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tanglinboy
Elite |
08-Jun-2006 07:24
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STI will fall today again...
Another losing day for Wall St. Dow closes below 11,000; blue-chip index, Nasdaq on four-session losing streak.
NEW YORK (CNNMoney.com) - The Dow Jones industrials fell for the fourth straight session Wednesday and closed below 11,000 for the first time in nearly three months as concerns about inflation and uncertainty about interest rates continued to hound investors. The Dow Jones industrial average (down 71.24 to 10,930.90, Charts) tumbled about 0.7 percent. The last time the blue-chip index finished below the key psychological 11,000 mark was March 9.
The 30-stock Dow, the world's most widely watched market gauge, has lost about 330 points over the past four sessions and has tumbled 6.1 percent since May 10, when it came about 80 points shy of its all-time high. The Standard & Poor's 500 index (down 7.70 to 1,256.15, Charts) declined 0.6 percent, and the Nasdaq composite (down 10.98 to 2,151.80, Charts) lost 0.5 percent. The tech-fueled Nasdaq has posted declines for four consecutive sessions, while the broader S&P 500 is on a three-session losing streak. A more than 2 percent decline in crude prices offered stocks some support Wednesday, but the relief rally fizzled in the afternoon as investors shifted gears and started selling. "We're really in a no man's land right now. We don't know if the market's been through a correction or if it's the start of a bear market," said David Briggs, head of equity trading at Federated Investors. No major economic reports were released, but investors took in more comments from Fed officials. Thursday brings another day light on economic reports, which lately in the market has resulted in choppy trading. As of 5:30 p.m. ET, Nasdaq and S&P futures pointed to a lower opening for stocks Thursday. Fed speak
Atlanta Fed President Jack Guynn said Wednesday that core inflation has exceeded the level he considers to be acceptable, joining the latest chorus of Fed officials to take a hawkish tone on inflation. (Full story.) Fed Governor Mark Olson also spoke, but didn't comment on the economic outlook. Former Fed chief Alan Greenspan testified before a Congressional hearing that the U.S. and world economy have been able to withstand the high price of oil, but some recent signs indicate that may be ending. (Full story.) While Greenspan no longer makes Fed policy, his words are still closely watched by policy-makers and investors, who are scrutinizing every comment from current Fed officials as they seek clues about the outlook for inflation and interest rates. Inflation worries, along with nervousness over interest rates, have roiled stocks all week. Chairman Ben Bernanke set off the latest round of jitters Monday, when he warned about inflation running uncomfortably high, as the economy starts to slow. (Full story.) The combination of rising inflation and slowing growth is especially lethal for stocks. "From our standpoint, (nervousness about inflation) is something that is keeping the Fed from backing off the brake pedal, and that's what's waylaying us," said Bryan Piskorowski, market analyst at Wachovia Securities. What moved?
Among Dow issues, 19 stocks advanced while 11 fell. Exxon Mobil (down $1.58 to $58.82, Research), down 2.6 percent, was the biggest decliner. Oil shares were weak. The Philadelphia Oil Service Sector (down $10.04 to $200.33, Research) index tumbled 4.8 percent after crude prices fell. U.S. light crude oil for July delivery sank $1.68 to settle at $70.82 a barrel on the New York Mercantile Exchange after the government's weekly inventory report showed a rise in crude and gas stocks. Chip stocks sank. Advanced Micro Devices (down $0.95 to $28.00, Research) posted a 3.3 percent decline, Intel (down $0.40 to $17.39, Research) slid 2.4 percent and Texas Instruments (down $0.71 to $30.72, Research) lost 2.3 percent. Elsewhere, shares of the NYSE Group (down $0.80 to $59.70, Research) fell about 1.3 percent after French president Jacques Chirac announced his opposition to the New York-based exchange's proposed merger with Europe-based Euronext. Shares of L-3 Communications (up $3.44 to $76.93, Research) surged 4.7 percent after the defense contractor's CEO died suddenly late Tuesday, leaving the company susceptible to corporate buyers. Target (up $1.30 to $48.90, Research) jumped 2.8 percent after Lazard Capital upgraded the retailer to "buy" from "hold." Pfizer (up $0.07 to $23.91, Research) rose after a news report said the drugmaker received bids of more than $14 billion for its consumer products division, which includes Listerine, Rolaids, Sudafed and other well known brands. Bidders include British drugmaker GlaxoSmithKline (up $0.51 to $56.00, Research), U.S. drug and consumer product maker Johnson & Johnson (up $0.23 to $61.17, Research), as well as a British household cleaning products maker, Reckitt Benckiser, according to a report in the New York Times. Market breadth was negative. On the New York Stock Exchange, decliners topped advancers by a margin of five to three on volume of 1.83 billion shares. On the Nasdaq, losers beat winners by a margin of four to three as 1.94 billion shares changed hands. Treasury prices fell, raising the yield on the benchmark 10-year note to 5.02 percent, up from 5 percent late Tuesday. Treasury prices and yields move in opposite directions. In currency trading, the dollar rose against the euro and the yen after hitting a one-month high versus the yen Tuesday. COMEX gold for August delivery fell for a second straight day, losing $2 to settle at $632.70 an ounce. ----------------- |
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tanglinboy
Elite |
07-Jun-2006 07:12
Yells: "hello!" |
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Down again....
From CNN - Devil of a day for the Dow Blue-chip measure sinks for 3rd session, 4-week loss now nearly 650 points as investors brace for Fed rate hike in June.
NEW YORK (CNNMoney.com) - Inflation jitters and nervousness over interest rates dragged blue chips lower for the third straight session Tuesday, leaving the Dow Jones industrial average battered and barely above 11,000. The 30-share Dow (down 46.58 to 11,002.14, Charts), the world's most widely watched stock market gauge, spent most of the session below the 11,000 milestone as investors braced for what they now assume will be another rate hike by the Federal Reserve later this month.
The Standard & Poor's 500 index (down 1.44 to 1,263.85, Charts) and the Nasdaq composite (down 6.84 to 2,162.78, Charts) posted modest losses. Elsewhere, the dollar rose along with bond prices, while oil edged lower. The Dow has now tumbled nearly 650 points, or 5.5 percent, since coming about 80 points shy of its all-time high on May 10, as concerns about inflation, the outlook for rates, and the stewardship of new Fed Chairman Ben Bernanke have all made financial markets nervous. With no economic reports on tap Tuesday, investors focused on comments from a number of Fed officials, who talked tough on inflation a day after Bernanke made similar comments to a bankers' conference in Washington. The effect was clear: investors now believe there's a much greater chance the Fed will raise its short-term rate target for a 17th straight time when the central bank's policy-makers meet on June 28-29. Rate futures on the Chicago Board of Trade show investors are now betting on an 80 percent chance of a June rate hike, up from 42 percent late Friday. "The market is bracing for another rate hike. But more than that, there's the fear the rate hiking cycle won't end in June," said Eugene Peroni, senior managing director at Claymore Advisors. Investors can expect that more of the same in the weeks ahead, according to Ralph Acampora, technical analyst at Knight Capital Group. "We don't think this is the end of the market's jitteriness. We expect more downside," he said. On Wednesday, investors will take in a reading on April wholesale inventories and the weekly jobless claims report. As of 5:40 p.m. ET, Nasdaq and S&P futures pointed to a higher opening for stocks Wednesday. Fed in focus
The latest round of Fed speak echoed warnings Bernanke made Monday about inflation running uncomfortably high even as the economy starts to slow. (Full comments.) Fed Governor Susan Bies said Tuesday that given the recent high readings on inflation and expectations for slower economic growth ahead, the central bank can't say when it will be finished raising rates. (Full story.) St. Louis Federal Reserve President William Poole said in an interview published in the Wall Street Journal Tuesday that a slowing economy may not reduce inflation. (Full story.) Bernanke's statements stoked fears that rates are headed higher and sent the Dow skidding to its third-biggest point and percentage loss of the year Monday. The Nasdaq and S&P 500 turned in their second-worst performances for 2006. Uncertainty surrounding rates has pressured stocks since May 10, the day of the last Fed meeting, when the central bank policy-makers offered no clear sign of what investors can expect in coming months. Investors are also still getting acquainted with Bernanke, who took the helm at the central bank from Alan Greenspan on Feb. 1. The new Fed chief was perceived to be more dovish on inflation when he took over, but his hawkish turn has taken some in the market by surprise, Claymore Advisors' Peroni said. Higher rates hurt stocks since they weigh on corporate earnings and make other investments, like cash, more attractive. "The market has been hanging on every utterance from a Fed official about the likely course of events on June 29," said Ken Mayland, president of ClearView Economics, a firm specializing in economic research and forecasting. What moved?
Among Dow stocks, 18 fell and 12 rose. Economically sensitive issues like Alcoa (down $0.69 to $30.69, Research), Boeing (down $1.48 to $80.65, Research) and United Technologies (down $1.40 to $60.05, Research) led the declines. Elsewhere, shares of consumer companies less dependent on swings in the economy benefited as investors turned more defensive. Winners included Pepsi (up $0.77 to $60.52, Research) and Johnson & Johnson (Research), both up about 1.3 percent, and Colgate-Palmolive (up $0.62 to $60.21, Research), which rose 1 percent. Stocks in the rate-sensitive housing sector remained under pressure. The Dow Jones U.S. Home Construction index sank 3.9 percent after tumbling 5 percent Monday. Hewlett-Packard (down $0.69 to $30.90, Research) revised its second-quarter profit higher and bumped up its earnings outlook for the full fiscal year, but shares still fell. Shares of embattled automaker General Motors (down $0.80 to $25.25, Research) lost 3 percent after CEO Rick Wagoner told shareholders that the company would have problems hitting its target to cut costs by $1 billion this year. In corporate news, IBM (up $0.70 to $79.76, Research) said it plans to invest nearly $6 billion in India over three years. Shares rose nearly 1 percent. Market breadth was negative. On the New York Stock Exchange, decliners topped advancers by a margin of two to one on volume of 1.88 billion shares. On the Nasdaq, losers beat winners by a margin of three to two as 2.11 billion shares changed hands. Oil prices edged lower, stemming two straight days of gains that contributed to investor skittishness about inflation Monday. U.S. light crude oil for July delivery fell 10 cents to settle at $72.50 a barrel on the New York Mercantile Exchange. The front-month contract had tumbled as low as $71.35 a barrel after Iran said proposals made by world powers to end a standoff over its nuclear program had positive points. Treasury prices rose, lowering the yield on the benchmark 10-year note to 5 percent from 5.02 percent late Monday. Treasury prices and yields move in opposite directions. In currency trading, the dollar rose against the euro and soared to a one-month high versus the yen on expectations for another rate raise from the Fed. COMEX gold for August delivery tumbled $13.70 to settle at $635 an ounce. |
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tanglinboy
Elite |
05-Jun-2006 22:09
Yells: "hello!" |
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Because of Oil fears - CNN article - Oil prices climbed over $1 near $74 Monday after Iran hinted it might use oil production as a weapon in its nuclear dispute with the West and hitches at U.S. refineries spurred worries about fuel supplies. U.S. light crude for July delivery traded $1.42 higher at $73.75 a barrel, after gains of $1.99 on Friday. London Brent crude rose $1.55 to $72.58 a barrel.
Iran's Supreme Leader Ayatollah Ali Khamenei said if the United States makes a "wrong move" over Iran, energy flows from the world's fourth-largest exporter will be endangered. "The gains are a combination of everything but most importantly it's Iran," said broker John Brady from ABN AMRO in New York. "We've had mixed messages before but it certainly stokes fears." Tension between Iran and the West over Tehran's nuclear program have helped drive oil's 20 percent rally this year. Iranian officials have previously ruled out using oil as a weapon in their nation's nuclear stand-off with the West, but Khamenei's comments suggested Iran could disrupt supplies if pushed. U.S. Secretary of State Condoleezza Rice reacted to his comments on Sunday by counseling a wait-and-see approach. Washington has offered to join European countries in talks with Iran about the nuclear program, but says Iran must first suspend uranium enrichment. Iran has so far rejected the demand, saying enrichment is a national right. President Mahmoud Ahmadinejad said on Saturday Iran will consider proposals on incentives to stop nuclear work from the United States, Russia, China, France, Germany and Britain but also insisted that the crux of the package was unacceptable. Oil prices were also boosted by production problems at U.S. refineries during the start of peak summer fuel demand. "We're in the driving season and the hurricane season, so we're in the mode where the market seasonally trades higher," said Brady. Oil product futures gained ground on Monday, with gasoline up 1.4 percent at $2.2285 a gallon while heating oil rallied 1.4 percent to $2.0428 a gallon. Three south Texas plants were restoring production on Sunday and receiving tankers into Corpus Christi harbor as it reopened following an oil spill, after urgent repairs and severe thunderstorms hurt production at five U.S. plants. The disruptions come at the start of what is expected to be another busy storm season in the U.S. Gulf, where hurricanes last year devastated oil facilities and drove oil to record highs. OPEC producers agreed last week to leave output limits unchanged and keep pumping at near full rates in a bid to ease prices, which they worry will spur inflation that could slow economic growth and sap oil demand. OPEC linchpin Saudi Arabia cut oil exports to 9.1 million barrels per day in April due to a drop in refinery demand, not a desire to lower stock levels, The Wall Street Journal on Monday quoted its Oil Minister Ali al-Naimi as saying. In OPEC member Nigeria, kidnappers freed eight foreign oil workers on Sunday, two days after they were seized in an unprecedented raid on an exploration rig far offshore. Attacks onshore or in shallow water are frequent in the Niger Delta, but this showed that even deep offshore facilities are no longer safe. A series of militant attacks have already cut a quarter of output from the world's eight biggest crude exporter. |
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tanglinboy
Elite |
05-Jun-2006 22:06
Yells: "hello!" |
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Dow falls 66 points to 11,181.20.... sigh... |
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