Equities Update: Energy, Financials Derail Dow's Run

4:25 PM, Nov 12, 2009 --

• NYSE down 92.31 (1.3%) to 7,063.05.
• DJIA down 93.79 (0.9%) to 10,197.
• S&P 500 down 11.3 (1%) to 1,087.
• Nasdaq down 17.9 (0.8%) to 2,149.

GLOBAL SENTIMENT

• Hang Seng down 1.01%
• Nikkei down 0.68%
• FTSE up 0.15%

UPSIDE MOVERS

(+) COMS sold to H-P (HPQ).

(+) ETRM releases positive EMPOWER study review.

(+) ADUS results top year ago period.

(+) ATK EPS top Street estimate, sales meet.

(+) ATVI out with early favorable Call of Duty 2 sales.

(+) GRRF tops Q3 estimates.

(+) HPJ tops year-ago results.

(+) CAAS beats with Q3.

(+) WMT tops with Q3 EPS but sales, comp sales disappoint, raises FY EPS view to meet or beat Street.

(+) KSS erases early losses; beats with Q3, offers mixed guidance.

(+) URBN turns higher; beats by a penny with Q3 EPS.

DOWNSIDE MOVERS

(-) UTX buying GE's security business.

(-) GE gives up early gain; sells security business to United Technologies (UTX) for $1.82 bln.

(-) HPQ buying 3Com (COMS).

(-) BRCD continues evening decline on disappointment no deal with H-P.

(-) BUD profit doubles but misses estimate.

(-) JRCC selling debt.

MARKET DIRECTION

Stocks moved in mixed fashion Thursday but ultimately end lower, snapping a six-day streak of gains for the Dow Jones Industrial Average. The averages all end down around 1%.

Light early support for stocks stemmed from a report showing a decline of 12,000 weekly jobless benefits claims. The number of unemployed Americans who continue to collect benefits fell by 139,000 to 5.63 million. That's the lowest since March.

Wal-Mart (WMT) twisted between negative and positive territory after mixed results and guidance.

U.S. stocks finished higher Wednesday on back of Federal Reserve speeeches that convinced market bulls low interest rates will remain in place for some time. The Dow reached a new 2009 high. The broader S&P 500 finished just short of 1,100, a line it's yet to cross in 2009.

Energy stocks fell as crude oil ends down 3% at $76.94 a barrel.

Crude supplies rose in the latest week as demand eased, according to the Energy Information Administration. Crude stockpiles rose by 1.8 million barrels in the week ended Nov. 6, the EIA reported.

Analysts polled by Platts had expected an increase of 1 million barrels. Gasoline inventories rose 2.5 million barrels and distillate stockpiles, which include heating oil and diesel, added 300,000 barrels. Demand for gasoline dropped 1.9% from a week ago to 8.8 million barrels a day, the EIA said

In other company news, H-P (HPQ) and 3Com Corporation (COMS) announced late Wednesday they've inked a definitive agreement under which H-P will purchase 3Com at a price of $7.90 per share in cash or an enterprise value of approximately $2.7 billion. Brocade (BRCD) is an active volume decliner amid disappointment it didn't strike a deal with H-P.

United Technologies (UTX) has reached an agreement to purchase the GE Security business from GE (GE) for $1.82 billion. UTX expects this transaction will be earnings neutral in 2010, after restructuring and transaction costs, and anticipates that the cost synergies will make it accretive in 2011 and beyond. Both shares gained in pre-market action.

AMD (AMD) was higher after winning a $1.25 billion settlement payment from Intel (INTC). In response, INTC adjusted its Q4 spending and tax rate expectations.

Comments

[robert.b.fe...:]

GE must be getting desperate to sell off their security arm which they purchased not long ago for almost the same price.

Nov 12 04:53 PM

[bottoms-up:]

Tomorrow morning "futures will point to a higher open."

I dedicate this song by Danzel to my good buddies, Ben and Tim:

"Pump It Up"

Don’t you know, pump it up,
You’ve got to pump it up,
Don’t you know pump it up,
You’ve got to pump it up.
Don’t you know pump it up,
You’ve got to pump it up.
Don’t you know pump it up,
You’ve got to pump it up.

It’s not so long ago, that the sound hit the nation.
Every saturday night, on your favorite radio.
The party’s jumpin’ yeah, and the vibe feels so strong.
Throw your hands in the air, lift your head up high,
You know you’ve got to sing along.

Don’t you know, pump it up,
You’ve got to pump it up,
Don’t you know pump it up,
You’ve got to pump it up.
Don’t you know pump it up,
You’ve got to pump it up.
Don’t you know pump it up,
You’ve got to pump it up.

It’s not so long ago, that the sound hit the nation.
Every saturday night, on your favorite radio.
The party’s jumpin’ yeah, and the vibe feels so strong.
Throw your hands in the air, lift your head up high,
You know you’ve got to sing along.

Don’t you know, pump it up,
You’ve got to pump it up,
Don’t you know pump it up,
You’ve got to pump it up.
Don’t you know pump it up,
You’ve got to pump it up.
Don’t you know pump it up,
You’ve got to pump it up.

Got to feel it, what’s the name of the jam.
Say : “ I can feel it “, you know you can.
I’ve got my groove on, and I’m ready to go.
Check out my ride girl, but don’t touch my radio!

Don’t you know, pump it up,
You’ve got to pump it up,
Don’t you know pump it up,
You’ve got to pump it up.
Don’t you know pump it up,
You’ve got to pump it up.
Don’t you know pump it up,
You’ve got to pump it up.

And make me feel good, feel so good
And make me feel good, feel so good

Nov 12 05:01 PM

[LaChic:]

well, we had the job report and to some this was great news, and the market went down, which brings me to my question? is this is it?

Nov 12 08:55 PM

[prudentinve...:]

Not yet.


On Nov 12 08:55 PM LaChic wrote:

> well, we had the job report and to some this was great news, and
> the market went down, which brings me to my question? is this is
> it?

Nov 13 07:26 AM