Closing Update for Thursday, July 30: Firming Up

4:14 PM, Jul 30, 2009 --

• NYSE up 103.75 (1.7%) to 6,384.32.
• DJIA up 83.7 (0.9%) to 9,154.
• S&P 500 up 11.6 (1.2%) to 986.75.
• Nasdaq up 16.5 (0.8%) to 1,984.

GLOBAL SENTIMENT

• Hang Seng up 0.49%
• Nikkei up 0.51%
• FTSE up 1.85%

UPSIDE MOVERS

(+) GE gets analyst upgrade.

(+) CIT gets amended credit agreement.

(+) VRNM sees continued reaction to JV for cellulostic ethanol.

(+) MOT beats with Q2 earnings and guides above Street.

(+) HIG sees continued gain after earnings decline, but beat Street.

(+) MA beats with Q2.

(+) DOW swings to loss.

DOWNSIDE MOVERS

(-) AXL gets report waiver extension.

(-) XOM misses with results.

(-) AKAM down in continued reaction to evening earnings miss.

(-) SYMC down in continued reaction to evening earnings, guidance miss.

(-) LVLT reports loss, misses with sales.

MARKET DIRECTION

Stocks end firmer but well off session highs following a late-day pullback. Health care and some tech stocks were the day's laggards and contributed to the trim for otherwise substantial gains today.

Stocks jumped out of the gate with Nasdaq Composite Index topping 2,000 and the S&P 500 trading just off the pivotal 1,000-threshold -- both marking the best performance of the year. Investors reacted to a string of positive earnings reports. A surprise drop in unemployment claims and an indication that ongoing benefit collections are slowing fueled the bullish fire.

Street-topping performance by Motorola (MOT) and and MasterCard (MA) combined with a Goldman Sachs upgrade of General Electric (GE) were interpreted as positive signs the economy is recovering. Insurance broker AON Corp (AOC) and industrial conglomerate Tyco International (TYC) were among companies reporting better-than-expected results before the bell this morning.

General Electric (GE), an industry bellwether, provided some lift after Goldman Sachs upgraded its stock to Buy. Goldman noted House Financial Services Committee Chairman Barney Frank's comments in an interview with Bloomberg late yesterday. Frank suggested that the spin off of GE Capital would likely not be mandated by regulatory reform proposals.

Economic data also helped to set the tone early.

The number of Americans continuing to collect unemployment benefits unexpectedly fell last week to 6.2 million. Economists polled by Thomson Reuters had expected that figure to rise to 6.3 million from 6.23 million last week.

Stocks are at their best levels of 2009 after pausing a rally earlier in the week to contemplate economic and earnings strength. But with a few exceptions, corporate announcements have continued to surprise to the upside. A report showing a slowing rate for continuous jobless benefits claims also lifted investor sentiment.

Crude oil rebounds from a drubbing Wednesday, putting up its best one-day performance in more than three months. September futures close up 5.6% to $66.92 a barrel.

Comments

[predictorma...:]

Invisible hand again. Market was looking too good to be true earlier in the day and so they had to take it down a little (want the rise to be gradual and not seem too overbought). Also if S&P hit 1000 too quick it would set off alarms.

GS upgrades GE is a catalyst. Big whoop.

Better than low expectations. Big whoop again.

Tech companies say business is crappy. Didn't they get the message that tech is going to be the market leader?

I am long and this market is going up through the summer.

It's all about the sentiment (plus a little help!). No Fundamentals.

Jul 30 04:58 PM

[thotdoc:]

It seems so about sentiment. Other than that, it's confusing. Japan's recession deepening and their market is up. Most of the earnings surprises are off lowered expectations, the price of oil goes up a lot in the face of oil company losses.

Make as much as you can on stock you may have to hold in a quick downdraft, ie stock you want to own under most circumstances. Keep a lot of cash in reserve. And, don't try to apply rationality, it will only confuse you.

Wouldn't it be something if it just went up with no pullback that we are all waiting for. That is, until we piled in.

It's been said before, but "The market acts to hurt the most people when it turns." So, the most people aren't in a position to be hurt yet.

Jul 30 08:18 PM

[Greyowl:]

The comments at SA have been bearish, but for the first time the first bearish comment got significant negative score.

I have used SA bearish sentiment as a contrarian signal and it worked well so far. If it turns bullish, should I start selling and shorting?

Jul 30 09:19 PM

[TCK:]

At some point the economic reports will not capable of being "spun" anymore.

So far the market has rallied on unemployement only rising form 8% to 10%. Backward indicator or not this does not seem like the beginning of a recovery.

Jul 31 09:00 AM

[WhoisJohnGalt:]

I can't wait for the bulls to jump off the plane.

Jul 31 10:05 AM

[Perry B:]

wall street is doing what wall street has always done. Put back the money they made on the downturn they created. As the above comments suggest; Let the retail traders pile in; Then pump and dump on them. Meanwhile in my opinion, this bear rally is about wall street punishing those who do not play thier way. While rewarding those who do. Bring back the uptick rule. Or going long is still a crap shoot. With retail traders getting burnt.

Aug 04 03:20 PM

[Jett:]

Andys promised, here's Andy's favorite biofuel play: Verenium (Nasdaq: VRNM).

Andy uncovered Verenium in the June issue of his Government-Driven Investing advisory. Just wait until you see what he dug up in his July issue! This investment could make anyone who listens filthy rich.

The company owns a unique living compound with huge potential in the production of cellulosic ethanol. (Yes, the same market where Verenium is a leader.) Remember, the cellulose space is looking at +15,900% government-mandated growth ahead.

But even that immense market isn't big enough for this company's CEO. He's looking at more than a hundred uses for his patented "C-1 fungus biofactory." C-1 gives him a serious competitive advantage: a patented living organism that no one else can duplicate.

It can help thousands of companies make better bread, better beer, better cosmetics, better drugs, and better gasoline... and only this company has it. He's already licensed this game-changing technology to two major energy producers. Biochemical firm Codexis just paid $10 million to "borrow" this miracle compound.

Who knows how high this stock is headed? I honestly don't. But it's so cheap now that making 100x your
As promised, here's Andy's favorite biofuel play: Verenium (Nasdaq: VRNM).

Andy uncovered Verenium in the June issue of his Government-Driven Investing advisory. Just wait until you see what he dug up in his July issue! This investment could make anyone who listens filthy rich.

The company owns a unique living compound with huge potential in the production of cellulosic ethanol. (Yes, the same market where Verenium is a leader.) Remember, the cellulose space is looking at +15,900% government-mandated growth ahead.

But even that immense market isn't big enough for this company's CEO. He's looking at more than a hundred uses for his patented "C-1 fungus biofactory." C-1 gives him a serious competitive advantage: a patented living organism that no one else can duplicate.

It can help thousands of companies make better bread, better beer, better cosmetics, better drugs, and better gasoline... and only this company has it. He's already licensed this game-changing technology to two major energy producers. Biochemical firm Codexis just paid $10 million to "borrow" this miracle compound.

Who knows how high this stock is headed? I honestly don't. But it's so cheap now that making 100x your money is possible once the technology goes mainstream. It's already a key part of a market forced by law to grow +15,900%.

Do yourself a favor and get the rest of the story here.

P.S. Don't take my word for it. Here's what Andy had to say...

I just got off the phone with one of the most inspiring businessmen I've ever met. He told me a fascinating story involving a wrestler from Iowa, Russian scientists, WWII soldiers and something called "C-1 fungus."

And it all leads to the real possibility of "biofactories" that can turn crops grown anywhere on the planet into all the energy we'll ever want -- eliminating the need for petroleum whatsoever.

I honestly think this guy is going to change the world.

If I'm right, he's going to make bucketloads of money for anyone who comes along for the ride. And that definitely includes me. You're invited too.

Do yourself a favor and get the rest of the story here.

Do yourself a favor and get the rest of the story here.
P.S. Don't take my word for it. Here's what Andy had to say...

I just got off the phone with one of the most inspiring businessmen I've ever met. He told me a fascinating story involving a wrestler from Iowa, Russian scientists, WWII soldiers and something called "C-1 fungus."

And it all leads to the real possibility of "biofactories" that can turn crops grown anywhere on the planet into all the energy we'll ever want -- eliminating the need for petroleum whatsoever.

I honestly think this guy is going to change the world

Aug 25 05:21 PM

[Jett:]

Andys promised, here's Andy's favorite biofuel play: Verenium (Nasdaq: VRNM).

Andy uncovered Verenium in the June issue of his Government-Driven Investing advisory. Just wait until you see what he dug up in his July issue! This investment could make anyone who listens filthy rich.

The company owns a unique living compound with huge potential in the production of cellulosic ethanol. (Yes, the same market where Verenium is a leader.) Remember, the cellulose space is looking at +15,900% government-mandated growth ahead.

But even that immense market isn't big enough for this company's CEO. He's looking at more than a hundred uses for his patented "C-1 fungus biofactory." C-1 gives him a serious competitive advantage: a patented living organism that no one else can duplicate.

It can help thousands of companies make better bread, better beer, better cosmetics, better drugs, and better gasoline... and only this company has it. He's already licensed this game-changing technology to two major energy producers. Biochemical firm Codexis just paid $10 million to "borrow" this miracle compound.

Who knows how high this stock is headed? I honestly don't. But it's so cheap now that making 100x your
As promised, here's Andy's favorite biofuel play: Verenium (Nasdaq: VRNM).

Andy uncovered Verenium in the June issue of his Government-Driven Investing advisory. Just wait until you see what he dug up in his July issue! This investment could make anyone who listens filthy rich.

The company owns a unique living compound with huge potential in the production of cellulosic ethanol. (Yes, the same market where Verenium is a leader.) Remember, the cellulose space is looking at +15,900% government-mandated growth ahead.

But even that immense market isn't big enough for this company's CEO. He's looking at more than a hundred uses for his patented "C-1 fungus biofactory." C-1 gives him a serious competitive advantage: a patented living organism that no one else can duplicate.

It can help thousands of companies make better bread, better beer, better cosmetics, better drugs, and better gasoline... and only this company has it. He's already licensed this game-changing technology to two major energy producers. Biochemical firm Codexis just paid $10 million to "borrow" this miracle compound.

Who knows how high this stock is headed? I honestly don't. But it's so cheap now that making 100x your money is possible once the technology goes mainstream. It's already a key part of a market forced by law to grow +15,900%.

Do yourself a favor and get the rest of the story here.

P.S. Don't take my word for it. Here's what Andy had to say...

I just got off the phone with one of the most inspiring businessmen I've ever met. He told me a fascinating story involving a wrestler from Iowa, Russian scientists, WWII soldiers and something called "C-1 fungus."

And it all leads to the real possibility of "biofactories" that can turn crops grown anywhere on the planet into all the energy we'll ever want -- eliminating the need for petroleum whatsoever.

I honestly think this guy is going to change the world.

If I'm right, he's going to make bucketloads of money for anyone who comes along for the ride. And that definitely includes me. You're invited too.

Do yourself a favor and get the rest of the story here.

Do yourself a favor and get the rest of the story here.
P.S. Don't take my word for it. Here's what Andy had to say...

I just got off the phone with one of the most inspiring businessmen I've ever met. He told me a fascinating story involving a wrestler from Iowa, Russian scientists, WWII soldiers and something called "C-1 fungus."

And it all leads to the real possibility of "biofactories" that can turn crops grown anywhere on the planet into all the energy we'll ever want -- eliminating the need for petroleum whatsoever.

I honestly think this guy is going to change the world

Aug 25 05:22 PM