10:00 ET Dow +34, Nasdaq +14, S&P +2.75: [BRIEFING.COM] Volatility is not what we're seeing this Monday morning. Following
an indecisive open, the markets now carry a slightly positive bias. The Dow is now roughly 15 points from the important 11,000 level. The
Nasdaq has cleared 2200 on solid market internals. Of note, Cisco Systems (CSCO +3.1%) is trading higher this morning on 29 million
shares in the first half hour. The tech bellwhether reports earnings tomorrow night and the results will be closely assessed by investors.
DJTA -0.3%... DJUA -0.2%... SOX -0.7%... XOI +0.4%... BTK +0.1%... Nasdaq 100 -0.3%... S&P Midcap 400 -0.3%... Russell
2000 -0.1%... NYSE Adv/Dec 1234 /1108... Nasdaq Adv/Dec 1590/1321.
09:45 ET Dow -25, Nasdaq -4, S&P -3.69: [BRIEFING.COM] Not a lot of conviction at the open. The markets trade modestly lower
across each of the major indices. Biotech, oil and natural gas are experiencing early buy interest while weakness is evident in transports,
retail, financials and gold. Nothing clear in the market internals to this point though Nasdaq internals look moderately bullish while Big Board
internals carry a slightly negative tone.
09:15 ET: [BRIEFING.COM] Futures have taken a modest turn lower with contracts now trading mixed. S&P futures at 1268, trade
three points below fair value while Nasdaq 100 futures at 1935, trade two points above fair value. The major indices begin the week
working towards a few key resistance levels which will be worth watching both today and throughout the week. For the Nasdaq, the index
faces very near term resistance in the area of 2205 with more meaningful overhead in the 2255 area. The Dow managed to close over
10,950 on Friday which places it well within striking distance of the important 11,000 level. The blue chip index hasn't closed over the
11,000 level since September 14, 2000. A decisive break over these levels on high volume and strong market internals is likely to clear the
way for subsequent moves higher. Yet following the market's recent strength, the question is whether the indices need to consolidate before
making another run.
08:45 ET: [BRIEFING.COM] Pre-market activity carries a slightly positive bias this morning. S&P futures at 1272, trade one point above
fair value while Nasdaq 100 futures at 1947, trade 14 points above fair value. Following Friday's impressive strength on weak employment
data it will be interesting to see what happens in the absence of major catalysts today. In another signal of broader economic weakness,
FedEx (FDX 41.28) reduced its Q4 outlook this morning citing deteriorating economic conditions and a rapid decline in the high-tech and
other durable goods industries. The company expects the economic softness to continue into its fiscal 2002, which begins June 1.
Separately, PMC Sierra (PMCS 41.25) stated at the JP Morgan H&Q Conference on Friday that it sees about another 5 months of tough
sledding before a turn in the business is likely to occur. On the positive side, the company thinks a turn is almost guaranteed after that time
frame. Energy supplier, Valero Energy (VLO 45.47) has announced the acquisition of independent refiner Ultramar Diamond Shamrock
(UDS 42.71) for $4 bln in cash and stock, plus the assumption of $2 bln in debt.
08:05 ET: [BRIEFING.COM] S&P futures -4.2, or 2.2 pts below fair value; Nasdaq 100 futures -7.5, or 1.5 pts above fair value. Have
not seen any clear direction in the futures over the past half hour; still pointing to roughly flat open.
07:35 ET: [BRIEFING.COM] This morning's fair value figures -- S&P 500 fair value: 1271; closed 2 pts above fair value. Nasdaq 100 fair
value: 1933; closed 9 pts above fair value. Current indications: S&P 500 futures are -2.7, or 0.7 pts below fair value. Nasdaq 100 is -9.5,
or 0.5 pts below fair value... The futures have traded in a tight range for most of the morning with little direction provided from European
markets (U.K. closed for holiday, Germany and France mixed).
06:07 ET: [BRIEFING.COM] S&P futures trading at 1270, 1.0 points below fair value, Nasdaq 100 futures trading at 1935, 2.0 points
over fair value. The 30-year bond is up 6 ticks at 5.660%. The dollar is a tad weaker against the yen, but a bit firmer against the euro.
06:06 ET: FTSE closed%, DAX +0.14%: [BRIEFING.COM] European stocks modestly higher, though UK markets are closed for
holiday. Technology and drug shares outperforming. Swiss drugs and diagnostics group Roche higher following a Novartis purchase of a
20% stake in Roche for 4.8 mln Swiss francs. Nokia helping to boost tech after the world’s largest mobile phone maker said Friday that it is
still possible for the company to garner a 40% market share for handsets, even if it has yet to reach its goal.
06:05 ET Nikkei +0.75%, Hang Seng +1.57%: [BRIEFING.COM] Asian stocks higher with Japan’s Nikkei pushing to its best levels
for the year. NTT DoCoMo led the way higher, surging 7.4% to a five-month high ahead of the company’s earnings announcement on
Wednesday. Good foreign buying was reported once again. Hong Kong closed 1.57% higher with help from an 8.6% gain in China Unicom,
while Korea’s Kospi gained 1.9%, closing higher for the fifth consecutive session.
Close Dow +154.59 at 10951.24, Nasdaq +45.33 at 2191.53, S&P +18.03 at 1266.61: [BRIEFING.COM] It was an unusual day for
the markets to say the least. A weaker than expected employment report triggered a gap lower across the major indices. Yet after some
initial volatility, the markets trended higher throughout the day. By the end of trading, the Dow had cleared notable resistance in the 10,900
area while the Nasdaq posted an impressive 2.1% gain for the day... The April employment report was released this morning and the
numbers were much weaker than consensus expectations. Nonfarm payrolls were down 223,000 versus consensus expectations for a
25,000 increase. Additionally, the unemployment rate ticked up to 4.5% versus the prior month's reading of 4.3%. These aren't good
numbers for an economy expected to improve on the back of continued consumer confidence and spending. At some point, investors are
likely to revisit the question of whether the Fed has fallen behind the curve on stimulating economic growth... Today the market focused on
the employment report's implications for monetary policy. The weak employment data are supportive of a 50 basis point rate cut when the
Fed meets again on May 15. After today's activity, Fed funds futures markets are pricing in a 75% chance of a half-point cut. With just six
trading days between now and the next policy decision, traders don't want to be left behind if the market decides to rally ahead of the Fed's
move. With earnings season winding down and a light economic calendar next week it will be interesting to see whether the market is
capable of follow through on today's activity. The unusual Friday strength on particularly poor economic data suggests to Briefing.com that
the trend should be higher for the near term. DJTA +1.2%... DJUA +1.4%... SOX -1.3%... XOI +1.9%... BTK +5.2%... Nasdaq 100
+2.4%... S&P Midcap 400 +2.2%... Russell 2000 +1.5%... NYSE Adv/Dec 2060/996... Nasdaq Adv/Dec 2236/1528. |
