Reply #85: cosing numbers and blahter - ponies and lollypops for everyone! [View All]

[UpInArms]

Dow 13,311.73 22.28 (0.17%)
Nasdaq 2,668.13 5.22 (0.20%)
S&P 500 1,469.72 0.70 (0.05%)
10-Yr Bond 3.94% 0.085

NYSE Volume 3,539,243,500
Nasdaq Volume 2,180,081,000

4:15 pm : In the wake of the massive two-day rally, the major indices showed a striking resilience to profit-taking efforts as they finished slightly higher on Thursday after being down in early-trading. This is an encouraging sign to market bulls considering gains were made in the face of some weak economic data and a few disappointing earnings reports.

The S&P 500 Retailing Index (-0.7%) was under pressure today as several retailers failed to live up to earnings expectations. Notably, Sears Holding (SHLD 104.09, -12.25) posted a third quarter profit of $0.01 per share, marking a whopping 99% drop in earnings compared to a year-ago. Shares plummeted 10%.

E*Trade (ETFC 4.82, -0.46) gained more than 10% in early trading following news of a $2.5 billion capital infusion from Citadel Investment Group. The stock, however, failed to build on the opening gains and actually ended the day noticeably lower. Presumably, the lack of follow through on early buying efforts prompted momentum accounts, which had bought the stock on speculation about a possible deal, to lock in profits.

Of the four sectors that traded lower, the financial sector (-0.7%) was the main laggard. A bit of a pullback, though, was expected considering financials were up roughly 8% in the last two sessions.

The telecom sector (+1.1%) managed to post the highest gain. The energy sector (+1.0%) also provided leadership, although it finished well off its session high as crude oil was unable to hold its gains.

January crude oil ( +$0.44 to $91.05) traded in a volatile manner following word overnight that an explosion cut Canadian oil shipments through four pipelines in Minnesota that supply crude to the Midwest. After spiking more than $4.00 per barrel, prices pulled back on news that two pipelines were reopened and the remaining pipelines will be reopened within a few days.

There were several economic reports released, although the market's response was mostly muted.

Initial jobless claims for the week ended Nov. 24 rose to 352,000 from 329,000 the week before. This is just one week of data in what can be a volatile series, but it bears watching to see if an uptrend develops.

Third quarter real GDP was revised upward to a very strong 4.9% annual growth rate from a previously reported 3.9%. This was in-line with expectations. On a related note, Dow Jones reports the White House raised its 2007 U.S. GDP forecast to 2.7% versus 2.3% and cut its 2008 U.S. GDP forecast to 2.7% versus 3.1%.

New home sales for October rose 1.5%, but only because the September level was revised sharply lower. At an annual rate of 728,000, sales were below expectations of about 750,000. The median price of a new home sold dropped a very steep 13%. The housing industry remains in a deep slump that will continue for a while. DJ30 +22.28 NASDAQ +5.22 SP500 +.70 NASDAQ Dec/Adv/Vol 1629/1366/2.17 bln NYSE Dec/Adv/Vol 1784/1474/1.33 bln

3:30 pm : Heading into the final half-hour of trading, the major indices continue to cling to the unchanged mark. Market volatility is slightly lower today as indicated by the 1.1% decline in the VIX.

After the close, eight companies are confirmed to report earnings, including Dell (DELL 28.34, +0.65).

Tomorrow before the open, October core-PCE Inflation, Personal Income and Personal Spending will all be released at 8:30ET.DJ30 +16.26 NASDAQ +4.02 SP500 -0.10 NASDAQ Dec/Adv/Vol 1583/1354/1.77 bln NYSE Dec/Adv/Vol 1791/1451/967 mln