Closing Update for Monday, August 10: Rally Pauses

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Includes: BBY, BKNG, CHDX, DYN, ELON, FMCC, GILD, LLY, MCD, MRK, MSFT, RIO, TIBX, VNDA, YRCW
by: Midnight Trader

4:09 PM, Aug 10, 2009 --

  • NYSE down 21.43 or 0.33% to 6,564.93.
  • DJIA down 34.16 or 0.36% to 9,335.9
  • S&P 500 down 0.58 or 0.06% to 1,009.9.
  • Nasdaq down 2.25 or 0.11% to 1,998.00.


GLOBAL SENTIMENT

  • Hang Seng up 2.7%
  • Nikkei up 1.1%
  • FTSE up 0.7%


UPSIDE MOVERS

(+) FRE gains after announcing late on Friday it does not need to request more capital aid from the US government. FNM also recovers from deep drop Friday.

(+) PCLN says Q2 profits, sales beat estimates.

(+) DYN to sell nine plants for about $1.5 billion in cash and stock in a move to cut debt.

(+) MCD says global same-store sales rise 4.3% for July.

(+) TIBX reportedly in deal talks with SAP.

(+) YRCW inks deal with union.

(+) CHDX beats with earnings.

(+) YMI gets OK for extending clinical program.

(+) ELON in supply agreement with Duke Energy.

DOWNSIDE MOVERS

(-) LLY downgraded by Goldman Sachs.

(-) MSFT sells Razorfish.

(-) RTP dips as reports say company subject of scathing Chinese
editorial.

(-) BBY downgraded by Goldman Sachs.

(-) VNDA reports wider-than-expected second-quarter loss.

MARKET DIRECTION

Stocks eased moderately, down around 0.3% and 0.4%, as Wall Street pocketed some of the profits from a four-week rally that landed the averages at fresh 2009 highs last week. Investors are also awaiting a two-day Federal Reserve meeting and more economic data, including retail sales figures, later in the week.

The central bank is expected Wednesday to keep rates near zero after its two-day meeting. Also later this week, Wal-Mart Stores (NYSE:WMT), J.C. Penney (NYSE:JCP) and Macy's (NYSE:M) will report earnings.

Crude oil ends down 0.5% at $70.60 a barrel. Gold ends down 1.3% at $945 an ounce. The broader commodity market, including metals prices, fell, dragging on materials stocks.

As for corporate movers:

McDonald's (NYSE:MCD) was a gainer after its better-than-expected sales results.

Best Buy (NYSE:BBY) and Eli Lilly (NYSE:LLY) declined after analyst downgrades.

Merck & Co. (NYSE:MRK) was given a Buy rating by Goldman Sachs.