NYSE Dow Jones finished today at:

[bigdog]

Source: http://finance.yahoo.com

Was OK until the last 45 minutes; check the chart below!!!

An aggressive selling effort in the final hour of trade took the stock market from a solid gain to a considerable loss. The downturn was broad based and left many of the major sectors to settle at session lows.

Stocks had been showing moderate weakness ahead of the opening bell, but jumped out to a strong gain in the early going. The S&P 500 even made its way to a near 1% gain so that it fractionally set a new high for 2009.

Spooked traders unraveled a rally in stocks late Wednesday as a downbeat assessment of a bank touched off fears that the market is getting overheated.

The Dow Jones industrial average ended down 92 points after having risen 78 points earlier in the day to a new high for the year.

Analysts pointed to a note on Wells Fargo & Co. from banking analyst Richard Bove as the source of the drop, but also said a mix of complacency and lingering concerns about the pace of the market's climb in the past seven months left stocks ripe for a hit.

The NYSE DOW closed LOWER -92.12 points -0.92% on Wednesday October 21
Sym Last........ ........Change..........
Dow 9,949.36 -92.12 -0.92%
Nasdaq 2,150.73 -12.74 -0.59%
S&P 500 1,081.40 -9.66 -0.89%
30-yr Bond 4.23% +0.07

NYSE Volume 6,514,343,500 (prior day 6,108,117,000)
Nasdaq Volume 2,600,789,500 (prior day 2,156,024,250)

Oil 71.50 -0.05 -0.07%
Gold US$/oz 1058.95 +4.35 +0.41%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,257.85 +14.45 +0.28%
DAX 5,833.49 +21.72 +0.37%
CAC 40 3,873.22 +1.77 +0.05%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 10,333.39 -3.45 -0.03%
Hang Seng 22,318.11 -66.85 -0.30%
Straits Times 2,692.55 -18.54 -0.68%

http://finance.yahoo.com/news/Stocks-turn-lower-as-note-on-apf-2891092628.html?x=0

Stocks turn lower as note on banks spooks traders

Stock market turns lower as analyst note about Wells Fargo hurts financials; Dow falls 92

By Tim Paradis, AP Business Writer
On 5:44 pm EDT, Wednesday October 21, 2009

NEW YORK (AP) -- Spooked traders unraveled a rally in stocks late Wednesday as a downbeat assessment of a bank touched off fears that the market is getting overheated.

The Dow Jones industrial average ended down 92 points after having risen 78 points earlier in the day to a new high for the year.

Analysts pointed to a note on Wells Fargo & Co. from banking analyst Richard Bove as the source of the drop, but also said a mix of complacency and lingering concerns about the pace of the market's climb in the past seven months left stocks ripe for a hit.

Joe Saluzzi, co-head of equity trading at Themis Trading LLC, said the note was a reminder of troubles still in the economy and was enough to scare many traders.

"They all ran for the exits at the same time," he said.

The slide in the final hour of trading was reminiscent of the types of big swings seen a year ago at the height of the financial crisis. But analysts said the reasons for the latest slide had been building throughout the day: Major stock indexes touched their highest levels in a year, the dollar extended its drop, oil rose above $82 a barrel and Wal-Mart Stores Inc. said it was cutting prices, a sign that consumers are still struggling.

The pullback comes as analysts say some investors have become too relaxed.

The Chicago Board Options Exchange's Volatility Index, known as the market's fear index, jumped late in the day and ended with a gain of 6.3 percent. During trading it had touched its lowest level since August 2008. The VIX stands at 22.2 and is down 44.5 percent this year. Its historical average is 18-20. It hit a record 89.5 a year ago.

Todd Colvin, vice president at MF Global, said investors had grown too complacent in betting that stocks would continue to climb.

"It was a very one-sided trade. Stocks have been going up," he said. "We're starting to see 'Wait a minute, we're not out of the woods yet.'"

The Dow Jones industrial average fell 92.12, or 0.9 percent, to 9,949.36, just above its low of the day. It was the biggest point and percent drop since Oct. 1. The Dow, which also lost ground Tuesday, has fallen in three of the last four days. The Dow closed above 10,000 last week for the first time in a year.

The broader Standard & Poor's 500 index fell 9.66, or 0.9 percent, to 1,081.40, after reaching 1,101.36, its highest level in the past year. The Nasdaq composite index fell 12.74, or 0.6 percent, to 2,150.73.

Two stocks fell for every one that rose on the New York Stock Exchange, where consolidated volume came to 5.7 billion shares compared with 5.4 billion Tuesday.

Stocks spent much of the day higher after a handful of banks, including Wells Fargo, as well as Morgan Stanley and US Bancorp, posted better results for the July-September quarter. All of them also had higher loan losses, however. That is a sign that the broader economy is struggling even as the financial industry recovers.

Last week, Bank of America Corp., JPMorgan Chase & Co. and Citigroup Inc. also reported higher credit losses as consumers and businesses struggle to pay off their bills.

Dan Deming, a trader with Strutland Equities in Chicago, said the S&P 500's move above 1,100 made some investors uneasy about the market's rise. The index is up 59.9 percent from a 12-year low in early March.

Bond prices fell, pushing yields higher. The yield on the benchmark 10-year Treasury note rose to 3.39 percent from 3.34 percent late Tuesday.

The day's drop came as crude oil rose $2.25 to settle at $81.37 per barrel on the New York Mercantile Exchange as the dollar weakened. Commodities are priced in dollars, making them cheaper for overseas buyers when the greenback slides.

If energy prices rise too far it could make it harder for the economy to recover by raising transportation and other costs.

Banks, which had been leading the market higher, were mainly lower after the note about Wells Fargo. Wells Fargo fell $1.56, or 5.1 percent, to $28.90. Morgan Stanley rose $1.56, or 4.8 percent, to $34.08 and US Bancorp rose 63 cents, or 2.7 percent, to $24.43.

Wal-Mart said during the afternoon that it would cut prices this holiday season for a week at a time on thousands of items. That made some investors nervous that the nation's largest retailer doesn't expect consumers will be able to spend much for the important shopping period.

Airlines slumped after American Airlines parent AMR Corp., Continental Airlines Inc. and UAL Corp.'s United Airlines posted losses. AMR shares fell 91 cents, or 11.9 percent, to $6.75 and Continental slid $2.19, or 13.8 percent, to $13.73, while UAL fell 98 cents, or 12.4 percent, to $6.92.

The market's slide didn't pull all stocks lower. Some technology names rose after Yahoo Inc. and SanDisk Corp., a maker of flash memory cards, reported profits that topped analyst expectations after the close of trading Tuesday. Yahoo rose 49 cents, or 2.9 percent, to $17.66, while SanDisk jumped $2.05, or 9.5 percent, to $23.53.

Shares of Apple Inc. set a record, topping its previous trading high of $202.96 from Dec. 27, 2007. The company, which on Monday posted a 47 percent jump in its third-quarter earnings, rose $6.16, or 3.1 percent, to $204.92. It traded as high as $208.71.

In other trading, the Russell 2000 index of smaller companies fell 8.30, or 1.4 percent, to 605.11.

Overseas, Britain's FTSE 100 rose 0.3 percent, Germany's DAX index rose 0.4 percent, and France's CAC-40 advanced 0.1 percent. Japan's Nikkei stock average fell 0.03 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks stumbled in the early going, but strength among blue chips and financials helped the broader market to fight its way back to log an impressive gain for the session.

Participants appeared unfazed by a large batch of better-than-expected earnings reports this morning. In turn, stocks found little support and traded lower during the first few minutes of the session.

Investors encouraged by a good batch of earnings reports and forecasts jumped back into stocks after a two-day slide.

Stocks posted big gains Thursday as investors snapped up financial shares after several banks said they weren't seeing as many loans go bad. The market extended its advance in afternoon trading when Wal-Mart Stores Inc. said it expects sales to grow this year and increase at a faster pace next year.

The Dow Jones industrial average jumped 132 points and logged the biggest gain of major indexes after Wal-Mart's forecast and as several companies included in the indicator reported earnings that beat expectations.

The NYSE DOW closed HIGHER +131.95 points +1.33% on Thursday October 22
Sym Last........ ........Change..........
Dow 10,081.31 +131.95 +1.33%
Nasdaq 2,165.29 +14.56 +0.68%
S&P 500 1,092.91 +11.51 +1.06%
30-yr Bond 4.25% +0.02

NYSE Volume 6,032,991,000 (prior day 6,514,343,500)
Nasdaq Volume 2,296,653,750 (prior day 2,600,789,500)

Oil 71.50 -0.05 -0.07%
Gold US$/oz 1060.00 +1.65 +0.16%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,207.36 -50.49 -0.96%
DAX 5,762.93 -70.56 -1.21%
CAC 40 3,820.85 -52.37 -1.35%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 10,267.17 -66.22 -0.64%
Hang Seng 22,210.52 -107.59 -0.48%
Straits Times 2,688.11 -4.44 -0.16%

http://finance.yahoo.com/news/Stock...8.html?x=0&sec=topStories&pos=2&asset=&ccode=

Stocks rise as financial, consumer stocks gain

Stocks rebound as upbeat earnings reports push investors into financial, consumer stocks

By Tim Paradis, AP Business Writer
On 6:02 pm EDT, Thursday October 22, 2009

NEW YORK (AP) -- Investors encouraged by a good batch of earnings reports and forecasts jumped back into stocks after a two-day slide.

Stocks posted big gains Thursday as investors snapped up financial shares after several banks said they weren't seeing as many loans go bad. The market extended its advance in afternoon trading when Wal-Mart Stores Inc. said it expects sales to grow this year and increase at a faster pace next year.

The Dow Jones industrial average jumped 132 points and logged the biggest gain of major indexes after Wal-Mart's forecast and as several companies included in the indicator reported earnings that beat expectations.

The technology-heavy Nasdaq composite index advanced the least among major indicators following a disappointing forecast from online retailer eBay Inc.

Tech stocks could get a lift Friday following Amazon.com Inc.'s report that its third-quarter earnings jumped 62 percent. The online retailer brought in more revenue than expected and said it expects sales will continue to grow. The company's report arrived after markets closed, and its shares jumped 15 percent in late trading after ticking up only 3 cents during the day.

Consumer stocks rose after Wal-Mart said it expects sales to increase 1 to 2 percent this year and 4 to 6 percent next year. The nation's largest retailer also said it would focus on emerging markets when opening stores. Meanwhile, clothing retailer J. Crew Group Inc. raised its earnings forecast because of stronger sales and profit margins.

Financial stocks rose after PNC Financial Services Group Inc. and Fifth Third Bancorp each said that bad loans weren't piling up as fast as they had been. Financials had pulled the market lower Wednesday after an analyst took issue with a profit report at Wells Fargo & Co.

Dow components Travelers Cos., McDonald's Corp., 3M Co. and AT&T Inc. posted stronger results than analysts had forecast.

Adam Gould, senior portfolio manager at Direxion Funds in New York, said the market's bounce on the Wal-Mart forecast illustrates how difficult it is to keep stocks down and allow those who missed the seven-month run to buy shares at lower prices.

"People have wanted to see some type of correction but whenever any earnings come out and beat and whenever any economic news comes out that is decent, the market rallies," he said.

The Dow rose 131.95, or 1.3 percent, to 10,081.31. The index is 11 points below its highest close of the year, which it reached on Monday.

The broader Standard & Poor's 500 index rose 11.51, or 1.1 percent, to 1,092.91. The Nasdaq rose 14.56, or 0.7 percent, to 2,165.29.

Two stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to 5.3 billion shares compared with 5.7 billion Wednesday.

Bond prices fell. The yield on the benchmark 10-year Treasury note rose to 3.42 percent from 3.39 percent late Wednesday.

Mixed economic and earnings reports signal that the economy remains in flux.

The Labor Department said workers filing for unemployment benefits for the first time rose more than expected last week. New claims rose to 531,000 last week from 520,000 the previous week.

Separately, a private forecast of economic activity rose for the sixth straight month in September. The Conference Board's index of leading economic indicators rose 1 percent last month after a 0.4 percent gain in August.

Jeffrey Beamer, Portfolio Manager of Lacerte Capital in Dallas, said earnings reports showing improved profits but still-weak revenue raise questions about whether the market can hold its gains. Cost-cutting, he noted, can only help so much.

"You may look great this quarter but what are you going to do in the coming quarters," Beamer said. "If the earnings aren't just really solid we could get a decent pullback here."

The S&P 500 index is up 61.6 percent from a 12-year low in March.

Wal-Mart slipped 15 cents to $50.48, while J. Crew jumped $5.75, or 15.2 percent, to $43.49.

PNC Financial rose $5.69, or 12.7 percent, to $50.65 and Fifth Third rose 69 cents, or 6.8 percent, to $10.80.

Travelers, the insurer, rose $3.68, or 7.7 percent, to $51.70, while McDonald's advanced $1.17, or 2 percent, to $59.50. Manufacturer 3M advanced $2.46, or 3.2 percent, to $78.79, while AT&T rose 16 cents, or 0.6 percent, to $26.10.

Crude fell 18 cents to settle at $81.19 per barrel on the New York Mercantile Exchange, while gold fell.

The Russell 2000 index of smaller companies rose 8.27, or 1.4 percent, to 613.38.

Overseas markets fell after Wednesday's slide in U.S. stocks. Britain's FTSE 100 fell 1 percent, Germany's DAX index dropped 1.2 percent, and France's CAC-40 fell 1.4 percent. Japan's Nikkei stock average fell 0.6 percent

 

[bigdog]

Source: http://finance.yahoo.com

The Dow Jones industrial average closed the week down 23.73, or 0.2 percent, at 9,972.18. The Standard & Poor's 500 index fell 8.08, or 0.7 percent, to 1,079.60. The Nasdaq composite index fell 2.33, or 0.1 percent, to 2,154.47.

The Russell 2000 index, which tracks the performance of small company stocks, fell 15.32, or 2.5 percent, for the week to 600.86.

The Dow Jones U.S. Total Stock Market Index -- which measures nearly all U.S.-based companies -- ended at 11,008.59, down 103.26, or 0.9 percent.

Participants made a concerted push against stocks Friday, leaving the major indices to end the week on a down note and log their first weekly loss since the start of the month. Weakness was widespread as a large batch of better-than-expected earnings results and an improved rate of existing home sales were shrugged off.

Investors dumped stocks and locked in profits Friday after the glow of a week full of strong earnings reports faded.

The retreat came as cautious forecasts from railroads caused unease about the economy and a rising dollar pushed prices of commodities lower, which hurt materials and energy stocks. The Dow Jones industrial average fell 109 points to end the week with a modest loss.

Traders appeared eager to collect gains after earnings reports for the July-September quarter came in far stronger than forecast, which had pushed stock indexes up more than 6 percent in the three weeks leading into Friday.

The NYSE DOW closed LOWER -109.13 points -1.08% on Friday October 23
Sym Last........ ........Change..........
Dow 9,972.18 -109.13 -1.08%
Nasdaq 2,154.47 -10.82 -0.50%
S&P 500 1,079.60 -13.31 -1.22%
30-yr Bond 4.2890% +0.0400

NYSE Volume 5,543,766,000 (prior day 6,032,991,000)
Nasdaq Volume 2,478,351,750 (prior day 2,296,653,750)

Oil 71.50 -0.05 -0.07%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,242.57 +35.21 +0.68%
DAX 5,740.25 -22.68 -0.39%
CAC 40 3,808.24 -12.61 -0.33%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 10,282.99 +15.82 +0.15%
Hang Seng 22,589.73 +379.21 +1.71%
Straits Times 2,715.34 +33.37 +1.24%

http://finance.yahoo.com/news/Stock...2.html?x=0&sec=topStories&pos=1&asset=&ccode=

Stocks end week lower as investors take profits

Tepid forecasts from railroads worry traders as weaker oil hits energy stocks; Dow falls 109

By Tim Paradis, AP Business Writer

NEW YORK (AP) -- Investors dumped stocks and locked in profits Friday after the glow of a week full of strong earnings reports faded.

The retreat came as cautious forecasts from railroads caused unease about the economy and a rising dollar pushed prices of commodities lower, which hurt materials and energy stocks. The Dow Jones industrial average fell 109 points to end the week with a modest loss.

Traders appeared eager to collect gains after earnings reports for the July-September quarter came in far stronger than forecast, which had pushed stock indexes up more than 6 percent in the three weeks leading into Friday.

"We've had such a great run that you're going to get people taking money off the table, especially at the end of the week," said Dr. Bob Froehlich, senior managing director, at Hartford Financial Services.

Analysts have been calling for stocks to take more breaks after a seven-month rally that raised questions about whether the market was getting ahead of itself. The Standard & Poor's 500 index is up 59.6 percent since March, though it's still down 31 percent from its peak two years ago.

The day's drop came despite some pieces of good news. The National Association of Realtors reported that existing home sales posted their biggest increase in 26 years in September, while shares of Amazon.com rode to a new high after the Internet retailer's earnings and forecasts came in much stronger than expected. Amazon's gains as well as a jump in Microsoft Corp. after its own strong earnings helped limit the losses of the technology-heavy Nasdaq composite index.

However, the strong results from Amazon and Microsoft couldn't erases concerns over a poor outlook and sharp profit drop from chipmaker Broadcom Corp. or the pessimistic forecasts from railroad CEOs.

Union Pacific's CEO Jim Young said he expects the economy to "limp along" until unemployment starts to fall, while Burlington Northern also issued a tepid forecast. Railroads are seen as an early indicator of economic activity because of the key role they play in shipping goods to manufacturers and markets.

Linda Duessel, equity market strategist at Federated Investors, said the market needed to pause after the massive surge it has made over the past seven months.

"The run-up has been too fast," she said. "You need to consolidate."

The Dow fell 109.13, or 1.1 percent, to 9,972.18. The S&P 500 index fell 13.31, or 1.2 percent, to 1,079.60. The Nasdaq fell 10.82, or 0.5 percent, to 2,154.47.

For the week, the Dow lost 24 points, or 0.2 percent. The S&P 500 index fell 0.7 percent and the Nasdaq lost 0.1 percent.

The major indexes closed at their highest levels in a year on Monday but zigzagged the rest of the week as investors digested a rush of earnings reports and grappled with worries that stocks are overheated.

Bond prices fell Friday, sending their yields higher. The yield on the benchmark 10-year Treasury note rose to 3.49 percent from 3.42 percent late Thursday.

The dollar rose against most other major currencies. That pushed down oil, which becomes more expensive for overseas buyers when the dollar strengthens. Crude oil fell 69 cents to settle at $80.50 per barrel on the New York Mercantile Exchange.

Frederic H. Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Ore., said some stock market investors held off selling because profit reports have been better than expected.

"I think what we have seen is maybe the temptation to take profits postponed a bit because of the exceptional earnings numbers," he said.

Fewer than half of the companies in the S&P 500 index have reported third-quarter earnings, but so far earnings from eight of 10 companies have exceeded analysts' forecasts, according to Thomson Reuters.

Next week brings reports from Kellogg Co., Procter & Gamble Co. and Exxon Mobil Corp. Reports are due on sales of new homes, consumer confidence and demand for big-ticket manufactured items.

Friday's report from the National Association of Realtors was seen as an aberration. Existing home sales rose 9.4 percent as buyers raced to complete purchases before a tax credit expires at the end of November. The pace of the gain was the strongest in two years and nearly double what analysts had expected.

Among companies posting earnings, Union Pacific fell $3.39, or 5.6 percent, to $57.73 and Burlington Northern fell $5.50, or 6.5 percent, to $79.12.

Amazon jumped $25.04, or 26.8 percent, to $118.49 after its third-quarter earnings jumped 68 percent and it forecast more than 20 percent growth for the current quarter. The stock logged a high of $119.65.

Microsoft's earnings fell 18 percent, largely because it deferred revenue when it let buyers of PC's over the summer get free upgrades to Windows 7, which the company released this week. The stock rose $1.43, 5.4 percent, to $28.02.

Broadcom fell $2.23, or 7.3 percent, to $28.50 after the company's earnings fell by half. CEO Scott A. McGregor disappointed investors with a cautious forecast. "There's a little concern about whether Santa's coming this year or not," he said on a conference call.

Three stocks fell for every one that rose on the New York Stock Exchange, where consolidated volume came to 4.8 billion shares, compared with 5.3 billion Thursday.

Overseas, Britain's FTSE 100 climbed 0.7 percent, Germany's DAX index fell 0.4 percent and France's CAC-40 lost 0.3 percent. Japan's Nikkei stock average rose 0.2 percent.

The Dow Jones industrial average closed the week down 23.73, or 0.2 percent, at 9,972.18. The Standard & Poor's 500 index fell 8.08, or 0.7 percent, to 1,079.60. The Nasdaq composite index fell 2.33, or 0.1 percent, to 2,154.47.

The Russell 2000 index, which tracks the performance of small company stocks, fell 15.32, or 2.5 percent, for the week to 600.86.

The Dow Jones U.S. Total Stock Market Index -- which measures nearly all U.S.-based companies -- ended at 11,008.59, down 103.26, or 0.9 percent.

191

 

[bigdog]

Source: http://finance.yahoo.com

Stocks dropped in broad-based fashion after they failed to extend an early gain and the U.S. dollar made another strong move off of its yearly low.

The major indices were up solidly in the early going, but the S&P 500 struggled to break above the 1090 zone and the Nasdaq 100 ran into resistance when it approached the 2009 highs that it had set last week. As stocks stalled, sellers stepped in and undercut the early advance. That caused stocks to drop sharply and spend the rest of the afternoon trading in negative territory.

A strengthening dollar and worries about an overheated market pounded stocks.

Stock indexes started higher Monday but turned sharply lower at midmorning as a rebound in the value of the dollar stalled a rally in commodities. Early gains in prices for oil and other commodities had pushed up shares of energy and materials companies.

The sharp swings in currency and commodities markets sent the Dow Jones industrial average whipsawing in a 200-point range, surrendering an early advance for a loss of 104 points. Stocks have fallen in four of the last five days.

The NYSE DOW closed LOWER -104.22 points -1.05% on Monday October 26
Sym Last........ ........Change..........
Dow 9,867.96 -104.22 -1.05%
Nasdaq 2,141.85 -12.62 -0.59%
S&P 500 1,066.95 -12.65 -1.17%
30-yr Bond 4.3660% +0.0770

NYSE Volume 6,478,093,000 (prior day 5,543,766,000)
Nasdaq Volume 2,340,182,000 (prior day 2,478,351,750)

Oil 71.50 -0.05 -0.07%


Europe
Symbol... Last...... .....Change.......
FTSE 100 5,191.74 -50.83 -0.97%
DAX 5,642.16 -98.09 -1.71%
CAC 40 3,744.45 -63.79 -1.68%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 10,362.62 +79.63 +0.77%
Hang Seng 22,589.73 +379.21 +1.71%
Straits Times 2,720.74 +5.40 +0.20%

http://finance.yahoo.com/news/Stock...6.html?x=0&sec=topStories&pos=3&asset=&ccode=

Stocks slide as rising dollar hits oil prices

Stocks give up early gains as rising dollar hurts commodity prices; Dow falls 104 points

By Tim Paradis, AP Business Writer
On 5:51 pm EDT, Monday October 26, 2009

NEW YORK (AP) -- A strengthening dollar and worries about an overheated market pounded stocks.

Stock indexes started higher Monday but turned sharply lower at midmorning as a rebound in the value of the dollar stalled a rally in commodities. Early gains in prices for oil and other commodities had pushed up shares of energy and materials companies.

The sharp swings in currency and commodities markets sent the Dow Jones industrial average whipsawing in a 200-point range, surrendering an early advance for a loss of 104 points. Stocks have fallen in four of the last five days.

"This is the tug-of-war that's been going on for a while now," said Samuel Dedio, portfolio manager of the Artio U.S. Smallcap Fund in New York, referring to sparring between the dollar and stocks.

Oil gave up early gains to settle down $1.82 at $78.68 per barrel on the New York Mercantile Exchange. That hurt the shares of major oil companies such as ConocoPhillips.

Changes in the dollar's value against other currencies frequently send commodities prices up or down. Since most commodities are priced in dollars they become more attractive to investors outside the U.S. when the dollar is weak, and more expensive when the dollar is strong.

Analysts also said some investors are looking to pocket gains after a stock market run that has stretched nearly eight months and brought share prices to their highest levels in a year.

"I'm not sure that you need to have a good reason to see a reversal like this other than too much too fast," said Harry Rady, chief executive of Rady Asset Management in San Diego, referring to the market's rise from 12-year lows in early March.

Technology shares fared better than other parts of the market Monday after Marvell Technology Group Ltd., which makes chips used in phone networks, raised its fiscal third-quarter revenue forecast. That helped the technology-focused Nasdaq composite index limit its losses. RadioShack Corp.'s third-quarter sales topped expectations, helping some retailers.

Richard Ross, global technical strategist at Auerbach Grayson in New York, said the direction of the dollar as well as volatility continues to drive stock trading. "You're seeing this sort of waltz between the dollar and volatility and stocks," Ross said.

The Dow fell 104.22, or 1.1 percent, to 9,867.96. The index fell 109 Friday. The slide is the first consecutive triple-digit loss for the Dow since June 15-16.

The broader Standard & Poor's 500 index fell 12.65, or 1.2 percent, to 1,066.95. The index, which is the basis for many mutual funds, is down 2.8 percent from its recent peak a week ago.

The Nasdaq fell 12.62, or 0.6 percent, to 2,141.85.

About three stocks fell for every one that rose on the New York Stock Exchange, where consolidated volume came to 5.7 billion shares compared with 4.8 billion Friday.

Stocks fell Friday after a rise in the dollar hurt commodity prices. The Dow lost 0.2 percent last week, while the S&P 500 index fell 0.7 percent.

Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.56 percent from 3.49 percent late Friday. It was the first time since late August that the yield topped 3.50 percent.

The dollar rose against most other major currencies, while gold fell.

Financial stocks posted some of the biggest losses as an analyst lowered his ratings on some regional banks and as traders worried about what might happen if regulators try to impose rules on the size of financial institutions.

"We're seeing legislation in Washington drive trading," said John Brady, senior vice president of global interest rate products at MF Global in Chicago.

Meanwhile, Rochdale Securities bank analyst Richard Bove lowered his ratings on Fifth Third Bancorp, SunTrust Banks Inc. and US Bancorp. Fifth Third fell 82 cents, or 7.9 percent, to $9.52 and SunTrust slid $1.14, or 5.4 percent, to $19.85. US Bancorp fell 80 cents, or 3.2 percent, to $24.15.

Homebuilder stocks fell as investors tried to determine whether Congress will extend a tax credit for first-time homebuyers. Top Democrats in the Senate pushed for a plan that would continue the credit but phase it out over the next year.

An analyst also cut his estimates on several companies in the industry while warning that most companies won't eke out a small profit until late 2011.

Pulte Homes Inc. fell 38 cents, or 3.8 percent, to $9.70, while Hovnanian Enterprises Inc. slid 23 cents, or 5.4 percent, to $4.07.

Among oil companies, ConocoPhillips sank $1.23, or 2.4 percent, to $50.74.

In other trading, Marvell rose 41 cents, or 2.8 percent, to $14.99, while RadioShack rose $2.49, or 15.9 percent, to $18.15.

The Russell 2000 index of smaller companies fell 7.18, or 1.2 percent, to 593.68.

Overseas markets fell after U.S. stocks dropped. Britain's FTSE 100 fell 1 percent, Germany's DAX index and France's CAC-40 each fell 1.7 percent. Japan's Nikkei stock average rose 0.8 percent.

 

[bigdog]

Source: http://finance.yahoo.com

An aggressive selling effort in the final hour of trade took the stock market from a solid gain to a considerable loss. The downturn was broad based and left many of the major sectors to settle at session lows.

Stocks had been showing moderate weakness ahead of the opening bell, but jumped out to a strong gain in the early going. The S&P 500 even made its way to a near 1% gain so that it fractionally set a new high for 2009.

Stocks mostly fell Tuesday as mixed reports on home prices and consumer confidence gave investors little incentive to step into the market.

Rising energy stocks and a decision by IBM Corp. to double its stock-repurchase plan propped up the Dow Jones industrials but the Nasdaq composite index slid after Chinese Internet search company Baidu Inc. warned its revenue could take a hit as it switches its advertising system.

Two stocks fell for every one that rose on the New York Stock Exchange.

The NYSE DOW closed HIGHER +14.21 points +0.14% on Tuesday October 27
Sym Last........ ........Change..........
Dow 9,882.17 +14.21 +0.14%
Nasdaq 2,116.09 -25.76 -1.20%
S&P 500 1,063.41 -3.54 -0.33%
30-yr Bond 4.2890% -0.0770

NYSE Volume 6,241,547,000 (prior day 6,478,093,000)
Nasdaq Volume 2,417,001,250 (prior day 2,340,182,000)

Oil 71.50 -0.05 -0.07%
Gold US$/oz 1038.80 -14.15 -1.34%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,200.97 +9.23 +0.18%
DAX 5,635.02 -7.14 -0.13%
CAC 40 3,743.95 -0.50 -0.01%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 10,212.46 -150.16 -1.45%
Hang Seng 22,169.59 -420.14 -1.86%
Straits Times 2,694.50 -22.12 -0.81%

http://finance.yahoo.com/news/Stock...0.html?x=0&sec=topStories&pos=1&asset=&ccode=

Stocks mostly fall on mixed data; IBM lifts Dow

Stocks end mostly lower on mixed data on housing, consumers; IBM boosts outlay for buybacks

By Tim Paradis, AP Business Writer
On 5:49 pm EDT, Tuesday October 27, 2009

NEW YORK (AP) -- Stocks mostly fell Tuesday as mixed reports on home prices and consumer confidence gave investors little incentive to step into the market.

Rising energy stocks and a decision by IBM Corp. to double its stock-repurchase plan propped up the Dow Jones industrials but the Nasdaq composite index slid after Chinese Internet search company Baidu Inc. warned its revenue could take a hit as it switches its advertising system.

Two stocks fell for every one that rose on the New York Stock Exchange.

Bond prices rose after strong demand at a government debt auction, signaling that investors are still seeking safety.

Stocks rose at the start of trading following a report that home prices in 20 major metropolitan markets increased for the third straight month in August. The Standard & Poor's/Case-Shiller home price index gained 1 percent in August from July.

However, the gains in home prices couldn't offset worries that consumers might not be in a mood to spend this holiday season. The Conference Board said its Consumer Confidence Index fell unexpectedly to 47.7 in October, its second-lowest reading since May. Analysts predicted a figure of 53.1.

While data on consumer confidence can be volatile, the drop-off still took some of the sheen off corporate profit reports for the July-September quarter, which have been coming in ahead of expectations.

"When I look at the consumer, I think that is the next big test," said Dave Hinnenkamp, chief executive KDV Wealth Management in Minneapolis. "We've passed a big test on the earnings front."

The Dow rose 14.21, or 0.1 percent, to 9,882.17. The broader Standard & Poor's 500 index fell 3.54, or 0.3 percent, to 1,063.41, while Nasdaq fell 25.76, or 1.2 percent, to 2,116.09.

Bond prices rose after a Treasury Department auction of $44 billion in two-year notes drew robust demand. That pushed yields lower. The yield on the two-year note rose fell to 0.94 percent from 1.04 percent late Monday. The yield on the benchmark 10-year Treasury note fell to 3.45 percent from 3.56 percent.

Stocks have fallen for most of the past week on worries about the economy. The Dow dropped 104 points Monday after a similar slide Friday. It was the first consecutive triple-digit loss for the Dow since mid-June.

The drops have come as a strengthening dollar pushed the prices of commodities lower. The dollar mostly rose again Tuesday but didn't dominate trading.

Analysts say the coming days could be choppy as traders look for fuel to extend the market's climb. The down days are welcome by those who say the advance has been too quick. The S&P 500 index is up 57.2 percent since March but down 3.1 percent from the start of last week when it closed at its highest level in more than a year.

The end of the month could also present hurdles. For many mutual funds, the last trading day of their fiscal year is Friday. Fund managers looking to minimize taxes for shareholders could sell some of their investments.

Investors are also looking to the government's first reading on economic output for the third quarter. The report on gross domestic product is due Thursday and could signal an end to the recession that many analysts have said is over, at least officially.

Joe Battipaglia, market strategist for the private client group at Stifel Nicolaus & Co. in Yardley, Pa., said recent economic data don't support arguments for a fast recovery in the economy, nor do they suggest a rebound would be weak enough to push stocks back down to the levels of eight months ago.

"We are in what I would call purgatory right now where the U.S. economy is rather limp," he said.

Crude oil rose 87 cents to settle at $79.55 per barrel on the New York Mercantile Exchange. Gold fell.

IBM, one of the 30 companies that make up the Dow, rose after it added $5 billion to its stock repurchase fund. The total now stands at $9.2 billion. The stock advanced 54 cents, or 0.5 percent, to $120.65.

The rise in oil after a three-day slide helped lift energy stocks and the Dow. Exxon Mobil Corp., which is slated to report earnings Thursday, rose $1.68, or 2.3 percent, to $74.91.

Baidu's American Depositary shares slid $49.31, or 11.4 percent, to $383.66 after it its warning about revenue.

Consolidated volume at the NYSE fell to 5.4 billion shares from 5.7 billion Monday.

The Russell 2000 index of smaller companies slid 6.69, or 1.1 percent, to 586.99.

Britain's FTSE 100 rose 0.2 percent, Germany's DAX index fell 0.1 percent, and France's CAC-40 slipped less than 0.1 percent. Japan's Nikkei stock average fell 1.5 percent.

 

[bigdog]

Source: http://finance.yahoo.com

The S&P 500 closed below its 50-day moving average for the first time since mid-July as sellers moved en masse ahead of tomorrow morning's advance third quarter GDP reading.

Stocks were mired in weakness for virtually the entire session as buyers stepped to the sidelines despite another batch of generally better-than-expected earnings. Stiff selling in overseas trade certainly didn't help the case for bulls, nor did disappointing new home sales data, which showed that new home sales for September fell 3.6% month-over-month to an annualized rate of 402,000 units. That was well below the rate of 440,000 units that was widely expected.

Signs of a weaker housing market and a gloomier outlook on the economy gave investors more reasons to dump stocks.

Major market indexes fell by the largest amount in about a month Wednesday after the Commerce Department said new home sales dropped for the first time in five months. Sales slid 3.6 percent in September to 402,000. Analysts had expected an increase.

The Dow Jones industrial average lost 119 points, or 1.2 percent, in its third straight triple-digit drop.

The NYSE DOW closed LOWER -119.48 points -1.21% on Wednesday October 28
Sym Last........ ........Change..........
Dow 9,762.69 -119.48 -1.21%
Nasdaq 2,059.61 -56.48 -2.67%
S&P 500 1,042.63 -20.78 -1.95%
30-yr Bond 4.2430% -0.0460

NYSE Volume 7,618,303,000 (prior day 6,241,547,000)
Nasdaq Volume 2,805,304,750 (prior day 2,417,001,250)

Oil 71.50 -0.05 -0.07%


Europe
Symbol... Last...... .....Change.......
FTSE 100 5,080.42 -120.55 -2.32%
DAX 5,496.27 -138.75 -2.46%
CAC 40 3,663.78 -80.17 -2.14%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 10,075.05 -137.41 -1.35%
Hang Seng 21,761.58 -408.01 -1.84%
Straits Times 2,648.98 -45.52 -1.69%

http://finance.yahoo.com/news/Stock...4.html?x=0&sec=topStories&pos=1&asset=&ccode=

Stocks slide as new home sales fall

Stocks tumble as new home sales post surprise drop for September; Dow falls 119, Nasdaq slumps

By Tim Paradis, AP Business Writer
On 6:05 pm EDT, Wednesday October 28, 2009

NEW YORK (AP) -- Signs of a weaker housing market and a gloomier outlook on the economy gave investors more reasons to dump stocks.

Major market indexes fell by the largest amount in about a month Wednesday after the Commerce Department said new home sales dropped for the first time in five months. Sales slid 3.6 percent in September to 402,000. Analysts had expected an increase.

The Dow Jones industrial average lost 119 points, or 1.2 percent, in its third straight triple-digit drop.

The Nasdaq composite index fell 2.7 percent, while the Russell 2000 index of smaller companies tumbled 3.5 percent. Many of the stocks in both indexes are considered more risky in a tough economy and so they suffered some of the biggest losses.

The retreat came as Goldman Sachs Group Inc. reduced its expectation for the nation's economic output for the July-September period. Goldman Sachs predicts third-quarter gross domestic product rose at an annual rate of 2.7 percent, weaker than its earlier forecast of 3 percent.

The government's report on third-quarter GDP is due Thursday. Economists are looking for growth at an annual rate of 3.3 percent after a record four straight quarters of contraction.

The day's slide signaled that investors were reassessing their hopes for a recovery in the economy. Demand for safe-havens like Treasurys rose as did shares of companies whose business is expected to fare better in a slump. Stocks of consumer staples companies like Procter & Gamble Co., which makes Tide detergent and Gillette razors, edged higher.

Energy, financial and retail stocks posted some of the biggest losses.

Analysts said the market's slide in the past week isn't surprising given the size of the advance in the past eight months and mixed economic readings.

"I'm not panicked at the moment," said Manny Weintraub, president of Integre Advisors in New York. "I don't think anyone expected a super robust recovery."

Stocks struggled Tuesday after a disappointing report on consumer confidence stirred worries about the strength of the coming holiday shopping period.

Wednesday's drop was the biggest for stocks since Oct. 1, when traders grappled with worries about jobs and manufacturing.

The Dow fell 119.48, or 1.2 percent, to 9,762.69. The index is down in five of the past seven days.

Broader indexes fell for a fourth straight day, the longest streak of losses in about a month.

The Standard & Poor's 500 index slid 20.78, or 2 percent, to 1,042.63. The Nasdaq dropped 56.48, or 2.7 percent, to 2,059.61.

The Russell 2000 index fell 20.63, or 3.5 percent, to 566.36.

At the New York Stock Exchange 2,777 stocks fell, while 322 rose. Consolidated volume came to 6.7 billion shares compared with 5.4 billion Tuesday.

Overseas markets also tumbled.

Bill Schultz, chief investment officer at McQueen, Ball & Associates in Bethlehem, Pa., said investors are looking at the latest data and worrying that the market has risen too much in anticipation of a recovery. The S&P 500 index is up 54.1 percent from a 12-year low in March, though it is down 5 percent since the start of last week, when it finished at its highest level in more than a year.

The biggest slide since the market began rebounding eight months ago was a 7 percent slide from mid-June to mid-July.

"You're starting to see some trepidation about how we move forward," Schultz said. He said the market is likely to stall without improvements in how much revenue companies bring in and better readings on unemployment.

With about half the companies in the S&P 500 index having reported third-quarter results, revenue is down 7.5 percent, according Thomson Reuters. The unemployment rate stands at 9.8 percent and is expected to top 10 percent.

A strengthening dollar has weighed on commodities prices. That has hurt stocks. The ICE Futures US dollar index rose for a fifth straight day Wednesday, its longest advance since the start of July.

Bond prices rose as investors sought safety. That sent yields lower. The yield on the benchmark 10-year Treasury note fell to 3.42 percent from 3.45 percent late Tuesday.

Crude oil fell $2.09 to settle at $77.46 per barrel on the New York Mercantile Exchange. Gold fell.

The drop in oil weighed on shares of energy companies. Oilfield services company Schlumberger Ltd. fell $2.66, or 4.1 percent, to $62.27.

Financial stocks fell after GMAC Financial Services brought reminders of troubles still hitting many lenders. The former financing arm of General Motors Co. is in talks with the Treasury Department for a third bailout. The company has been among the financial firms hardest hit by rising loan defaults and troubled credit markets. The government holds a 35 percent stake in GMAC after giving it $12.5 billion in bailout money.

Home builders fell after the sales data. Hovnanian Enterprises Inc. slid 41 cents, or 9.5 percent, to $3.89. Toll Brothers Inc. fell 99 cents, or 5.5 percent, to $16.95.

The drop in new home sales follows a report from the National Association of Realtors last week that sales of existing home posted the biggest increase in 26 years in September. Some buyers were trying to get ahead of a tax credit set to expire.

Britain's FTSE 100 fell 2.3 percent, Germany's DAX index fell 2.5 percent, and France's CAC-40 slid 2.1 percent. Japan's Nikkei stock average fell 1.4 percent.

 

[bigdog]

Source: http://finance.yahoo.com

A better-than-expected third quarter GDP reading helped the stock market snap back from its worst loss in weeks, but it wasn't enough to prevent stocks from heading into Friday with a week-to-date loss in excess of 1%.

Despite some wavering in the first few minutes of trade, stocks put together a steady ascent that took all 10 major sectors higher. The broad-based gains stemmed from news that third quarter GDP surged to an annualized growth rate of 3.5%. GDP was expected to increase 3.2% after contracting 0.7% in the second quarter.

Stocks logged their best day in three months as investors rushed into the market on word the economy grew faster than expected during the summer.

The Dow Jones industrial average jumped 200 points Thursday to recoup most of its losses for the week, while demand for safe-haven holdings like Treasurys wilted.

The Commerce Department's report that gross domestic product rose at an annual rate of 3.5 percent in the third quarter reinvigorated investors who had dumped stocks for much of the week on signs of a slowing housing market and a disappointing report on consumer confidence.

The NYSE DOW closed HIGHER +199.89 points +2.05% on Thursday October 29
Sym Last........ ........Change..........
Dow 9,962.58 +199.89 +2.05%
Nasdaq 2,097.55 +37.94 +1.84%
S&P 500 1,066.11 +23.48 +2.25%
30-yr Bond 4.3450% +0.1020

NYSE Volume 6,571,752,500 (prior day 7,618,303,000)
Nasdaq Volume 2,342,304,250 (prior day 2,805,304,750)

Oil 71.50 -0.05 -0.07%
Gold US$/oz 1044.55 +17.70 +1.72%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,137.72 +57.30 +1.13%
DAX 5,587.45 +91.18 +1.66%
CAC 40 3,714.02 +50.24 +1.37%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,891.10 -183.95 -1.83%
Hang Seng 21,264.99 -496.59 -2.28%
Straits Times 2,632.31 -16.67 -0.63%

http://finance.yahoo.com/news/Inves...0.html?x=0&sec=topStories&pos=1&asset=&ccode=

Investors rush back into stocks as economy grows

Stocks jump as better-than-expected GDP report rouses investors; Dow industrials jump 200

By Sara Lepro and Tim Paradis, AP Business Writers
On 6:16 pm EDT, Thursday October 29, 2009

NEW YORK (AP) -- Stocks logged their best day in three months as investors rushed into the market on word the economy grew faster than expected during the summer.

The Dow Jones industrial average jumped 200 points Thursday to recoup most of its losses for the week, while demand for safe-haven holdings like Treasurys wilted.

The Commerce Department's report that gross domestic product rose at an annual rate of 3.5 percent in the third quarter reinvigorated investors who had dumped stocks for much of the week on signs of a slowing housing market and a disappointing report on consumer confidence.

The economic growth came in ahead of the 3.3 percent rise forecast by economists polled by Thomson Reuters. It was the strongest growth in two years and broke four straight quarters of declines. Coming on the 80th anniversary of the stock market crash that triggered the Great Depression, it was the best indication yet that the longest recession since then has ended.

But many analysts caution that it will be hard to sustain the growth at the pace seen in the third quarter.

Government stimulus programs including the popular Cash for Clunkers auto rebates and tax credits for first-time home buyers bolstered the economy. Once the government's stimulus measures run their course, the economy could run afoul of lingering problems such as high unemployment and weak consumer spending.

"I don't think that at this point in the rebound that the economy would be self-sustainable," said Jason D. Pride, director of research at Haverford Investments in Philadelphia. "The only way to have effective sustained economic growth is to have job growth, but it tends to come later."

Analysts say the recovery is likely to be bumpy as consumers try to pay down debt and credit for small businesses remains tight.

But such concerns were pushed aside Thursday.

The Dow Jones industrial average rose 199.89, or 2.1 percent, to 9,962.58. It was the best day for the Dow since July 15.

The broader Standard & Poor's 500 index rose 23.48, or 2.3 percent, to 1,066.11, while the Nasdaq composite index rose 37.94, or 1.8 percent, to 2,097.55.

Bond prices fell, pushing their yields higher. The yield on the benchmark 10-year Treasury note rose to 3.50 percent from 3.42 percent late Wednesday. Bonds extended their early losses after a lackluster auction of seven-year notes.

The ICE Futures US dollar index, which measures the dollar against other major currencies, fell after five straight days of gains. The weaker dollar made commodities more attractive for foreign buyers. Gold rose $16.60 to $1,047.10 an ounce on the New York Mercantile Exchange, while crude oil soared $2.41 to settle at $79.87 a barrel.

Mitch Schlesinger, a managing partner at FBB Capital Partners in Bethesda, Md., said that because of government support, fourth-quarter GDP should provide a better picture of how much the economy has recovered.

"Some of the artificial goosing of the numbers will come out and we'll get a better picture," Schlesinger said. He added that the economy is likely to grow in the fourth quarter, but probably not at as fast a pace as the third quarter.

In the interim, however, investors will welcome the better-than-expected third quarter report, he said.

Other economic news was mixed. The number of people claiming jobless benefits for the first time dropped less than expected last week. The Labor Department said workers filing first-time claims for unemployment dipped 1,000 to a seasonally adjusted 530,000 last week. Economists expected a larger decline to 521,000.

However, the number of people receiving unemployment benefits on an ongoing basis dropped sharply by 148,000 to 5.8 million, below economists' expectations.

Unemployment and consumer spending remain the economy's biggest hurdles. Analysts said the market's renewed confidence following Thursday's GDP report could easily be shaken by the government's monthly employment report or retail sales, especially as the crucial holiday shopping season approaches.

In earnings news, Motorola Inc. shares climbed nearly 10 percent after the cell phone maker posted its second straight quarterly profit following months of heavy losses. The stock rose 78 cents to $8.74.

Five stocks rose for every one that fell on the New York Stock Exchange, where volume came to 5.7 billion shares compared with 6.7 billion Wednesday.

The Russell 2000 index of smaller companies rose 13.86, or 2.5 percent, to 580.22.

Overseas, Britain's FTSE 100 rose 1.1 percent, Germany's DAX index rose 1.7 percent and France's CAC-40 gained 1.4 percent. Japan's Nikkei stock average fell 1.8 percent.

 

[bigdog]

Source: http://finance.yahoo.com

For the week,
- the Dow fell 2.6 percent, its worst since mid-June.
- The S&P 500 index fell 5.1 percent, its biggest drop since mid-May. It lost 2 percent for October.
- The Nasdaq fell 5.1 percent for the week and 3.6 percent for October.

The heady gains that followed a better-than-expected GDP headline number in the previous session proved unsustainable as sellers returned to action Friday to send stocks sharply lower. Losses were broad-based as nearly 95% of the issues in the S&P 500 logged losses, which contributed to the worst weekly loss in five months for the broad market measure.

Financials were the worst hit of the major sectors. They had actually helped lead broad-market gains in the previous session, but plummeted to a 4.8% loss this time around. Within the sector, life and health insurers shed 6.1%. Diversified financial services stocks dropped 6.3%.

Grim signals about consumer spending ripped through the markets Friday, sending stocks tumbling as investors raced for safe havens.

The Standard & Poor's 500 index and the Nasdaq composite index ended with losses for October, breaking a streak of seven months of gains. The Dow Jones industrial average tumbled 250 points, erasing a 200-point gain Thursday and ending the month flat.

Drops in key barometers of the health of consumers -- what they're spending, what they're earning and how they're feeling -- fanned worries that an economic recovery celebrated by the market only a day earlier won't last.

The NYSE DOW closed LOWER -249.85 points -2.51% on Friday October 30
Sym Last........ ........Change..........
Dow 9,712.73 -249.85 -2.51%
Nasdaq 2,045.11 -52.44 -2.50%
S&P 500 1,036.19 -29.92 -2.81%
30-yr Bond 4.2360% -0.1090

NYSE Volume 7,967,117,500 (prior day 6,571,752,500)
Nasdaq Volume 2,699,229,500 (prior day 2,342,304,250)

Oil 71.50 -0.05 -0.07%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,044.55 -93.17 -1.81%
DAX 5,414.96 -172.49 -3.09%
CAC 40 3,607.69 -106.33 -2.86%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 10,034.74 +143.64 +1.45%
Hang Seng 21,752.87 +487.88 +2.29%
Straits Times 2,651.13 +18.82 +0.71%

http://finance.yahoo.com/news/Stock...2.html?x=0&sec=topStories&pos=1&asset=&ccode=

Stocks swoon as worries about the economy return

Stocks slump a day after euphoric rise and are flat for the month; Dow plunges 250

By Sara Lepro and Tim Paradis, AP Business Writers
On 6:07 pm EDT, Friday October 30, 2009

NEW YORK (AP) -- Grim signals about consumer spending ripped through the markets Friday, sending stocks tumbling as investors raced for safe havens.

The Standard & Poor's 500 index and the Nasdaq composite index ended with losses for October, breaking a streak of seven months of gains. The Dow Jones industrial average tumbled 250 points, erasing a 200-point gain Thursday and ending the month flat.

Drops in key barometers of the health of consumers -- what they're spending, what they're earning and how they're feeling -- fanned worries that an economic recovery celebrated by the market only a day earlier won't last.

The huge reversal in market sentiment from the day before reflected how desperate stock investors are to reach conclusions about how the economy is doing, and how quickly they are willing to abandon those convictions.

The about-face from Thursday to Friday in the S&P 500 index, the most widely used indicator by investing professionals and the benchmark for many mutual funds, was the sharpest swing for the index since February.

"I think you have a market that is ultimately looking for its direction," said Bob Froehlich, senior managing director at Hartford Financial Services. "We really are at the inflection point. You tend to have an overreaction to both extremes."

A day after a euphoric rally pushed stocks up the largest amount in three months, on Friday investors fretted that strapped consumers won't be able to carry on a recovery in the economy that has been driven by government spending and companies boosting profits by slashing costs.

The heaviest selling came in areas that have been stalwarts of the market's powerful climb since March: financials, technology, energy and industrials. The safest areas, like health care, consumer staples and utilities, fared somewhat better.

Investors fled to safer assets like the dollar and Treasurys.

The Dow fell 249.85, or 2.5 percent, to 9,712.73. It was the Dow's biggest one-day percentage drop since July 2 and left the index with a gain of 0.005 percent for the month.

The broader S&P 500 index fell 29.92, or 2.8 percent, to 1,036.19, its biggest percentage loss since July 2. The Nasdaq dropped 52.44, or 2.5 percent, to 2,045.11.

Six stocks fell for every one that rose on the New York Stock Exchange, a virtual reversal of the tide that swept stocks higher Thursday when the government said the economy grew faster than expected in the summer.

Indicators of investor skittishness surged. The Chicago Board Options Exchange's Volatility Index, known as the market's fear gauge, soared nearly 25 percent to its highest level since July.

Stocks began skidding after the Labor Department said personal spending fell 0.5 percent in September. The drop was in line with forecasts, but it was also the largest slide in nine months and followed a 1.3 percent jump in August fueled by the government's popular Cash for Clunkers car rebate program.

The government also said that personal income, the fuel for future spending, was flat in September compared with the previous month.

A drop in the mood of consumers added to the day's bad news. The Reuters/University of Michigan consumer sentiment index fell to 70.6 in October from 73.5 in September. The reading was revised higher from an early estimate and was roughly in line with expectations.

"Until we get to better employment numbers, it's hard to get real income growth and real spending ... and we're just not there yet," said Kurt Karl, chief US economist at Swiss Re.

Friday was the end of the fiscal year for many mutual funds. Fund managers often sell some investments to minimize taxes for shareholders.

Bank stocks were hardest hit as investors worried about the fate of commercial lender CIT Group Inc. Billionaire investor and bondholder Carl Icahn agreed to support the company's restructuring plan and provide it with a $1 billion line of credit, but investors are still worried that the company could file for bankruptcy protection. The stock tumbled 24 percent.

For the week, the Dow fell 2.6 percent, its worst since mid-June. The S&P 500 index fell 5.1 percent, its biggest drop since mid-May. It lost 2 percent for October.

The Nasdaq fell 5.1 percent for the week and 3.6 percent for October.

On the New York Mercantile Exchange, gold fell, while oil tumbled $2.38 to $77.49 a barrel.

Bond prices surged, pushing their yields lower. The yield on the benchmark 10-year Treasury note fell to 3.39 percent from 3.50 percent late Thursday.

Stocks have fallen for most of the past week as worries about the economy escalated. Without stronger evidence that the labor market is improving and consumers are feeling more comfortable about spending, investors will likely have trouble extending the market's gains.

Trading is likely to remain volatile in the coming week amid a flood of major economic news, including the Institute of Supply Management's readings on the manufacturing and services industries, sales reports from major retailers and the Labor Department's October employment report -- arguably the month's most important piece of economic data. The Federal Reserve will also convene for a two-day policy meeting beginning Tuesday.

Volume at the New York Stock Exchange came to 1.7 billion shares compared with 1.6 billion Thursday.

In other trading, the Russell 2000 index of smaller companies fell 17.45, or 3 percent, to 562.77.

Overseas, Britain's FTSE 100 fell 1.8 percent, Germany's DAX index dropped 3.1 percent, and France's CAC-40 lost 2.9 percent. Japan's Nikkei stock average rose 1.5 percent.

101

 

[bigdog]

Source: http://finance.yahoo.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.

After months on hiatus, volatility is back on Wall Street.

Stocks ended higher Monday after another day of big swings. Stronger reports on manufacturing and housing gave the market an early boost but a rise in the dollar and worries about the soundness of an eight-month rally chipped away at the gains. A late surge left the Dow Jones industrial average with a gain of 77 points but still down by about half from its best levels of the day.

After nearly unbreakable gains since midsummer, trading has become much rockier in recent weeks as investors worry that the pace of the economic recovery they have been counting on will be hard to maintain.

The NYSE DOW closed HIGHER +76.71 points +0.79% on Monday November 2
Sym Last........ ........Change..........
Dow 9,789.44 +76.71 +0.79%
Nasdaq 2,049.20 +4.09 +0.20%
S&P 500 1,042.88 +6.69 +0.65%
30-yr Bond 4.2680% +0.0320

NYSE Volume 7,358,303,000 (prior day 7,967,117,500)
Nasdaq Volume 2,429,651,250 (prior day 2,699,229,500)

Oil 71.50 -0.05 -0.07%
Gold US$/oz 1059.35 +14.95 +1.43%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,104.50 +59.50 +1.18%
DAX 5,430.82 +15.86 +0.29%
CAC 40 3,639.46 +31.77 +0.88%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,802.95 -231.79 -2.31%
Hang Seng 21,620.19 -132.68 -0.61%
Straits Times 2,645.43 -5.70 -0.22%

http://finance.yahoo.com/news/Volat...tml?x=0&sec=topStories&pos=main&asset=&ccode=

Volatility returns to markets, pulls Dow off highs

Stocks end higher after jumpy trading; economic data don't quiet worries about pace of gains

By Sara Lepro and Tim Paradis, AP Business Writers
On 5:47 pm EST, Monday November 2, 2009

NEW YORK (AP) -- After months on hiatus, volatility is back on Wall Street.

Stocks ended higher Monday after another day of big swings. Stronger reports on manufacturing and housing gave the market an early boost but a rise in the dollar and worries about the soundness of an eight-month rally chipped away at the gains. A late surge left the Dow Jones industrial average with a gain of 77 points but still down by about half from its best levels of the day.

After nearly unbreakable gains since midsummer, trading has become much rockier in recent weeks as investors worry that the pace of the economic recovery they have been counting on will be hard to maintain.

Jittery traders have pushed the market around in ways more reminiscent of the huge swings of a year ago than the smoother advance stocks have seen since the early spring. The Dow has gained or lost more than 100 points in six out of the last seven days. The last time the Dow has as long a streak of triple-digit moves was in late March, shortly after major stock indexes bounced off 12-year lows.

Good news can still lift the market, but those gains are now less likely to hold than they were earlier in the year. The market jumped last Thursday after the government reported the economy grew at a 3.5 percent pace in the July-September quarter, well ahead of expectations.

But that enthusiasm faded quickly as many noted that much of the growth came from government spending programs which are winding down. Likewise, many companies are reporting stronger than expected earnings, but in many cases the gains came from cost-cutting instead of higher sales. On Friday the Dow slumped nearly 250 points as those worries deepened, more than erasing the 200-point gain from the day before.

Analysts say many investors still expect the economy to improve but are worried it won't happen as quickly as they had hoped. The signs of investor anxiety are clear. The Chicago Board Options Exchange's Volatility Index, known as Wall Street's fear gauge, crept up to 31.84 Monday -- a fresh four-month high before ending at 29.78.

"It's a flip of a coin right now," said Jeffrey Frankel, president of Stuart Frankel & Co. "You never know what you're going to get the next day when you come in to work."

As the market heads into the final months of the year, investors are trying to determine whether the bets they've been placing on a rebound in the economy over the past several months have been overdone. Even with a 2 percent loss in the Standard & Poor's 500 in October, the index is still up 54.2 percent from a 12-year low in March.

"The question is, is the trend changing?" said Jim Dunigan, managing executive of investments at PNC Wealth Management.

Trading is likely to be volatile throughout the week as investors sift through a flood of economic data, including the government's monthly employment report on Friday, that will offer a glimpse at the fourth quarter. The Federal Reserve will also weigh in on the economy after a two-day policy meeting on Wednesday.

On Monday, the Dow rose 76.71, or 0.8 percent, to 9,789.44, its fourth gain in 10 days. The broader Standard & Poor's 500 index rose 6.69, or 0.7 percent, to 1,042.88, and the Nasdaq composite index rose 4.09, or 0.2 percent, to 2,049.20.

The seesaw trade came after the Institute for Supply Management said manufacturing activity grew in October at the fastest pace since April 2006 and much better than expected. Meanwhile, the National Association of Realtors said pending home sales increased for the eighth straight month in September, also topping expectations.

Separately, the Commerce Department said construction spending increased 0.8 percent in September, matching the gain in August. Economists had been expecting a drop.

The reports goosed stocks higher in the morning but weren't enough to hold the gains through the afternoon as the dollar rose against other major currencies. That hurt commodity prices and exporters.

Financial stocks faltered briefly after Jon D. Greenlee, the Federal Reserve's associate director for banking supervision and regulation, told lawmakers that "significant stress and weaknesses" remain in the financial system and that banks face more heavy losses on loans.

Citigroup Inc. fell below $4 for the first time since August, giving up 10 cents, or 2.4 percent, to $3.99.

Investors also found optimistic news. Ford Motor Co. surprised investors by reporting that deep cost cuts and the government's Cash for Clunkers rebates helped it earn nearly $1 billion in the third quarter. The stock jumped 58 cents, or 8.3 percent, to $7.58.

Advancing stocks narrowly outpaced those that fell on the New York Stock Exchange, where volume came to 1.5 billion shares, compared with 1.7 billion Friday.

Bond prices fell, pushing yields higher. The yield on the benchmark 10-year Treasury note rose to 3.43 percent from 3.39 percent late Friday.

Oil rose $1.13 to settle at $78.13, while gold rose on the New York Mercantile Exchange.

In other trading, the Russell 2000 index of smaller companies fell 5.22, or 1 percent, to 557.55.

Overseas, Japan's Nikkei stock average dropped 2.3 percent. Britain's FTSE 100 rose 0.9 percent, Germany's DAX index added 0.2 percent, and France's CAC-40 rose 0.8 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Despite a stronger dollar and some sloppy action, the S&P 500 was able to net a modest gain in Tuesday's trade.

Stocks had started the session in negative territory as the U.S. dollar gained ground against a basket of major foreign currencies and drove the Dollar Index up almost 0.8% to a near one-month high. In the face of broader market weakness and a stronger greenback, materials stocks (+1.2%) were able to make strong gains as gold prices raced higher.

Investors sidestepped some of their doubts about the economy and bought energy and industrial stocks as commodity prices rose.

Stocks ended back-and-forth trading mostly higher Tuesday as a spike in the price of gold and corporate dealmaking extended an advance from Monday. The gains in commodity prices helped stocks pare early losses.

The Dow Jones industrial average slipped 18 points, while broader indexes rose.

The NYSE DOW closed LOWER -17.53 points -0.18% on Tuesday November 3
Sym Last........ ........Change..........
Dow 9,771.91 -17.53 -0.18%
Nasdaq 2,057.32 +8.12 +0.40%
S&P 500 1,045.41 +2.53 +0.24%
30-yr Bond 4.3370% +0.0690

NYSE Volume 6,209,331,500 (prior day 7,358,303,000)
Nasdaq Volume 2,040,231,750 (prior day 2,429,651,250)

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,037.21 -67.29 -1.32%
DAX 5,353.35 -77.47 -1.43%
CAC 40 3,584.25 -55.21 -1.52%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,802.95 closed for holiday
Hang Seng 21,240.06 -380.13 -1.76%
Straits Times 2,621.55 -23.88 -0.90%

http://finance.yahoo.com/news/Risin...tml?x=0&sec=topStories&pos=main&asset=&ccode=

Rising commodity prices lift stocks

Stocks mostly rise as commodity prices gain; Buffett's move on Burlington lifts railroads

By Sara Lepro and Tim Paradis, AP Business Writers
On 4:34 pm EST, Tuesday November 3, 2009

NEW YORK (AP) -- Investors sidestepped some of their doubts about the economy and bought energy and industrial stocks as commodity prices rose.

Stocks ended back-and-forth trading mostly higher Tuesday as a spike in the price of gold and corporate dealmaking extended an advance from Monday. The gains in commodity prices helped stocks pare early losses.

The Dow Jones industrial average slipped 18 points, while broader indexes rose.

Investors drew some comfort from billionaire investor Warren Buffett's decision to pay $100 a share for Burlington Northern Santa Fe in a deal valuing the railroad at $34 billion. Meanwhile, tool maker Stanley Works struck a deal to acquire Black & Decker Corp. for $3.46 billion in stock.

Commodities rose broadly and gold jumped to a new high after India's central bank bought $6.7 billion worth of gold from the International Monetary Fund.

Even with the gains in commodities, traders remained on edge about unemployment and the overall strength of an economic recovery.

Health care products maker Johnson & Johnson said it would cut up to 7 percent of its global work force and streamline its business structure to save up to $900 million next year.

Financial stocks fell after the Royal Bank of Scotland got a $41 billion infusion from the U.K. government.

Traders have been uneasy in recent weeks, wary about whether the economic recovery can maintain the same pace once government stimulus measures are removed. That uncertainty has led to wild swings in the market. The Dow has risen or fallen more than 100 points in six of the last eight trading days, the most volatility since March.

Analysts said a break in the advance could ease worries that the market has run too far.

"This is a much-needed healthy pause and reassessment. It ran so far," said David Darst, chief investment strategist for Morgan Stanley Smith Barney in New York.

According to preliminary calculations, the Dow fell 17.53, or 0.2 percent, to 9,771.91, after being down as much as 86 points. The Dow rose 77 points Monday following reports of improvements in manufacturing and housing.

The broader Standard & Poor's 500 index rose 2.53, or 0.2 percent, to 1,045.41. The Nasdaq composite index rose 8.12, or 0.4 percent, to 2,057.32.

"We're seeing a natural ebb and flow of risk appetite," said Kevin Gardiner, head of investment strategy for Europe, Middle East and Africa at Barclays Wealth.

Analysts expect trading to be choppy this week, as investors digest a frenzy economic reports that include the government's employment report for October on Friday. Investors are watching the Federal Reserve, which concludes a two-day meeting on interest rates Wednesday, for any clues about the economy and the direction of interest rates.

A rise in factory orders wasn't enough to boost sentiment. The Commerce Department said orders to U.S. factories rebounded in September after dropping in August. Orders rose 0.9 percent in September amid increases in orders for autos, heavy machinery and military aircraft. Analysts had expected an increase of 0.8 percent, according to Thomson Reuters.

Investors also looked past increases in automobile sales last month. Ford Motor Co. said sales rose 3 percent from October last year, while General Motors Corp.'s sales rose 4 percent. It was the first monthly sales increase for the nation's largest automaker since January 2008. Meanwhile, Chrysler's sales fell 30 percent.

Bond prices fell, pushing yields higher. The yield on the benchmark 10-year Treasury note rose to 3.48 percent from 3.42 percent late Monday.

The dollar was mixed against other major currencies.

Crude oil rose $1.47 to settle at $79.60 a barrel on the New York Mercantile Exchange, while gold surged to a new high of $1,082.20 an ounce.

Shares of Burlington Northern jumped $20.93, or 27.5 percent, to $97 after Buffett's move.

That pulled other railroads higher. CSX Corp. rose $3.13, or 7.3 percent, to $45.97, while Norfolk Southern Corp. advanced $2.52, or 5.4 percent, to $49.15.

Black & Decker jumped $14.66, or 30.1 percent, to $62, while Stanley Works rose $4.54, or 10.1 percent, to $49.69.

Johnson & Johnson fell 56 cents, or 0.9 percent, to $58.93.

Royal Bank of Scotland fell 69 cents, or 5.5 percent, to $11.96.

The Russell 2000 index of smaller companies rose 8.22, or 1.5 percent, to 570.62.

Three stocks rose for every two that fell on the New York Stock Exchange, where volume came to 1.4 billion shares compared with 1.5 billion Monday.

Overseas, Britain's FTSE 100 fell 1.3 percent, Germany's DAX index fell 1.4 percent, and France's CAC-40 dropped 1.5 percent. Markets in Japan were closed for a holiday.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks give up gains in last hour, finish mixed

The latest FOMC policy statement and a weaker dollar helped bolster buying in stocks, but some late selling caused stocks to rollover in the final hour and close near the neutral line.

The major indices started the session in higher ground as participants responded to strong overseas gains and a downturn in the U.S. dollar. Gains among the major indices were both broad and strong.

A late-day slump left stocks mixed Wednesday as investors couldn't hold on to their optimism after the Federal Reserve gave an encouraging assessment of the economy.

The Dow Jones industrial average, up more than 150 points after the Fed described the economy as showing more signs of recovery, closed up 30. The broader indexes were narrowly mixed.

Stocks could get a lift Thursday from Cisco Systems Inc., which reported posted better quarterly earnings and sales than expected after the closing bell. John Chambers, CEO of the maker of computer-networking gear, struck an optimistic tone in a conference call with analysts and said orders continue to rebound.

The NYSE DOW closed HIGHER +30.23 points +0.31% on Wednesday November 4
Sym Last........ ........Change..........
Dow 9,802.14 +30.23 +0.31%
Nasdaq 2,055.52 -1.80 -0.09%
S&P 500 1,046.50 +1.09 +0.10%
30-yr Bond 4.4340% +0.0970

NYSE Volume 6,510,282,000 (prior day 6,209,331,500)
Nasdaq Volume 2,238,700,250 (prior day 2,040,231,750)

Oil 80.15 +0.55 +0.69%
Gold 1,092.40 +8.10 +0.75%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,107.89 +70.68 +1.40%
DAX 5,444.23 +90.88 +1.70%
CAC 40 3,670.33 +86.08 +2.40%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,844.31 +41.36 +0.42%
Hang Seng 21,614.77 +374.71 +1.76%
Straits Times 2,648.64 +27.09 +1.03%
http://finance.yahoo.com/news/Stock...0.html?x=0&sec=topStories&pos=1&asset=&ccode=

Stocks give up gains in last hour, finish mixed

Stocks give up gains in last hour, finish mixed after Fed meeting, credit card vote

By Sara Lepro and Tim Paradis, AP Business Writers
On 5:27 pm EST, Wednesday November 4, 2009

NEW YORK (AP) -- A late-day slump left stocks mixed Wednesday as investors couldn't hold on to their optimism after the Federal Reserve gave an encouraging assessment of the economy.

The Dow Jones industrial average, up more than 150 points after the Fed described the economy as showing more signs of recovery, closed up 30. The broader indexes were narrowly mixed.

Stocks could get a lift Thursday from Cisco Systems Inc., which reported posted better quarterly earnings and sales than expected after the closing bell. John Chambers, CEO of the maker of computer-networking gear, struck an optimistic tone in a conference call with analysts and said orders continue to rebound.

Analysts couldn't point to any one reason why stocks gave up their gains late Wednesday, although some said the market is increasingly nervous as the release of the government's October jobs report on Friday approaches. Financial stocks fell especially hard in the last hour of trading after a House vote to speed up the effective date of limits on credit card companies, and added to the overall market's pullback.

The Fed, as expected, left its benchmark interest rate unchanged at a record low of essentially zero and said the economy is slowly rebounding. Its announcement followed reports on service industries and employment that eased two of the biggest worries about the economy.

The Fed's statement accompanying its rate decision noted that housing activity has picked up in recent months. It also said consumer spending, while still constrained by unemployment and other problems, appears to be growing.

Policymakers said they would keep interest rates low for an "extended period" and said inflation is likely to remain tame. That eased some worries that rising prices would force the Fed to boost interest rates and risk cutting off a nascent recovery in the economy.

But, as often happens after Fed meetings, stocks were unable to hold their gains. The Fed statement, while more upbeat than in recent months, did note that there are ongoing job losses. And investors were well aware that the Labor Department's October jobs report is just two days away.

Jonathan Corpina, president of Meridian Equity Partners in New York, said investors took the Fed's statement as a sign that the central bank isn't convinced that a lasting economic recovery is under way.

"The Fed is talking about recurring job losses, sluggish incomes and housing prices not moving. So we have to remember that there are things out there that are still holding the economy back," he said.

Meanwhile, the House approved new rules for credit card companies unless lenders agree to freeze interest rates and fees. The vote would move up the February effective date of legislation already passed by Congress that limits what banks can charge for credit cards.

It didn't appear likely that the Senate would also pass the measure, but the House vote still sent financial stocks falling. And when bank stocks fall, the rest of the market tends to follow.

The Dow rose 30.23, or 0.3 percent, to 9,802.14. It had been up as much as 156 after the Fed announcement.

The broader Standard & Poor's 500 index rose 1.09, or 0.1 percent, to 1,046.50. The Nasdaq composite index fell 1.80, or 0.1 percent, to 2,055.52.

Winning stocks were ahead of losers by 8 to 7 on the New York Stock Exchange, where volume came to 1.4 billion shares, in line with Tuesday.

Michael Sheldon, chief market strategist at RDM Financial Group in Westport, Conn., said investors grew nervous ahead of the employment report and that traders also worried when the S&P 500 index moved below the level of 1,053 -- its average of the past 50 days.

"Once it became apparent that the market wasn't going to close above its 50-day moving average investors sold and moved to the sidelines," he said.

Investors have grown fearful that the economic rebound they've been betting on over the past eight months will be fleeting, considering that job losses remain high and consumers still aren't spending freely. Stocks have zigzagged over the past few weeks amid the heightened uncertainty.

The day's economic reports bolstered hopes that consumers could increase consumer spending, a critical factor for an economic recovery.

The Institute for Supply Management said service industry activity grew for a second straight month in October. The trade group's service index slipped to 50.6 from 50.9 in September. A reading above 50 signals growth.

The ADP National Employment Report said 203,000 private sector jobs were lost in October, down from the 227,000 lost in September. It was the seventh straight month of declining job losses. That stirred hopes for a better-than-expected employment report Friday.

Shares of Cisco advanced 35 cents, or 1.5 percent, to $23.30 by the closing bell and rose 3.5 percent in after-hours trading.

The dollar fell against other major currencies, helping to send commodities prices higher.

Gold rose as high as $1,096.50 an ounce. Crude oil added 80 cents to $80.40 a barrel on the New York Mercantile Exchange as the government said U.S. crude supplies fell more than expected.

Britain's FTSE 100 rose 1.4 percent, Germany's DAX index gained 1.7 percent, and France's CAC-40 jumped 2.4 percent. Japan's Nikkei stock average rose 0.4 percent.

 

[bigdog]

Source: http://finance.yahoo.com

The Dow Jones industrial average jumped 200 points Thursday to its first close above 10,000 in two weeks

Broad-based buying on the back of a strong quarterly report from Cisco and a couple of pleasing economic reports helped stocks net robust gains ahead of tomorrow's potentially pivotal nonfarm payrolls report.

A drop in unemployment claims and an upbeat forecast from Cisco Systems Inc. gave investors a jolt of confidence a day before a key government report on jobs.

The Dow Jones industrial average jumped 200 points Thursday to its first close above 10,000 in two weeks, while the Nasdaq composite index led major indexes with a gain of 2.4 percent after Cisco, the maker of computer-networking gear, predicted its revenue would grow.

The Labor Department said the number of newly laid-off workers seeking unemployment benefits fell to 512,000 last week, the lowest level since January and fewer than economists had forecast. Initial claims are considered a gauge of the pace of layoffs.

The NYSE DOW closed HIGHER +203.82 points +2.08% on Thursday November 5
Sym Last........ ........Change..........
Dow 10,005.96 +203.82 +2.08%
Nasdaq 2,105.32 +49.80 +2.42%
S&P 500 1,066.63 +20.13 +1.92%
30-yr Bond 4.4120% -0.0220

NYSE Volume 5,695,214,000 (prior day 6,510,282,000)
Nasdaq Volume 2,257,181,750 (prior day 2,238,700,250)

Oil 79.73 -0.67 -0.83%
Gold 1,090.60 +3.90 +0.36%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,125.64 +17.75 +0.35%
DAX 5,480.92 +36.69 +0.67%
CAC 40 3,708.73 +38.40 +1.05%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,717.44 -126.87 -1.29%
Hang Seng 21,479.08 -135.69 -0.63%
Straits Times 2,629.35 -19.29 -0.73%

http://finance.yahoo.com/news/Stock...tml?x=0&sec=topStories&pos=main&asset=&ccode=

Stocks surge on jobs data, Cisco forecast

Stocks jump as better jobs data, upbeat forecast from Cisco boost hopes for economic rebound

By Tim Paradis, AP Business Writer
On 4:54 pm EST, Thursday November 5, 2009

NEW YORK (AP) -- A drop in unemployment claims and an upbeat forecast from Cisco Systems Inc. gave investors a jolt of confidence a day before a key government report on jobs.

The Dow Jones industrial average jumped 200 points Thursday to its first close above 10,000 in two weeks, while the Nasdaq composite index led major indexes with a gain of 2.4 percent after Cisco, the maker of computer-networking gear, predicted its revenue would grow.

The Labor Department said the number of newly laid-off workers seeking unemployment benefits fell to 512,000 last week, the lowest level since January and fewer than economists had forecast. Initial claims are considered a gauge of the pace of layoffs.

The report unleashed a wave of optimism about the government's monthly report on employment Friday, which will shape trading because of the ties between joblessness and consumer spending. Economists say spending must increase for the economy to mount a sustained recovery. Analysts project that the unemployment rate rose to 9.9 percent in October.

The biggest jump in productivity in six years drove hopes that lower costs will boost corporate profits. The report also illustrated, though, that many employers remain reluctant to hire.

The government said the amount of output per hour worked rose 9.5 percent in the July-September quarter.

Meanwhile, retailers posted sales gains for the second straight month in October after watching business slide for more than a year. The retail industry posted a 2.1 percent sales gain for October, according to an International Council of Shopping Centers-Goldman Sachs tally. Investors are looking for any sign that consumers are willing to spend more as the holiday shopping season approaches.

"The news coming in has been for the most part better than expected," said Mike Boyle, senior vice president and portfolio manager at Advisors Asset Management.

According to preliminary calculations, the Dow rose 203.82, or 2.1 percent, to 10,005.96, its first close above 10,000 since Oct. 22. It was the Dow's biggest advance since a gain of 257 points on July 15, when computer chip maker Intel Corp. said business was improving.

The broader Standard & Poor's 500 index rose 20.13, or 1.9 percent, to 1,066.63, while the Nasdaq rose 49.80, or 2.4 percent, to 2,105.32.

The Russell 2000 index of smaller companies rose 18.03, or 3.2 percent, to 581.15.

Five stocks rose for every one that fell on the New York Stock Exchange, where volume came to 1.3 billion shares compared with 1.4 billion Wednesday.

Bond prices were mixed. The benchmark 10-year Treasury note slipped but its yield remained flat at 3.53 percent from late Wednesday.

Mixed economic data in recent weeks have made it difficult for investors to get a sense of where the economy is headed, leading to choppy trading. The Federal Reserve pointed to hopeful signs about the economy Wednesday but also said it would keep interest rates low for "an extended period" to help stimulate growth.

While the market often jumps at good news, investors can't shake fears that the economy won't be able to maintain the 3.5 percent pace of growth seen in the third quarter as government stimulus programs wind down.

Jeff Mortimer, chief investment officer at Charles Schwab Investment Management, predicts the choppiness will last at least through the end of the year.

"This is a transition period in a bull phase," he said. "Bull markets are front-end loaded and they give almost 50 percent of their return in their first one year of life."

Cisco pulled tech stocks higher after it said late Wednesday that it expects revenue to grow for the first time in a year for the quarter ending in January. The stock rose 64 cents, or 2.8 percent, to $23.93.

The Labor Department's monthly employment report is considered by many economists the most important economic reading because a sustained recovery depends on consumer spending.

Quincy Krosby, market strategist for Prudential Financial, said investors will be looking inside the report for the average number of weekly hours worked and demand for temporary workers. That's because as the economy improves businesses will first ask employees to stay at work longer and bring in more temps before managers gain enough confidence to hire.

In September, the number of weekly hours worked stood at a record low of 33, while the number of temporary workers fell by a modest 2,000 people.

Krosby said improvements in hours worked and the number of temp workers would bolster the idea the job market is healing.

"It will give legitimacy to the notion that the economy is picking up," she said.

The dollar fell against other major currencies. Gold prices rose.

Light, sweet crude fell 78 cents to settle at $79.62 per barrel on the New York Mercantile Exchange.

Overseas, European shares recovered from early losses to end higher after central banks left interest rates unchanged. The Bank of England said it would pump more money into the economy after news last week that the country remains in recession.

Britain's FTSE 100 rose 0.4 percent, Germany's DAX index added 0.7 percent, and France's CAC-40 gained 1.1 percent. Earlier Thursday, Japan's Nikkei stock average fell 1.3 percent.

 

[bigdog]

Source: http://finance.yahoo.com

For the week, the Dow and the S&P 500 index added 3.2 percent, while the Nasdaq rose 3.3 percent.

In the face of news that the unemployment rate climbed to a 25-year high, stocks managed to muster a modest gain, which gave the market its fifth straight advance.

Stocks started the session moderately lower as participants made a push against stocks after learning that nonfarm payrolls fell by 190,000 in October and that the official unemployment rate climbed from 9.8% to 10.2%, the highest level since 1983. The consensus had called for job losses of 175,000 and an unemployment rate of 9.9%

Investors undaunted by a surprisingly weak jobs report found enough positive news to nudge stocks higher.

News that the nation's unemployment rate rose above 10 percent last month for the first time in 26 years didn't derail the stock market's strong gains in the week, which lifted major indexes more than 3 percent.

The rise in joblessness to 10.2 percent in October, while bad news for the economy, reassured some investors that the Federal Reserve will have to hold interest rates low for some time. That tends to weaken demand for the dollar, which in turn gives a boost to stocks.

The NYSE DOW closed HIGHER +17.46 points +0.17% on Friday November 6
Sym Last........ ........Change..........
Dow 10,023.42 +17.46 +0.17%
Nasdaq 2,112.44 +7.12 +0.34%
S&P 500 1,069.30 +2.67 +0.25%
30-yr Bond 4.3940% -0.0180

NYSE Volume 4,995,024,000 (prior day 5,695,214,000)
Nasdaq Volume 1,843,623,500 (prior day 2,257,181,750)

Oil 77.65 -1.97 -2.47%
Gold 1,095.10 +6.40 +0.59%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,142.72 +17.08 +0.33%
DAX 5,488.25 +7.33 +0.13%
CAC 40 3,707.29 -1.44 -0.04%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,789.35 +71.91 +0.74%
Hang Seng 21,829.72 +350.64 +1.63%
Straits Times 2,658.21 +28.86 +1.10%

http://finance.yahoo.com/news/Stocks-post-modest-gains-as-apf-114989186.html?x=0

Stocks post modest gains as job losses slow

Stocks carve small gains as job losses slow even as unemployment hits 10.2 pct; Dow adds 18

By Sara Lepro and Tim Paradis, AP Business Writers
On 5:28 pm EST, Friday November 6, 2009

NEW YORK (AP) -- Investors undaunted by a surprisingly weak jobs report found enough positive news to nudge stocks higher.

News that the nation's unemployment rate rose above 10 percent last month for the first time in 26 years didn't derail the stock market's strong gains in the week, which lifted major indexes more than 3 percent.

The rise in joblessness to 10.2 percent in October, while bad news for the economy, reassured some investors that the Federal Reserve will have to hold interest rates low for some time. That tends to weaken demand for the dollar, which in turn gives a boost to stocks.

"We got data today that suggests that interest rates are going to be on hold for a while," said Max Bublitz, chief strategist at SCM Advisors.

When the dollar is weaker, U.S. goods are cheaper for buyers overseas. Companies that do business overseas also get a profit gain when their earnings are translated back into dollars.

Safe-haven assets like Treasurys were mixed. Oil prices tumbled and gold topped $1,100 an ounce for the first time. Gold benefits when investors are worried about a weak dollar and inflation.

Meanwhile, General Electric Co. rose 6 percent after analysts raised their ratings on the stock. It was the biggest gainer among the 30 Dow industrials.

The jobs report bodes poorly for consumer spending, a key driver of the economy.

"The consumer remains cautious and if they remain cautious they don't spend," said Michael Feser, president of Zecco Trading.

The Labor Department said employers cut 190,000 jobs last month, fewer than the 219,000 jobs lost in September, but more than forecast. The market has been expecting unemployment to top 10 percent before peaking.

The Dow Jones industrial average rose 17.46, or 0.2 percent, to 10,023.42, boosting its gain for the week to 311 points. The Standard & Poor's 500 index rose 2.67, or 0.3 percent, to 1,069.30, while the Nasdaq composite index rose 7.12, or 0.3 percent, to 2,112.44.

For the week, the Dow and the S&P 500 index added 3.2 percent, while the Nasdaq rose 3.3 percent.

Advancing stocks narrowly outpaced those that fell on the New York Stock Exchange, where volume came to 1.1 billion shares, compared with 1.3 billion Thursday.

Bond prices mostly climbed. The benchmark 10-year Treasury note rose, pushing its yield down to 3.51 percent from 3.53 percent late Thursday.

Oil fell $2.12 to settle at $77.87 per barrel on the New York Mercantile Exchange. Gold rose $6.40 to settle at $1,095.70 an ounce on the New York Mercantile Exchange, adding 5.3 percent for the week.

Jeffrey Friedman, senior market strategist at Lind-Waldock, a futures brokerage, said the jobs report is worrisome.

"We're still losing jobs. 10.2 is not a good number. And in reality, it's probably even higher," he said.

Some analysts saw reasons for optimism such as a rise in the number of temporary service jobs. Companies that are reluctant to commit to hiring will often first bring in temps to meet demand until they're more confident of a turnaround in the economy.

Linda Duessel, equity market strategist at Federated Investors, noted that payroll numbers turn higher an average of four and a half months after temp numbers begin to rise.

"We've been looking for temps to turn and they turned," she said. "It's good."

Although investors found a few bright spots in the jobs report, the numbers did shake their confidence in the economic recovery, stoked Thursday by an encouraging outlook from Cisco Systems Inc., better data on productivity and higher sales at major retailers. The Dow jumped 203 points on the day's string of good news to close above 10,000 for the first time in two weeks.

Thursday's jump brought most of the week's advance. The market rose Monday after improved manufacturing and housing figures raised expectations for the economy. Moves on Tuesday and Wednesday were modest.

Investors will have fewer economic reports to drive trading next week. A report due Friday on consumer sentiment will draw attention because traders are eager for any signals about how consumers will spend heading into the holiday season.

However, earnings reports from retailers including J.C. Penney Co., Macy's Inc. and Wal-Mart Stores Inc. will give investors more insight into how consumers are likely to behave in the coming months. Walt Disney Co.'s earnings may also provide clues about consumers.

Investors will also be tracking the ability of the government to raise money. The Treasury Department plans to auction $81 billion in debt next week. Analysts are watching for signs that demand is weakening for government debt because that could threaten stimulus spending and push interest rates higher.

In corporate news, Starbucks Corp. jumped $1.42, or 7.2 percent, to $21.12 after the coffee chain said late Thursday that its fourth-quarter profit rose and raised its fiscal 2010 earnings forecast because of an increase in customers.

GE advanced 90 cents, or 6.2 percent, to $15.33 after analysts raised their expectations for the company.

The Russell 2000 index of smaller companies fell 0.80, or 0.1 percent, to 580.35.

Overseas, Britain's FTSE 100 rose 0.3 percent, Germany's DAX index rose 0.1 percent, and France's CAC-40 slipped less than 0.1 percent. Japan's Nikkei stock average rose 0.7 percent.

6368

 

[bigdog]

Source: http://finance.yahoo.com

Dow Hits 13-Month High

Market participants responded to a sharp drop by the U.S. dollar with a broad-based buying effort that helped stocks make heady gains and finish at session highs. In fact, the Dow Jones Industrial Average logged its best closing level in 52 weeks.

News that members of the G-20 and Treasury Secretary Geithner maintain the view that economic stimulus should not yet be withdrawn led to heavy selling against the U.S. dollar and drove the Dollar Index back to 2009 lows. It spent the entire session trading with a loss of roughly 1.0%

The Dow Jones industrial average stormed to its highest level in more than a year Monday as a falling dollar boosted prices for commodities including gold and oil. Stocks also jumped as investors grew more confident that governments around the world will keep interest rates low to help the global economy.

Energy and materials stocks led the market. The major indexes rose 2 percent and the Dow jumped 200 points for the second time in three days and reached its highest level in 13 months.

News that the Group of 20 countries will keep their economic stimulus measures in place signaled to investors that rates will remain low. With U.S. rates near zero, the G-20 news lessened demand for the dollar.

The NYSE DOW closed HIGHER +203.52 points +2.03% on Monday November 9
Sym Last........ ........Change..........
Dow 10,226.94 +203.52 +2.03%
Nasdaq 2,154.06 +41.62 +1.97%
S&P 500 1,093.08 +23.78 +2.22%
30-yr Bond 4.4010% +0.0070

NYSE Volume 4,669,590,000 (prior day 4,995,024,000)
Nasdaq Volume 2,044,066,125 (prior day 1,843,623,500)

Oil 79.25 +1.82 +2.35%
Gold 1,103.60 +8.50 +0.78%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,235.18 +109.54 +2.14%
DAX 5,619.72 +131.47 +2.40%
CAC 40 3,785.49 +78.20 +2.11%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,808.99 +19.64 +0.20%
Hang Seng 22,207.55 +377.83 +1.73%
Straits Times 2,693.38 +35.17 +1.32%

http://finance.yahoo.com/news/Stocks-jump-after-G20-pledge-apf-2566762760.html?x=0

Stocks jump after G-20 pledge to aid economies

Stocks jump as G-20 countries agree to maintain economic stimulus; sliding dollar lifts market

By Tim Paradis, AP Business Writer
On 4:41 pm EST, Monday November 9, 2009

NEW YORK (AP) -- The Dow Jones industrial average stormed to its highest level in more than a year Monday as a falling dollar boosted prices for commodities including gold and oil. Stocks also jumped as investors grew more confident that governments around the world will keep interest rates low to help the global economy.

Energy and materials stocks led the market. The major indexes rose 2 percent and the Dow jumped 200 points for the second time in three days and reached its highest level in 13 months.

News that the Group of 20 countries will keep their economic stimulus measures in place signaled to investors that rates will remain low. With U.S. rates near zero, the G-20 news lessened demand for the dollar.

Even as investors are waiting for more signs that the economy is recovering, they've been focusing on the dollar's moves when they make their buy and sell decisions. Investors around the world see the dollar as weaker than other currencies, and so they're using it for what's known as "carry trade," to finance purchases of investments in other countries. That trend takes the dollar down further when those purchases are made.

But some analysts are questioning the stock market's moves given the still-weak economy, and warn that stocks and other investments could suffer big losses if the dollar were to turn higher.

"It feels like it's on fumes," said Sean Simko, head of fixed income management at SEI Investments in Oaks, Pa., referring to the market's advance. "Although fundamentals are catching up, they're not caught up."

He said the dollar's drop and the current surge in stocks and commodities are making it hard for investors to get a clear picture of how fast the economy is rebounding.

Still, many investors like a weaker dollar because it helps U.S. exporters by making their goods cheaper to overseas buyers and giving the companies a boost when they convert profits from abroad to dollars.

The ICE Futures U.S. dollar index, which measures the greenback against a basket of foreign currencies, fell to its lowest level in 15 months. The dollar rose last year and early this year but the index has been sliding for the past eight months since major stock indicators bounced off 12-year lows. Investors, although they've been basing most of their buy or sell decisions on the economy, have also been following a pattern of funneling money into stocks when the dollar weakens and pulling it out when the currency rises.

Commodities prices, meanwhile, tend to rise when the dollar is down, so gold topped $1,100 an ounce. Crude oil rose $2 to settle at $79.43 per barrel on the New York Mercantile Exchange, helped in part by Tropical Storm Ida, which threatened the Gulf of Mexico.

Energy and materials stocks rose along with commodities prices, and investors' enthusiasm for those stocks spilled over to other industries.

Brian Battle, vice president of trading at Performance Trust Capital Partners in Chicago, said the strength of the carry trade is giving an artificial lift to a range of assets, including stocks.

"There's cheap money that's going to be pumping its way into the system," he said. "That money is finding is home in the currency and commodity markets."

According to preliminary calculations, the Dow rose 203.52, or 2 percent, to 10,226.94, its highest finish since Oct. 3, 2008. The index rose as high as 10,228.23, topping its previous 12-month trading high of 10,119.46 set last month.

The broader Standard & Poor's 500 index rose 23.78, or 2.2 percent, to 1,093.08, its sixth straight advance. The Nasdaq composite index rose 41.62, or 2 percent, to 2,154.06.

Five stocks rose for every one that fell on the New York Stock Exchange, where volume came to 1.2 billion shares compared with 1.1 billion Friday.

Bond prices mostly rose, pushing yields lower. The yield on the benchmark 10-year Treasury note slipped to 3.48 percent from 3.50 percent late Friday.

The dollar's slide also came as the International Monetary Fund said the dollar remained "on the strong side." That added to selling pressure.

Jason Pride, director of research at Haverford Investments outside Philadelphia, isn't troubled by the slide in the dollar because he sees it as another sign that fear in the market is easing after the slide of the past two years. Investors rushed into the dollar as they sought the safest assets.

"As the economy gets back to normal from what were very dire circumstances earlier this year the equity markets are going to be moving up and the dollar should be falling," he said.

"You're seeing a lot of pieces move off each other and the dollar is driving a lot of it," he said.

Retailers had some of the biggest gains in the market's broad advance. Abercrombie & Fitch Co. rose $2.58, or 7.4 percent, to $37.59 after several analysts said international growth would boost growth at the teen apparel retailer. The company is slated to post its fiscal third-quarter numbers Friday.

Investors are looking for any insight into how much consumers are spending as the holidays approach. J.C. Penney Co., Macy's Inc. and Wal-Mart Stores Inc. are among the stores expected to post quarterly results this week.

Among enegy stocks, Exxon Mobil Corp. rose 69 cents to $72.85. Gold producer Newmont Mining Corp. rose $1.52, or 3.1 percent, to $50.56 and hit a 12-month high.

The Russell 2000 index of smaller companies rose 11.96, or 2.1 percent, to 592.31.

Overseas, Britain's FTSE 100 rose 1.8 percent, Germany's DAX index jumped 2.4 percent, and France's CAC-40 rose 2.1 percent. Japan's Nikkei stock average rose 0.2 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks zigzag after Dow jumps to 13-month high; Dollar gains as risk appetite cools

The stock market spent most of the session trading without clear direction as participants took a bit of a breather following the previous session's heady advance. That left the major indices to settle in mixed fashion.

Stocks oscillated throughout the session as the U.S. dollar fluctuated against other major currencies after it dropped sharply in the previous session. The greenback initially found support as the British pound weakened in the wake of news that credit analysts at Fitch said Britain is the most likely of the major economies to lose its AAA credit rating. Representatives from the United Kingdom maintain that the credit rating remains safe. That helped the pound trim its losses and undercut the dollar; the Dollar Index finished flat after being up as much as 0.3%.

Investors cooled their buying of stocks and commodities, pausing from a surge that carried major stock indexes to their highest levels in more than a year.

Stocks ended mixed Tuesday. The Dow Jones industrials tacked on 20 points a day after shooting up 200 points for the second time in three days.

The market again took its direction from the dollar, as it has for months. Stocks drove higher Monday as the dollar weakened and slipped Tuesday as the currency rose.

The NYSE DOW closed HIGHER +20.03 points +0.20% on Tuesday November 10
Sym Last........ ........Change..........
Dow 10,246.97 +20.03 +0.20%
Nasdaq 2,151.08 -2.98 -0.14%
S&P 500 1,093.01 -0.07 -0.01%
30-yr Bond 4.4150% +0.0140

NYSE Volume 4,509,154,000 (prior day 4,669,590,000)
Nasdaq Volume 2,010,198,620 (prior day 2,044,066,125)

Oil 78.85 -0.58 -0.73%
Gold 1,101.90 +1.10 +0.10%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,230.55 -4.63 -0.09%
DAX 5,613.20 -6.52 -0.12%
CAC 40 3,785.59 +0.10 +0.00%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,870.73 +61.74 +0.63%
Hang Seng 22,268.16 +60.61 +0.27%
Straits Times 2,707.60 +14.22 +0.53%

http://finance.yahoo.com/news/Stock...tml?x=0&sec=topStories&pos=main&asset=&ccode=

Stocks zigzag after rally as the dollar rises

Stocks zigzag after Dow jumps to 13-month high; Dollar gains as risk appetite cools

By Sara Lepro and Tim Paradis, AP Business Writers
On 4:31 pm EST, Tuesday November 10, 2009

NEW YORK (AP) -- Investors cooled their buying of stocks and commodities, pausing from a surge that carried major stock indexes to their highest levels in more than a year.

Stocks ended mixed Tuesday. The Dow Jones industrials tacked on 20 points a day after shooting up 200 points for the second time in three days.

The market again took its direction from the dollar, as it has for months. Stocks drove higher Monday as the dollar weakened and slipped Tuesday as the currency rose.

The Dow swung in a range of about 60 points in light trading as investors increased their buying of safe-haven assets like the dollar and Treasurys. The ICE Futures US dollar index, which measures the dollar against other currencies, edged higher.

"People are reaching for a little less risk today after we've had such a run," said Bill Stone, chief investment strategist at PNC Wealth Management.

Record-low interest rates in the U.S. and the resulting slide in the dollar have been major forces behind the surge in stocks in recent months. A weaker dollar allows investors to borrow money cheaply, while the low interest rates also encourage them to hold any assets other than low-yielding cash, such as stocks, commodities and bonds.

The falling dollar has enabled many investors to look past some of the economy's persistent trouble spots, including unemployment. The jobless rate rose to 10.2 percent in October, the highest level in 26 years.

A number of market watchers still believe the recent surge in stocks has been overdone given the weaknesses that remain in the economy, such as the large amounts of souring loans on banks' balance sheets.

Still, some analysts said the market's ability to hold its gains is a welcome sign.

Ryan Detrick, senior technical strategist at Schaeffer's Investment Research, said it is encouraging that the market is holding its gains and isn't as volatile as last month when big advances would be followed by big drops. He said a day of modest moves is a healthful sign of a market consolidating its gains.

"It's kind of what you call a coffee day," he said, referring to the market's small moves. "We expect that we'll continue to stair-step higher to the end of the year."

According to preliminary calculations, the Dow rose 20.03, or 0.2 percent, to 10,246.97, its fourth straight advance and its highest close since Oct. 3, 2008. The Dow traded up to 10,260.80, a 12-month.

The broader Standard & Poor's 500 index fell 0.07, or less than 0.1 percent, to 1,093.01, after six straight days of gains. The Nasdaq composite index fell 2.98, or 0.1 percent, to 2,151.08.

Three stocks fell for every two that rose on the New York Stock Exchange, where volume came to 1.1 billion shares, compared with 1.2 billion Monday.

Bond prices mostly rose, sending yields down, after an auction of 10-year notes drew decent demand. The 10-year yield fell to 3.48 percent from 3.49 percent late Monday.

In corporate news, bond insurer MBIA Inc. tumbled $1.28, or 26.7 percent, to $3.52 after posting a third-quarter loss on weaker results at its insurance business.

American International Group Inc. rose after analysts at Moody's Investor Service projected that the insurer will have adequate resources to repay the federal government. The government has injected more than $182 billion in aid to the company to help stabilize the financial system. AIG rose $1.41, or 3.9 percent, to $37.59.

Priceline.com Inc. jumped to a nine-year high after the online travel booking company said it was seeing an increase in customers booking airfare and hotel rooms. The stock rose $30.49, or 17.6 percent, to $204.22 after trading as high as $209.19.

Beazer Homes USA rose after the homebuilder turned a fiscal fourth-quarter profit despite a plunge in revenue and said it saw "some moderation" in weak market trends. The stock rose 41 cents, or 8.7 percent, to $5.10.

Fluor Corp. fell $3.63, or 7.6 percent, to $44.38 after the engineering and construction company posted an 11 percent drop in its third-quarter profit as revenue fell at its oil and gas and power divisions.

Crude oil fell 38 cents to settle at $79.05 per barrel on the New York Mercantile Exchange, while gold rose.

In other trading, the Russell 2000 index of smaller companies fell 5.34, or 0.9 percent, to 586.97.

Overseas, Britain's FTSE and Germany's DAX index each fell 0.1 percent. France's CAC-40 was essentially flat. Japan's Nikkei stock average rose 0.6 percent.

 

[bigdog]

Source: http://finance.yahoo.com

A rebound by the U.S. dollar and some technical resistance caused stocks to make an early pullback from 2009 highs and spend the rest of the session trading in lackluster fashion.

Broad-based buying in overseas markets amid strong economic data from Asia and solid earnings from some major industry players in Europe helped inspire a positive tone among U.S. participants in the early going. That combined with renewed weakness in the U.S. dollar to send the S&P 500 1.1% higher to a fractionally better 2009 high in the first hour of trade.

Another weak day for the dollar and upbeat economic news from China gave investors more reason to keep buying stocks.

A drop in the dollar lifted gold and oil prices after Federal Reserve officials signaled that borrowing rates would remain low. The market bounded higher in early trading but came off its highest levels as the dollar pulled off of a 15-month low.

Investors drew encouragement from a 16.1 percent jump in industrial production in China. That fanned expectations that a broader global recovery is gaining steam.

The NYSE DOW closed HIGHER +44.29 points +0.43% on Wednesday November 11
Sym Last........ ........Change..........
Dow 10,291.26 +44.29 +0.43%
Nasdaq 2,166.90 +15.82 +0.74%
S&P 500 1,098.51 +5.50 +0.50%
30-yr Bond 4.4140% -0.0010

NYSE Volume 4,514,096,500 (prior day 4,509,154,000)
Nasdaq Volume 1,891,974,120 (prior day 2,010,198,620)

Oil 79.28 +0.23 +0.29%
Gold US$/oz 1118.00 +13.10 +1.19%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,266.75 +36.20 +0.69%
DAX 5,668.35 +55.15 +0.98%
CAC 40 3,814.39 +28.80 +0.76%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,871.68 +0.95 +0.01%
Hang Seng 22,627.21 +359.05 +1.61%
Straits Times 2,740.43 +32.83 +1.21%

http://finance.yahoo.com/news/Stocks-rise-as-traders-bet-on-apf-3235873442.html?x=0

Stocks rise as dollar continues to dictate trading

Stocks rise on as dollar tugs at market; Fed officials signal rates will remain low for now

By Tim Paradis, AP Business Writer

NEW YORK (AP) -- Another weak day for the dollar and upbeat economic news from China gave investors more reason to keep buying stocks.

A drop in the dollar lifted gold and oil prices after Federal Reserve officials signaled that borrowing rates would remain low. The market bounded higher in early trading but came off its highest levels as the dollar pulled off of a 15-month low.

Investors drew encouragement from a 16.1 percent jump in industrial production in China. That fanned expectations that a broader global recovery is gaining steam.

The Dow Jones industrial average rose 44 points in light trading after being up as much as 95 points and hitting a 13-month high. The Dow posted its sixth straight gain.

Trading was light because of the Veterans Day holiday, but volume has been weak for most of the month.

The early drop in the dollar came after several Fed officials said late Tuesday that the economic recovery is likely to be weak. Investors took that as another sign that policymakers will hold interest rates low to help resuscitate growth. The central bank indicated after a policy meeting last week that they wouldn't raise rates until the economy was on firm footing.

Record-low interest rates and the resulting slide in the dollar have been major forces behind the surge in stocks since the summer. The borrowing costs of near zero are a boon for financial companies, and the weaker dollar helps make U.S. exports cheaper to overseas buyers.

Analysts said the direction of the dollar likely will continue to dictate trading.

"I don't see anything that's changing out there that's going to stop out dollar from getting weaker," said Ralph Fogel, co-chief investment officer at Fogel Neale Partners in New York.

According to preliminary calculations, the Dow rose 44.29, or 0.4 percent, to 10,291.26. The Dow rose as high as 10,341.97, its best level since Oct. 3, 2008.

The Dow's advance was significant for traders who track stock charts. The index briefly topped 10,334, the level that marked the halfway point in its recovery since tumbling to a 12-year low of 6,574 on March 9.

The broader Standard & Poor's 500 index rose 5.50, or 0.5 percent, to 1,098.51 and topped 1,100 for the first time since last year. It hit a 13-month high of 1,105.37 -- also its best level since Oct. 3 last year.

The Nasdaq composite index rose 15.82, or 0.7 percent, to 2,166.90.

The Russell 2000 index of smaller companies rose 5.78, or 1 percent, to 592.71.

Bond markets were closed for the Veterans Day holiday.

Crude oil rose 23 cents to $79.28 per barrel on the New York Mercantile Exchange. Meanwhile, gold ended up $12.10 at $1,114.60 an ounce after trading as high as $1119.10.

A jump in orders at luxury builder Toll Brothers Inc. pushed home builder stocks to steep gains. Toll Brothers jumped $3.02, or 16.4 percent, to $21.41 after its report.

Pulte Homes Inc. rose 77 cents, or 8.1 percent, to $10.23, while Beazer Homes USA Inc. advanced 63 cents, or 12.4 percent, to $5.73.

Gold producer Newmont Mining Corp. rose 78 cents, or 1.6 percent, to $51.24 and hit a 12-month high.

Macy's Inc.'s fell after it didn't increase its full-year earnings and sales forecasts as much as analysts had hoped. The stock fell $1.57, or 8.1 percent, to $17.86.

Reports from retailers are important because investors are worried that the economy won't be able to sustain its recovery if consumers don't step up their spending.

Investors will be looking for signals about the economy Thursday when Wal-Mart Stores Inc. as well as the department store chains Kohl's Corp. and Nordstrom Inc. post quarterly numbers. Walt Disney Co. is also slated to report.

Three stocks rose for every two that fell on the New York Stock Exchange, where volume came to 1 billion shares compared with 1.1 billion Tuesday.

Overseas, Japan's Nikkei stock average rose 0.1 percent. Britain's FTSE 100 rose 0.7 percent, Germany's DAX index rose 1 percent, and France's CAC-40 added 0.8 percent.

 

[bigdog]

Source: http://finance.yahoo.com

A stronger dollar dampened the mood of participants for the entire session, resulting in broad-based losses for stocks.

Stocks had spent the first part of the session chopping around listlessly, but began to slide as the U.S. dollar was able to further extend its rebound from the previous session, when the Dollar Index registered a fresh 52-week low. Though the greenback made a couple of pullbacks in the early going, it never left positive territory. That induced some short covering, which helped it finish the session with a 0.8% gain, its best single-session percentage advance in more than one month.

Stocks chopped along in listless action during the early going and briefly made their way to modest gains amid momentary pullbacks by the greenback, but stocks soon fell into the red as the dollar firmed up its gains. Amid the dollar's strong advance, the S&P 500 logged its worst performance by percent of this month, though to be fair, the only other loss this month took place earlier this week when the broader market slipped less than 0.01%.

A drop in energy stocks dragged the market lower Thursday following a government report that consumers and businesses cut back on their use of oil and gas.

Major stock indexes slid about 1 percent from 13-month highs, including the Dow Jones industrial average, which fell 94 points after six days of gains.

A jump in petroleum supplies last week stirred worries that the falling demand for energy was a sign of more weakness in the economy. The report pushed crude oil down 3 percent, below $77 a barrel.

The NYSE DOW closed LOWER -93.79 points -0.91% on Thursday November 12
Sym Last........ ........Change..........
Dow 10,197.47 -93.79 -0.91%
Nasdaq 2,149.02 -17.88 -0.83%
S&P 500 1,087.24 -11.27 -1.03%
30-yr Bond 4.3860% -0.0280

NYSE Volume 4,341,626,500 (prior day 4,514,096,500)
Nasdaq Volume 2,219,716,750 (prior day 1,891,974,120)

Oil 76.77 -2.51 -3.17%
Gold 1,104.30 -10.50 -0.94%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,276.50 +9.75 +0.19%
DAX 5,663.96 -4.39 -0.08%
CAC 40 3,808.07 -6.32 -0.17%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,804.49 -67.19 -0.68%
Hang Seng 22,397.57 -229.64 -1.01%
Straits Times 2,726.24 -14.19 -0.52%

http://finance.yahoo.com/news/Drop-in-US-energy-use-drags-apf-4294059442.html?x=0

Drop in US energy use drags stock market lower

Stocks fall as weaker consumption of oil and gas stirs worries about economy; Dow drops 94 pts

By Tim Paradis, AP Business Writer
On 4:25 pm EST, Thursday November 12, 2009

NEW YORK (AP) -- A drop in energy stocks dragged the market lower Thursday following a government report that consumers and businesses cut back on their use of oil and gas.

Major stock indexes slid about 1 percent from 13-month highs, including the Dow Jones industrial average, which fell 94 points after six days of gains.

A jump in petroleum supplies last week stirred worries that the falling demand for energy was a sign of more weakness in the economy. The report pushed crude oil down 3 percent, below $77 a barrel.

A gain in the dollar also weighed on commodity prices by making them more expensive for overseas buyers.

The resulting slide in energy shares upended an early advance led by technology stocks, which rose after 3Com Corp. agreed to a $2.7 billion takeover by Hewlett-Packard Co. and as Intel Corp. said it would pay $1.25 billion to Advanced Micro Devices Inc. to settle legal disputes.

The disappointing report on energy usage overshadowed other news about the economy. The Labor Department said new claims for unemployment insurance fell last week to a seasonally adjusted 502,000 from an upwardly revised 514,000 the previous week. That's the fewest claims since early January and better than economists had forecast.

Wal-Mart Stores Inc. reported third-quarter earnings that beat analysts' expectations, though sales at stores open at least a year dropped during the quarter. The nation's biggest retailer said sales at existing stores would range from a drop of 1 percent to a gain of 1 percent in its fourth quarter. Sales at stores open at least a year are an important indicator of a retailer's strength.

The mammoth company is seen as a key indicator of consumer spending trends. Investors have worried for months that consumers are so strained by unemployment and lower home prices that they won't spend more and help propel a recovery in the economy.

Frank Ingarra Jr., co-portfolio manager at Hennessy Funds in Stamford, Conn., said stocks had been due for a pause after steep gains in the past week. The Dow and the S&P 500 index closed at their highest levels since October 2008 on Wednesday.

"There is very light volume so it looks like the market wants to do a little consolidating here," he said.

According to preliminary calculations, the Dow fell 93.79, or 0.9 percent, to 10,197.47. The Dow had been up 519 points, or 5.3 percent, in the prior six days -- its longest stretch of gains since late August.

The broader S&P 500 index fell 11.27, or 1 percent, to 1,087.24, and the Nasdaq fell 17.88, or 0.8 percent, to 2,149.02.

The Russell 2000 index of smaller companies fell 12.39, or 2.1 percent, to 580.32.

Four stocks fell for every one that rose on the New York Stock Exchange, where volume came to 1.1 billion shares compared with 1 billion Wednesday.

Tom Nyheim, portfolio manager at Christiana Bank & Trust Co. in Greenville, Del., said the drop in oil wasn't likely to last because demand would outstrip supply as economies in Asia and elsewhere recover ahead of the U.S.

He was encouraged that the stock market held most of its recent gains and wasn't enduring big slides when downbeat news arrived.

"When you get a bad piece of information coming into the market it only takes it down a half percent and then the market seems to firm up," Nyheim said. "I think we're going to consolidate, maybe flat-line toward the end of the year."

Treasurys rose, pushing yields lower. The yield on the benchmark 10-year Treasury note fell to 3.45 percent from 3.48 percent late Tuesday. Bond markets were closed Wednesday for Veterans Day.

Crude oil fell $2.34 to settle at $76.94 per barrel on the New York Mercantile Exchange. Gold fell.

The drop in oil weighed on energy stocks. Anadarko Petroleum Corp. fell $2.43, or 3.7 percent, to $62.55, while Range Resources Corp. fell $2.22, or 4.3 percent, to $48.98.

Among tech stocks, 3Com rose $1.77, or 31.1 percent, to $7.46, while H-P fell 30 cents, or 0.6 percent, to $49.70.

Advanced Micro rose $1.16, or 21.8 percent, to $6.48, while Intel fell 16 cents, or 0.8 percent, to $19.68.

Wal-Mart rose 27 cents, or 0.5 percent, to $53.24. Kohl's Corp. rose 5 cents, or 0.1 percent, to $54.64 after the department store chain's fiscal third-quarter profit rose 21 percent.

Overseas, Britain's FTSE 100 rose 0.2 percent, Germany's DAX index fell 0.1 percent and France's CAC-40 fell 0.2 percent. Japan's benchmark Nikkei stock average lost 0.7 percent.

 

[bigdog]

Source: http://finance.yahoo.com

The Dow Jones industrial average closed the week up 247.05, or 2.5 percent, at 10,270.47. The Standard & Poor's 500 index rose 24.18, or 2.3 percent, to 1,093.48. The Nasdaq composite index rose 55.44, or 2.6 percent, to 2,167.88.

Weekly Recap - Week ending 13-Nov-09An early rally in equities this week helped the major averages regain more of their late-October declines. The rally was large-cap driven, as the Dow was the first index to reach a new 52-week high on Monday, followed by the Nasdaq 100 and S&P 500 on Wednesday. The larger composites trailed, particularly the Russell 2000, which only showed a modest gain on the week.

All ten sectors that make up the S&P 500 advanced. Materials (+4.2%) led the way, followed by IT (+3.3%) and Consumer Discretionary (+3.2%). Energy (+0.2%) trailed.

The biggest catalyst for equity markets remains the U.S. dollar.

Encouraging earnings news from major retailers and The Walt Disney Co. drew investors back into the stock market to cap a second big week of gains.

The Dow Jones industrial average gained 73 Friday after falling 94 on Thursday. Major stock indexes rose more than 2 percent for the week.

Upbeat quarterly reports from Disney as well as Abercrombie & Fitch Co. and J.C. Penney Co. offset worries about a slide in consumer confidence.

The NYSE DOW closed HIGHER +73.00 points +0.72% on Friday November 13
Sym Last........ ........Change..........
Dow 10,270.47 +73.00 +0.72%
Nasdaq 2,167.88 +18.86 +0.88%
S&P 500 1,093.48 +6.24 +0.57%
30-yr Bond 4.3560% -0.0300

NYSE Volume 4,446,306,000 (prior day 4,341,626,500)
Nasdaq Volume 1,916,369,000 (prior day 2,219,716,750)

Oil 76.35 -0.59 -0.77%
Gold 1,116.10 +10.10 +0.91%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,296.38 +19.88 +0.38%
DAX 5,686.83 +22.87 +0.40%
CAC 40 3,806.01 -2.06 -0.05%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,770.31 -34.18 -0.35%
Hang Seng 22,553.63 +156.06 +0.70%
Straits Times 2,727.23 +0.99 +0.04%

http://finance.yahoo.com/news/Earnings-reports-push-stocks-apf-3791949710.html?x=0&.v=31

Earnings reports push stocks higher; Dow gains 73

Stocks rebound as earnings reports boost confidence about the pace of economic recovery

By Tim Paradis, AP Business Writer
On 5:55 pm EST, Friday November 13, 2009

NEW YORK (AP) -- Encouraging earnings news from major retailers and The Walt Disney Co. drew investors back into the stock market to cap a second big week of gains.

The Dow Jones industrial average gained 73 Friday after falling 94 on Thursday. Major stock indexes rose more than 2 percent for the week.

Upbeat quarterly reports from Disney as well as Abercrombie & Fitch Co. and J.C. Penney Co. offset worries about a slide in consumer confidence.

Disney said late Thursday that higher revenue at its cable, broadcast and movie studio divisions helped drive profits up 18 percent. Abercrombie's results were better than expected, while J.C. Penney raised its earnings and sales forecasts.

The market stumbled briefly in morning trading after a report found that the mood of consumers darkened this month. The preliminary Reuters/University of Michigan consumer sentiment index for November came in at 66.0, down from 70.6 in October. That could bode poorly for the holiday shopping season.

Stocks rebounded after that report but later pared their gains as the dollar pulled off its lows of the day. The dollar's steady slide since March, due largely to record-low U.S. interest rates, has pushed stocks and commodities higher on hopes that it would help U.S. exports, which become cheaper overseas with the weak dollar.

Lawrence Creatura, equity market strategist and portfolio manager at Federated Clover Capital Advisors, said investors looked past the consumer confidence figure to focus on earnings reports because they are a more reliable indicator about the economy.

"It's probably safe to say that investors are rationally more focused on what consumers do rather than what they say," he said.

The Dow rose 73.00, or 0.7 percent, to 10,270.47. The Dow's drop Thursday broke a six-day winning streak, as oil prices tumbled following a drop in energy demand and a stronger dollar.

The broader Standard & Poor's 500 index rose 6.24, or 0.6 percent, to 1,093.48. The Nasdaq composite index rose 18.86, or 0.9 percent, to 2,167.88.

For the week, the Dow rose 2.5 percent, after jumping 3.2 percent last week. The gains have boosted the Dow's climb for the year to 17 percent after a slump in late October.

The S&P 500 index rose 2.3 percent for the week, while the Nasdaq added 2.6 percent.

The ICE Futures US dollar index, which measures the dollar against other currencies, fell Friday after rising for two days.

The dollar drove trading during the week, as it has for months. The biggest gain of the week came Monday when the Dow jumped 204 points as a falling dollar increased commodities prices and officials from the Group of 20 wealthy and developing nations signaled they would hold interest rates low to propel economic growth. The Dow rose each day except Thursday.

Randy Frederick, director of trading and derivatives at Charles Schwab, expects the tie between the dollar and stocks to continue.

"As long as interest rates stay low it's going to be difficult for the dollar to gain any strength," he said.

Analysts also say news about consumers will direct the market. Traders will be gathering fresh insight next week with a government report due Monday on retail sales in October as well as quarterly earnings reports from Gap Inc., Home Depot Inc., Saks Inc. and Target Corp.

Investors are worried that consumers won't be ready to spend more as the effects of government spending like the Cash for Clunkers program dissipate.

"The real concern is once the impact of the stimulus works its way through the system is there going to be a smooth handoff to the consumer?" said Jim Baird, chief investment strategist at Plante Moran Financial Advisors.

The latest batch of earnings reports gave some hope. Disney rose $1.39, or 4.8 percent, to $30.44 and posted the biggest advance of the 30 stocks that make up the Dow industrials.

Abercrombie jumped $3.92, or 10.7 percent, to $40.68, while J.C. Penney gained $1.82, or 6.2 percent, to $31.21.

Bonds mostly rose, pushing yields lower. The yield on the 10-year note fell to 3.43 percent from 3.45 percent late Thursday.

Gold rose for the ninth time in 10 days, while oil fell 59 cents to settle at $76.35 a barrel on the New York Mercantile Exchange.

Three stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume came to 3.9 billion shares, the lowest level in a month. Volume was 4.2 billion Thursday.

The Russell 2000 index of smaller companies rose 5.96, or 1 percent, to 586.28.

Overseas, Britain's FTSE 100 and Germany's DAX index rose 0.4 percent, while France's CAC-40 lost 0.1 percent. Japan's Nikkei stock average slipped 0.4 percent.

The Dow Jones industrial average closed the week up 247.05, or 2.5 percent, at 10,270.47. The Standard & Poor's 500 index rose 24.18, or 2.3 percent, to 1,093.48. The Nasdaq composite index rose 55.44, or 2.6 percent, to 2,167.88.

The Russell 2000 index, which tracks the performance of small company stocks, rose 5.93, or 1 percent, for the week to 586.28.

The Dow Jones U.S. Total Stock Market Index -- which measures nearly all U.S.-based companies -- ended at 11,095.15, up 231.89, or 2.1 percent.

7388

 

[bigdog]

Source: http://finance.yahoo.com

Broad-based buying on the back of a weaker dollar drove the major indices to new highs for 2009. Strength in the broader market also helped stocks offset a late slip by financials so that the S&P 500 could settle above the 1100 mark for the first time in more than one year.

The U.S. dollar came under considerable pressure early. That helped perpetuate a positive tone among participants, who were already inspired by overseas gains in the wake of a renewed commitment by Asian officials to economic stimulus. With a 0.6% drop by the greenback against a basket of foreign currencies, the Dollar Index was left to trade near its 52-week lows.

Investors kept the stock market's upward momentum going Monday, sending shares sharply higher as the dollar extended its slide and after retail sales rebounded more than expected in October.

Major stock indexes rose more than 1 percent to new 13-month highs, including the Dow Jones industrial average, which jumped 136 points. The Standard & Poor's 500 index closed above the 1,100 mark for the first time in more than a year.

The weaker dollar lifted gold to a new record and pumped up prices of other commodities, including oil. That, in turn, helped shares of energy and materials companies.

The NYSE DOW closed HIGHER +136.49 points +1.33% on Monday November 16
Sym Last........ ........Change..........
Dow 10,406.96 +136.49 +1.33%
Nasdaq 2,197.85 +29.97 +1.38%
S&P 500 1,109.30 +15.82 +1.45%
30-yr Bond 4.2580% -0.0980

NYSE Volume 5,301,507,500 (prior day 4,446,306,000)
Nasdaq Volume 2,117,517,500 (prior day 1,916,369,000)

Oil 78.82 +2.47 +3.24%
Gold 1,138.60 +22.50 +2.02%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,382.67 +106.17 +2.01%
DAX 5,804.82 +117.99 +2.07%
CAC 40 3,863.16 +57.15 +1.50%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,791.18 +20.87 +0.21%
Hang Seng 22,943.98 +390.35 +1.73%
Straits Times 2,783.85 +56.62 +2.08%

http://finance.yahoo.com/news/Stocks-jump-as-retail-sales-apf-1869698178.html?x=0

Stocks jump as retail sales rebound in October

Stocks vault higher after retail sales rebound in October; Weakening dollar lifts commodities

By Stephen Bernard and Tim Paradis, AP Business Writers
On 4:33 pm EST, Monday November 16, 2009

NEW YORK (AP) -- Investors kept the stock market's upward momentum going Monday, sending shares sharply higher as the dollar extended its slide and after retail sales rebounded more than expected in October.

Major stock indexes rose more than 1 percent to new 13-month highs, including the Dow Jones industrial average, which jumped 136 points. The Standard & Poor's 500 index closed above the 1,100 mark for the first time in more than a year.

The weaker dollar lifted gold to a new record and pumped up prices of other commodities, including oil. That, in turn, helped shares of energy and materials companies.

Stocks added to their gains after Federal Reserve Chairman Ben Bernanke reaffirmed in a midday speech that the central bank would hold interest rates at record-low levels for an "extended period," and that he didn't see signs that the money being pumped into the economy by the government was creating speculative bubbles. Bond prices jumped after Bernanke said inflation appeared contained.

Some analysts have cautioned that the surge in stocks, which has been hastened by a sliding dollar, might not be justified by the still struggling economy. In fact, they say some investors might misread the big advance in stocks as a sign that the economy is stronger than it actually is.

The market's own dynamics also fed some of the day's gains.

Dan Deming, a trader with Stutland Equities, said the S&P 500's move above 1,100 gave some investors a shot of confidence and led to short-covering, which tends to amplify gains in the market. Short-covering occurs when investors have to buy stock after having earlier sold borrowed shares in a bet they would fall.

"We're breaking through the 1,100 mark, which is psychologically significant, and the market is seeing a little pop from that," Deming said.

Stocks began rising from the start after the Commerce Department said retail sales rose 1.4 percent in October, easily surpassing the 0.8 percent increase forecast by economists polled by Thomson Reuters. It was a sharp rebound following the 2.3 percent drop in September. Excluding the gain from autos, however, sales rose just 0.2 percent, half of what economists predicted.

Jamie Cox, a managing partner at Harris Financial Group, said the sales growth was a good sign heading into the holiday shopping season, especially because the data were not affected by factors such as sales-tax holidays and government stimulus programs that had been present in the preceding months.

According to preliminary calculations, the Dow rose 136.49, or 1.3 percent, to 10,406.96 after rising nearly 164 points.

The broader S&P 500 index rose 15.82, or 1.5 percent, to 1,109.30. It traded above 1,100 in mid-October but hasn't closed above that benchmark since October last year. The S&P 500 index first finished above 1,100 more than a decade ago, in March 1998.

The Nasdaq composite index rose 29.97, or 1.4 percent, to 2,197.85.

The Russell 2000 index of smaller companies advanced 16.59, or 2.8 percent, to 602.87.

The ICE Futures US dollar index, which measures the dollar against other currencies, fell 0.6 percent to a 15-month low. Gold reached a record $1,143.40 an ounce.

Investors have been using the weak dollar to finance purchases of higher-yielding assets. The move, what's known as a "carry trade," can further weaken the dollar.

Bond prices rose, pushing down yields. The yield on the benchmark 10-year Treasury note fell to 3.33 percent from 3.42 percent late Friday.

General Motors Co. said it lost $1.2 billion in the period since emerging from bankruptcy and the end of the third quarter on Sept. 30. Despite the loss, GM said it will begin to repay $6.7 billion in government loans and was seeing a stabilization in its business.

The stock market has been on a strong run after a pullback at the end of October. The Dow has jumped 694 points, or 7.2 percent, since the start of the month, raising questions about whether the market's advance is justified, given the still struggling economy.

Joe Battipaglia, market strategist for the private client group at Stifel Nicolaus & Co. in Yardley, Pa., said investors are placing big bets that interest rates will remain at record low rates because of Bernanke's comments and because the economy remains fragile. He contends the gains in stocks are being driven by trades like those involving the dollar and not healthy economic fundamentals.

"It's not like we're on some rocket trajectory of economic growth that's going to bring up the earnings and bring down unemployment," Battipaglia said.

Crude oil rose $2.55 to settle at $78.90 per barrel on the New York Mercantile Exchange.

Energy and materials stocks rose. Baker Hughes Inc. rose $1.89, or 4.6 percent, to $43.34, while Freeport-McMoRan Copper & Gold Inc. rose $2.91, or 3.6 percent, to $84.48.

About five stocks rose for every one that fell on the New York Stock Exchange, where volume came to 1.1 billion shares compared with 985 million Friday.

Overseas, Japan's Nikkei stock average rose 0.2 percent after that country's economy grew for the second straight quarter, marking an end to the recession there.

Investors also drew confidence from the results of the 21-member Asia-Pacific Economic Cooperation forum, which said it would maintain stimulus spending until a global economic recovery is at hand.

Britain's FTSE 100 rose 1.6 percent, Germany's DAX index gained 2.1 percent, and France's CAC-40 rose 1.5 percent

 

[bigdog]

Source: http://finance.yahoo.com

The major indices overcame broad losses to finish incrementally higher as the U.S. dollar handed back a portion of its gains this session. The greenback's pullback helped materials stocks offset weakness among retailers.

After falling to a fresh 52-week low in the previous session, the Dollar Index rebounded as much as 1% before easing back to a 0.5% gain. The greenback's bounce gave the equity market an excuse to take a breather after setting new 2009 highs in the previous session. However, stocks showed a willingness to push even higher as the dollar pared its gains; in turn, stocks trimmed their losses to find higher ground late in the session.

Stocks finished an erratic session mixed Tuesday as higher commodity prices lifted energy and materials shares.

The meager advances were enough to push stocks to new 13-month highs, though more shares fell than rose at the New York Stock Exchange. The market had zigzagged for much of the day on mixed news from retailers and on industrial production.

A rebound in the dollar after three down days kept investors' appetite for stocks in check. A long-term weakening trend in the dollar since March has been lifting commodities prices and shares of U.S. exporters, which benefit from stronger foreign demand for their goods when the dollar falls. Record-low U.S. interest rates have also driven investors to seek higher returns in stocks and commodities, pushing share prices higher.

The NYSE DOW closed HIGHER +30.46 points +0.29% on Tuesday November 17
Sym Last........ ........Change..........
Dow 10,437.42 +30.46 +0.29%
Nasdaq 2,203.78 +5.93 +0.27%
S&P 500 1,110.32 +1.02 +0.09%
30-yr Bond 4.2500% -0.0080

NYSE Volume 4,458,950,500 (prior day 5,301,507,500)
Nasdaq Volume 1,914,081,000 (prior day 2,117,517,500)

Oil 79.14 +0.24 +0.30%
Gold 1,138.80 +0.20 +0.02%

Europe
Symbol... Last...... .....Change.......
FTSE 100 5,345.93 -36.74 -0.68%
DAX 5,778.43 -26.39 -0.45%
CAC 40 3,829.06 -34.10 -0.88%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,729.93 -61.25 -0.63%
Hang Seng 22,914.15 -29.83 -0.13%
Straits Times 2,764.95 -18.90 -0.68%

http://finance.yahoo.com/news/Stocks-post-modest-gains-on-apf-307156118.html?x=0

Stocks post modest gains on rise in commodities

Stocks end modestly higher as gain in commodities lifts material, energy stocks; Dow adds 30

By Stephen Bernard and Tim Paradis, AP Business Writers
On 4:56 pm EST, Tuesday November 17, 2009

NEW YORK (AP) -- Stocks finished an erratic session mixed Tuesday as higher commodity prices lifted energy and materials shares.

The meager advances were enough to push stocks to new 13-month highs, though more shares fell than rose at the New York Stock Exchange. The market had zigzagged for much of the day on mixed news from retailers and on industrial production.

A rebound in the dollar after three down days kept investors' appetite for stocks in check. A long-term weakening trend in the dollar since March has been lifting commodities prices and shares of U.S. exporters, which benefit from stronger foreign demand for their goods when the dollar falls. Record-low U.S. interest rates have also driven investors to seek higher returns in stocks and commodities, pushing share prices higher.

Higher oil prices lifted energy stocks, and trading volume remained light.

Traders focused on retailers' earnings reports for insight into one of the market's biggest worries: how much consumers are spending. Home Depot Inc., Saks Inc. and Target Corp. all reported better-than-expected third-quarter results but also said they remain cautious ahead of the holiday shopping season.

"Despite the dramatic rally in the stock market, we still see the consumer operating at recessionary levels," said Uri Landesman, chief equity strategist and senior portfolio manager at ING Investment Management in New York.

Better retail news pushed stocks higher Monday as a government report showed a rebound in overall sales in October. Investors are looking for signs that consumer spending, one of the biggest drivers of the U.S. economy, will recover during the holiday season.

A report on industrial production weighed on the market. The Fed said output at the nation's factories, mines and utilities rose 0.1 percent in October, less than the 0.4 percent predicted by economists polled by Thomson Reuters.

Meanwhile, signs of inflation remained muted, a positive signal for the economy. The Labor Department's Producer Price Index, which measures inflation at the wholesale level, rose less than expected in October. The 0.3 percent rise was smaller than economists' forecasts of 0.5 percent and followed a decline of 0.6 percent a month earlier.

"The market is saying inflation is not an issue," said Tim Courtney, chief investment officer at Oklahoma City-based Burns Advisory Group. He said that's a signal interest rates will remain low.

According to preliminary calculations, the Dow Jones industrial average rose 30.46, or 0.3 percent, to 10,437.42. It was the highest close for the Dow since Oct. 2, 2008, when it ended at 10,482.85.

The broader Standard & Poor's 500 index rose 1.02, or 0.1 percent, to 1,110.32, while the Nasdaq composite index rose 5.93, or 0.3 percent, to 2,203.78.

Falling stocks narrowly outpaced those that rose on the NYSE, where volume came to 972 million shares compared with 1.1 billion Monday.

Stocks jumped Monday on the bigger-than-expected rebound in retail sales in October. The Dow rose 136 points and the S&P closed above the 1,100 level for the first time in more than a year.

The Dow is up 725 points, or 7.5 percent, this month. That has some analysts saying the market has been rising too fast given problems like unemployment still facing the economy. For the year, the Dow is up 18.9 percent after rebounding from a 12-year low in March.

A bounce in crude helped energy stocks for a second day Tuesday. Crude oil rose 24 cents to settle at $79.14 per barrel on the New York Mercantile Exchange.

Gold climbed 20 cents to $1,139.40. Gains in other metals fanned gains of materials companies. Platinum jumped $17.90 to $1,459 an ounce.

Bond prices edged higher to push yields lower. The yield on the benchmark 10-year Treasury note slipped to 3.33 percent from 3.34 percent late Monday.

Home Depot fell 66 cents, or 2.4 percent, to $26.99, while Saks rose 26 cents, or 4.1 percent, to $5.67. Target fell $1.52, or 3 percent, to $48.77. Pacific Sunwear of California Inc. tumbled $1.13, or 22.6 percent, to $3.88 after its sales forecast fell short of expectations.

Meanwhile, Jacobs Engineering Inc. fell $6.61, or 14.5 percent, to $38.88 after the company's fourth-quarter earnings slid 31 percent and the company's forecast fell short of expectations.

The Russell 2000 index of smaller companies slipped 0.53, or 0.1 percent, to 602.34.

Overseas, Japan's Nikkei stock average fell 0.6 percent. Britain's FTSE 100 fell 0.7 percent, Germany's DAX index fell 0.5 percent, and France's CAC-40 lost 0.9 percent.