NEW YORK (AP) - Falling oil prices and unease over corporate earnings are putting more pressure on stocks.
Stocks were mostly lower in early trading Friday, as investors shed positions in energy, utilities and bank shares.
News that Chevron Corp.’s refining margins fell in the second quarter is adding to the market’s worries. On a year-over-year basis, Chevron’s overall second-quarter results are forecast to be much lower than those for 2008. Oil prices subsequently resumed their descent early Friday after a slight pop on Thursday, falling below $60 a barrel.
The market is also on edge ahead of more earnings reports, which pick up pace next week. Investors have sent major indexes down about 7 percent since mid-June on the belief that a more than 40 percent run-up in stocks this spring was unwarranted considering the problems that still plague the economy.
One bit of good news Friday: The Commerce Department said the U.S. trade deficit narrowed to $26 billion in May - the lowest level in more than nine years. The report seemed to temper some of the market’s losses.
In early trading, the Dow Jones industrial average fell 42.25, or 0.5 percent, to 8,140.92. The Standard & Poor’s 500 index lost 4.11, or 0.5 percent, to 878.57, while the Nasdaq composite index rose 3.33, or 0.2 percent, to 1,755.88.
The declines Friday come after a small advance the day before, when all the major indexes posted single-digit gains. Finding some encouragement in better-than-expected results from aluminum maker Alcoa Inc., investors put money into commodities producers, banks and industrial companies.
Despite the slight increase in risk taking Thursday, the overall mood in the market is one of caution. Investors are anxious for more clarity on where the economy is headed. They are looking to companies’ earnings reports for just that, but expectations are low.
Falling crude prices continued to weigh on the market Friday. A barrel of crude traded at $59.29, down $1.12, on the New York Mercantile Exchange. Oil prices have fallen sharply since hitting an eight-month high of $73 early last week. The drop in prices has sent stocks falling as investors anticipate that a weaker world economy will mean less demand for energy.
In corporate news, General Motors Corp. CEO Fritz Henderson announced that the automaker has emerged from bankruptcy protection after just a little over a month of being under court supervision. He said the company now will focus more on customers, including a partnership with eBay for people to buy vehicles by auction online.
Overseas, Japan’s Nikkei stock average fell 0.04. In afternoon trading, Britain’s FTSE 100 was down 0.3 percent, Germany’s DAX index fell 0.2 percent and France’s CAC-40 lost 0.8 percent.
Bond prices rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.34 percent from 3.41 percent late Thursday.
In other trading, the Russell 2000 index of smaller companies fell 1.24, or 0.3 percent, to 478.03.
About two stocks fell for every one that rose on the New York Stock Exchange, where volume came to a low 135.8 million shares.
The dollar rose against other major currencies, while gold prices were down.
Source
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Showing posts with label The Dow Jones. Show all posts
Showing posts with label The Dow Jones. Show all posts
Thursday, July 16, 2009
Monday, July 13, 2009
Stocks falter as earnings jitters increase
NEW YORK (AP) — Falling oil prices and unease over corporate earnings are putting more pressure on stocks.
Stocks were mostly lower in midday trading Friday as investors shed positions in energy, industrial companies and banks. Both the Dow and the S&P 500 headed toward their fourth straight week of losses — the longest losing streak since the market's rally began in March.
Oil producers fell sharply after Chevron Corp. said its refining margins fell in the second quarter and will send its results for the period much lower compared with last year.
In another blow to energy stocks, the price of crude oil resumed its descent Friday following a slight pop on Thursday, which had broken six straight days of declines. Investors are seeing the plunge in oil prices as a weak indicator for the economy, which won't be as hungry for energy as long as the recession lingers.
The stock market is on edge as the second-quarter earnings season gets under way. Aluminum maker Alcoa Inc. unofficially kicked off the period with better-than-expected results on Wednesday, but the warning from Chevron late Thursday put investors back on the defensive. Both Alcoa and Chevron are components of the Dow Jones industrial average.
The pace of earnings reports picks up speed next week with results coming in from heavy hitters such as Johnson & Johnson, JPMorgan Chase & Co., Google Inc. and General Electric Co. The market is looking closely to the reports and the forecasts companies make for signals on where the economy might be headed.
Investors have sent major indexes down about 7 percent since mid-June on the belief that a more than 40 percent run-up in stocks this spring was unwarranted considering the problems that still plague the economy such as rising unemployment and flagging consumer confidence.
"Job insecurity is crushing confidence in consumer spending," said John Skjervem, chief investment officer for Northern Trust's Personal Financial Services. "It's no wonder we're in this retracement. There is not a lot of good news to hang on to."
In midafternoon trading, the Dow Jones industrial average fell 45.19, or 0.6 percent, to 8,137.98. The Standard & Poor's 500 index lost 3.11, or 0.4 percent, to 879.57, while the technology-heavy Nasdaq composite index rose 2.47, or 0.1 percent, to 1,755.02. A handful of upgrades to technology shares helped temper losses in the Nasdaq.
The declines Friday come after a small advance the day before, when all the major indexes posted single-digit gains. Finding some encouragement in better-than-expected results from aluminum maker Alcoa, investors put money into commodities producers, banks and industrial companies.
Despite the slight increase in risk-taking Thursday, the market's mood is still cautious as investors remain anxious about the state of the economy. Expectations are generally low for the news expected to come out of the second-quarter earnings season.
"Do you really want to get aggressive before earnings when we don't have perfect clarity?" said Alan Villalon, senior research analyst at First American Funds in Minneapolis.
Falling crude prices continued to weigh on the market. A barrel of crude traded at $59.80, down 61 cents, on the New York Mercantile Exchange. Oil prices have fallen sharply since hitting an eight-month high of $73 early last week.
Chevron shares fell $1.72, or 2.7 percent, to $61.36, while Exxon Mobil Corp. fell 83 cents to $65.14.
One bit of good news Friday: The Commerce Department said the U.S. trade deficit narrowed to $26 billion in May — the lowest level in more than nine years.
In corporate news, General Motors Corp. CEO Fritz Henderson announced that the automaker has emerged from bankruptcy protection after just a little over a month of being under court supervision. He said the company now will focus more on customers, including a partnership with eBay for people to buy vehicles by auction online.
Small gains in technology shares helped mitigate the market's losses. Some technology companies moved higher after Goldman Sachs upgraded its view on both hardware and software providers, noting signs of stabilization in the industry.
Citrix Systems Inc. gained 63 cents, or 2 percent, to $32.05, while Dell Inc. added 10 cents to $13.25. Yahoo Inc. shares rose more than 3 percent, adding 51 cents to $15.06, after an upgrade from Thomas Weisel.
Overseas, Japan's Nikkei stock average fell 0.04. Britain's FTSE 100 fell 0.8 percent, Germany's DAX index fell 1.2 percent and France's CAC-40 lost 1.4 percent.
Bond prices rose, sending their yields lower. The yield on the benchmark 10-year Treasury note, a widely used benchmark for consumer loans such as mortgages, fell to 3.30 percent from 3.41 percent late Thursday.
In other trading, the Russell 2000 index of smaller companies rose 0.62, or 0.1 percent, to 479.89.
About three stocks fell for every two that rose on the New York Stock Exchange, where volume came to a relatively low 502.2 million shares compared with 563.8 million shares the same time a day earlier.
The dollar rose against other major currencies, while gold prices were down.
source
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Stocks were mostly lower in midday trading Friday as investors shed positions in energy, industrial companies and banks. Both the Dow and the S&P 500 headed toward their fourth straight week of losses — the longest losing streak since the market's rally began in March.
Oil producers fell sharply after Chevron Corp. said its refining margins fell in the second quarter and will send its results for the period much lower compared with last year.
In another blow to energy stocks, the price of crude oil resumed its descent Friday following a slight pop on Thursday, which had broken six straight days of declines. Investors are seeing the plunge in oil prices as a weak indicator for the economy, which won't be as hungry for energy as long as the recession lingers.
The stock market is on edge as the second-quarter earnings season gets under way. Aluminum maker Alcoa Inc. unofficially kicked off the period with better-than-expected results on Wednesday, but the warning from Chevron late Thursday put investors back on the defensive. Both Alcoa and Chevron are components of the Dow Jones industrial average.
The pace of earnings reports picks up speed next week with results coming in from heavy hitters such as Johnson & Johnson, JPMorgan Chase & Co., Google Inc. and General Electric Co. The market is looking closely to the reports and the forecasts companies make for signals on where the economy might be headed.
Investors have sent major indexes down about 7 percent since mid-June on the belief that a more than 40 percent run-up in stocks this spring was unwarranted considering the problems that still plague the economy such as rising unemployment and flagging consumer confidence.
"Job insecurity is crushing confidence in consumer spending," said John Skjervem, chief investment officer for Northern Trust's Personal Financial Services. "It's no wonder we're in this retracement. There is not a lot of good news to hang on to."
In midafternoon trading, the Dow Jones industrial average fell 45.19, or 0.6 percent, to 8,137.98. The Standard & Poor's 500 index lost 3.11, or 0.4 percent, to 879.57, while the technology-heavy Nasdaq composite index rose 2.47, or 0.1 percent, to 1,755.02. A handful of upgrades to technology shares helped temper losses in the Nasdaq.
The declines Friday come after a small advance the day before, when all the major indexes posted single-digit gains. Finding some encouragement in better-than-expected results from aluminum maker Alcoa, investors put money into commodities producers, banks and industrial companies.
Despite the slight increase in risk-taking Thursday, the market's mood is still cautious as investors remain anxious about the state of the economy. Expectations are generally low for the news expected to come out of the second-quarter earnings season.
"Do you really want to get aggressive before earnings when we don't have perfect clarity?" said Alan Villalon, senior research analyst at First American Funds in Minneapolis.
Falling crude prices continued to weigh on the market. A barrel of crude traded at $59.80, down 61 cents, on the New York Mercantile Exchange. Oil prices have fallen sharply since hitting an eight-month high of $73 early last week.
Chevron shares fell $1.72, or 2.7 percent, to $61.36, while Exxon Mobil Corp. fell 83 cents to $65.14.
One bit of good news Friday: The Commerce Department said the U.S. trade deficit narrowed to $26 billion in May — the lowest level in more than nine years.
In corporate news, General Motors Corp. CEO Fritz Henderson announced that the automaker has emerged from bankruptcy protection after just a little over a month of being under court supervision. He said the company now will focus more on customers, including a partnership with eBay for people to buy vehicles by auction online.
Small gains in technology shares helped mitigate the market's losses. Some technology companies moved higher after Goldman Sachs upgraded its view on both hardware and software providers, noting signs of stabilization in the industry.
Citrix Systems Inc. gained 63 cents, or 2 percent, to $32.05, while Dell Inc. added 10 cents to $13.25. Yahoo Inc. shares rose more than 3 percent, adding 51 cents to $15.06, after an upgrade from Thomas Weisel.
Overseas, Japan's Nikkei stock average fell 0.04. Britain's FTSE 100 fell 0.8 percent, Germany's DAX index fell 1.2 percent and France's CAC-40 lost 1.4 percent.
Bond prices rose, sending their yields lower. The yield on the benchmark 10-year Treasury note, a widely used benchmark for consumer loans such as mortgages, fell to 3.30 percent from 3.41 percent late Thursday.
In other trading, the Russell 2000 index of smaller companies rose 0.62, or 0.1 percent, to 479.89.
About three stocks fell for every two that rose on the New York Stock Exchange, where volume came to a relatively low 502.2 million shares compared with 563.8 million shares the same time a day earlier.
The dollar rose against other major currencies, while gold prices were down.
source
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Monday, July 6, 2009
Stocks, commodities retreat after job losses top estimates
A worse than expected employment report sent stock prices sharply lower Thursday.
The Dow Jones industrial average fell 223.32 points to 8,280.74, its biggest decline since April 20. All 30 stocks in the index traded lower. The Nasdaq composite index was down 49.20 points to 1,796.52 and the S&P 500 stock index dropped by 26.91 points to 896.42.
For the day, all three indexes were down more than 2.5 percent. That was enough to wipe out modest gains in the first three sessions of the holiday-shortened week. The Nasdaq was down 2.27 percent, the S&P 500 fell 2.44 percent and the Dow dipped 1.87 percent.
The Labor Department reported that payrolls fell by 467,000 jobs in June, much more than had been anticipated. The nation's unemployment rate rose to 9.5 percent.
The prospects of continued economic weakness sent oil prices lower. Crude closed at $66.73 a barrel, down $2.58 on the day and 3.5 percent for the week.
"It's ugly out there," Jack Ablin, who oversees $60 billion as chief investment officer at Harris Private Bank in Chicago, told Bloomberg Television. "We were trying to gain a little bit of traction on the jobs front, to get less bad numbers on a monthly basis. Clearly this month's report is a setback."
The stock market's three-week slump has been spurred by concern the S&P 500's 40 percent surge since March outpaced prospects for a recovery in the economy and corporate profits. The U.S. equity benchmark is poised to cap its longest stretch of weekly losses since March. U.S. markets will be closed Friday for the Independence Day holiday.
A divergence of Dow Jones's industrial, transportation and utility stock indexes suggests a rally in the U.S. market may stay stalled near current levels, according to Andrew Burkly, a technical analyst at Brown Brothers Harriman.
The Dow Jones industrial average last month rose to the highest reading since January before retreating to a level that's still above the average of the past 50 days. The Dow Jones utilities average, on the other hand, extended its June rally into this month, hitting a five-month high yesterday. The Dow Jones transportation average, while also staying above its 50-day moving average, generated the least bullish pattern by failing to exceed a May high, according to Burkly.
The second-quarter earnings season will kick off next week with Alcoa Inc. (NYSE: AA), the largest U.S. aluminum producer, reporting results on July 8. Analysts estimate profits in the S&P 500 declined 34 percent in the second quarter and will slump 21 percent on average in the third before rebounding 61 percent in the final three months of the year, according to Bloomberg data.
"I have a hard time imagining we're going to go into a new raging bull market from here," said Randy Frederick, director of trading and derivatives at Charles Schwab & Co. in Austin, Texas. "People can't spend if their comfort level is low and they're worried about their jobs."
Home Depot Inc. (NYSE: HD), the biggest home-improvement retailer, lost 3.9 percent to $22.79. Alcoa, the nation's largest aluminum producer, retreated 3.7 percent to $9.97. Travelers, the insurer that stayed profitable through the credit crisis, slumped 3.5 percent to $39.69.
General Motors Corp. (OTC: GMGMQ), the bankrupt automaker selling most of its assets to the U.S. government, may file for an initial public offering of its stock in 2010, according to an adviser to President Barack Obama. GM was in bankruptcy court this week seeking approval to sell most of its assets to the Treasury, which is paying for the company with the more than $27 billion in loans it has made to the automaker.
Johnson Controls Inc. (NYSE: JCI) posted the S&P 500's second-steepest loss, sliding 7.4 percent to $21.07. The maker of car interiors and batteries was downgraded to "Hold" from "Buy" at Deutsche Bank AG on concern the stock price already reflects the company's ability to navigate the auto industry slump.
The stock's decline in the index was exceeded only by an 8.9 percent tumble in shares of Monster Worldwide Inc., the world's largest online recruiting company, following the jobs report. The Labor Department figures showed the jobless rate rose to 9.5 percent, the highest since August 1983, from 9.4 percent.
"It's clearly disappointing," Hugh Johnson, who manages more than $1.5 billion as chairman of Albany, New York-based Johnson Illington, said of the employment data. "I would argue that we'll have a correction between 5 and 15 percent" in the stock market.
All 40 stocks in the S&P 500 Energy Index tumbled. Halliburton Co. (NYSE: HAL) and Hess Corp. (NYSE: HES) lost more than 5.5 percent, leading the measure of oil drillers, explorers and equipment suppliers to a 3.1 percent slump.
Elan Corp. (NYSE: ELN) surged 13 percent to $7.88. Johnson & Johnson (NYSE: JNJ) agreed to develop its medicines against Alzheimer's disease and pay $1 billion for an 18.4 percent stake in the Irish drugmaker.
Benchmark indexes advanced yesterday, adding to gains from the S&P 500's best quarter since 1998, as improving gauges of manufacturing and home sales added to optimism the worst of the recession is over.
source
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The Dow Jones industrial average fell 223.32 points to 8,280.74, its biggest decline since April 20. All 30 stocks in the index traded lower. The Nasdaq composite index was down 49.20 points to 1,796.52 and the S&P 500 stock index dropped by 26.91 points to 896.42.
For the day, all three indexes were down more than 2.5 percent. That was enough to wipe out modest gains in the first three sessions of the holiday-shortened week. The Nasdaq was down 2.27 percent, the S&P 500 fell 2.44 percent and the Dow dipped 1.87 percent.
The Labor Department reported that payrolls fell by 467,000 jobs in June, much more than had been anticipated. The nation's unemployment rate rose to 9.5 percent.
The prospects of continued economic weakness sent oil prices lower. Crude closed at $66.73 a barrel, down $2.58 on the day and 3.5 percent for the week.
"It's ugly out there," Jack Ablin, who oversees $60 billion as chief investment officer at Harris Private Bank in Chicago, told Bloomberg Television. "We were trying to gain a little bit of traction on the jobs front, to get less bad numbers on a monthly basis. Clearly this month's report is a setback."
The stock market's three-week slump has been spurred by concern the S&P 500's 40 percent surge since March outpaced prospects for a recovery in the economy and corporate profits. The U.S. equity benchmark is poised to cap its longest stretch of weekly losses since March. U.S. markets will be closed Friday for the Independence Day holiday.
A divergence of Dow Jones's industrial, transportation and utility stock indexes suggests a rally in the U.S. market may stay stalled near current levels, according to Andrew Burkly, a technical analyst at Brown Brothers Harriman.
The Dow Jones industrial average last month rose to the highest reading since January before retreating to a level that's still above the average of the past 50 days. The Dow Jones utilities average, on the other hand, extended its June rally into this month, hitting a five-month high yesterday. The Dow Jones transportation average, while also staying above its 50-day moving average, generated the least bullish pattern by failing to exceed a May high, according to Burkly.
The second-quarter earnings season will kick off next week with Alcoa Inc. (NYSE: AA), the largest U.S. aluminum producer, reporting results on July 8. Analysts estimate profits in the S&P 500 declined 34 percent in the second quarter and will slump 21 percent on average in the third before rebounding 61 percent in the final three months of the year, according to Bloomberg data.
"I have a hard time imagining we're going to go into a new raging bull market from here," said Randy Frederick, director of trading and derivatives at Charles Schwab & Co. in Austin, Texas. "People can't spend if their comfort level is low and they're worried about their jobs."
Home Depot Inc. (NYSE: HD), the biggest home-improvement retailer, lost 3.9 percent to $22.79. Alcoa, the nation's largest aluminum producer, retreated 3.7 percent to $9.97. Travelers, the insurer that stayed profitable through the credit crisis, slumped 3.5 percent to $39.69.
General Motors Corp. (OTC: GMGMQ), the bankrupt automaker selling most of its assets to the U.S. government, may file for an initial public offering of its stock in 2010, according to an adviser to President Barack Obama. GM was in bankruptcy court this week seeking approval to sell most of its assets to the Treasury, which is paying for the company with the more than $27 billion in loans it has made to the automaker.
Johnson Controls Inc. (NYSE: JCI) posted the S&P 500's second-steepest loss, sliding 7.4 percent to $21.07. The maker of car interiors and batteries was downgraded to "Hold" from "Buy" at Deutsche Bank AG on concern the stock price already reflects the company's ability to navigate the auto industry slump.
The stock's decline in the index was exceeded only by an 8.9 percent tumble in shares of Monster Worldwide Inc., the world's largest online recruiting company, following the jobs report. The Labor Department figures showed the jobless rate rose to 9.5 percent, the highest since August 1983, from 9.4 percent.
"It's clearly disappointing," Hugh Johnson, who manages more than $1.5 billion as chairman of Albany, New York-based Johnson Illington, said of the employment data. "I would argue that we'll have a correction between 5 and 15 percent" in the stock market.
All 40 stocks in the S&P 500 Energy Index tumbled. Halliburton Co. (NYSE: HAL) and Hess Corp. (NYSE: HES) lost more than 5.5 percent, leading the measure of oil drillers, explorers and equipment suppliers to a 3.1 percent slump.
Elan Corp. (NYSE: ELN) surged 13 percent to $7.88. Johnson & Johnson (NYSE: JNJ) agreed to develop its medicines against Alzheimer's disease and pay $1 billion for an 18.4 percent stake in the Irish drugmaker.
Benchmark indexes advanced yesterday, adding to gains from the S&P 500's best quarter since 1998, as improving gauges of manufacturing and home sales added to optimism the worst of the recession is over.
source
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