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Briefing.com: Stock Market Update - 10:30 ETNov 18, 2005 (Briefing.com via COMTEX) --Stock Market Update Updated: 18-Nov-05 The market at 10:30 ET Dow: +38.26... Nasdaq: +9.03... S&P: +4.38... NYSE Vol: 483.1 mln.. Adv: 1870.. Dec: 105 Nasdaq Vol: 605.9 mln.. Adv: 1814.. Dec: 851 Moving the Market Sector Watch 10-year -09/32 at 4.49% HP beat EPS expectations by a nickel and issued upside guidance for the current quarter and full year. GE is selling its insurance unit for $6.8 bln; also, GE upped its dividend, buyback program, and FY06 guidance. CSCO has acquired SFA for $6.9 bln DIS, SBUX, JWN, MRVL, ANN are amongst upside earners. Strong: industrial conglomerates, food distributors, auto parts & equipment, computers & electronics, auto manufacturers Weak: aparel retail, appliance software, healthcare distributors, internet software & services 10:30 ET Dow +38.26, Nasdaq +9.03, S&P +4.38 [BRIEFING.COM] Little has changed for the equity market, which holds the major averages in place and with solid gains. Wide-spread buying has sent Telecom to the top of the market, but it's Industrials 1.2% gain and Tech's 0.4% rise that currently lend strongest support. With respect to the latter sector, soaring semiconductors - due to a spike in Marvell (MRVL 57.22 +6.73) shares following its upside Q3 report - pairs with Hewlett-Packard (HPQ 29.78 +0.78) in spearheading its advance. Strength across nearly the entire sector offsets the few sore spots, which include Cisco (CSCO 17.00 -0.37) and Autodesk (ADSK 41.48 -5.62). Shares of CSCO have dipped following confirmation of the company's $6.9 billion acquisition of Scientific Atlanta (SFA 42.06 +0.61), while ADSK, despite beating the street last night, disappointed investors with in-line guidance. ..NASDAQ Adv/Dec 1814/851. 10:00 ET Dow +38.50, Nasdaq +6.28, S&P +4.62 [BRIEFING.COM] Holding their places, the indices stand strong as traders continue buying efforts. All but one of the ten economic sectors extend early gains, with General Electric (GE 35.58 +0.92) driving Industrials (+0.9%) to the front-running position. As a side note, Briefing.com maintains an Overweight rating on that sector, within which operating earnings are estimated to grow 21.8% this year. Energy's 0.4% loss is a result of the 0.6% drop in crude futures ($56.00 per barrel), but at this point its decline does little to offset broad-based gains. Today's early action is an extension of the momentum that has taken the indices higher by an average 4.9% over the last three weeks. The trend is in-line with Briefing.com's expectation for a traditional year-end rally, and our anticipation of a 5% gain in the S&P 500. ..NYSE Adv/Dec 1706/811. ..NASDAQ Adv/Dec 1618/811. 09:40 ET Dow +37.78, Nasdaq +6.98, S&P +4.95 [BRIEFING.COM] As expected, stocks started the session well above the flat line. Bullish bias abounds following a heavy dose of good news on the corporate front. General Electric (GE) raised its FY06 earnings outlook while upping its quarterly divided and expanding its share buyback plan; the company also announced a $6.8 billion sale of its insurance unit. After surpassing analysts' expectations for fiscal Q4 earnings by a nickel and raising its guidance for the current quarter and full year, Hewlett-Packard (HPQ) shares are on the rise. Also within the Tech sector, Cisco (CSCO) confirmed its $6.9 billion acquisition of Scientific Atlanta (SFA) - one of Briefing.com's suggested holding for active investors. While today's economic calendar is blank and the earnings calendar is light, investors are digesting last night's round of upside reports - delivered from companies including Starbucks (SBUX), Nordstrom (JWN), Marvell (MRVL), and Disney (DIS), another Briefing.com portfolio pick. 09:18 ET Market is Closed [BRIEFING.COM] S&P futures vs fair value: +2.5. Nasdaq futures vs fair value: +7.5. 09:00 ET Market is Closed [BRIEFING.COM] S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +8.0. Stocks are headed for an even higher start... In addition to support lent by the domestic corporate front, the bullish bias across major international markets has perhaps contributed to today's early tone. Rising 1.5%, Japan's Nikkei hit a five year high in its most recent session while China's Hang Seng also closed higher. In Europe, the German Dax, currently up 1.1%, has reached levels not seen since 2002; France's CAC sports a matching gain, and Britain's FTSE 100 has jumped 1.2%. Separately, declining energy prices further help sentiment this morning. 08:31 ET Market is Closed [BRIEFING.COM] S&P futures vs fair value: +3.2. Nasdaq futures vs fair value: +7.0. The equity remains poised to open higher this morning. Although today's economic calendar is a blank one, and while the earnings front features just six companies, traders sift through a host of better than expected Q3 results that were reported yesterday evening. Along with Hewlett-Packard (HPQ), Starbucks (SBUX), Nordstrom (JWN), Autodesk (ADSK), Marvell (MRVL), and Walt Disney (DIS) - the last of which is a Briefing.com stock pick for active investors - each exceeded Wall Street's expectations. 08:01 ET Market is Closed [BRIEFING.COM] S&P futures vs fair value: +2.0. Nasdaq futures vs fair value: +4.5. Versus fair value, futures trade indicates a higher open for the cash market as traders digest a dose of upbeat corporate news items. Following yesterday's close, Hewlett-Packard (HPQ) delivered an upside fiscal Q4 earnings report, along with upbeat guidance for the current quarter and full year. Meanwhile, fellow Dow component General Electric (GE) announced a $6.8 billion sale of its insurance unit, raised its dividend and expanded its buyback program. This morning, Cisco (CSCO) confirmed its $6.9 billion cash acquisition of Scientific Atlanta (SFA). 06:29 ET Market is Closed [BRIEFING.COM] FTSE...5525.10...+65.10...+1.2%. DAX...5154.35...+54.63...+1.1%. 06:29 ET Market is Closed [BRIEFING.COM] S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: +4.0. 06:29 ET Market is Closed [BRIEFING.COM] Nikkei...14623.12...+211.33...+1.5%. Hang Seng...14883.32...+95.34...+0.6%. 16:20 ET Dow +45.46 at 10720.22, Nasdaq +32.53 at 2220.46, S&P +11.59 at 1242.80 [BRIEFING.COM] After languishing throughout the week, the market finally reclaimed some of the upside momentum that helped lift the major indices an average of 4.9% over the last three weeks, lending credence to Briefing.com's belief that a traditional year-end rally will close the S&P 500 up 5% for the year. The market opened on a positive note amid a good underlying tone for stocks, supported in part by 75% of the S&P 500 either surpassing or matching analysts' forecasts to register a 14th straight quarter of double-digit profit growth, but got an extra boost late in the day as oil prices plunged. With crude prices ($56.40/bbl -$1.48) finishing (-2.6%) near their lowest levels since late June, early buying interest in equities strengthened as a broad-based rally closed all ten economic sectors to the upside. Technology provided a huge lift, as an upbeat outlook from Network Appliance (NTAP 29.60 +1.35) and anticipation of a strong Q4 report and ensuing guidance from Hewlett-Packard (HPQ 28.83 +0.56) after the bell helped offset a 46% profit decline in Q4 and questionable Q1 EPS guidance from Applied Materials (AMAT 17.34 -0.43). Despite evidence that the housing market is clearly slowing down in response to the rise in interest rates over the past 17 months, a 4.6% surge in the homebuilding index provided a source of support for Consumer Discretionary. Oct. housing starts fell 5.6% to 2.014 mln units while building permits fell 6.7% to 2.07 mln units, both checking in below economists' forecasts but simultaneously reminding policy officials that higher interest rates are taking hold and that the Fed's tightening efforts run the risk of going too far. A late-day spike in shares of General Motors (GM 22.61 +1.32), after an internal note by CEO Rick Wagoner downplayed bankruptcy concerns, also provided sector support. Financial was an influential leader to the upside, as banks and brokers benefited from a midday reversal in the Treasury market, which widened the spread between the 2-yr and 10-yr notes, following a larger than expected decline on the Philly Fed. The 10-yr, which was off as much as 10 ticks to yield 4.51% following a batch of mixed economic data early in the session, closed up 4 ticks to yield 4.45%. Before the bell, initial claims for the week in which the Nov. employment survey was compiled, fell 25K to 303K - the lowest level in seven months and well below the 322K consensus, suggesting job conditions remain robust and that a sizable jump in payrolls is likely. A strong rebound in Oct. industrial production, which rose 0.9% - the most since May 2004 -- also improved underlying sentiment, providing some reassurance to stock investors that corporate profitability and job growth are sustainable but, in turn, raising early concerns amongst bond traders that such economic improvements may lead to at least three more Fed rate hikes. ..DJTA +2.0%. ..DJUA +1.6%. ..SOX +1.1%. ..DOT +1.9%. ..XOI -0.1%. ..BTK +1.7%. ..Nasdaq 100 +1.5%. ..S&P Midcap 400 +1.4%. ..Russell 2000 +1.8%. ..NYSE Adv/Dec 2390/886. ..NASDAQ Adv/Dec 2138/876. Briefing.com is the leading Internet provider of live market analysis for U.S. Stock, U.S. Bond and world FX market participants. 1-800-752-3013 or http://www.briefing.com |