Closing Update for Thursday, August 6

4:18 PM, Aug 6, 2009 --

• NYSE down 40.5 (0.6%) to 6,517.67.
• DJIA down 24.7 (0.3%) to 9,256.
• S&P 500 down 5.6 (0.6%) to 997.08.
• Nasdaq down 19.9 (1%) to 1,973.

GLOBAL SENTIMENT

• Hang Seng up 1.97%
• Nikkei up 1.32%
• FTSE up 0.87%

UPSIDE MOVERS

(+) FNM, FRE up sharply amid reports of chance for new government entity.

(+) AXP gets analyst upgrade.

(+) CSCO turns higher, reversing early declines after earnings beat, disappointing sales outlook.

(+) FUQI tops Q2 expectations.

(+) KSS July sales prompt raised Q2 guidance.

(+) JCP sees narrower Q2 loss than Street view.

(+) WEN oks buyback, meets with earnings.

(+) AEO raises Q2 outlook after issuing July sales.

(+) GPS raises guidance.

(+) MBI maintains extended-hours gain after surprisingly strong earnings results issued late Wednesday.

(+) RTK gets ok for new use of synthetic jet fuel.

(+) AIG continues Wednesday gains; Greenberg settles with SEC.

(+) CSIQ beats with Q2 results.

(+) CMCSA beats with Q2 results.

(+) TGT turns up despite July same-store sales falling 6.5%.

DOWNSIDE MOVERS

(-) JPM turns lower despite analyst upgrade.

(-) STEC prices shares.

(-) SIRI meets with loss.

(-) COST July same-store sales down 7%.

MARKET DIRECTION

Stocks gave up opening gains in midday trading after disappointing retail sales eroded early strength derived from a larger-than-expected drop in weekly jobless claims.

First-time filings for state unemployment benefits declined by 38,000 to a seasonally adjusted 550,000 last week. That's much lower than analysts' estimates of 580,000, according to a survey by Thomson Reuters. The four-week average of claims, which smooths out fluctuations, dropped to 555,250, its lowest level since late January.

Meanwhile, the number of people who continued to collect regular benefits rose by 69,000 to a seasonally adjusted 6.31 million the prior week, the Labor Department reported.

Investors originally took the jobless data as reason to push stocks higher, but that enthusiasm disappeared as the reality of mixed retail sales sank in. Many discount stores, which have held up in the recession, reported lower results. Costco Wholesale (COST) reported a 2% sales drop in the U.S. (excluding gasoline), and Target (TGT) posted a worse-than-expected 6.5% decline.

Financial shares, however, continued to gain, initially supported by the Bank of England's more aggressive action to stimulate financial markets with an additional asset purchase. The Bank of England left interest rates alone as expected but came through with a more aggressive action to buy assets. BOE will buy 50 billion pounds or $84 billion, about double what analysts expected.

Fannie Mae (FNM) and Freddie Mac (FRE) were among the most actively traded stocks, up sharply. The U.S. government is reportedly considering several options for the firms, including folding the companies into a new federal government entity. Also being considered, winding down the companies' operations and merging them into a federal agency. Several media firms are reporting the details following a Washington Post piece on the government's plans.

MBIA (MBI) was rallying after it posted a surprise Q2 profit late Wednesday.

And American Express (AXP) got an analyst upgrade.

In other company news, Cisco (CSCO) recovered in afternoon trading after an extended-hours decline and lower start to today's regular trading. The company beat earnings expectations, met on revenue, but guided for a year-over-year decline in Q1 revenue.

Crude oil ends down $0.03 at $71.94 a barrel.

Comments

[jmsithy:]

So far Siri is on track going downward direction

Aug 06 04:36 PM

[Hawk180:]

Well it is the end of the week on an upside rally. I expect some profit taking. However, the two big drops earlier in the day pretty much got absorbed with what I suspect as retail investors buying in. I expect a little more loss and profit taking tomorrow, then a steady rise next week. Maybe flat for a few days, but I don't expect a huge drop.

Aug 06 04:54 PM

[jmsithy:]

me either that is why i am waiting til next week sold at .55 buying back in high at .48/.47 low at .44


On Aug 06 04:54 PM Hawk180 wrote:

> Well it is the end of the week on an upside rally. I expect some
> profit taking. However, the two big drops earlier in the day pretty
> much got absorbed with what I suspect as retail investors buying
> in. I expect a little more loss and profit taking tomorrow, then
> a steady rise next week. Maybe flat for a few days, but I don't expect
> a huge drop.

Aug 06 04:56 PM

[R A F:]

Just firmly based consolidation, digesting the preceding move above .50. SIRI is now trading from dominant technical strength and tone will continue to reflect positive expectations going into the next significant release of data and guidance (3rd Qtr. - to be released in November). Intervening action will remain solidly based -with aggressive underlying support and resistance tending to await rallies to progressively higher levels before increasing significantly. The days of manipulative trading - based upon naked shorting and flash trading abuses - are coming to an end. Mild profit taking along the way should be anticipated - similar to the type of action seen currently - but all of this is occurring at firmly based levels. Potential remains projected toward 1.00+ over the next six months to one year - and significantly higher longer term. All of this suggests any pullbacks along the way will be viewed as buying opportunities and current holdiers of long positions are unlikely to give up anticipated upside potential.

Aug 06 06:16 PM

[jmsithy:]

good theory I hope you are right but I have to say this will be going below .50 by next week sorry


On Aug 06 06:16 PM R A F wrote:

> Just firmly based consolidation, digesting the preceding move above
> .50. SIRI is now trading from dominant technical strength and tone
> will continue to reflect positive expectations going into the next
> significant release of data and guidance (3rd Qtr. - to be released
> in November). Intervening action will remain solidly based -with
> aggressive underlying support and resistance tending to await rallies
> to progressively higher levels before increasing significantly. The
> days of manipulative trading - based upon naked shorting and flash
> trading abuses - are coming to an end. Mild profit taking along the
> way should be anticipated - similar to the type of action seen currently
> - but all of this is occurring at firmly based levels. Potential
> remains projected toward 1.00+ over the next six months to one year
> - and significantly higher longer term. All of this suggests any
> pullbacks along the way will be viewed as buying opportunities and
> current holdiers of long positions are unlikely to give up anticipated
> upside potential.

Aug 06 07:51 PM

[jmsithy:]

well there it is actually hit below .50 sooner than I thought .45 /.44. /.43 Here I come by next week


On Aug 06 06:16 PM R A F wrote:

> Just firmly based consolidation, digesting the preceding move above
> .50. SIRI is now trading from dominant technical strength and tone
> will continue to reflect positive expectations going into the next
> significant release of data and guidance (3rd Qtr. - to be released
> in November). Intervening action will remain solidly based -with
> aggressive underlying support and resistance tending to await rallies
> to progressively higher levels before increasing significantly. The
> days of manipulative trading - based upon naked shorting and flash
> trading abuses - are coming to an end. Mild profit taking along the
> way should be anticipated - similar to the type of action seen currently
> - but all of this is occurring at firmly based levels. Potential
> remains projected toward 1.00+ over the next six months to one year
> - and significantly higher longer term. All of this suggests any
> pullbacks along the way will be viewed as buying opportunities and
> current holdiers of long positions are unlikely to give up anticipated
> upside potential.

Aug 07 10:14 AM

[jmsithy:]

Gee I guess the insiders are giving themselves bonus almost every month

Frear David J
Chief Financial Officer Sale 191,260 0.47 – 0.51 1,793,370 $92.3 K
Meyer James E
Officer Sale 273,230 0.47 – 0.51 2,583,330 $131.9 K
Greenstein Scott An...
President Sale 232,250 0.47 – 0.51 2,616,500 $112.1 K

Aug 07 12:13 PM