Reply #70: The End. [View All]

[ozymandius]

Dow 8,448.56 Down 25.41 (0.30%)
Nasdaq 1,546.46 Up 7.67 (0.50%)
S&P 500 871.79 Up 1.53 (0.18%)
10-Yr Bond 2.297% Down 0.012
NYSE Volume 5,685,915,500
Nasdaq Volume 2,013,453,000

4:30 pm : Stocks finished a choppy session with mixed results amid continued uncertainty in the broader market.

Financials were able to register strong gains after receiving some relief this session. The sector advanced 1.4% after finishing lower in each of the four prior sessions. Financials are down 12.6% through the last five sessions, though.

Recent selling efforts in the sector follow revived concerns regarding the health of financial institutions and the losses that may be lurking on their balance sheets. Steep losses could lead to further capital raises, which would likely dilute existing shareholders.

To help ensure a healthy financial system, Fed Chairman Bernanke stated that more capital injections and guarantees may become necessary.

Separately, Fed Vice Chairman Kohn stated TARP funds could be used in modifying large numbers of troubled mortgages, which would help protect lenders from losses associated with failed mortgages. Kohn stated TARP funds could also help restart key credit markets.

Repairing lending and credit markets remain key in stimulating broader economic conditions. With macro conditions still bleak, expectations are low this earnings season.

A collective batch of warnings during recent weeks has also undercut expectations. Most recently, NVIDIA (NVDA 4.65, +0.04) slashed its fourth quarter revenue guidance due to weak demand in end markets. NVIDIA's cut was largely expected, though, so its stock was able to resist selling pressure.

Meanwhile, Dow component Alcoa (AA 9.55, -0.51) succumbed to continued selling pressure. Analysts expected Alcoa to post a loss of $0.10 per share after the company recently indicated it would cut production and restructure itself amid slumping demand. Alcoa disappointed, though, by reporting a loss of $0.28 per share.

Energy stocks were able outperform the broader market for virtually the entire session. The sector closed 2.2% higher, riding a 0.8% advance in crude prices. Crude oil futures closed at $37.90 per barrel.

Crude prices gyrated for the entire session. They had been up as much as 5.1% at its session high, and down as much as 4.0% at its session low.

Stocks also had a choppy session. They had been up as much as 0.8%, and down as much as 1.0% before finishing with mixed results.

The lack of direction in the broader market reflects continued uncertainty among market participants. With dour economic data on tap and profits still a point of concern, investors do not appear ready to jump back into the stock market.DJ30 -25.41 NASDAQ +7.67 NQ100 +0.1% R2K +1.1% SP400 +1.1% SP500 +1.53 NASDAQ Adv/Vol/Dec 1503/1.99 bln/1233 NYSE Adv/Vol/Dec 1648/1.31 bln/1434