Friday's Closing Update

4:16 PM, Jun 26, 2009 --

• NYSE down 4.08 (0.1%) to 5,906.95.
• DJIA down 34 (0.4%) to 8,438.
• S&P 500 down 1.36 (0.2%) to 918.90.
• Nasdaq up 8.6 (0.5%) to 1,838.

GLOBAL SENTIMENT

• Hang Seng up 1.78%
• Nikkei up 0.83%
• FTSE down 0.45%

DOWNSIDE MOVERS

(-) KBH gives up early pre-market gain; reports loss, revenues beat.

(-) POT lowers guidance.

(-) UBS warns for Q2.

(-) CEP suspends distribution to holders, reviews borrowing base.

(-) LEA continues drop on speculated bankruptcy filing.

(-) BA down as Qantas delays order.

UPSIDE MOVERS

(+) VRNM surges on positive JV news.

(+) PALM saw continued upside after earnings beat.

(+) TIBX saw continued upside after earnings beat.

(+) CPD down, then recovers on FDA seizure news.

MARKET DIRECTION

Stocks end mixed for the session. The major averages end mostly lower for a second straight the week.

The Dow Jones Industrial Average ends the week down 1.2%. The S&P 500 slips 0.3% for the week, while the Nasdaq manages a slender 0.6% advance in the same period.

Declines for energy shares, as oil dropped and a vote on the energy bill looms, pushed down the broader market Friday.

Crude finished below $70 a barrel and reports its second straight weekly decline. August ended down $1.07, or 1.5%, at $69.16 a barrel. It shed 1.2% for the week though remains up over 3% so far for the month of June.

Stocks also fell as a report showed consumers saving their stimulus-injected incomes, at the expense of reviving the struggling economy.

The Commerce Department set the tone for early trading after reporting that the savings rate rose to 6.9%, a 15-year high, while spending rose by a modest 0.3%. The high savings rate suggests consumers are not spending money, which makes up about 70% of economic activity.

Other economic news proved more encouraging, the Reuters/University of Michigan Surveys of Consumers, released mid-morning, showed that confidence for June was at 70.8. The reading compared with 68.7 in May and equaled February 2008's reading. The latest figure topped economists' median forecast for a reading of 69.0, according to a Reuters poll. But the index of consumer expectations, a forward looking measure, declined.

The tech-heavy Nasdaq Composite clinged to a narrow gain late. Palm (PALM) continued to lift tech shares after its earnings beat.

Palm (PALM) hit a 52-week high of $16.59. The big move in the stock comes after Palm reported better-than-expected Q4 results yesterday after the bell. The company reported a wider loss of $91.5 million, or 78 cents a share, compared with a $41.1 million loss last year. Ex items, the loss was 40 cents a share, compared with a loss of 62 cents per sharel according to a consensus poll of analysts by Thomson Reuters.

Investors have been drawn to the stock because of the launch of its new Pre smart phone, considered a solid contender for Apple Inc.'s (AAPL) iPhone. But Barron's reported that much of that news is already priced into the stock. The report called the stock runup over-done.

Comments

[Market Sniper:]

Of note. Based on cash S and P, the market is unchanged for this week. Also, unchanged since May 6th...almost 2 months and we have basically gone no where. Also, today's trading range was less than $1 on SPY. Can't remember when it was that low. VIX is now at a level not seen since Sept. 12th (also a Friday) which was the weekend of the Lehman bankrupcy. Does any of that mean anything? Who knows but I do not think I would belong in here.

Jun 26 09:34 PM

[Moon Kil Woong:]

We have gone somewhere. The market is about to be consumed live by program traders. When it hits 80% of the market should we just call them regular trades? Maybe we can watch computer programs battle it out like a financial form of Transformers. We can nickname Citibanks traders as the one with the gold tooth which doesn't have a lick of education. The gold tooth represents their nice pay raise despite their performance. Such a sight would be more nauseating than watching 3 robots do contortions while transforming as the director films it to a 360 degree rotational pan.

Jun 26 09:59 PM

[Market Sniper:]

Yes, Moon. But we just ride the wave. Just extracting capital from these markets. As traders, that is what we do. Been a great ride up, now we going to ride it down.


On Jun 26 09:59 PM Moon Kil Woong wrote:

> We have gone somewhere. The market is about to be consumed live by
> program traders. When it hits 80% of the market should we just call
> them regular trades? Maybe we can watch computer programs battle
> it out like a financial form of Transformers. We can nickname Citibanks
> traders as the one with the gold tooth which doesn't have a lick
> of education. The gold tooth represents their nice pay raise despite
> their performance. Such a sight would be more nauseating than watching
> 3 robots do contortions while transforming as the director films
> it to a 360 degree rotational pan.

Jun 26 10:27 PM

[wendling_r:]

The market is being manipulated by the specialist system in order to accumulate stock before their final push higher into September October before the sharp short decline I am anticipating takes place. To read more about how all of this is being setup click on my website attached to this post and then click on the free reports sections. Go to the bottom of the reports page and read my latest report on the DJIA.

It may open your eyes as to how you and the average investor are being played by these individuals. It costs you nothing except the amount of time it takes you to read the information and any other related articles you find interesting on the site.

Richard W. Wendling

Jun 27 08:39 AM

[H. T. Love:]

In a couple of days, we get to start watching to see if J. S. Kim was right here seekingalpha.com/artic...

In there, "However, given that one of the biggest beneficiaries of this crisis, JP Morgan, has just announced a secondary offering that may not be completed until the end of June, we can now be assured that the markets will not experience an extended correction until JP Morgan has completed its secondary offering".

I'm betting he's right and am mostly cash, except for small positions in a couple of small-caps and some in a gold miner.

Is it just me or have we seen a cessation of the last minute huge buying with price spikes over the last few days?

If it's not just me, the PTP may have stopped acting not that all the banks have completed their offerings.

HardToLove


On Jun 26 10:27 PM Market Sniper wrote:

> Yes, Moon. But we just ride the wave. Just extracting capital from
> these markets. As traders, that is what we do. Been a great ride
> up, now we going to ride it down.

Jun 27 08:48 AM

[H. T. Love:]

Sheesh! typed "not", meant "now". Should read

... acting now that all the banks have completed their offerings

Jun 27 08:50 AM

[MadScientist:]

I have to agree with much of the commentary here - the market is currently for traders, not investors. Anyone buying for the long-term is better off waiting until this equities bubble pops. Then they can move back in and get better values for their money.

For now I am willing to trade long or short, as the prevailing trend dictates.

Jun 27 09:58 AM

[orionoir:]

just clanging on your title, i wonder if there's much research correlating market performance to weather in new york, seems to me that sunny days tend toward upside euphoria.

Jun 27 10:10 AM

[sheople:]

It never ceases to amaze me. To wit, the author's quote, "Stocks also fell as a report showed consumers saving their stimulus-injected incomes, at the expense of reviving the struggling economy." The author's statement implies that our economy (down to running 70% on what we spend) would revive if only people would spend their money. Somebody please relieve this bursting pressure in my head.

Jun 27 12:17 PM

[Deepv:]

equities bubble popping. err that happened in 2000 buddy.

Jun 27 06:54 PM

[Market Sniper:]

Good comments all. Personally see a retracement unil July option expiration, then a move up into the fall. Possibly to a new recovery high, S&P 1050ish...then the huge down move. Watch for the first Hindenberg Omen followed by a confirmation (another Hindenberg Omen). At that point, you want to max out sort everything in sight. Just one opinion and there are many possible scenarios. At this particular point, just think that is the highest probability.

Jun 27 08:14 PM

[Deepv:]

you macro hyper trading guys are foolish snake oil salesman. your day in the sun has gone and past. buy great companies trading at attractive prices. play casino at the wynn.

Jun 28 02:17 PM

[Market Sniper:]

We are not selling anything, bro. We trade with an edge. We extract capital from markets on a regular basis. Big difference compared to Wynn Casino. You trade with an edge, you are the house. Not really a gamble, you hold overnite a lot of positions, YOUR the gambler! LOL


On Jun 28 02:17 PM Deepv wrote:

> you macro hyper trading guys are foolish snake oil salesman. your
> day in the sun has gone and past. buy great companies trading at
> attractive prices. play casino at the wynn.

Jun 28 08:40 PM

[Delojozafado:]

"VRNM surges on positive JV news"?????? What does this mean? JV Juinor Varsity? June Voltage? Joint Venture perhaps? then Joint ventured with whom?

Jul 11 01:46 PM