Market Report: Stock Ticker

Dollar oscillates, but finishes flat

Second quarter GDP estimate pulls back from advance reading, but comes in-line with expectations

Consumer Confidence posts positive surprise

Latest FOMC minutes show increased GDP forecast for fiscal 2009

Weak
diversified REITs; retail REITs; homebuilding; health care facilities; employee services; computers and electronics; airlines; electronic manufacturing services

[BRIEFING.COM] There were plenty of trading catalysts this session, but participants were generally subdued and left stocks to trade with moderate losses in light volume ahead of the Thanksgiving holiday.

The stock market spent virtually the entire session in negative territory after stocks had logged solid gains in the previous session. Unlike the previous session, though, the dollar bounced between moderate gains and losses before it finished flat. Overseas markets also offered little support as they were hampered with weakness; the Shanghai Composite closed 3.5% lower due, in part, to concern for a lack of market-supportive measures from the country's officials.

Upon a second look, U.S. GDP was determined to have expanded at a 2.8% rate in the third quarter. That was in step with expectations, but it marked a considerable downward revision to the 3.5% increase that was posted as part of the advance GDP estimate.

Despite expectations for the downward revision, the Fed raised its GDP target for 2009 to the range -0.4% to -0.1% from the range -1.5% to -1.0%, according to the minutes from the November 4 FOMC meeting.

Though there is no empirically proven corollary between consumer confidence and spending, participants showed a short-lived, positive response to news that the November Consumer Confidence Index improved to a better-than-expected reading of 49.5. Retailers showed some strength early, but settled the session flat.

However, American Eagle Outfitters (AEO 15.01, +0.47) was a strong performer after it posted third quarter adjusted earnings that met expectations. Discount retailer Dollar Tree (DLTR 51.33, +2.23) brought in better-than-expected earnings and issued in-line guidance.

The biggest earnings announcement came from Dow component Hewlett-Packard (HPQ 50.19, -0.83), however. The company posted in-line earnings that reflected its preannouncement and affirmed an in-line outlook, which it had recently raised. Still, the lack of positive surprises in the report left it to lag for the entire session.

Financials proved to be the biggest drag on trade, though. The sector fell 0.8%. Bank stocks had been under pressure in the early going after Financial Times reported that the Federal Reserve has asked nine of the nation's largest banks to outline how they intend to repay TARP. Though regional banks (-0.3%) and diversified banks (-0.4%) were able to limit their losses, diversified financial services institutions (-1.5%) suffered. Even Bank of America (BAC 16.10, -0.19) couldn't be helped by news that analysts at Fitch placed the lender's Individual Rating on Rating Watch Positive.

At the other end of the performance scale was telecom. The sector finished 1.0% higher, but its lack of weight in the broader market kept it from providing any real leadership. Nonetheless, its gains extended its 2.6% advance in the previous session.

Health care was also a solid performer. The sector closed with a 0.8% gain. Dow component Merck (MRK 36.22, -0.20) failed to participate in the advance, but announced to investors a new $3 billion share repurchase program.

Treasuries found support after a directionless start. In turn, the benchmark 10-year Note advanced 12 ticks, which lowered its yield to 3.30%. The advance followed results from an auction of 5-year Treasuries. The auction fetched a bid-to-cover ratio of 2.81, which is the highest bid-to-cover of the year for the maturity.

Trading volume on the NYSE failed to eclipse 1.0 billion shares for the second straight session. The low level of participation is expected to continue through this week, due to the observance of Thanksgiving on Thursday.

[BRIEFING.COM] Despite a mixed finish for commodities, the CRB Commodity Index has fallen a considerable 1.0% this session.

Oil was the primary drag on the CRB. Prices for crude fell 1.9% to $76.10 per barrel. Meanwhile, December contracts for natural gas made a fractional gain to close at $4.49 per contract, but prices for January contracts settled fractionally lower at $4.78 each.

Gold prices continue to garner support, though it was modest. The yellow metal made its way fractionally higher to $1166.80 per ounce, but it never returned to the all-time high of $1174 per ounce that was set in the previous session.

As for silver, prices for the precious metal fell 0.4% to $18.46 per ounce.

[BRIEFING.COM] Stocks continue to improve their position as they enter this session's final hour of trade. The upturn has taken the S&P 500 to a fractional gain, but the Dow remains stuck at the neutral line and the Nasdaq is still contending with a modest loss.

Energy has been a primary leader for the late move. The sector is currently up 0.4% after spending nearly the entire morning in negative territory. Energy's advance comes as oil well services and equipment stocks provide particular support to the sector; as such, Schlumberger (SLB 65.43, +0.80) and Haliburton (HAL 30.68. +0.24) are up handsomely. Their gains come even though oil prices settled pit trade nearly 2% lower at $76.10 per barrel.

[BRIEFING.COM] The major indices remain in negative territory, but have pared some losses as five of the ten sectors trade with gains.

Meanwhile, the dollar index (-0.1%) trades with a slight loss and crude prices slide 2.2%.

[BRIEFING.COM] Stocks are still stuck in negative territory as they contend with modest selling pressure. The relatively downbeat tone has held steady following the release of the minutes from the latest FOMC meeting.

The minutes from the November 4 FOMC meeting indicate that the Fed raised its GDP target for 2009 to the range -0.4% to -0.1% from the range -1.5% to -1.0%. The Fed also said the fall in the dollar has been orderly and reflects unwinding of safe haven demand during the financial recovery.

[BRIEFING.COM] Results from an auction of 5-year Treasuries attracted a bid-to-cover ratio of 2.81, which is the highest bid-to-cover of the year for this maturity. The benchmark 10-year Note has made its way a few ticks higher in the wake of the announcement; it now yields 3.34%, largely unchanged from earlier levels.

Meanwhile, stocks continue to trade with modest losses. Weakness is rather broad based, though. As such, decliners outnumber advancing issues by 2-to-1 in the S&P 500.

[BRIEFING.COM] An in-line third quarter GDP revision and an in-line quarterly report from Hewlett-Packard have failed to inspire participants. As a result, stocks have spent the entire session trading with modest losses. 

A better-than-expected consumer confidence reading of 49.5 for November helped stocks trim their losses in the early going, but that was short lived.

According to the second official reading of third quarter GDP, economic output increased 2.8% in the third quarter, as expected. Personal consumption was revised downward to reflect a 2.9% increase, which is not as strong as the 3.2% increase that was widely expected.

Dow component Hewlett-Packard (HPQ 50.06, -0.96) brought little surprise to participants by unveiling last evening quarterly earnings of $1.14 per share, which reflected its preannouncement. The company also affirmed an in-line outlook, which it had recently raised. Still, the stock has been contending with sellers for the entire session.

A fluctuating dollar has limited leadership in the broader market. The greenback had been fractionally lower in the early going, but has since bounced to trade with a slight gain. That move was especially problematic for materials stocks, which have also been hampered by declines among commodities prices amid the greenback's rebound. Materials stocks are currently down 0.9%.

Financials are also down 0.9%, though. The sector's weakness has hampered any of the broader market's attempts to pare losses.

[BRIEFING.COM] Materials stocks continue to grapple with stiff selling, which has taken the sector to a 0.9% loss. It is not alone there, though; financials are also down 0.9%. The financial sector's weakness stems from pressure against diversified banks (-0.8%), but especially from losses among diversified financial services stocks (-1.5%). Regional banks had been grappling with considerable pressure, but during recent action they managed to turn losses in excess of 1% into a more modest decline of 0.4%.

Meanwhile, telecom stocks have more than halved their gains. The sector is currently up 0.5% after sporting a gain of roughly 1.3% at its session high. Still, integrated telecom (+0.8%) continues to show strength.

[BRIEFING.COM] Dow component Hewlett-Packard (HPQ 50.06, -0.96) has been a steady laggard this entire session as a lack of positive surprises in its latest quarterly report has given way to selling pressure. The company announced last evening quarterly earnings of $1.14 per share, which is in-line with its preannouncement. The company also went on to affirm an in-line outlook, which had recently been raised.

Other earnings announcements that have received less coverage include the latest results from HJ Heinz (HNZ 43.18, +0.01), which posted better-than-expected adjusted earnings of $0.76 per share for its latest quarter. The company also raised its outlook for fiscal 2010.

Fellow food processing outfit Hormel (HRL 38.16, -0.73) topped the consensus earnings estimate by bringing in $0.77 per share and even issued upside guidance. The company went one more step by raising its annual dividend to $0.84 per share from $0.76 per share.

[BRIEFING.COM] After an upward move toward the neutral line, stocks have started to add back to their losses. The reversal comes as the U.S. dollar garners support and makes its way to a 0.2% gain against a basket of foreign currencies.

In addition to the broader market, the greenback's bounce has undercut commodities prices. That has the CRB Commodity Index down a sharp 1.1%. Amid the slide in commodities and the broader equity market, the materials sector has been left to grapple with particularly stiff pressure. The sector is now down 1.1%.

[BRIEFING.COM] The major indices have trimmed their losses so that the S&P 500 is less than two points away from positive territory. The upturn has been particularly kind to telecom stocks, which are now the best performing sector as they sport a 1.2% gain. That advance extends the sector's 2.6% gain from the previous session.

Still, with just 3%, telecom makes up the smallest share of the S&P 500's market weight. That has kept the sector from providing much in terms of actual leadership.

Meanwhile, financials are creating a considerable drag. The sector makes up some 14% of the S&P 500's market weight, second only to tech's 19% weighting, and is down 0.8%.

[BRIEFING.COM] Select commodities are seeing notable weakness and pushing to fresh lows as the US Dollar Index recently rose to new pit trading highs.

January crude oil fell just over $1 in recent trading on the strength in the dollar, pushing it to new session lows of $75.60 per barrel. Currently crude is trading just above those levels at $75.84 -1.72, down 2.2%.

Dec natural gas pushed into negative territory earlier this morning and hit fresh session lows just over an hour ago at $4.361. Natural gas is currently trading near lows at $4.381, down 2.1%.

Dec gold is back near the flat line after trading in positive territory this morning, while December silver is displaying much more weakness as it trades just above recently hit lwos of $18.33 per ounce. Currently, gold is trading 30 cents highs at $1165.00 per ounce, while silver is 1.2% lower at $18.39, just above lows of $18.33 per ounce.

[BRIEFING.COM] Stock futures have made an abrupt, though modest, rebound on better-than-expected consumer confidence data. Just ahead of "Black Friday," which immediately follows Thanksgiving and is considered one of the busiest days for retailers, the November Consumer Confidence Index came in at 49.5. That was better than the 47.5 that was widely expected, but down from the 48.7 that had been posted in October.

The numbers have helped prop up shares of retailers, which are up with a fractional gain in the face of broader market weakness.

Early movers: Trading up -- IWA +24.2%, SEED +11.8%, DSW +10.4%, FEED +9.6%, MDT +7.8%, CBRL +6.9%, ZLC +6.4%; Trading down -- WH -22.4%, NYNY -10.4%, ABIO -9.5%, ING -6.2%

[BRIEFING.COM] The health care sector and telecom sector are both up 0.4% and are the only two major sectors to sport gains. In turn, the weight of the other sectors' losses have taken the broader market to a moderate loss.

Meanwhile, the Dollar Index continues to trade with a fractional loss, which hasn't done much to support the broader market. It hasn't done much for commodities, either; in turn, the CRB Commodities Index is down 0.3%.