NYSE Dow Jones finished today at:

[bigdog]

Source: http://finance.yahoo.com

The stock market began August with a huge rally after reports from around the world revived investors' faith in the global recovery.

The Dow Jones industrial average rose 208 points Monday to its highest close in three months. All the major stock indexes rose about 2 percent.

The first day of the month brought a stream of news that reassured investors who have worried about a slowing of economic growth in the U.S., China and Europe. Manufacturing was a common thread:

-- The Institute for Supply Management's index of U.S. manufacturing activity during July was better than the market expected. Factory activity has now been expanding for a full year, one of the brightest spots in the U.S. economy.

-- A manufacturing report for the 16 countries that use the euro was revised higher for July and showed that the European economy is recovering faster than expected. Strong earnings reports from European banks also pleased the market, especially after the continent's rising debt problems helped trigger a spring plunge in stocks.

-- From China came news that industrial growth was moderate enough that Beijing isn't likely to take steps to slow that country's economy. Investors have periodically sold stocks on concerns that China's economy would slow and pull others down with it.

The NYSE DOW closed HIGHER +208.44 +1.99% on Monday August 2
Sym. Last......... ........Change..........
Dow 10,674.38 +208.44 +1.99%
Nasdaq 2,295.36 +40.66 +1.80%
S&P 500 1,125.86 +24.26 +2.20%
30-yr Bond 4.0670% +0.9000

NYSE Volume 4,829,248,000 (prior day 4,729,619,500)
Nasdaq Volume 1,974,891,750 (prior day 2,172,149,750)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,397.11 +139.09 +2.65%
DAX 6,292.13 +144.16 +2.34%
CAC 40 3,752.03 +108.89 +2.99%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 9,570.31 +33.01 +0.35%
Hang Seng 21,412.79 +382.98 +1.82%
Straits Times 3,025.04 +37.34 +1.25%

http://finance.yahoo.com/news/Stocks-start-off-August-with-apf-2489423678.html?x=0

Economic reports give stocks big start for August

Stocks start August with big rally after better-than-expected report on manufacturing

Stephen Bernard, AP Business Writer, On Monday August 2, 2010, 5:39 pm

NEW YORK (AP) -- The stock market began August with a huge rally after reports from around the world revived investors' faith in the global recovery.

The Dow Jones industrial average rose 208 points Monday to its highest close in three months. All the major stock indexes rose about 2 percent.

The first day of the month brought a stream of news that reassured investors who have worried about a slowing of economic growth in the U.S., China and Europe. Manufacturing was a common thread:

-- The Institute for Supply Management's index of U.S. manufacturing activity during July was better than the market expected. Factory activity has now been expanding for a full year, one of the brightest spots in the U.S. economy.

-- A manufacturing report for the 16 countries that use the euro was revised higher for July and showed that the European economy is recovering faster than expected. Strong earnings reports from European banks also pleased the market, especially after the continent's rising debt problems helped trigger a spring plunge in stocks.

-- From China came news that industrial growth was moderate enough that Beijing isn't likely to take steps to slow that country's economy. Investors have periodically sold stocks on concerns that China's economy would slow and pull others down with it.

Monday's news was encouraging after months of reports that showed the recovery was weakening. Those reports pulled the major stock indexes off their 2010 highs in late April and contributed to sharp swings in stock prices since then. The ISM report is significant because it is the first major reading of the economy from July, and investors are trying to determine just how strong the recovery will be in the second half of the year.

Some analysts were cautious even as stock prices jumped.

Alan Gayle, senior investment strategist for RidgeWorth Investments in Richmond, Va., said Monday's news, while good, showed only small changes in the economy.

"I do believe the pace of the (economic) expansion is slowing and I think that's going to weigh on the markets as we go through the second half of the year," he said.

Volume was light Monday as many investors, following the strategy they used during July, decided to stay out of the market until they feel more confident that its gains will hold. Many traders are also on vacation, and the drop in activity can exaggerate price moves.

The Dow rose 208.44, or 2 percent, to 10,674.38, its highest close since May 13, when it finished at 10,782.95. All 30 of the Dow stocks closed higher.

This was the Dow's best first trading day for the month of August since 1934. August in general is seen as a volatile month for stocks, largely because of the light volume.

The Standard & Poor's 500 index rose 24.26, or 2.2 percent, to 1,125.86, while the Nasdaq composite index rose 40.66, or 1.8 percent, to 2,295.36.

Six stocks rose for every one that fell on the New York Stock Exchange where volume came to a light 4.2 billion shares, down from Friday's 4.6 billion.

With stocks looking more appealing, bond prices fell because investors felt less need to seek the safety of government securities. The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.97 percent from 2.91 percent late Friday. Its yield is often used as a benchmark to set interest rates on mortgages and other consumer loans.

Stocks were up across the market. Industrial and materials stocks, including 3M Co. and General Electric Co., rose after the ISM report. Investors were encouraged in particular by several key components of the index. Production and new orders both improved, as did companies' willingness to hire new employees.

3M rose $1.87, or 2.2 percent, to $87.41, while GE rose 29 cents to $16.41.

Energy companies rose as the price of oil gained on expectations that a healthier economy will lift demand. ExxonMobil Corp. rose $2.26, or 3.8 percent, to $61.94, while Chevron Corp. jumped $1.59, or 2.1 percent, to $77.80.

Benchmark crude rose $2.39, or 3 percent, to settle at $81.34 a barrel on the New York Mercantile Exchange.

Financial stocks rose on the strong earnings reports from European-based banking giants HSBC and BNP Paribas, which convinced investors that the continent's financial sector is not being hurt by the debt problems.

HSBC shares trading in the U.S. rose $2.66, or 5.2 percent, to $53.74. Bank of America Corp. rose 40 cents, or 2.9 percent, to $14.44. JPMorgan Chase & Co. rose $1.36, or 3.4 percent, to $41.64.

Whether investors can hold on to their optimism will turn on the government's July employment report, which is being released on Friday.

"The public is more cautious," said Bruce McCain, chief investment strategist at Key Private Bank.

McCain said it would take a string of economic reports that consistently beat expectations to bring more investors back into the market. That makes this week especially important with plenty of reports, including the employment report and ISM's service sector report, due out later this week.

Britain's FTSE 100 gained 2.7 percent, Germany's DAX index rose 2.3 percent, and France's CAC-40 rose 3 percent. Japan's Nikkei stock average rose 0.4 percent and Hong Kong's Hang Seng jumped 1.8 percent.

 

[bigdog]

Source: http://finance.yahoo.com

The stock market put its big rally on hold Tuesday after disappointing earnings and economic reports reminded investors of the obstacles still facing the economy.

The Dow Jones industrial average fell 38 points after rising 208 Monday on brighter economic news. All the major indexes fell moderately.

Investors were unhappy with just about every major earnings or economic report Tuesday. Procter & Gamble Co. and Dow Chemical Co. reported earnings and revenue that fell short of forecasts. Consumer spending and income figures showed that people are still very cautious with their money. Factory orders fell in June, as did the number of homes that were under contract to be sold.


The NYSE DOW closed LOWER -38.00 -0.36% on Tuesday August 3
Sym. Last......... ........Change..........
Dow 10,636.38 -38.00 -0.36%
Nasdaq 2,283.52 -11.84 -0.52%
S&P 500 1,120.46 -5.40 -0.48%
30-yr Bond 4.0460% -0.2100

NYSE Volume 4,591,287,000 (prior day 4,829,248,000)
Nasdaq Volume 2,016,766,875 (prior day 1,974,891,750)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,396.48 -0.63 -0.01%
DAX 6,307.91 +15.78 +0.25%
CAC 40 3,747.51 -4.52 -0.12%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 9,694.01 +123.70 +1.29%
Hang Seng 21,457.66 +44.87 +0.21%
Straits Times 3,014.77 -10.27 -0.34%

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

Stocks fall after weak earnings, economic reports

Stocks fall moderately after disappointing earnings, consumer income and spending report

Stephen Bernard and Dave Carpenter, AP Business Writers, On Tuesday August 3, 2010, 5:40 pm

NEW YORK (AP) -- The stock market put its big rally on hold Tuesday after disappointing earnings and economic reports reminded investors of the obstacles still facing the economy.

The Dow Jones industrial average fell 38 points after rising 208 Monday on brighter economic news. All the major indexes fell moderately.

Investors were unhappy with just about every major earnings or economic report Tuesday. Procter & Gamble Co. and Dow Chemical Co. reported earnings and revenue that fell short of forecasts. Consumer spending and income figures showed that people are still very cautious with their money. Factory orders fell in June, as did the number of homes that were under contract to be sold.

The stream of bad news was a reminder that the recovery is going to be bumpy and slow. So, following the market's pattern of recent months, they gave back some of Monday's big gain, which was due in part to manufacturing news that was better than expected. Trading has been erratic since the spring amid the conflicting signals about the recovery, and many traders are quick to cash in any profits.

Traders are also uneasy ahead of the Labor Department's July employment report due out Friday. Consumers are not expected to significantly increase their spending until they feel more secure about their jobs.

Dan Cook, a Chicago-based senior market analyst with the brokerage firm IG Markets, said many traders stayed out of the market while they waited for the employment report.

"These severely choppy markets are scaring individual investors," he said. "There's no way we can get them back in the game without getting the employment numbers up."

The government is expected to report that employers cut 65,000 jobs last month, but that includes temporary census worker who were laid off. The unemployment rate is expected to have risen to 9.6 percent from June's 9.5 percent.

Investors are also uneasy about two other labor market reports this week. The payroll company ADP on Wednesday will release its count of the number of jobs created or lost at private employers in July. And on Thursday, the Labor Department issues its weekly report on the number of laid-off workers who filed for unemployment benefits for the first time.

The Dow fell 38.00, or 0.4 percent, to 10,636.38. The Standard & Poor's 500 index fell 5.40, or 0.5 percent, to 1,120.46, while the Nasdaq composite index fell 11.84, or 0.5 percent, to 2,283.52.

Losing stocks were ahead of gainers by 2 to 1 on the New York Stock Exchange, where consolidated volume came to a very light 4.1 billion shares, down from 4.2 billion on Monday. Light volume can intensify stocks' price swings.

Investors sought the safety of Treasury bonds, which pushed interest rates lower. Reports the Federal Reserve could start buying bonds again also added to their strength. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.92 percent from 2.97 percent late Monday.

Jack Stoltzfus, senior market strategist with Ticonderoga Securities, said the market is likely to vacillate for a while with investors hesitant to buy heavily amid ongoing concerns about the economy, not just in the U.S. but in other countries as well.

"It's a market that goes from worry to celebration pretty quickly," he said. "It is prone to surprises as well as prone to disappointments."

Procter & Gamble, the maker of Tide and Pampers, fell $2.12, or 3.4 percent, to $59.94. Dow Chemical dropped $2.83 or 10 percent, to $25.50.

Among the day's economic reports, the Commerce Department said personal income and spending were both unchanged in June after rising 0.3 percent and 0.1 percent respectively in May. The readings were also short of forecasts of economists polled by Thomson Reuters.

The department also said factory orders fell 1.2 percent in June, the second straight monthly drop and more than double the amount economists expected.

The National Association of Realtors said its index of pending home sales fell to its lowest level since it began keeping records in 2001. The index dropped 2.6 percent to a reading of 75.7. Economists had predicted that the index that measures the number of people who signed contracts to purchase homes would rise to 78.1.

A housing recovery is expected to be slow now that tax incentives for buyers have expired. And many would-be buyers are worried about their jobs.

Overseas, Britain's FTSE 100 fell less than 0.1 percent, Germany's DAX index rose 0.3 percent, and France's CAC-40 fell 0.1 percent. Japan's Nikkei stock average rose 1.3 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Reassuring signs on employment and growth in the service industry got the stock market back on an upward trajectory Wednesday.

Major indexes rose after payroll company ADP said private employers increased hiring last month and a service sector index rose unexpectedly in July. The Dow Jones industrial average gained 44 points.

Investors were relieved that the two reports provided no signs that the economy might be headed back into recession, even though growth might be sluggish. Traders have grappled with earnings and economic reports at odds with each other in recent weeks that provide a mixed picture about the pace of the recovery.

The NYSE DOW closed HIGHER +44.05 +0.41% on Wednesday August 4
Sym. Last......... ........Change..........
Dow 10,680.43 +44.05 +0.41%
Nasdaq 2,303.57 +20.05 +0.88%
S&P 500 1,127.24 +6.78 +0.61%
30-yr Bond 4.0710% +0.2500

NYSE Volume 4,583,274,500 (prior day 4,591,287,000)
Nasdaq Volume 2,044,558,000 (prior day 2,016,766,875)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,386.16 -10.32 -0.19%
DAX 6,331.33 +23.42 +0.37%
CAC 40 3,760.72 +8.69 +0.23%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 9,489.34 -204.67 -2.11%
Hang Seng 21,549.88 +92.22 +0.43%
Straits Times 3,001.87 -12.90 -0.43%

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

Stocks rise on jobs, service sector growth

Stocks climb after private employers added 42,000 jobs in July; service industry expands

Stephen Bernard, AP Business Writer, On Wednesday August 4, 2010, 5:40 pm

NEW YORK (AP) -- Reassuring signs on employment and growth in the service industry got the stock market back on an upward trajectory Wednesday.

Major indexes rose after payroll company ADP said private employers increased hiring last month and a service sector index rose unexpectedly in July. The Dow Jones industrial average gained 44 points.

Investors were relieved that the two reports provided no signs that the economy might be headed back into recession, even though growth might be sluggish. Traders have grappled with earnings and economic reports at odds with each other in recent weeks that provide a mixed picture about the pace of the recovery.

The latest batch of earnings were largely better than expected, continuing a trend that has been seen over the past four weeks. Broadcaster CBS Corp., video game maker Electronic Arts Inc., online travel site Priceline.com Inc. and Anadarko Petroleum Corp. all climbed. Whole Foods Market Inc. was one of the few to report disappointing results.

The market has been mainly climbing over the past month on encouraging earnings and corporate profit forecasts. The Dow has gained 10.3 percent since closing at its lowest level of the year on July 2.

Despite the upbeat earnings and better-than-expected economic reports, many investors remain tentative ahead of the Labor Department's monthly employment report due on Friday. Quincy Krosby, Prudential Financial's market strategist, said the market needs much more than one positive report on private sector employment to gain confidence that the pace of recovery will speed up.

"ADP was positive, but when all is said and done, the market needs stronger confirmation to grind higher," Krosby said. Until then, stocks are likely to trade in a tight range, she said.

The Dow Jones industrial average rose 44.05, or 0.4 percent, to 10,680.43. The Standard & Poor's 500 index rose 6.78, or 0.6 percent, to 1,127.24, while the Nasdaq composite index rose 20.05, or 0.9 percent, to 2,303.57.

The Dow's rise Wednesday more than erased a 38-point loss from a day earlier when reports on personal income and spending and factory orders fell short of expectations.

Nearly three stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to a light 4.1 billion shares, comparable with the day before.

Trading volume has been unusually low in recent days, indicating that the few people actively participating in the market are mainly professional traders, said Bob Phillips, managing partner at Spectrum Management Group. Those types of investors typically trade quickly on the latest piece of news to be released, Phillips said. That adds to market volatility.

The confirmation investors are looking for in the jobs market could come in the next two days when the Labor Department releases its weekly report on initial claims for jobless benefits Thursday and its monthly employment report Friday.

Wednesday's ADP report is often seen as an early indicator of what the more important monthly jobs report from the Labor Department will look like. That report is broader and includes government as well as private sector employment. It's expected to show private employers added 90,000 jobs last month and the unemployment rate rose to 9.6 percent from 9.5 percent in June.

ADP said private employers added 42,000 jobs last month, slightly better the forecasts of economists polled by Thomson Reuters.

The ISM's service sector index rose to 54.3 in July from 53.8 in June. That's better than forecasts and indicates expansion for the largest component of the country's economy.

The ISM report was especially encouraging because the services sector accounts for the majority of employment in the country. It also comes two days after ISM's better-than-expected report on the manufacturing sector sparked big gains in the market.

Paul Zemsky, head of asset allocation at ING Investment Management, said economic reports are starting to fall more in line with expectations after regularly falling short of forecasts throughout the second quarter.

"The negative data we saw late in the second quarter caused people to lower their expectations," Zemsky said. The more modest expectations investors now have could give the market room to move higher, Zemsky said.

Investors sold Treasurys to move into stocks, sending interest rates in the bond market higher. The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.96 percent from 2.92 percent late Tuesday. That yield helps set rates on mortgages and other consumer loans.

Priceline.com surged $50.63, or 22 percent, to $281.30. CBS rose 63 cents, or 4.2 percent, to $15.64. Electronic Arts jumped $1.20, or 7.4 percent, to $17.38, while Anadarko rose $2.28, or 4.3 percent, to $55.42. Whole Foods fell $3.33, or 8.4 percent, to $36.16.

Overseas, Japan's Nikkei stock average fell 2.1 percent. A stronger yen hurt Japanese exporters, driving down stocks prices. The yen hit a nine-month low against the dollar.

Britain's FTSE 100 fell 0.2 percent, Germany's DAX index rose 0.4 percent, and France's CAC-40 rose 0.4 percent.

 

[bigdog]

Source: http://finance.yahoo.com

A surprisingly poor signal on the jobs market sent stocks slightly lower Thursday as investors remained worried about a lack of hiring.

The modest drop came after the Labor Department said first-time claims for unemployment benefits rose unexpectedly last week.

Investors tried to muster a late-day rally, but there wasn't enough momentum to push the Dow Jones industrial average back into positive territory. The Dow closed down 5 points after dropping as much as 68 points earlier in the day. Broader indexes also fell modestly.

The NYSE DOW closed LOWER +44.05 +0.41% on Thursday August 5
Sym. Last......... ........Change..........
Dow 10,674.98 -5.45 -0.05%
Nasdaq 2,293.06 -10.51 -0.46%
S&P 500 1,125.81 -1.43 -0.13%
30-yr Bond 4.0650% -0.0600

NYSE Volume 4,090,589,750 (prior day 4,583,274,500)
Nasdaq Volume 1,786,392,250 (prior day 2,044,558,000)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,365.78 -20.38 -0.38%
DAX 6,333.58 +2.25 +0.04%
CAC 40 3,764.19 +3.47 +0.09%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 9,653.92 +164.58 +1.73%
Hang Seng 21,551.72 +1.84 +0.01%
Straits Times 3,007.34 +5.47 +0.18%

http://finance.yahoo.com/news/Stock...6.html?x=0&sec=topStories&pos=2&asset=&ccode=

Stocks fall after spike in jobless benefits claims

Stocks drop after surprise jump in weekly first-time claims for unemployment benefits

Stephen Bernard, AP Business Writer, On Thursday August 5, 2010, 4:30 pm

NEW YORK (AP) -- A surprisingly poor signal on the jobs market sent stocks slightly lower Thursday as investors remained worried about a lack of hiring.

The modest drop came after the Labor Department said first-time claims for unemployment benefits rose unexpectedly last week.

Investors tried to muster a late-day rally, but there wasn't enough momentum to push the Dow Jones industrial average back into positive territory. The Dow closed down 5 points after dropping as much as 68 points earlier in the day. Broader indexes also fell modestly.

Trading volume on the New York Stock Exchange fell to its second-lowest level of the year as many traders avoid the market altogether.

The Labor Department said initial claims for unemployment benefits jumped to 479,000 last week from a 460,000 a week earlier. Economists polled by Thomson Reuters had forecast new claims would fall modestly.

The high unemployment rate in the U.S. remains one of the biggest worries for investors. The surprise jump in claims last week suggests that employers are still reluctant to create jobs, which could keep a damper on economic growth the coming months.

"The trend is going exactly in the wrong direction," said Phil Orlando, chief equity market strategist at Federated Investors. However, Orlando cautioned that layoffs of temporary census workers might have skewed results somewhat, and that's why the market didn't fall that much.

Traders will get a stronger reading on the jobs market Friday when the government releases its closely watched monthly tally of payrolls and the unemployment rate. Investors have been getting mixed signals on the economy in recent weeks, and sent stocks higher on Wednesday after payroll company ADP reported that private employers slightly increased hiring last month.

In other news, monthly retail sales reports showed shoppers remain skittish about spending as hiring remains scarce. Costco Wholesale Corp. and Limited Brands Inc. both reported big jumps in July sales, but that was compared with weak results a year ago.

Department store J.C. Penney Co. reported a surprise drop in July sales and said profit would fall at the low end of its outlook. Teen retailers like The Buckle Inc. and The Wet Seal Inc. continue to struggle as consumers increase their savings rate.

"Without job creation, you can't get consumer confidence up and spending up," said Joe Gordon, founder and managing partner of Gordon Asset Management. "People are very cautious."

The Dow fell 5.45, or 0.1 percent, to 10,674.98. The Standard & Poor's 500 index fell 1.43, or 0.1 percent, to 1,125.81, while the Nasdaq composite index fell 10.51, or 0.5 percent, to 2,293.06.

About four stocks fell for every three that rose on the New York Stock Exchange, where volume came to 875.6 million shares, only about two-thirds the average of 1.34 billion traded daily over the past 200 days.

Thursday's jobless claims report added to a murky picture on the economy heading into the monthly employment survey. The Labor Department is expected to say private employers hired 90,000 workers in July, a slight increase from the 83,000 hired in June. But because of government layoffs tied to cutting temporary census jobs, the unemployment rate is expected to rise to 9.6 percent from 9.5 percent.

Tim Speiss, chairman of Eisner LLP's Personal Wealth Advisors practice, said Friday's report doesn't have blow away expectations to reassure investors and ease concerns about slowing growth.

"Coming close to expectations will be sufficient," Speiss said.

Stocks have alternated between gains and losses all week as economic reports vacillate between topping expectations and falling short of forecasts.

Limited Brands rose 29 cents to $26.33, while Costco shares fell 94 cents to $56.46. J.C. Penney dropped $1.84, or 7.7 percent, to $22.12. Wet Seal dipped a penny to $3.32 and The Buckle fell $1.10, or 4 percent, to $26.11.

Bond prices climbed as investors opted for the safety of Treasurys. The yield on the 10-year Treasury note, which moves opposite to its price, fell to 2.91 percent from 2.96 percent late Wednesday. Its yield helps set interest rates on mortgages and other consumer loans.

Treasury yields are hovering near levels not seen since April 2009 when the stock market was just beginning a yearlong rally after touching 12-year lows.

Overseas, Britain's FTSE 100 fell 0.4 percent, Germany's DAX index rose less than 0.1 percent, and France's CAC-40 rose 0.1 percent. Japan's Nikkei stock average rose 1.7 percent.

 

[bigdog]

Source: http://finance.yahoo.com

The Dow ended up 187.62 or 1.79% for the week, logging 3-consecutive weeks of gains

The S&P 500 ended up 24.04 or 1.82% for the week, its first weekly increase since 7/23 when it rose 3.55%

The NASDAQ Composite ended up 33.77 or 1.5% for the week, its first weekly increase since 7/23 when it rose 4.15%

Safety first. That appears to be the new motto for investors trying to figure out how bad the emerging slowdown in U.S. economic growth is going to be.

A disappointing jobs report sent investors out of stocks and the dollar Friday and into assets perceived as being safer. Foreign currencies and gold rose, as did bond prices, which sent interest rates lower. The yield on the two-year Treasury note hit a record low.

Stocks sank for most of the day but pared their losses in late afternoon trading. The Dow Jones industrials ended down 21 points after being down as much as 160 earlier in the day.

The NYSE DOW closed LOWER -21.42 -0.20% on Friday August 6
Sym. Last......... ........Change..........
Dow 10,653.56 -21.42 -0.20%
Nasdaq 2,288.47 -4.59 -0.20%
S&P 500 1,121.64 -4.17 -0.37%
30-yr Bond 4.0020% -0.6300

NYSE Volume 4,456,732,000 (prior day 4,090,589,750)
Nasdaq Volume 1,883,897,875 (prior day 1,786,392,250)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,332.39 -33.39 -0.62%
DAX 6,259.63 -73.95 -1.17%
CAC 40 3,716.05 -48.14 -1.28%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 9,642.12 -11.80 -0.12%
Hang Seng 21,678.80 +127.08 +0.59%
Straits Times 2,995.06 -11.70 -0.39%

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

Stocks, dollar fall after weak US jobs report

Stocks and dollar tumble as weak employment report worsens US outlook; Treasurys gain

Stephen Bernard, AP Business Writer, On Friday August 6, 2010, 5:44 pm EDT

NEW YORK (AP) -- Safety first. That appears to be the new motto for investors trying to figure out how bad the emerging slowdown in U.S. economic growth is going to be.

A disappointing jobs report sent investors out of stocks and the dollar Friday and into assets perceived as being safer. Foreign currencies and gold rose, as did bond prices, which sent interest rates lower. The yield on the two-year Treasury note hit a record low.

Stocks sank for most of the day but pared their losses in late afternoon trading. The Dow Jones industrials ended down 21 points after being down as much as 160 earlier in the day.

A closely watched monthly employment survey from the Labor Department confirmed what investors have been fearing: The U.S. economic recovery is weakening. Private job growth was just 71,000 in July. That's below what analysts had hoped for and far shy of the level that would be needed to reduce the unemployment rate, which remained steady at 9.5 percent.

It was latest sign that a slowdown in U.S. growth is the real problem with the global economy, not the European debt crisis that had financial markets in a tizzy for much of the spring.

U.S. stocks fell on the report, sapping a strong upward trend from the past four weeks. The yield on the two-year Treasury reached a record low of 0.50 percent, and the yield on the 10-year Treasury is at its lowest level since April 2009. The dollar dropped to a 15-year low against the Japanese yen.

Stocks have been volatile since reaching their highest level of the year in late April. They turned lower throughout May and part of June as worries about Europe's debt situation peaked. In July, a wave of strong earnings from major U.S. companies like Caterpillar Inc. and UPS Inc. propelled stocks higher. The Dow Jones industrial average climbed 7.1 percent last month, its strongest one-month gain in a year.

It's not yet clear whether Friday's downturn was a sign of more trouble to come or just a temporary setback on a generally upward trajectory for the market. If stocks are going to get more fuel to advance, they will have to get it from someplace other than earnings since the corporate reporting season is winding down. That leaves the focus on the economy, and the news there has been discouraging. Housing, retail sales, personal income and now jobs reports have all been downbeat.

The monthly jobs report from the Labor Department is a key indicator on the health of the economy and is closely watched by investors and economists. Job creation has a huge effect on the rest of the economy, influencing how much people spend on cars, clothes, travel and even homes. The latest report confirmed that many employers are still reluctant to hire.

"The tension will play out for the rest of the year between corporate earnings and employment," said Sarah Hunt, a research analyst at Alpine Funds. At some point, Hunt said, earnings will have to slow to match the weaker economy or employment will have to pick up to help maintain strong earnings.

On top of that, Europe's economy is showing stronger signs of life than was expected just a few months ago, when mounting government debt there was hurting stocks worldwide. A healthier Europe gives investors another place to stash money if the U.S. economy remains weak.

The euro has recovered nearly all of its losses from the worries over European government debt that flared up earlier this year. The euro is now at a four-month high against the dollar, after touching a four-year low in early June.

The Dow Jones industrial average closed down 21.42 points, or 0.2 percent, at 10,653.56, having been down as much as 160 points earlier.

The Standard & Poor's 500 index fell 4.17, or 0.4 percent, to 1,121.64, while the Nasdaq composite index fell 4.59, or 0.2 percent, to 2,288.47.

Five stocks fell for every two that rose on the New York Stock Exchange, where consolidated volume came to a very light 3.9 billion shares. Trading volume has been extremely low in recent days, a sign that many investors are simply not participating in the market.

While stocks take a turn lower, bond investors have already been anticipating that the economy was headed for trouble. Even while the stock market was surging ahead in early June and then again for most of July, yields on Treasury notes have been heading steadily lower since early April as more money flows into ultrasafe Treasurys.

Michael Strauss, chief economist and market strategist at Commonfund, said investors in the bond and stock markets are lining up on opposite sides of debate about the strength of the economy.

"The bond market is still betting this is a double-dip" Strauss said, referring to the term for two recessions occurring close to each other. "The stock market is betting this is a soft landing," with just modest growth of about 2 percent to 3 percent over the next few quarters, he said.

The yield on the 10-year note, which helps set interest rates on mortgages and other consumer loans, fell to 2.82 percent from 2.91 percent late Thursday. That puts it in the range last reached in April 2009 when the stock market was just beginning to bounce back from a 12-year low.

The latest sign of weakness in the labor market brought heightened attention to the Federal Reserve's meeting next week. The Fed let several economic stimulus programs expire earlier this year such as purchasing mortgage-backed securities, and investors are now wondering whether the central bank will consider new steps to encourage lending again.

Stephen Wood, chief market strategist for Russell Investments, said the market is already pricing in the expectation the Fed will start buying Treasury bonds. Exactly when that happens, though, is still uncertain.

"I don't think they're going to pull the trigger" next week, Wood said. "But they're going to make it crystal clear if data deteriorates they're ready to pull the trigger."

Gold, which often moves in the opposite direction of the dollar, rose $6 to $1,205.30 an ounce. It's the first time gold prices have closed above $1,200 since July 15.

 

[bigdog]

Source: http://finance.yahoo.com

Investors are getting optimistic that the Federal Reserve will restart some of its economic stimulus programs.

Stocks closed moderately higher Monday, a sign that many traders expect the Fed to take steps to put some energy back into the recovery. The Dow Jones industrial average rose 45 points.

Volume on the New York Stock Exchange fell to its lowest level of the year as many investors stayed out of the market while they waited for the Fed's decision. Many have been avoiding big investment decisions for much of the summer because they have no sense of where the economy is headed.

The NYSE DOW closed HIGHER +45.19 points +0.42% on Monday August 9
Sym. Last......... ........Change..........
Dow 10,698.75 +45.19 +0.42%
Nasdaq 2,305.69 +17.22 +0.75%
S&P 500 1,127.79 +6.15 +0.55%
30-yr Bond 4.0070% +0.0500

NYSE Volume 3,597,500,000 (prior day 4,456,732,000)
Nasdaq Volume 1,635,405,000 (prior day 1,883,897,875)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,410.52 +78.13 +1.47%
DAX 6,351.60 +91.97 +1.47%
CAC 40 3,777.37 +61.32 +1.65%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 9,572.49 -69.63 -0.72%
Hang Seng 21,801.59 +122.79 +0.57%
Straits Times 2,995.06 -11.70 -0.39%

http://finance.yahoo.com/news/Stock...8.html?x=0&sec=topStories&pos=5&asset=&ccode=

Stocks rise as investors await Fed meeting outcome

Stocks rise moderately as investors wait to see if Fed will restart economic stimulus programs

Stephen Bernard, AP Business Writer, On Monday August 9, 2010, 5:39 pm

NEW YORK (AP) -- Investors are getting optimistic that the Federal Reserve will restart some of its economic stimulus programs.

Stocks closed moderately higher Monday, a sign that many traders expect the Fed to take steps to put some energy back into the recovery. The Dow Jones industrial average rose 45 points.

Volume on the New York Stock Exchange fell to its lowest level of the year as many investors stayed out of the market while they waited for the Fed's decision. Many have been avoiding big investment decisions for much of the summer because they have no sense of where the economy is headed.

The Fed's assessment of the economy, and any plans to resume its stimulus measures, will be issued after its meeting ends Tuesday afternoon.

"The market loves stimulus. The market wants stimulus," said Joe Saluzzi, co-head of equity trading at Themis Trading LLC in Chatham, N.J.

The Fed will likely leave its federal funds rate near zero, but the central bank could signal plans to restart some programs such as its purchase of mortgage-backed securities or buy Treasury bonds. The central bank's programs ended earlier this year when it appeared the recovery was proceeding well.

"The Fed has a lot of tools in its tool shed," said Larry Rosenthal, president of Financial Planning Services in Manassas, Va. "They have to bring buyers back into the market; they have to bring consumption back into the market."

The recovery has stalled as consumers, watching the labor market stagnate, have been reluctant to spend. Meanwhile, bank lending levels have remained low, the result of caution on the part of borrowers as well as bankers.

Still, Rosenthal said any moves would also have to ensure that inflation doesn't become a problem too quickly. The Fed could say Tuesday that it is ready to start new programs to encourage bank lending even if it doesn't implement them immediately.

Hewlett-Packard Co. shares managed a small gain after its CEO was forced to resign Friday.

The Dow rose 45.19, or 0.4 percent, to 10,698.75. The Standard & Poor's 500 index rose 6.15, or 0.6 percent, to 1,127.79, and the Nasdaq composite index rose 17.22, or 0.8 percent, to 2,305.69.

Advancing stocks were ahead of losers by almost 3 to 1 on New York Stock Exchange, where consolidated volume, which includes shares traded on other exchanges, came in at 3.3 billion shares. On Friday, volume was an already extremely light 3.9 billion shares.

Bond prices traded in a narrow range Monday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.83 percent from 2.82 percent late Friday.

Hank Smith, chief investment officer at Haverford Investments in Radnor, Pa., said the Fed has to be careful with how it phrases its assessment of the economy and any plans to restart stimulus programs. While investors know that the economy is weaker than it was earlier this year, bad news from the Fed could lead to further problems, starting with a drop in the stock market.

"It might be a self-fulfilling prophecy," Smith said.

European markets jumped after German exports reached their highest levels since late 2008, indicating the country's economy is recovering much faster than previously thought. There were concerns this spring that mounting government debt in countries like Greece, Spain and Portugal would stagnate Europe's economy. The German exports report was the latest data from the continent that showed the pace of growth is speeding up rather than slowing down.

Germany's DAX index gained 1.5 percent, Britain's FTSE 100 rose 1.5 percent, and France's CAC-40 rose 1.7 percent. Japan's Nikkei stock average fell 0.7 percent.

Hewlett-Packard CEO Mark Hurd was forced to resign after a sexual harassment claim led to the discovery he falsified expense reports. HP shares rose 8 cents to $40.70 after falling sharply in early trading.

McDonald's Corp. rose after it reported strong July sales, including its biggest jump in U.S. sales in more than a year. The stock rose $1.18 to $72.92.

 

[bigdog]

Source: http://finance.yahoo.com

The stock market had a half-hearted comeback Tuesday after the Federal Reserve announced it would take small steps to stimulate the economy.

The Dow Jones industrial average, down about 100 points before the Fed announced its plans, recovered to a loss of 54. The other major market indexes also bounced off of their lows. But investors were still cautious: The Dow was able to briefly show a gain, but fell back again as traders recognized that the Fed's moves, while welcome, would be small and won't cure the economy's problems.

Losing stocks were ahead of advancers on the New York Stock Exchange by almost 3 to 1. And stocks considered safe bets in a weak economy, including health care and consumer products companies, were among the gainers.

The NYSE DOW closed LOWER -54.50 points -0.51% on Tuesday August 10
Sym. Last......... ........Change..........
Dow 10,644.25 -54.50 -0.51%
Nasdaq 2,277.17 -28.52 -1.24%
S&P 500 1,121.06 -6.73 -0.60%
30-yr Bond 4.0300% +0.2300

NYSE Volume 4,550,863,000 (prior day 3,597,500,000)
Nasdaq Volume 2,056,754,250 (prior day 1,635,405,000)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,376.41 -34.11 -0.63%
DAX 6,286.25 -65.35 -1.03%
CAC 40 3,730.58 -46.79 -1.24%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 9,551.05 -21.44 -0.22%
Hang Seng 21,473.60 -327.99 -1.50%
Straits Times 2,984.29 -10.77 -0.36%

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

Stocks cut losses on Fed's economic stimulus plans

Stocks cut losses after Fed announces plans to buy government debt to stimulate economy

Stephen Bernard, AP Business Writer, On Tuesday August 10, 2010, 5:59 pm

NEW YORK (AP) -- The stock market had a half-hearted comeback Tuesday after the Federal Reserve announced it would take small steps to stimulate the economy.

The Dow Jones industrial average, down about 100 points before the Fed announced its plans, recovered to a loss of 54. The other major market indexes also bounced off of their lows. But investors were still cautious: The Dow was able to briefly show a gain, but fell back again as traders recognized that the Fed's moves, while welcome, would be small and won't cure the economy's problems.

Losing stocks were ahead of advancers on the New York Stock Exchange by almost 3 to 1. And stocks considered safe bets in a weak economy, including health care and consumer products companies, were among the gainers.

The Fed, in a statement issued after a one-day policy meeting, said it will use money from its investments in mortgage securities to buy government debt on a small scale. Because rates on bonds and other debt fall as their prices rise, the Fed's purchases should help send long term rates on mortgages and corporate debt slightly lower. And the Fed hopes, stimulate lending to consumers and businesses.

News that the Fed would be buying government debt, and in the process reduce the supply of Treasury issues on the market, sent Treasurys higher. The yield on the government's 10-year note, which moves in the opposite direction from its price, fell to 2.75 percent from 2.82 percent before the announcement. The yield is used to help set rates on mortgages and other consumer loans.

Analysts said that while investors were hoping the Fed would take some steps to help the economy, the market recognizes the limitations of the central bank's plans.

"We had an hour or so of rally, but then it backed off a bit," said Dan Cook, Chicago-based senior market analyst with brokerage firm IG Markets. "Traders realized it's not a game changer. It's not going to pump up the market."

The purchases of debt the Fed plans are known as "quantitative easing." Economists estimate that the Fed will have about $10 billion a month to buy the debt. That is a small amount of money compared to the economy's needs.

The Fed said it would use the proceeds it earns on mortgage bonds to buy two-year and 10-year Treasurys, and that it would buy an equal amount of government debt as existing bonds mature. The net effect is to keep its $2.3 trillion balance sheet steady, while shifting its holdings into more government debt. The Fed had hoped to roll back its debt holdings as the economy improved.

In 2009 and early 2010, the Fed bought $1.25 trillion in mortgage securities, $175 billion in mortgage debt from Fannie Mae and Freddie Mac, and $300 billion in government debt. In March, the Fed stopped buying new mortgage securities and Fannie and Freddie debt because the economy was clearly recovering.

Some analysts said the Fed is moving slowly in its current stimulus plans so investors don't get the sense that the economy is more troubled than they have thought.

"There is only so much the Fed can do and right now it wanted to take baby steps in trying to provide additional liquidity without roiling the markets and scaring investors," Michael Sheldon, chief market strategist at RDM Financial Group in Westport, Conn.

And some analysts are skeptical. Cook of IG Markets said that even if the Fed starts adding to its holdings of government debt, that would do little to boost the recovery. He noted that the Fed's purchases last year pushed interest rates lower and fed the stock market's big rally. But it didn't lead to more loans for small businesses, a big source of new jobs.

"They can continue to buy Treasurys to keep borrowing costs down. But if the people who need credit don't get it, it's like knocking $50,000 off a Lamborghini. You're still not going to be able to afford it," Cook said.

The Dow closed down 54.50, or 0.5 percent, at 10,644.25 after the Fed's mid-afternoon statement. The Standard & Poor's 500 index fell 6.73, or 0.6 percent, to 1,121.06. The Nasdaq composite index closed down 28.52, or 1.2 percent, at 2,277.17.

NYSE consolidated volume, which includes shares traded on other exchanges, came to a light 4 billion shares, up from 3.3 billion Monday. Volume has been light all summer because investors don't feel secure about the economy or the market. And the Fed's move didn't change their view.

Stock and bond investors looked past the Fed's assessment of the economy that was included in the statement although it was bleaker than the central bank's view in June. The Fed said, "the pace of economic recovery is likely to be more modest in the near term than had been anticipated."

The dollar, which is hurt by a weak economy, fell after the Fed statement was released. The Fed indicated that interest rates will remain at extremely low levels for an extended period. And currencies tend to fall on low rates.

Stocks that traders call defensive, or that are expected to hold up even in a weak economy, were the market's best performers after the Fed decision. That was another sign that investors weren't euphoric about the Fed's moves.

Health care stocks were among the market leaders. Merck & Co. rose 41 cents, or 1.2 percent, to $35.77. Eli Lilly & Co. rose 81 cents, or 2.2 percent, to $37.77.

Consumer products makers also rose. Colgate Palmolive rose $1.70, or 2.2 percent, to $77.97, while Procter & Gamble Co. rose 40 cents, or 0.7 percent, to $60.78.

Overseas, Hong Kong's Hang Seng index fell 1.5 percent, while Japan's Nikkei stock average fell 0.2 percent. Britain's FTSE 100 fell 0.6 percent, Germany's DAX index dropped 1 percent, and France's CAC-40 fell 1.2 percent. All the markets were closed before the Fed announcement.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks and interest rates fell sharply Wednesday as more bad news chipped away at investors' view of the economy.

The Dow Jones industrial average fell 265 points and all the major indexes fell more than 2 percent. The Dow has now fallen four days out of five, and it has lost almost 320 points in just the past two days. Meanwhile, the yield on the Treasury's 10-year note fell to its lowest level since March 2009 as investors avoided stocks and sought the safety of government securities.

Only 442 stocks rose on the New York Stock Exchange, while 2,627 fell, a sign that investors expect all businesses to suffer if the economy continues to weaken.

Investors' gloom deepened a day after the Federal Reserve said it would begin buying government bonds as a way to stimulate the economy. News of slower industrial growth in China and a disappointing economic indicator in Japan helped send stocks plunging first in Asia, then in Europe.

The NYSE DOW closed LOWER -265.42 points -2.49% on Wednesday August 11
Sym. Last......... ........Change..........
Dow 10,378.83 -265.42 -2.49%
Nasdaq 2,208.63 -68.54 -3.01%
S&P 500 1,089.47 -31.59 -2.82%
30-yr Bond 3.9210% -1.0900

NYSE Volume 5,281,288,000 (prior day 4,550,863,000)
Nasdaq Volume 2,319,323,000 (prior day 2,056,754,250)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,245.21 -131.20 -2.44%
DAX 6,154.07 -132.18 -2.10%
CAC 40 3,628.29 -102.29 -2.74%

Asia
Symbol...... Last...... .....Change
Nikkei 225 9,292.85 -258.20 -2.70%
Hang Seng 21,294.54 -179.06 -0.83%
Straits Times 2,949.26 -35.03 -1.17%

http://finance.yahoo.com/news/Stocks-fall-sharply-as-apf-3511699678.html?x=0

Stocks fall sharply as investors' gloom grows

Stocks, interest rates fall sharply as investors' gloom about the weakening economy grows

Stephen Bernard, AP Business Writer, On Wednesday August 11, 2010, 5:56 pm

NEW YORK (AP) -- Stocks and interest rates fell sharply Wednesday as more bad news chipped away at investors' view of the economy.

The Dow Jones industrial average fell 265 points and all the major indexes fell more than 2 percent. The Dow has now fallen four days out of five, and it has lost almost 320 points in just the past two days. Meanwhile, the yield on the Treasury's 10-year note fell to its lowest level since March 2009 as investors avoided stocks and sought the safety of government securities.

Only 442 stocks rose on the New York Stock Exchange, while 2,627 fell, a sign that investors expect all businesses to suffer if the economy continues to weaken.

Investors' gloom deepened a day after the Federal Reserve said it would begin buying government bonds as a way to stimulate the economy. News of slower industrial growth in China and a disappointing economic indicator in Japan helped send stocks plunging first in Asia, then in Europe.

The economic news in the U.S. was also troubling. The Commerce Department said the trade deficit widened in June to its highest level in 20 months as exports dipped. Falling exports mean U.S. manufacturing could be slowing down. And early this year, manufacturing showed the most consistent signs of recovery.

Investors got more bad news after trading ended. Cisco Systems Inc.'s revenue in the company's latest quarter fell short of analysts' expectations. Companies' revenue shortfalls have sent stocks falling over the past month, and Cisco's stock slid 8 percent in after-hours trading. Other stocks fell as well, and the report was likely to touch off more selling across the market on Thursday.

Stock traders tend to buy and sell based on their expectations for what business will be like in six to nine months. The problem is that economic data has been so muddled lately that investors have no sense of whether the recovery will hold. In its economic assessment statement on Tuesday, the Fed was still talking about a recovery, although the central bank said it would more modest than forecast in June.

"Uncertainty, uncertainty, uncertainty," was the way that Javier Perez-Santalla, managing director for futures and foreign exchange at the institutional brokerage firm Dinosaur Group, described the mood in the market.

"Everyone is scratching their heads, saying 'which way?'" Perez-Santalla said. "We're kind of stuck in this no man's land, where we're damned if we do, damned if we don't."

The Fed said Tuesday it will start buying government bonds with money it gets from the maturing mortgage-backed bonds that it bought during the recession. The goal is to try to cut interest rates on mortgages and corporate loans and in turn increase lending and help the economy grow faster.

But the Fed's moves were expected to be quite small in comparison to what the economy needs. And many investors were selling because the debt purchases would have only a limited impact on the economy.

The Dow dropped 265.42, or 2.5 percent, to 10,378.83, its largest slide since it fell 268.22 on June 29.

The Standard & Poor's 500 index fell 31.59, or 2.8 percent, to 1,089.47. The S&P 500 slipped below 1,100, a key psychological level. Falling and holding below that level could lead to more selling as computer-driven trading sets in.

The Nasdaq composite index fell 68.54, or 3 percent, to 2,208.63. The Nasdaq tends to have the biggest losses when stocks are falling sharply because many of its component companies are smaller businesses that struggle the most in a weak economy.

Consolidated volume was fairly light on the NYSE at 4.6 billion shares, up from Tuesday's 4 billion. Trading has been particularly slow, even by summer standards as uncertainty about the economy led many investors to exit the market completely. Low volume also can exaggerate swings in the market.

The Chicago Board Options Exchange's Volatility Index rose 3.02, or 13.5 percent, to 25.39. The VIX is known as the market's fear gauge because a rise signals traders are expecting more drops in stocks. It is still well below the record of 89.5 it reached during the height of the financial crisis in 2008.

The yield on the 10-year Treasury note, which moves opposite its price, fell as low as 2.68 percent before edging up to 2.69 percent late Wednesday. That was down sharply from late Tuesday's 2.77 percent. Interest rates are often set based on the yield of 10-year Treasurys.

The 10-year yield is at levels not touched since late March 2009 just weeks after recession worries sent the stock market to a 12-year low. Investors were willing to take a lower return from Treasurys in exchange for the safety of government debt.

Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati, described the bond market as "saying major problems are still out there."

Britain's FTSE 100 fell 2.4 percent, Germany's DAX index dropped 2.1 percent, and France's CAC-40 fell 2.7 percent. Japan's Nikkei stock average dropped 2.7 percent.

Although recent earnings report were overall strong, the market has been rattled when companies' revenue has fallen short of expectations. Their concern is that companies are selling less because consumers aren't buying.

Cisco's revenue was slightly off of forecasts, but that was enough to send the company's stock down $1.90, or 8 percent, to $21.83 in after-hours trading. During regular trading, it was down 58 cents.

Stocks will struggle to rally further until some of the uncertainty is removed about the strength of the economy and how government policy could affect companies, said Duncan Richardson, chief equity investment officer of Eaton Vance.

"What's lacking is confidence and no one can have confidence in an uncertain world," Richardson said. There has been a "huge reluctance to reinvest in businesses because of uncertainty."

Companies are hesitant to hire new workers, buy new equipment or acquire new businesses to grow operations until there is more confidence, he said.

 

[bigdog]

Source: http://finance.yahoo.com

Technology companies led the stock market to its third straight loss Thursday after an earnings report from Cisco Systems raised more questions about the economy.

A weekly employment report that was weaker than expected also made investors uneasy about the strength of the economic recovery. The Dow Jones industrial average fell 58 points and now has an almost 380-point loss the past three days. The Dow has also fallen five of the last six days. The Nasdaq composite index had a steeper loss in percentage terms, a reflection of the drop in tech stocks.

Cisco Systems Inc. released earnings after the market closed Wednesday. Cisco is seen by many traders and analysts as an indicator of the economy's health, and it disappointed investors in several ways. The computer networking company's revenue for its fiscal fourth quarter and forecast for revenue fell short of analysts' expectations. Investors are focused on the connection between revenue and the economy. If revenue is weak, that could be a sign that consumers are reluctant to spend and could start to affect companies' profits.

The NYSE DOW closed LOWER -58.88 points -0.57% on Thursday August 12
Sym. Last......... ........Change..........
Dow 10,319.95 -58.88 -0.57%
Nasdaq 2,190.27 -18.36 -0.83%
S&P 500 1,083.61 -5.86 -0.54%
30-yr Bond 3.9310% +0.1000

NYSE Volume 4,563,876,000 (prior day 5,281,288,000)
Nasdaq Volume 2,211,513,250 (prior day 2,319,323,000)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,266.06 +20.85 +0.40%
DAX 6,135.17 -18.90 -0.31%
CAC 40 3,621.07 -7.22 -0.20%

Asia
Symbol...... Last...... .....Change
Nikkei 225 9,212.59 -80.26 -0.86%
Hang Seng 21,105.71 -188.83 -0.89%
Straits Times 2,927.04 -22.22 -0.75%

http://finance.yahoo.com/news/Stocks-fall-after-Cisco-apf-4294131936.html?x=0

Stocks fall after Cisco earnings, jobless data

Stocks extend losses after disappointing unemployment data, revenue figures from Cisco

Joyce M. Rosenberg, AP Business Writer, On Thursday August 12, 2010, 4:54 pm EDT

NEW YORK (AP) -- Technology companies led the stock market to its third straight loss Thursday after an earnings report from Cisco Systems raised more questions about the economy.

A weekly employment report that was weaker than expected also made investors uneasy about the strength of the economic recovery. The Dow Jones industrial average fell 58 points and now has an almost 380-point loss the past three days. The Dow has also fallen five of the last six days. The Nasdaq composite index had a steeper loss in percentage terms, a reflection of the drop in tech stocks.

Cisco Systems Inc. released earnings after the market closed Wednesday. Cisco is seen by many traders and analysts as an indicator of the economy's health, and it disappointed investors in several ways. The computer networking company's revenue for its fiscal fourth quarter and forecast for revenue fell short of analysts' expectations. Investors are focused on the connection between revenue and the economy. If revenue is weak, that could be a sign that consumers are reluctant to spend and could start to affect companies' profits.

The timing of Cisco's report was also troubling. Craig Peckham, a market strategist at Jefferies & Co., noted that Cisco's quarter ended in July, a month later than most at companies, so it gives investors a first look at how businesses are doing in the July-September period.

Peckham said investors also reacted to comments by Cisco CEO John Chambers, who said late Wednesday, "We think the words 'unusual uncertainty' are an accurate description of what's occurring" in the economy. Chambers echoed the words chosen by Federal Reserve Chairman Ben Bernanke last month.

Technology stocks were the worst performer Thursday among the nine sectors that make up the Standard & Poor's 500 index. The tech sector fell 1.15 percent. Cisco was down 10 percent. Microsoft Corp. was down 1.5 percent, and Oracle Corp. fell 3 percent.

Other big stocks seen as vulnerable in a weak economy also fell. Shipper FedEx Corp. lost 1.4 percent and heavy equipment maker Caterpillar Inc. fell 1.8 percent. Health care companies, called defensive stocks because they are likely to do well in a weak economy, were among the day's winners.

Investors have generally been selling since the stock market reached its 2010 peak in late April because they don't have a sense of whether the recovery will hold. Some fear that the economy will fall back into recession because of high unemployment and weak consumer spending. They cite a long string of weak economic reports and revenue disappointments like Cisco's as reasons for their pessimism. And earlier this week, the Fed said the recovery had slowed and it would buy government notes and bonds in hopes of stimulating lending and the economy as a whole.

The uncertainty has kept many traders out of the market in July and August, months when trading volume is already down because of vacations. Analysts say low volume has exaggerated price changes.

The Dow fell 58.88, or 0.6 percent, to 10,319.95. The average has lost 360 points over the past six days.

The Standard & Poor's 500 index fell 5.86, or 0.5 percent, to 1,083.61. The Nasdaq composite index fell 18.36, or 0.8 percent, to 2,190.27.

Losing stocks were ahead of gainers by about 2 to 1 on the New York Stock Exchange, where volume came to 1 billion shares.

Interest rates rose in the Treasury market after falling sharply Wednesday, when investors were seeking the safety of government securities. The yield on the 10-year Treasury note, which rises as its price falls, was 2.75 percent, up from late Wednesday's 2.69 percent.

The Labor Department said that the number of people filing for unemployment benefits for the first time rose last week to 484,000. The gain was small at 2,000, but economists had expected the number to drop. The news pointed to continuing weakness in the labor market, yet another sign that the economic recovery is slowing.

Charlie Smith, chief investment officer with Fort Pitt Capital Group in Pittsburgh, predicted few major market moves for the rest of the month because so many traders are away.

Smith also said the market's drop over the past few months was due more to a negative outlook by investors rather than a fundamental change in the economy.

"We had a weak recovery back in March and April," Smith said. At that point, the market was moving toward its highest level since the financial crisis struck in September 2008. Stocks began falling after the major indexes peaked in late April.

Markets in Europe fell Thursday after the U.S. unemployment news, then regained ground. In London, the FTSE-100 index was up 0.4 percent. Germany's DAX index was down 0.3 percent, while the CAC-40 index in Paris was down 0.2 percent. Earlier, Japan's Nikkei index closed down 0.9 percent.

There were disappointments among Thursday's earnings reports. Sara Lee Corp.'s revenue missed analysts' forecasts. And retailer Kohl's Corp. disappointed the market by lowering its earnings outlook because it expects sales to slow during the second half of the year. That period includes the holiday season, when retailers make a large part of their profits.

Sara Lee fell 10 cents, or 0.7 percent, to $14.37. Kohl's fell $1.28, or 2.7 percent, to $46.50.

In other earnings news, General Motors Co. reported net income of $1.33 billion in the April-June quarter, its second straight quarterly profit. The company, which is 61 percent owned by the federal government, is moving toward a public offering of its shares. The company also had a surprise announcement. CEO Ed Whitacre will step down Sept. 1 and be replaced by GM board member Daniel Akerson, head of the global buyout unit of The Carlyle Group, a private equity firm.

Cisco fell $2.37, or 10 percent, to $21.36. Microsoft was off 37 cents, or 1.5 percent, at $24.49. And Oracle dropped 72 cents, or 3 percent, to $22.94

Caterpillar fell $1.21, or 1.8 percent, to $67.50, while FedEx fell $1.19, or 1.4 percent, to $81.94.

 

[bigdog]

Source: http://finance.yahoo.com

The major indexes' performance for the week shows how turbulent the market has been. The Dow is down 3.3 percent, while the S&P 500 is off 3.8 percent. The Nasdaq composite index had the steepest drop, 5 percent, in part because of a cautious economic outlook from Cisco Systems Inc.'s CEO, John Chambers. He echoed the words used last month by Federal Reserve Chairman Ben Bernanke, who called the outlook for the recovery "unusually uncertain." Cisco, which makes networking equipment, is seen as an economic bellwether.

Stocks extended their losing streak to four days Friday after a mixed batch of readings on consumers further muddled investors' sense of the economy.

The major stock indexes fluctuated throughout the day before closing slightly lower. The Dow Jones industrial average fell nearly 17 points and has now lost almost 400 over four days. It was a typically slow summer Friday, but only partly due to vacations. Traders who were working had little reason to make any major moves because of economic data that remains confusing.

One of the biggest obstacles to a strong economic recovery is weak consumer spending. Friday's reports about consumers' attitudes and spending didn't point to a shopping rebound anytime soon.

The NYSE DOW closed LOWER -16.80 points -0.16% on Friday August 13
Sym. Last......... ........Change..........
Dow 10,303.15 -16.80 -0.16%
Nasdaq 2,173.48 -16.79 -0.77%
S&P 500 1,079.25 -4.36 -0.40%
30-yr Bond 3.8700% -0.6100

NYSE Volume 3,819,334,750 (prior day 4,563,876,000)
Nasdaq Volume 1,623,953,000 (prior day 2,211,513,250)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,275.44 +9.38 +0.18%
DAX 6,110.41 -24.76 -0.40%
CAC 40 3,610.91 -10.16 -0.28%

Asia
Symbol...... Last...... .....Change
Nikkei 225 9,253.46 +40.87 +0.44%
Hang Seng 21,071.57 -34.14 -0.16%
Straits Times 2,939.97 +12.93 +0.44%

http://finance.yahoo.com/news/Stocks-fluctuate-after-retail-apf-1555068206.html?x=0

Stocks fall for 4th day after retail sales report

Stocks fall for 4th day after July retail sales report falls below economists' expectations

Joyce M. Rosenberg, AP Business Writer, On Friday August 13, 2010, 5:54 pm EDT

NEW YORK (AP) -- Stocks extended their losing streak to four days Friday after a mixed batch of readings on consumers further muddled investors' sense of the economy.

The major stock indexes fluctuated throughout the day before closing slightly lower. The Dow Jones industrial average fell nearly 17 points and has now lost almost 400 over four days. It was a typically slow summer Friday, but only partly due to vacations. Traders who were working had little reason to make any major moves because of economic data that remains confusing.

One of the biggest obstacles to a strong economic recovery is weak consumer spending. Friday's reports about consumers' attitudes and spending didn't point to a shopping rebound anytime soon.

The Commerce Department said that retail sales rose 0.4 percent in July. That was an improvement after two months of sales declines. But the number was just below economists' forecast of a gain of 0.5 percent. While the report showed strength in auto sales due to buyers' incentives, it also showed that consumers are shying away from other purchases.

Some better news came from the University of Michigan/Reuters survey of consumer sentiment for the first part of August, which showed consumers are slightly more optimistic. An index based on the survey came in at 69.6, slightly above analysts' estimates and up from July's 67.8.

But retailer J.C. Penney Co. lowered its earnings forecast for the year, citing expectations that consumer spending will be slow. J.C. Penney joined competitor Kohl's Corp., which lowered its earnings outlook on Thursday.

These latest reports fell in line with a long string of conflicting data that has left investors unsure about where the economy is headed. Consumer spending has remained weak along with the labor market. And there are no signs that employers are ready to start hiring at a pace to help lift the economy. On Thursday, the Labor Department said the number of people filing for unemployment benefits for the first time rose last week.

Although J.C. Penney and Kohl's were disappointments for investors, second-quarter earnings overall have been strong and company executives are optimistic. The split between economic and earnings numbers has added to investors' murky view of the economy. It contributed to this week's heavy selling.

"We're in a fragile market," said Steven Goldman, chief market strategist, Weeden & Co. in Greenwich, Conn. He noted that the market's decline is feeding the lack of confidence among consumers and investors. That inevitably has an impact on the economy.

The Dow fell 16.80, or 0.2 percent, to 10,303.15. The Standard & Poor's 500 index fell 4.36, or 0.4 percent, to 1,079.25. The Nasdaq composite index fell 16.79, or 0.8 percent, to 2,173.48.

Losing stocks were ahead of gainers by almost 4 to 3 on the New York Stock Exchange, where consolidated volume came to an extremely light 3.35 billion shares, down from Thursday's 4 billion.

The major indexes' performance for the week shows how turbulent the market has been. The Dow is down 3.3 percent, while the S&P 500 is off 3.8 percent. The Nasdaq composite index had the steepest drop, 5 percent, in part because of a cautious economic outlook from Cisco Systems Inc.'s CEO, John Chambers. He echoed the words used last month by Federal Reserve Chairman Ben Bernanke, who called the outlook for the recovery "unusually uncertain." Cisco, which makes networking equipment, is seen as an economic bellwether.

The Fed's policy meeting on Tuesday also took a toll on stocks. The central bank noted that the recovery was slowing, and said it would start buying government debt in hopes of lowering interest rates and stimulating lending. However, investors believed the Fed's moves will have little impact on the economy.

Interest rates in the Treasury market showed investors' uneasiness. Rates, which move in the opposite direction from prices, have fallen as investors seek a safe place for their money.

The yield on the Treasury's 10-year note, which is used to set rates on consumer loans including mortgages, was 2.68 percent Friday, down from late Wednesday's 2.75 percent. A week ago, the yield stood at 2.82 percent, and on Aug. 2, the first trading day of the month, it was 2.97 percent.

Philip S. Dow, director of equity strategy at RBC Wealth Management in Minneapolis said much of Friday's trading was likely coming from high-frequency traders, who used complex mathematical models and computers to make money off small differences in stock prices. Many other investors still have a lot of cash on the sidelines while they wait to see where the market is headed, Dow said.

Stocks drew some support from the announcements of two planned corporate acquisitions. Asset manager Blackstone Group is paying $542.7 million to take power plant owner Dynegy Inc. private. The deal also calls for Blackstone to assume more than $4 billion in Dynegy's debt. Dynegy will also sell four power plants to NRG Energy Inc.

Dynegy rose $1.75, or 63 percent, to $4.53. Blackstone fell 38 cents, or 3.5 percent, to $10.63. And NRG fell 45 cents, or 2 percent, to $21.96.

IBM Corp. said it's buying Unica Corp., a marketing services company, for $480 million. IBM fell 43 cents, or 0.3 percent, to $127.87. Unica more than doubled in price, rising $11.29 to $20.84.

J.C. Penney fell 98 cents, or 4.7 percent, to $19.82. Other retailers also fell.

Overseas markets were mixed. London's FTSE-100 index rose 0.2 percent, while Germany's DAX fell 0.4 percent and the CAC-40 index in Paris fell 0.3 percent.

Investors in Europe were more concerned with signs of slowing growth in the U.S. than in their own economies. News that the European economy had grown 1 percent during the second quarter gave some support to stocks, but it was not enough to lift them across the board.

8521

 

[bigdog]

Source: http://finance.yahoo.com

Stocks managed to break a four-day losing streak Monday by the slimmest of margins. Investors had no change of heart about the economy, however, and again poured money into the safety of U.S. Treasurys.

The Dow Jones industrial average fluctuated along with the other big market indexes throughout the day. The Dow closed down just over a point, but the other indexes had slight gains. There were more winners than losers on the New York Stock Exchange.

Investors were dealing with more downbeat economic news, but it wasn't bad enough to set off significant selling. A report on manufacturing in New York state fell short of forecasts and Japan became the latest country to show signs of slowing growth. The reports raised investors' concerns about the pace of the global economic recovery.

The NYSE DOW closed LOWER -1.14 points -0.01% on Monday August 16
Sym. Last......... ........Change..........
Dow 10,302.01 -1.14 -0.01%
Nasdaq 2,181.87 +8.39 +0.39%
S&P 500 1,079.38 +0.13 +0.01%
30-yr Bond 3.7200% -1.5000

NYSE Volume 3,569,886,750 (prior day 3,819,334,750)
Nasdaq Volume 1,636,439,375 (prior day 1,623,953,000)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,276.10 +0.66 +0.01%
DAX 6,110.57 +0.16 +0.00%
CAC 40 3,597.60 -13.31 -0.37%

Asia
Symbol...... Last...... .....Change
Nikkei 225 9,196.67 -56.79 -0.61%
Hang Seng 21,112.12 +40.55 +0.19%
Straits Times 2,933.51 -6.46 -0.22%

http://finance.yahoo.com/news/Stocks-reverse-course-rise-apf-4221214888.html?x=0

Stocks eke out gain as investor malaise continues

Stocks eke out slim gain as investors do some mild buying amid uneasiness about economy

Stephen Bernard, AP Business Writer, On Monday August 16, 2010, 5:36 pm

NEW YORK (AP) -- Stocks managed to break a four-day losing streak Monday by the slimmest of margins. Investors had no change of heart about the economy, however, and again poured money into the safety of U.S. Treasurys.

The Dow Jones industrial average fluctuated along with the other big market indexes throughout the day. The Dow closed down just over a point, but the other indexes had slight gains. There were more winners than losers on the New York Stock Exchange.

Investors were dealing with more downbeat economic news, but it wasn't bad enough to set off significant selling. A report on manufacturing in New York state fell short of forecasts and Japan became the latest country to show signs of slowing growth. The reports raised investors' concerns about the pace of the global economic recovery.

Analysts said Monday's short buying spurt was a pause following four days of losses that sent the Dow down almost 400 points.

"The market is really being controlled by (short-term) traders," said Mike Rubino, CEO at Rubino Financial Group in Troy, Mich. "The long-term investor doesn't appear to be anywhere in sight."

Without those long-term investors, trading is expected to remain erratic for the foreseeable future.

The Dow fell 1.14, or 0.01 percent, to 10,302.01. The Standard & Poor's 500 index rose 0.13, or 0.01 percent, to 1,079.38, while the Nasdaq composite index rose 8.39, or 0.4 percent, to 2,181.87.

The Nasdaq, which has fallen more than the other indexes, got a lift from technology company deals. Among them, Dell Inc. said it is buying 3Par Inc., a maker of data storage equipment, for about $1.13 billion.

Advancing stocks were ahead of losers by about 2 to 1 on the New York Stock Exchange, where volume remained light at 787.8 million shares. Many traders are on vacation. And those who are at their trading desks are making few moves in an uncertain economy.

Investors continued buying Treasurys, driving interest rates lower. U.S. government bonds are looking more and more appealing to investors wanting to find a safe place for their money as the economy cools and stocks drop.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.58 percent from 2.68 percent late Monday. Its yield is often used to help set interest rates on mortgages and consumer loans.

The yield on the 10-year note is near the level it last hit in March 2009 when stocks fell to a 12-year low.

"It's a sign of pessimism that investors accept that low a yield," said Joe Heider, principal at Rehmann Financial in Cleveland.

Japan said its economy grew just 0.1 percent in the second quarter, well below the 1.2 percent growth in the first quarter and short of expectations. The report follows signs last week that both the U.S. and Chinese economies are not growing as fast as earlier in the year.

Meanwhile, the Federal Reserve Bank of New York said manufacturing activity in the state rebounded slightly this month after falling sharply in July. Despite the modest gain, activity did not expand as much as had been forecast, which indicates that economic growth remains tepid.

The New York Fed's Empire State Manufacturing Index rose to 7.1 in August from 5.1 in July. Economists polled by Thomson Reuters forecast the index would rise to 8. It was 19.6 just two months ago.

Regional manufacturing reports have shown a broad slowdown in recent months. That's particularly discouraging because manufacturing provided the most consistent signs of growth during the first few months of the year.

The reports are the latest to indicate that the global economy is growing, but not as fast as it did during the first few months of 2010. The slowdown has concerned traders who were predicting growth to pick up during the second half.

"We're scared of our own shadows here," said Jamie Cox, managing director at Harris Financial Group in Richmond, Va. "We need to readjust our signs from above-trend growth. If not, we're going to be perennially disappointed."

News about the housing market was also discouraging. The National Association of Home Builders said its monthly index of builders' sentiment fell in August for the third straight month.

3Par rose $8.35, or more than 86 percent, to $18. Dell fell 5 cents to $11.96.

Lowe's Cos. said Monday its quarterly profit and revenue rose, though both measures fell short of forecasts. The home-improvement retailer also lowered its full-year revenue forecast. Lowe's rose 11 cents $19.70.

Overseas, Japan's Nikkei stock average fell 0.6 percent. Britain's FTSE 100 and Germany's DAX index both rose less than 0.1 percent. France's CAC-40 fell 0.4 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks climb after Home Depot, Wal-Mart report profit; wholesale prices inch higher

Investors regained some enthusiasm for stocks Tuesday, sending prices sharply higher after reports showed a slight improvement in the housing market and a big jump in industrial production.

Investors were also encouraged by earnings from Home Depot Inc. and Wal-Mart Stores Inc. that were better than expected. The Dow Jones industrial average rose 103 points. All the major stock indexes were up more than 1 percent. Interest rates rose as investors moved out of the bond market and back into stocks.

It's too early to say whether stocks have recovered from a recent slump that sent the Dow falling almost 400 points over four days or whether Tuesday's advance was an upward blip. Many traders are on vacation, or avoiding any stock moves because of the uncertainty of the economy. That means low trading volume and price moves that can easily be exaggerated. The Dow rose almost 180 points before falling back to its closing level.

But Tuesday's reorts provided a slice of optimism and some reassurance that the economy continues to expand, although at a slower pace than early this year.

The NYSE DOW closed HIGHER +103.84 points +1.01% on Tuesday August 17
Sym. Last......... ........Change..........
Dow 10,405.85 +103.84 +1.01%
Nasdaq 2,209.44 +27.57 +1.26%
S&P 500 1,092.54 +13.16 +1.22%
30-yr Bond 3.7700% +0.5000

NYSE Volume 4,540,264,000 (prior day 3,569,886,750)
Nasdaq Volume 1,761,678,375 (prior day 1,636,439,375)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,350.55 +74.45 +1.41%
DAX 6,206.40 +95.83 +1.57%
CAC 40 3,663.13 +52.22 +1.45%

Asia
Symbol...... Last...... .....Change
Nikkei 225 9,161.68 -34.99 -0.38%
Hang Seng 21,137.43 +25.31 +0.12%
Straits Times 2,923.36 -10.15 -0.35%

http://finance.yahoo.com/news/Stocks-rise-on-earnings-apf-606445486.html?x=0

Stocks rise on earnings, economic reports

Stocks climb after Home Depot, Wal-Mart report profit; wholesale prices inch higher

Stephen Bernard, AP Business Writer, On Tuesday August 17, 2010, 4:51 pm EDT

NEW YORK (AP) -- Investors regained some enthusiasm for stocks Tuesday, sending prices sharply higher after reports showed a slight improvement in the housing market and a big jump in industrial production.

Investors were also encouraged by earnings from Home Depot Inc. and Wal-Mart Stores Inc. that were better than expected. The Dow Jones industrial average rose 103 points. All the major stock indexes were up more than 1 percent. Interest rates rose as investors moved out of the bond market and back into stocks.

It's too early to say whether stocks have recovered from a recent slump that sent the Dow falling almost 400 points over four days or whether Tuesday's advance was an upward blip. Many traders are on vacation, or avoiding any stock moves because of the uncertainty of the economy. That means low trading volume and price moves that can easily be exaggerated. The Dow rose almost 180 points before falling back to its closing level.

But Tuesday's reorts provided a slice of optimism and some reassurance that the economy continues to expand, although at a slower pace than early this year.

"The data and earnings should ease people's concerns about a double-dip" recession, said Peter Bible, a partner at EisnerAmper. "We're anemic; we're slow; we're crawling, but we're not going backward."

The Commerce Department said construction of new homes and apartments rose 1.7 percent in July, but applications for building permits fell by a higher than expected 3.1 percent. Building permit applications are considered a good gauge of future activity.

Home sales have struggled to regain momentum after a home buyer tax credit expired at the end of April. So signs of stabilization in the market are considered somewhat positive after the sharp declines that followed after the expiration of the tax credit.

And industrial production jumped 1 percent in July, double the 0.5 percent growth forecast by economists. Rising output at the nation's factories, mines and utilities comes after multiple manufacturing reports had shown a pronounced slowdown over the past couple of months.

"That is fairly robust," Jeff Bagley, vice president and portfolio manager at Haverford Investments, said of the industrial production report. It's "another point of relief for investors."

The Dow Jones industrial average rose 103.84, or 1 percent, to 10,405.85. The Standard & Poor's 500 index rose 13.16, or 1.2 percent, to 1,092.54, while the Nasdaq composite index rose 27.57, or 1.3 percent, to 2,209.44.

About four stocks rose for one that fell on the New York Stock Exchange where volume came to a light 980 million shares.

Investors also had some good news from the latest inflation reading. Prices at the wholesale level rose 0.2 percent last month, the Labor Department said, easing worries about deflation, a drop in prices that is a symptom of a sick economy.

This was the first increase in producer prices since March and matched expectations of economists polled by Thomson Reuters. Excluding volatile food and energy costs, the index rose 0.3 percent in July, more than the 0.1 percent growth predicted by economists.

Home Depot followed fellow home-improvement retailer Lowe's in beating earnings expectations. Home Depot, as Lowe's did on Monday, modestly cut its revenue forecast as shoppers remain cautious about spending amid high unemployment. The company also raised its earnings forecast because of share repurchases.

Aside from better-than-expected earnings, Wal-Mart raised its earnings outlook because of continued cost-cutting measures and strong global growth in China, Brazil and Mexico.

Wal-Mart rose 61 cents, or 1.2 percent, to $51.02. Home Depot rose 93 cents, or 3.4 percent, to $28.31.

Meanwhile, Potash Corp. of Saskatchewan Inc. rejected an unsolicited takeover bid from BHP Billiton Ltd. worth about $38.49 billion, or $130 per share. Potash, a fertilizer producer, said the bid undervalued the company.

Global packaging company Reynolds Group Holdings Ltd. will buy Pactiv Corp., maker of the Hefty brand trash bags, for about $4.4 billion, or $33.25 per share, in cash. Including debt, the deal is value at about $6 billion.

Merger and acquisition activity is considered a positive sign for the economy because it means companies are betting the economy will grow in the near future. The rejection of the Potash deal also means it is confident the company is worth even more than the asking price because it sees growth as well.

Shares of Potash surged after the company rejected the offer. They rose $31.02, or 27.7 percent, to $143.17. Pactiv shares jumped $1.66, or 5.4 percent, to $32.58.

With investors looking to buy stocks and feeling less of a need for security, bond prices fell and sent interest rates sharply higher. The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.64 percent from 2.57 percent late Monday. Its yield is often used to set interest rates on mortgages and other consumer loans.

Overseas, Britain's FTSE 100 rose 1.4 percent, Germany's DAX index gained 1.6 percent, and France's CAC-40 rose 1.8 percent. Japan's Nikkei stock average fell 0.4 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks ended a seesaw day with a modest gain Wednesday after investors found some pluses in retail earnings reports.

The Dow Jones industrial average and other major indexes fluctuated throughout the day before closing with slender gains. There was little news to motivate investors a day after a stream of improving economic numbers restored some of their enthusiasm for stocks and sent the Dow up 103 points. But retailers continued reporting second-quarter earnings and investors found a few positives.

Target Corp. missed analysts' forecasts for its second quarter revenue and offered a muted outlook for sales for the rest of the year. But the company told analysts it hopes to offset weak sales with higher sales of groceries and its new discounts for credit card holders. Target initially fell sharply, then recovered to a healthy advance.

The reports came a day after Wal-Mart Stores Inc. and Home Depot Inc. issued numbers that were upbeat. Almost all the big retailers closed higher Wednesday. An exception was BJ's Wholesale Club Inc., which lowered its earnings outlook for the year. Its stock dropped.

Wednesday's trading was muted, and that was to be expected after Tuesday's advance and as the outlook for the economy remained unclear. Traders weren't about to commit much more money to stocks. And many traders weren't at their desks.

The NYSE DOW closed HIGHER +9.69 points +0.09% on Wednesday August 18
Sym. Last......... ........Change..........
Dow 10,415.54 +9.69 +0.09%
Nasdaq 2,215.70 +6.26 +0.28%
S&P 500 1,094.16 +1.62 +0.15%
30-yr Bond 3.7340% -0.3600

NYSE Volume 4,317,802,000 (prior day 4,540,264,000)
Nasdaq Volume 1,693,790,125 (prior day 1,761,678,375)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,302.87 -47.68 -0.89%
DAX 6,186.31 -20.09 -0.32%
CAC 40 3,647.93 -15.20 -0.41%

Asia
Symbol...... Last...... .....Change
Nikkei 225 9,240.54 +78.86 +0.86%
Hang Seng 21,022.73 -114.70 -0.54%
Straits Times 2,919.37 -3.99 -0.14%

http://finance.yahoo.com/news/Stocks-close-modestly-higher-apf-2626377068.html?x=0

Stocks close modestly higher on retail reports

Stocks end seesaw day with modest advance as investors put positive spin on retail report

Joyce M. Rosenberg, AP Business Writer, On Wednesday August 18, 2010, 5:40 pm EDT

NEW YORK (AP) -- Stocks ended a seesaw day with a modest gain Wednesday after investors found some pluses in retail earnings reports.

The Dow Jones industrial average and other major indexes fluctuated throughout the day before closing with slender gains. There was little news to motivate investors a day after a stream of improving economic numbers restored some of their enthusiasm for stocks and sent the Dow up 103 points. But retailers continued reporting second-quarter earnings and investors found a few positives.

Target Corp. missed analysts' forecasts for its second quarter revenue and offered a muted outlook for sales for the rest of the year. But the company told analysts it hopes to offset weak sales with higher sales of groceries and its new discounts for credit card holders. Target initially fell sharply, then recovered to a healthy advance.

The reports came a day after Wal-Mart Stores Inc. and Home Depot Inc. issued numbers that were upbeat. Almost all the big retailers closed higher Wednesday. An exception was BJ's Wholesale Club Inc., which lowered its earnings outlook for the year. Its stock dropped.

Wednesday's trading was muted, and that was to be expected after Tuesday's advance and as the outlook for the economy remained unclear. Traders weren't about to commit much more money to stocks. And many traders weren't at their desks.

"This is sort of a reflection of it being August when most trading firms have a skeleton staff on hand. It's going to be quiet for the next week or two," said Robert Pavlik, chief market strategist at Banyan Partners LLC in New York.

The Dow rose 9.69, or 0.1 percent, to 10,415.54. The Standard & Poor's 500 index rose 1.62, or 0.2 percent, to 1,094.16. The Nasdaq composite index rose 6.26, or 0.3 percent, to 2,215.70

Gainers were ahead of losers by 3 to 2 on the New York Stock Exchange. Consolidated volume was again extremely light at 3.8 billion shares, down from Tuesday's 4.1 billion.

Treasurys remained a destination for investors seeking a safer place than stocks to put their money. The 10-year Treasury yield fell to 2.63 percent from 2.64 percent late Tuesday.

John Stoltzfus, senior market strategist with Ticonderoga Securities in New York, said the market is becoming increasingly dominated by a "What have you done for me lately?" attitude and responding to daily reports about the economy.

"We live from economic data point to economic data point," he said. "That will probably continue at least until the end of the summer as we wait for some kind of catalyst that would give the market better definition."

BHP Billiton's $38.5 billion takeover offer for fertilizer producer Potash Corp. of Saskatchewan turned hostile Wednesday. Potash had called BHP's offer grossly inadequate. The announcement of the bid and Potash's rejection Tuesday helped feed the rally in stocks. Mergers and acquisitions activity tends to lift the market because it shows investors' confidence in the economy.

Investors were expecting a better offer. Potash rose $4.76, or 3.3 percent, to $147.93.

Target rose $1.27, or 2.5 percent, to $51.95. BJ's fell $1.17, or 2.7 percent, to $42.14. J.C. Penney Co., hurt last week by a disappointing earnings report, rose along with its competitors. It closed up 52 cents, or 2.6 percent, at $20.66. Clothing retailer AnnTaylor Corp. rose 97 cents, or 6.5 percent, to $15.96.

Overseas, Japan's Nikkei 225 index closed up 0.9 percent. In later European trading, London's FT-SE 100 index fell 0.8 percent. Germany's DAX index fell 0.3 percent, while the CAC-40 index in Paris fell 0.7 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks tumbled Thursday after two disappointing economic reports renewed investors' concerns about the pace of the recovery.

The Dow Jones industrial average fell 144 points. All the major stock indexes fell more than 1 percent. Interest rates also fell sharply as investors moved back into the safety of Treasury bonds.

The Labor Department said initial claims for unemployment benefits rose unexpectedly last week and the Federal Reserve of Philadelphia said manufacturing activity in the mid-Atlantic region has dropped during August.

"The Philly Fed number was just awful," said Randy Frederick, director of trading and derivatives at Charles Schwab. "The jobs number was bad, but not as far off the mark as the Philly number."

The NYSE DOW closed LOWER -144.33 points -1.39% on Thursday August 19
Sym. Last......... ........Change..........
Dow 10,271.21 -144.33 -1.39%
Nasdaq 2,178.95 -36.75 -1.66%
S&P 500 1,075.63 -18.53 -1.69%
30-yr Bond 3.6570% -0.7700

NYSE Volume 4,983,463,000 (prior day 4,317,802,000)
Nasdaq Volume 2,124,020,000 (prior day 1,693,790,125)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,211.29 -91.58 -1.73%
DAX 6,075.13 -111.18 -1.80%
CAC 40 3,572.40 -75.53 -2.07%

Asia
Symbol...... Last...... .....Change
Nikkei 225 9,362.68 +122.14 +1.32%
Hang Seng 21,072.46 +49.73 +0.24%
Straits Times 2,946.77 +27.40 +0.94%

http://finance.yahoo.com/news/Stock...4.html?x=0&sec=topStories&pos=6&asset=&ccode=

Stocks drop as jobless claims rise unexpectedly

Stocks fall after jobless claims rise, regional manufacturing report disappoints

Stephen Bernard, AP Business Writer, On Thursday August 19, 2010, 5:01 pm EDT

NEW YORK (AP) -- Stocks tumbled Thursday after two disappointing economic reports renewed investors' concerns about the pace of the recovery.

The Dow Jones industrial average fell 144 points. All the major stock indexes fell more than 1 percent. Interest rates also fell sharply as investors moved back into the safety of Treasury bonds.

The Labor Department said initial claims for unemployment benefits rose unexpectedly last week and the Federal Reserve of Philadelphia said manufacturing activity in the mid-Atlantic region has dropped during August.

"The Philly Fed number was just awful," said Randy Frederick, director of trading and derivatives at Charles Schwab. "The jobs number was bad, but not as far off the mark as the Philly number."

The pair of economic reports followed news that Intel Corp. was acquiring McAfee Inc. The deal, valued at $7.68 billion, was not enough to offset the weaker economic readings.

The reports are the latest in a months-long string of conflicting readings on the economy. The reports have shown the pace of a rebound is slowing and that companies are skittish about adding new workers. That has hurt stocks on some days in recent weeks. It has also stoked fears about the economy falling back into recession.

At the same time, corporate announcements, including earnings reports for the past six weeks, have largely showed companies are doing well. Mergers and acquisitions activity is often considered a positive sign because it means companies are willing to spend money to expand their businesses and are confident that prospects are improving.

The Dow fell 144.33, or 1.4 percent, to 10,271.21. The Standard & Poor's 500 index fell 18.53, or 1.7 percent, to 1,075.63, while the Nasdaq composite index fell 36.75, or 1.7 percent, to 2,178.95.

About four stocks fell for every one that rose on the New York Stock Exchange, where volume came to almost 1.1 billion shares.

Volume has been particularly light in recent weeks, even by summer standards, meaning many investors are still uncertain about the direction of the economy.

Bond prices rose after the weak jobs and manufacturing reports. Investors often move into the safety of government bonds when there are signs the economy is not strong. The yield on the 10-year Treasury note, which moves opposite its price, fell to 2.58 percent from 2.64 percent late Wednesday. Its yield is often used to help set interest rates on mortgages and other consumer loans.

Joe Benanti, managing director at Rosenblatt Securities, said low volume likely added to the sell-off.

It's "probably taking trading a little to an extreme, more than it should," Benanti said.

Volume has been reduced not only by summer vacations, but by investors' reluctance to make many big moves amid the uncertainty about the economy.

The Labor Department said initial claims for unemployment benefits rose by 12,000 to 500,000 last week from an upwardly revised 488,000 a week earlier. Economists polled by Thomson Reuters forecast claims would fall slightly. It was the fourth rise in claims in the past five weeks and sent them to their highest level since November.

High unemployment is considered the biggest hurdle to a stronger recovery because people worried about jobs have scaled back their spending. Consumer spending accounts for the bulk of the country's economic activity.

The Philly Fed manufacturing survey was negative 7.7 for August after a reading of positive 5.1 last month. Economists were expecting the index to rise this month. Any reading above zero indicates growth in the sector.

It was an especially sobering report because manufacturing activity early this year had shown the most consistent signs of growth.

The report is "saying the manufacturing pop has run out of steam," said Jim Peters, CEO of Tactical Allocation Group. The lift the economy got from companies replenishing inventories is over and sales have not picked up enough to maintain those levels, Peters said.

A report on future economic activity also fell short of expectations. The Conference Board's index of leading economic indicators rose 0.1 percent last month after falling a month earlier. Economists had expected the index to rise 0.2 percent.

The index tries to predict economic activity over the next three to six months, so a rise in the index would indicate the economy is likely to grow during the second half of the year.

Chip maker Intel is buying computer-security software maker McAfee in an all-cash deal for $48 per share. McAfee shares surged $17.09, or 57.1 percent, to $47.02. Intel shares fell 61 cents, or 3.1 percent, to $18.98.

In other corporate news, Sears Holdings Corp. reported its second-quarter loss was cut in half as profit margins improved at its Kmart chain. But revenue at stores open at least a year, a key measure of strength in the retail industry, fell during the quarter. Sears shares dropped $5.36, of 8 percent, to $61.89.

Overseas, Britain's FTSE 100 fell 1.7 percent, Germany's DAX index fell 1.8 percent, and France's CAC-40 dropped 2.1 percent. Japan's Nikkei stock average rose 1.3 percent.

 

[bigdog]

Source: http://finance.yahoo.com

For the week, the Dow fell 0.9 percent, while the S&P 500 index fell 0.7 percent and the Nasdaq rose 0.2 percent. The indexes seesawed through the week as investors shuttled between optimism and pessimism about the economy.

Stocks closed moderately lower Friday as investors' pessimistic view of the economy deepened.

There was little reason for investors to buy. There were no reports to offset Thursday's disappointing news that growth in the domestic economy continues to slow. The Dow Jones industrial average fell 57 points a day after falling 144. The other major indexes also fell moderately.

"We're not seeing any significant growth prospects," said Peter Costa, president of Empire Executions. "Why be in the market if there's no (near-term) prospects for growth?"

Oil prices fell again on worries that future demand will wane if economic growth remains tepid. Energy stocks were among the worst performers, including oil companies Chevron Corp. and ConocoPhillips.

The NYSE DOW closed LOWER -57.59 points -0.56% on Friday August 20
Sym. Last......... ........Change..........
Dow 10,213.62 -57.59 -0.56%
Nasdaq 2,179.76 +0.81 +0.04%
S&P 500 1,071.69 -3.94 -0.37%
30-yr Bond 3.6610% +0.0400

NYSE Volume 4,329,797,500 (prior day 4,983,463,000)
Nasdaq Volume 1,944,784,880 (prior day 2,124,020,000)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,195.28 -16.01 -0.31%
DAX 6,005.16 -69.97 -1.15%
CAC 40 3,526.12 -46.28 -1.30%

Asia
Symbol...... Last...... .....Change
Nikkei 225 9,179.38 -183.30 -1.96%
Hang Seng 20,981.82 -90.64 -0.43%
Straits Times 2,936.48 -10.29 -0.35%

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

Stocks slide as investors' malaise continues

Stocks fall, extending their loss for the week as investors' malaise and pessimism deepen

Stephen Bernard, AP Business Writer, On Friday August 20, 2010, 6:10 pm EDT
NEW YORK (AP) -- Stocks closed moderately lower Friday as investors' pessimistic view of the economy deepened.

There was little reason for investors to buy. There were no reports to offset Thursday's disappointing news that growth in the domestic economy continues to slow. The Dow Jones industrial average fell 57 points a day after falling 144. The other major indexes also fell moderately.

"We're not seeing any significant growth prospects," said Peter Costa, president of Empire Executions. "Why be in the market if there's no (near-term) prospects for growth?"

Oil prices fell again on worries that future demand will wane if economic growth remains tepid. Energy stocks were among the worst performers, including oil companies Chevron Corp. and ConocoPhillips.

Overseas markets also fell, reacting to reports Thursday that initial claims for unemployment benefits in the U.S. rose last week and that manufacturing in the Mid-Atlantic region shrank.

"We're probably on a continuation from yesterday's disturbing claims number," said Paul Zemsky, head of asset allocation at ING Investment Management. "There's really nothing to hang your hat on."

The Dow fell 57.59, or 0.6 percent, to 10,213.62. The Standard & Poor's 500 index fell 3.94, or 0.4 percent, to 1,071.69, while the Nasdaq composite index rose 0.81, or 0.04 percent, to 2,179.76.

For the week, the Dow fell 0.9 percent, while the S&P 500 index fell 0.7 percent and the Nasdaq rose 0.2 percent. The indexes seesawed through the week as investors shuttled between optimism and pessimism about the economy.

About three stocks fell for every two that rose on the New York Stock Exchange, where consolidated volume came to 3.8 billion shares, down from 4.4 billion Thursday.

Traders' vacations have left volume exceptionally low this month. The uncertainty about the economy has made those who are working hesitant to make any big moves.

Data has shown in recent months that private employers are reluctant to hire new workers because they are unsure how strong business will be in the coming quarters. That, in turn, has people worried about their jobs and spending less. But until spending picks up, unemployment could remain high. The vicious circle has investors turning away from stocks.

Mark Luschini, chief market strategist at Janney Montgomery Scott, said companies are also reluctant to hire because of worries about taxes and government programs like the health care reform passed earlier this year.

"The uncertainty that exists on regulatory and income taxes has (employers) in stall mode," Luschini said. Companies are worried about whether higher taxes and costs associated to regulation reform will impact profit margins and cause shoppers to reduce spending if they are paying more taxes, Luschini said.

The unemployment rate remains at 9.5 percent and analysts widely agree it needs to fall to lead to a stronger rebound.

In corporate news, Dell Inc. reported a better-than-expected profit Thursday, due largely to increased technology spending by businesses. However, sales in its consumer personal computer division were flat compared with the same quarter last year -- further evidence that shoppers are hesitant to buy new goods.

Hewlett-Packard Co. reported quarterly results that were in line with preliminary results it released earlier in the month. Its profit rose 6 percent. Unlike Dell, it had growth in its personal computer sales.

HP fell 91 cents, or 2.2 percent, to $39.85. Dell rose 3 cents to $12.07.

Corporate mergers and acquisitions activity gave stocks a boost early this week, but was overshadowed later by weak economic reports. Mergers and acquisitions activity is usually seen as a hopeful sign for the economy because it means companies are willing to spend money, betting that their businesses and the economy will grow in the coming quarters.

Benchmark crude for October delivery fell 97 cents to settle at $73.82 a barrel on the New York Mercantile Exchange. Oil prices have steadily dropped throughout August because of concerns that demand will drop if the global economic recovery slows.

Chevron fell 79 cents to $75.05. ConocoPhillips dropped 82 cents to $53.89.

Bond prices fell. The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.62 percent from 2.58 late Thursday. Its yield is often used to help set interest rates on mortgages and other consumer loans.

Overseas, Britain's FTSE 100 fell 0.3 percent, Germany's DAX index dropped 1.2 percent, and France's CAC-40 fell 1.3 percent. Japan's Nikkei stock average fell 2 percent.
9012

 

[bigdog]

Source: http://finance.yahoo.com

Stocks slumped to a weak finish Monday as lingering worries about the economy overcame optimism from a fresh round of corporate dealmaking.

Stocks had an early lift after Hewlett-Packard Co. bid 33 percent more than rival Dell Inc. for a data storage provider, but the gains faded quickly.

The Dow Jones industrial average was up as much as 91 points in early trading but turned mixed for much of the day. A slump in the final half-hour of trading left the Dow with a loss of 39 points.

Despite the positive deal news, a number of worries about the economy are keeping a lid on the market, especially a reluctance among companies to create jobs. Stocks had a two-day selloff late last week after first-time claims for unemployment benefits jumped to their highest level since November.

The NYSE DOW closed LOWER -39.21 points -0.38% on Monday August 23
Sym. Last......... ........Change..........
Dow 10,174.41 -39.21 -0.38%
Nasdaq 2,159.63 -20.13 -0.92%
S&P 500 1,067.36 -4.33 -0.40%
30-yr Bond 3.6660% +0.0500

NYSE Volume 3,369,164,000 (prior day 4,329,797,500)
Nasdaq Volume 1,709,478,250 (prior day 1,944,784,880)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,234.84 +39.56 +0.76%
DAX 6,010.91 +5.75 +0.10%
CAC 40 3,553.23 +27.11 +0.77%

Asia
Symbol...... Last...... .....Change
Nikkei 225 9,116.69 -62.69 -0.68%
Hang Seng 20,889.01 -92.81 -0.44%
Straits Times 2,925.99 -10.49 -0.36%


Stocks slip as economy worries outweigh deal news

Stocks give up early gains as economic worries overcome optimism from deal news

Stephen Bernard, AP Business Writer, On Monday August 23, 2010, 4:56 pm

NEW YORK (AP) -- Stocks slumped to a weak finish Monday as lingering worries about the economy overcame optimism from a fresh round of corporate dealmaking.

Stocks had an early lift after Hewlett-Packard Co. bid 33 percent more than rival Dell Inc. for a data storage provider, but the gains faded quickly.

The Dow Jones industrial average was up as much as 91 points in early trading but turned mixed for much of the day. A slump in the final half-hour of trading left the Dow with a loss of 39 points.

Despite the positive deal news, a number of worries about the economy are keeping a lid on the market, especially a reluctance among companies to create jobs. Stocks had a two-day selloff late last week after first-time claims for unemployment benefits jumped to their highest level since November.

"Companies are not hiring because they don't know the rules of the game," said. Frank Ingarra, co-portfolio manager of Hennessy Funds. "When you don't know the rules, you pack up and go home."

Ingarra said companies are hesitant to hire because of uncertainty surrounding costs tied to recently passed financial regulation and health care reform. The possibility of rising taxes also has companies worried about consumption, he said.

In other deal news, Potash Corp. of Saskatchewan Inc. rejected BHP Billiton's $38.5 billion offer to acquire the fertilizer company, and HSBC Holdings said it was in talks to buy a controlling stake in Nedbank Group Ltd. of South Africa from Old Mutual for as much as $6.8 billion.

The Dow Jones industrial average lost 39.21 or 0.4 percent, to close at 10,174.41. Other major stock indexes also ended lower.

The Standard & Poor's 500 index fell 4.33, or 0.4 percent, to 1,067.36, while the Nasdaq composite index lost 20.13, or 0.9 percent, to 2,159.63.

Falling stocks outpaced gaining ones three to two on the New York Stock Exchange. Trading volume was very light at 865 million shares, versus 1.1 billion shares on Friday.

Bond prices fell. The yield on the 10-year Treasury note, which moves opposite to its price, fell to 2.60 percent from 2.62 percent late Friday. That yield helps set interest rates on mortgages and consumer loans.

"People are focused on the head winds more than the tail winds," said Walter Gerasimowicz, chief investment officer at Meditron Asset Management. He said investors are overlooking historically low interest rates and signs of corporate strength, choosing instead to focus on disappointing economic data.

Reports are due this week on the housing market, durable goods orders, consumer sentiment and a revision to second-quarter gross domestic product.

Housing remains especially weak following the expiration of the government's tax credit earlier this year. Reports on existing and new home sales are due out Tuesday and Wednesday.

Traders will be looking at Wednesday's report on durable goods orders to see if a slowdown in manufacturing was only temporary. Manufacturing has been one of the few bright spots in the broader economy this year.

Hewlett-Packard shares fell 81 cents to $39.04, while 3Par jumped $8.05, or 44.6 percent, to $26.09. Dell fell 13 cents to $11.94.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks fell for a fourth day after another disappointing report on housing deepened worries that the economic recovery could be fading. Bond yields fell as investors sought out more stable investments.

The Dow Jones industrial average lost 134 points Tuesday following news that sales of previously occupied homes fell last month to their lowest level in 15 years. The 27 percent drop in home sales from the previous month was the biggest since record-keeping began in 1968.

The Dow dipped briefly below 10,000 for the first time in seven weeks and has now lost 375 points since its four-day slump began. The yield on the two-year Treasury note reached another record low as cautious investors piled back into the bond market.

The NYSE DOW closed LOWER -133.96 points -1.32% on Tuesday August 24
Sym. Last......... ........Change..........
Dow 10,040.45 -133.96 -1.32%
Nasdaq 2,123.76 -35.87 -1.66%
S&P 500 1,051.87 -15.49 -1.45%
30-yr Bond 3.5640% -1.0200

NYSE Volume 4,663,190,500 (prior day 3,369,164,000)
Nasdaq Volume 2,171,960,500 (prior day 1,709,478,250)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,155.95 -78.89 -1.51%
DAX 5,935.44 -75.47 -1.26%
CAC 40 3,491.11 -62.12 -1.75%

Asia
Symbol...... Last...... .....Change
Nikkei 225 8,995.14 -121.55 -1.33%
Hang Seng 20,658.71 -230.30 -1.10%
Straits Times 2,922.85 -3.14 -0.11%

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

Stocks drop after sharp fall in July home sales

Stocks stumble after existing home sales plummet in July; Dow off 134

Stephen Bernard, AP Business Writer, On Tuesday August 24, 2010, 5:47 pm

NEW YORK (AP) -- Stocks fell for a fourth day after another disappointing report on housing deepened worries that the economic recovery could be fading. Bond yields fell as investors sought out more stable investments.

The Dow Jones industrial average lost 134 points Tuesday following news that sales of previously occupied homes fell last month to their lowest level in 15 years. The 27 percent drop in home sales from the previous month was the biggest since record-keeping began in 1968.

The Dow dipped briefly below 10,000 for the first time in seven weeks and has now lost 375 points since its four-day slump began. The yield on the two-year Treasury note reached another record low as cautious investors piled back into the bond market.

The National Association of Realtors said sales of previously occupied homes plunged in July to an annual rate of 3.83 million, much worse than the 4.7 million estimate from economists polled by Thomson Reuters.

Home sales have fallen sharply since a homebuyer tax credit expired at the end of April, despite mortgage rates reaching record lows. A stubbornly high unemployment rate of 9.5 percent has been keeping home sales down, and banks have also been cautious in making new loans.

"Without a boost in job creation, (buyers) just won't have the confidence to step in and buy a new home," David Katz, principal at Weiser Capital Management said.

Other world markets also fell. Japanese stocks led the way lower, falling more than 1 percent as the yen hit a fresh 15-year high against the dollar. Japan's economy relies heavily on exports, so a stronger yen hurts the profits of major Japanese companies.

Stocks have been sliding in recent days as investors focus on signs that economic growth is slowing. A new wave of corporate dealmaking gave stocks a temporary boost Monday, but those gains quickly faded.

The Dow fell 133.96, or 1.3 percent, to close at 10,040.45. The Standard & Poor's 500 index fell 15.49, or 1.5 percent, to 1,051.87, while the Nasdaq composite index fell 35.87, or 1.7 percent, to 2,123.76.

Three stocks fell for every one that rose on the New York Stock Exchange, where consolidated volume was very light at 4.5 billion shares, up from an even lighter 3.3 billion shares the day before.

Japan's Nikkei stock average fell 1.3 percent after worries about the high yen hit share prices there.

In Europe, Britain's FTSE 100 fell 1.5 percent, Germany's DAX index dropped 1.3 percent, and France's CAC-40 fell 1.8 percent.

The yield on the 10-year Treasury note, which moves opposite to its price, fell to 2.50 percent from 2.60 percent late Monday. That yield helps set interest rates on mortgages and other consumer loans.

The 10-year note's yield continues to hover around levels not reached since March 2009, when the stock market hit a 12-year low and investors were concerned about the deepening recession. The yield on the two-year note went as low as 0.46 percent, another in a series of record lows.

Stock traders are "taking their cues from the bond market," said Lawrence Glazer, a managing partner at Mayflower Advisors. "It really has been a dramatic and frightening shift" in Treasury prices, which has spooked investors and led to worries about another recession, Glazer said.

Reports due out later in the week will also provide insight into the health of the economy. Data on new home sales, durable goods orders, weekly jobless claims and consumer sentiment are scheduled for later in the week.

The government will also release a revised report on second-quarter gross domestic product. The broadest measure of the country's total economic output is expected to be lower than initially thought, adding to concerns about the pace of the domestic recovery.

 

[bigdog]

Source: http://finance.yahoo.com

It was shaping up to be another crummy day on the stock market Wednesday until investors decided to start looking for beaten-down shares after four straight days of declines.

The Dow Jones industrial average fell as much as 102 points in the first hour of trading after the latest batch of weak reports renewed fears that the economy was slowing down. Sales of new homes fell to their lowest pace on record in July, and durable goods orders were also weak.

But after four straight days of avoiding risk, traders began edging out of safe assets like Treasurys and back into stocks. The Dow ended with a gain of 19.61 points, or 0.2 percent, at 10,060.06.

The NYSE DOW closed HIGHER +19.61 points +0.20% on Wednesday August 25
Sym. Last......... ........Change..........
Dow 10,060.06 +19.61 +0.20%
Nasdaq 2,141.54 +17.78 +0.84%
S&P 500 1,055.33 +3.46 +0.33%
30-yr Bond 3.5750% +0.1100

NYSE Volume 4,677,634,500 (prior day 4,663,190,500)
Nasdaq Volume 2,049,096,120 (prior day 2,171,960,500)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,109.40 -46.55 -0.90%
DAX 5,899.50 -35.94 -0.61%
CAC 40 3,450.19 -40.92 -1.17%

Asia
Symbol...... Last...... .....Change
Nikkei 225 8,845.39 -149.75 -1.66%
Hang Seng 20,634.98 -23.73 -0.11%
Straits Times 2,926.55 +3.70 +0.13%

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

Stocks recover following weak home sales report

Stocks bounce back from an early slump; Dow has its first gain in five days

Stephen Bernard, AP Business Writer, On Wednesday August 25, 2010, 5:51 pm

NEW YORK (AP) -- It was shaping up to be another crummy day on the stock market Wednesday until investors decided to start looking for beaten-down shares after four straight days of declines.

The Dow Jones industrial average fell as much as 102 points in the first hour of trading after the latest batch of weak reports renewed fears that the economy was slowing down. Sales of new homes fell to their lowest pace on record in July, and durable goods orders were also weak.

But after four straight days of avoiding risk, traders began edging out of safe assets like Treasurys and back into stocks. The Dow ended with a gain of 19.61 points, or 0.2 percent, at 10,060.06.

The back-and-forth trading pattern has been typical of the volatility seen on the market in recent weeks, which has been exacerbated by very low trading volumes as investors take summer vacations.

"We rally, we sell off. We rally, we sell off," said Sandy Mehta, principal and chief investment officer of Value Investment Principals. "It's just the nature of the market right now."

Broader market barometers also rose. The Standard & Poor's 500 rose 3.46, or 0.3 percent, to 1,055.33, while the Nasdaq rose 17.78, or 0.8 percent, to 2,141.54.

About three stocks rose for every two that fell on the New York Stock Exchange, where consolidated volume came to a relatively low 4.4 billion shares, versus 4.5 billion shares the day before.

Interest rates initially fell in the bond market following the disappointing economic data, but rose steadily throughout much of the day as traders exited some of their Treasury positions and became more willing to pick up riskier assets.

Oil prices also rose, in another sign that traders are less concerned about finding safe assets. Crude rose more than $1 off its low for the day to settle at $72.52 a barrel.

The yield on the 10-year Treasury note fell as low as 2.42 percent during morning trading before climbing back to 2.54 percent. That yield helps set interest rates on mortgages and other consumer loans.

Overseas, Japanese shares fell again after the yen hit a new 15-year high against the dollar and a nine-year high against the euro. The high yen hurts profitability at major Japanese exporters. Japan's Nikkei stock average fell 1.7 percent. European markets were also lower.

 

[Julia]

ABC's Radio National "Background Briefing" is always a quality program.
This Sunday it's examining the 'flash fall of 1000 points' which occurred a few weeks ago.
From 9.10 am to 10 am Sunday 29 August.
http://www.abc.net.au/rn/backgroundbriefing/stories/2010/2991685.htm

 

[bigdog]

Source: http://finance.yahoo.com

Stocks fell Thursday after early gains from a better report on jobless claims ebbed. The Dow Jones industrial average closed below 10,000 for the first time since early July.

The Dow lost 74 points, having been up as much as 45 earlier. The market has struggled to hold on to gains in recent trading as many investors remain unconvinced that the economic recovery will hold.

Stocks have been on a generally declining trend in August after charging ahead in July. A bevy of poor indicators on the economy, especially weak home sales, has pierced a sense of optimism brought about by a series of strong corporate earnings reports the month before. The Dow has lost ground in five of the past six trading sessions, and has shed 430 points over that time.

The NYSE DOW closed LOWER -74.25 points -0.74% on Thursday August 26
Sym. Last......... ........Change..........
Dow 9,985.81 -74.25 -0.74%
Nasdaq 2,118.69 -22.85 -1.07%
S&P 500 1,047.22 -8.11 -0.77%
30-yr Bond 3.5310% -0.0440

NYSE Volume 3,940,684,250 (prior day 4,677,634,500)
Nasdaq Volume 1,843,379,380 (prior day 2,049,096,120)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,155.84 +46.44 +0.91%
DAX 5,912.58 +13.08 +0.22%
CAC 40 3,475.03 +24.84 +0.72%

Asia
Symbol...... Last...... .....Change
Nikkei 225 8,906.48 +61.09 +0.69%
Hang Seng 20,612.06 -22.92 -0.11%
Straits Times 2,928.09 +1.54 +0.05%

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

Stocks slip as caution about the economy returns

Stocks slide again as caution returns; Dow can't hold on to 10,000

Stephen Bernard, AP Business Writer, On Thursday August 26, 2010, 5:41 pm EDT

NEW YORK (AP) -- Stocks fell Thursday after early gains from a better report on jobless claims ebbed. The Dow Jones industrial average closed below 10,000 for the first time since early July.

The Dow lost 74 points, having been up as much as 45 earlier. The market has struggled to hold on to gains in recent trading as many investors remain unconvinced that the economic recovery will hold.

Stocks have been on a generally declining trend in August after charging ahead in July. A bevy of poor indicators on the economy, especially weak home sales, has pierced a sense of optimism brought about by a series of strong corporate earnings reports the month before. The Dow has lost ground in five of the past six trading sessions, and has shed 430 points over that time.

The market enjoyed a brief reprieve from that malaise early Thursday thanks to an encouraging sign on the job market. The Labor Department reported that first-time claims for jobless benefits fell last week after three straight weekly increases.

Now, it's up to Ben Bernanke to provide the next clues on the economy. The Federal Reserve chairman is delivering a speech early Friday that investors hope will shed light on how weak the U.S. economy really is and whether the Fed may take more steps to revive it.

Peter Cardillo, chief market economist at Avalon Partners Inc., said the market wants to see whether "the pulse of the Fed is beating at a fast rate with anxiety over the economy."

The Dow fell 74.25, or 0.7 percent, to 9,985.81. The Dow had traded below 10,000 several times this week, but hadn't closed below that level since July 6.

Broader market barometers also fell. The Standard & Poor's 500 fell 8.11, or 0.8 percent, to 1,047.22, while the Nasdaq fell 22.85, or 1.1 percent, to 2,118.69.

Falling stocks outpaced rising ones two-to-one on the New York Stock Exchange, where consolidated volume came to a very light 3.8 billion shares.

First-time claims for unemployment benefits dropped to 473,000 last week, a bigger drop than analysts expected. First-time claims had jumped ominously the week before, going above 500,000 for the first time since November.

The latest jobless claims report suggests that hiring remains weak. In a healthy economy, weekly claims usually fall below 400,000. At the height of the recession in March 2009, weekly claims peaked at 651,000.

Treasury prices rose, sending interest rates lower, after the glow from the positive report on jobless claims waned. The yield on the 10-year Treasury note dipped to 2.48 percent from 2.54 percent late Wednesday. Its yield helps set interest rates on mortgages and other consumer loans.

Long-term bond yields are hovering around levels not recorded since early 2009, when the country was in the depths of the recession and stocks hit 12-year lows.

European markets got a lift from an improved consumer confidence reading on Germany's economy. Germany's DAX index rose 0.2 percent. France's CAC-40 climbed 0.7 percent and Britain's FTSE 100 rose 0.9 percent.