Reply #41: 10:36 EST Markets turn red - Treasuries recover [View All]

[UpInArms]

Dow 11,323.92 -30.57 (-0.27%)
Nasdaq 2,331.62 -2.01 (-0.09%)
S&P 500 1,301.97 -3.44 (-0.26%)
10-Yr Bond 5.082 -0.23 (-0.45%)

NYSE Volume 711,214,000
Nasdaq Volume 692,236,000

10:30 am : Indices spike higher following more conciliatory comments from Fed Chairman Bernanke than many anticipated, sparking a relief rally in stocks, erasing most of the morning's losses and turning the bulk of industry leadership positive. Six of ten sectors are now trading higher. While Bernanke reiterated that monetary policy remains "increasingly data driven" and that inflation "vigilance" is key to the economy, saying that the Fed may "pause even if risks aren't balanced" has been the primary catalyst behind the market's recent recovery.DJ30 -14.57 NASDAQ +1.55 SP500 +0.44 NASDAQ Dec/Adv/Vol 1310/1340/630 mln NYSE Dec/Adv/Vol 1577/1258/464 mln

10:00 am : Equities are still on the defensive as all ten economic sectors are trading lower. Energy is pacing the way to the downside (-2.2%) following earnings misses from ExxonMobil (XOM 61.77 -1.33) and Marathon Oil (MRO 79.18 -2.71) as well as 1.1% pullback in the price of crude to $71 a barrel. The Materials sector is also consolidating some of its impressive year-to-date performance (+12%) as investors lock in huge gains enjoyed by steel -- the year's best performing industry group (+59%). Industrials has also been weak after JP Morgan downgraded Honeywell (HON 42.86 -1.21) citing environmental uncertainty. Rockwell Automation (ROK 71.22 -4.22) beat estimates and raised its full-year guidance, which plays into our Overweight rating on Industrials; but with the stock hitting a historic high three days ago ahead of its report has incited investors to lock to consolidate recent gains.DJ30 -61.39 NASDAQ -11.09 SP500 -8.16 XOI -2.0% NASDAQ Dec/Adv/Vol 1918/575/316 mln NYSE Dec/Adv/Vol 2003/601/236 mln

09:40 am : Market opens sharply lower as growing interest rate uncertainty offsets another batch of strong earnings reports, prompting broad-based consolidation. Underpinning hesitancy on the part of buyers has been the first rate hike by China's central bank in 12 years, to 5.85% from 5.58%. Not only was the move widely unexpected but it creates concerns that global economic growth may be slowing. Investors are also preoccupied with upcoming testimony by Fed Chairman Bernanke at 10:00 ET, which could shed some light on prospects for monetary policy, especially since stronger than expected economic data of late have raised concerns that the Fed may go too far with its tightening efforts to stave off inflationary pressures.

updated blather on edit