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 Post subject: April 20th Monday 2009
PostPosted: Mon Apr 20, 2009 8:15 pm 
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Dow's Biggest Decline in 7 Weeks
Wall Street pulls back after six straight weeks of gains on worries about banks, despite BofA quarterly results.
By Alexandra Twin, CNNMoney.com senior writer
Last Updated: April 20, 2009: 5:45 PM ET

NEW YORK (CNNMoney.com) -- Stocks tumbled Monday as a six-week old rally lost steam on worries about financial sector earnings, despite Bank of America's better-than-expected quarterly results.

The Dow Jones industrial average (INDU) lost 290 points, or 3.6%. It was the biggest one-day selloff on a point basis since March 2nd.

The S&P 500 (SPX) index fell 37 points, or 4.3%. The Nasdaq composite (COMP) lost 65 points, or 3.9%.

Stocks tumbled in the morning and remained in the red through the afternoon as investors bailed out of a variety of sectors after the recent run. All 30 Dow components slipped, led by oil stocks Chevron (CVX, Fortune 500) and Exxon Mobil (XOM, Fortune 500), as well as Hewlett-Packard (HPQ, Fortune 500), 3M (MMM, Fortune 500), Procter & Gamble (PG, Fortune 500) and Wal-Mart Stores (WMT, Fortune 500).

The S&P 500 has advanced almost 29% over the past six weeks on bets that the economy is closer to finding its footing. The gains followed a selloff that left the broad index at a more than 12-year low.

Some better-than-expected profit reports over the last week have helped sentiment. But investors seem to be skeptical of some of the financial sector results, many of which have been soundly beating forecasts, including JPMorgan Chase (JPM, Fortune 500), Goldman Sachs (GS, Fortune 500) and Citigroup (C, Fortune 500).

"It's always about the financials. They brought us up and they bring us back down," said Joseph Saluzzi, co-head of equity trading at Themis Trading.

"We had a nice run over six weeks, but it was still a bear market rally," he said. "Now today, people are looking at Bank of America and asking how they could have earned what they did and whether it's just a one-time thing."

(Big banks have a big credit problem).

After the close of trade, IBM (IBM, Fortune 500) reported higher earnings that topped estimates on weaker revenue that missed estimates. The company also reiterated its goal of earnings of $9.20 per share in 2009 and said it is well on its way to meet its profit goal of $10 to $11 per share in 2010. Shares fell 1% after the close.

Also after the close, Texas Instruments (TXN, Fortune 500) reported weaker quarterly sales and earnings that topped expectations. TI also forecast first-quarter earnings per share that is more than what analysts are currently expecting. Shares gained nearly 3% after the close.

Dow components Caterpillar (CAT, Fortune 500), Coca-Cola (KO, Fortune 500), Merck (MRK, Fortune 500) and United Technologies (UTX, Fortune 500) are all due to report results before the start of trading Tuesday. Analysts expect all four companies to report lower quarterly earnings versus a year ago.

Bank of America: The Dow component reported a first-quarter profit of $4.2 billion that handily topped forecasts. But the company also warned about deteriorating credit quality and that sent shares lower. Bank of America (BAC, Fortune 500) shares lost 24%. (Full story)

Citigroup, Wells Fargo (WFC, Fortune 500), JPMorgan Chase and American Express (AXP, Fortune 500) were among the other bank shares falling. The KBW Bank (BKX) index lost 15.4%.

Company news: In deal news, Oracle (ORCL, Fortune 500) will buy Sun Microsystems (JAVA, Fortune 500) for $7.4 billion or $9.50 per share. The deal follows news that Sun reportedly spurned a $7 billion buyout offer from IBM earlier this month.

In other deal news, PepsiCo (PEP, Fortune 500) has reportedly offered $6 billion to buy the stake it doesn't already own in its two biggest bottlers.

Meanwhile, General Motors (GM, Fortune 500) is planning to cut about 1,600 employees this week as part of a previously announced plan to cut 3,400 of its 29,500 U.S. salaried employees.

Market breadth was negative. On the New York Stock Exchange, losers topped winners by more than 9 to 1 on volume of 1.76 billion shares. On the Nasdaq, decliners beat advancers by five to one on volume of 3.08 billion shares.

Economy: Adding to the weakness was a worse-than-expected reading on the index of leading economic indicators put out by the Conference Board, a business research group. March LEI fell 0.3% after falling 0.2% in February. Economists surveyed by Briefing.com thought it would fall 0.2%.

Bonds: Treasury prices rallied, lowering the yield on the benchmark 10-year note to 2.84% from 2.94% Friday. Treasury prices and yields move in opposite directions.

Lending rates were mixed. The 3-month Libor rate was unchanged from 1.10% Friday, according to Bloomberg.com. The overnight Libor rate fell to 0.22% from 0.24% Friday. Libor is a bank-to-bank lending rate.

Other markets: In global trading, Asian markets ended higher and European markets ended lower.

In currency trading, the dollar gained versus the euro and fell against the yen.

U.S. light crude oil for May delivery slumped $4.45, or nearly 9%, to settle at $45.88 a barrel on the New York Mercantile Exchange.

COMEX gold for June delivery rose $19.60 to settle at $887.50 an ounce.

Yahoo! Finance

4:30 pm : Sellers had their way with stocks for the entire session, causing the stock market to finish at session lows with its worst loss by percent in more than one month.

While all 10 major sectors in the S&P 500 suffered sharp losses, the selling effort was rooted in the financial sector. Financials finished 11.4% lower after Bank of America (BAC 8.02, -2.58) reported that its first quarter credit loss provisions totaled $13.4 billion, up almost $5 billion from the fourth quarter. The announcement provided an excuse for participants to sell bank stocks after watching them rally in recent weeks. Just last week bank stocks spiked after BB&T (BBT 19.79, -3.63) stated banks could still post profits while building reserves. To that point, Bank of America actually generated pretax, preprovision income of $19 billion, which exceeded expectations. Diversified banks finished 15.6% lower and diversified services stocks sank 15.9%.

Credit card companies were also out of favor. Their weakness stemmed from fear that tighter regulation may be in order. Consumer finance stocks dropped 15.0%.

Sun Microsystems (JAVA 9.15, +2.46) managed to make a gain amid the session's declines. The stock soared after Oracle (ORCL 18.82, -0.24) announced it will acquire the company for $9.50 per share, which marked a premium of more than 40% above JAVA's closing price last week.

The announcement comes after talks between IBM (IBM 100.43, -0.84) and Sun Microsystems faltered. IBM stated it has no intention to return to discussions with Sun Microsystems, according to reports.

PepsiCo (PEP 49.86, -2.27) announced it is doing some buying as well. PepsiCo will purchase remaining stakes in Pepsi Bottling Group (PBG 30.73, +5.53) for $29.50 per share and PepsiAmericas (PAS 25.04, +5.16) for $23.27 per share, which translates to respective premiums of roughly 17% over last week's closing prices. PepsiCo also announced better-than-expected first quarter adjusted earnings per share results.

With stocks dropping, investors sought the safety of gold. Gold prices closed at $887.50 per ounce, up 2.3%. Interest in gold was strong enough to help gold prices overcome a resurgent dollar, which climbed roughly 0.8%, according to the Dollar Index.

The dollar's bounce came about after ECB President indicated that more rate cuts may be in order for the European economy, though such cuts would come in measures of 25 basis points.

The stronger dollar weighed heavily on crude oil prices. May contracts finished 8.8% lower at $45.90 per barrel. DJ30 -289.60 NASDAQ -64.86 NQ100 -3.3% R2K -5.6% SP400 -5.4% SP500 -37.21 NASDAQ Adv/Vol/Dec 444/2.92 bln/2257 NYSE Adv/Vol/Dec 295/1.76 bln/2800

3:30 pm : Amid the sell-off in the equity markets, crude oil futures faced selling pressure as a strong dollar, continued lower demand forecasts due to the recession and near 19-year high inventory levels weighed on prices. The May contracts finished 8.8% lower at $45.90 per barrel.

May natural gas contracts also faced selling pressure throughout the session. The May contracts closed at $3.54 per contract, down 5.1%.

Precious metals were one of the few bright spots in the market this session.

June gold futures rallied throughout the session to close at $887.50 per ounce, up 2.3%. The contracts were bid higher and hit session highs of $889.70 per ounce late in the pit session.

Silver futures opened the pit session significantly higher. The July contracts traded north of $12 per ounce for the entire pit session and closed at $12.13 per ounce, up 2.6%.DJ30 -279.89 NASDAQ -64.69 SP500 -35.43 NASDAQ Adv/Vol/Dec 454/2.6 bln/2228 NYSE Adv/Vol/Dec 283/1.1 bln/2803

3:00 pm : Buyers are putting up little resistance to sellers' efforts, making for a rather quiet afternoon.

With only an hour left in the trading session, participants are looking ahead to the latest quarterly announcements from Boston Scientific (BSX 8.72, -0.30), Stryker (SYK 37.44, -0.50), Canadian National Rail (CNI 39.41, -2.30), IBM (IBM 100.25, -1.02), and Texas Instruments (TXN 17.51, -0.47). Each company is scheduled to report after this session's closing bell.

A barrage of earnings reports will hit news wires tomorrow morning. US Bancorp (USB 16.65, -1.95), Bank of New York (BK 29.72, -0.50), Northern Trust (NTRS 59.67, -3.39), State Street (STT 31.44, -2.67), Caterpillar (CAT 30.24, -2.05), Coach (COH 18.19, -1.11), Coca-Cola (KO 44.30, -0.72), DuPont (DD 26.82, -1.60), United Technologies (UTX 45.74, -1.58), Lockheed Martin (LMT 75.81, -1.13), Merck (MRK 25.30, -0.43), Schering-Plough (SGP 23.17, -0.17), and United Health (UNH 24.14, +0.00) are all due prior to Tuesday's opening bell.

No official government economic data is due tomorrow.DJ30 -283.55 NASDAQ -62.77 SP500 -35.04 NASDAQ Adv/Vol/Dec 442/2.40 bln/2216 NYSE Adv/Vol/Dec 288/1.04 bln/2786

2:30 pm : Losses have been gradually building in afternoon trading so that all three of the major indices are trading at fresh session lows. Losses are the steepest in the broader S&P 500, however. DJ30 -260.53 NASDAQ -58.52 SP500 -32.59 NASDAQ Adv/Vol/Dec 455/2.30 bln/2188 NYSE Adv/Vol/Dec 295/969 mln/2762

2:00 pm : Oil well services and equipment outfit Halliburton (HAL 18.80, +0.02) is trading along the unchanged mark. Its better-than-expected earnings of $0.44 per share for the most recent fiscal quarter is helping offset the impact of an 8.1% drop in crude oil prices, which are currently at $46.25 per barrel.

The drop in oil prices, combined with a negative bias in the broader market, has other oil services companies like National Oilwell Varco (NOV 31.94, -3.04) and Schlumberger (SLB 44.19, -2.38) trading with larger losses.

The broader energy sector is currently trading with a 4.3% loss.DJ30 -250.97 NASDAQ -56.99 SP500 -32.13 NASDAQ Adv/Vol/Dec 440/2.15 bln/2186 NYSE Adv/Vol/Dec 281/888 mln/2753

1:30 pm : Losses continue to compound so that declines across the 10 major sectors range from a 1.0% slip by utilities to an 8.7% drop by financials.

With losses mounting, participants are moving into gold. Gold prices are currently up 2.5% to $889.00 per ounce, which marks the best single-session for gold prices by percentage gain in roughly one month.

Gold prices are also being bolstered by a strengthening dollar. The Dollar Index is currently up 0.9% as currency traders push back against the euro, which is seeing weakness after ECB President Trichet indicated further rate cuts may be in order, though at a measure of 25 basis points per cut.DJ30 -252.89 NASDAQ -58.81 SP500 -33.14 NASDAQ Adv/Vol/Dec 409/2.02 bln/2189 NYSE Adv/Vol/Dec 275/800 mln/2741

1:00 pm : Stocks have been unable to shake the hold of sellers this session. As a result, each of the major indices are trading with steep losses at session lows.

The selling effort has been focused on financial stocks, which has taken the sector down 7.5%, more than any other sector. The move to knock down financials came after Bank of America (BAC 8.55, -2.05) rekindled fear about credit deterioration after several banks seemed to suggest last week that several signs of stabilization were taking root. Bank of America increased its credit loss provisions to $13.4 billion in the first quarter from $8.5 billion in the fourth quarter. The announcement overshadowed news that Bank of America generated pretax, preprovision income of $19 billion.

The announcement has prompted participants to dump other bank stocks en masse. All 24 members of the KBW Bank Index are trading with losses, which has taken the KBW down more than 11% this session.

Weakness among bank stocks has been aggravated by participants looking to lock in gains registered in recent weeks. Through last week, the KBW had climbed more than 40% during a four-week span.

Credit card companies are also being hit with stiff selling pressure. Their weakness follows fear that further regulation for the credit card industry may soon be in order. Consumer finance stocks are down 9.9%.

With sellers holding the reins, roughly 95% of the companies in the S&P 500 are trading with losses.

Sun Microsystems (JAVA 9.13, +2.44) is one of the few names to sport a gain this session. The stock is soaring after Oracle (ORCL 18.76, -0.31) announced it will acquire the company for $9.50 per share. The announcement comes after talks between IBM (IBM 100.80, -0.47) and Sun recently faltered. IBM has no intention to reconnect with Sun, according to reports. IBM reports its latest quarterly results after the closing bell.

PepsiCo (PEP 49.54, -2.59) is building its operations as well. The company will purchase remaining stakes in Pepsi Bottling Group (PBG 30.52, +5.32) and PepsiAmericas (PAS 24.56, +4.68). What's more, PepsiCo announced better-than-expected first quarter adjusted earnings per share results. DJ30 -226.52 NASDAQ -56.36 SP500 -30.10 NASDAQ Adv/Vol/Dec 418/1.90 bln/2174 NYSE Adv/Vol/Dec 283/731 mln/2713

12:30 pm : Losses among small-and mid-cap stocks are outpacing those of the major headline indices. The Russell 2000 Small-Cap Index and the S&P 400 Mid-Cap Index are down 4.9% and 4.7%, respectively.

Within the Russell 2000, nearly 96% of the components are trading with losses. Discovery Labs (DSCO 0.88, -0.92) is a primary laggard among small-caps after the company announced that the FDA sent a letter to Discovery Labs focusing on whether Discovery could distinguish change in its Surfaxin product over time.

Meanwhile, computer storage device outfit Western Digital (WDC 20.85, -1.58) is a primary laggard in the S&P 400. Nearly 97% of the companies in the mid-cap index are trading with losses.DJ30 -226.76 NASDAQ -57.65 SP500 -29.65 NASDAQ Adv/Vol/Dec 418/1.78 bln/2154 NYSE Adv/Vol/Dec 273/666 mln/2717

12:00 pm : Consumer staples stocks are currently down 1.4%, which is less severe than the losses seen in the broader market. Support for the sector is coming from shares of Pepsi Bottling Group (PBG 30.46, +5.26), which are up 21% after PepsiCo (PEP 50.09, -2.04) announced it would purchase remaining shares of the bottler for $29.50 per share. PepsiCo also announced it will pay $23.27 per share for Pepsi Americas (PAS 24.30, +4.42), and unveiled better-than-expected first quarter earnings results. However, PepsiCo is still the primary laggard in the consumer staples sector.

Separately, this session's drop in stock prices has helped support a bid for Treasuries. The 10-year Note is currently up 27 ticks, which pushes its yield down to 2.84%. The upturn in Treasuries this session follows a weak finish to last week, when Treasuries fell on both Thursday and Friday.DJ30 -239.82 NASDAQ -60.01 SP500 -30.27 NASDAQ Adv/Vol/Dec 416/1.60 bln/2134 NYSE Adv/Vol/Dec 265/610 mln/2706

11:30 am : Sellers continue knocking stocks lower. While all 10 sectors in the S&P 500 are in the red, only utilities has managed to limit its losses to less than 1%; utilities are currently down 0.8%.

The relative outperformance by utilities this session contrasts the sector's underperformance last week. Utilities stocks logged a weekly decline of 1.0% last week. Only telecom had a worse weekly performance; telecom had a weekly decline of 1.1%. Telecom is down 2.7% this session, though.DJ30 -211.07 NASDAQ -51.52 SP500 -26.36 NASDAQ Adv/Vol/Dec 420/1.47 bln/2103 NYSE Adv/Vol/Dec 284/534 mln/2669

11:00 am : Stocks remain mired in weakness as the three major indices, Dow, Nasdaq, and S&P 500, extend their downturn. Each of the major indices is currently putting together its worst performance by percent lost since March.

Gains within the NYSE are limited to roughly one in 10 holdings.DJ30 -226.92 NASDAQ -55.45 SP500 -27.58 NASDAQ Adv/Vol/Dec 388/1.22 bln/2088 NYSE Adv/Vol/Dec 278/440 mln/2639

10:30 am : Crude oil prices are seeing intense selling pressure. Futures contracts are pricing crude at $46.30 per barrel, down 8%. The drop in crude comes as the dollar shows strength against the euro, which follows comments from European Central Bank President Trichet that indicated any future cuts to Europe's target interest rate would be by 25 basis points.

Natural gas prices are also seeing considerable weakness. Contracts for future delivery are being priced at $3.58 each, down 4.0%.

Precious metals prices are finding support, though, as equities are hit with selling pressure. Gold was recently quoted at $876.20 per ounce, which reflects a gain of 1.0%. Silver is seeing an even more impressive advance; silver prices are up 2.9% to $12.13 per ounce.

Meanwhile, the Baltic Dry Index extended its recent bounce, closing 3.3% higher. All of its subindices advanced roughly 3% or better for the session.DJ30 -219.12 NASDAQ -53.65 SP500 -25.60 NASDAQ Adv/Vol/Dec 411/970 mln/2019 NYSE Adv/Vol/Dec 296/353 mln/2563

10:00 am : Just hitting news wires, leading economic indicators for March showed a decline of 0.3%. A decline of 0.2% was expected. Meanwhile, the prior reading was revised upward to reflect a decline of 0.2%.

Stocks have shown little reaction to the news as weakness is widespread and losses remain sizable.

Early movers: Trading up: JAVA +35.9%, PAS +22%, PZN +20.7%, PBG +19.6%, FAZ +13.3%, CEA +11.2%, DNDN +10.7%, SCO +9.9% Trading down: BBEP -32.4%, CKSW -15.6%, KWK -15.1%, BBT -12.7%, FAS -12.3%, HWD -12.1%, FTK -12%, MMR -11.7%, TNL -11.6%, COF -11.4%, HBAN -11.3%, BEXP -11.3%, C -11.2%, NCTY -11.2%, ING -11.1%, MGM -11.1%, STSA -10.8%, PAET -10.8%, SWIR -10.8%, TCK -10.4%, MYE -10.4%, ACMR -10.2%, BAC -10.1%, YGE -9.8%DJ30 -192.43 NASDAQ -43.95 SP500 -21.17 NASDAQ Adv/Vol/Dec 422/640 mln/1919 NYSE Adv/Vol/Dec 326/234 mln/2467

09:45 am : Stocks are being hit with considerable selling pressure this morning. The negative bias has taken all 10 sectors in the S&P 500 into the red.

Financial stocks are at the center of the selling effort. The sector is currently down 5.2%.

Weakness among financial stocks follows a disappointing announcement from Bank of America (BAC 9.58, -1.02), which indicated that its loss provisions climbed almost $5 billion since the fourth quarter. That is overshadowing the company's $19 billion in pretax, preprovision income. Bank of America's announcement is also providing an excuse for participants to take profits after watching financial stocks climb 29% in April alone. Peers JPMorgan Chase (JPM 31.89, -1.37) and Wells Fargo (WFC 18.81, -1.45) are feeling the brunt of the pressure.DJ30 -167.90 NASDAQ -38.16 SP500 -19.41 NASDAQ Adv/Vol/Dec 412/452 mln/1861 NYSE Adv/Vol/Dec 351/161 mln/2382

09:15 am : S&P futures vs fair value: -14.40. Nasdaq futures vs fair value: -24.80. Financials remain the focal point of market watchers as Bank of America (BAC) announced first quarter pretax, preprovision income of $19 billion, exceeding expectations. However, enthusiasm for the bottom line results has been put into check since Bank of America increased its credit loss provisions by nearly $5 billion since the fourth quarter. Further regulation of the credit card industry is expected after an NBC weekend interview with presidential economic adviser Larry Summers indicated the White House will focus on credit card abuses, which is pressuring shares of Capital One Financial (COF) and American Express (AXP) ahead of the opening bell. Outside of financials, PepsiCo (PEP) announced better-than-expected first quarter adjusted earnings per share results, and will purchase remaining stakes in Pepsi Bottling Group (PBG) and PepsiAmericas (PAS). Also in deal news, Oracle (ORCL) has stepped in to acquire Sun Microsystems (JAVA) after talks between Sun and IBM (IBM) crumbled.

09:00 am : S&P futures vs fair value: -17.30. Nasdaq futures vs fair value: -28.30. According to The Wall Street Journal, congressional efforts to further regulate the credit card industry could soon receive support from the White House. The report followed an NBC interview in which presidential economic adviser Larry Summers indicated the White House will focus on credit card abuses. In response to the report, shares of Capital One Financial (COF) are down 6.1% to $16.76 per share in premarket action and shares of American Express are down 3.9% to $21.00 per share in premarket trading. Shares of Discover Financial Services (DFS) are down a more modest 0.6% to $8.50 per share ahead of the opening bell; according to Reuters, analysts at Goldman Sachs upgraded the stock, which is likely helping to offset sellilng pressure. The financial sector is also being put into closer focus this morning after the Treasury indicated that it can stretch remaining TARP funds if it converts existing loans into common stock. Meanwhile, banks looking to repay borrowed TARP funds will be allowed to do so if repayment doesn't result in the bank failing to pass certain stress tests. Stock futures continue to lag fair value by a considerable margin, indicating a markedly lower start for the major indices.

08:35 am : S&P futures vs fair value: -16.10. Nasdaq futures vs fair value: -26.50. European stocks are trading with marked weakness. Germany's DAX is leading the decline by slipping 3.4%. Its weakness is broad-based, but a drop in shares of Daimler is having the most adverse impact. Daimler is in talks with Chinese sovereign investment funds, according to a Dow Jones headline. Deutsche Telekom and Linde are the only two stocks in the DAX that are currently trading with a gain. France's CAC is currently trading with a 3.2% loss. The French Index is also trading with widespread weakness. Sanofi-Aventis (SNY), Dexia, and EDF are the only three stocks in the 40-component CAC to trade with gains. BNP Paribas is currently the CAC's primary laggard. Financial stocks are also leading losses in Britain, where the FTSE is off by 2.1%. HSBC (HBC), Barclays (BCS), and Standard Chartered are all being hit with considerable selling pressure in the wake of news that Bank of America (BAC) has increased its loss provisions. Separately, European Central Bank President Trichet said that further rate cuts to interest rate targets would be by 25 basis points, according to Reuters. Asian stocks had a relatively strong beginning to the week, however. Japan's Nikkei tacked on 0.2% amid strength in TDK Corp and Denso Corp. Honda Motor (HMC) was also a leader. In Hong Kong, Bank of China showed strength, but HSBC was a laggard. The Hang Seng finished 1.0% higher. The MSCI Asia-Pacific Index closed 0.2% higher. Mainland China's Shanghai Composite closed with a 2.1% gain.

08:05 am : S&P futures vs fair value: -13.50. Nasdaq futures vs fair value: -25.80. Stock futures are lagging fair value as a rush of corporate headlines hits news wires this morning. Bank of America (BAC) unveiled first quarter income that came in ahead of expectations. The company's pretax, preprovision income totaled $19 billion. Bank of America aimed to help ease concerns regarding the integration of Merrill Lynch by stating that the integration is on track to meet targeted cost savings. Meanwhile, Bank of America indicated cost savings from its acquisition of Countrywide are ahead of schedule. Bank of America increased its first quarter credit loss provisions to $13.4 billion from $8.5 billion in the fourth quarter. Bank of America's stock price was recently quoted 6.7% lower at $9.89 per share in premarket trading. Early this morning, PepsiCo (PEP) announced first quarter adjusted earnings of $0.71 per share, which exceeds the $0.67 per share that analysts were expecting. PepsiCo also reaffirmed that it expects core earnings per share to grow at rate ranging from mid-to high-single-digits. In a separate announcement, PepsiCo announced it will purchase remaining stakes in Pepsi Bottling Group (PBG) for $29.50 per share, and also purchase remaining stakes in PepsiAmericas (PAS) for $23.27 per share. Shares of PEP are down roughly 0.8% to $51.73 per share in premarket action. However, shares of PBG are up 11.5% to $28.10 per share ahead of the opening bell; shares of PAS are unchanged at $19.88 per share. Pharmaceutical company Eli Lilly (LLY) earned an adjusted $1.20 per share for its first fiscal quarter. The results topped the consensus estimate of $0.99 per share with relative ease. Eli Lilly expects full-year earnings to range from $4.00 to $4.25 per share, which brackets the consensus forecast of $4.14 per share. Eli Lilly's stock is up 3.7% to $35.00 per share in premarket trading. Oracle (ORCL) will pay $9.50 per share in cash to acquire Sun Microsystems (JAVA). Shares of JAVA closed last week at $6.69 per share, but are up 37% to $9.17 per share this morning. Oracle's stock is down 3.5% to $18.40 per share. There isn't much economic data due out today; only the leading economic indicators for March are due at 10:00 AM ET.

06:21 am : S&P futures vs fair value: -10.60. Nasdaq futures vs fair value: -21.80.

06:21 am : Nikkei...8924.75...+17.20...+0.20%. Hang Seng...15750.91...+149.60...+1.00%.

06:21 am : FTSE...4040.02...-52.80...-1.30%. DAX...4555.54...-121.40...-2.60%.

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