Closing Update for Wednesday July 8

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 |  Includes: AA, AMGN, ARYX, ASNA, DFS, DIA, ERIC, FDO, FSLR, GOOG, MKTSQ, MSCS, QQQ, RT, SAP, SPY, STM, TSCO
by: Midnight Trader

4:22 PM, Jul 8, 2009 --

  • NYSE down 30 (0.5%) to 5,624.57.
  • DJIA up 14.8 (0.2%) to 8,178.
  • S&P 500 down 1.5 (0.2%) to 879.56.
  • Nasdaq up 1 (0.1%) to 1,747.


GLOBAL SENTIMENT

  • Hang Seng down 0.79%
  • Nikkei down 2.35%
  • FTSE down 1.12%


DOWNSIDE MOVERS

(-) ARYX continued deep drop on drug study miss.

(-) AA traded mostly lower after mixed start ahead of expected loss.

(-) RODM reverses early gain after saying it sees Q2 investment banking revenue up compared to Q1.

(-) DFS sheds gains after pricing shares; analyst said shares may fall near-term but leaves rating as is.

(-) RT loses post-earnings gain.

UPSIDE MOVERS

(+) AMGN continued strong upside reaction to positive Denosumab results.

(+) CHRS got positive coverage from Jim Cramer.

(+) MSCS sold to Symphony Technology for $7.63/share cash.

(+) STM gets upgrade.

(+) TSCO expects earnings above expectations.

(+) FDO beat with earnings and guides higher.

(+) FSLR gets upgrade.

(+) SAP gets upgrade.

(+) GOOG plans operating system to rival Microsoft (NASDAQ:MSFT). MSFT reverses early decline.

(+) ERIC inked Chinese pact.

MARKET DIRECTION


Late-day momentum pushed the major averages into the black very late in today's session. The DJIA is up 0.2% and the Nasdaq Composite is up 0.1%. The S&P 500 is down 0.2%. Stocks began the day and ended it mostly on higher ground but had languished in the red for much of the day. The late-day recovery came as Treasury offered more details on plans to clear more toxic assets from bank balance sheets and as battered crude prices looked to stabilize in early after-hours action. Crude at last check is up $0.06 at $60.20 in electronic trading.

Stocks opened higher but fell into the red around mid-morning. A mixed economic outlook from the International Monetary Fund and falling commodity prices undercut stocks. The IMF added to growing doubts that a recovery would take place this year. Another tumble in oil prices slashed energy shares and reflected concerns that the economy will remain weak.

World leaders agreed that the global economy is too shaky to begin rolling back massive fiscal stimulus plans right now, according to a draft of a G-8 statement obtained by The Associated Press. The leaders "note some signs of stabilization" but continued to stress the difficult outlook instead of concerns over debt and high spending.

Energy shares posted a late-day recovery with investors looking to electronic trading after regular-session trading left the August contract down another 4% and at a seven-week-low near $60. Crude has fallen over six sessions.

Demand appears to be the focus though inventory data was issued today.
Crude inventories fell by 2.9 million barrels in the week ended July 3, the Energy Information Administration reported. Analysts surveyed by Platts had expected a decline of 3.2 million barrels.

Gasoline inventories rose 1.9 million barrels, while distillate stockpiles, which include diesel and heating oil, increased 3.7 million barrels. The analysts surveyed by Platts had expected a buildup of 900,000 in gasoline and 1.7 million barrels in distillate.