Closing Update for Friday, July 10

by: Midnight Trader

4:02 PM, Jul 10, 2009 --

  • DJIA down 36.88 (0.45%) to 8,146.29.
  • S&P 500 down 3.59 (0.41%) to 879.09.
  • Nasdaq up 3.48 (0.20%) to 1,756.03.


  • Hang Seng down 0.46%
  • Nikkei down 0.04%
  • FTSE down 0.76%


(-) CVX warns on Q2 production, margins.

(-) CIT down as FDIC reportedly unwilling to guarantee bond sale.

(-) PSMT misses with revenue.

(-) QGEN gets downgrade.

(-,+) DELL added to Goldman's Conviction Buy list, but economic uncertainty weighs, struggles to hold gains.


(+) AIG seeks government opinion on paying more bonuses.

(+) YHOO gets analyst upgrade.

(+) ENTU gets amended offer.


Traders showed little enthusiasm in Friday's regular session, with buyers sidelined by worse-than-expected consumer confidence data, another drop in oil, and worries over whether the upcoming earnings season will offer signs companies are digging out from a deep recession.

Earnings season begins in earnest next week with several sector leaders in technology and banking posting quarterly numbers. On Tuesday, Intel (NASDAQ:INTC) and Goldman Sachs (NYSE:GS) are due with results. Xilinx (NASDAQ:XLNX) issues its numbers on Wednesday, while Google (NASDAQ:GOOG), Harley-Davidson (NYSE:HOG), IBM (NYSE:IBM), JPMorgan Chase (NYSE:JPM) and Nokia (NYSE:NOK) are out with financials on Thursday. General Electric (NYSE:GE), Bank of America (NYSE:BAC), and Citigroup (NYSE:C) report results Friday morning.

On the economic front, PPI and retail sales are set to be released on Tuesday, while CPI and crude inventories are due on Wednesday. On Thursday, traders will get a look at initial claims, and on Friday, building permits are set to be reported.

In today's market, the tech-heavy Nasdaq swung between positive and negative territory, generating more support than the DJIA and S&P 500 on the back of positive analyst opinions on Yahoo (NASDAQ:YHOO) and Dell (NASDAQ:DELL).

Elsewhere, a preliminary reading for July's Reuters/University of Michigan survey of consumer sentiment unnerved investors on top of other weak economic data. The index, a key indicator of consumer spending, slumped below economists' estimates, falling to 64.6 from 70.8 in June. Economists were expecting consumer sentiment to decline slightly to 70.5, according to a Reuters survey.

The market is concerned that consumers, whose spending helps drive the economy, are still pulling back, reflected in weak retail sales reports disclosed on Thursday.

Chevron (NYSE:CVX) was the latest major corporation to warn about Q2 earnings, raising concerns that the second half of the year will not see much improvement in the economy. Chevron said Q2 earnings would be hit by a sharp decline in U.S. refining margins and that any benefits from higher oil prices would be largely offset by a weaker dollar.

Crude settled just lower on the day, down 0.02 to 59.89, up from an intraday low of 58.72 on the New York Mercantile Exchange.