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Dow 12,321.59 5.05 (0.04%) Nasdaq 2,454.84 2.12 (0.09%) S&P 500 1,402.81 2.31 (0.16%) 10-yr Bond 4.5780% 0.0170 30-yr Bond 4.6580% 0.0190 NYSE Volume 2,597,935,000 Nasdaq Volume 1,753,484,000
4:20 pm : If your life was in need of some excitement ahead of a long holiday weekend, Wall Street wasn't the place to look today. The major averages traded in very narrow ranges throughout the session, making modest moves on either side of the unchanged mark as investors were lacking notable trading catalysts.
For a second straight day there was nothing on the economic calendar to either support or to counter the possibility of a soft landing scenario, leaving investors to weigh a batch of generally good earnings news against a rebound in oil prices. Crude for January delivery closed above $60/bbl, surging 2.3% amid reports that restrictions imposed on the Trans-Alaska Pipeline System due to high winds will cut capacity by 25%.
Fortunately for the bulls, strong leadership from the profit engine that is Energy helped to offset some of the commodity's potential inflationary characteristics. Energy surged 1.8%, leading the charge among the five other S&P 500 sectors trading higher but which averaged a gain of just 0.2%.
Of the five sectors attracting buyers, Industrials provided the most influential leadership. Boeing (BA 90.08 +0.96) soared to a new all-time high after inking an order from Korean Air worth $5.5 bln at list prices. The sector's best performer, though, was Deere & Co. (DE 95.04 +5.63). Despite warning that fiscal 2007 sales are expected to get off to a slow start, Q4 profits handily topping analysts' expectations helped propel the stock more than 6.0% to a record high.
Medtronic (MDT 53.67 +4.72) was another surprise, climbing nearly 10% after key market share gains contributed to a better than expected Q2 earnings report. However, consolidation throughout the drug and biotech groups offset strength in the medical equipment space and prevented Health Care from offering any leadership to the upside.
Also keeping market gains in check was the absence of leadership from Financials, Consumer Staples and Technology. While the latter eventually inched into the green, as Google (GOOG 509.65 +14.60) eclipsing the $500 level for the first time ever helped offset analyst downgrades in the semiconductor space (e.g. LRCX -2.5%, NVLS -2.5%). BTK -0.9% DJ30 +5.05 DJTA +0.3% DJUA +0.2% DOT +0.4% NASDAQ +2.12 NQ100 +0.3% R2K +0.2% SOX -1.1% SP400 +0.2% SP500 +2.31 XOI +1.7% NASDAQ Dec/Adv/Vol 1503/1516/1.69 bln NYSE Dec/Adv/Vol 1262/2022/1.48 bln
3:30 pm : Going into the close, stocks continue to trade with little fanfare. It is worth noting, though, that the VIX (CBOE Volatility Index) is making new 12-year lows, further underscoring a lack of "fear" in the market. Yesterday, the VIX closed below 10 for the first time since 1994 and is at its lowest levels since December 1993. The index's decline suggests investors are actively buying call options in anticipation that a short-term bottom has been put in place that will keep the four-month rally on track. DJ30 +4.57 NASDAQ -1.05 SP500 +1.64 NASDAQ Dec/Adv/Vol 1546/1438/1.37 bln NYSE Dec/Adv/Vol 1318/1936/1.18 bln
3:00 pm : There still isn't much excitement to speak of in the market at this point as the major indices are trading close to unchanged. Oil prices recently closing near their highest levels of the day, up 2.3% and above $60/bbl, has taken some of the wind out of the market's sails and left the door open for some consolidation. As a reminder, the major indices rose 1.9% on average last week and are up an average of 2.5% in November, leaving the sustainability of such impressive gains in question. DJ30 +8.89 NASDAQ -0.08 SP500 +2.00 NASDAQ Dec/Adv/Vol 1531/1444/1.24 bln NYSE Dec/Adv/Vol 1331/1918/1.06 bln
2:30 pm : Major averages are back to trading in split fashion, leaving sector leadership evenly matched. Despite an analyst upgrade on Dow component Verizon Communications (VZ 35.17 +0.50), Telecom (-0.5%) is still today’s worst performing sector. That isn't all that surprising since it has been this year’s best performer posting a 25% year-to-date advance. However, another reversal in the Tech sector, as well as a sell-off in Biotech (e.g.GENZ -2.4%, GILD -2.2%), are contributing to the added selling pressure that has recently pushed the Nasdaq back into negative territory.BTK -1.0% DJ30 +5.93 NASDAQ -1.92 SOX -1.2% SP500 +1.34 NASDAQ Dec/Adv/Vol 1522/1433/1.17 bln NYSE Dec/Adv/Vol 1326/1928/988 mln
2:00 pm : Buyers remain in control of the action but market gains are still modest at best. Meanwhile, oil prices have eclipsed the $60/bbl mark and are now up more than 2.0% on the day; but as is often the case, subsequent leadership across the Energy sector is helping investors deal with the ramifications rising oil prices can have on consumption patterns, especially heading into the all-important holiday season. DJ30 +16.87 NASDAQ +1.59 SP500 +1.82 XOI +1.3% NASDAQ Dec/Adv/Vol 1518/1442/1.06 bln NYSE Dec/Adv/Vol 1316/1907/888 mln
1:30 pm : Little changed since the last update as the major averages continue to vacillate in roughly the same ranges. The market's holding pattern is underscored by the absence of notable catalysts to push the indices more aggressively to the upside. Industrials is still providing a floor of market support, as Boeing (BA 91.25 +2.13) extends its reach into unchartered territory (+2.4%); but the lack of buying interest anywhere else, with the exception of Energy, has stalled midday recovery efforts. DJ30 +13.38 NASDAQ +1.53 SP500 +1.71 NASDAQ Dec/Adv/Vol 1488/1450/992 mln NYSE Dec/Adv/Vol 1285/1898/826 mln
1:00 pm : Stocks continue to hold their own just above the flat line but market breadth remains mixed. As reflected in the A/D line, advancers outpace decliners on the NYSE by a 17-to-13 margin while declining issues hold a slight 15-to-13 edge over advancing issues on the Nasdaq. Below average volume due to the holiday-shortened trading week is also contributing to the lack of conviction from either buyers or sellers. DJ30 +13.54 NASDAQ +1.80 SP500 +2.01 NASDAQ Dec/Adv/Vol 1391/1502/886 mln NYSE Dec/Adv/Vol 1354/1789/724 mln
12:30 pm : The market kicks off the afternoon session at improved levels, but the recent rebound has not nearly been enough to make a significant change in the standings. Technology turning positive is contributing to the renewed wave of modest buying interest, but continued weakness in other influential areas like Financials and Health Care are keeping market gains minimal. DJ30 +12.65 NASDAQ +1.19 SP500 +2.25 NASDAQ Dec/Adv/Vol 1538/1338/800 mln NYSE Dec/Adv/Vol 1328/1789/644 mln
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