本文发表在 rolia.net 枫下论坛Tuesday October 28, 2008 (12:54 PM EDT)
Stocks Trade Higher
Major indexes remained in the green Tuesday despite a record-low consumer confidence reading for October. The Fed kicked off its two-day meeting
Major U.S. stock indexes were higher Tuesday afternoon but below the best levels of the session as market tried to rebound from five-year low levels. Traders were digesting some grim news on the U.S. economy: October consumer confidence plunged to a record 38.0 low from 61.1 in September, and home prices continued their slide in August.
Tuesday's action follows a sell-off that took the Dow industrials to a five-year low on Monday, according to S&P MarketScope.
Bonds were lower as the Federal Reserve began a two-day policy meeting. The central bank is widely expected to cut interest rates on Wednesday. The dollar index was slightly higher. Gold futures were off. Oil futures were mixed.
At 12:10 p.m. ET Tuesday, the Dow Jones industrial average was higher by 112.78 points at 8,288.55. The broader S&P 500 index added 7.18 points to 856.10. And the tech-heavy Nasdaq composite index gained 7.01 points to 1,512.91.
But while the major indexes were in the green, action in the broader market was negative. On the New York Stock Exchange, 15 stocks were lower in price for every 13 that gained. The ratio on the Nasdaq was 15-10 negative.
Trading volume on the NYSE was slow, suggesting investors are still not ready to jump in to stocks, according to S&P MarketScope.
Most European and stock markets were also higher. In Asia, late-session rallies drove Hong Kong shares 14.4% higher and Tokyo up 6.4%.
On Tuesday, the Federal Reserve kicked off a two-day policy meeting against a background of a banking crisis contributing to a budding global recession. Most observers see the Fed cutting rates Wednesday, although some argue the central bank will forgo such a move in favor of cutting reserve requirements for member banks.
The S&P/Case-Shiller 20-city U.S. home price index for August, released Tuesday, posted a 1% decline from the previous month and a record 16.6% decline over the prior-year period. The cities suffering the largest price declines were San Francisco (-3.48%), Phoenix (-2.86%), and Las Vegas (-2.35%). Only two of the 20 cities measured posted gains in August -- Cleveland (1.07%) and Boston (0.1%).
U.S. consumer confidence plunged to a new all-time low of 38.0 in October from 61.4 (was 59.8), leaving the index way below its prior cyclical low in July of 51.0.
"The surge in market turmoil, the Treasury bailout plan and the stock price free-fall clearly stole the limelight from falling gasoline prices, and have left a public panic of historic magnitude that is likely to prompt a sizable pull-back in spending," says Action Economics.
"Consumers are feeling the brunt of this recession," wrote Barclay's Capital economist Michelle Meyer in a note Tuesday. "Household wealth has evaporated owing to lower home prices and a sharp sell-off in the stock market. In addition, consumers are struggling to finance their purchases because of ever-tightening lending standards." Consumers are also growing increasingly concerned about the labor market, notes Meyer.
Reuters reports General Motors (GM) and Cerberus Capital Management have asked the U.S. government for around $10 billion in an unprecedented rescue package to support a merger between GM and Chrysler, two sources with direct knowledge of the talks said. The government funding would include roughly $3 billion in exchange for preferred stock in a merged automaker, according to one of the sources, who was not authorized to discuss the matter publicly. The U.S. Treasury Department is considering a request for direct aid to facilitate the merger and a decision could come this week, sources familiar with the still-developing government response said.
Boeing (BA) stock was indicated to open slightly higher after the company and and its biggest union have agreed a tentative deal to end the longest strike at the planemaker's plants for 13 years and halt revenue losses estimated at $100 million a day. Reuters reported that at the fourth attempt, and with the help of a federal mediator, the union representing 27,000 assembly workers said late on Monday it had struck a four-year deal with Boeing that provided job security for its members and limited outsourcing. Boeing, whose plants have been closed for 52 days, confirmed the tentative agreement, saying it had retained the flexibility it needed to run its business.
In other U.S. markets Tuesday, the 10-year Treasury note was lower in price at 101-23/32 for a yield of 3.794%, while the 30-year bond was lower at 106-14/32 for yield of 4.125%. The Treasury Dept. is scheduled to auction $10 billion in two-year notes Tuesday, followed by a $24 billion five-year auction on Thursday, the biggest since 2003.
The U.S. dollar index was higher at 87.47.
December West Texas Intermediate crude oil futures, which skidded to a 17-month low Monday, were higher at $63.52 per barrel.
December gold futures gave up earlier gains to trade lower at $736.10.
Among Tuesday's stocks in the news, Whirlpool Corp, (WHR) posted third-quarter EPS from continuing operations of $2.15, vs. $2.20 one year earlier, despite a 1% revenue rise. Due to current economic conditions, Whirlpool now expects EPS from continuing operations of $5.75-$6.00 vs. its previous estimate of $7.00-$7.50, and expects to generate free cash flow of $0-$50 million vs. its prior estimate of $500 million-$550 million. The company suspended its its share repurchase program. It has also announced substantial cost and production capacity reductions, and will reduce its global workforce by approximately 5,000 positions by the end of 2009.
Valero Energy (VLO) posted third-quarter EPS from continuing operations of $1.86, vs. $1.34 one year earlier, on 52% higher operating revenue. Results for the current quarter exclude a pre-tax gain of $305 million on the sale of its Krotz Springs, Louisiana refinery. Valero said that given the uncertain economic environment, it will significantly reduce its capital spending.
Crane Co. (CR) posted third-quarter EPS of 60 cents, vs. 87 cents (adjusted) on a 3% sales decline. The company noted an unexpected sharp slowdown in orders beginning in August in several of its short-cycle businesses, further weakening in Engineered Materials end markets, and the continued high level of engineering spending in Aerospace. Crane cut its 2008 EPS guidance from $3.45-$3.60 to $2.75-$2.90.
BP (BP) posted third quarter earnings per American Depositary Share of $3.21, vs. $1.28 on year earlier, on a 45% revenue rise.
CNOOC (CEO) said its third-quarter total revenue (unaudited) amounted to 30.9 billion yuan (equivalent to $4.5 billion), up 69% year-over-year. The company said it achieved a total net daily production of 549,589 barrels of oil equivalent (BOE), up 15.2% year-over-year.
Huntsman Corp. (HUN) says Hexion Specialty Chemicals informed it that Hexion had received correspondence from counsel to Credit Suisse and Deutsche Bank that the banks do not believe that the solvency opinion and certificate proposed to be provided meet the condition of the commitment letter, effectively saying that the banks do not plan to fund the proposed closing of the merger scheduled for this morning. Accordingly, Huntsman does not expect the merger to close today.更多精彩文章及讨论，请光临枫下论坛 rolia.net
Stocks Trade Higher
Major indexes remained in the green Tuesday despite a record-low consumer confidence reading for October. The Fed kicked off its two-day meeting
Major U.S. stock indexes were higher Tuesday afternoon but below the best levels of the session as market tried to rebound from five-year low levels. Traders were digesting some grim news on the U.S. economy: October consumer confidence plunged to a record 38.0 low from 61.1 in September, and home prices continued their slide in August.
Tuesday's action follows a sell-off that took the Dow industrials to a five-year low on Monday, according to S&P MarketScope.
Bonds were lower as the Federal Reserve began a two-day policy meeting. The central bank is widely expected to cut interest rates on Wednesday. The dollar index was slightly higher. Gold futures were off. Oil futures were mixed.
At 12:10 p.m. ET Tuesday, the Dow Jones industrial average was higher by 112.78 points at 8,288.55. The broader S&P 500 index added 7.18 points to 856.10. And the tech-heavy Nasdaq composite index gained 7.01 points to 1,512.91.
But while the major indexes were in the green, action in the broader market was negative. On the New York Stock Exchange, 15 stocks were lower in price for every 13 that gained. The ratio on the Nasdaq was 15-10 negative.
Trading volume on the NYSE was slow, suggesting investors are still not ready to jump in to stocks, according to S&P MarketScope.
Most European and stock markets were also higher. In Asia, late-session rallies drove Hong Kong shares 14.4% higher and Tokyo up 6.4%.
On Tuesday, the Federal Reserve kicked off a two-day policy meeting against a background of a banking crisis contributing to a budding global recession. Most observers see the Fed cutting rates Wednesday, although some argue the central bank will forgo such a move in favor of cutting reserve requirements for member banks.
The S&P/Case-Shiller 20-city U.S. home price index for August, released Tuesday, posted a 1% decline from the previous month and a record 16.6% decline over the prior-year period. The cities suffering the largest price declines were San Francisco (-3.48%), Phoenix (-2.86%), and Las Vegas (-2.35%). Only two of the 20 cities measured posted gains in August -- Cleveland (1.07%) and Boston (0.1%).
U.S. consumer confidence plunged to a new all-time low of 38.0 in October from 61.4 (was 59.8), leaving the index way below its prior cyclical low in July of 51.0.
"The surge in market turmoil, the Treasury bailout plan and the stock price free-fall clearly stole the limelight from falling gasoline prices, and have left a public panic of historic magnitude that is likely to prompt a sizable pull-back in spending," says Action Economics.
"Consumers are feeling the brunt of this recession," wrote Barclay's Capital economist Michelle Meyer in a note Tuesday. "Household wealth has evaporated owing to lower home prices and a sharp sell-off in the stock market. In addition, consumers are struggling to finance their purchases because of ever-tightening lending standards." Consumers are also growing increasingly concerned about the labor market, notes Meyer.
Reuters reports General Motors (GM) and Cerberus Capital Management have asked the U.S. government for around $10 billion in an unprecedented rescue package to support a merger between GM and Chrysler, two sources with direct knowledge of the talks said. The government funding would include roughly $3 billion in exchange for preferred stock in a merged automaker, according to one of the sources, who was not authorized to discuss the matter publicly. The U.S. Treasury Department is considering a request for direct aid to facilitate the merger and a decision could come this week, sources familiar with the still-developing government response said.
Boeing (BA) stock was indicated to open slightly higher after the company and and its biggest union have agreed a tentative deal to end the longest strike at the planemaker's plants for 13 years and halt revenue losses estimated at $100 million a day. Reuters reported that at the fourth attempt, and with the help of a federal mediator, the union representing 27,000 assembly workers said late on Monday it had struck a four-year deal with Boeing that provided job security for its members and limited outsourcing. Boeing, whose plants have been closed for 52 days, confirmed the tentative agreement, saying it had retained the flexibility it needed to run its business.
In other U.S. markets Tuesday, the 10-year Treasury note was lower in price at 101-23/32 for a yield of 3.794%, while the 30-year bond was lower at 106-14/32 for yield of 4.125%. The Treasury Dept. is scheduled to auction $10 billion in two-year notes Tuesday, followed by a $24 billion five-year auction on Thursday, the biggest since 2003.
The U.S. dollar index was higher at 87.47.
December West Texas Intermediate crude oil futures, which skidded to a 17-month low Monday, were higher at $63.52 per barrel.
December gold futures gave up earlier gains to trade lower at $736.10.
Among Tuesday's stocks in the news, Whirlpool Corp, (WHR) posted third-quarter EPS from continuing operations of $2.15, vs. $2.20 one year earlier, despite a 1% revenue rise. Due to current economic conditions, Whirlpool now expects EPS from continuing operations of $5.75-$6.00 vs. its previous estimate of $7.00-$7.50, and expects to generate free cash flow of $0-$50 million vs. its prior estimate of $500 million-$550 million. The company suspended its its share repurchase program. It has also announced substantial cost and production capacity reductions, and will reduce its global workforce by approximately 5,000 positions by the end of 2009.
Valero Energy (VLO) posted third-quarter EPS from continuing operations of $1.86, vs. $1.34 one year earlier, on 52% higher operating revenue. Results for the current quarter exclude a pre-tax gain of $305 million on the sale of its Krotz Springs, Louisiana refinery. Valero said that given the uncertain economic environment, it will significantly reduce its capital spending.
Crane Co. (CR) posted third-quarter EPS of 60 cents, vs. 87 cents (adjusted) on a 3% sales decline. The company noted an unexpected sharp slowdown in orders beginning in August in several of its short-cycle businesses, further weakening in Engineered Materials end markets, and the continued high level of engineering spending in Aerospace. Crane cut its 2008 EPS guidance from $3.45-$3.60 to $2.75-$2.90.
BP (BP) posted third quarter earnings per American Depositary Share of $3.21, vs. $1.28 on year earlier, on a 45% revenue rise.
CNOOC (CEO) said its third-quarter total revenue (unaudited) amounted to 30.9 billion yuan (equivalent to $4.5 billion), up 69% year-over-year. The company said it achieved a total net daily production of 549,589 barrels of oil equivalent (BOE), up 15.2% year-over-year.
Huntsman Corp. (HUN) says Hexion Specialty Chemicals informed it that Hexion had received correspondence from counsel to Credit Suisse and Deutsche Bank that the banks do not believe that the solvency opinion and certificate proposed to be provided meet the condition of the commitment letter, effectively saying that the banks do not plan to fund the proposed closing of the merger scheduled for this morning. Accordingly, Huntsman does not expect the merger to close today.更多精彩文章及讨论，请光临枫下论坛 rolia.net