Briefing.com: Stock Market Update – 14:00 ET

Aug 18, 2010 (Briefing.com via COMTEX) -- Stock Market Update

Updated: 18-Aug-10

The market at 14:00 ET

Dow: +66.30...

Nasdaq: +19.45... S&P: +7.23...

NYSE Vol: 481 mln.. Adv: 2022.. Dec: 936

Nasdaq Vol: 1.00 bln.. Adv: 1562.. Dec: 981

Moving the Market

Sector Watch

Overseas markets move in lackluster fashion Overall news flow is slow, but Deere (DE) posts strong quarterly report No data scheduled for release ahead of weekly unemployment count on Thursday

Strong: education services; department stores; home improvement retailers; homebuilders; construction materials; steel; gold; diversified financial services

Weak: general merchandisers; food retailers; paper packaging; oil and gas explorers, drillers and equipment; oil and gas storage and transportation; life science tools; health care tech

14:00 ET

Dow +66.30 at 10472.15, Nasdaq +19.45 at 2228.89, S&P +7.23 at 1099.77

[BRIEFING.COM] Stocks remain near session highs as the S&P 500 faces resistance at the 1100 line. Stocks had shadowed the line in the prior session before eventually fading into the close.

Though the broader market has had a hard time extending its move, financial stocks have jumped out to a 1.1% gain, which puts it at a fresh session high. The sector's strength is underpinned by diversified banks (+1.3%) and diversified financial services stocks (+1.6%).

13:30 ET

Dow +62.97 at 10468.82, Nasdaq +18.95 at 2228.39, S&P +6.79 at 1099.33

[BRIEFING.COM] Treasuries have retreated a bit since this morning. Specifically, the benchmark 10-year Note, which was up as much as a dozen ticks this morning, is now up just four ticks at the moment. As for the 30-year Bond, it is still looking strong with a 28-tick gain, but that's as impressive as the 40-tick gain that it had sported in the early going. ..NYSE Adv/Dec 2004/929. ..NASDAQ Adv/Dec 1559/980.

13:00 ET

Dow +23.73 at 10429.77, Nasdaq +13.37 at 2222.81, S&P +3.48 at 1096.02

[BRIEFING.COM] The S&P 500 recently made a nice push to a solid gain after plodding along the neutral line for the past hour.

The mixed action of late comes after a rather weak start that saw all three of the major indices fall to a modest loss. However, a bounce by tech stocks has since helped take the Nasdaq to a solid gain.

Given its market weight, tech has also helped the broader market. Financials have also provided some support. Both sectors are up 0.5%.

The consumer discretionary sector is in the strongest shape. It is up 1.1% as shares of for-profit education providers rebound from the 52-week lows that many of them set in the past couple of sessions.

Retailers are also strong. Target (TGT 52.08, +1.40) overcame a sluggish start to provide leadership to the space after expressing comfort with the consensus earnings forecast for third and fourth quarters.

In contrast, Deere (DE 65.70, -1.53) posted an upside earnings surprise and issued strong guidance, but its shares have succumbed to the efforts of sellers.

Energy stocks have been a heavy drag on trade all day. The sector is down 1.0% as oil prices grapple with selling pressure of their own. Oil prices were down more than 2% at their session low, but the commodity began to improve its position following news of a smaller-than-expected inventory draw. Oil currently trades at $74.85 per barrel with a 1.2% loss.

Gold prices have rallied to $1231.60 per ounce, which gives them a 0.4% gain, after they had been as low as $1218 per ounce this morning.

Goldâ??s gain comes in the face of a bounce by the dollar, which is now down only fractionally against competing currencies.

12:30 ET

Dow -7.19 at 10398.66, Nasdaq +7.76 at 2217.20, S&P +0.10 at 1092.64

[BRIEFING.COM] Gold prices have rallied since a marked loss early this morning. The precious metal was as low as $1218 per ounce, but it now sports a 0.4% gain at almost $1232 per ounce, which marks a fresh session high.

Gold's gain comes even though the dollar is on the mend. Specifically, the greenback had lagged a basket of competing currencies this morning, but it is now flat.

12:00 ET

Dow -4.54 at 10401.31, Nasdaq +7.92 at 2217.63, S&P +0.31 at 1092.85

[BRIEFING.COM] The S&P 500 recently poked into positive territory for the first time this session. The move has been led by tech stocks, which are up 0.4%, and consumer discretionary stocks, which are up 1.0%.

Energy stocks continue to act as a drag on broader trade. The sector is down 1.3% at the moment. Most of that loss is owed to weakness in oil well services and equipment plays like Schlumberger (SLB 59.13, -1.18), Diamond Offshore (DO 61.00, -1.19), and Noble (NE 32.61, -0.70). Though oil prices have gradually improved from this morning's low of $73.83 per barrel, oil is still down 1.2% at $74.85 per barrel and weighing on the energy sector.

11:30 ET

Dow -25.73 at 10380.12, Nasdaq +1.61 at 2211.05, S&P -1.26 at 1091.28

[BRIEFING.COM] Strength in retailers (+1.0%) has helped the consumer discretionary sector make its way to a 0.6% gain, which is more than any other major sector in the S&P 500. Shares of Target (TGT 51.78, +1.10) recently ripped higher so that they now sport a gain of more than 2% after opening the session in the red. The swing follows management's comments during today's conference call that the current consensus forecast for third and fourth quarter earnings is responsible and within a range of possible outcomes.

In contrast, BJ's Wholesale Club (BJ 41.44, -1.87) remains under pressure after the company came short of the consensus earnings estimate for the latest quarter, then compounded the offense by lowering its outlook.

11:05 ET

Dow -42.27 at 10363.58, Nasdaq -3.36 at 2206.08, S&P -3.54 at 1089.00

[BRIEFING.COM] Stocks have spent the morning chopping along without any clear direction. That has left the major indices to remain in negative territory with modest losses.</p>

Treasuries have been strong, however. Gains are most pronounced at the long end of the yield curve. Specifically, the 5-year Note is up a rather tame four ticks, but the 10-year Note is up a dozen ticks and the 30-year Bond has climbed 40 ticks. Their yields stand at 1.41%, 2.59%, and 3.69%, respectively.

10:30 ET

Dow -64.10 at 10341.75, Nasdaq -7.50 at 2201.94, S&P -6.01 at 1086.54

[BRIEFING.COM] Oil prices were down more than 2% just minutes ago, but news that crude oil inventory for the week ended August 13 had a draw of 818,000 barrels when a draw of 1 million barrels had been expected has actually pulled prices up a bit. Oil now trades at $74.40 per barrel with a 1.8% loss.

Elsewhere in the commodities space, natural gas prices are down 0.5% at $4.24 per MMBtu.

Precious metals are under stiff pressure. Specifically, gold prices have dropped 0.7% to $1218 per ounce, while silver was last quoted with a 1.7% loss at $18.28 per ounce.

Such broad weakness among commodities has the CRB Commodity Index down 0.9%.

10:00 ET

Dow -48.74 at 10357.11, Nasdaq -4.55 at 2204.89, S&P -4.01 at 1088.53

[BRIEFING.COM] As a group, education services stocks dropped 1.5% to a 52-week low in the prior session, but they have caught a bid in the face of broader market weakness this morning. The bid has favored the likes of Apollo Group (APOL 41.50, +1.14), DeVry (DV 39.56, +1.15), Corinthian Colleges (COCO 5.21, +0.21), and Career Education Corp (CECO 18.34, +0.46).

Tech stocks have made an upward turn so that the sector now trades with a fractional gain. The move has helped the tech-rich Nasdaq trim its loss, though it still remains in the red with the other headline indices. Tech stocks are currently led by semiconductor plays, which are up 0.4% at the moment.

09:45 ET

Dow -74.02 at 10331.83, Nasdaq -11.96 at 2197.48, S&P -6.46 at 1086.08

[BRIEFING.COM] Stocks are under moderate pressure in the first few minutes of trade. The weak state comes in contrast to the rather flat tone of premarket trade.

Energy stocks are under the most pressure. The sector has already shed 1.3% as oil prices drop 2.2% to $74.10 per barrel ahead of the weekly oil inventory report at 10:30 AM ET.

Retailers have managed to limit their losses. The space is down 0.2%, collectively, as home improvement retailers (+0.7%) stage enviable gains. Target (TGT 50.07, -0.61) is a drag on the group, though the company posted in-line earnings results for its latest quarter.

09:15 ET

Market is Closed

[BRIEFING.COM] S&P futures vs fair value: +0.80. Nasdaq futures vs fair value: -1.30. Stock futures point to a flat start for trade on Wednesday. The tepid tone comes after stocks staged strong gains in the prior session, though technical resistance capped the move. There hasnâ??t been any data or inspiring headlines to give stocks much direction this morning. A strong quarterly report from Deere (DE) hasn't done anything to influence the mood of traders. In fact, the stock is down 0.5% in premarket trade. In other earnings news, Target (TGT) posted in-line results, but its shares are down some 3% ahead of the open. The dollar is down for the third straight session. Such a streak of losses makes for a poor follow up to last weekâ??s 3.1% gain, which marked its best weekly performance since May. The dollarâ??s latest loss comes at the hand of a stronger euro and stronger yen. Trade among overseas markets is mixed.

09:00 ET

Market is Closed

[BRIEFING.COM] S&P futures vs fair value: +1.60. Nasdaq futures vs fair value: -1.50. Stock futures are in step with fair value. Meanwhile, the dollar has dipped to a fresh morning low, where it trades with a 0.3% loss against a basket of major foreign currencies. Weakness among commodities has the CRB Commodity Index down 0.3%. Oil has been under particularly stiff selling pressure, such that the commodity is down 1.1% to $74.95 per barrel ahead of the latest weekly inventory count at 10:30 AM ET.

08:30 ET

Market is Closed

[BRIEFING.COM] S&P futures vs fair value: +0.10. Nasdaq futures vs fair value: -4.00.

Futures for the S&P 500 have picked up a couple of points in the past few minutes. Meanwhile, Germanyâ??s is now flat after recovering from a modest loss in the wake of a 1.6% climb during the prior session. In the latest episode of action, financials (-0.6%) and consumer goods stocks (-0.5%) are weak, but health care stocks (+0.5%) and technology plays (+0.3%) have provided some support. K+S AG is a strong performer for the second straight session, such that the stock is up more than 7% since Mondayâ??s close. In France, the CAC is down just 0.1% since rallying 1.8% on Tuesday. Of its major sectors, health care (+0.7%) and industrials (+0.3%) are providing the most support, while materials (-0.6%) drag. Britainâ??s FTSE booked a 1.4% gain in the prior session, but in the latest round of trade it is down 0.6% as declining issues outnumber advancers by 3-to-2. HSBC (HBC) is one of the heaviest drags on trade, while Inmarsat PLC provides support.

In Asia, Japanâ??s Nikkei rallied to a 0.9% gain after it settled the prior session at a multimonth closing low. Honda Motor (HMC) and Fast Retailing were leaders, while Shiseido was a drag. Renewed support for the yen, which is currently near 85.3 yen per dollar, hampered exporters. Mainland Chinaâ??s Shanghai Composite shed 0.2% as heavyweights PetroChina (PTR), China Petroleum (SNP), and Industrial & Commercial Bank succumbed to further selling. Hong Kongâ??s Hang Seng fell 0.5% as industrial plays (-0.9%) and energy plays (-0.8%) weighed heavily on trade. Consumer goods stocks (+0.8%) attracted support, though.

08:00 ET

Market is Closed

[BRIEFING.COM] S&P futures vs fair value: -1.30. Nasdaq futures vs fair value: -6.30. The stock market booked a big gain on Tuesday, but there hasnâ??t been much follow through. In turn, stock futures are flat this morning. On the earnings front, Deere (DE) posted a better-than-expected bottom line and issued strong guidance for its top line, while Target (TGT) announced results that were in-line with Wall Streetâ??s consensus forecast. No economic data is on tap for today, but weekly oil inventory figures will be released at 10:30 AM ET. In overseas trade, Europeâ??s major bourses are down with varied losses after they climbed in the previous session. Asiaâ??s Shanghai Composite and Hang Seng slid, but the Nikkei bounced back from a multimonth closing low to settle with an impressive gain.

06:45 ET

Market is Closed

[BRIEFING.COM] S&P futures vs fair value: -2.50. Nasdaq futures vs fair value: -8.00.

06:45 ET

Market is Closed

[BRIEFING.COM] FTSE...5315.02...-35.50...-0.70%. DAX...6189.32...-17.10...-0.30%.

06:45 ET

Market is Closed

[BRIEFING.COM] Nikkei...9240.54...+78.90...+0.90%. Hang Seng...21022.73...-114.70...-0.50%.

16:30 ET

Dow +103.84 at 10405.85, Nasdaq +27.57 at 2209.44, S&P +13.16 at 1092.54

[BRIEFING.COM] Broad buying in light volume gave stocks strong gains, but the effort failed to take stocks through a key resistance level.

Stocks sported robust gains for the entire session. Though they finished with their best percentage gain in two weeks, strength actually faded into the close. The late drift came after the S&P 500 failed to penetrate the 1100 line. It did manage to close firmly above its 50-day moving average of 1088, however.

The advance was helped along by news that BHP Billiton (BHP 70.21, -1.73) proposed to acquire Potash (POT 143.17, +31.02) for $130 per share. Potash refused the offer, but news of such a large-scale takeover attempt provided participants with a tacit sign of improved sentiment and prospects across the corporate landscape, especially in the agricultural and basic materials space. In turn, materials stocks led the broader market for the entire session and finished a 2.3% gain.

Retailers were also strong. As a group retailers climbed 1.8%. Discount retail giant and Dow component Wal-Mart (WMT 51.02, +0.61) was a solid performer on the back of in-line earnings and an improved forecast.

Home improvement retailer and fellow Dow component Home Depot (HD 28.31, +0.93) had a more positive influence over retailers. It posted better-than-expected earnings for the latest quarter, but issued a rather mixed forecast. A smaller-than-expected increase in housing starts during July didnâ??t do anything to derail the stock this session.

Housing starts for July increased 1.7% month-over-month to an annualized rate of 546,000 units, which is less than the rate of 555,000 units that had been widely anticipated. Building permits for July fell 3.1% month-over-month to an annualized rate of 565,000, which is below the rate of 573,000 that had been expected.

As for other data, the Producer Price Index for July increased 0.2%, as expected. Excluding food and energy, producer prices for July increased 0.3% month-over-month, but a 0.1% increase had been expected.

Lastly, industrial production increased 1.0% in July. It had been to rise by 0.6%.

Though there was plenty of important data for participants to digest this session, it did not have much of a meaningful impact on trade. That contrasts sharply with action of previous weeks, when data had been a primary catalyst behind trade and corporate announcements, including earnings, were of secondary concern.

Consistent with recent weeks, trading volume remains unimpressive. More directly, share volume on the NYSE failed to break 1 billion shares for the third straight session, keeping with the 15-session average of just 984 million shares.

Advancing Sectors: Materials (+2.3%), Industrials (+1.8%), Energy (+1.5%), Consumer Discretionary (+1.5%), Health Care (+1.3%), Telecom (+1.2%), Tech (+1.1%), Utilities (+0.9%), Consumer Staples (+0.8%), Financials (+0.7%)

Declining Sectors: (None)

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