Portfolio Crafter
11-07-2006, 03:46 AM
End of Day Market Summary Friday, 11/3/2006
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Stocks ended lower with the Dow Jones Industrial Average posting its first six-session losing streak since mid-2005, after a surge in long-term interest rates and a spike in oil prices overshadowed a largely positive October jobs report. A pair of strong economic reports and a steep decline in the bond market sparked bets that the Federal Reserve won't cut interest rates anytime soon.
Today, the Dow Jones industrial average closed down 32.5 or 0.27% to 11,986.04, the first time the index has fallen six times in a row since June 2005. The broader S&P 500 index closed down 3.04 or 0.22% to 1,364.22, and the tech-fueled Nasdaq composite index closed down 3.23 or 0.14% to 2,330.79. For the week, the Dow fell 0.9%, the S&P declined 0.9% and the Nasdaq Composite declined 0.8%.
Market breadth was mixed. On the New York Stock Exchange, losers topped winners 17 to 15 on volume of 1.51 billion shares. On the Nasdaq, advancers edged out decliners 17 to 12 on volume of 1.88 billion shares.
Stocks have been under pressure lately, with the Dow sliding for five sessions in a row in response to a spate of weaker economic reports. The employment report and the ISM services report marked the first group of upbeat economic news this week. The latest jobs report offered proof that the U.S. labor market is on a firmer footing than previously thought. Although the economy created a smaller-than-expected 92,000 jobs in October, upward revisions helped mitigate the impact of weak October number. Investors also cheered the fact that the unemployment rate dropped to 4.4%, the lowest level in more than 5 years. The jobless rate was expected to remain at 4.6%.
The Institute for Supply Management's services sector index rose to 57.1 in October from 52.9 in September, topping forecasts for a rise to 54.5. The report added credence to the feeling among investors that the economy is not as weak as had been thought. Within the report was good news on inflation. The price index slipped to 51.9% from 56.7% in the previous month.
Stock of Oracle Corp. fell 2.7% to $17.78, as it announced its decision to buy software developer Stellent Inc. for $440 million. Shares of Stellent shot up 26% to $13.35. This bid is a 27% premium to Stellent's Thursday closing price of $10.62.
Stock of Whole Foods Market Inc. plunged $13.86 or 23% to $46.26 after the supermarket chain warned that its annual growth next year will slow to 6% to 8%, down from 11% this year. Its fourth-quarter net income rose to $39.8 million, from $9.06 million last year. Revenue rose to $1.29 billion from $1.12 billion, while same-store sales rose 8.6%. This is against the expected revenue of $1.32 billion.
Stock of Qualcomm Inc. closed up $0.11 to $36.47, after reporting fourth-quarter earnings and sales that rose from a year ago and topped estimates. The company posted a 14% jump in quarterly net income as it sold more of its cell-phone chip technology. It had an income of $614 million, versus $538 million last year. Sales rose 28% to $2 billion for the three month period.
Shares of Electronic Arts Inc. closed up $6.26 or 12% to $59.26, after the video game maker reported higher quarterly earnings and revenue that beat estimates and also boosted its full-year sales forecasts. Sales in the latest quarter rose 16% to $784 million, well above the $673 million expected by analysts.
U.S. light crude oil for December delivery gained $1.26 to settle at $59.14 a barrel on the New York Stock Exchange. Crude futures ended sharply higher amid political worries about the Middle East and Nigeria. Syria and the Lebanese group Hezbollah rejected U.S. accusations that they are planning to topple the Lebanese government with help from Iran. In Nigeria the U.S. embassy warned that attacks by a militant group on as many as 20 oil facilities may unfold within days.
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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 posting its first six-session losing streak since mid-2005, after a surge in long-term interest rates and a spike in oil prices overshadowed a largely positive October jobs report. A pair of strong economic reports and a steep decline in the bond market sparked bets that the Federal Reserve won't cut interest rates anytime soon.
Today, the Dow Jones industrial average closed down 32.5 or 0.27% to 11,986.04, the first time the index has fallen six times in a row since June 2005. The broader S&P 500 index closed down 3.04 or 0.22% to 1,364.22, and the tech-fueled Nasdaq composite index closed down 3.23 or 0.14% to 2,330.79. For the week, the Dow fell 0.9%, the S&P declined 0.9% and the Nasdaq Composite declined 0.8%.
Market breadth was mixed. On the New York Stock Exchange, losers topped winners 17 to 15 on volume of 1.51 billion shares. On the Nasdaq, advancers edged out decliners 17 to 12 on volume of 1.88 billion shares.
Stocks have been under pressure lately, with the Dow sliding for five sessions in a row in response to a spate of weaker economic reports. The employment report and the ISM services report marked the first group of upbeat economic news this week. The latest jobs report offered proof that the U.S. labor market is on a firmer footing than previously thought. Although the economy created a smaller-than-expected 92,000 jobs in October, upward revisions helped mitigate the impact of weak October number. Investors also cheered the fact that the unemployment rate dropped to 4.4%, the lowest level in more than 5 years. The jobless rate was expected to remain at 4.6%.
The Institute for Supply Management's services sector index rose to 57.1 in October from 52.9 in September, topping forecasts for a rise to 54.5. The report added credence to the feeling among investors that the economy is not as weak as had been thought. Within the report was good news on inflation. The price index slipped to 51.9% from 56.7% in the previous month.
Stock of Oracle Corp. fell 2.7% to $17.78, as it announced its decision to buy software developer Stellent Inc. for $440 million. Shares of Stellent shot up 26% to $13.35. This bid is a 27% premium to Stellent's Thursday closing price of $10.62.
Stock of Whole Foods Market Inc. plunged $13.86 or 23% to $46.26 after the supermarket chain warned that its annual growth next year will slow to 6% to 8%, down from 11% this year. Its fourth-quarter net income rose to $39.8 million, from $9.06 million last year. Revenue rose to $1.29 billion from $1.12 billion, while same-store sales rose 8.6%. This is against the expected revenue of $1.32 billion.
Stock of Qualcomm Inc. closed up $0.11 to $36.47, after reporting fourth-quarter earnings and sales that rose from a year ago and topped estimates. The company posted a 14% jump in quarterly net income as it sold more of its cell-phone chip technology. It had an income of $614 million, versus $538 million last year. Sales rose 28% to $2 billion for the three month period.
Shares of Electronic Arts Inc. closed up $6.26 or 12% to $59.26, after the video game maker reported higher quarterly earnings and revenue that beat estimates and also boosted its full-year sales forecasts. Sales in the latest quarter rose 16% to $784 million, well above the $673 million expected by analysts.
U.S. light crude oil for December delivery gained $1.26 to settle at $59.14 a barrel on the New York Stock Exchange. Crude futures ended sharply higher amid political worries about the Middle East and Nigeria. Syria and the Lebanese group Hezbollah rejected U.S. accusations that they are planning to topple the Lebanese government with help from Iran. In Nigeria the U.S. embassy warned that attacks by a militant group on as many as 20 oil facilities may unfold within days.
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