluding charges, adjusted earnings totaled $978.7 million, or 90 cents per share. Analysts had expected 82 cents per share on that basis.
Tomorrow, in addition to the more than 300 companies reporting 2nd quarter earnings, the following report prior to the open:
Colgate-Palmolive (CL), ConocoPhillips (COP), DaimlerChrysler (DCX), Freeport-McMoRan Copper & Gold (FCX), GlaxoSmithKline (GSK), Xerox (XRX)
After the close:
Apple (AAPL), Pulte Homes (PHM), Symantec (SYMC), Boeing (BA).
Additionally, Existing Home Sales for June will be out at 10:00 am. On Thursday, New Home Sales figures for June and on Friday, the preliminary 2nd quarter GDP estimate.
With those economic reports on the way, traders may have taken an early hiatus, expecting the worse. It's likely to not be as bad as the worst skeptics suspect, but don't look for a quick turnaround - at least not this week.
It was in the top five worst performances for the combined indices this year, and likely the third worst showing (at least for the Dow it was). What triggered the Tuesday tempest was poor showings by a multitude of companies reporting second quarter earnings, most notably, McDonald's (MCD) huge miss and a miss by DuPont (DD) prior to the market open and Texas Instrument's (TI) poor showing announced Monday after the close.
Dow 13,716.95 -226.47; NASDAQ 2,639.86 -50.72; S&P 500 1,511.04 -30.53; NYSE Composite 9,909.95 -211.63
Here are just some of the early headlines, which seemed to get worse as the trading session wore on.
IN PLAY: Corn Products reports 2Q07 results; beats by $0.09
DuPont reports flat 2Q earnings
Kimberly-Clark 2Q Profit Beats Outlook
Legg Mason profit climbs 22 percent
Lexmark net profit slips 16 percent
Northrop 2Q profit rises 7%
PepsiCo 2Q Profit Rises 13 Percent
While there were a smattering of positives, they were overwhelmed by more than just a few companies not meeting 2nd quarter estimates.
Declining issues crushed advancers by a 5-1 margin and new lows swamped new highs, 642-162.
Not even bonds, tame, with the 10-year note yielding 4.92%, or oil, down $1.33 to $73.56, could pick up the spirits on Wall Street. The continual unwinding of the sub-prime mortgage blow-up (now spreading into other credit areas) combined with the spate of earnings disappointments led to an all-out rush for the exits.
For those with weak stomachs, stop here, because I'm going to tell you why it's going to get worse the rest of the week.
First, more companies will be releasing earnings reports and some are certain to miss estimates. Investors are in a sour mood already, and they simply don't need any more reasons to sell. Later in the day, US Steel (X) reported a 25% dip in profits from the year ago period. Net income fell to $302 million, or $2.54 per diluted share, for the quarter, from $404 million, or $3.22 per share, during the same period last year. Analysts were looking for earnings of $2.35 per share on $4.05 billion in sales and the stock ended the day up 42 cents at 106.41.
After the close, Amazon (AMZN) booked solid profits. Earnings climbed to $78 million, or 19 cents per share, from $22 million, or 5 cents per share during the same period last year, soundly beating expectations of 16 cents per share.
Eli Lily (LLY) also reported after the close. Excluding charges, adjusted earnings totaled $978.7 million, or 90 cents per share. Analysts had expected 82 cents per share on that basis.
Tomorrow, in addition to the more than 300 companies reporting 2nd quarter earnings, the following report prior to the open:
Colgate-Palmolive (CL), ConocoPhillips (COP), DaimlerChrysler (DCX), Freeport-McMoRan Copper & Gold (FCX), GlaxoSmithKline (GSK), Xerox (XRX)
After the close:
Apple (AAPL), Pulte Homes (PHM), Symantec (SYMC), Boeing (BA).
Additionally, Existing Home Sales for June will be out at 10:00 am. On Thursday, New Home Sales figures for June and on Friday, the preliminary 2nd quarter GDP estimate.
With those economic reports on the way, traders may have taken an early hiatus, expecting the worse. It's likely to not be as bad as the worst skeptics suspect, but don't look for a quick turnaround - at least not this week.
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