13:00 ET Dow -10, Nasdaq +80, S&P +12.67: [BRIEFING.COM] Both the Nasdaq and the S&P 500 trade near the day's best levels
while the Dow hovers in modestly negative ground. On Friday, Briefing.com mentioned that oil is approaching the $30 per barrel mark.
Today, the June contract on crude continues to flirt with this level and actually surpassed it on an intraday basis in earlier trading. The
contract is now back at $29.95 posting a meager 4 cent rise in today's session. This is an important dynamic for the markets as higher oil
prices can be a drag on both the production and the consumer side of the economy. A sharp rise in oil is likely to exacerbate concerns in
California which represents roughly 13% of the U.S. economy. As mentioned previously, oil-related equities continue to lag in today's
session with the XOI posting a 0.7% intraday loss. Strength is evident broadly across technology with other areas of buy interest including
broadcast/media and insurance. Media issues are stronger behind an upgrade to Dow component Walt Disney (DIS +5.6%). DJTA
+0.5%... DJUA +0.6%... SOX +5.2%... XOI -0.7%... BTK +5.0%... Nasdaq 100 +4.4%... S&P Midcap 400 +1.5%... NYSE Adv/Dec
1705/1217... Nasdaq Adv/Dec 2326/1355.
12:30 ET Dow -1, Nasdaq +79, S&P +12.51: [BRIEFING.COM] Both the broad market and technology are seeing nice buy interest
today yet blue chips are struggling to participate. The S&P 500 is posting a 1.1% gain which is indicative of the breadth in today's rally.
Further support for this notion are intraday moves in the S&P 400 Midcap Index and the Russell 2000 which post 1.6% and 1.1% gains
respectively. Nasdaq volume continues to run at a nice clip with over 1.1 billion shares traded to this point in the day. Outside of the obvious
strength in technology, buy interest is also evident in entertainment, broadcast/media and insurance. Retail and financials are lukewarm to the
current rally but have improved relative to levels earlier in the day. Oil is a notable source of weakness with the XOI posting a 0.7% intraday
loss. DJTA +0.7%... DJUA +0.6%... SOX +6.0%... BTK +5.3%... Nasdaq 100 +4.9%... S&P Midcap 400 +1.6%... Russell 2000
+1.1%... NYSE Adv/Dec 1732/1160... Nasdaq Adv/Dec 2309/1285.
12:05 ET Dow +3, Nasdaq +72, S&P +11.53: [BRIEFING.COM] The Nasdaq is making a move today that is beginning to look very
powerful. The index has broken pivotal resistance at 2255 on heavy volume and market internals which are extremely bullish. Nasdaq total
volume is approaching 1 billion shares not even half way through today's session. It's worth noting volume kicked off the sesssion somewhat
light which suggests greater current strength than the raw number might indicate. Advance volume now outpaces decline volume by an
extreme reading of 9 to 1. Interestingly, today's move in technology comes in the absence of any real positive catalysts. Merrill Lynch came
out this morning and cut estimates on key semiconductor names Intel (INTC +3.2%), Applied Micro Devices (AMD +2.2%) and Micron
Tech (MU +6.8%). Nonetheless, each of the former issues trades higher which is contributing to a sizeable 5.4% intraday gain on the
SOX... The Dow has struggled to participate today also in the absence of any real catalysts. Of note however, Procter & Gamble (PG
-3.5%) announced this morning it will acquire Clairol from Bristol-Myers Squibb (BMY -0.9%) for $4.9 billion in cash. Separately, Dow
component Walt Disney (DIS +5.7%) is experiencing buy interest on the back of an upgrade to the shares from Salomon Smith Barney.
DJTA +0.5%... DJUA +0.6%... SOX +5.4%... XOI -0.7%... BTK +4.5%... Nasdaq 100 +4.1%... S&P Midcap 400 +1.3%... Russell
2000 +0.9%... NYSE Adv/Dec 1665/1181... Nasdaq Adv/Dec 2190/1302.
11:30 ET Dow -3, Nasdaq +59, S&P +9.37: [BRIEFING.COM] In spite of the Dow's lack of participation today, the Nasdaq is working
on an important move. The tech-heavy index has blown through resistance at 2215, cleared the next level at 2232 and now faces its most
important test at 2255. Not surprisingly, the first test failed yet the index has not sold off severly on failure. In fact, it's barely sold off at all.
Big Board internals look moderately bullish but the hi/lo differential is notably strong. Currently there are 175 new highs in today's trading
which compares favorably to 7 new lows. Total volume traded is moderate on the NYSE and turning towards the heavy side now for the
Nasdaq. DJTA +0.3%... DJUA +0.4%... SOX +4.0%... XOI -0.8%... BTK -3.4%... Nasdaq 100 +3.0%... S&P Midcap 400 +0.9%...
Russell 2000 +0.7%... NYSE Adv/Dec 1562/1224... Nasdaq Adv/Dec 2109/1341.
11:00 ET Dow -35, Nasdaq +46, S&P +4.94: [BRIEFING.COM] The Dow has worked back towards the day's worst levels while the
Nasdaq is having trouble extending gains. Dow weakness is due in part to sell pressure on Procter & Gamble (PG -3.5%) which announced
this morning it will acquire Clairol from Bristol-Myers Squibb (BMY -0.9%) for $4.9 billion in cash. Separately, Dow component Intel
(INTC +1.0%) has had estimates cut by Merrill Lynch this morning yet the shares have turned higher nonetheless. On Friday, Briefing.com
mentioned Sun Microsystems (SUNW +10.2%) was experiencing buy interest due to positive analyst comments regarding demand for its
UltraSparc-3. Buy interest in SUNW is following through big today possibly due to anticipation of the company's mid-quarter update on
May 29. Cisco Systems (CSCO +7.9%) is also notably strong on three quarters daily volume already this morning. DJTA +0.1%... DJUA
+0.3%... SOX +3.0%... XOI -0.5%... BTK +2.7%... Nasdaq 100 +2.6%... S&P Midcap 400 +0.8%... Russell 2000 +0.6%... NYSE
Adv/Dec 1499/1159... Nasdaq Adv/Dec 1969/1298.
10:30 ET Dow -27, Nasdaq +38, S&P +4.21: [BRIEFING.COM] The Nasdaq didn't have much trouble with its near term resistance at
2215. It's also broken above 2232 which had represented its highest intraday level since February 28. Nasdaq market internals now skew
decidedly bullish with advance volume outpacing decline volume by a margin of 7 to 1. Technology strength has lifted the broader markets
with the Big Board picture looking much improved. Total volume traded has also improved somewhat, now registering moderate readings.
The Dow continues to lag early, yet the blue chip index is well off its worst levels. Nasdaq leadership is evident from both semiconductors
and biotech with the SOX posting a 1.8% intraday gain while the BTK is higher by 2.2%. Early trends can shift following the first hour which
is worth keeping an eye on. Yet with the internals looking as solid as they do, the chances for a severe change in complexion appear slim
barring market moving news. The next level to watch on the Nasdaq is 2255. DJTA +0.1%... DJUA +0.3%... XOI +0.1%... Nasdaq 100
+1.9%... S&P Midcap 400 +0.6%... Russell 2000 0.4%... NYSE Adv/Dec 1439/1096... Nasdaq Adv/Dec 1821/1253.
10:00 ET Dow -48, Nasdaq +13, S&P -0.97: [BRIEFING.COM] Still mixed on the major averages with the Dow trading lower while the
Nasdaq posts a modest gain. Semiconductors are seeing early buy interest in spite of Merrill Lynch estimate reductions to Intel (INTC
-0.7%), Micron Tech (MU -0.3%) and Applied Micro Devices (AMD -1.2%). The SOX is posting an early 0.7% gain without
participation from these key names. The Nasdaq faces moderate near-term resistance in the area of 2215 with near-term support around
2195. That's a tight range and the index has tested both bounds in the early going. Big board internals read mildly bearish while the Nasdaq
continues to look solid. It's still early however, and total volume traded to this point is on the light side. DJTA -0.2%... DJUA -0.1%... SOX
+0.7%... XOI +0.1%... BTK +1.3%... Nasdaq 100 +0.6%... S&P Midcap 400 +0.2%... Russell 2000 +0.3%... NYSE Adv/Dec
1229/1074... Nasdaq Adv/Dec 1596/1223.
09:45 ET Dow -63, Nasdaq +11, S&P -2.04: [BRIEFING.COM] The markets have opened mixed with the Dow selling off while the
Nasdaq posts a modest early gain. Large cap tech names are experiencing buy interest with size in the early going. Intel (INTC -1.1%) is
the notable exception to the rule as it's had estimates cut this morning by Merrill Lynch. Financials are struggling early though retail
issues carry a slightly positive bias in the aggregate. A very early read on market internals suggests greater Nasdaq strength than a read on its
intraday change would indicate. NYSE internals are neutral to this point in trading.
09:15 ET: [BRIEFING.COM] Still favoring the flatline in pre-market activity. S&P futures at 1295 trade one point over fair value while the
Nasdaq 100 pre-market indicator reads +3.7 points. Following last week's gains, investors face the question of whether the current rally has
any fuel left in its tank. The Dow closed the week at 11,300 and is now within striking distance of its all time high (in the 11,700's).
Nonetheless, both the Dow and the Nasdaq look somewhat overbought near term and are resting close to resistance levels. The markets
lack for short term catalysts which raises the question of whether the lack of potentially negative catalysts will permit prices to continue their
recent rise or whether a lack of potentially positive catalysts will keep buyers on the sidelines. Friday's activity was largely a stalemate which
reflects the general hesitation in the market... This morning, JP Morgan is out positive on cyclicals. Specifically, the firm is upgrading the
Aluminum and Railroad sectors to overweight from market weight. Separately, Ford Motor Company (F 27.13) has been downgraded by
CSFB due to concerns about its Explorer brand. This morning, Ford announced a recall of 50,000 2002 Explorers for tire damage.
08:45 ET: [BRIEFING.COM] Pre-market activity has turned around to carry a slightly positive bias. S&P futures at 1297, trade three
points over fair value while the Nasdaq 100 pre-market indicator is +5.2 points. Asian markets posted healthy gains last night with the
Nikkei +2.15% and the Hang Seng +1.95%. The European markets are currently mixed. Here in the states, Dow component Procter &
Gamble (PG 67.48) has acquired the Clairol business from Bristol-Myers Squibb (BMY 56.00) for $4.95 billion in cash. PG expects deal to
have a dilutive effect in the first year and to be slightly accretive in year two. Separately, Briefing.com is hearing from sources at Wit
SoundView that the firm is downgrading EMC (40.35) to a Hold from a Buy.
08:35 ET: [BRIEFING.COM] S&P futures at 1296 trade two points over fair value, Nasdaq 100 pre-market indicator reads +2.8. Merrill
Lynch out cutting estimates on both Intel (INTC 28.76) and Applied Micro Devices (AMD32.49).
08:05 ET: [BRIEFING.COM] S&P futures at 1294 trade even with fair value, Nasdaq 100 futures at 1930 trade four points under fair
value. It continues to be a quiet morning, with little in the way of market moving news or events to drive the futures.
07:30 ET: [BRIEFING.COM] This morning's fair value figures -- S&P 500 fair value: 1294; closed 1 pt above fair value. Nasdaq 100 fair
value: 1934; closed even with fair value. Current indications: S&P 500 futures are -2, or 1 pt below fair value. Nasdaq 100 is -4, or 4 pts
below fair value... Extremely quiet morning, with little in the way of market moving news or events to drive the futures.
06:18 ET: [BRIEFING.COM] S&P futures trading at 1295.50, 1.5 points over fair value, Nasdaq 100 futures trading at 1925, 9.0 points
below fair value. The 30-year bond is down 6 ticks at 5.779%. The dollar is weaker against the yen, but stronger against the euro.
06:17 ET: FTSE +0.20%, DAX -0.30%: [BRIEFING.COM] European stocks mixed. Oil shares outperforming on the back of $30 a
barrel oil. Middle East tensions on the rise, while shares also helped by the increase in the energy group in the MSCI World Index. This
weekend’s MSCI changes rewards free floats, or percent of shares available for trading, versus the traditional measure of market value.
Shares with large blocks of government ownership like France Telecom and Allianz, all underperforming. BMW also hit hard following an
unexpected MSCI exclusion. UK the big MSCI winner.
06:17 ET Nikkei +2.15%, Hang Seng +1.95%: [BRIEFING.COM] Asian stocks mostly higher. Favorable MSCI changes help boost
Japan, Korea and Hong Kong. Cut in Tokyo’s weighting smaller than expected. Taiwan shares underperform, falling to a 20-month low with
the country’s weighting cut by 25%.
Close Dow +53.16 at 11301.74, Nasdaq +5.20 at 2198.88, S&P +3.47 at 1291.96: [BRIEFING.COM] While the magnitude of today's
market move wasn't that impressive, today's activity was encouraging for those bullish on equities. The major averages closed modestly
positive despite earnings warnings from Dell (DELL -4.2%), Palm, Inc. (PALM -29%) and Gap Incorporated (GPS -2.7%). At the end of
today's session, the Dow edged over 11,300 while the Nasdaq finished just under its resistance at 2,200. For the week, both the Dow and
the Nasdaq tacked on 3.9% behind a 50 basis point interest rate cut from the Fed. More importantly, the Fed signaled subsequent cuts may
be on the horizon which has added uncertainty as to when the current easing cycle might end... Both gold and oil were notably strong
today. The June contract on gold rose $13.80 (5.0%) to $287.80. This morning, Briefing.com noted the Bank of England had reduced the
size of its gold auction to 20 tonnes this Tuesday from 25 tonnes at the prior 11 auctions. There is speculation now the BOE might further
reduce or eliminate the sale of its reserves altogether. Gold-related equities spiked behind strength in the commodity with the XAU posting a
4.1% gain on the day... Separately, oil was also strong with the June contract on crude edging its way towards $30 per barrel. The contract
closed at $29.91 which was higher by $1.00 or 3.5% for the session. Contributing to the rise in price was indecision regarding a production
cut at a European refiner. DJTA +0.7%... DJUA +1.0%... SOX +0.3%... XOI +2.2%... BTK -0.2%... Nasdaq 100 +0.1%... S&P
Midcap 400 -0.2%... NYSE Adv/Dec 1665/1384... Nasdaq Adv/Dec 1967/1821. |
