Market News

[weatherweenie]

10:00 am : The stock market remains well into negative territory with little support. More than 85% of the S&P 500 components are trading lower.
Energy (-1.2%) and materials (-1.7%) are currently the two worst performing sectors this session.
Energy's downturn comes despite record oil prices. Crude prices are pushing higher again, already moving past $126 per barrel earlier this session. Materials lag even though the dollar is showing some signs of weakness. The dollar index is down 0.4%.

 

[weatherweenie]

[BRIEFING.COM] S&P futures vs fair value: +3.8. Nasdaq futures vs fair value: +4.0. Futures point to a modestly higher open as traders shrug off lowered fourth quarter earnings guidance at FedEx (FDX). In earnings news, Sprint Nextel (S) topped its estimates, while bond insurer MBIA (MBI) posted a massive first quarter loss of $2.4 billion. In deal news, Cablevision (CVC) is close to buying the newspaper Newsday for $650 million after News Corp. (NWS.A) withdrew its bid, according to the Wall Street Journal.

 

[weatherweenie]

April Consumer Prices Rise 0.2% Vs. 0.3% Exp., Up 0.1% Ex-Food and Energy Vs. 0.2% Exp.

 

[weatherweenie]

[BRIEFING.COM] S&P futures vs fair value: +6.7. Nasdaq futures vs fair value: +10.0. Futures point to a higher start thanks to the tamer than expected inflation reading. Crude oil is trading down 0.3% to $125.40 per barrel ahead of the government's weekly energy report.

 

[luv2read]

the worst hasn't hit..."energy prices are steady???" LMAO!:laugh::nuts:

 

[Birchtree]

You should also be aware that the housing crisis is over. The housing market will turn because normal people can afford homes again.

 

[robo]

You should also be aware that the housing crisis is over. The housing market will turn because normal people can afford homes again.

Yep, It's true, and houses are getting cheaper everyday. It's just to darn bad folks can't afford food and gas.

 

[luv2read]

Median home prices down 7.7% on the year, now under $200,000. Credit tightening was responsible for most of it, which is IMHO a good thing (although you won't hear people saying that too loudly!), as we need to return to solid, honest lending standards.

The real problem here isn't the instant impact, it is what it does to boomers who have most of their net worth tied up in their house. The hopes and dreams of these people are being smashed to dust as many of them have "lived larger" by pulling HELOC and cash-out money for the last several years and are now seeing their equity position be destroyed wholesale.

Ultimately this is a very ugly phenomena as it will leave them reliant on social programs that cannot be sustained (e.g. Social Security) or keep them from retiring at all. Down that rabbit hole of course lies decades of slower consumer spending and productivity - not a good macro-level trend at all, but it is a reality we cannot avoid.

Oh, if you're wondering how our bank's "reserves" are, have a peek.

Hint: Sit down first, and click for a big version. You won't need your reading glasses, in fact, I might suggest getting drunk to blunt the impact.....

[URL]http://market-ticker.denninger.net/[/URL]

He's not talking about idiots who bought a bigger house than they could afford on ARMS. He's talking about "normal people." Took equity for home improvements, kids' college, cars, trips.

Looking back, and seeing how the fed is manipulating things in cahoots with financials, it seems awfully coincidental that things came crashing down just as the first boomers begin to retire. My paranoia tells me this is all part of a scheme to keep us working longer. We're all living longer, Congress will have to increase payroll taxes or the minimum retirement age, most likely both, to bail out SS and Medicare.

Market's up today on bogus numbers - "energy costs are level" LMAO! Wait until the April and May price increases are priced in. Oil & gas stockpiles down...but last report was they were up. If the reduced number is correct, that just means that the companies are exporting it due to reduced US demand. IMO whatever numbers industry and the market want the government to report that will manipulate things the way they want...they get.

 

[Birchtree]

I can tell it will take a lot of work to turn you around.

 

[luv2read]

I can tell it will take a lot of work to turn you around.

lol Birch! I'm a positive person at heart, I've just been burned twice so I'm extra cautious. I believe what I see, not what I read. I see inflation everywhere. When the visual evidence, media, and technical indicators ALL jive, then I'll believe we're out of the woods for good.

 

[Birchtree]

The market is at 12,980 +148. Wouldn't it be sweet to tack on another 100 points before the close.

 

[weatherweenie]

[BRIEFING.COM] S&P futures vs fair value: +1.9. Nasdaq futures vs fair value: -1.5. Stock futures have come down following a couple economic reports. Initial jobless claims for the week ending May 10 totaled 371,000, which is largely in-line with the 370,000 claims economists forecast. The Empire State Manufacturing Index for May came in at -3.2. Economists expected a flat reading.

 

[weatherweenie]

[BRIEFING.COM] S&P futures vs fair value: -0.8. Nasdaq futures vs fair value: +0.2. Futures point to a muted start to the trading day. The top story this morning is news that Microsoft (MSFT) announced it is in talks to make a transaction with Yahoo! (YHOO), but the transaction does not involve acquiring all of Yahoo. In earnings news, retailer Lowe's (LOW) topped its earnings estimate by a penny, but reported revenue that fell short of expectations. Meanwhile, crude oil is trading up 0.9% to $127.40 per barrel, $0.42 cents shy of its all-time high that was reached last Friday.

 

[weatherweenie]

[BRIEFING.COM] S&P futures vs fair value: -9.0. Nasdaq futures vs fair value: -8.2. Futures have a delayed reaction to the PPI data, eventually falling to fresh session lows. Crude continues its record run, gaining 0.3% to $127.45 per barrel.

 

[weatherweenie]

09:16 am : S&P futures vs fair value: -8.7. Nasdaq futures vs fair value: -10.5. Crude oil has spiked to an all-time high of $128.40 per barrel. Earlier this morning, oilman Boone Pickens said on CNBC he expects oil will reach $150 per barrel this year.

 

[weatherweenie]

08:00 am : S&P futures vs fair value: +0.6. Nasdaq futures vs fair value: -4.8. Stocks futures suggest a flat-to-modestly lower start as market particpants await the April 30 FOMC meeting minutes. Meanwhile, crude oil hit an all-time high of $130.47 per barrel ahead of the government's weekly energy inventory report at 10:30 ET.

 

[weatherweenie]

[BRIEFING.COM] S&P futures vs fair value: +1.6. Nasdaq futures vs fair value: -1.8. Futures suggest a muted start to the trading day. Time Warner (TWX) is up more than 2% in premarket trading after confirming it has agreed with Time Warner Cable (TWC) to a complete legal and structural separation of the two companies.

 

[weatherweenie]

[BRIEFING.COM] S&P futures vs fair value: +1.0. Nasdaq futures vs fair value: -3.5. Crude oil has pulled back a bit from its all-time high, and is now trading with a slight 0.2% gain at $129.24 per barrel.

 

[weatherweenie]

[BRIEFING.COM] S&P futures vs fair value: +0.3. Nasdaq futures vs fair value: +1.5. A relatively neutral start to Thursday's trading is indicated by stock futures. Oil has hit a fresh record high of more than $135 per barrel in electronic trading early on.

 

[weatherweenie]

[BRIEFING.COM] S&P futures vs fair value: +1.2. Nasdaq futures vs fair value: +0.2. Stock futures continue to indicate a relatively flat start. Initial jobless claims for the week ending May 17 fell by 9,000 claims to 365,000, which is below the 373,000 economists projected. Swiss banking giant UBS (UBS) announced plans to raise some $15 billion in capital through a rights issue to existing shareholders. The issue comes at a discount of approximately 30% to yesterday's closing price. In mergers & acquisition news, NRG Energy (NRG) is offering to acquire Calpine (CPN) in an all-stock merger of the two utilities.