Equities Update: Mixed Finish for Major Averages

Oct 27, 2009

• NYSE up 15.03 (0.22%) to 6,975.12.
• DJIA up 59.55 (0.60%) to 9,927.51.
• S&P 500 up 2.31 (0.22%) to 1,069.26.
• Nasdaq down 10.28 (0.48%) to 2,131.57.

GLOBAL SENTIMENT

• Hang Seng down 1.86%
• Nikkei down 1.45%
• FTSE up 0.50%

UPSIDE MOVERS

(+) Nokia (NOK) unveils first handset to run on China's TD-SCDMA cellular standard.

(+) BP beats with earnings.

(+) LDK boosts most of Q3 guidance.

DOWNSIDE MOVERS

(-) Ameritrade (AMTD) beats with earnings, guidance mixed.

(-) Medivation (MDVN) inks development pact with Astellas.

(-) DryShips (DRYS) reversed gain that followed evening earnings beat.

(-) Baidu (BIDU) misses with revenue, guides below Street.

(-) American Capital Agency (AGNC) selling shares.

(-) Limited Brands (LTD) seeing continued selling after evening comp store sales warning.

(-) Metabasis Therapeutics (MBRX) falling sharply despite deal.

(-) Ceradyne (CRDN) cuts FY09 guidance.

(-) U.S. Steel (X) results down sharply vs year ago.

MARKET DIRECTION

Stock averages close mixed and in the middle of the day's range. Tuesday's performance snaps back-to-back deep declines for the major averages, including a retreat from 10,000 for the blue-chip Dow Jones Industrial Average. The DJIA got a boost from gains for IBM, after it doubled its buyback plans.

Stocks gained early on following a report that home prices in 20 major metropolitan markets rose for the third straight month in August. The Standard & Poor's/Case-Shiller home price index gained 1 percent in August from July. Home prices fell 11.4 percent from a year earlier, which was a smaller drop than economists polled by Thomson Reuters predicted.

The day's second report dashed those early gains. The Conference Board said its Consumer Confidence Index fell unexpectedly to 47.7 in October, its second-lowest reading since May. Analysts predicted a reading of 53.1.

Stocks declined after a well-bid auction of 2-year Treasury notes signaled investor interest in lower-risk alternatives.

Crude oil futures rose 1% and ended a volatile session above $79 a barrel. Gains preceded data expected to show a build in crude inventories but lower supplies of refined products.

The move is a possible reaction to new supply data that is expected to show a modest increase in inventories. Analysts are looking for a build of 900,000 barrels in commercial crude stocks for the week ended Oct. 23, according to analysts polled by Platts. They also project a decline of 1 million barrels in gasoline stocks and a drop of 1.1 million barrels in distillate inventories.

Comments

[apppro:]

I am referencing DRYS,but this really applies to all.

Today was just another example of the short-term mentality that pervades this market right now. THIS MUST STOP!

Oct 27 05:54 PM

[robert.b.fe...:]

Well it wasn't a massacre. Does that make it better than expected?

Oct 27 06:54 PM