Portfolio Crafter
12-01-2006, 06:39 PM
End of Day Market Summary Friday 12/1/2006
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Stocks fell after a report showed the U.S. manufacturing sector contracted in November, fueling fears of a hard landing for the U.S. economy. Additionally, crude oil prices that closed above $63 a barrel also added to the selling pressure. But as has been seen in recent sessions, stocks pared their losses in the final hour but finished the session in negative territory.
Today, the Dow Jones industrial average closed down 27.80 or 0.23% to 12,194.13, the Standard & Poor's 500 closed down 3.92 or 0.28% to 1,396.71, and the Nasdaq closed down 18.56 or 0.76% to 2,413.21. For the week, the Dow ended down 0.7%, the S&P 500 lost 0.3% and the Nasdaq sank 1.9%.
Market breadth was negative. On the New York Stock Exchange, decliners beat advancers by a slim margin of six to five on volume of 1.88 billion shares. On the Nasdaq, losers topped winners by a margin of nearly three to two on volume of 2.02 billion shares.
Stocks have been volatile all week amid worries about the health of the economy, and there have been few signs to improve sentiment. The economic news this week has not been encouraging and today the ISM said its index for nationwide manufacturing activity fell to 49.5. This is below 50 and indicates contraction in the manufacturing sector. This is the lowest since April 2003.The consensus forecast of estimates was for the index to rise to 51.8%. However, while the growth is undoubtedly slowing, the economy isn't necessarily headed for a so-called hard landing.
In other news, Chicago Fed President Michael Moskow, said during a speech that more rate hikes may be needed to keep inflation in check. However, Richmond Federal Reserve President Jeffrey Lacker and Fed Chairman Ben Bernanke also spoke today, but neither commented about the economic outlook. The Fed usually cuts interest rates if the ISM poll goes below the 50 mark. Hopes of a soft landing for the economy can remain alive, and financial markets can expect the Federal Reserve to begin aggressively cutting interest rates in the first half of 2007.
Shares of Home Depot closed up $1.00 or 3% to $38.97, on speculation that the company could be a takeover target for two powerful private equity firms - Kohlberg Kravis Roberts and Texas Pacific Group are circling the retailer. This would be priced at around $100 billion, according to a report in Friday's New York Post.
Shares of General Motors closed up $0.11 or over 2% to $29.34 - even after billionaire investor Kirk Kerkorian walked away from his investment in the company. He has sold his entire stake in to Bank of America, according to a report by The Wall Street Journal. Stock of Bank of America closed down $0.51 to $53.34, after it bought 28 million shares of GM.
Shares of Advanced Micro Devices Inc. fell 4% on news that the Department of Justice has subpoenaed the company in relation to an investigation into antitrust violations related to graphics processors and cards.
U.S. light crude oil for January delivery added 32 cents to $63.45 a barrel on the New York Mercantile Exchange. Oil prices turned around after Saudi Arabia's oil minister called more production cuts.
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by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
30-day risk-free trial (http://www.portfoliocrafter.com?a_aid=fiasco)
Stocks fell after a report showed the U.S. manufacturing sector contracted in November, fueling fears of a hard landing for the U.S. economy. Additionally, crude oil prices that closed above $63 a barrel also added to the selling pressure. But as has been seen in recent sessions, stocks pared their losses in the final hour but finished the session in negative territory.
Today, the Dow Jones industrial average closed down 27.80 or 0.23% to 12,194.13, the Standard & Poor's 500 closed down 3.92 or 0.28% to 1,396.71, and the Nasdaq closed down 18.56 or 0.76% to 2,413.21. For the week, the Dow ended down 0.7%, the S&P 500 lost 0.3% and the Nasdaq sank 1.9%.
Market breadth was negative. On the New York Stock Exchange, decliners beat advancers by a slim margin of six to five on volume of 1.88 billion shares. On the Nasdaq, losers topped winners by a margin of nearly three to two on volume of 2.02 billion shares.
Stocks have been volatile all week amid worries about the health of the economy, and there have been few signs to improve sentiment. The economic news this week has not been encouraging and today the ISM said its index for nationwide manufacturing activity fell to 49.5. This is below 50 and indicates contraction in the manufacturing sector. This is the lowest since April 2003.The consensus forecast of estimates was for the index to rise to 51.8%. However, while the growth is undoubtedly slowing, the economy isn't necessarily headed for a so-called hard landing.
In other news, Chicago Fed President Michael Moskow, said during a speech that more rate hikes may be needed to keep inflation in check. However, Richmond Federal Reserve President Jeffrey Lacker and Fed Chairman Ben Bernanke also spoke today, but neither commented about the economic outlook. The Fed usually cuts interest rates if the ISM poll goes below the 50 mark. Hopes of a soft landing for the economy can remain alive, and financial markets can expect the Federal Reserve to begin aggressively cutting interest rates in the first half of 2007.
Shares of Home Depot closed up $1.00 or 3% to $38.97, on speculation that the company could be a takeover target for two powerful private equity firms - Kohlberg Kravis Roberts and Texas Pacific Group are circling the retailer. This would be priced at around $100 billion, according to a report in Friday's New York Post.
Shares of General Motors closed up $0.11 or over 2% to $29.34 - even after billionaire investor Kirk Kerkorian walked away from his investment in the company. He has sold his entire stake in to Bank of America, according to a report by The Wall Street Journal. Stock of Bank of America closed down $0.51 to $53.34, after it bought 28 million shares of GM.
Shares of Advanced Micro Devices Inc. fell 4% on news that the Department of Justice has subpoenaed the company in relation to an investigation into antitrust violations related to graphics processors and cards.
U.S. light crude oil for January delivery added 32 cents to $63.45 a barrel on the New York Mercantile Exchange. Oil prices turned around after Saudi Arabia's oil minister called more production cuts.
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