10:30 ET Dow -71, Nasdaq +23, S&P -5.09: [BRIEFING.COM] The indices have sold off since the open. The Dow has extended early
losses and while the Nasdaq continues to trade in positive ground, it has weakened in sympathy with blue chip sell pressure. The question for
traders at this point is whether the Nasdaq will rollover on the lack of committment to early buy interest. Total volume traded is very high in the
early going with 674 million shares crossing the tape. Market internals continue to generate a bullish read though are well off of the extreme
early strength. Trend reversals frequently occur after the first hour of trading which makes the current situation an interesting one to watch.
DJTA +0.3%... DJUA -1.4%... SOX +1.5%... XOI -3.3%... BTK -1.8%... Nasdaq 100 +1.2%... S&P Midcap 400 +0.4%... Russell 2000
+0.2%... NYSE Adv/Dec 1153/1391... Nasdaq Adv/Dec 1792/1263.
10:05 ET Dow -34, Nasdaq +37, S&P -0.22: [BRIEFING.COM] The markets are mixed with the Nasdaq demonstrating early strength in
spite of weakness on the Dow and the S&P 500. Technology is experiencing the strongest buy interest as a few positive catalysts have caused
market bulls to take a more bullish stance. Market leader Cisco Systems (CSCO +10%) is higher on the back of a Morgan Stanley report
stating the enterprise networking market is beginning to stabilize. Prior guidance from CSCO had been the market trough won't be seen for at
least another three quarters. Over 44 million shares of CSCO have crossed the tape in just the first half hour. Oil-related issues are particularly
weak with the XOI down 3.0% in the early going. Factory orders were just released and came out +1.8%. This is the first increase in three
months and the number was stronger than consensus expectations for a 1.4% rise. DJTA +0.1%... DJUA -1.2%... SOX +2.7%... BTK
-1.3%... Nasdaq 100 +2.0%... S&P Midcap 400 -0.2%... Russell 2000 -0.2%... NYSE Adv/Dec 1130/1338... Nasdaq Adv/Dec 1752/1158.
09:45 ET Dow +16, Nasdaq +50, S&P +4.53: [BRIEFING.COM] The Nasdaq has opened behind broad based buy interest while the Dow
and the S&P also trade in positive territory. Networking and optics look particularly strong in the early going while biotechs appear less
committed to the opening rally (BTK +0.1%). A very early read on Nasdaq internals suggests the rally could be impressive. Advance volume
constitutes 91% of total traded while decline volume represents only 7% of the total. New highs are outpacing new lows by 57 to 5. On the
broader market, it's difficult to identify clear leadership early. Oil drillers are getting hammered behind UBS Warburg's downgrade this
morning. Generally defensive sectors are also seeing sell presure such as gold and health care issues.
09:15 ET: [BRIEFING.COM] We're still seeing a positive tone in pre-market activity. S&P futures at 1273, trade two points over fair value
while Nasdaq 100 futures at 1967 trade 37 points above fair value. Communications chip maker Brocade Communications (BRCD 42.96) is out
this morning saying it expects to meet or beat previously lowered quarter two estimates. This news has the shares bidding up better than 9% on
heavy pre-market volume exceeding half a million shares. Separately, Morgan Stanley's call on stabilization in Cisco Systems' (CSCO 17.80)
North American enterprise networking business is sending the shares higher by 8% in pre-market trade activity. The early strength is worth
watching as CSCO is considered by many to be a barometer of Nasdaq direction. With or without these positive releases, the early Nasdaq
strength is not entirely surprising in light of yesterday's close. The index closed fractionally under yesterday's high price which is a bullish signal
from a technical perspective.
08:45 ET: [BRIEFING.COM] A slightly positive bias in futures trading to start the day. S&P futures at 1273, trade two points above fair
value while Nasdaq 100 futures at 1957, trade 27 points over fair value. This morning, UBS Warburg has downgraded a number of independent
refining companies after last night's release of the API's data on U.S. crude oil and product inventories. The data showed alarmingly high
week-to-week builds in crude oil, gasoline, and distillate stocks. Separately, Morgan Stanley is out saying it sees signs of stablization in Cisco
Systems' North American enterprise networking market. On the global markets, European stocks are lower as regional manufacturing
contraction suggests we may be seeing a global economic slowdown. The Reuters Eurozone Purchasing Managers' Index for April fell to 49.3
from 50.2 in March, the first contraction since February of 1999. Asian markets were mixed with the Nikkei closing slightly lower and the Hang
Seng posting a 3.2% gain.
07:55 ET: [BRIEFING.COM] Nasdaq futures spike up to +6 (13 pts above fair value) after CNBC reports rumor that Cisco could be seeing
some improvement in its inventory situation. Contract has now eased back to -2, or 5 pts above fair value...S&Ps trading 1.5 below fair value.
07:20 ET: [BRIEFING.COM] This morning's fair value figures -- S&P 500 fair value: 1271; closed 1 pt above fair value on Tuesday. Nasdaq
100 fair value: 1930; closed 7 pts above fair value on Tuesday. Current indications: S&P 500 futures are -4.5, or 3.5 pts below fair value.
Nasdaq 100 is -12, or 5 pts below fair value... Futures drifting early... Likely to see weakness in refiners at the open following CSFB
downgrade... Priceline.com (PCLN) bid up sharply after predicting a return to profitability next qtr.
06:12 ET: [BRIEFING.COM] S&P futures trading at 1268, 3.0 points below fair value, Nasdaq 100 futures trading at 1925, 5.0 points below
fair value. The 30-year bond is up 4 ticks at 5.731%. The dollar is a tad firmer against both the yen and the euro after yesterday's carnage.
06:11 ET: FTSE -0.17%, DAX -1.14%: [BRIEFING.COM] European stocks lower as regional manufacturing contraction puts the
near-term brakes on global reflation thoughts. Reuters Eurozone Purchasing Managers' Index for April fell to 49.3 from 50.2 in March, the first
contraction since February of 1999. Other big story of the day has been the plunge in Vodafone, which has been under heavy pressure following
the announcement that the company will sell $4.3 bln worth of new shares to fund its purchase of British Telecom’s stakes in Japan Telecom
and Spain’s Airtel.
06:10 ET Nikkei -0.03%, Hang Seng +3.20%: [BRIEFING.COM] Asian stocks mixed. Hong Kong’s Hang Sang rallied 3.2% to make up
for gains lost to the recent holidays. Market closed at seven-week highs, boosted by blue chip banking, real estate and telecommunications
stocks. Korea’s Kospi pushed to two-month highs on heavy foreign buying, as well as a nice round of gains in the auto sector on the back of
better than expected April sales. Nikkei a tad weaker, but Topix at six-month highs with Japan Telecom up 18% after Vodafone agreed to pay
$5.3 bln for BT’s 20% stake in Japan’s third largest mobile phone company.
Close Dow +163.37 at 10898.34, Nasdaq +52.01 at 2168.25, S&P +16.99 at 1266.45: [BRIEFING.COM] Impressive day for the bulls
today. The NAPM index, an important economic indicator for the Fed, rose slightly to 43.2%, a bit weaker than the consensus estimate of
44.0% and roughly flat with the March reading of 43.1%. April marked the third consecutive rising month which supports the argument that we
have seen a bottoming in the NAPM. As a result, the data tilts the pendulum more towards a 25 bp from a 50 bp easing at the May 15 FOMC
meeting. Briefing.com continues to forecast a 50 bp ease, but that could change with Friday's employment report. Prices paid index fell to
48.9% from 49.9%, which is good news on the inflation front. Not surprisingly, employment index fell to 38.1% from 40.4%, increasing the
probability of another payroll decline in Friday's report, which will be another key report for the Fed...This afternoon's surge in the indices was
encouraging because investors were willing to shrug off the impact of the NAPM data on interest rates, and bid up stocks...Working as a
catalyst in the afternoon was a report that House and Senate negotiators have reached a tentative deal on a $1.35 tln tax cut plan which includes
a $100 bln retroactive cut this year. This latter part is bullish for the market as it helps the sentiment that we will avoid a recession in the second
half of the year....Most sectors were strong today. Other than chip equipment stocks, techs were the impetus for the rally. SG Cowen made
some very bearish comments on orders at AMAT today. Even PC stocks ignored bearish comments from Merrill Lynch, which
reduced estimates for Dell (DELL 25.76 -0.48) as firm expects next couple of qtrs to prove challenging. Also doing well were the brokerages,
banks, telecom, retail and biotech sectors....Homebuilders were under pressure today despite a merger between Pulte Homes (PHM 42.50
-4.28) and Del Webb (WBB 38.40 +4.60) to create the nation's largest homebuilder...The Dow was as impressive as the Nasdaq thanks in large
part to a positive earnings announcement from Procter & Gamble (PG 64.18 +4.13). Other big Dow winners include HD, MO, T, and SBC. In
fact, Philip Morris (MO 52.10 +1.99) set a new 52-wk high today....It's days like today that are the best evidence that the bear is dead.
Investors/traders are clearly more comfortable buying on the dips. DJTA -0.4%... DJUA -0.4%... SOX +0.6%... XOI -0.1%... BTK +0.7%...
Nasdaq 100 +3.5%... S&P Midcap 400 +0.8%... Russell 2000 +1.1%... NYSE Adv/Dec 1873/1177... Nasdaq Adv/Dec 2340/1496. |
