Closing Update for Friday, Sept. 4: Mixed Picture

4:22 PM, Sep 4, 2009 --

• DJIA up 96.66 (1.0%) to 9,441.27.
• S&P 500 up 13.16 (1.3%) to 1,016.40.
• Nasdaq up 35.58 (1.79%) to 2,018.78.

GLOBAL SENTIMENT

• Hang Seng up 2.82%
• Nikkei down 0.27%
• FTSE up 1.1%

UPSIDE MOVERS

(+) FNM, FRE confirm they have regained compliance with NYSE listing standards.

(+) LTX-Credence (LTXC) shares upgraded by Needham.

(+) Human Genome Sciences (HGSI) index chosen as primary endpoint in trials.

(+) Tierone (TONE) will sell some assets to Great Western Bank

(+) Ulta Cosmetics (ULTA) Q2 results beat views.

(+) ArcSight (ARST) earnings beat estimates by a penny.

DOWNSIDE

(-) Abercrombie & Fitch (ANF) downgraded by Citigroup.

(-) H&R Block (HRB) Q1 loss wider than views.

(-) Bridgepoint Education (BPI) announces possible fines, corrective actions.

(-) Array Biopharma (ARRY) phase 2 study doesn't meet endpoints.

MARKET DIRECTION

Thin-volume pre-holiday trade and jobs data that suggested the pace of job destruction is slowing combined to drive U.S. stocks higher in today's regular session. Gains were moderate, although the tech-heavy Nasdaq managed to jump 1.8% on the back of strength in big-cap names following positive comments from Intel (INTC) on prospects for a computer upgrade cycle for businesses.

Today's turn higher was the second consecutive day of gains as stocks recovered modestly from four straight days of declines.

Trade started only modestly higher early Friday morning after a mixed report on job losses and unemployment. U.S. employers cut fewer-than-expected jobs in August, but the unemployment rate rose to 9.7%, a 26-year high, after a decline in July.

The decline in jobs marked the 20th straight month for contraction and served as a reminder that any job market recovery typically lags signs of revival in other pockets of the economy.

Volume was light ahead of the Monday holiday in U.S. markets. In addition, investors were waiting for news from a weekend meeting of finance ministers from the Group of 20 leading economies. Attendees are expected to talk about the timing for removing global stimulus measures, with some disagreement anticipated.

Looking further out to next week, earnings news is limited. Among companies reporting quarterly results are: Men's Wearhouse (MW), ShuffleMaster (SHFL) and Zales (ZLC) on Wednesday. Finisar (FNSR), lulu athletic (LULU) and National Semiconductor (NSM) are slated to report financials on Thursday.

On the economic front, consumer credit data is due on Tuesday. Wednesday will bring crude inventories data and the Fed's Beige Book. Initial claims and the Trade balance are set for release on Thursday, and import/export prices, Michigan sentiment, wholesale inventories and the Treasury budget are due on Friday.

Crude settled up 0.1% at $68.02 per barrel.

Comments

[ebworthen:]

"The decline in jobs marked the 20th straight month for contraction and served as a reminder that any job market recovery typically lags signs of revival in other pockets of the economy."

True, in a normal recession.

This one is uprecedented....since 1930.

Sep 04 05:49 PM

[Gwhitebeard:]

I have read opinions that the "recession" is over and the economy has started to "expand" once again. I wish one of these wizards would explain to me how the economy can possibly expand while the labor force, which drives everything through purchase power and fabrication is shrinking.

Sep 04 06:13 PM

[LKofEnglish:]

keep suckin' on those bonds Mr. Depression. I'm watchin' the new water pipes gettin' offloaded in my area and glad to see you're fittin' the bill.

Sep 04 10:00 PM

[drewriders:]

My fear is what happens in the next 2-5 years when all the stimulus money is spent. How are we going to have job growth when the consumer is tapped out and not spending, banks keep failing and no one is hiring?

I am fearing it could get ugly.

Sep 05 08:25 AM

[Albertarocks:]

"On the economic front, consumer credit data is due on Tuesday. Wednesday will bring crude inventories data and the Fed's Beige Book."

This entire concept of a weekly "crude inventories data" is one of the biggest farces in this entire world of business, markets and investing. With 22,000 tankers full of oil sitting there idle, off the coast, last week the report was released showing an "unexpected and sudden draw down on oil inventories". What? Who in hell do you think you're foolin' here? Gesis Kreist, who was asleep at the switch for a full week since the last report that allowed such a sudden drawdown to go undetected? Gimme a break here.

Giving an agency the power to concoct those reports is akin to providing a criminal who specializes in counterfeiting with the press he needs.

It's nothing short of insanity to allow these ludicrous and completely fabricated reports to be released at all. First of all, requiring reports every week or two is ridiculous. A semi-annual report "might" be needed but even at that, it should be reported by someone who would be upfront and honest. Since we'll never find such an entity anywhere within government, I say screw the reports. Nobody needs them except Goldman Sachs, JPM and the rest of their dirty cabal of thieves. Can you tell me how these report are relative to anything other than the dirty piggy bankers' options holdings?

I get so infuriated every time I hear about these weekly smoke and mirrors data releases that I have to go out and kick my neighbours dog through the hedge before I can't begin to think straight again. They aren't data releases... they're tools of thievery, and nothing less.

"SURPRISE!"
"The government released data today showing a 'surprising' increase in gasoline inventories". "SURPRISE!"
"In today's employment report, the government data shows a 'surprising' decrease in jobless claims.
"SURPRISE!"
"Goldman Sachs showed a 'surprising' increase in profits this quarter, although the 300 billion dollars they were given from the lootings of the American taxpayer were not considered in the calculations. Goldman officials said "that $300 billion shouldn't be, and wasn't, included in the picture because those funds just went into executive bonuses and wouldn't therefore be considered as part of ongoing business operations".
"SURPRISE!" "SURPRISE!" "SURPRISE!"

Can you feel my anger? If not, you aren't paying attention. If necessary, re-read this post, and re-read it again, and again until you're ready to go out and rip a pig's head off.

I won't be surprised when the day comes that those greedy bastards get a surprise they weren't banking on. The public fleecing can't go on forever without a response. I have no idea when that day come, but when it does I hope a camera's rolling so I can see the look on the bankers' faces when they hear that awful word directed at them for a change... "SURPRISE!"

Sep 05 09:38 PM

[spqrusa:]

@albertarocks - it has always been this way. I am not sure what people, who feel like you, should do, but violence doesn't seem to be the healthy answer. Nor will violence solve the problem.

Did the burning of Rome matter to Nero? No. Sure, he was eventually killed, but it didn't fix the problem. And, it only discouraged tyrants for a limited time, then it was back to old business.

I would suggest that you continue to seek out like-minded people. And that you "club" together with like-minded people to affect change. We need a movement of those who are more suspicious of big and small governments, and who will elect people to lift the heavy yokes we have been placed under.

Sep 06 03:53 AM

[marketman54:]

I am in fear mode also.

-Unemployment continues to go up monthly. Over 24 million out of work!
-Foreclosures have continued to go up monthly.
-Consumer spending continues to decrease monthly.
-Government spending continues to go up monthly.
-Banking financial exposure continues to go up monthly with existing toxic assets, new foreclosures, credit card payment defaults, auto loan payment defaults, toxic commercial real estate..

Our government has done exactly what society did to get us in this situation-OVER SPEND AND CREATE BUBBLES IN EVERY INDUSTY! They bubbled the financial industry, the insurance industry, the auto industry.....

These bubbles will burst also. This is why I am scared, things get worse every month and the market is artificially lifted by hope, optimism and federal spending. I never knew the growth of our economy was based on these factors!


On Sep 05 08:25 AM drewriders wrote:

> My fear is what happens in the next 2-5 years when all the stimulus
> money is spent. How are we going to have job growth when the consumer
> is tapped out and not spending, banks keep failing and no one is
> hiring?
>
> I am fearing it could get ugly.

Sep 06 08:30 AM

[fjd10595:]

good, I'm glad to see people out there who think this economy is recovering. It is good to see people on the other side of the trade. What I see is this: fewer people in stores and restaurants than one year ago, homes not selling even at lower prices, people being put out of work or having their hours cut, and less credit available to consumers. At least they are upgrading the plumbing in your neighborhood.


On Sep 04 10:00 PM LKofEnglish wrote:

> keep suckin' on those bonds Mr. Depression. I'm watchin' the new
> water pipes gettin' offloaded in my area and glad to see you're fittin'
> the bill.

Sep 07 10:43 AM