Market Summary

Wall Street was less than stellar heading into the long holiday weekend Friday. Stocks saw the worst day of 2010, and could be a precursor market activity as we head deeper into earnings season. Financials made their way lower following premarket results from JPM, despite their big jump in the bottom line, the increase in loan losses reminded investors that the retail banking business is still ailing.

The Dow Jones industrial average dropped 100.90 points, or 0.94 percent, to 10,609.65, its biggest decline since Dec. 31. The Standard & Poor’s 500 Index fell 12.43 points, or 1.08 percent, to 1,136.03. The Nasdaq Composite Index lost 28.75 points, or 1.24 percent, to 2,287.99. All three major averages finished lower on the week as the Dow ended down 0.1 percent, its second loss in three weeks. The S&P fell 0.8 percent and the Nasdaq fell 1.3 percent.

Crude-oil prices dropped for the fifth consecutive day, declining 1.08 percent to $78 per barrel on the NYMEX.

After a 62% stock-market rally since March, a broader correction may be in store following market reactions to Intel Corp (INTC) and J.P. Morgan Chase (JPM)

It’s a busy week ahead with more than 400 companies issuing reports between Tuesday and Friday.

Earnings Notables

Tech: IBM (IBM) after Tuesday’s close and Google (GOOG) after Thursday’s close.

Restaurant Chains: Starbucks (SBUX) after Wednesday’s close and McDonald’s (MCD) before Friday’s open.

Financials; Citigroup (C) on Tuesday. Bank of America (BAC), Wells Fargo (WFC), and US Bancorp (USB), on Wednesday. Goldman Sachs (GS) will hit on Thursday

Airlines: Continental Airlines, Inc (CAL) and Southwest Airlines Co (LUV) on Thursday.

It was a mixed result on Wall Street Wednesday as equities came off their morning highs after the release of the fed statement in the afternoon. The blue chips were the only average unable to stay green at the close, as the Dow Jones industrials fell 10.88, or 0.1 percent, to 10,441.12. The broader Standard & Poor’s 500 index rose 1.25, or 0.1 percent, 1,109.18, while the Nasdaq composite index rose 5.86, or 0.3 percent, to 2,206.91

Morning Outlook

Futures are making their way lower this morning on the street as the rising greenback is putting pressure on equities and commodities. Before the weekly jobless number, Dow Jones industrial average futures are down 61, or 0.6 percent, at 10,390. Standard & Poor’s 500 index futures are down 8.00, or 0.7 percent, at 1,097.70, while Nasdaq 100 index futures are down 14.00, or 0.8 percent, at 1,786.00.

Bank of America Corp (BAC) has found their new man to replace outgoing CEO Ken Lewis. The exhausting search has landed them consumer and small business banking chief, Brian Moynihan, as president and CEO.

Currencies and Commodities

The dollar rose 0.1877% at 89.95 yen in the currency market. The euro depreciated 1.1257% to $1.4368 while the pound lost 1.2828% to $1.6124. Gold is down $14.90 to $1121.30 an ounce, while silver dropped 1.46% at $17.43. Light, sweet crude for January delivery fell 53 cents to $72.13; a loss of 0.73%

Economic Calendar

8:30 AM
Jobless Claims: New unemployment claims for the week of December 12th , to show the number of individuals who filed for unemployment insurance for the first time. The fewer people filing for unemployment benefits, the more have jobs, the more income in the consumer’s pocket, as well as a forecast on the strength of the economy. The consensus is for an increase of 465,000 for first time jobless claims, down from last week’s reading of 474,000; while continuing claims rose fell by 303,000 to 5.157 million. The four week moving average keeps ticking down, dropping 7,750 to 473,750.

10:00 AM
Leading Indicators: A composite index of ten economic indicators that should lead overall economic activity. The consensus is for a 0.7% increase for the month of November, following a 30 basis point increase in October. The reading was led higher by the spread on the 10 year treasury and the fed funds rate, the larger gap is evidence of expected economic growth and a rise in future rates and inflation.

Market Summary

Stocks fell sharply Tuesday as blue chip stocks lowered guidance, while financials slumped on debt worries. Equities faced pressure from a climb in the U.S. dollar and a dip in commodities. The markets opened negative, and closed out the day near their lows of the session. Energy, financials, consumer staples all had a rough going.

The Dow Jones industrial average fell 104.14 points, or 1.00 percent, at 10,285.97. The Standard & Poor’s 500 Index closed down 11.31 points, or 1.03 percent, at 1,091.94. Tech was the best performer as the Nasdaq Composite Index lost 16.62 points, or 0.76 percent, at 2,172.99.

Benchmark crude for January delivery dropped $1.31 to settle at $72.62 a barrel on the NYMX; it’s fifth day of declines.

3M Company (MMM) gave a 2009 outlook that fell short of Wall Street’s consensus and provided investors with a cautious initial view of its 2010 earnings. McDonald’s Corporation (MCD) said sales at its established U.S. restaurants dipped in November as competitors pushed low prices to bring in consumers

ISM Manufacturing Forecast

The Institute for Supply Management released their semiannual economic forecast. Economic growth in the United States will resume in 2010, with manufacturing revenue forecast to rise 5.7 percent. Capital expenditures in manufacturing are expected to fall, but with the decline improving to 4 percent next year from a drop of 7.8 percent in 2009.
Revenue in the non-manufacturing sector is expected to increase by 1.3 percent in 2010, while capital expenditures in the services sector will decrease by 6.7 percent.

Manufacturers expect employment in their sector will increase by 1.5 percent, while labor and benefits costs are expected to increase an average of 1.4 percent in next year.

A Little Commercial Real Estate Acquisition

The Simon Property Group has agreed to buy Prime Outlets from the Lightstone Group for $2.235 billion, adding 22 retail outlets to its portfolio. Under the terms of the deal announced Tuesday, Simon’s consideration for Prime Outlets will consist of 80 percent cash and 20 percent stock.

Simon the largest mall operator, has arranged a $3.565 billion line of credit that can expand up to $4 billion; led by JP Morgan Chase Co (JPM) and Bank of America Inc (BAC)

Wall Street finished the session mixed on Wednesday as the blue chips lost ground off of their 14 month high, falling 18.90, or 0.2 percent, to 10,452.68. The Standard & Poor’s 500 index edged up 0.38, or less than 0.1 percent, to 1,109.24, and the Nasdaq composite index rose 9.22, or 0.4 percent, to 2,185.03. However, there were more advancing than declining stocks on the NYSE by about a 2-1 margin.

Morning Outlook

Stock futures are higher Thursday after Bank of America Corp. (BAC) has stated it will raise additional capital to repay the $45 billion in TARP funds it has received. The street is also awaiting data on weekly jobless claims, the last reading before tomorrow’s November employment situation. Expect trading to be uneasy heading into the report. We had a massive rally in November, and investors may want to take their profits.Dow Jones industrial average futures rose 27, or 0.3 percent, to 10,466. Standard & Poor’s 500 index futures rose 3.30, or 0.3 percent, to 1,111.20, while Nasdaq 100 index futures rose 4.50, or 0.3 percent, to 1,796.00.

Currencies and Commodities

The dollar rose 0.6643% at 87.965 yen in the currency market. The euro appreciated 0.5035% to $1.512 while the pound gained 0.021% to $1.6632. Gold advanced to another new record high on the falling dollar, rising $7.20 to $1220.20 an ounce, while silver lost 0.47% at $19.23. Light, sweet crude for January delivery rose 70 cents to $77.30 per barrel on the NYMEX; a 0.91% advance.

Economic Calendar

8:30 AM
Jobless Claims: New unemployment claims for the week of November 28th , to show the number of individuals who filed for unemployment insurance for the first time. The fewer people filing for unemployment benefits, the more have jobs, the more income in the consumer’s pocket, as well as a forecast on the strength of the economy. The consensus is for an increase of 485,000 for first time jobless claims, up from last week’s reading of 466,000; while continuing claims fell by 190,000 to 5.423 million. The four week moving average fell 16,500 to 496,500.

8:30 AM
Productivity and Costs: Productivity measures the growth of labor efficiency in producing the economy’s goods and services for the 3rd quarter. Unit labor costs reflect the labor costs of producing each unit of output. Productivity growth is critical because it allows for higher wages and faster economic growth without inflationary consequences. The consensus change in nonfarm productivity is 8.6%, as employers cut hours forcing work to be done at a faster rate, rather than increasing output in the economy. This follows a 9.5% increase in Q2 of 2009.

10:00
ISM Non-Manufacturing Index: A compilation from 60 non manufacturing sectors across the economic spectrum. The index helps gauge strengths and weaknesses within the economy. The composite index for the month of November is expected to have a reading of 52; the ISM non-manufacturing survey fell 30 basis points in October to 50.6.

Market Summary

Wall Street finished with modest gains Monday in a seesaw session that was heavily influenced the days economic data. Despite the positive signs, investor’s brought back some volatility to the market, dragging the blue ships down to nearly half of their earlier gains. The Dow Jones rose 76.71, or 0.8 percent, to 9,789.44. The broader Standard & Poor’s 500 index rose 6.69, or 0.7 percent, to 1,042.88, and the Nasdaq composite index rose 4.09, or 0.2 percent, to 2,049.20. The Russell 2000 index of smaller companies fell 0.37, or 0.1 percent, to 562.40. Doubting the strength in the financials seems to be the new in thing. Citigroup Inc (C), Bank of America Corporation (BAC), may even throw General Electric Co. (GE) in there with their financing arm.

The yield on the benchmark 10-year Treasury note rose to 3.42%; a 3 basis point gain. Benchmark crude for December advanced $1.13 to settle at $78.13 a barrel on the NYMEX.

Rundown of the Data

The Institute for Supply Management’s gauge of manufacturing activity grew in October at the fastest pace in more than three years. It was driven by businesses’ replenishing of stockpiles, higher demand for American exports and support from the government’s $787 billion stimulus program.
The ISM index shot up to 55.7 in October, the third straight reading above 50, which signals growth in the sector. It was the highest level since April 2006.

The Senate is expected this week to pass an extension of the credit that was originally going to expire Nov. 30. Buyers who sign a purchase agreement by April can now claim the credit. The extension is packaged at $10.8 billion.

The extension will apply to higher income buyers. Previously the credit was available to individual filers making $75,000 a year or less. For couples the limit was $150,000. The new income limit will be $125,000 for individuals and $225,000 for couples.

There’s also something in for move-up buyers. Previously you couldn’t claim the credit if you owned a home in the past three years. Now, if your last home was your primary residence for at least five years, you can claim $6,500 in credit if you buy a new home. The new house can’t cost more than $800,000.

In the meantime, the National Association of Realtors reported that pending home sales jumped 6% today to a reading of 110.1. That’s the highest level since December 2006. And it’s more than 21 percent above a year ago.

It’s a busy week ahead on the street, as enthusiastic earnings reports from Alcoa (AA) and JP Morgan (JPM) were brought down to life Friday by Bank of America (BAC) and General Electric (GE)

Headlining earnings this week will be tech favorite Apple Inc (AAPL) and economic bellwether Caterpillar Inc (CAT ). 3M and Microsoft (MSFT), also along with 11 other Dow components, including McDonald’s Corp (MCD ), Pfizer Inc (PFE), Coca-Cola Co (KO), American Express (AXP) and DuPont (DD).

On the technology front, in addition to Apple and Microsoft, the spotlight will also fall on chipmaker Texas Instruments Inc (TXN) and Internet retailer Amazon.com Inc (AMZN), whose results may reveal how consumers are gearing up for the holiday shopping season.

Web media company Yahoo Inc (YHOO) is also on tap, along with United Parcel Service Inc (UPS ), eBay Inc (EBAY ), Kimberly-Clark (KMB), Altria Group (MO) and Hasbro Inc (HAS ).

61 companies in the S&P 500 had reported third-quarter results by Friday and 79 percent of them beat Wall Street expectations. Overall, S&P 500 third-quarter results are forecast to show a drop of 22.6 percent from a year ago.

Wall Street went from red to green on Thursday late in the trading session. Despite a weak performance from financials following Goldman and Citi earnings, energy stocks picked up the slack as crude exploded to fresh yearly highs. The Dow Jones Industrials found themselves positive, up 47.08 points, or 0.47% to 10,062.94. The S&P 500 added 4.54 points, or 0.42% to 1,096.56. The tech heavy Nasdaq climbed 1.06 points to 2,173.29

Morning Outlook

Futures are sliding in the premarket following earnings reports from General Electric Co (GE) and Bank of America Corp (BAC). We have seen the blue chips close over 10K for the first time in a year, will they rally and hold this week’s gains into the weekend?

Dow Jones industrial average futures fell 26, or 0.3 percent, to 9,938. Standard & Poor’s 500 index futures lost 2.90, or 0.3 percent, to 1,086.90, while Nasdaq 100 index futures declined 4.00, or 0.2 percent, to 1,744.50.

BofA Still Stinking it Up

Bank of America Corp (BAC) posted a net loss of $1 billion, or 26 cents per share, for third quarter, compared with net income of $1.18 billion, or 15 cents per share, in the same period last year. In addition, the nation’s largest bank set aside an additional $11 billion in loan loss reserves, $5 billion more than the same quarter in 2008.

Finance Arm Still Hampering GE

General Electric Co (GE) posted a 44-percent decline in profit to $2.4 billion, or 23 cents per share, compared to earnings of $4.3 billion, or 43 cents a share a year ago. On the top line, revenue fell 20 percent to $37.8 billion

Economic Calendar

9:15 AM
Industrial Production: The index of industrial production measures the physical output of the nation’s factories, mines and utilities. The consensus is for a production increase of 0.2% for the month of September; following a 0.8% rise in August.

9:55 AM
Consumer Sentiment: Consumer sentiment is directly related to the strength of consumer spending, by questioning 500 households each month on their financial conditions and attitudes about the economy. The consensus reading for October is 74, up from the prior reading of 73.5. Recent news on the economy has been better with equities rebounding and initial jobless claims coming down. But the unemployment rate may still be at the forefront of consumer worries.

After falling the prior two weeks, Wall Street recovered those losses and then some by the closing bell Friday. The Dow Jones Industrial average closed up 78 points, or 0.8%, to 9,864.94; a new high for the year. The S&P 500 was up 6 points, 0.6%, to 1,071.49, while the Nasdaq Composite Index rose 15 points, or 0.7%, to 2,139.

For the week, the Dow gained about 4%. The S&P 500 finished up 4.5% and the Nasdaq up 4.5%.

Morning Outlook

It’s a quiet morning on the street today, as the bond market is closed for the Columbus Day holiday. Stock and futures markets are open for business so here we are! Dow Jones industrial average futures rose 50, or 0.5 %, to 9,857. Standard & Poor’s 500 index futures gained 6.20, or 0.6 %, to 1,074.30, while Nasdaq 100 index futures rose 9.25, or 0.5 %, to 1,734.75.

Big week of earnings for financials as JPMorgan Chase & Co. (JPM) reports on Wednesday, followed by Goldman Sachs Group Inc., (GS) Citigroup Inc. and Bank of America Corp.(BAC). We all remember how financials began this market rally from the March abyss.

Currencies and Commodities

The dollar rose 0.3784% at 90.1250 yen in the currency market. The euro appreciated 0.2802% to $1.4773 while the pound lost 0.0836% to $1.5830. Gold just keeps jugging along, as the long term inflation threat and weak dollar send the precious metal up $7.30 to $1055.90 an ounce, while silver gained 1.30% at $17.92. Light, sweet crude for November delivery rose $1.33 to $73.10 per barrel on the NYMEX; a 1.85% advance and looking to test $75 as this week’s earnings progress.

Market Summary

After falling the prior two weeks, Wall Street recovered those losses and then some by the closing bell Friday. Markets jumped after being slightly negative in the premarket following an upgrade in tech heavy weight IBM. The Dow Jones Industrial average closed up 78 points, or 0.8%, to 9,864.94; a new high for the year. The S&P 500 was up 6 points, 0.6%, to 1,071.49, while the Nasdaq Composite Index rose 15 points, or 0.7%, to 2,139.

For the week, the Dow gained about 4%, its best since the week of July 20, when it was also up 4%. The S&P 500 finished up 4.5% and the Nasdaq up 4.5%.

Crude oil closed up 8 cents to $71.77 a barrel on the NYMEX, while gold fell $7.70 to $1,048.60 an ounce. The 10-year Treasury note was yielding 3.38%, a 12 basis point increase.

Trade Deficit Narrows on Weak U.S. Demand

Exports rose for the 4th straight month on global demand and a slumping dollar, sending the trade deficit to a narrower than expected $30.7 billion in August; a 3.5% decline. The sale of farm products and autos sent exports of goods and services up 0.2 percent to $28.2 billion, the highest level since December. Slumping demand for foreign oil, which fell 5.7%, was reflected in a 0.6% drop in imports, totaling some $158.9 billion.

Big Week of Earnings Ahead: 10K Plus By Weekend?

Tuesday: Johnson & Johnson (JNJ), Intel (INTC). The last comes after the close. Their discussions on the economy are important. Their guidance will be more important. If Intel’s guidance about profits and sales is strong, the stock market could have a big day on Wednesday.

Wednesday: JPMorgan Chase (JPM) and Abbott Laboratories (ABT).

Thursday: Goldman Sachs (GS) and Citigroup (C) IBM (IBM) and Google (GOOG). Goldman Sachs shares are up 124% this year alone. If Goldman misses estimates — the consensus is $4.20 a share — watch out. IBM was the Dow’s best performer on Friday after an upgrade.

Friday: General Electric (GE) and Bank of America (BAC). Toss in Mattel (MAT) as well because it will offer a peek at the upcoming holiday shopping season. GE shares have risen at least 10% every month since February and are fairly close to hitting their 2008 close of $16.20. GE’s guidance will be very important. Watch Bank of America for two things: a successor for CEO Ken Lewis (if one isn’t announced beforehand) and how much Merrill Lynch is contributing to its bottom line.

Market Summary

Wall Street saw modest losses Wednesday, the last day of the 3rd quarter; a quarter that will go down in the record books. The blue chips and S&P gained 15% for the July-September period. The tech heavy Nasdaq was the best quarter performer, advancing 15.7%.

Traders got a heavy dose of economic data, a trend that will continue the rest of the week. A weaker than expected private sector jobs report was followed by an upwardly revised 2nd quarter GDP reading.

The Dow ended down 29.92, or 0.3 percent, at 9,712.28. The S&P 500 index fell 3.53, or 0.3 percent, to 1,057.08. The Nasdaq fell 1.62, or 0.1 percent, to 2,122.42. The Russell 2000 index of smaller companies fell 6.17, or 1 percent, to 604.28.

Lewis to Step Aside…Finally

Embattled Bank of America Corp. (BAC) Chief Executive Ken Lewis, fatigued by multiple government probes into himself and his company, will retire at the end of the year.

The CEO oversaw the horrific purchase of worthless Merrill Lynch and Countrywide Financial; almost wiping out equity holders in the process as the economic crisis intensifies earlier in the year.
But don’t worry Ken, you succeeded in making your company too big to fail. Most likely too big to succeed as well.

Your Saturn is Now a Classic!

General Motors Co. will shut down Saturn now that a deal with former race car driver and auto dealer magnate Roger Penske has collapsed, marking the end of a brand that was supposed to revolutionize the way small cars were built and sold in America.

Although the sales price was never disclosed, Penske was to get Saturn’s roughly 350 dealerships and promised to retain 13,000 employees. GM has been trying to sell Saturn since earlier this year as part of its turnaround plan.

“Doing right by people since day 1”…apparently not!