Closing Update for Tuesday, Sept. 29: Dow Fronts Narrow Losses

4:19 PM, Sep 29, 2009 --

• NYSE down 12.9 (0.2%) to 6,926.82.
• DJIA down 47.16 (0.5%) to 9,742.
• S&P 500 down 2.4 (0.2%) to 1,061.
• Nasdaq down 6.7 (0.3%) to 2,124.

GLOBAL SENTIMENT

• Hang Seng up 2.06%
• Nikkei up 0.91%
• FTSE down 0.12%

UPSIDE MOVERS

(+) CIT gains as report says top creditor eyeing merging company with IndyMac.

(+) C sells Portuguese card business to Barclays (BCS).

(+) WAG meets with Q4 results.

(+) MSHL says NV-128 mTOR inhibitor shows good safety profile.

(+) NVMI tapped for Foundry contract.

(+) RRI gets analyst upgrade.

(+) BSDM sells hyperthermia system.

(+) MRNA gets patent covering siRNA with therapeutic potential for oncology, other indications.

(+) DAL raises cash, improves liquidity.

(+) RL gets analyst upgrade.

DOWNSIDE MOVERS

(-) KERX reports positive study for Perifosine.

(-) SSTI hikes guidance.

(-) SQNM continues evening slide that followed independent inquiry results.

(-) RPRX gets further clarification on FDA's clinical hold on Proellex.

(-) RCON disappoints with FY10 outlook.

(-) UBS reshuffling board.

MARKET DIRECTION

Major stock averages close with modest declines but at the lower end of the day's range.

Stocks opened firmer out of the gate on a Street-topping rise in single family home prices in July, but the good news was offset by a surprise drop in September consumer sentiment.

The Conference Board reported that its widely watched consumer confidence index fell to 53.1 in September from 54.5 in August, reversing part of August's nearly seven-point gain. Economists were looking for a rise to 57, based on higher stock prices, lower gas prices and fewer layoffs. The Index hit a low of 25.3 in February. The Board's present situation index, which measures things as they stand now, fell to 22.7 from 25.4 in July. It's the lowest level since it hit a 26-year low in March.

Earlier, the S&P/Case-Shiller composite index of house prices in 20 metropolitan areas rose 1.6% in July, more than triple the Street's call for an 0.5% rise, according to a Reuters poll. This index rose 1.4% in June. On the year, the pace of declines in home prices improved to a 12.8% drop in the 10-city index and 13.3% downturn in the 20-city index.

General Electric (GE) chief executive Jeffrey Immelt warned this morning that high unemployment and slower lending will drag on U.S. economic growth, likely resulting in the weakest recovery in decades. "There are reasons to believe that this recovery could look different from ones in the past," Immelt said in a speech in Singapore. "There's not a lot of confidence that it's going to be great."

Crude oil futures finished lower on Tuesday, but off earlier lows of the session. Crude prices were pressured by mixed U.S. economic reports, a stronger dollar and expectations for an increase in inventories. Crude oil for November delivery lost 13 cents, or 0.2%, to end at $66.71 a barrel.

Comments

[David White:]

The Japanese end of fiscal half year repatriation of funds (i.e. USDs to Yen) ends tomorrow. Most repatriation has already been done. It is likely we will see a bounce in the USD vs. the Yen. This should give the USD an impetus to move up. If this happens, it would pressure oil down.

In opposition to this, the petroleum inventories build was huge last week. It seems likely petroleum inventories will be down this week. This should pressure oil to the high side. If the USD rises significantly though, I would still bet oil to the low side. It will be interesting tomorrow, especially with the ADP job numbers coming out.

Sep 29 08:13 PM