12월 4일 미국시황

4:20 pm : The stock market lost ground for the second straight session, plagued by familiar concerns that stem from the subprime mortgage mess.

Fittingly, the biggest drag on the proceedings Tuesday was the financial sector (-1.9%), which got marked down after J.P. Morgan Chase cut its earnings estimates for a number of brokerages and a Punk Ziegel analyst downgraded Goldman Sachs (GS 215.22, -11.67), Bear Stearns (BSC 93.61, -4.79) and Lehman Bros. (LEH 59.61, -1.77) to Sell from Market Perform.

The cautious views piqued concerns that the financial sector rebound seen last week has run its course and that risks remain elevated for more disappointing earnings news.  Briefing.com has maintained an Underweight rating on the financial sector since April.

The loss of leadership from the financial sector weighed heavily on the broader market.  Nine out of ten economic sectors ended the session with a loss, but the financial sector was the only area that declined more than 1.0%.

Once again, the utilities sector (+1.0%) exhibited relative strength as low Treasury yields and credit market concerns raised the appeal of the income-oriented stocks.

Conversely, Merck (MRK 58.39, -0.38) and Nokia (NOK 38.92, -1.32) were among the notable stocks that were out of favor Tuesday after both companies provided disappointing guidance.

Merck's EPS forecasts for FY07 ($3.08-3.14) and FY08 ($3.28-3.38) both fell below the current First Call estimates of $3.15 and $3.39, respectively.  Nokia for its part actually raised its operating margin target to 16% to 17% from 15% and said it expects global handset demand to grow about 10% next year.  Investors, though, were bothered by the added assertion that it sees average selling prices falling.

Specialty retailer AutoZone (AZO 128.80, +20.93) enjoyed a different fate as its stock soared following the company's stronger than expected fiscal first quarter results.  Dell (DELL 23.60, -0.34), which jumped early in the session after announcing a $10 billion share buyback, reversed course as the day wore on and ended with a loss.

Like Monday, the indices closed the session on a weak note, finishing near their lows for the day. 

Separately, oil prices dropped again, slipping 1.1% to $88.31 per barrel ahead of OPEC's meeting in Abu Dhabi on Wednesday.DJ30 -65.84 NASDAQ -17.30 NQ100 -0.4% R2K -1.0% SP400 -0.4% SP500 -9.63 NASDAQ Dec/Adv/Vol 1943/1038/2.08 bln NYSE Dec/Adv/Vol 2095/1160/1.33 bln

3:35 pm : Much of the same as the major indices trade with modest losses.

The S&P 500 Retailing Index (+1.5%) continues to make gains.  Online retailer Amazon.com (AMZN 93.97, +3.06) is giving a large boost to the index.  There has not been a specific news item that would account for Amazon's gain, as it might be a technical induced trade.

Tomorrow, commodity traders await OPEC's meeting and whether the cartel will decide to increase output. At its last meeting on Sept. 11, OPEC decided to increase output by 500K barrels per day. Also of interest to commodity traders, the government's weekly energy reported will be released at 10:30 ET.

On the economic front, the ISM Services report is slated for release at 10:00 ET. Briefing.com's expectation of 55.0 matches the consensus estimate. DJ30 -52.02 NASDAQ -14.45 SP500 -7.47 NASDAQ Dec/Adv/Vol 1803/1154/1.66 bln NYSE Dec/Adv/Vol 1939/1300/955 mln

3:00 pm : Since the last update, the stock market has made some slight gains, but continues to be stuck in the red.  Only the consumer staples (+0.2%) and utilities (+1.1%) are managing to hold onto a gain.

The financial sector (-1.6%) continues to show the most weakness with 17 of its 19 groups posting a loss.  The investment banks & brokerages group (-3.5%) is showing the most weakness, while specialized finance (+1.0%) is showing the most strength.DJ30 -36.90 NASDAQ -12.20 SP500 -6.21 NASDAQ Dec/Adv/Vol 1869/1048/1.49 bln NYSE Dec/Adv/Vol 2009/1206/855 mln

2:30 pm : The stock market runs into some selling pressure as it falls to the middle of its intraday range.  The decline has been mostly broad-based, although there has been a notable reversal in the tech sector (-0.4%).

Eleven of the thirty Dow components are trading higher.  Tech companies IBM (IBM 106.86, +1.03) and Hewlett-Packard (HPQ 51.01, +0.57) are providing leadership.  Financial companies American Express (AXP 57.24, -1.36) and AIG (AIG 55.58, -1.30) are the main laggards.DJ30 -44.14 NASDAQ -16.01 SP500 -7.83 NASDAQ Dec/Adv/Vol 1917/996/1.39 bln NYSE Dec/Adv/Vol 2016/1207/788 mln

2:00 pm : The stock market is holding steady as it trades slightly below yesterday's closing level.

Merrill Lynch (MER 57.00, -2.06) announced late Monday that new chief executive John Thain has appointed Nelson Chai as the company's chief financial officer and executive vice president. Chai previously worked as CFO of NYSE Euronext (NYX 84.12, -0.30), where Thain was CEO before joining Merrill.

Citigroup (C 32.83, -0.23), which like Merrill ousted its CEO following massive write-downs, has yet to find a CEO. Bloomberg.com reports that Deutsche Bank CEO Josef Ackermann turned down a chance to pursue Citi's vacant position.DJ30 -24.79 NASDAQ -8.99 SP500 -5.57 NASDAQ Dec/Adv/Vol 1845/1044/1.27 bln NYSE Dec/Adv/Vol 1982/1240/715 mln

1:30 pm : The stock market is trading in a tight range-bound manner, as it has since shortly after the opening bell.

The S&P 500 Retailing Index (0.8%) strengthens as shares of AutoZone (AZO 142.20, +16.33) rally. The stock is up more than 15% after the auto parts retailer reported earnings that topped expectations by $0.11 per share.DJ30 -32.19 NASDAQ -10.37 SP500 -6.70 NASDAQ Dec/Adv/Vol 1720/1141/1.19 bln NYSE Dec/Adv/Vol 2838/1352/658 mln

1:00 pm : The major indices hit their best levels of the session in the last half-hour, but have been unable to penetrate the unchanged mark.

Despite the market trading with slight losses, the breadth of the market paints a more bearish picture. On the NYSE decliners outpace advancers by a 19-to-13 margin, while the Nasdaq clocks in at 17-to-11.  Meanwhile, new 52-week lows outpace new highs by more than a 6-to-1 margin.DJ30 -11.30 NASDAQ -4.04 SP500 -3.42 NASDAQ Dec/Adv/Vol 1742/1107/1.07 bln NYSE Dec/Adv/Vol 1927/1250/585 mln

12:30 pm : The indices have made some gains since the last update, but continue to trade modestly below the unchanged mark.  There has been a notable pickup in buying interest in the S&P 500 Retailing Index (+0.6%).

In currency trading, the dollar is down 0.35% despite making a 1.2% gain against the Canadian loonie. The roughly 0.6% decline against the euro and Japanese yen, which combined make more than 70% of the DXY Index, offset the gains made against the loonie.DJ30 -20.56 NASDAQ -5.95 SP500 -4.48 NASDAQ Dec/Adv/Vol 1767/1051/988 mln NYSE Dec/Adv/Vol 1962/1188/534 mln

12:00 pm : The major indices have spent the entirety of the session in negative territory as financials continue to weigh on the broader market. Currently, the stock market is off its lows, but is trading with modest losses.

As was the case yesterday, the financial sector (-1.7%) is the main laggard following some negative analyst reports. JPMorgan cut its earnings estimate on the four largest securities firms on Wall Street. Punk Ziegel downgraded several brokers to Sell from Market Perform, saying that it will take some time for the companies to recover and reestablish their records.

In corporate news, Finland-based Nokia (NOK 38.98, -1.27) added to the market's negative bias after it said it sees the average price of cellphones falling.

Dow component Merck (MRK 58.71, -0.06) announced full-year earnings guidance for 2007 and 2008 that was below analysts' estimates. Shares remain in the red, but are off their lows reached in the early-going.

On a positive note, Dell (DELL 23.94, flat) announced that its board of directors authorized $10 billion in repurchases of common stock. At yesterday's closing price, the authorization would enable to Dell to repurchase nearly 20% of its outstanding stock. Dell said it will resume share repurchases this week.  Shares were up in early trading, but have since slipped.

Crude is down 1.6% to $87.86 on speculation that OPEC will decide to increase output at its meeting tomorrow. The energy sector (-0.9%) is a laggard as it falls in conjunction with crude prices.

Four sectors are in the green at midday, with utilities (+0.5%) outperforming on a relative basis.

There are no economic reports or Federal Reserve speeches today. DJ30 -53.65 NASDAQ -13.09 SP500 -9.05 NASDAQ Dec/Adv/Vol 1821/954/850 mln NYSE Dec/Adv/Vol 2064/1056/459 mln

11:35 am : The stock market continues to trade modestly below the unchanged mark.  Five of the ten economic sectors are in the green, although none of the sectors are posting a large enough gain to offset the weakness in financials (-1.8%) and energy (-0.8%).

Shares of EchoStar Communications (DISH 39.10, -3.29) are getting hammered. Although there is not a specific news item to account for the weakness, there was a Janco note that suggests a bid from AT&T (T 38.36, +0.08) is unlikely. The note stated that since AT&T and Dish are both bidding in the 700 MHZ auction, they can not speak with one another to prevent collusion, which would rule out a bid in the near future.DJ30 -39.59 NASDAQ -10.49 SP500 -7.87 NASDAQ Dec/Adv/Vol 1715/1005/728 mln NYSE Dec/Adv/Vol 1973/1103/383 mln

11:00 am : The major indices make it to just below the unchanged mark, but then retreat a bit.  The energy sector (-1.0%) continues to slide as it falls in conjunction with crude oil.

Amex Airline Index (1.2%) is underperforming this session, despite crude oil's sharp decline (-1.9% to $87.63). One factor underpinning the weakness is at the Calyon U.S. Airline Conference Delta (DAL 18.74, -0.84) said that it may face a loss in the fourth quarter due to high crude prices. Yesterday, Lehman Brothers cut its price target on several airline stocks citing higher energy prices. DJ30 -30.97 NASDAQ -7.76 SP500 -6.90 NASDAQ Dec/Adv/Vol 1649/1015/584 mln NYSE Dec/Adv/Vol 1951/1077/288 mln

10:35 am : After heading sideways for most of the past half-hour, a recent pickup in buying interest sends the major indices to their best levels of the session. Four of the ten economic sectors are now in the green.

The small-cap Russell 2000 Index is trailing its large-cap counterparts in the S&P 500.  The decline in November hit the Russell 2000 especially hard, sending it down 3.5% year-to-date.DJ30 -16.82 NASDAQ -4.11 R2K -0.7% SP500 -4.92 NASDAQ Dec/Adv/Vol 1680/909/434 mln NYSE Dec/Adv/Vol 2109/864/196 mln

10:00 am : The stock market has pared some of its opening losses, but remains in the red, as the tech sector (+0.3%) recovers into positive territory.

Eight of the ten economic sectors are in negative territory.  Financials (-1.8%), which were the main laggards yesterday, are once again under pressure in the wake of Punk Ziegel downgrades and JPMorgan cutting earnings estimates. 

Crude oil prices have retreated 1.2% to $88.21 per barrel ahead of OPEC's meeting tomorrow, Dec. 5.  At its last meeting, OPEC decided to raise output by 500,000 barrels a day.DJ30 -34.87 NASDAQ -9.29 SP500 -6.89 NASDAQ Dec/Adv/Vol 1767/586/220 mln NYSE Dec/Adv/Vol 2143/619/89 mln

09:45 am : The stock market opened how yesterday ended, on a lower note.  Several factors are contributing to the negative bias, including disappointing guidance from Merck (MRK) and JPMorgan trimming its earnings estimate on Merrill Lynch (MER), Morgan Stanley (MS), Goldman Sachs (GS) and Lehman Brothers (LEH).  Meanwhile, Punk Ziegel downgraded several brokerages to Sell from Market Perform.

On a positive note, Dell (DELL) announced its board of directors has authorized a $10 billion stock repurchase program.

The Bank of Canada unexpectedly cut its target rate by 25 basis points.  The bank cited that inflation over the next several months should be lower than previously expected.  The U.S. dollar strengthened against the Canadian dollar, otherwise known as the loonie, on news of the cut. DJ30 -62.18 NASDAQ -18.04 SP500 -10.21

09:15 am : S&P futures vs fair value: -7.0. Nasdaq futures vs fair value: -15.0. 

09:00 am : S&P futures vs fair value: -7.0. Nasdaq futures vs fair value: -12.0.  Futures get a modest boost as news that Dell’s (DELL) Board of Directors has authorized $10 bln in repurchases of common stock hits the wires.  Dell said it will resume the share repurchase program this week.

08:30 am : S&P futures vs fair value: -8.0. Nasdaq futures vs fair value: -14.8.  Early indications continue to suggest a significantly lower open.  Bloomberg.com reports that Goldman Sachs has cut its S&P 500 earnings estimates for 2007 and 2008 to account for profit shortfalls in the banking industry.  There isn’t any economic data today.

07:59 am : S&P futures vs fair value: -9.0. Nasdaq futures vs fair value: -16.3.  Futures suggest stocks will open on a low note.  Disappointing guidance from bellwether companies, Nokia (NOK) and Merck (MRK), has served as a buying restraint. Separately, Punk Ziegel is cutting its ratings on Goldman Sachs (GS), Bear Stearns (BSC) and Lehman Bros. (LEH) to Sell from Market Perform.   On a related note, J.P. Morgan cut its FY08 EPS estimates on U.S. investment banks.