Reply #40: 10:03 EST Who Cares about reality? Let's buy! [View All]

[UpInArms]

Dow 10,418.28 +4.15 (+0.04%)
Nasdaq 2,090.50 -0.74 (-0.04%)
S&P 500 1,195.05 -0.71 (-0.06%)
10-Yr Bond 4.484 +0.21 (+0.47%)

NYSE Volume 314,349,000
Nasdaq Volume 271,198,000

(updating blather on edit)

10:05AM: The indices vacillate around each side of the flat line...

Seven of ten economic sectors have begun the day on positive footing, with Telecommunications' 1.1% gain leading the Materials (+0.7%), Consumer Staples (+0.5%), Technology (+0.4%), Consumer Discretionary (+0.3%), Financials (+0.3%), and Industrials (+0.1%) sectors. Energy has slumped 0.6%, pushed lower by a 1.2% pullback in the price of crude ($61.69/bbl), but it's Healthcare that has moved into the laggard's seat this morning. Off 1.3%, the sector suffers a 6.3% plunge in Pfizer (PFE 22.47 -1.50) shares and a 3.3% decline in Amgen (AMGN 75.12 -2.97). As Pfizer's guidance has spurred selling, so is the case with Amgen. Following yesterday's close, the biotech delivered Q3 EPS $0.03 ahead of expectations - as did Pfizer- but disappointed the market with an in-line FY05 outlook. Separately, leading indicators for Sept. checked in at -0.7% (consensus -0.5%).NYSE Adv/Dec 1286/1360, Nasdaq Adv/Dec 1217/1119

9:45AM: The market opened on the upside, sending each of the indices to modest early gains...

Third quarter earnings reports continue to rush in; although about two-thirds of the morning's reporters have surpassed analystys' estimates, traders' focus rests upon disappointing guidance issued by Pfizer (PFE) and eBay (EBAY), and subsequent 7.0% and 2.4% tumbles in respective shares have helped limit the market's advance in the early going. While Pfizer reported EPS $0.03 ahead of expectations, the company announced downside FY05 guidance and withdrew FY06 and FY07 forecasts. eBay, meanwhile, matched analysts' EPS estimate but announced lower than anticipated Q4 and FY05 EPS outlooks. Solid reports from SBC (SBC) and Coca-Cola (KO) may, however, help support the market. Although it is a bit early for a sustained earnings season rally, yesterday's 1.3%, 1.5%, and 1.7% respective rises in the Dow, S&P, and Nasdaq helped the market tone, and the progression of the Q3 earnings season could further attract buyers.