NYSE Dow Jones finished today at:

[bigdog]

Source: http://finance.yahoo.com

A free-fall in commodities and an unexpected jump in unemployment claims put financial markets on edge Thursday, dragging the stock market lower.

Oil prices fell nearly $10, or 9 percent, to close below $100 a barrel for the first time since mid-March. Silver lost 8 percent to settle at $34.41; the metal already had its biggest one-day drop in three decades on Tuesday and is nearly $16 off its high of $50 reached last week. And gold fell 2.3 percent to $1,474.90 an ounce.

Commodities like oil and cotton had risen by more than 25 percent over the past year. Some, like silver, remain up nearly 100 percent over this time last year, despite Thursday's decline. Thursday's pullback indicated that some speculators were locking in their gains and that other investors were protecting profits because of concerns that Friday's jobs reports may be worse than originally thought, say experts. That could lead to weaker demand from consumers.

"Speculators are unwinding their positions to take a profit," said Peter Fusaro, the chairman of Global Change Associates, an energy trading consultant in New York.

Stock indexes fell after the Labor Department said that first-time claims for unemployment benefits rose to 474,000 last week, the highest level in eight months. Forecasters didn't see it coming. Economists had expected claims would drop to 410,000.

The Dow Jones industrial average lost 139.41 points, or 1.1 percent, to 12,584.17. The S&P 500 dropped 12.22, or 0.9 percent, to 1,335.10. The Nasdaq composite fell 13.51, or 0.5 percent, to 2,814.72.

The NYSE DOW NYSE DOW closed LOWER -139.41 points -1.10% on Thursday May 5
Sym .......Last .......Change..........
Dow 12,584.17 -139.41 -1.10%
Nasdaq 2,814.72 -13.51 -0.48%
S&P 500 1,335.10 -12.22 -0.91%
30-yr Bond 4.2810% -0.0480

NYSE Volume 5,510,796,500 (prior day 5,275,492,500)
Nasdaq Volume 2,241,177,750 (prior 2,250,614,250)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,919.98 -64.09 -1.07%
DAX 7,376.96 +3.03 +0.04%
CAC 40 4,004.87 -38.26 -0.95%


Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,828.90 +15.10 +0.31%
Shanghai Comp 2,873.38 +7.36 +0.26%
Taiwan We... 9,018.61 +71.26 +0.80%
Nikkei 225 10,004.20 +154.46 +1.57%
Hang Seng 23,259.41 -55.83 -0.24%
Straits Times 3,109.85 -3.91 -0.13%

http://finance.yahoo.com/news/Commo...3.html?x=0&sec=topStories&pos=2&asset=&ccode=

Commodities fall puts financial markets on edge

Commodities fall sharply and stocks continue slide as unemployment claims reach 8-month high

Matthew Craft and David K. Randall, AP Business Writers, On Thursday May 5, 2011, 5:07 pm

NEW YORK (AP) -- A free-fall in commodities and an unexpected jump in unemployment claims put financial markets on edge Thursday, dragging the stock market lower.

Oil prices fell nearly $10, or 9 percent, to close below $100 a barrel for the first time since mid-March. Silver lost 8 percent to settle at $34.41; the metal already had its biggest one-day drop in three decades on Tuesday and is nearly $16 off its high of $50 reached last week. And gold fell 2.3 percent to $1,474.90 an ounce.

Commodities like oil and cotton had risen by more than 25 percent over the past year. Some, like silver, remain up nearly 100 percent over this time last year, despite Thursday's decline. Thursday's pullback indicated that some speculators were locking in their gains and that other investors were protecting profits because of concerns that Friday's jobs reports may be worse than originally thought, say experts. That could lead to weaker demand from consumers.

"Speculators are unwinding their positions to take a profit," said Peter Fusaro, the chairman of Global Change Associates, an energy trading consultant in New York.

Stock indexes fell after the Labor Department said that first-time claims for unemployment benefits rose to 474,000 last week, the highest level in eight months. Forecasters didn't see it coming. Economists had expected claims would drop to 410,000.

The Dow Jones industrial average lost 139.41 points, or 1.1 percent, to 12,584.17. The S&P 500 dropped 12.22, or 0.9 percent, to 1,335.10. The Nasdaq composite fell 13.51, or 0.5 percent, to 2,814.72.

Government bonds rose, pushing long-term interest rates to their lowest levels this year. The yield on the 10-year Treasury note sank to 3.16 percent.

Applications for unemployment benefits have increased in three of the previous four weeks. The jump in claims, along with other signs the economic recovery is losing strength, have raised concerns about what the government's monthly jobs report for April will reveal when it's released on Friday.

Economists forecast that employers added 185,000 workers in April. The unemployment rate is expected to remain unchanged at 8.8 percent.

Meanwhile, gas is nearing $4 per gallon and major packaged goods companies have implemented price increases on every day purchases, leading some analysts to worry that consumers will cut back on spending.

Prior to Wednesday, rising earnings had been driving stocks up in recent weeks. But even strong results reported Thursday by several large companies did not outweigh concerns about the economic recovery.

General Motors Co. was among the companies reporting higher profits Thursday. GM said its earnings more than tripled on stronger sales in the U.S. and China. Despite the results, GM fell 3 percent.

Other companies that reported strong earnings rose. Whole Foods Market Inc. gained 0.4 percent after its quarterly report topped Wall Street's estimates. Estee Lauder Cos. gained 1.2 percent after it said earnings doubled on stronger sales.

Despite losses over the last two days, the broader markets are up -- the S&P, for one, is up 15 percent, not including dividends -- in the year since the "flash crash" led many investors to flee the market.

Friday marks the one-year anniversary of the "flash crash" when the Dow sank nearly 1,000 points in less than a half hour. Some stocks lost a third of their value in four minutes.

The market regained most of its losses by the end of the day, but the wild ride left a mark. Fund managers say the "flash crash" made everyday investors, still wary after the financial crisis, more reluctant to trust their savings to the stock market. They began pulling cash out of mutual funds that invest in stocks and favoring bond funds instead.

A pair of economic reports pushed stocks lower Wednesday. Payroll processor ADP said companies added fewer jobs in April than economists had expected. In a separate report, the Institute for Supply Management said its service sector index rose at the slowest pace in 8 months in April.

Two stocks fell for every one that rose on the New York Stock Exchange Thursday. Consolidated volume came to 4.8 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

The biggest corporate hiring spree in five years ended a weeklong slide in the stock market.

The Labor Department reported Friday that private employers hired 268,000 people last month, the most since February 2006. Taking into account job cuts of government workers, the economy added a total of 244,000 jobs overall last month, well above the 185,000 jobs that analysts had predicted.

It was the third straight month with an increase of more than 200,000 jobs.

The unemployment rate rose, however, to 9.0 percent from 8.8 percent in part because more people who resumed looking for work.

The news on job growth helped lift the dollar, nudged up oil prices and reversed a four-day slump for stocks.

"Everyone was a bit surprised by the jobs number," said Frank Fantozzi, the chief executive of Planned Financial Services, a Cleveland, Ohio-based firm. "It's a good indication for the markets that we are still in the growth stage."

The Dow Jones industrial average gained 54.57 points, or 0.4 percent, to close at 12,638.74. The Standard & Poor's 500 index rose 5.10, or 0.4 percent, to 1,340.20. The Nasdaq composite rose 12.84, or 0.5 percent, to 2,827.56.

The NYSE DOW NYSE DOW closed HIGHER +54.57 points +0.43% on Friday May 6
Sym .......Last .......Change..........
Dow 12,638.74 +54.57 +0.43%
Nasdaq 2,827.56 +12.84 +0.46%
S&P 500 1,340.20 +5.10 +0.38%
30-yr Bond 4.2950% +0.0140

NYSE Volume 4,951,299,000 (prior day 5,510,796,500)
Nasdaq Volume 2,054,519,750 (prior 2,241,177,750)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,976.77 +56.79 +0.96%
DAX 7,492.25 +115.29 +1.56%
CAC 40 4,058.01 +53.14 +1.33%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,816.10 -12.80 -0.27%
Shanghai Comp 2,864.15 -8.25 -0.29%
Taiwan We... 8,977.23 -41.38 -0.46%
Nikkei 225 9,859.20 -145.00 -1.45%
Hang Seng 23,159.14 -102.47 -0.44%
Straits Times 3,103.80 -6.05 -0.19%

http://finance.yahoo.com/news/Stocks-rally-as-hiring-spree-apf-824926537.html?x=0

Stocks rally as hiring spree surprises Wall Street

Stocks reverse weeklong slump after report shows job growth well above expectations

Matthew Craft and David K. Randall, AP Business Writers, On Friday May 6, 2011, 4:43 pm EDT

NEW YORK (AP) -- The biggest corporate hiring spree in five years ended a weeklong slide in the stock market.

The Labor Department reported Friday that private employers hired 268,000 people last month, the most since February 2006. Taking into account job cuts of government workers, the economy added a total of 244,000 jobs overall last month, well above the 185,000 jobs that analysts had predicted.

It was the third straight month with an increase of more than 200,000 jobs.

The unemployment rate rose, however, to 9.0 percent from 8.8 percent in part because more people who resumed looking for work.

The news on job growth helped lift the dollar, nudged up oil prices and reversed a four-day slump for stocks.

"Everyone was a bit surprised by the jobs number," said Frank Fantozzi, the chief executive of Planned Financial Services, a Cleveland, Ohio-based firm. "It's a good indication for the markets that we are still in the growth stage."

The Dow Jones industrial average gained 54.57 points, or 0.4 percent, to close at 12,638.74. The Standard & Poor's 500 index rose 5.10, or 0.4 percent, to 1,340.20. The Nasdaq composite rose 12.84, or 0.5 percent, to 2,827.56.

Industrials companies that benefit from global building and expansion projects led the market following the jobs report. Caterpillar Inc. rose nearly 1 percent. Boeing Co. rose 1.1 percent.

But Friday's bounce failed to make up for losses earlier this week, when fears of an economic slowdown and weaker-than-expected earnings dragged down the major stock indexes. All three ended the week down more than 1 percent. The Russell 2000, an index of small companies that reached record highs just a week earlier, ended the week down 3.7%.

The higher jobs number helped stem a sell-off in commodities brought on by fears that the economy was sputtering. Regular investors and speculators had begun to flee commodities in an effort to lock in profits in case the economy slowed even further.

"The jobs report put an end to the idea that growth appeared to be weakening, which is what really fueled most of the declines in commodities this week," said Jeffery Kleintop, the chief strategist at LPL Financial.

The dollar also got a lift. An index that measures the dollar against six major currencies gained 1 percent.

Financial markets are markedly different from this time last year. Friday marks the one-year anniversary of the "Flash Crash." Stocks tumbled that day when one large trade overwhelmed the market's computer servers and sent prices into a tailspin. Though stock prices made up most of their losses that day, the sudden drop fueled skepticism that stocks were a safe investment. That led many investors to pull money out of the stock market.

Two shares rose for every one that fell on the New York Stock Exchange. Trading volume was 4.4 billion shares

8930

 

[bigdog]

Source: http://finance.yahoo.com


NEW YORK (AP) -- Commodity prices recovered some of last week's losses Monday, helping to lift the stocks of energy and materials companies. The broader market also rose despite new worries about Greece's debt problems.

Oil prices once again moved above $100 a barrel and pushed energy stocks higher. Marathon Oil Corp. rose 5.3 percent. Baker Hughes Inc., which helps companies drill for oil and gas, gained 3.4 percent. Energy companies within the S&P 500 rose nearly 2 percent, the most among the 10 industries in the index.

The S&P 500 added 6.09 points, or 0.5 percent, to close at 1,346.29. The Dow Jones industrial average gained 45.94 points, or 0.4 percent, to 12,684.68. The Nasdaq composite index rose 15.69 points, or 0.6 percent, to 2,843.25.

The rise in commodity prices helped other industries as well. Producers of metals and other materials rose 1.5 percent, second best among the S&P 500 groups, thanks to a 5 percent increase in silver prices and a 3 percent increase in corn. Metals and other commodities suffered steep losses last week, when silver tumbled 27 percent and oil sank 15 percent because of fears of weaker global demand and higher margin requirements that were meant to lower the influence of speculators whose strategy of buying on margin is considered to be a reason why commodities have risen so steeply over the last year.

The NYSE DOW NYSE DOW closed HIGHER +45.94 +0.36% on Monday May 9
Sym .......Last .......Change..........
Dow 12,684.68 +45.94 +0.36%
Nasdaq 2,843.25 +15.69 +0.55%
S&P 500 1,346.29 +6.09 +0.45%
30-yr Bond 4.3010% +0.0060

NYSE Volume 3,386,336,750 (prior day 4,951,299,000)
Nasdaq Volume 1,656,821,625 (prior 2,054,519,750)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,942.69 -34.08 -0.57%
DAX 7,410.52 -81.73 -1.09%
CAC 40 4,007.26 -50.75 -1.25%


Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,831.70 +15.60 +0.32%
Shanghai Comp 2,873.03 +9.14 +0.32%
Taiwan We... 9,035.48 +58.25 +0.65%
Nikkei 225 9,794.38 -64.82 -0.66%
Hang Seng 23,336.00 +176.86 +0.76%
Straits Times 3,136.94 +37.42 +1.21%

http://finance.yahoo.com/news/Energ...9.html?x=0&sec=topStories&pos=1&asset=&ccode=

Energy, metals stocks rise with commodity prices

Rising commodities lift energy, metals stocks but worries flare again about Greek debt

Stan Choe and David K. Randall, AP Business Writers, On Monday May 9, 2011, 6:27 pm

NEW YORK (AP) -- Commodity prices recovered some of last week's losses Monday, helping to lift the stocks of energy and materials companies. The broader market also rose despite new worries about Greece's debt problems.

Oil prices once again moved above $100 a barrel and pushed energy stocks higher. Marathon Oil Corp. rose 5.3 percent. Baker Hughes Inc., which helps companies drill for oil and gas, gained 3.4 percent. Energy companies within the S&P 500 rose nearly 2 percent, the most among the 10 industries in the index.

The S&P 500 added 6.09 points, or 0.5 percent, to close at 1,346.29. The Dow Jones industrial average gained 45.94 points, or 0.4 percent, to 12,684.68. The Nasdaq composite index rose 15.69 points, or 0.6 percent, to 2,843.25.

The rise in commodity prices helped other industries as well. Producers of metals and other materials rose 1.5 percent, second best among the S&P 500 groups, thanks to a 5 percent increase in silver prices and a 3 percent increase in corn. Metals and other commodities suffered steep losses last week, when silver tumbled 27 percent and oil sank 15 percent because of fears of weaker global demand and higher margin requirements that were meant to lower the influence of speculators whose strategy of buying on margin is considered to be a reason why commodities have risen so steeply over the last year.

Financial stocks were the only industry group to decline. Citigroup Inc. fell 2.7 percent on its first day of trading after completing a one-for-ten reverse split that drastically increased its share price by lowering the number of available shares. It is now trading in the $40 range for the first time since 2007. Companies often turn to reverse splits to raise their share prices as a way to attract institutional investors who may be prohibited from buying into companies with share prices in the single digits.

Better sales pushed other companies higher. The nation's largest food distributor, Sysco Corp., jumped 10.7 percent after reporting a 4 percent rise in income. Analysts had expected a drop. McDonald's Corp. rose 0.8 percent after reporting that its global sales rose last month. The strongest growth came from its restaurants abroad, which stretch from Europe to the Middle East to Asia. Tyson Foods Inc. lost 6 percent after reporting that its earnings were flat from a year ago.

Dollar Thrifty Automotive Group Inc. rose 13.8 percent after Hertz Global Holdings Inc. raised its buyout offer for the car rental company to more than $2.2 billion. Rival Avis Budget Group Inc. is also trying to buy Dollar Thrifty.

Most companies in the S&P 500 have reported earnings for the first quarter, and the trends have been strong. Through Friday, nearly three out of four companies released earnings that beat analysts' expectations.

Economic data, by contrast, has been mixed. Growth for the manufacturing industry slowed last month, and the economy grew at a lower-than-expected 1.8 percent in the first quarter.

European stock markets fell on worries that Greece will need more time or assistance from other EU countries to make payments on its debt, or worse, the country could partially default on the debt that it owes to bond investors. Standard & Poor's downgraded Greece's debt rating even further into junk status. The Euro Stoxx 50, an index of large companies in countries that use the euro, fell 1.7 percent.

The yield on the 10-year Treasury note remained close to its lowest point of the year, 3.13 percent. It fell that low on Friday after a German magazine claimed that Greece may drop the euro currency. Greece's government strongly denied the claim. Worried investors have bought Treasurys, traditionally seen as a safe investment. When Treasury prices rise, their yields fall.

Two stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume came to 3 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

Corporate deals and strong earnings have been credited with driving stocks higher this year -- and Tuesday saw a bit of each.

The biggest news, that Microsoft Inc. said it would buy Internet telephone service Skype for $8.5 billion in cash, is another sign that cash-rich companies are starting to spend. Corporations built up a record amount of cash over the last several years, and they have started using it to purchase rivals, pay dividends and also expand their businesses. That, in turn, has led to increased confidence among money managers and other investors that stocks are going to continue to rise.

Large companies also want to put their cash stockpiles to work because they're getting minimal returns on them, said Oliver Pursche, president of Gary Goldberg Financial Services. Interest rates for short-term savings pay less than 1 percent. "The crisis is behind us," he said. Companies "don't need this much cash anymore."

Microsoft had $50.15 billion in cash and short-term investments at the end of March.

The Skype purchase would be Microsoft's largest in its 36-year history. It follows AT&T Inc.'s announcement in March that it would buy T-Mobile USA for $39 billion and Johnson & Johnson's $21.3 billion deal announced last month to acquire Synthes, a maker of medical instruments and implants.

The NYSE DOW NYSE DOW closed HIGHER +75.68 points +0.60% on Tuesday May 10
Sym .......Last .......Change..........
Dow 12,760.36 +75.68 +0.60%
Nasdaq 2,871.89 +28.64 +1.01%
S&P 500 1,357.16 +10.87 +0.81%
30-yr Bond 4.3340% +0.0330

NYSE Volume 3,805,438,000 (prior day 3,386,336,750)
Nasdaq Volume 2,036,290,000 (prior 1,656,821,625)

NYSE Volume 3,386,336,750 (prior day 4,951,299,000)
Nasdaq Volume 1,656,821,625 (prior 2,054,519,750)

Europe
Symbol... ......Last .....Change.......
FTSE 100 6,018.89 +76.20 +1.28%
DAX 7,501.52 +91.00 +1.23%
CAC 40 4,052.51 +45.25 +1.13%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,803.60 -28.10 -0.58%
Shanghai Comp 2,889.82 -0.81 -0.03%
Taiwan We... 9,023.28 -12.20 -0.14%
Nikkei 225 9,818.76 +24.38 +0.25%
Hang Seng 23,336.00 +176.86 +0.76%
Straits Times 3,157.16 +20.22 +0.64%

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

Microsoft's $8.5 billion Skype deal lifts stocks

Stocks rise after Microsoft $8.5B deal for Skype; Dean Foods, others report strong earnings


Stan Choe and Matthew Craft, AP Business Writers, On Tuesday May 10, 2011, 4:54 pm

NEW YORK (AP) -- Corporate deals and strong earnings have been credited with driving stocks higher this year -- and Tuesday saw a bit of each.

The biggest news, that Microsoft Inc. said it would buy Internet telephone service Skype for $8.5 billion in cash, is another sign that cash-rich companies are starting to spend. Corporations built up a record amount of cash over the last several years, and they have started using it to purchase rivals, pay dividends and also expand their businesses. That, in turn, has led to increased confidence among money managers and other investors that stocks are going to continue to rise.

Large companies also want to put their cash stockpiles to work because they're getting minimal returns on them, said Oliver Pursche, president of Gary Goldberg Financial Services. Interest rates for short-term savings pay less than 1 percent. "The crisis is behind us," he said. Companies "don't need this much cash anymore."

Microsoft had $50.15 billion in cash and short-term investments at the end of March.

The Skype purchase would be Microsoft's largest in its 36-year history. It follows AT&T Inc.'s announcement in March that it would buy T-Mobile USA for $39 billion and Johnson & Johnson's $21.3 billion deal announced last month to acquire Synthes, a maker of medical instruments and implants.

CKx Inc., which owns the rights to the names and images of Muhammad Ali and Elvis Presley, jumped 22 percent after it agreed to be bought by private equity investors. The buyout group will pay about $511 million for the company, which also owns the "American Idol" television show.

Also on Tuesday, dairy producer Dean Foods Co. and Medifast Inc. reported earnings that beat analysts' expectations. Dean had a stronger start to the year than it expected and raised its forecast for full-year earnings. The company also said it would raise prices to help combat falling milk sales. Dean jumped 11 percent.

Medifast, which operates a weight-loss program, rose 17 percent.

Boston Scientific Corp. sank 9 percent after the medical device company said its president and CEO, Ray Elliott, will retire at the end of the year. The company is looking for his replacement.

The Dow Jones industrial average rose 75.68 points, or 0.6 percent, to close at 12,760.36. The Standard & Poor's 500 index rose 10.87 points, or 0.8 percent, to 1,357.16. The Nasdaq composite index gained 28.64 points, or 1 percent, to 2,871.89.

Stocks have risen sharply in 2011, driven by strong earnings reports from major U.S. companies such as heavy equipment maker Caterpillar Inc. and Apple Inc. The S&P 500 is up 8 percent, more than it gained in five of the last 10 full calendar years.

Companies in the S&P 500 are on track to report first-quarter earnings growth of 19 percent, according to FactSet. That's far ahead of the 11 percent that analysts were forecasting at the end of 2010. Nearly nine out of ten companies in the index have reported results already.

Crude oil wavered but gained $1.33 to settle at $103.88 per barrel. The Bureau of Labor Statistics said Tuesday that higher fuel costs drove prices for imports into the United States up 2.2 percent last month. It's the first time import prices have topped 2 percent in consecutive months since June 2008.

Metals futures recovered more of their losses from last week's sell-off. Silver rose to $38.48 per ounce. Silver has more than doubled over the last year, but is still about $10 below where it was at the end of April.

Nearly five shares rose for every one that fell on the New York Stock Exchange. Trading volume was 3.5 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

Tumbling demand for commodities and a drop in the euro led to a broad stock sell-off Wednesday that pulled the Dow Jones industrial average down 130 points.

Demand for gasoline in the U.S. fell by the largest amount in seven weeks, the Energy Information Administration said, a signal that consumers are conserving money as gas prices near a national average of $4 a gallon. Gas futures fell almost 8 percent. Crude oil fell back below $100 a barrel, a loss of more than 4 percent.

Fewer fill-ups may be an early sign of a broader drop in consumer and business spending as customers forgo trips to malls and restaurants and companies ship fewer products. That, in turn, could lead to lower corporate earnings and halt a stock rally that has sent the stock market up 7 percent this year.

"People are becoming more conservative in their outlook and their spending as oil prices have risen, and that's making the market become more concerned about growth," said Quincy Krosby, the chief strategist at Prudential Financial.

The NYSE DOW NYSE DOW closed LOWER -130.33 points -1.02% on Wednesday May 11
Sym .......Last .......Change..........
Dow 12,630.03 -130.33 -1.02%
Nasdaq 2,845.06 -26.83 -0.93%
S&P 500 1,342.08 -15.08 -1.11%
30-yr Bond 4.2960% -0.0380

NYSE Volume 4,324,863,000 (prior day 3,805,438,000)
Nasdaq Volume 2,290,372,500 (prior 2,036,290,000)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,976.00 -42.89 -0.71%
DAX 7,495.05 -6.47 -0.09%
CAC 40 4,058.08 +5.57 +0.14%


Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,858.20 +54.60 +1.14%
Shanghai Comp 2,883.89 -6.74 -0.23%
Taiwan We... 9,020.40 -2.88 -0.03%
Nikkei 225 9,864.26 +45.50 +0.46%
Hang Seng 23,291.80 -44.20 -0.19%
Straits Times 3,177.18 +20.92 +0.66%

http://finance.yahoo.com/news/Slump...77.html?x=0&sec=topStories&pos=2&asset=&ccode

Slumping oil, commodity prices halt stock rally

Falling oil and metals prices derail a 3-day rally in stocks; Disney disappoints

Stan Choe and David K. Randall, AP Business Writers, On Wednesday May 11, 2011, 4:49 pm EDT

NEW YORK (AP) -- Tumbling demand for commodities and a drop in the euro led to a broad stock sell-off Wednesday that pulled the Dow Jones industrial average down 130 points.

Demand for gasoline in the U.S. fell by the largest amount in seven weeks, the Energy Information Administration said, a signal that consumers are conserving money as gas prices near a national average of $4 a gallon. Gas futures fell almost 8 percent. Crude oil fell back below $100 a barrel, a loss of more than 4 percent.

Fewer fill-ups may be an early sign of a broader drop in consumer and business spending as customers forgo trips to malls and restaurants and companies ship fewer products. That, in turn, could lead to lower corporate earnings and halt a stock rally that has sent the stock market up 7 percent this year.

"People are becoming more conservative in their outlook and their spending as oil prices have risen, and that's making the market become more concerned about growth," said Quincy Krosby, the chief strategist at Prudential Financial.

The fall in demand for gas means that traders will take a close look at Thursday's weekly report on first-time applications for unemployment benefits. If they rise, that could indicate companies are cutting back in other areas as well, Krosby said. Stocks rose broadly on Friday after a report that companies added more than 200,000 jobs in April.

Stocks fell broadly, with energy and materials companies suffering the worst declines. The Dow lost 1 percent to close at 12,630.03. The S&P 500 fell 15.08, or 1.1 percent, to 1,342.08. The Nasdaq composite lost 26.83, or 0.9 percent, to 2,845.06.

The market's broad sell off, which sent all 10 industry groups in the S&P 500 index lower, is a sign that the economic recovery still seems uncertain at times. Strong earnings have been carrying the market higher since the beginning of 2011. On Tuesday the S&P 500 climbed for the third straight day to within 0.5 percent of its highest close for the year.

"Every time that stocks start to go down a little bit, you're seeing more selling pile on because people have made so much profit over the past 9 months," said Uri Landesman, president of Platinum Partners, a New York-based hedge fund.

The market's losses accelerated shortly before noon Wednesday. The dollar and government bond prices rose as traders moved money into safer assets. The dollar rose 0.8 percent against a group of other major currencies. The euro dropped 1.5 percent against the dollar.

The yield on the 10-year Treasury note fell to 3.16 percent from 3.22 percent late Tuesday. Bond yields fall when their prices rise.

Energy stocks fell 3 percent, the most of any of the 10 industries in the S&P 500 index. Denbury Resources Inc. and Cabot Oil & Gas Corp. both fell more than 4 percent.

Materials producers also struggled after metals prices sank. Freeport McMoRan Copper & Gold Inc., a miner, fell 5.6 percent. Copper fell 3.2 percent, and silver lost 7.7 percent. Silver fell sharply last week as part of a sell-off in commodities.

Commodities are still more expensive than they were a year ago. High oil prices helped push the nation's trade deficit up 6 percent to $48.2 billion in March from February. U.S. companies sold more automobiles and other goods and services to customers abroad, but it wasn't enough to make up for an 18 percent rise in oil imports.

Disney's results late Tuesday fell short of expectations, and its stock fell 54 percent, the most of the 30 stocks that make up the Dow. The earthquake that struck Japan in March cut into revenues at its theme parks there, and its movie studio profits took a hit from the box-office bomb "Mars Needs Moms."

Macy's Inc. was among the few companies that rose. The company jumped 7.7 percent after its earnings blew past expectations. The parent of Macy's and Bloomingdale's department stores said its first-quarter net income more than quintupled to $131 million from $23 million. The company raised its forecast for full-year earnings and doubled its quarterly dividend to 10 cents.

American International Group Inc. rose 3.5 percent after the government said it would sell 200 million of the 1.66 billion shares in the insurer that it owns to the public. The Treasury Department owns 92 percent of AIG after the company got bailed out during the financial crisis.

Intel Corp. rose 1.6 percent after the chip maker increased its quarterly dividend to 21 cents from 16 cents.

Three stocks fell for every one that rose on the New York Stock Exchange. Consolidated volume came to 3.8 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

A small recovery in commodities and a rally in companies that make consumer staples like toilet paper and pasta helped the financial markets reverse a decline Thursday to end the day with modest gains.

Consumer staples and health care led the market due in part to concerns that high gas prices will erode consumer spending and cut into corporate earnings. Companies that sell everyday items or provide health-related products and services are less dependent on economic growth for their profits since people typically spend money on such items even if they cut back elsewhere. Coca-Cola, McDonald's and Kraft Foods were among the day's biggest gainers.

Retail sales rose 0.5 percent, but that number dropped to 0.2 percent after excluding gas prices. Higher energy costs also pushed wholesale prices -- the amount companies pay for goods -- up 0.8 percent in April, the government said.

"(The market) is watching to see the extent to which higher energy prices crowd out consumption more broadly," said Andrew Goldberg, a strategist at JP Morgan Funds. If that happens, consumer staples -- along with utilities -- are typically better investments because their products serve needs, not wants and because they pay higher dividends.

The Dow Jones industrial average gained 65.89 points, or 0.5 percent, to 12,695.92. The S&P 500 added 6.57, or 0.5 percent, to 1,348.65. The Nasdaq composite rose 17.98, or 0.6 percent, to 2,863.04.The Dow Jones industrial average came back from a 93-point deficit earlier in the day.

The NYSE DOW NYSE DOW closed HIGHER +65.89 points +0.52% on Wednesday May 12
Sym .......Last .......Change..........
Dow 12,695.92 +65.89 +0.52%
Nasdaq 2,863.04 +17.98 +0.63%
S&P 500 1,348.65 +6.57 +0.49%
30-yr Bond 4.3520% +0.0560

NYSE Volume 4,254,380,500 (prior day 4,324,863,000)
Nasdaq Volume 2,233,684,250 (prior 2,290,372,500)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,944.96 -31.04 -0.52%
DAX 7,443.95 -51.10 -0.68%
CAC 40 4,023.29 -34.79 -0.86%


Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,776.60 -81.60 -1.68%
Shanghai Comp 2,883.89 -6.74 -0.23%
Taiwan We... 9,033.68 +13.28 +0.15%
Nikkei 225 9,716.65 -147.61 -1.50%
Hang Seng 23,073.76 -218.04 -0.94%
Straits Times 3,130.45 -46.73 -1.47%

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

Stocks edge higher as commodity slide eases

Stocks recover as trading in oil and other commodities stabilizes

Matthew Craft and David K. Randall, AP Business Writers, On Thursday May 12, 2011, 5:22 pm EDT

NEW YORK (AP) -- A small recovery in commodities and a rally in companies that make consumer staples like toilet paper and pasta helped the financial markets reverse a decline Thursday to end the day with modest gains.

Consumer staples and health care led the market due in part to concerns that high gas prices will erode consumer spending and cut into corporate earnings. Companies that sell everyday items or provide health-related products and services are less dependent on economic growth for their profits since people typically spend money on such items even if they cut back elsewhere. Coca-Cola, McDonald's and Kraft Foods were among the day's biggest gainers.

Retail sales rose 0.5 percent, but that number dropped to 0.2 percent after excluding gas prices. Higher energy costs also pushed wholesale prices -- the amount companies pay for goods -- up 0.8 percent in April, the government said.

"(The market) is watching to see the extent to which higher energy prices crowd out consumption more broadly," said Andrew Goldberg, a strategist at JP Morgan Funds. If that happens, consumer staples -- along with utilities -- are typically better investments because their products serve needs, not wants and because they pay higher dividends.

The Dow Jones industrial average gained 65.89 points, or 0.5 percent, to 12,695.92. The S&P 500 added 6.57, or 0.5 percent, to 1,348.65. The Nasdaq composite rose 17.98, or 0.6 percent, to 2,863.04.The Dow Jones industrial average came back from a 93-point deficit earlier in the day.

The Labor Department said applications for unemployment benefits fell last week to 434,000, slightly less than what economists expected. That report also contributed to the early morning market losses.

Crude oil recovered from steep losses earlier in the day and finished nearly 1 percent higher, but remained below $100 a barrel. Other commodities also recovered. As copper and gold prices went up, materials companies moved higher. Freeport McMoRan Copper & Gold Inc. reversed its losses from the morning and finished nearly 1 higher.

Stock trading has been affected by huge moves in commodities markets over the past two weeks, including a 9 percent drop in the price of oil a week ago and a 27 percent plunge in the price of silver last week. The volatility in commodities and stocks led investors to park money in less risky and more stable assets like government bonds.

Energy companies dropped slightly. ConocoPhillips fell 1.3 percent. A drop in oil prices translates into declining revenues for energy companies.

U.S. government bonds and the dollar both fell as investors became more comfortable holding stocks, commodities and other riskier assets. The dollar fell 0.2 percent against a group of six other currencies, and the yield on the 10-year note rose to 3.23 percent from 3.16 percent late Wednesday. Bond yields rise when their prices fall.

Commodities and stocks have both benefited from the Federal Reserve's program to boost the economy by buying $600 billion in Treasury bonds. The Fed's program had the effect of pushing yields on government bonds lower, encouraging investors to move money into stocks and commodities.

With the Fed's effort coming to an end in June, the same investments are likely to fall, said Doug Roberts, the chief investment strategist for Channel Capital Research.

"When the Fed pulls back, investors cut back," Roberts said.

Some well-known companies fell more than the broad markets. Cisco Systems Inc. fell 4.8 percent after the maker of computer networking equipment reported an 18 percent slide in earnings and lowered its profit forecast. It also plans to cut jobs.

Goldman Sachs Group Inc. fell 3.5 percent after it was downgraded by analysts due to a Senate investigation and a Rolling Stone article that argued that the Justice Department should bring charges against the investment bank for defrauding investors.

Two stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume came to 3.7 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

The Dow fell 0.3 percent over the week and 1.7 percent for the month. The Nasdaq was flat for the week and is down 1.6 percent for the month.

Since when does the stock market take its cues from the market for silver, oil and pork bellies? When it's really the dollar that's driving the action.

The stock market rally, which began in August, relied on stronger earnings, rising commodity prices and a weak dollar, said Andrew Wilkinson, senior market analyst at Interactive Brokers. But prices for commodities have dropped by 10 percent this month, and swung wildly over the past week. Oil, for example, was nearly $114 a barrel at the end of April. On Tuesday oil settled at $104, fell, rose and fell again, to close at $99.65 on Friday.

Falling commodity prices are widely blamed for driving down stocks. The Standard & Poor's 500 index has lost 1.9 percent so far in May. Other indexes are down more than 1.5 percent for the month.

It's not simply a case of investors selling because they believe declining oil prices are a sign that the economy is losing strength. Rather, since commodities are mainly traded in dollars, it's the dollar's recent rise that is largely responsible for pushing down commodity prices. If the dollar gains strength against other currencies, it takes fewer dollars to buy the same barrel of oil.


The NYSE DOW NYSE DOW closed LOWER -100.17 points -0.79% on Friday May 13
Sym .......Last .......Change..........
Dow 12,595.75 -100.17 -0.79%
Nasdaq 2,828.47 -34.57 -1.21%
S&P 500 1,337.77 -10.88 -0.81%
30-yr Bond 4.3260% -0.0260

NYSE Volume 3,956,685,750 (prior day 4,254,380,500)
Nasdaq Volume 1,930,908,375 (prior 2,233,684,250)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,925.87 -19.09 -0.32%
DAX 7,403.31 -40.64 -0.55%
CAC 40 4,018.85 -4.44 -0.11%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,787.30 +10.70 +0.22%
Shanghai Comp 2,871.87 +27.79 +0.98%
Taiwan We... 9,006.61 -27.07 -0.30%
Nikkei 225 9,648.77 -67.88 -0.70%
Hang Seng 23,276.27 +202.51 +0.88%
Straits Times 3,163.68 +33.23 +1.06%



http://finance.yahoo.com/news/Stock...age/headcontent/main/3665250489//date/asc/1/0

Stocks fall as European financial crisis expands

Stocks slide after European officials say bailouts will be larger than originally forecast

Matthew Craft and David K. Randall, AP Business Writers, On Friday May 13, 2011, 5:22 pm

NEW YORK (AP) -- Since when does the stock market take its cues from the market for silver, oil and pork bellies? When it's really the dollar that's driving the action.

The stock market rally, which began in August, relied on stronger earnings, rising commodity prices and a weak dollar, said Andrew Wilkinson, senior market analyst at Interactive Brokers. But prices for commodities have dropped by 10 percent this month, and swung wildly over the past week. Oil, for example, was nearly $114 a barrel at the end of April. On Tuesday oil settled at $104, fell, rose and fell again, to close at $99.65 on Friday.

Falling commodity prices are widely blamed for driving down stocks. The Standard & Poor's 500 index has lost 1.9 percent so far in May. Other indexes are down more than 1.5 percent for the month.

It's not simply a case of investors selling because they believe declining oil prices are a sign that the economy is losing strength. Rather, since commodities are mainly traded in dollars, it's the dollar's recent rise that is largely responsible for pushing down commodity prices. If the dollar gains strength against other currencies, it takes fewer dollars to buy the same barrel of oil.

"Suddenly, the dollar is no longer the whipping boy," Wilkinson said. "And if the dollar is no longer the whipping boy, you can no longer count on a commodity-driven rebound to push up the stock market."

Worries over Europe pushed the dollar up nearly 1 percent on Friday and erased the week's gains in the stock market.

The Dow Jones industrial average lost 100.17 points, or 0.8 percent, to close at 12,595.75. The S&P 500 fell 10.88, or 0.8 percent, to 1,337.77. The Nasdaq lost 34.57, or 1.2 percent, to 2,828.47. The slide turned the Dow and S&P lower for the week.

Financial stocks fared the worst in the past week, followed by material and energy companies. Both Bank of America Corp. and JPMorgan Chase & Co. dropped 2 percent on Friday.

Companies in the energy sector fell the most in May. Exxon Mobil Corp. lost 8 percent so far this month.

The Dow fell 0.3 percent over the week and 1.7 percent for the month. The Nasdaq was flat for the week and is down 1.6 percent for the month.

The Russell 2000, an index of small companies, ended the week up nearly 0.3 percent, but is down the most so far this month, declining 3.42 percent.

In addition to the dollar's rising value, several other forces have led to the recent rout in commodity prices. A requirement that traders back their bets on silver with more cash spurred a sell-off in metals, which some traders say cascaded into other markets. Reports over the past week showing weaker demand and rising supplies for both crude oil and gas have pushed down energy prices. U.S. oil inventories have climbed to their highest level since May 2009.

Meanwhile, betting on a weak dollar has been a popular move. For much of the last year, traders bought commodities and sold dollars.

The dollar's sudden strength has caused them to reverse those bets. "That's been the big trade," said Dan Greenhaus, chief economic strategist at Miller Tabak. "And it's getting undone."

The downside: eventually a stronger dollar makes U.S. products more expensive to foreign buyers. Exports decline. Companies that sell everything from sneakers to aircraft feel their profits pinched.

Stocks in countries that use the euro fell after the European Union warned that the debt loads of Greece, Ireland and Portugal will be larger than originally thought. Officials said that Greece needs to cut spending further, which led to concerns that the assistance the country has already received won't be enough. The Euro Stoxx 50, an index of large companies in countries that use the euro, fell 0.8 percent.

Fears of a deepening financial crisis overshadowed reports that found that consumers are feeling more confident in the U.S. economy and that inflation remains in check. Consumer prices rose 0.4 percent in April, the Labor Department said. That was in line with economist's expectations.

Most of the increases came in volatile food and energy prices. Stripping those out, prices rose 0.2 percent and stayed below the rate of inflation that the Federal Reserve considers normal.

"Inflation doesn't look like the risk that everyone feared," said Doug Cote, the chief market strategist at ING Investment Management.

The prices that consumers pay have risen 3.2 percent over the last 12 months, the biggest 12-month gain since October 2008. Companies like Kimberly-Clark Corp. and Colgate-Palmolive Co. that sell households products have raised prices because of higher commodity costs that have cut into their profit margins. Costs for raw materials like oil, coffee, and cattle have risen more than 10 percent this year.

More than two stocks fell for every one that rose on the New York Stock Exchange. Trading volume was 3.5 billion shares.

9508

 

[bigdog]

Source: http://finance.yahoo.com

Technology company troubles and renewed concerns about Europe's debt dragged stocks lower for a second day.

European finance ministers approved $110 billion in rescue loans to Portugal on Monday, but have yet to decide on a second rescue package for Greece.

The arrest of the head of the International Monetary Fund is expected to make solving Greece's problems more difficult. The official, Dominique Strauss-Kahn, had been heavily involved in trying to fix the debt crises in Portugal and Greece. He is being held without bail on charges of sexually assaulting a hotel employee in New York City.

Technology companies sustained the largest losses in Monday trading. Yahoo! Inc. and Amazon.com Inc. fell by more than 4 percent. Yahoo is in a dispute with Alibaba Group Holding Ltd. over its online payment business. Yahoo owns a 40 percent stake in the company, which transferred its online payment business to another company without consulting Yahoo.

Investors are growing increasingly concerned over the prospect of an unprecedented U.S. default on its debt. Treasury Secretary Timothy Geithner told Congressional lawmakers in a letter Monday that the agency is taking steps to postpone a default.

The NYSE DOW NYSE DOW closed LOWER -47.38 points -0.38% on Monday May 16
Sym .......Last .......Change..........
Dow 12,548.37 -47.38 -0.38%
Nasdaq 2,782.31 -46.16 -1.63%
S&P 500 1,329.47 -8.30 -0.62%
30-yr Bond 4.2760% -0.0500

NYSE Volume 3,888,634,000 (prior 3,956,685,750)
Nasdaq Volume 2,071,148,875 (prior 1,930,908,375)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,923.69 -2.18 -0.04%
DAX 7,387.54 -15.77 -0.21%
CAC 40 3,989.82 -29.03 -0.72%


Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,724.20 -63.10 -1.32%
Shanghai Comp 2,849.95 -21.08 -0.73%
Taiwan We... 8,911.71 -94.90
Nikkei 225 9,558.30 -90.47 -0.94%
Hang Seng 22,960.63 -315.64 -1.36%
Straits Times 3,136.48 -27.20 -0.86%

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

Debt concerns weigh on stocks

Stocks fall for second day running, dragged down by technology companies and Europe worries

David K. Randall and Matthew Craft, AP Business Writer, On Monday May 16, 2011, 4:58 pm

NEW YORK (AP) -- Technology company troubles and renewed concerns about Europe's debt dragged stocks lower for a second day.

European finance ministers approved $110 billion in rescue loans to Portugal on Monday, but have yet to decide on a second rescue package for Greece.

The arrest of the head of the International Monetary Fund is expected to make solving Greece's problems more difficult. The official, Dominique Strauss-Kahn, had been heavily involved in trying to fix the debt crises in Portugal and Greece. He is being held without bail on charges of sexually assaulting a hotel employee in New York City.

Technology companies sustained the largest losses in Monday trading. Yahoo! Inc. and Amazon.com Inc. fell by more than 4 percent. Yahoo is in a dispute with Alibaba Group Holding Ltd. over its online payment business. Yahoo owns a 40 percent stake in the company, which transferred its online payment business to another company without consulting Yahoo.

Investors are growing increasingly concerned over the prospect of an unprecedented U.S. default on its debt. Treasury Secretary Timothy Geithner told Congressional lawmakers in a letter Monday that the agency is taking steps to postpone a default.

"The main thing hanging over most financial markets right now is what's going to happen with the debt ceiling and government borrowing and spending," said Tim Courtney, the chief investment officer at Burns Advisory Group in Oklahoma City.

The Dow Jones industrial average lost 47.38 points, or 0.4 percent, to close at 12,548.37. The Standard & Poor's 500 index fell 8.30 points, or 0.6 percent, to 1,329.47. The Nasdaq fell 46.16, or 1.6 percent, to 2,782.31.

Commodity prices were mostly lower. Oil prices fell $2.28 to settle at $97.37 a barrel Monday as worries eased that Mississippi River flooding could disrupt refineries and slow demand.

Commodities have been falling broadly over the last two weeks because of concerns that the global economy is showing signs of weakening. A series of margin-hikes that were meant to curb the influence of speculators, whose heavy trading sent commodities like silver up more than 11 percent for the year, have also sent commodities lower.

"People are coming back into the commodity markets because they think that, in the back of their minds, the global growth story will continue," said Zahid Siddique, an associate portfolio manager at Gabelli Equity Trust, a money manager based in New York.

The stock market has lost some of its momentum in the last few weeks after finishing its best first quarter since 1998. Companies in so-called defensive industries like health care, utilities and consumer staples have outperformed lately due in part to concerns that high gas prices will slow the economy and cut into corporate profits.

Two well-known retailers in the U.S. fell after reporting quarterly results Monday. Home improvement company Lowe's Cos. fell 2 percent in after its quarterly report missed Wall Street's estimates and the company cut its outlook for the year. Bad weather and a decline in consumer spending combined to drive its profit down 6 percent in the first quarter.

J.C. Penny Co. Inc. lost 1.5 percent despite raising its full year profit estimates.

One of the most talked-about deals on Wall Street was officially nixed as well. The parent company of the New York Stock Exchange dropped nearly 11 percent after competitors Nasdaq OMX Group and ICE announced that they had withdrawn their hostile bid for the company. NYSE Euronext had angered its shareholders by refusing to meet with the two companies, which offered a higher price than what NYSE received from a German exchange operator. The withdrawn offer clears one hurdle to the proposed combination of the NYSE and its German counterpart.

More than two shares fell for every one that rose on the New York Stock Exchange. Trading volume was 3.5 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

A lower earnings forecast by tech giant Hewlett-Packard and concerns about the economy's strength dragged the Dow Jones industrial average down nearly 70 points Tuesday. Gains in bank and utilities stocks limited the market's overall losses.

Hewlett-Packard Co. fell more than 7 percent. The world's largest technology company by revenue lowered its earnings outlook for the rest of the year, partly because of weaker sales of personal computers. The company fell to $36.91, near its lowest price over the last 12 months.

Concerns about the economy's strength helped pull down industrial companies like Caterpillar Inc. and Boeing Co. The Federal Reserve said U.S. factories produced fewer goods in April for the first time in 10 months. If the decline continues, it could cut into the earnings of companies that make industrial equipment. The Commerce Department also reported that construction of new homes plunged.

The two reports drove traders into the relative safety of U.S. government bonds, pushing yields to their lowest level this year. The yield on the 10-year Treasury note sank to 3.10 percent. When bond prices rise, their yields fall.

"There's a high degree of caution right now," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. "People are worried about big picture issues that need to be resolved."

The Dow lost 68.79 points, or 0.5 percent, to 12,479.58. The S&P 500 lost 0.49, or less than 0.1 percent, to 1,328.98. The Nasdaq rose 0.90, also less than 0.1 percent, to 2,783.21.

The NYSE DOW NYSE DOW closed LOWER -68.79 points -0.55% on Tuesday May 17
Sym .......Last .......Change..........
Dow 12,479.58 -68.79 -0.55%
Nasdaq 2,783.21 +0.90 +0.03%
S&P 500 1,328.98 -0.49 -0.04%
30-yr Bond 4.2320% -0.0440

NYSE Volume 4,474,123,000 (prior 3,888,634,000)
Nasdaq Volume 2,228,028,500 (prior 2,071,148,875)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,861.00 -62.69 -1.06%
DAX 7,256.65 -130.89 -1.77%
CAC 40 3,941.58 -48.24 -1.21%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,753.00 +28.80 +0.61%
Shanghai Comp 2,852.77 +3.71 +0.13%
Taiwan We... 8,884.09 -27.62 -0.31%
Nikkei 225 9,567.02 +8.72 +0.09%
Hang Seng 22,901.08 -59.55 -0.26%
Straits Times 3,136.48 -27.20 -0.86%

http://finance.yahoo.com/news/Lower-HP-outlook-and-economic-apf-2241330049.html?x=0

Lower H-P outlook and economic concerns sink Dow

Dow Jones industrial average falls 69 after Hewlett-Packard lowers its earnings forecast

Matthew Craft and David K. Randall, AP Business Writers, On Tuesday May 17, 2011, 4:51 pm

NEW YORK (AP) -- A lower earnings forecast by tech giant Hewlett-Packard and concerns about the economy's strength dragged the Dow Jones industrial average down nearly 70 points Tuesday. Gains in bank and utilities stocks limited the market's overall losses.

Hewlett-Packard Co. fell more than 7 percent. The world's largest technology company by revenue lowered its earnings outlook for the rest of the year, partly because of weaker sales of personal computers. The company fell to $36.91, near its lowest price over the last 12 months.

Concerns about the economy's strength helped pull down industrial companies like Caterpillar Inc. and Boeing Co. The Federal Reserve said U.S. factories produced fewer goods in April for the first time in 10 months. If the decline continues, it could cut into the earnings of companies that make industrial equipment. The Commerce Department also reported that construction of new homes plunged.

The two reports drove traders into the relative safety of U.S. government bonds, pushing yields to their lowest level this year. The yield on the 10-year Treasury note sank to 3.10 percent. When bond prices rise, their yields fall.

"There's a high degree of caution right now," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. "People are worried about big picture issues that need to be resolved."

The Dow lost 68.79 points, or 0.5 percent, to 12,479.58. The S&P 500 lost 0.49, or less than 0.1 percent, to 1,328.98. The Nasdaq rose 0.90, also less than 0.1 percent, to 2,783.21.

Even with a majority of companies reporting stronger earnings, the U.S. stock market has lost some of its momentum in the last few weeks. Concerns are growing that high gas prices will weigh on the economy, pinch consumer spending and cut into corporate profits.

Companies reported mixed results Tuesday. Wal-Mart Stores Inc. said its income rose 3 percent in the first quarter, but sales at stores open at least a year fell for the eighth quarter in a row. Wal-Mart's stock fell nearly 1 percent.

Sales also slipped in the first quarter at Home Depot Inc., but the retailer's income jumped 12 percent and beat analysts' expectations. The stock rose 1.2 percent.

Two stocks fell for every one that rose on the New York Stock Exchange. Consolidated volume came to 4 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

Widespread gains in commodity prices lifted energy and materials companies as part of a broad stock market rally Wednesday after three days of declines. Stocks built on morning gains after the Federal Reserve released minutes that showed that officials agreed that the economy is improving, which could lead to higher demand for raw materials like steel and fertilizer.

The Fed's bond-buying program has kept interest rates low and sent commodities and stock prices higher overall since late August. The U.S. stock market has gained nearly 25 percent since the central bank signaled that it would begin the asset-purchase plan. Commodity prices had fallen over the last two weeks after months of gains on concerns about the impact of high energy prices on the economy.

Oil gained nearly 4 percent to move back above $100 a barrel, due in part to a Dept. of Energy report that inventories of crude oil did not rise last week as expected. Energy stocks like Chevron Corp. and Exxon Mobil Corp. rose nearly 2 percent.

The Dow Jones industrial average added 80.60 points, or 0.6 percent, to close at 12,560.18. The S&P index rose 11.70, or 0.9 percent, to 1,340.68. The Nasdaq composite gained 31.79, or 1.1 percent, to 2,815.

The NYSE DOW NYSE DOW closed HIGHER +80.60 points +0.65% on Wednesday May 18
Sym .......Last .......Change..........
Dow 12,560.18 +80.60 +0.65%
Nasdaq 2,815.00 +31.79 +1.14%
S&P 500 1,340.68 +11.70 +0.88%
30-yr Bond 4.2880% +0.0560

NYSE Volume 3,924,985,750 (prior 4,474,123,000)
Nasdaq Volume 1,904,806,375 (prior 2,228,028,500)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,923.49 +62.49 +1.07%
DAX 7,303.53 +46.88 +0.65%
CAC 40 3,978.00 +36.42 +0.92%


Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,765.30 +12.30 +0.26%
Shanghai Comp 2,872.75 +19.98 +0.70%
Taiwan We... 8,944.84 +60.75 +0.68%
Nikkei 225 9,662.08 +95.06 +0.99%
Hang Seng 23,011.14 +110.06 +0.48%
Straits Times 3,138.20 +1.72 +0.05%

http://finance.yahoo.com/news/Commo...1.html?x=0&sec=topStories&pos=3&asset=&ccode=

Commodity rally sends stock indexes higher

Stocks edge higher as rising oil pushes up energy companies; Fed minutes add to gains

Francesca Levy and David K. Randall, AP Business Writers, On Wednesday May 18, 2011, 4:58 pm EDT

NEW YORK (AP) -- Widespread gains in commodity prices lifted energy and materials companies as part of a broad stock market rally Wednesday after three days of declines. Stocks built on morning gains after the Federal Reserve released minutes that showed that officials agreed that the economy is improving, which could lead to higher demand for raw materials like steel and fertilizer.

The Fed's bond-buying program has kept interest rates low and sent commodities and stock prices higher overall since late August. The U.S. stock market has gained nearly 25 percent since the central bank signaled that it would begin the asset-purchase plan. Commodity prices had fallen over the last two weeks after months of gains on concerns about the impact of high energy prices on the economy.

Oil gained nearly 4 percent to move back above $100 a barrel, due in part to a Dept. of Energy report that inventories of crude oil did not rise last week as expected. Energy stocks like Chevron Corp. and Exxon Mobil Corp. rose nearly 2 percent.

The Dow Jones industrial average added 80.60 points, or 0.6 percent, to close at 12,560.18. The S&P index rose 11.70, or 0.9 percent, to 1,340.68. The Nasdaq composite gained 31.79, or 1.1 percent, to 2,815.

Commodity prices halted their slide after floods damaged wheat, corn and soybean fields, with traders anticipating a supply shortage would lead to higher prices. Materials companies in the S&P 500 rose 2.1 percent, led by a nearly 5 percent gain in CF Industries Holdings. The company sells fertilizer.

Stock indexes inched up slowly in morning trading as investors tried to make sense of mixed earnings reports. Reports from Dell Inc. and Staples Inc. sent contrasting messages about how much corporations are spending. Dell's strong results suggested that companies were spending more on technology, but Staples' report suggested businesses were reluctant to lay out cash for basic needs like office supplies.

"Businesses are spending in the technology sector to improve productivity," said Kim Caughey, equity research analyst at Fort Pitt Capital Group. "But in the business-supply area, they might not buy quite as many paper clips."

Dell jumped nearly 6 percent after the computer maker reported late Tuesday that its income nearly tripled on lower costs and better profit margins. Strong sales of servers, storage devices and computers to businesses also contributed to its results. Another tech company, Analog Devices Inc., rose 6 percent after the chip-maker said its profit jumped 44 percent.

Staples plunged 15 percent after the office-supply company reported that sales were weaker than investors were expecting. The company also lowered its full-year earnings forecast. Target Corp. fell 1.6 percent after the company also reported weak sales. Target's CEO Gregg Steinhafel said shoppers are "cautious" about spending.

The release of the Fed minutes sent bond prices lower because some of the central bank's members said it might need to start easing interest rates higher this year to guard against inflation. The higher price drove the yield of the 10-year Treasury note up to 3.17 percent from 3.12 percent late Tuesday. Bond prices rise when their yields fall.

Four stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume came to 3.5 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

The biggest Internet IPO since Google combined with a drop in oil prices to send the broad stock market higher.

Shares of social networking company LinkedIn jumped 109 percent to $94.25 on the first day they began trading on the New York Stock Exchange under the ticker symbol "LNKD." The debut is seen as a preview of other social networking sites that are expected to start trading during the next year. The list of candidates includes the online messaging service Twitter, game maker Zynga, and the biggest social network of all, Facebook.

"LinkedIn represents the first opportunity for the average investor to participate in what looks like a lasting, powerful trend of social media," said Lawrence Creatura, a portfolio manager at Federated Investors. "They're frothy with excitement, and that's being imputed into the share price."

LinkedIn finished the day with a gigantic price-to-earnings ratio of 554, a valuation reminiscent of Internet stocks during the late 1990s tech bubble. By comparison, the average price-to-earnings ratio of technology companies in the S&P 500 index like Apple Inc. and Google Inc. is 15.

The NYSE DOW NYSE DOW closed HIGHER +45.14 points +0.36% on Thursday May 19
Sym .......Last .......Change..........
Dow 12,605.32 +45.14 +0.36%
Nasdaq 2,823.31 +8.31 +0.30%
S&P 500 1,343.60 +2.92 +0.22%
30-yr Bond 4.3020% +0.0140

NYSE Volume 3,687,415,250 (prior 3,924,985,750)
Nasdaq Volume 1,791,491,250 (prior 1,904,806,375)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,955.99 +32.50 +0.55%
DAX 7,358.23 +54.70 +0.75%
CAC 40 4,027.74 +49.74 +1.25%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,828.20 +62.90 +1.32%
Shanghai Comp 2,859.74 -13.03 -.045%
Taiwan We... 8,892.88 -51.96 -0.58%
Nikkei 225 9,620.82 -41.26 -0.43%
Hang Seng 23,163.38 +152.24 +0.66%
Straits Times 3,172.56 +31.35 +1.00%

http://finance.yahoo.com/news/Stocks-follow-LinkedIn-IPO-apf-2074172953.html?x=0

Stocks follow LinkedIn IPO higher

Surging LinkedIn IPO and drop in oil prices lifts stock market higher

Daniel Wagner and David K. Randall, AP Business Writers, On Thursday May 19, 2011, 4:52 pm

NEW YORK (AP) -- The biggest Internet IPO since Google combined with a drop in oil prices to send the broad stock market higher.

Shares of social networking company LinkedIn jumped 109 percent to $94.25 on the first day they began trading on the New York Stock Exchange under the ticker symbol "LNKD." The debut is seen as a preview of other social networking sites that are expected to start trading during the next year. The list of candidates includes the online messaging service Twitter, game maker Zynga, and the biggest social network of all, Facebook.

"LinkedIn represents the first opportunity for the average investor to participate in what looks like a lasting, powerful trend of social media," said Lawrence Creatura, a portfolio manager at Federated Investors. "They're frothy with excitement, and that's being imputed into the share price."

LinkedIn finished the day with a gigantic price-to-earnings ratio of 554, a valuation reminiscent of Internet stocks during the late 1990s tech bubble. By comparison, the average price-to-earnings ratio of technology companies in the S&P 500 index like Apple Inc. and Google Inc. is 15.

Sumeet Jain, a principal with venture investing firm CMEA Capital, said LinkedIn's IPO suggests that the number of mergers and acquisitions will increase this year as social networking companies grow, a potential boon for the stock market.

LinkedIn is "going to have to be quite aggressive" to meet investors' lofty expectations, Jain said. "All the rest of the companies in the pipeline, when they're all public companies they will be extraordinarily active acquirers as well."

The Dow Jones industrial average rose 45.14, or 0.4 percent, to close at 12,605.32. The S&P 500 gained 2.92, or 0.2 percent, to 1,343.60. The Nasdaq composite index rose 8.31, or 0.3 percent, to 2,823.31.

Oil prices fell back below $100 a barrel after an international agency said there is an "urgent need" for refineries to produce more gasoline and bring down pump prices in order to prevent a downturn in the global economy. Delta Air Lines Inc. rose 4.1 percent and JetBlue Airways Corp. rose 1.4 percent on expectations that their fuel costs would decrease.

Oil prices have fallen about 13 percent since the beginning of May as part of a broad-sell off in commodities due to fears that the economy is slowing. Despite LinkedIn's gains, concerns about the economy weighed on the market again Thursday.

The National Association of Realtors said fewer people purchased previously occupied homes in April. The Conference Board's outlook for future economic activity decreased for the first time since June 2010. And the Philadelphia Federal Reserve said that its measure of manufacturing activity slumped to its lowest reading since October.

The mixed news confirmed investors' belief that economic growth could be slow in the coming months. The yield on the benchmark 10-year Treasury note had risen as high as 3.24 percent following the positive jobs news but was back down to 3.17 percent, just below the rate it was trading at late Wednesday. Bond yields tend to rise when investors anticipate stronger economic growth.

"The fact that yields are still up today, even after this relatively weak set of data, tells me that people have factored in" expectations that the economy will grow more slowly this quarter, said Paul Zemsky, chief investment officer of multi-asset strategies for ING Investment Management.

With little fresh economic or corporate data expected in the next two weeks, the market will be "pretty much trading sideways unless something happens to throw people for a loop again," Zemsky said.

Stocks opened higher after the Department of Labor reported that applications for unemployment dropped more than expected. Indexes gave up those early gains after three negative reports on the economy came out at midmorning.

In a sign that the U.S. consumer recovery remains uneven, Big Lots Inc. fell nearly 11 percent after news reports that it decided not to sell itself. The Wall Street Journal said late Wednesday that the company received bids from two private-equity groups that were lower than it had hoped.

Sears Holding Corp. reported softer sales at its Kmart and Sears stores, causing a first-quarter loss of $1.58 per share, worse than analysts expected. The stock fell 2.6 percent.

Two stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume came to 3.3 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks closed broadly lower for a third straight week on signs that U.S. consumer demand may be weakening.

Retailers Gap Inc. and Aeropostale Inc. each lost more than 14 percent Friday after cutting their profit forecasts for the year, in part because of higher costs for raw materials and sluggish sales. That was a worrying sign for investors who had counted shoppers to lead a recovery in spending.

Gap's results pushed down other clothing companies who have been hit hard by the rising price of cotton and shoppers who are reluctant to splurge. Polo Ralph Lauren Corp. and J.C. Penney Co. each dropped 4 percent, while Urban Outfitters Inc. fell 3 percent.

The Dow Jones industrial average fell 93.28 points, or 0.7 percent, to 12,512.04. The Standard & Poor's 500 index lost 10.33, or 0.8 percent, to 1,333.27. The Nasdaq composite dropped 19.99, or 0.7 percent, to 2,803.32. Each market index fell by more than 0.3 percent for the week. The Nasdaq lost the most, 0.9 percent.


The NYSE DOW NYSE DOW closed LOWER -93.28 points -0.74% on Friday May 20
Sym .......Last .......Change..........
Dow 12,512.04 -93.28 -0.74%
Nasdaq 2,803.32 -19.99 -0.71%
S&P 500 1,333.27 -10.33 -0.77%
30-yr Bond 4.2990% -0.0030

NYSE Volume 4,070,045,500 (prior 3,687,415,250)
Nasdaq Volume 1,798,408,625 (prior 1,791,491,250)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,948.49 -7.50 -0.13%
DAX 7,266.82 -91.41 -1.24%
CAC 40 3,990.85 -36.89 -0.92%


Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,807.70 -20.50 -0.42%
Shanghai Comp 2,858.38 -1.19 -0.04%
Taiwan We... 8,837.03 -55.85 -0.63%
Nikkei 225 9,607.08 -13.74 -0.14%
Hang Seng 23,199.39 +36.01 +0.16%
Straits Times 3,168.54 -4.02 -0.13%

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

Slide in retailers sends stocks broadly lower

Stocks fall as retailers sink, led by Gap Inc. after company cuts forecast on sluggish sales

Francesca Levy and David K. Randall, AP Business Writers, On Friday May 20, 2011, 6:14 pm

NEW YORK (AP) -- Stocks closed broadly lower for a third straight week on signs that U.S. consumer demand may be weakening.

Retailers Gap Inc. and Aeropostale Inc. each lost more than 14 percent Friday after cutting their profit forecasts for the year, in part because of higher costs for raw materials and sluggish sales. That was a worrying sign for investors who had counted shoppers to lead a recovery in spending.

Gap's results pushed down other clothing companies who have been hit hard by the rising price of cotton and shoppers who are reluctant to splurge. Polo Ralph Lauren Corp. and J.C. Penney Co. each dropped 4 percent, while Urban Outfitters Inc. fell 3 percent.

The Dow Jones industrial average fell 93.28 points, or 0.7 percent, to 12,512.04. The Standard & Poor's 500 index lost 10.33, or 0.8 percent, to 1,333.27. The Nasdaq composite dropped 19.99, or 0.7 percent, to 2,803.32. Each market index fell by more than 0.3 percent for the week. The Nasdaq lost the most, 0.9 percent.

One exception to the retailer gloom was Barnes & Noble Inc. The bookseller jumped 30 percent after announcing late Thursday that Liberty Media Corp. had offered to buy the company for $1 billion in cash.

Stock indexes have been staying within a relatively small range since a May 4 plunge triggered by a sharp drop in oil prices. The Dow fell more than 200 points in two days. After several weeks of waffling, the index is trading slightly above where it was after that two-day fall.

May is traditionally a weak month for the stock market. Traders have little to base buying and selling decisions on with corporate earnings season officially over and economic news scarce. Trading has been relatively light.

A stronger U.S. dollar has also hurt stocks. The dollar rose against the euro Friday after the Fitch ratings agency downgraded Greece's debt three notches further into junk status, escalating worries about the European debt crisis.

In recent months, markets have fallen when the dollar rises against the euro because the stronger U.S. currency has signaled that European countries are still struggling to get their debt under control.

"A stronger dollar and a stronger U.S. market can coincide, but not when the U.S. economic data are weak," said Quincy Krosby, chief market strategist for Prudential Financial. "This has been a stronger dollar that has come because of another currency weakening, not a stronger U.S. economy."

Concerns about the strength of the economy pushed government bond prices higher as investors sought out safer assets. The yield on the benchmark 10-year Treasury note fell to 3.15 percent from 3.18 percent late Thursday. Bond yields fall when their prices rise.

There were a few other notable exceptions to the downward trend. Software company Salesforce.com Inc. rose 8 percent, the most of any stock in the S&P 500, after its first-quarter profit beat expectations. Movie rental and streaming company Netflix Inc. gained 1.3 percent.

Two stocks fell for every one that rose on the New York Stock Exchange. Consolidated volume came to 3.6 billion shares.

0143

 

[bigdog]

Source: http://finance.yahoo.com

Four stocks fell for each one that rose on the New York Stock Exchange. Volume was 3.4 billion shares.

After three days of bad news about Europe's debt crisis sent Asian and European markets down Monday, it was Wall Street's turn.

The Dow Jones industrial average fell as many as 180 points before paring back some of its losses. Another steep downgrade of Greece's credit rating, a warning on Italy's debt and a major defeat of Spain's ruling party caused new worries about Europe's debt crisis.

That sent the euro lower against the dollar. A stronger dollar makes it more expensive for other countries to buy U.S. exports, hurting U.S. companies that sell goods abroad. Fears that Europe's debt troubles could escalate, as they did last year when Greece melted down, sent stocks tumbling across the globe.

The dollar rose 0.6 percent against an index of global currencies Monday. The euro dipped briefly to its lowest level against the dollar in two months.

The bad news began late Friday, when the Fitch ratings agency downgraded Greece's debt further into junk status. That gave investors more reason to fear that the country will need more help managing its debts beyond the emergency loan package it received last year.


The NYSE DOW NYSE DOW closed LOWER -130.78 points -1.05% on Monday May 23
Sym .......Last .......Change..........
Dow 12,381.26 -130.78 -1.05%
Nasdaq 2,758.90 -44.42 -1.58%
S&P 500 1,317.37 -15.90 -1.19%
30-yr Bond 4.2740% -0.0250

NYSE Volume 3,778,081,250 (prior 4,070,045,500)
Nasdaq Volume 1,815,271,000 (prior 1,798,408,625)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,835.89 -112.60 -1.89%
DAX 7,121.52 -145.30 -2.00%
CAC 40 3,906.98 -83.87 -2.10%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,722.90 -84.80 -1.76%
Shanghai Comp 2,775.52 -82.94 -2.90%
Taiwan We... 8,747.51 -89.52 -1.01%
Nikkei 225 9,460.63 -146.45 -1.52%
Hang Seng 22,711.02 -488.37 -2.11%
Straits Times 3,110.48 -58.06 -1.83%

http://finance.yahoo.com/news/US-st...et=&ccode=&sec=topStories&pos=2&asset=&ccode=

US stocks plunge on European debt worries

US stock markets sharply lower amid growing European debt worries

Francesca Levy, AP Business Writer, On Monday May 23, 2011, 4:46 pm

NEW YORK (AP) -- After three days of bad news about Europe's debt crisis sent Asian and European markets down Monday, it was Wall Street's turn.

The Dow Jones industrial average fell as many as 180 points before paring back some of its losses. Another steep downgrade of Greece's credit rating, a warning on Italy's debt and a major defeat of Spain's ruling party caused new worries about Europe's debt crisis.

That sent the euro lower against the dollar. A stronger dollar makes it more expensive for other countries to buy U.S. exports, hurting U.S. companies that sell goods abroad. Fears that Europe's debt troubles could escalate, as they did last year when Greece melted down, sent stocks tumbling across the globe.

The dollar rose 0.6 percent against an index of global currencies Monday. The euro dipped briefly to its lowest level against the dollar in two months.

The bad news began late Friday, when the Fitch ratings agency downgraded Greece's debt further into junk status. That gave investors more reason to fear that the country will need more help managing its debts beyond the emergency loan package it received last year.

Then Standard & Poor's said Saturday that Italy was in danger of having its debt rating lowered if it could not reduce its borrowing and improve economic growth. The next day, Spain's ruling Socialist party was roundly defeated in local elections, potentially jeopardizing the country's deficit-cutting program.

The Dow fell 130.78 points, or 1.1 percent, to close at 12,381.26. The Standard & Poor's 500 index fell 15.9, or 1.2 percent, to 1,317.37 All but a handful of stocks in the S&P 500 fell. The Nasdaq composite index fell 44.42, or 1.6 percent, to 2,758.9.

European markets also closed sharply lower. The FTSE 100 index of leading British shares fell 1.9 percent. Germany's DAX lost 2 percent. The CAC-40 in France was 2 percent lower.

While stocks are reacting strongly to the weekend's headlines, investors are not selling corporate bonds. If they were, it would signal that investors were growing wary of risk, said Jack Ablin, chief investment officer at Harris Private Bank.

"There's a short-term perception of risk, but I'm not viewing it as necessarily lasting," said Ablin.

Still, as investors sought safer assets, the yield on the 10-year Treasury note went as low as 3.10 percent, its lowest level of the year. The yield moved back up to 3.13 percent in afternoon trading, slightly below the 3.15 percent it traded at late Friday. Bond yields fall when their prices rise.

Some analysts think a downturn in stocks was overdue. Markets have wobbled over the past few weeks, but the Dow is still up 7 percent this year. The index has shrugged off revolutions in the Arab world, attempts by China and other emerging markets to slow growth and the nuclear crisis in Japan. Now that the U.S. corporate earnings season is over, global news has become the focus.

"There's not a lot of good news," said Randy Bateman, president of Huntington Asset Advisors. "Investors needed an excuse to pull back."

Downgrades of sovereign debt can shock world markets when they're first announced. Recently, debt downgrades have had a short-term effect. Moody's downgraded Spain's debt on March 10. The Ibex 35 sank 1.3 percent on the news, but recovered its losses within days.

S&P downgraded its debt outlook for the U.S. on April 17 from stable to negative, meaning it could lower the country's debt rating in the future. The warning sent the Dow down 240 points in morning trading, but it recovered the next day.

Four stocks fell for each one that rose on the New York Stock Exchange. Volume was 3.4 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

Continued worries about Europe's lingering debt crisis overshadowed a small rebound in oil prices and pushed stocks slightly lower on Tuesday.

Oil rose nearly $2 to $99.59 per barrel after major banks raised their forecasts for crude prices. Goldman Sachs, J.P. Morgan and Morgan Stanley analysts predicted a rise in global demand would drive oil prices higher later this year. Goldman analysts say oil prices could reach $135 a barrel by the end of 2012.

Stocks swung between gains and losses throughout the day, with Chevron Corp. and other energy companies posting the largest gains. Energy companies in the S&P 500 rose 1.3 percent, the most of the ten industry groups in the index.

The Dow Jones industrial average fell 25.05 points, or 0.2 percent, to close at 12,356.21. The Standard & Poor's 500 index fell 1.09 point to 1,316.28. The Nasdaq composite fell 12.74, or 0.5 percent, to 2,746.16.

The NYSE DOW NYSE DOW closed LOWER -25.05 points -0.20% on Tuesday May 24
Sym .......Last .......Change..........
Dow 12,356.21 -25.05 -0.20%
Nasdaq 2,746.16 -12.74 -0.46%
S&P 500 1,316.28 -1.09 -0.08%
30-yr Bond 4.2590% -0.0150

NYSE Volume 3,890,587,250 (prior 3,778,081,250)
Nasdaq Volume 1,900,227,625 (prior 1,815,271,000)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,858.41 +22.52 +0.39%
DAX 7,150.66 +29.14 +0.41%
CAC 40 3,916.88 +9.90 +0.25%


Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,708.30 -14.60 -0.31%
Shanghai Comp 2,767.61 -6.96 -0.25%
Taiwan We... 8,756.61 +9.10 +0.10%
Nikkei 225 9,477.17 +16.54 +0.17%
Hang Seng 22,730.78 +19.76 +0.09%
Straits Times 3,113.09 +2.61 +0.08%

http://finance.yahoo.com/news/Stock...9.html?x=0&sec=topStories&pos=2&asset=&ccode=

Stocks slip as worries over Europe linger

US stocks end slightly lower as worries remain over Europe; energy stocks gain

Francesca Levy and Matthew Craft, AP Business Writers, On Tuesday May 24, 2011, 5:01 pm

NEW YORK (AP) -- Continued worries about Europe's lingering debt crisis overshadowed a small rebound in oil prices and pushed stocks slightly lower on Tuesday.

Oil rose nearly $2 to $99.59 per barrel after major banks raised their forecasts for crude prices. Goldman Sachs, J.P. Morgan and Morgan Stanley analysts predicted a rise in global demand would drive oil prices higher later this year. Goldman analysts say oil prices could reach $135 a barrel by the end of 2012.

Stocks swung between gains and losses throughout the day, with Chevron Corp. and other energy companies posting the largest gains. Energy companies in the S&P 500 rose 1.3 percent, the most of the ten industry groups in the index.

The Dow Jones industrial average fell 25.05 points, or 0.2 percent, to close at 12,356.21. The Standard & Poor's 500 index fell 1.09 point to 1,316.28. The Nasdaq composite fell 12.74, or 0.5 percent, to 2,746.16.

Stocks had been on a tear for the first four months of the year, lifted by stronger earnings reports, an improving job market and other signs of economic recovery. But all three major indexes have lost more than 3.5 percent this month, even as earnings remain strong. Widespread optimism has been shoved aside by a host of concerns, especially the impact of higher oil prices on consumer spending and the risk that Europe's debt troubles could get worse.

Markets faced more troubling news about Europe on Tuesday, when Greece's main opposition party said it opposed the government's latest attempts to reduce debt. The news further dampened hopes that the country might be able to repair its finances enough to get another loan package from the International Monetary Fund.

Ratings agency Moody's also warned that a restructuring of Greece's debt would be considered a default. That would cause borrowing costs for other debt-strapped European countries to soar.

Uri Landesman, president of hedge fund manager Platinum Partners, said a Greek default could start a chain reaction affecting larger countries like Spain -- the fourth-largest economy in Europe -- wreaking havoc on the global economy.

"If you had a Spanish default, there wouldn't be a single world bank not affected," Landesman said.

U.S. banks had $187 billion at stake in Spain as of the end of last September, according to the most recent data from the Bank of International Settlements. The amount includes holdings of government debt, derivative contracts and other commitments.

European stocks managed to recover from Monday's declines, in part because of a reassuring report from Germany that business optimism was holding steady.

Both Germany's DAX and England's FTSE 100 ended the day 0.4 percent higher. France's CAC-40 added 0.3 percent. The euro also rose slightly against the dollar after falling to a two-month low Monday.

The U.S. Commerce Department reported that sales of new homes rose slightly in April, but at a pace far below what would be normal in a healthy housing market. New home sales rose to an annual rate of 323,000 from 300,000 in March.

New homes are unappealing to budget-conscious families because their median price is nearly 31 percent higher than previously-occupied homes. That's twice the price difference typical of a healthy economy. At their current rate, new-home sales are on track to experience a sixth straight year of declines.

Energy company El Paso Corp. rose 6 percent, the most of any stock in the S&P 500, after saying it plans to split itself into two publicly-traded businesses by the end of this year.

AutoZone Inc. rose 6 percent after the specialty retailer's earnings jumped 12 percent on strong sales of its Duralast auto parts.

Stanley Black & Decker Inc. fell 2 percent after law firm Goldfarb Branham LLP announced they were investigating the company's board of directors over questions about CEO compensation.

Medtronic Inc. fell 1 percent after its earnings fell short of forecasts.

Falling shares outpaced rising ones by a small margin on the New York Stock Exchange. Trading volume was 3.6 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

The oil rally is on again.

Stocks closed higher Wednesday for the first day this week as rising oil prices offset worries about the global economic recovery. Oil rose nearly $2 to settle at $101.32 per barrel, pushing energy stocks higher.

Cabot Oil and Gas Corp. led the S&P 500, rising 7 percent. Higher prices for copper, silver and other commodities lifted miners and other material companies. Freeport-McMoRan Copper & Gold Inc. gained 2 percent.

The Dow Jones industrial average rose 38.45 points, or 0.3 percent, to close at 12,394.66. The Standard & Poor's 500 index rose 4.19, or 0.3 percent, to 1,320.47. The Nasdaq composite rose 15.22, or 0.6 percent, to 2,761.38.

Markets have been battered in recent days by new worries over Europe's debt crisis. The last time stocks closed higher was Thursday, when investors welcomed a blockbuster initial public offering by the social networking site LinkedIn Corp.

Greece's government and opposition party failed late Tuesday to reach agreement on how to pare the country's debts, adding to the uncertainty surrounding Greece's financial future. Many analysts believe Greece will eventually have to restructure its debt, possibly by extending interest payments or lowering interest rates.

Without that restructuring, Greece might default. That would cause a domino effect, raising borrowing rates for larger European countries and hampering the world economy.

The NYSE DOW NYSE DOW closed HIGHER +38.45 points +0.31% on Wednesday May 25
Sym .......Last .......Change..........
Dow 12,394.66 +38.45 +0.31%
Nasdaq 2,761.38 +15.22 +0.55%
S&P 500 1,320.47 +4.19 +0.32%
30-yr Bond 4.2820% +0.0230

NYSE Volume 4,116,076,250 (prior 3,890,587,250)
Nasdaq Volume 1,914,069,500 (prior 1,900,227,625)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,870.14 +11.73 +0.20%
DAX 7,170.94 +20.28 +0.28%
CAC 40 3,928.99 +12.11 +0.31%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,661.60 -46.70 -0.99%
Shanghai Comp 2,742.17 -24.89 -0.90%
Taiwan We... 8,727.09 -29.52 -0.34%
Nikkei 225 9,422.88 -54.29 -0.57%
Hang Seng 22,747.28 +16.50 +0.07%
Straits Times 3,118.65 +5.56 +0.18%

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

Stocks turn higher as crude oil tops $100 a barrel

Stocks reverse losses as oil gains offset concerns about Europe and weak factory orders

Francesca Levy and Matthew Craft, AP Business Writers, On Wednesday May 25, 2011, 4:58 pm EDT

NEW YORK (AP) -- The oil rally is on again.

Stocks closed higher Wednesday for the first day this week as rising oil prices offset worries about the global economic recovery. Oil rose nearly $2 to settle at $101.32 per barrel, pushing energy stocks higher.

Cabot Oil and Gas Corp. led the S&P 500, rising 7 percent. Higher prices for copper, silver and other commodities lifted miners and other material companies. Freeport-McMoRan Copper & Gold Inc. gained 2 percent.

The Dow Jones industrial average rose 38.45 points, or 0.3 percent, to close at 12,394.66. The Standard & Poor's 500 index rose 4.19, or 0.3 percent, to 1,320.47. The Nasdaq composite rose 15.22, or 0.6 percent, to 2,761.38.

Markets have been battered in recent days by new worries over Europe's debt crisis. The last time stocks closed higher was Thursday, when investors welcomed a blockbuster initial public offering by the social networking site LinkedIn Corp.

Greece's government and opposition party failed late Tuesday to reach agreement on how to pare the country's debts, adding to the uncertainty surrounding Greece's financial future. Many analysts believe Greece will eventually have to restructure its debt, possibly by extending interest payments or lowering interest rates.

Without that restructuring, Greece might default. That would cause a domino effect, raising borrowing rates for larger European countries and hampering the world economy.

Japan's government reported that the country's exports fell by 12.5 percent in April after the March 11 earthquake and tsunami shuttered factories and forced manufacturers to stop production. Japan's auto shipments were particularly hurt, dropping 67 percent. The report added to concerns that the global economy is a long way from returning to health.

The drop in Japanese exports hit orders for long-lasting goods in the U.S. The Commerce Department said companies ordered fewer computers, heavy machines, cars and airplanes from factories in April. The 3.8 percent drop was the biggest in 6 months, reflecting a decline in U.S. business investment.

Stocks had been on a steady climb since last August until the Japanese catastrophe shook global financial markets in March. Strong corporate earnings sent stocks back up in April, but markets have stalled in the past three weeks. The S&P 500 closed at 1,363 on April 29, its highest level of the year, and has drifted lower ever since.

Some analysts say the market may have been rising too far, too fast since the beginning of the year, making stocks seem expensive. The Dow is still up 7 percent for the year. The S&P 500 is up 5 percent.

"A pullback in the market is probably healthy," said Michael Sansoterra, portfolio manager at Silvant Capital Management.

Fertilizer company CF Industries rose 3 percent a day after a JPMorgan upgraded the stock, citing the company's good cash flow and positive predictions for the agriculture industry.

Martha Stewart Living Omnimedia jumped 24 percent. The company announced that it had hired the Blackstone Group as an adviser, triggering speculation the whole company will be put up for sale.

Retail stocks struggled. Polo Ralph Lauren Corp. sank 11 percent after reporting that higher costs pushed profit down 36 percent. Discount retailer Costco Wholesale Corp. slipped 1 percent after reporting earnings that missed analysts' estimates.

American International Group Inc. fell 4 percent to $28.28 as the U.S. Treasury Department sold some of its stake in the company. Treasury said it would sell 300 million AIG shares for $29 each, making a small profit. The price was set late Tuesday at the low end of the government's projected range.

Roughly two shares rose for every one that fell on the New York Stock Exchange. Trading volume was 3.7 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

Signs of a sluggish economic recovery sent government bond yields to their lowest level in a year Thursday. But strong earnings and a plea to push Microsoft's CEO aside helped push stocks higher.

Microsoft Corp. rose 2 percent after well-known hedge-fund manager David Einhorn called for the tech giant's board to replace CEO Steve Ballmer. Einhorn was quoted as saying at a conference late Wednesday that Ballmer's management was keeping the company's stock down.

Stocks reversed early losses and bond yields remained near their lowest level in a year after two reports suggested that the U.S. jobs market is recovering more slowly than economists anticipated.

The Dow Jones industrial average rose 8.10 points to close at 12,402.76. It was the second day of gains for the Dow after three days of losses driven by new concerns about Greece's debt crisis.

The NYSE DOW NYSE DOW closed HIGHER +8.10 points +0.07% on Thursday May 26
Sym .......Last .......Change..........
Dow 12,402.76 +8.10 +0.07%
Nasdaq 2,782.92 +21.54 +0.78%
S&P 500 1,325.69 +5.22 +0.40%
30-yr Bond 4.2200% -0.0620

NYSE Volume 3,777,193,000 (prior 4,116,076,250)
Nasdaq Volume 1,927,562,250 (prior 1,914,069,500)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,880.99 +10.85 +0.18%
DAX 7,114.09 -56.85 -0.79%
CAC 40 3,917.22 -11.77 -0.30%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,735.10 +73.50 +1.58%
Shanghai Comp 2,735.21 -6.53 -0.24%
Taiwan We... 8,788.40 +61.31 +0.70%
Nikkei 225 9,562.05 +139.17 +1.48%
Hang Seng 22,900.79 +153.51 +0.67%
Straits Times 3,121.21 +2.56 +0.08%

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

Stocks edge up, shaking off weak economic news

Stocks turn higher, shrugging off reports on job market and growth; Microsoft jumps

Daniel Wagner, AP Business Writer, On Thursday May 26, 2011, 5:00 pm

Signs of a sluggish economic recovery sent government bond yields to their lowest level in a year Thursday. But strong earnings and a plea to push Microsoft's CEO aside helped push stocks higher.

Microsoft Corp. rose 2 percent after well-known hedge-fund manager David Einhorn called for the tech giant's board to replace CEO Steve Ballmer. Einhorn was quoted as saying at a conference late Wednesday that Ballmer's management was keeping the company's stock down.

Stocks reversed early losses and bond yields remained near their lowest level in a year after two reports suggested that the U.S. jobs market is recovering more slowly than economists anticipated.

The Dow Jones industrial average rose 8.10 points to close at 12,402.76. It was the second day of gains for the Dow after three days of losses driven by new concerns about Greece's debt crisis.

Tiffany & Co. rose 8 percent, the most of any stock in the S&P 500 index, after the company said its income rose 25 percent on higher revenue across all regions. The results easily beat analysts' expectations. The jewelry maker also raised its forecast for the year above current Wall Street estimates.

The Standard & Poor's 500 index rose 5.22, or 0.4 percent, to 1,325.69. The Nasdaq composite rose 21.54, or 0.8 percent, to 2,782.92.

In a revised look at economic growth, the government reported that the U.S. economy grew 1.8 percent in the January-March quarter. Economists expected an upward revision to 2.2 percent. Gasoline prices that reached $4 a gallon and sharp cutbacks in government spending hindered growth.

More people applied for unemployment benefits last week, the first increase in three weeks. The number of people seeking benefits rose by 10,000 to 424,000. Analysts expected a drop.

Employers stepped up hiring this spring, but some economists worry that rising applications for unemployment benefits suggest that the hiring is uneven. The next look at the job market comes June 1, when payroll processor ADP provides its monthly employment report.

The weaker than expected economic news drew investors into government bonds, sending the yield on the 10-year Treasury note as low as 3.06 percent, its lowest level this year. It was trading at 3.15 percent shortly before the economic reports came out. Bond yields fall when their prices rise.

"People are nervous about what's happening in Europe, nervous about whether or not the economic recovery has enough wind left in its sails," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Advantage Funds.

Concerns about the European debt crisis have caused the market to wobble in recent weeks as the likelihood seemed to increase that Greece would need to renegotiate its debts, even after receiving a package of emergency loans last year. Greece's debt troubles sent global markets reeling last spring as investors shunned the debt of other European nations. Investors are fearful that scenario might repeat itself.

Stocks have been falling throughout May, erasing nearly all of the gains made in April on stronger corporate earnings reports. The S&P 500 has lost 3 percent this month after reaching a 2011 high of 1,363 on April 29. It's still up 5.4 percent for the year.

Computer Sciences Corp. fell 13 percent, the most in the S&P 500, after the government contractor reported disappointing results and a weak earnings forecast late Wednesday. CSC also announced that its audit committee has started an investigation into accounting issues, some of which are being investigated by the Securities and Exchange Commission.

More than two shares rose for every one that fell on the New York Stock Exchange. Trading volume was 3.5 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

All three major stock indexes fell slightly for the week, the fourth week in a row of declines. The Dow lost 0.6 percent, and the S&P 500 and Nasdaq each lost 0.2 percent. The last time stocks fell for four weeks in a row was February 2010. Still, the Dow is up 7.5 percent for the year. The S&P 500 is up 5.8 percent, the Nasdaq 5.4 percent.

Maybe American consumers are better off than everybody thought.

A key measure of consumer confidence rose unexpectedly this month. Meanwhile, Americans' spending and income rose in April, giving stocks their third straight day of gains on Friday. The market was still down slightly for the week.

The Thomson Reuters/University of Michigan Consumer Sentiment index rose to 74.3 in May, above analysts' estimates of 70. Concerns about higher gas prices and inflation knocked the gauge down in March and April.

Gas prices have come down in May after reaching nearly $4 last month, giving a lift to the closely watched measure of how people feel about the economy. That raised hopes that people might be willing to spend more.

"That's what a 25-cent drop in gas prices will do," David Ader, bond strategist at CRT Capital Group, wrote in an email to clients.

The NYSE DOW NYSE DOW closed HIGHER +38.82 points +0.31% on Friday May 27
Sym .......Last .......Change..........
Dow 12,441.58 +38.82 +0.31%
Nasdaq 2,796.86 +13.94 +0.50%
S&P 500 1,331.10 +5.41 +0.41%
30-yr Bond 4.2400% +0.0200

NYSE Volume 3,131,133,250 (prior 3,777,193,000)
Nasdaq Volume 1,670,139,875 (prior 1,927,562,250)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,938.87 +57.88 +0.98%
DAX 7,163.47 +49.38 +0.69%
CAC 40 3,950.98 +33.76 +0.86%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,760.30 +25.20 +0.53%
Shanghai Comp 2,709.62 -26.90 -0.98%
Taiwan We... 8,810.00 +21.60 +0.25%
Nikkei 225 9,521.94 -40.11 -0.42%
Hang Seng 23,118.07 +217.28 +0.95%
Straits Times 3,135.52 +11.82 +0.38%

http://finance.yahoo.com/news/Rising-consumer-confidence-apf-1675001439.html?x=0

Rising consumer confidence lifts stocks

Stocks rise for a third day on gains in consumer confidence and spending; Dow rises 39

Matthew Craft and Seth Sutel, AP Business Writers, On Friday May 27, 2011, 4:53 pm EDT

NEW YORK (AP) -- Maybe American consumers are better off than everybody thought.

A key measure of consumer confidence rose unexpectedly this month. Meanwhile, Americans' spending and income rose in April, giving stocks their third straight day of gains on Friday. The market was still down slightly for the week.

The Thomson Reuters/University of Michigan Consumer Sentiment index rose to 74.3 in May, above analysts' estimates of 70. Concerns about higher gas prices and inflation knocked the gauge down in March and April.

Gas prices have come down in May after reaching nearly $4 last month, giving a lift to the closely watched measure of how people feel about the economy. That raised hopes that people might be willing to spend more.

"That's what a 25-cent drop in gas prices will do," David Ader, bond strategist at CRT Capital Group, wrote in an email to clients.

Both personal income and spending rose 0.4 percent in April, in line with what economists expected, according to the Commerce Department. Still, higher prices for food and gas ate up most of the gains in income. The report from the Commerce Department lags by a month, so the recent decline in gas prices isn't reflected in those figures.

The Dow Jones industrial average rose 38.82 points, or 0.3 percent, to 12,441.58. The Standard & Poor's 500 index rose 5.41 points, or 0.4 percent, to 1,331.10. The Nasdaq composite rose 13.94 points, or 0.5 percent, to 2,796.86.

All three major stock indexes fell slightly for the week, the fourth week in a row of declines. The Dow lost 0.6 percent, and the S&P 500 and Nasdaq each lost 0.2 percent. The last time stocks fell for four weeks in a row was February 2010. Still, the Dow is up 7.5 percent for the year. The S&P 500 is up 5.8 percent, the Nasdaq 5.4 percent.

The week started with a batch of bad news from Europe. Another downgrade of Greece's already weak credit rating, a warning on Italy's debt and a defeat of Spain's ruling party deepened worries about Europe's fiscal crisis. The Dow fell 131 points on Monday after the news.

U.S. stock indexes hit their highest levels of the year April 29 following a strong run of corporate earnings. The S&P 500 has lost 2.4 percent since then as Greece struggles to avoid default and U.S. economic forecasts were revised lower, partly due to high gas prices.

Marvell Technology Group Ltd. jumped 11 percent. The maker of chips for data-storage and Blackberry's smartphones reported a slight drop in earnings. But Marvell's CEO forecast higher sales in the current quarter.

Another chipmaker, Broadcom Corp. rose 5 percent. FBR Capital Markets said Broadcom should benefit from growing demand for smartphones. FBR put the company on its list of top picks.

CVS Caremark Corp. rose 2 percent after the pharmacy benefits company won a three-year contract from the Blue Cross Blue Shield Federal Employee Program.

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

Trading was thin ahead of the Memorial Day holiday. Consolidated volume on the NYSE was 2.8 billion shares. Markets will be closed Monday.

0729

 

[bigdog]

Source: http://finance.yahoo.com

US Markets was closed Monday for the Memorial Day holiday.

The NYSE DOW Markets was closed Monday for the Memorial Day holiday on Monday May 30
Sym .......Last .......Change..........
Dow 12,441.58
Nasdaq 2,796.86
S&P 500 1,331.10
30-yr Bond 4.2400%

NYSE Volume 3,131,733,750
Nasdaq Volume 1,670,142,250

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,938.87 closed for holiday
DAX 7,160.30 -3.17 -0.04%
CAC 40 3,942.53 -8.45 -0.21%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,746.10 -14.20 -0.30%
Shanghai Comp 2,706.12 -3.83 -0.14%
Taiwan We... 8,823.68 +13.68 +0.16%
Nikkei 225 9,504.97 -16.97 -0.18%
Hang Seng 23,184.32 +66.25 +0.29%
Straits Times 3,140.60 +5.08 +0.16%

 

[bigdog]

Source: http://finance.yahoo.com

That screeching sound you heard in May? That was the stock market.

While the month ended with four days of gains in most of the indexes, concerns that high gas prices, tornadoes and flooding in the South, the post-natural disaster slowdown in Japan and a growing debt crisis in Europe sent the Standard and Poor's 500 stock index down 1.4 percent in May. That decline followed a 2.85 percent gain in April, which followed gains that set the fastest pace in the first quarter since 1998. Before this month, stocks were boosted by higher corporate earnings, increased business spending and a global economic expansion.

May was the first down month for the S&P since August 2010.

Other risky assets also saw declines in May, following a year of increases. The prices of commodities like oil, cattle and coffee fell by an average of 7 percent. Meanwhile, Treasury bond prices, which tend to rise when investors fear that the economy is slowing, rose to near their highest level of the year.

For Tuesday, the stock market ended higher, on signs that Germany might drop its demands for an early rescheduling of Greek bonds, paving the way for a deal that could prevent Greece from defaulting on its debt. The S&P index gained 14.10, or 1.1 percent, to 1,345.20. The Dow Jones industrial average added 128.21, or 1 percent, to 12,569.79. And the Nasdaq composite rose 38.44, or 1.4 percent, to 2,835.30.

These gains came in spite of another grim report on the U.S. housing market. Home prices in in 12 of the 20 cities tracked by the Standard & Poor's/Case-Shiller index dropped in March to the lowest levels since the housing bubble popped in 2006. "Home prices continue on their downward spiral with no relief in sight," said David Blitzer, chairman of the index committee at S&P Indices.

The NYSE DOW NYSE DOW closed HIGHER +128.21 points +1.03% on Tuesday May 31
Sym .......Last .......Change..........
Dow 12,569.79 +128.21 +1.03%
Nasdaq 2,835.30 +38.44 +1.37%
S&P 500 1,345.20 +14.10 +1.06%
30-yr Bond 4.2160% -0.0240

NYSE Volume 4,696,241,500 (prior 3,131,133,250)
Nasdaq Volume 2,589,172,750 (prior 1,670,139,875)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,989.99 +51.12 +0.86%
DAX 7,293.69 +133.39 +1.86%
CAC 40 4,006.94 +64.41 +1.63%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,788.90 +42.80 +0.90%
Shanghai Comp 2,743.72 +37.35 +1.38%
Taiwan We... 8,988.84 +165.16 +1.87%
Nikkei 225 9,693.73 +188.76 +1.99%
Hang Seng 23,684.13 +499.81 +2.16%
Straits Times 3,159.93 +19.33 +0.62%

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

Stocks end a down month on an up note

Hopes for Greek aid deal push stocks higher but indexes down for the month of May

David K. Randall and Stan Choe, AP Business Writers, On Tuesday May 31, 2011, 5:38 pm

NEW YORK (AP) -- That screeching sound you heard in May? That was the stock market.

While the month ended with four days of gains in most of the indexes, concerns that high gas prices, tornadoes and flooding in the South, the post-natural disaster slowdown in Japan and a growing debt crisis in Europe sent the Standard and Poor's 500 stock index down 1.4 percent in May. That decline followed a 2.85 percent gain in April, which followed gains that set the fastest pace in the first quarter since 1998. Before this month, stocks were boosted by higher corporate earnings, increased business spending and a global economic expansion.

May was the first down month for the S&P since August 2010.

Other risky assets also saw declines in May, following a year of increases. The prices of commodities like oil, cattle and coffee fell by an average of 7 percent. Meanwhile, Treasury bond prices, which tend to rise when investors fear that the economy is slowing, rose to near their highest level of the year.

For Tuesday, the stock market ended higher, on signs that Germany might drop its demands for an early rescheduling of Greek bonds, paving the way for a deal that could prevent Greece from defaulting on its debt. The S&P index gained 14.10, or 1.1 percent, to 1,345.20. The Dow Jones industrial average added 128.21, or 1 percent, to 12,569.79. And the Nasdaq composite rose 38.44, or 1.4 percent, to 2,835.30.

These gains came in spite of another grim report on the U.S. housing market. Home prices in in 12 of the 20 cities tracked by the Standard & Poor's/Case-Shiller index dropped in March to the lowest levels since the housing bubble popped in 2006. "Home prices continue on their downward spiral with no relief in sight," said David Blitzer, chairman of the index committee at S&P Indices.

Oliver Pursche, president of Gary Goldberg Financial Services, said the report didn't hurt investors' confidence much because their expectations for the U.S. housing market were already low.

"There's no shock factor there," Pursche said. "We knew it was going to be bad, and it is."

Even so, the month of May was an unhappy one for stock holders for the second year in a row -- although the losses weren't nearly as bad as they were last year. Just like 2010, when the S&P index lost 8 percent in May, Greece said that it will need outside help from other European Union countries to meet its debt payments. And in the U.S., the domestic economy sputtered again. Thirteen economic indicators, ranging from personal spending to manufacturing orders, were weaker than economists had predicted, a sign investors and analysts say indicates that high gas prices are slowing growth more than anticipated.

Some investors believe that May was merely a short-term dip--and given the news of the month, markets could have seen bigger declines. "(Stocks) held up reasonably well this month, given all that the market had to digest in terms of worries," said David Kelly, chief market strategist at J.P. Morgan Funds.

Kelly and others say that the lingering good feelings from a strong earnings season, where the average company beat Wall Street's quarterly earnings expectations by more than 6 percent, was part of the reason the broad market didn't decline further. Another reason, Kelly says is that the belief "in the market that any of the slowdown in the economy is relatively temporarily."

One-time factors like bad weather and problems with getting parts from Japan, along with a sharp upturn in investments by private companies, all suggest that the economy will continue to grow this year despite recent signs of weakness, Kelly said.

The few industries that performed well in May were so-called defensive ones like health care and utilities that have stable earnings because the items they sell are not luxuries. Consumer staples -- companies like PepsiCo and Costco Wholesale that sell everyday items like soda and diapers -- rose nearly 2.5 percent, the most out of any group.

June should provide some answers as to whether the economy truly is slowing down. Economists expect that Friday's jobs report will show that the unemployment rate fell to 8.9 percent in May from 9.0 percent in April. And at the end of the month, the Federal Reserve will end its bond-buying stimulus program, QE2. The program has kept interest rates low, which makes owning riskier assets, like stocks or commodities, more attractive.

Some investors believe that the end of the Fed's stimulus program is already reflected in stock prices. "The market looks ahead six to nine months, so if the market thought the end of QE2 was going to be harmful we would have felt it already," said Peter Maris, the founder of Resource Financial Group, a financial adviser in Wilmette, Ill.

The S&P index has risen 7 percent this year, before dividends. At this point would take an 87.56 point drop for it to turn negative for the year. The Dow would need to drop 992.28 points to erase its 8.6 percent gain for the year.

 

[bigdog]

Source: http://finance.yahoo.com

Fears that the economy is stalling sent the Dow Jones industrial average down 280 points Wednesday, erasing more than a quarter of the stock market's gains for the year. Treasury bond yields fell to their lowest level since December as traders put a higher value on safer investments.

The Dow Jones industrial average dropped 279.65 points, or 2.2 percent, to 12,290.14. It was the biggest point drop since June 4 of last year, and the largest percentage drop since August. The S&P index lost 30.65, or 2.3 percent, to 1,314.55. The Nasdaq composite fell 66.11, or 2.3 percent, to 2,769.19.

The yield on the benchmark 10-year Treasury note fell to 2.95 percent. Bond yields fall when prices rise.

Doubts about the economy's strength that built in May were compounded by weaker-than-expected reports on manufacturing and jobs. The Institute for Supply Management's manufacturing index fell to 53.5 in May from 60.4 in April. A reading of more than 50 indicates the manufacturing industry is growing, but the index had been as high as 61.4 in February. Private employers added just 38,000 jobs in May, down from 177,000 in April, according to payroll processor ADP. Analysts had expected 180,000 new jobs.

"It looks like this recovery has hit its second `soft patch,' which for a recovery that is less than two years old is troubling," said Paul Ashworth, chief U.S. economist for Capital Economics.

The NYSE DOW NYSE DOW closed LOWER -279.65 points -2.22% on Wednesday June 1
Sym .......Last .......Change..........
Dow 12,290.14 -279.65 -2.22%
Nasdaq 2,769.19 -66.11 -2.33%
S&P 500 1,314.55 -30.65 -2.28%
30-yr Bond 4.1510% -0.0650

NYSE Volume 4,696,241,500 (prior 4,973,220,500)
Nasdaq Volume 2,317,049,500 (prior 2,589,172,750)

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,928.61 -61.38 -1.02%
DAX 7,217.43 -76.26 -1.05%
CAC 40 3,964.81 -42.13 -1.05%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,788.60 -0.30 -0.01%
Shanghai Comp 2,743.97 +0.50 +0.02%
Taiwan We... 9,062.35 +73.51 +0.82%
Nikkei 225 9,719.61 +25.88 +0.27%
Hang Seng 23,626.43 -57.70 -0.24%
Straits Times 3,171.40 +11.47 +0.36%

http://finance.yahoo.com/news/Fears...5.html?x=0&sec=topStories&pos=1&asset=&ccode=

Fears of economic slowdown hammer stocks

Stocks drop as manufacturing and business hiring lose momentum, adding to economic worries

Stan Choe and David K. Randall, AP Business Writers, On Wednesday June 1, 2011, 5:37 pm EDT

NEW YORK (AP) -- Fears that the economy is stalling sent the Dow Jones industrial average down 280 points Wednesday, erasing more than a quarter of the stock market's gains for the year. Treasury bond yields fell to their lowest level since December as traders put a higher value on safer investments.

The Dow Jones industrial average dropped 279.65 points, or 2.2 percent, to 12,290.14. It was the biggest point drop since June 4 of last year, and the largest percentage drop since August. The S&P index lost 30.65, or 2.3 percent, to 1,314.55. The Nasdaq composite fell 66.11, or 2.3 percent, to 2,769.19.

The yield on the benchmark 10-year Treasury note fell to 2.95 percent. Bond yields fall when prices rise.

Doubts about the economy's strength that built in May were compounded by weaker-than-expected reports on manufacturing and jobs. The Institute for Supply Management's manufacturing index fell to 53.5 in May from 60.4 in April. A reading of more than 50 indicates the manufacturing industry is growing, but the index had been as high as 61.4 in February. Private employers added just 38,000 jobs in May, down from 177,000 in April, according to payroll processor ADP. Analysts had expected 180,000 new jobs.

"It looks like this recovery has hit its second `soft patch,' which for a recovery that is less than two years old is troubling," said Paul Ashworth, chief U.S. economist for Capital Economics.

The manufacturing and jobs reports, plus a decline in automobile sales in May, led several economists to lower their expectations for the year. JP Morgan was among a handful of investment banks that revised down its estimate for GDP growth in the second quarter to 2 percent. The downgrade followed one the bank issued last week. The Dow was down nearly 180 points in midday trading and lost another 100 points after noon as asset management firms sent notes to their clients announcing their economic revisions.

The latest reports on retail sales, first-time applications for unemployment benefits and factory orders will be released Thursday and analysts say any additional signs of economic weakness could push the market even lower.

On the heels of those readings, the Labor Department's more comprehensive jobs report, which includes hiring by both private employers and the government, will be released Friday. The ADP figures include about 24 million workers at the 430,000 companies that use ADP to process their payrolls while the government's numbers capture the entire workforce of about 140 million. Analysts are already expecting those figures to be worse than they anticipated just a few weeks ago.

"As far as we can tell, employers have hugely overreacted to the surge in oil prices, which has slowed but not killed consumption," said Ian Shepherdson, chief U.S. economist for High Frequency Economics. The weak ADP results pushed him to cut his forecast for overall job growth in May to 75,000. He earlier had forecast Friday's report to show growth of 175,000 jobs.

Stock losses came across the market, with all 10 industry groups that make up the Standard and Poor's 500 index losing more than 1 percent. Companies that have benefited from expectations of worldwide growth were especially hard hit. Caterpillar, Alcoa, and Boeing all lost more than 3 percent.

The discouraging reports join a host of other news that has dampened hopes for a strong economic recovery and helped knock the S&P 500 down 1.4 percent in May. Still-high gas prices, a continued housing market decline, weaker-than-expected GDP and tepid consumer confidence -- along with concerns about debt problems in Europe and the debt ceiling in the U.S. -- have all weighed on markets.

Companies reporting results were not spared from the broad market drop. General Motors fell 5 percent after it said U.S. sales weakened in May. The car maker sold 221,192 vehicles, down 1.2 percent from a year earlier. It cited a decision to cut sales to rental car companies for the drop. Ford Motor Co. lost 4.6 percent after reporting similar declines.

Dollar General Corp. fell 9.3 percent after the discount store operator's first-quarter profit growth fell short of analysts' expectations. JoS. A. Bank Clothiers Inc. also reported first-quarter profit growth below analysts' expectations. The men's clothing maker fell 13 percent.

Five stocks fell for every one that rose on the New York Stock Exchange. Consolidated volume came to 4.4 billion shares. The Dow is still up 6.2 percent for the year, the S&P 500 4.5 percent