Portfolio Crafter
11-03-2006, 11:35 AM
End of Day Market Summary Thursday, 11/2/2006
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Stocks ended lower with the Dow Jones Industrial Average taking its fifth loss in a row, hurt by data showing a pick-up in wage inflation and a rise in jobless claims. The Dow industrials have not had a five-session loss since June, 2005. The market was further hurt by Wal-Mart Stores Inc. and a broker downgrade for Intel Corp. Jitters about Friday's big employment release continue to plague the market.
Toady, the Dow Jones industrial average closed down 12.48 or 0.1% to 12,018.54, the broader S&P 500 index closed down 0.47 or 0.03% to 1,367.34, and the tech-fueled Nasdaq composite index closed down 0.33 or 0.01% to 2,334.02.
Market breadth was negative. On the New York Stock Exchange, losers topped winners by almost 9 to 7 on volume of 1.67 billion shares. On the Nasdaq, decliners beat advancers 17 to 12 on volume of 1.93 billion shares.
A sluggish reading on factory orders, a jump in a key inflation reading and some disappointing retail sales led the markets South. The focus for many investors has shifted from third-quarter earnings to the economic news. Therefore, tomorrows October employment report will be the next potential market catalyst. Employers are expected to have added 125,000 jobs, and the unemployment rate is expected to hold steady at 4.6%.
A preliminary read on third-quarter productivity came in unchanged, versus forecasts for a rise of 1.1%. This was a cause for concern for those investors worried about inflationary pressures. Another report showed September factory orders rose 2.1% against the expected 3.6%.
Dallas Federal Bank President Richard Fisher, said that recent inflation readings have been encouraging, but pricing pressure is still too aggressive. He is more upbeat on the inflation outlook, stating that it is possible that the trend in overall consumer inflation has peaked and is finally heading lower.
Intel fell after Merrill Lynch downgraded the chipmaker to neutral from buy. The broker said weakening demand for its products and persistent excess capacity are likely to "keep a lid" on the stock for the intermediate term. Currently, the broker sees limited money-making opportunity for the intermediate term.
Shares of Wal-Mart closed down $0.56 to $48.29, after stating that same-store sales rose just 0.5% this month. That was lower than the recently reduced forecast for growth of 1%. Stock of rival Target also closed down $0.74 or 1.3% to $56.96, after reporting a 3.9% rise in same-store sales.
Shares of Dell Inc. closed up $0.78 or 3.1% to $24.77 after Goldman Sachs upgraded the computer maker to neutral from sell, saying it expects the company to achieve above-consensus earnings thanks to more disciplined pricing and more attention to its product mix.
Stock of the Tribune Co. closed down 1.1% to $32.26, after a Wall Street Journal reported that the publishing group is considering selling parts of its business after receiving lower-than-expected offers for its entire media and entertainment empire. However, the move may be a gambit to obtain a better price for the entire company.
U.S. light crude oil for December delivery fell 83 cents to settle at $57.88 a barrel on the New York Mercantile Exchange. Traders continued to react to Wednesday's domestic supply data showing a rise in crude inventories.
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by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
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Stocks ended lower with the Dow Jones Industrial Average taking its fifth loss in a row, hurt by data showing a pick-up in wage inflation and a rise in jobless claims. The Dow industrials have not had a five-session loss since June, 2005. The market was further hurt by Wal-Mart Stores Inc. and a broker downgrade for Intel Corp. Jitters about Friday's big employment release continue to plague the market.
Toady, the Dow Jones industrial average closed down 12.48 or 0.1% to 12,018.54, the broader S&P 500 index closed down 0.47 or 0.03% to 1,367.34, and the tech-fueled Nasdaq composite index closed down 0.33 or 0.01% to 2,334.02.
Market breadth was negative. On the New York Stock Exchange, losers topped winners by almost 9 to 7 on volume of 1.67 billion shares. On the Nasdaq, decliners beat advancers 17 to 12 on volume of 1.93 billion shares.
A sluggish reading on factory orders, a jump in a key inflation reading and some disappointing retail sales led the markets South. The focus for many investors has shifted from third-quarter earnings to the economic news. Therefore, tomorrows October employment report will be the next potential market catalyst. Employers are expected to have added 125,000 jobs, and the unemployment rate is expected to hold steady at 4.6%.
A preliminary read on third-quarter productivity came in unchanged, versus forecasts for a rise of 1.1%. This was a cause for concern for those investors worried about inflationary pressures. Another report showed September factory orders rose 2.1% against the expected 3.6%.
Dallas Federal Bank President Richard Fisher, said that recent inflation readings have been encouraging, but pricing pressure is still too aggressive. He is more upbeat on the inflation outlook, stating that it is possible that the trend in overall consumer inflation has peaked and is finally heading lower.
Intel fell after Merrill Lynch downgraded the chipmaker to neutral from buy. The broker said weakening demand for its products and persistent excess capacity are likely to "keep a lid" on the stock for the intermediate term. Currently, the broker sees limited money-making opportunity for the intermediate term.
Shares of Wal-Mart closed down $0.56 to $48.29, after stating that same-store sales rose just 0.5% this month. That was lower than the recently reduced forecast for growth of 1%. Stock of rival Target also closed down $0.74 or 1.3% to $56.96, after reporting a 3.9% rise in same-store sales.
Shares of Dell Inc. closed up $0.78 or 3.1% to $24.77 after Goldman Sachs upgraded the computer maker to neutral from sell, saying it expects the company to achieve above-consensus earnings thanks to more disciplined pricing and more attention to its product mix.
Stock of the Tribune Co. closed down 1.1% to $32.26, after a Wall Street Journal reported that the publishing group is considering selling parts of its business after receiving lower-than-expected offers for its entire media and entertainment empire. However, the move may be a gambit to obtain a better price for the entire company.
U.S. light crude oil for December delivery fell 83 cents to settle at $57.88 a barrel on the New York Mercantile Exchange. Traders continued to react to Wednesday's domestic supply data showing a rise in crude inventories.
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