Market News

[weatherweenie]

Briefing.com
08:30 am : S&P futures vs fair value: -2.7. Nasdaq futures vs fair value: -6.8. Futures indications still trade below fair value, pointing to a lower start for the cash market. Meanwhile, a sell-off on the Shanghai Composite of 8.3%, similar to the 8.8% drubbing in late February that caused widespread panic, is again serving as a reminder that the U.S. stock market, which has also gotten ahead of fundamentals, is due for a pullback.
However, the fact that leading Asian markets like the Nikkei 225 and the Hang Seng actually finished higher suggests that problems in Shanghai are largely a local affair. As a reminder, the once unknown Shanghai Composite plunged 6.5% last Wednesday, weighing on early sentiment; but it was quickly dismissed and proved to be nothing more than a contained event as the U.S. market not only recovered, but the Dow logged its 25th record close of the year and the S&P 500 finally finished at a new all-time high.

 

[Show-me]

Stock futures hit geopolitical snag

Trade lower after Putin threatens to train missiles on Europe, Chinese stocks tumble again on ongoing tax fears; private equity deal makers at it again.

June 4 2007: 7:20 AM EDT


NEW YORK (CNNMoney.com) -- Stock futures were lower Monday following threats from Russia to train its missiles on targets in Europe and another slide in the Chinese stocks over continued tax concerns.

Stock futures were down in early trading, pointing to a lower open. Both the Dow and the S&P 500 closed at fresh record highs Friday following a string of solid economic reports.

International news was in focus Monday, although global reaction was mixed.

Major markets in Europe fell with the European autos sector leading the declines and partly due to Russian President Vladimir Putin's tough talk. As the G8 summit gets underway this week, Putin said Russia would aim missiles at targets in Europe if the U.S. went forward with plans to station a missile defense system on the continent.

Markets in Asia brushed off an 8 percent tumble in Chinese shares on continued worries over an investment tax meant to curb the red-hot economy. Markets in both Japan and Hong Kong traded higher.

http://money.cnn.com/2007/06/04/markets/stockswatch/index.htm

 

[weatherweenie]

9:00 AM ET
[BRIEFING.COM] S&P futures vs fair value: -3.5. Nasdaq futures vs fair value: -7.0. The stage remains set for stocks to take a breather as another sell-off in China and a lack of enough offsetting upbeat news bring valuations into question. A growing understanding that the rally this year far exceeds earnings growth is giving investors a reason to take some money off the table. The absence of any supportive economic releases, especially after Friday's batch of data painted a picture of growth and moderating inflation, also leaves equities vulnerable to some understandable consolidation.

 

[weatherweenie]

Briefing.com
08:00 am : S&P futures vs fair value: -4.0. Nasdaq futures vs fair value: -5.3. Futures indications are trading below fair value, suggesting a lower start for stocks. With the Dow, S&P 500, Russell 2000, and S&P 400 MidCap Index all hitting historic highs yesterday, it's not surprising to see valuations come into question. Fed Chairman Bernanke giving a speech on housing and the economy at 8:15 ET is also contributing to the sense of reserve on the part of buyers.

 

[weatherweenie]

Briefing.com
09:00 am : S&P futures vs fair value: -5.7. Nasdaq futures vs fair value: -6.3. With the Dow closing higher five of the last six days, and logging its 27th record finish this year, the stage remains set for stocks to take a breather.
Among the blue-chip index's components in focus, Procter & Gamble (PG) backed its Q4 earnings and sales guidance; but an analyst downgrade on DuPont (DD) and a $6.95 bln lawsuit filed against Pfizer (PFE) are likely to act as offsetting factors.

 

[weatherweenie]

http://biz.yahoo.com/ap/070605/bernanke.html?.v=14

Fed Chief Expects Economy to Rebound
Tuesday June 5, 8:24 am ET
By Jeannine Aversa, AP Economics Writer

Federal Reserve Chairman Ben Bernanke Predicts Economy Will Rebound From Poor 2007 Performance

WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke predicted Tuesday the economy will rebound from an anemic performance at the start of the year even if the housing slump continues. Economic growth in the first three months of this year nearly stalled, logging just a 0.6 percent pace. It was the worst quarterly showing in more than four years.

 

[weatherweenie]

http://biz.yahoo.com/ap/070605/wall_street.html?.v=19

Stocks Fall After Bernanke Comments
Tuesday June 5, 11:08 am ET
By Madlen Read, AP Business Writer

Stocks Decline After Bernanke Comments, Service Sector Data

NEW YORK (AP) -- Stocks dipped Tuesday after comments from Federal Reserve Chairman Ben Bernanke and a strong reading on the U.S. service sector suggested the central bank has little reason to lower interest rates.

 

[weatherweenie]

Briefing.com:
With only an hour left in the session, the NYSE has finally seen 1.0 bln shares trade hands. A 5.3% advance on the VIX (CBOE Volatility Index) suggests investors are also actively buying put options in anticipation of further downside in equities.DJ30 -109.23 NASDAQ -15.76 SP500 -10.63 NASDAQ Dec/Adv/Vol 2075/923/1.62 bln NYSE Dec/Adv/Vol 2549/715/1.04 bln

 

[weatherweenie]

8:00 am ET
BRIEFING.COM S&P futures vs fair value: -6.8. Nasdaq futures vs fair value: -10.8. A day after rising interest rates sparked a wave of profit-taking activity, such concerns now also weighing heavily on stocks overseas is carrying over into domestic trading this morning. In anticipation of a 25-basis point rate hike by the ECB, which came to fruition 15 minutes ago, the major European bourses are down 1.0% on average.
Even though the ECB's benchmark rate now stands at 4.00%, still well below the 5.25% fed funds rate in the U.S., the upward trend in rates globally is contributing to a very negative disposition in the futures market as investors look to keep questioning equity valuations.

 

[weatherweenie]

8:33am
[BRIEFING.COM] S&P futures vs fair value: -8.5. Nasdaq futures vs fair value: -13.0. As expected, Q1 productivity was revised lower, checking in at 1.0% (consensus 1.0%) from a previous read of 1.7%. With high levels of resource utilization still a Fed focal point as having the potential to sustain inflation pressures, unit labor costs tripling from the 0.6% rate initially reported exacerbate wage-based inflation worries. Futures trade has weakened in response, suggesting an even lower start for stocks, while bonds have also pulled back slightly; the 10-year note is now flat to yield 4.99%.

 

[weatherweenie]

9:00am
[BRIEFING.COM] S&P futures vs fair value: -6.3. Nasdaq futures vs fair value: -10.0. Futures indications have bounced off their lows but still suggest stocks will open sharply lower as investors continue to use the sudden recognition of a modest uptick in interest rates as an excuse to take more money off the table.
It is worth noting that the fundamentals have not become bearish simply because the 10-year note yield may eclipse the psychologically important 5.00% mark for the first time since last summer. That level is also not economically significant since a 5.00% yield on the 10-year note is still low and will not change GDP or earnings forecasts from earlier this week. Nonetheless, higher interest rates pose a concern for a market that has clearly run ahead of fundamentals and a rally that has been largely financed with borrowed money.

 

[James48843]

By the way- congratulations are in order. We set a new record today of on-line viewers in the minutes before the cutoff deadline-

Most users ever online was 604, Today at 11:49 AM.

That tops the previous record of 561, set May 16th.

Lots of activity today.

 

[FundSurfer]

618 @ 11:55 am. Board a little slow but nowhere near as slow as before.

 

[weatherweenie]

Briefing.com
4:20 pm : A day after a worsening interest rate outlook sparked a wave of profit-taking activity, such concerns returned Wednesday, giving investors another excuse to keep reining in recent market gains.
At their lows of the day, the Dow, S&P 500 and Nasdaq were down 1.2% on average. Broad-based selling activity closed all 10 sectors sharply lower. Of the 147 S&P industry groups, 139 finished in negative territory.
One reason the focus was squarely on interest rates today is that the European Central Bank raised its benchmark rate 25 basis points to 4.00%. Even though the rate hike was widely anticipated, and 4.00% is still well below the 5.25% fed funds rate in the U.S., the upward trend in rates proved bothersome.
Separately, Morgan Stanley issued a "triple sell" rating on European equities for the first time since the dotcom bust due to rising rates among other things. The investment bank said it expects a 14% correction in European equities over the next six months.
That news sent Europe's three major bourses, which recently hit multi-year highs, plunging 1.8% on average and left investors in U.S. equities also questioning valuations.
As a reminder, the Dow and S&P 500 were in record territory just two days ago, yet rising interest rates have served as an effective profit taking catalyst for the overextended market.
Today's only scheduled economic report also failed to give investors any incentive to use intraday market dips as buying opportunities.
As expected, Q1 productivity was revised lower, checking in at 1.0% (consensus 1.0%) from a previous read of 1.7%. With high levels of resource utilization still a Fed focal point as having the potential to sustain

 

[Show-me]

Briefing.com
4:20 pm :
Separately, Morgan Stanley issued a "triple sell" rating on European equities for the first time since the dotcom bust due to rising rates among other things. The investment bank said it expects a 14% correction in European equities over the next six months.

:blink::worried:

 

[Fivetears]

Pre-Market News

S&P 500 +2.50 1518.90 6/6 10:00pm
Fair Value 1518.34 6/6 5:04pm
Difference* +0.56

NASDAQ +3.00 1917.00 6/6 9:05pm
Fair Value 1916.77 6/6 5:04pm
Difference* +0.23

Dow Jones +16.00 13477.00 6/6 9:51pm
DJIA Contracts

 

[weatherweenie]

08:00 am : S&P futures vs fair value: -3.8. Nasdaq futures vs fair value: -7.0. Early indications are again pointing to a lower open for the cash market. As expected, the Bank of England left its benchmark rate unchanged today at 5.50%; but New Zealand unexpectedly raising rates is fueling an added sense of anxiety among U.S. bond traders who continue to rule out a Fed rate cut anytime soon as global credit continues to wind tighter. The yield on the 10-year note eclipsed the psychological 5.00% level overnight, but within the last 15 minutes it has climbed as high as 5.04%, raising liquidity concerns and spiking the futures market to morning lows.

 

[FundSurfer]

I just gave it look and for the last couple days we have had a M-class solar flare going on. Solar Data Page. Robo and I have talked in the past about a study that showed that major sell offs tend to occur following solar activity. I know it is too late to use it this time (I don't check the site that often), but it is probably something that I'll keep a better eye on.

 

[weatherweenie]

Briefing.com
08:33 am : S&P futures vs fair value: -4.7. Nasdaq futures vs fair value: -5.8. Still shaping up to be negative start for stocks as futures indications continue to trade well below fair. Meanwhile, investors are sifting through the first of today's three scheduled economic reports. Initial claims unexpectedly fell only 1,000 to 309,000 (consensus 312,000). That's the lowest level in nearly a month and still indicative of tight labor conditions, hardly the evidence bond traders want to see since high resource utilization remains such a concern for the Fed.

 

[weatherweenie]

May same-store sales have not bounced back as much as many expected, given such a disappointing April. Wal-Mart (WMT) issuing a cautious June sales forecast is also raising concerns as to just how healthy the consumer really is.