Portfolio Crafter
11-15-2007, 02:44 AM
End of Day Market Summary - Wednesday, November 14, 2007
by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks closed sharply lower with selling accelerating in the final moments of trade, as investors mulled reduced odds of another Federal Reserve interest-rate cut in light of positive economic data that included benign wholesale inflation. Investors bailed out of technology, financials and some of the other leaders of yesterday's rally.
The Dow Jones industrial average closed up 43.83 or 0.28% to 15,543.39, the broader S&P 500 closed down 10.46 or 0.71% to 1,470.58, and the tech-fueled Nasdaq composite closed down 29.33 or 1.10% to 2,644.32.
Market breadth was negative. On the New York Stock Exchange, losers beat winners 5 to 3 on volume of 1.49 billion shares. On the New York Stock Exchange, losers beat winners by nearly 3 to 2 on volume of 2.47 billion shares.
Investors mulled over the rising oil prices and continued questions from the bank sector. Weakness in big industrial stocks also drove traders to take profits. The news of large write downs from HSBC and Bear Stearns reminded market participants that the outlook for the credit crisis remains murky. Looking forward, stocks are in for more volatility through the end of the year.
In economic news, the PPI rose 0.1% in October, short of forecasts for a rise of 0.3%. The core PPI, which strips out food and energy prices, was flat, missing forecasts for a rise of 0.2%. Retail sales rose 0.2% as expected, while retail sales excluding autos rose a smaller-than-expected 0.2%. Business inventories rose 0.4% in September, as forecast. Therefore, the economic news was generally supportive for hopes that the Federal Reserve will keep cutting interest rates.
Shares of UAL closed up $0.67 or 1.54% to $44.17, and that of Delta closed up $0.77 or 4.11% to $19.52, on news of a possible merger. The suggested deal, would create the world's largest air carrier. The deal could save $585 million a year in costs and give the combined carrier the breadth of domestic and overseas routes to attract more lucrative business travelers.
Stock of eTrade Financial closed up $0.54 or 10.80% to $5.54, as investors sold some of the previous day's advancers and continued to mull the outlook for the sector amid the sub-prime fallout.
Shares of Bear Stearns closed up $2.40 or 2.38% to $103.27, despite stating that it will take a $1.2 billion write down and post a loss this quarter due to sub-prime losses. The CFO warned that the $1.2 billion figure could change before the end of the quarter.
Stock of Macy's Inc. closed down $2.18 or 7.11% to $28.47, after reporting a third-quarter profit, but stating that fourth-quarter sales may fall short of its original forecast and warning it's slowing the pace of its buyback because of credit market concerns.
Shares of Merrill Lynch closed up $1.03 or 1.81% to $57.98, after it appointed NYSE Euronext CEO John Thain as its new CEO, leaving Citigroup Inc. still looking for its next leader.
U.S. light crude oil for December delivery rose $2.92 to settle at $94.09 a barrel on the New York Mercantile Exchange, bouncing back after several down sessions.
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by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks closed sharply lower with selling accelerating in the final moments of trade, as investors mulled reduced odds of another Federal Reserve interest-rate cut in light of positive economic data that included benign wholesale inflation. Investors bailed out of technology, financials and some of the other leaders of yesterday's rally.
The Dow Jones industrial average closed up 43.83 or 0.28% to 15,543.39, the broader S&P 500 closed down 10.46 or 0.71% to 1,470.58, and the tech-fueled Nasdaq composite closed down 29.33 or 1.10% to 2,644.32.
Market breadth was negative. On the New York Stock Exchange, losers beat winners 5 to 3 on volume of 1.49 billion shares. On the New York Stock Exchange, losers beat winners by nearly 3 to 2 on volume of 2.47 billion shares.
Investors mulled over the rising oil prices and continued questions from the bank sector. Weakness in big industrial stocks also drove traders to take profits. The news of large write downs from HSBC and Bear Stearns reminded market participants that the outlook for the credit crisis remains murky. Looking forward, stocks are in for more volatility through the end of the year.
In economic news, the PPI rose 0.1% in October, short of forecasts for a rise of 0.3%. The core PPI, which strips out food and energy prices, was flat, missing forecasts for a rise of 0.2%. Retail sales rose 0.2% as expected, while retail sales excluding autos rose a smaller-than-expected 0.2%. Business inventories rose 0.4% in September, as forecast. Therefore, the economic news was generally supportive for hopes that the Federal Reserve will keep cutting interest rates.
Shares of UAL closed up $0.67 or 1.54% to $44.17, and that of Delta closed up $0.77 or 4.11% to $19.52, on news of a possible merger. The suggested deal, would create the world's largest air carrier. The deal could save $585 million a year in costs and give the combined carrier the breadth of domestic and overseas routes to attract more lucrative business travelers.
Stock of eTrade Financial closed up $0.54 or 10.80% to $5.54, as investors sold some of the previous day's advancers and continued to mull the outlook for the sector amid the sub-prime fallout.
Shares of Bear Stearns closed up $2.40 or 2.38% to $103.27, despite stating that it will take a $1.2 billion write down and post a loss this quarter due to sub-prime losses. The CFO warned that the $1.2 billion figure could change before the end of the quarter.
Stock of Macy's Inc. closed down $2.18 or 7.11% to $28.47, after reporting a third-quarter profit, but stating that fourth-quarter sales may fall short of its original forecast and warning it's slowing the pace of its buyback because of credit market concerns.
Shares of Merrill Lynch closed up $1.03 or 1.81% to $57.98, after it appointed NYSE Euronext CEO John Thain as its new CEO, leaving Citigroup Inc. still looking for its next leader.
U.S. light crude oil for December delivery rose $2.92 to settle at $94.09 a barrel on the New York Mercantile Exchange, bouncing back after several down sessions.
Join PortfolioCrafter.com (http://www.wealthpire.com/cmd.php?Clk=1838416)
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