Market News

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Thursday October 4, 11:41 am ET
By Martin Crutsinger, AP Economics Writer
Factory Orders Drop by Biggest Amount in 7 Months Reflecting Widespread Weakness WASHINGTON (AP) -- Orders to U.S. factories fell in August by the largest amount in seven months, reflecting weakness across a wide swath of manufacturing.The Commerce Department said that orders dropped by 3.3 percent in August, even worse than the 2.8 percent decline that had been expected. It was the biggest setback since orders fell 4.2 percent in January.



http://biz.yahoo.com/ap/071004/economy.html?.v=22

 

[weatherweenie]

WASHINGTON (MarketWatch) - The U.S. unemployment rate rose to 4.7% in September, but job growth was stronger than expected over the past three months, the Labor Department reported Friday. Nonfarm payrolls rose by 110,000 in September, including 73,000 in the private sector, very close to expectations of 113,000 total payrolls. Payroll growth in July and August was revised higher by 118,000, the government said. The unemployment rate ticked up to 4.7%, the highest in a year. The labor force expanded by 573,000, and employment as measured by the household survey rose by 463,000, the most in more than two years. The details of the report paint a picture of a stronger job market than expected and could lead financial markets to lower their expectations for another interest-rate cut by the Federal Reserve at the end of the month.

 

[weatherweenie]

LONDON (MarketWatch) -- U.S. stock market futures posted gains Friday ahead of closely-watched data on nonfarm payrolls which could indicate whether the Federal Reserve will cut interest rates again in October.


S&P 500 futures rose 4.30 points at 1,556.50 and Nasdaq 100 futures rose 4.75 points at 2,127.75. Dow industrial futures climbed 24.

 

[fedgolfer]

This morning's econ data really shows the consumer is stronger than everyone thought. But still, I can't get around the fact that the Fed acted on bad job numbers last month and cut 50 pts, but now, those numbers are revised upwards -- obviously meaning the subprime/credit scare didn't adversely effect jobs like originally thought. I guess its all good for those of us in equities, unless the markets really starts to question the Fed's actions on data, which they won't as long as markets are up. Any thoughts on where the dollar goes from here?

 

[James48843]

Market is going to love jobs growth. Right exactly in line with expectations.

I see probable Big up day ahead.



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110,000 Jobs Added to Economy Last Month
Friday October 5, 9:17 am ET
By Jeannine Aversa, AP Economics Writer Payrolls Pick Up by 110,000 but Not Enough to Stop Jobless Rate From Rising to 4.7 Percent


WASHINGTON (AP) -- Job creation picked up in September but not enough to stop the unemployment rate from rising to 4.7 percent, the highest in just over a year.

The new job market snapshot released by the Labor Department on Friday showed that employers boosted payrolls by 110,000, the most in one month since last May. In an encouraging note, the economy actually added 89,000 jobs in August. That marked an improvement from the net loss of 4,000 that the government first estimated.

More: http://biz.yahoo.com/ap/071005/economy.html?.v=6

 

[weatherweenie]

Google's stock is getting a boost from Bear Stearns, which raised Google's 2008 price target to $700. The firm has updated its model to reflect a more thorough fundamental look at Google's online search drivers, YouTube's potential revenue contribution, and Google's efforts in radio and print advertising.

 

[weatherweenie]

Alcoa shares halted. News pending.

 

[weatherweenie]

• income from continuing operations of $558 million, or $0.64 per share, a three percent increase from a year ago.
• Revenues of $7.4 billion.
• Board increases authorization to repurchase shares to 25 percent of outstanding shares, up from previously authorized 10 percent.
• Chalco sale and upcoming packaging and automotive castings sales to provide cash and flexibility to enhance shareholder value.
• Debt-to-capital stands at 29 percent.
• Trailing 12-month ROC stands at 11.8 percent including significant growth investments; excluding investments in growth, ROC is 14.6 percent.
• Quarterly results impacted by Chalco gain, restructuring and impairment charges, currency, seasonality, metal prices, higher energy costs and softening markets.

Alcoa (NYSE:AA - News) today reported third quarter income from continuing operations of $558 million, or $0.64 per diluted share. Third quarter income from continuing operations increased three percent from $540 million, or $0.62, in the third quarter of 2006. Income from continuing operations was $716 million, or $0.81, in the second quarter of 2007.

 

[weatherweenie]

International Paper Co.(IP 37.06, +0.64, +1.8%) shares fell 3% to $35.95. The company said it expects its third-quarter earnings to be less than analysts' forecast because of lower-than-expected land sales. Analysts currently expect earnings of 63 cents a share. (IP
International Paper said that though third-quarter profit is expected to fall short of Wall Street's projection, it is expected to exceed second-quarter earnings of 52 cents a share. The Memphis, Tenn., paper and forest products company expects to report land sales earnings of about $100 million for the quarter, compared with its earlier forecast of $110 million to $140 million.
International Paper expects to report full-year 2007 land sales earnings of $450 million to $500 million. It also said fourth-quarter earnings from its joint venture with Ilim Group will be included in its first-quarter 2008 financial statements.

 

[weatherweenie]

10/10 Earnings reports

http://biz.yahoo.com/research/earncal/today.html

 

[weatherweenie]

Wal-Mart raises Q3 EPS guidance to $0.66-0.69 from $0.62-0.65, vs $0.63 consensus

 

[weatherweenie]

NEW YORK (Reuters) - Wal-Mart Stores Inc (NYSE:WMT - News) on Thursday reported a 1.4 percent rise in September sales at U.S. stores open at least a year, toward the low end of its forecast, but the world's largest retailer raised its third-quarter earnings estimate.

http://biz.yahoo.com/rb/071011/walmart_sales.html?.v=2

 

[weatherweenie]

8:00am ET
[BRIEFING.COM] S&P futures vs fair value: +9.3. Nasdaq futures vs fair value: +10.5. Futures indicate a positive opening. PepsiCo (PEP) reported better than expected earnings. Wal-Mart (WMT) reported lower than expected same-store sales, but raised its third quarter earnings guidance. Meanwhile, the Bank of Japan voted to keep its interest rate at 0.50%.

 

[weatherweenie]

8:30am ET
[BRIEFING.COM] S&P futures vs fair value: +9.1. Nasdaq futures vs fair value: +11.75. The futures market continues to have a bullish bias. Google (GOOG) may extend its good run today after having its target price raised at another brokerage firm.

 

[weatherweenie]

LOS ANGELES (AP) -- Foreclosure filings across the U.S. nearly doubled last month compared with September 2006, as financially strapped homeowners already behind on mortgage payments defaulted on their loans or came closer to losing their homes to foreclosure, a real estate information company said Thursday.

http://biz.yahoo.com/ap/071011/foreclosure_rates.html

 

[Frixxxx]

LOS ANGELES (AP) -- Foreclosure filings across the U.S. nearly doubled last month compared with September 2006, as financially strapped homeowners already behind on mortgage payments defaulted on their loans or came closer to losing their homes to foreclosure, a real estate information company said Thursday.

http://biz.yahoo.com/ap/071011/foreclosure_rates.html

WW, what were the foreclosure rates during the last major recession? Are these number relational to past performances? I mean, it's easy to see that this would happen but are we rehashing past items?

"Those who forget the past are doomed to repeat it?"

 

[weatherweenie]

Record Exports Help Push Trade Deficit to Lowest Level in 7 Months WASHINGTON (AP) -- The U.S. trade deficit fell to the lowest level in seven months, helped by record-high sales of American products and the declining value of the dollar. The deficit with China declined as imports edged down slightly following a string of high-profile recalls. The Commerce Department reported Thursday that the deficit declined to $57.6 billion in August, down 2.4 percent from the July imbalance. It was lowest gap between exports and imports since January and a much better showing than had been expected.

http://biz.yahoo.com/ap/071011/economy.html

 

[weatherweenie]

Briefing.com
Market View: S&P 500 pauses at resistance (TECHX) 1569.56 +7.09 : Noted resistance in the 1570/1571 area earlier this morning and have seen the index edge back after hitting 1571. Intraday support is at 1567 with no damage done to the very short term pattern (recently hit 1569.34) as long as the recent highs at 1565 are not taken out. Secondary resistance is at 1574/1575.

 

[weatherweenie]

Briefing.com:
The financial sector (+1.0%), though, is a large factor in the upward push, as it is now a leader after previously lagging the market. All industries within the financial sector, with the exception of insurance brokers (-0.5%), are currently showing gains.
Also of note, the energy sector (1.6%) is the leader as crude oil continues to gain. Crude oil futures are approaching all-time highs and are now up 2.5% to $83.30. Crude oil is up 23.2% year-to-date.

 

[weatherweenie]

Briefing.com:
2:30 pm : In a striking turn of events, the major indices have sold off hard in the past half hour, with each revisiting negative territory.
There wasn't any specific piece of news to account for the reversal that has been broad-based. The tech sector (-0.6%) is spearheading the retreat, although the retailers and consumer discretionary sector (-0.3%) are also playing an active role.
Frankly, the strength in the retail index earlier was questionable in light of the lackluster same-store sales reports for September and the fact that Wal-Mart's (WMT) positive earnings surprise was really a company-specific situation.
That the indices would run into profit taking shouldn't be a complete surprise. After all, they have made a remarkable (and unsustainable run) off their lows since August 16. To this point, at their highs today, the Nasdaq, Russell 2000, S&P 500 and Dow, were up 17%, 16%, 15% and 13% from their August 16 lows.