Daily Market Summary 1/9/07

[Portfolio Crafter]

End of Day Market Summary Tuesday, January 9, 2007
by Portfolio Crafter
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Stocks closed mixed on with a continued slide in crude oil prices weighing on the broad market but with technology shares receiving a bid after Apple Computer Inc. unveiled its new iPhone device. However, the inability of the market to perform better given the significant decline in energy is somewhat disheartening. This is not a great sign for the overall health of the market.

Today, the Dow Jones industrial average closed down 6.89 or 0.06% to 12,416.60, the S&P 500 closed down 0.73 or 0.05% to 1,412.11, and the Nasdaq closed up 5.63 or 0.23% to 2,443.83.

Market breadth was mixed. On the New York Stock Exchange, advancers beat decliners 9 to 7 on volume of 1.70 billion shares. On the Nasdaq, losers surpassed winners 15 to 14 on volume of 2.17 billion shares.

Outside of the tech sector, market participants wonder whether falling oil and commodities of late signal a pending economic slowdown, which would be bad for earnings, or a simple sector correction, which would relieve costs pressures on corporate profits. In addition to earnings, stock trading tomorrow will be influenced by the economic reports that are expected, including readings on the November trade balance and wholesale inventories.

Apple stole the show at the annual Macworld conference. CEO Steve Jobs said that the company would launch the "iPhone" - with iPod, cell phone and "Internet communicator" capabilities. Additionally, the company will be renamed Apple Inc. to reflect its larger focus on consumer electronics. Shares of Apple closed up $7.10 or 8.3% to $92.57.

Shares of Sprint Nextel closed down $2.19 or 11% to $17.45, after stating that its 2007 revenue will fall in a range that sets the midpoint below analysts' forecasts. It also said that it will cut about 5,000 jobs next year. It expects to report full-year revenue of about $41 billion, below the average analyst forecast of $41.5 billion.

Shares of BP closed down $1.85 to $62.44, after the oil major said its oil and gas production fell 5% in the fourth quarter of 2006 compared to last year, sparking fears about the company's growth potential.

Stock of GE closed up $0.00 to $37.55, as it is reportedly seeking buyers for its plastics business, worth up to $10 billion. Goldman Sach is acting on behalf of GE and has contacted potential plastics-industry bidders. These include at least four groups, including Apollo Management, Bain Capital, the Blackstone Group BG.UL and Kohlberg Kravis Roberts & Co.

U.S. light crude oil prices for February delivery recovered most of its early losses and was 45 cents lower at $55.64. Oil prices have been tumbling for the last week in response to unusually warm Northeast weather and bets that large hedge funds are cutting their exposure to the sector.

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