Reply #48: 12:10 markets are mixed [View All]

[ozymandius]

Dow 10,292.35 -7.90 (-0.08%)
Nasdaq 1,977.28 +5.73 (+0.29%)
S&P 500 1,170.05 -1.06 (-0.09%)
10-Yr Bond 4.224% +0.02

NYSE Volume 844,662,000
Nasdaq Volume 835,454,000

12:00PM: Market still trades with a tinge of caution midday, as strong monthly retail sales data and plummeting oil prices struggle to offset Wal-Mart's disappointing quarterly report... April retail sales rose a much stronger than expected 1.4% (consensus +0.7%) and retail sales, excluding autos, surged 1.1% (consensus +0.5%), as the March data were revised slightly higher... Meanwhile, crude oil futures ($48.70/bbl -$1.75) have been under pressure all morning amid slowing demand, inventory builds and a stronger dollar...
However, even though a sharp decline in oil has eased pressures on discretionary spending and April's sales data - the best showing in seven months - indicate that the concern exhibited from weak March retail data was overdone, Wal-Mart's (WMT 47.42 -1.18) disappointment has weighed on sentiment and left sector leadership mixed... The retail giant missed analysts' Q1 estimates by a penny, issued Q2 earnings guidance below consensus and said that its FY05 outlook is "still possible, but far more difficult to achieve."...

Energy (-2.4%) has paced the way lower amid a 3.5% sell-off in oil while the Materials sector (-1.0%) has also been weak as the dollar has risen to its best levels so far this year against the euro (1.2708)... News that U.S. Steel (X 39.80 -2.30) has cut its forecast of 2005 domestic shipments for the second time in three weeks has also weighed on the sector... Interest-rate sensitive areas like Financial, Utility and Homebuilding have been under pressure amid rising bond yields... Treasurys have been weak following the strong retail data ahead of an upcoming $14 bln 10-year note auction, as the benchmark 10-year note is down 5 ticks to yield 4.22%...