Equities Update: Markets End Week Up 3%

4:10 PM, Nov 6, 2009 --

• NYSE up 8.1 (0.1%) to 6,958.27.
• DJIA up 17.5 (0.2%) to 10,023.
• S&P 500 up 2.67 (0.3%) to 1,069.
• Nasdaq up 7 (0.3%) to 2,112.

GLOBAL SENTIMENT

• Hang Seng up 1.63%
• Nikkei up 0.74%
• FTSE up 0.31%

UPSIDE MOVERS

(+) GSI beats with Q3 results.

(+) FFBC reports higher income vs year ago.

(+) AMZN gets analyst upgrade.

(+) GE gets analyst upgrade; credit arm extends pact with JCPenney.

(+) PMI narrows loss.

(+) M gets analyst upgrade.

(+) SWKS up on results.

(+) NVDA continues evening gain after earnings beat, higher rev guidance.

(+) SBUX continues evening gain after earnings beat, raised FY guidance.

DOWNSIDE MOVERS

(-) AIG swings to Q3 profit that beats, details Q4 charge and continued volatility.

(-) FNM continues evening decline that followed earnings.

(-) RST down despite Q3 beat.

(-) CROX continues evening decline that followed

MARKET DIRECTION

Stock averages end narrowly higher Friday after a whipsaw session. All three leading averages record solid 3% weekly gains. A jump for Dow component General Electric (GE) after an analyst upgrade helped offset the damage from a weaker-than-expected October jobs report. Travelers (TRV) and Amazon.com (AMZN) also advanced after an upgrade.

Stocks swung in two directions after a surprisingly weak October jobs report this morning. Wall Street bulls had been betting on a still-weak but slightly brighter employment picture, after recent data hinted at an improved job market, which typically lags the rest of the economy in a recovery.

However, October's data surprised on the downside. The U.S. unemployment rate climbed to 10.2%, clearing the 10% mark for the first time in 26 years.

Nonfarm payrolls dropped by a seasonally adjusted 190,000 in October, bringing the total number of jobs lost in the recession to 7.3 million. It was the 22nd straight decline in payrolls. Economists surveyed by MarketWatch were forecasting a rise in the unemployment rate to 10%, with 150,000 lost payroll jobs.

In September, payrolls fell by a revised 219,000, compared with the previous estimate of a 263,000 loss. The unemployment rate was 9.8% in September. Payrolls in August and September were revised higher by a total of 91,000 jobs.

In a separate report, the Commerce Department said today wholesale inventories fell 0.9% in September, but sales by wholesalers rose 0.7%, slightly better than the 0.6% gain economists were looking for.

A weekend meeting of the G-20 financial ministers and a looming vote on health care legislation are also on the Street's radar.

In company news, Fannie Mae (FNM) fell after the company said late Thursday it lost $3.47 in Q3, vs $13 per share a year earlier. The company said its interest income in the quarter was $9.6 billion vs $10.7 billion.

The company also requested an $15 billion in financial assistance from the U.S. Treasury by the end of the year.

Crocs (CROX) is down after the company reported late Thursday Q3 revs of $177.1 mln, better than the analyst mean of $156 mln on Thomson Reuters. Non-GAAP earnings were $0.01, ahead of expectations of a loss of $0.08 per share.

For Q4, the company expects revs between $110 and $115 mln and a loss of $0.20
to $0.15 per share. The Street is at $114 mln in revs and a loss of $0.16 per
share.

On the upside, JDSU (JDSU) reports Q1 revs of $298.6 mln, better than the analyst mean of $292 mln on Thomson Reuters. Non-GAAP earnings were $0.04, two cents better than expectations.

For Q2, the company expects revs in the range of $320 to $345 mln, vs. Street
estimates of $306 mln.

Nvidia (NVDA) reports Q3 revs of $903.2 mln, well ahead of the analyst mean of $838 mln on Thomson Reuters. EPS was $0.19, topping the Street view of $0.10 per share.

For Q4, the company expects revs up about 2% sequentially, or roughly $921.2
mln. The Street is at $868 mln.

Skyworks Solutions (SWKS) rises after the company reports Q4 revs of $228.1 mln, better than the analyst mean of $222 mln on Thomson Reuters. Non-GAAP EPS was $0.24, two cents better than the Street view.

For Q1, the company expects revs in the range of $238 to $242 mln, vs. Street
estimates of $231 mln. Non-GAAP earnings are seen at $0.25 per share, three
cents higher than analyst targets.

Comments

[MarvinMBA:]

OK..not too bad a week considering everything. We MUST improve the job picture or else were down the tubes. Start hiring people to put up solar and wind. If we put everybody to work on energy projects, we will be out of the woods in five years...MarvinMBA

Nov 06 05:43 PM

[MarvinMBA:]

NATIONAL ENERGY PROJECT This is what Obama should start on next...lets get everyone that unemployed to start working on this project which could have wartime priority...because were fighting an economic downdraft that MUST BE STOPPED AND EMPLOYMENT REVERESED...MarvinMBA

Nov 06 05:47 PM

[robert.b.fe...:]

Marvin: Greetings. Just where will the money come from to pay for this? Pickens would love to start it and even proposed a plan to start out with a fund site( pickensplan.org). However none of it is viable with oil under $100pbl. More over the so called "Smart grid." is little more than a Federal government power grab. While upgrading and expanding our power system is necessary, we need to get it right, and as of now I just can't see any one working on it smartly.

Nov 06 06:10 PM

[rob134:]

Want to know how the Treasury liquidity and the Carry Trade can juice a market...

During the height of the dot com boom it took 17 months for the S&P 500 to go from 700 to 1100.

The current rally... 7 months from 700 to 1100.

Nov 06 06:18 PM

[tripleblack:]

Like climbing Everest, the first time is the magik.


On Nov 06 06:18 PM rob134 wrote:

> Want to know how the Treasury liquidity and the Carry Trade can juice
> a market...
>
> During the height of the dot com boom it took 17 months for the S&P
> 500 to go from 700 to 1100.
>
> The current rally... 7 months from 700 to 1100.

Nov 06 08:09 PM

[robert.b.fe...:]

Bloggingstocks.com has an interesting article on Citti Group's (C) divestiture of Primerica via an IPO. Speulation is it could rais over $100M.

Nov 06 08:28 PM

[marketman54:]

26 milllion plus out of work and every American spending less money and look what happens - our GPD is expected to grow 3.5% HOW CAN THIS HAPPEN??

Where are all the stimulus jobs and when and how are these 26 million people going back to work???

Sales are still down 20% to 40% for companies across the board and yet we are excited about this????????

Citibank, Bank of America, GE, AIG, Fannie Mae, Freddie Mac ........all these companies are still on the brink???????

GM and Chrysler will be dead in three years.

Will there ever be a housing market again??? Will the foreclosure rate slow down soon?? Will commercial real estate collapse the regional banking system??

Will the government balloons pop in all the markets that have our money - auto, financial, insurance???

Small business still cannot borrow money, my friends and I know this because the banks won't make asset based loans.

So much uncertainty, so many cluttered facts, so much less bad is more good, so many training wheels for the market....., so many low hurdles for earning reports, so much less than mediocre hope and hype to drive the market.

Nov 08 08:36 AM