Wall Street Reacts to the Devastation of Hurricane Sandy with Flat Session

It's morally repugnant that Wall Street would profit from the human suffering of others, though, in reality, it happens all the time. Stocks go up and down on the fortunes and foibles of people, many integral parts of larger corporations.

Thus, it was a time of joyous celebration for the professionals trading at the New York Stock Exchange that, for the first time in two days, equity markets were actually up and functioning. But, that euphoria, which resulted in a wholly predictable, end-of-month window dressing rally at the open, soon turned an eye toward the reality of the devastation and destruction left behind by hurricane Sandy.

Most of lower Manhattan is still without power, the NYSE operating off backup generators, and most of the areas contiguous to Wall Street for many miles to the North, South, East and West, are just beginning to evaluate the extent of the losses.

Most of the New Jersey coast is either underwater, under piles of sand or otherwise devastated; Long Island is a crushed, mangled mess as is Connecticut and most of the other New York boroughs.

Many in the area are still without power, which is slowly returning to some areas, but the losses sustained by people and companies is only now beginning to be felt. Restoration and reconstruction will take months and billions of dollars, the hit to the economy unmistakable, as Wall Street fully understands and began coming to grips with as stocks began to slide shortly after the initial burst leveled off at about 80 points to the good on the Dow.

The rapid turnaround was classic Wall Street hustle, as fund managers snapped up shares at the open to close their books for the month - some for the year - while the sharpies were already shorting the very same shares. There's profit to be made on the downside, and the environment is target rich and ripe for plucking by short-sellers, call sellers and put buyers.

By 10:30 all of the major indices were trading in negative territory, led by the NASDAQ, which itself was brought down by particularly vicious selling in Apple (AAPL), in the aftermath of the firing of two top executives by CEO Tim Cook. It's becoming apparent to everyone that the loss of Steve Jobs was not only a human tragedy, but nobody is there to replace his unique genius and business acumen.

In Europe, which remained open for business as usual over the past two days of Wall Street's shutdown, stocks were mostly down on Monday, up on Tuesday and rallying early Wednesday until finally giving up the ghost late in the sessions, the major indices - England's FTSE, Germany's DAX and France's CAC - all closing lower.

Just about 12:30 pm EDT, a reminder of just how tenuous the entire situation around New York was came from Knight Capital, when the firm, operating under backup power in Jersey City, was forced to shut down for the day, citing that their generators were failing.

Volumes were moderate, considering that many traders were without proper equipment, cell phone service spotty and some traders actually functioning from alternate locations, at home or at satellite offices, though, by the close, the volume ramped up, and the day was one of the better recent volume sessions.

Midday, stocks balanced just above the lows of the session, but buying was timid. As has been the usual mode of operation around Wall Street, traders generally ignored the world around them, sending the S&P and Dow back into positive territory in the final hour, as if nothing at all had occurred, but the move proved unsustainable.

As it has for the past four sessions running, the major indices finished mostly flat, which is patently absurd, as there are corporations taking serious losses from the storm. Reality may set in as time carries onward, but there's no telling how the detached traders in lower Manhattan will treat what will eventually turn out to be one of the costliest natural disasters of all time.

Perhaps the psychology of the control crowd is to not panic, despite evidence to the contrary as pertains to investments, but there is a price to be paid, though, as usual, the analysts will simply lower their expectations for all, and when those are exceeded, will celebrate the great success of what are more and more becoming hollowed-out shells of companies.

There will be days if not weeks of lost productivity, wages and competitiveness across six states: Delaware, Maryland, Pennsylvania, New York, New Jersey and Connecticut. Smaller pockets of destruction have hit West Virginia (blizzard) and some New England states, such as Rhode Island, New Hampshire, Vermont, maine and Massachusetts.

Getting markets up and running is a fine accomplishment, but registering a slight decline is almost laughable, if the thought of it weren't so warped and disturbing.

Dow 13,096.46, -10.75 (0.08%)
NASDAQ 2,977.23, -10.72 (0.36%)
S&P 500 1,412.16, +0.22(0.02%)
NYSE Composite 8,221.40, +31.20(0.38%)
NASDAQ Volume 1,806,794,500
NYSE Volume 3,542,963,500
Combined NYSE & NASDAQ Advance - Decline: 3106-2429
Combined NYSE & NASDAQ New highs - New lows: 198-124
WTI crude oil: 86.24, +0.56
Gold: 1,719.10, +7.00
Silver: 32.32, +0.50

Hurricane Sandy Shuts Down Equity Markets

It took the forces of nature to do what the SEC, government or any other "higher" power couldn't: shut down Wall Street.

Hurricane Sandy, a category 1 hurricane due to make landfall around Atlantic City New Jersey around 6:00 pm EDT, caused the NYSE and NASDAQ to shut down on Monday without even opening. Futures closed at 9:15 am EDT, with the major indices showing moderate, though not devastating, losses.

In New York, Mayor Bloomberg ordered the closure of all subway systems, and evacuated roughly 375,000 residents from lower Manhattan.

Though the storm did not reach landfall until markets would have already closed, high winds and storm surge were expected to cause damage in lower Manhattan, while most of the Eastern seaboard was inundated throughout the day with high surf and damaging winds.

Later in the day, the exchanges decided to remain closed on Tuesday. It is the first time since 1888 that stock markets were closed due to weather for more than one day in succession.

Also in question are various corporate earnings reports. Many which were due out on Monday have been rescheduled for release and there is a rumor circulating that Friday's non-farm payroll report for October would also be delayed. It is the final jobs report before the election next Tuesday.

Other exchanges, for bonds, Forex and commodities were open or closed or offered limited sessions and some plan to open on Tuesday while others will not. The situation is rather - pardon the pun - fluid.

WTI crude oil: 85.54, -0.74
Gold: 1,708.70, -3.20
Silver: 31.74, -0.291

Flat, Nowhere to Go, Markets Stall

It's really difficult to put into words just how... searching... searching... searching for the right word... inconsequential (?) this stock market is.

Following today's non-action - up, down, up and then flat at the close - one can only assume that the machines are fully in charge, skimming nickels and dimes off trades for their human masters, the Goldman Sachs and Merrill Lynchs of the world.

For the rest of us, nothing. If the market really does hate indecision, how much does it hate not being able to adequately define itself.

Ponder that over the weekend while hurricane Sandy gets ready to pound the East coast. It should arrive on Wall Street just in time for Tuesday's opening bell. Nothing like a major natural disaster to get those "animal spirits" flowing. Should be good for 10 or 12 points on the Down Jones Industrials (no, that was not a typo).

Have a happy weekend. This blogger is headed for happy hour, because nothing beats being happy. LMAO

Fiscal Cliff. Just in case any bots are looking.

Dow 13,107.21, +3.53 (0.03%)
NASDAQ 2,987.95, +1.83 (0.06%)
S&P 500 1,411.94, -1.03 (0.07%)
NYSE Compos... 8,190.17, -21.74 (0.26%)
NASDAQ Volume 1,766,343,750
NYSE Volume 3,233,096,000
Combined NYSE & NASDAQ Advance - Decline: 2267-3160
Combined NYSE & NASDAQ New highs - New lows: 102-92
WTI crude oil: 86.28, +0.23
Gold: 1,711.90, -1.10
Silver: 32.04, -0.042

Dull Trading Session, But Apple, Amazon Ignite After-Hours Fireworks

The wall of worry the market climbed all summer is quickly turing into a slippery slope of dissatisfaction, mostly with corporate earnings, and, over the past few days, the accelerating pace of layoffs, something the market hasn't dealt with in any size since 2010.

Stocks opened gap up, quickly decelerated and spent the majority of the session hugging the flat line. Only in the final 15 minutes did all of the indices turn sharply positive, if gains of 0.30% or so can be called sharp, though considering the growing number of earnings misses, is probably the best that could be expected.

There was a definite expression of waiting and hoping in the sentiment today, with few traders staking out new positions in advance of earnings releases by tech giants Amazon (AMZN) and Apple (APPL), both due out after the bell.

Amazon reported just minutes after the close of markets, putting up some god-awful numbers, short on revenue at 13.81 billion when the street was looking for 13.92, and a 23 cent loss ex-items on expectations of an eight-cent dip. Including one-time charges, Amazon's loss was 60 cents per share. Investors were not pleased and immediately sent the stock careering down seven percent in after hours trading.

Shortly thereafter, Apple reported earnings of $8.67 per share for its fiscal fourth quarter, less than the consensus estimate of $8.75. Revenues came in at $35.96 billion, above the $35.8 billion that analysts had sought. Share traded about one percent lower in extended trading.

Weakness in the two tech retailers was not entirely unexpected, though in Amazon's case, the loss was quite a bit on the downside, setting up for an interesting day Friday on the NASDAQ where both Amazon and Apple trade.

Dow 13,103.68, +26.34(0.20%)
NASDAQ 2,986.12, +4.42(0.15%)
S&P 500 1,412.97, +4.22(0.30%)
NYSE Composite 8,211.87, +32.61(0.40%)
NASDAQ Volume 1,846,098,130
NYSE Volume 3,447,291,500
Combined NYSE & NASDAQ Advance - Decline: 3231-2256
Combined NYSE & NASDAQ New highs - New lows: 141-98
WTI crude oil: 86.05, +0.32
Gold: 1,713.00, +11.40
Silver: 32.08, +0.458

Dead Cats Don't Bounce; No Joy in Fraudville; Stocks Continue Slide

Maybe, as the movie title suggests, white men can't jump, but Wall Street proved today that dead cats don't bounce... at least not very high.

Stocks got a little bit of a boost from futures pumping prior to the opening bell, but the dismal nature of earnings for the third quarter made any gains transitory, fleeting and utterly disappointing (much like a lot of people in this author's life).

It is as it should be, perhaps. Fed policies do not a market make, so the major indices are now well below the levels encountered when the Chairman, the pseudo-salubrious Ben Bernanke, announced QE3, or, rather, QEtc. or QEternity on September 13.

The prescription the good doctor of economics gave the markets was unlimited buying of mortgage-backed securities (MBS), those ubiquitous instruments of mass financial destruction that essentially started the whole financial and economic mess in the first place, and which will, almost without doubt, end up worth less than what the Federal Reserve pays for them.

With any luck, the Fed's foray into economic wonderland, replete with diamond-farting unicorns and frogs that belch profits, will end in tears and anguish for not only the lower and middle classes, but the rich and self-appointed masters of the universe as well. We wish them no luck, because tactically, they have erred in their assessment of the global economy, not once or twice, but repeatedly since the advent of the crisis in 2007 or 2008, take your pick.

Today's FOMC rate policy decision was another non-event, the Fed reiterating that it would stick to its plans until 2015, which would be long after the chairman has departed, ostensibly in early 2014, should he even last that long.

The market is more interested these day in politics and earnings, each of which offering a mixed bag of blessings or banes, so precarious is the global outlook. Fears are rising that President Obama will win re-election, though the real fears are over the poor earnings reports pouring into the street like so many viperous snakes ready to bite the legs of impudent investors standing still.

Layoff announcements from Ford, Dow Chemical and Volkswagen were only whispered on Wall Street today. In the coming months, workforce reductions will be major headlines as all attempts to revive the economy the banks destroyed will ultimately fail. Europe is sinking steadily deeper into a black hole of debt and deflation, with Asia following soon, and the US - the last bastion of relief in a sea of declining opportunity - to join them in the hell of destroyed currencies and wrecked economies within short order.

Stocks have levitated for months, but the handwriting is clearly written and the game is nearly up. The US elections of November 6 mark a turning, a reckoning that will be absolute and without reprieve. All of the Merkels, Bernankes, Legardes and Draghis of the world cannot resurrect that which was already dead when they first took notice.

While there may be a few days of brightness ahead in the near future for stocks, to outlook continues to deteriorate and today's market action verifies the quietly-held beliefs of the skeptics: all is lost.

There is no joy in Fraudville; mighty Bernanke has struck out.

Dow 13,077.34, -25.19 (0.19%)
NASDAQ 2,981.70, -8.76 (0.29%)
S&P 500 1,408.75, -4.36 (0.31%)
NYSE Composite 8,179.26, -16.05 (0.20%)
NASDAQ Volume 1,965,715,000
NYSE Volume 3,346,029,500
Combined NYSE & NASDAQ Advance - Decline: 2404-3120
Combined NYSE & NASDAQ New highs - New lows: 97-94
WTI crude oil: 85.73, -0.94
Gold: 1,701.60, -7.80
Silver: 31.62, -0.173