Closing Update for Wednesday, September 2: Slide Stretches to Day 4

by: Midnight Trader

4:16 PM, Sep 2, 2009 --

  • NYSE down 13 (0.2%) to 6,474.78.
  • DJIA down 29.9 (0.3%) to 9,281
  • S&P 500 down 3.3 (0.3%) to 994.75.
  • Nasdaq down 1.82 (0.1%) to 1,967.


  • Hang Seng down 1.76%
  • Nikkei down 2.37%
  • FTSE down 0.04%


(-) Raser (RZ) says loan application denied by DOE.

(-) FNM, FRE down after report hits that industry group wants mortgage cos. split into smaller, private operations.

(-) DHT (NYSE:DHT) revenue meets, decides not to declare dividend.

(-) Alcatel-Lucent (ALU) launches bond offering.

(-) Joy Global (JOYG) tops with Q3 results, raises guidance.

(-) Tower Semi (NASDAQ:TSEM) hikes revenue view.


(+) FLOW-OLD prices offering.

(+) Vonage (NYSE:VG) conducting a beta test for the much talked about iPhone and iPod application.

(+) Las Vegas Sands (NYSE:LVS) gets upgrade, secures capital through exchangeable bond sale.

(+) Blockbuster (BBI) reduces credit agreement with former parent Viacom.

(+) VeriFone (NYSE:PAY) settles with SEC over false financial statements.

(+) Peregrine Pharmaceuticals (NASDAQ:PPHM) reports positive Phase II data for Cotara in brain cancer.

(+) BP announces big discovery in Gulf of Mexico.


Stocks declined anew in the final minutes of trading, landing the broad averages in negative territory for a fourth straight day. Stocks have fallen since carving out fresh highs for the year early last week. All averages finish down only around 0.3% after a narrow trading range ahead of Friday's jobs report and the long holiday weekend.

The Nasdaq had edged into positive ground in afternoon trading. Stocks improved after Federal Reserve meeting minutes revealed that members were much more optimistic about the end of the recession in August than in June. Many Fed officials saw "smaller downside risks," the documents stated.

But holding sway this morning was a report from ADP and Macroeconomic Advisers that said private employers cut 298,000 jobs in August, fewer than a revised 360,000 jobs lost in July, but more than the 250,000 mean forecast in a Reuters poll. The National Employment Report usually presages the closely-watched monthly government figures on employment, due on Friday.

A separate report released earlier this morning by outplacement firm Challenger, Gray & Christmas Inc. showed that the number of firms planning layoffs fell 21% in August.

Separately, the Labor Department said that productivity rose at an annual rate of 6.6% in the April-June quarter, the largest advance since the summer of 2003. Economists expected an increase of 6.4%, matching the government's initial estimate last month. Labor costs fell by the most in nine years

Crude closes unchanged at $68.05 a barrel. Gold hits a three-month high, up $22 or 2.3% at $978.50 an ounce as the dollar weakened.

Crude inventories fell by 400,000 barrels during the week ended Aug. 28, far less than economists' estimates for a 1.9 million barrel drop, adding further weight to the week-long slide in oil prices.

The Energy Information Administration also reported that gasoline inventories fell by 3 million barrels and distillate stockpiles rose by 1.2 million barrels. Analysts expected a drop of 1.4 million barrels in gasoline and a decline of 600,000 barrels in distillate stockpiles, according to a Platts' survey.

The American Petroleum Institute reported late Tuesday that U.S. crude stockpiles fell by 3.2 million barrels for the week ended Aug. 28. Analysts surveyed by Platts expected a decline of 1.9 million barrels. API uses a different measure to gauge crude supplies.

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