Interdum stultus opportuna loquitur...

Friday, August 27, 2004

Oh Magoo, You've done it again...

Note - from June 24th 2009, this blog has migrated from Blogger to a self-hosted version. Click here to go straight there.

Another day, another massive repurchase, and yet ... almost no response from Madame Market.

The Fed pumped $11 bill in an overnight repurchase agreement, with T-backed issuance of $9.726 billion. That ought to have been worth at least five or six points on the "Buy at Midnight for the Repo Pump" strategy. From midnight to 12:15 a.m. (proper, Aussie time) the S&P futures rose three points, so the "broad" outline worked, but nowhere near as well as it ought to have.

Before the market, the US statistical authorities released a slightly-less-fictional account of U.S. GDP. This was a revision to the"advance" estimate, and showed a reduction relative to what they previously tried to convince us was the GDP growth rate. Instead of 3.5% (annualised) they now claim that the actual result was only 2.7% (again, annualised).

Greenspan also waffled about something - it's now unusual for him not to open his idiot yapper somewhere during the session. I don't bother to even read what he says; after all if the guy had any brains he would be earning a fortune in the private sector rather than sucking from the public teat. He was a failure as a private consultant, and he has been a failure as Fed Chairman.

Anyhow - the response to both the data and Greenspan's remarks were a collective "Whoop-de-doo".

The market didn't think much of any of it; it opened weak and then meandered around like a drunk; after lunch there was a bit of a push to a new high for the day, but it all happened on such feeble volume that they may as well have switched the machines off.

The Dow Jones Industrial Average gained 21.6 points (0.21%), closing out the day at 10195.01 points; the broader S&P500 Index gained 2.68 points (0.24%), finishing the session at 1107.77.

In Techland things were even brigher with the Nasdaq Composite gained 9.17 points (0.49%), finishing at 1862.09. Larger-cap techs fared slightly worse with the Nasdaq100 Index adding 4.58 points (0.33%), to end at 1388.56 points.

The broader stock market measures were more bullish than the Dow: NYSE Composite Index gained 15.73 points (0.24%), closing at 6455.52, while the broadest measure of US equities, the Wilshire 5000, posting a gain of 33.39 points (0.31%), finishing the session at 10755.02

NYSE Volume was pitiful, with 0.85 billion shares traded, while Nasdaq Volume was well below average, with 1.01 billion shares crossing the tape.

Dow Jones Industrial Average10195.0121.60.21%
S&P500 Index1107.772.680.24%
Nasdaq Composite1862.099.170.49%
Nasdaq100 Index1388.564.580.33%
NYSE Composite6455.5215.730.24%
Wilshire 500010755.0233.390.31%
NYSE Volume0.85bn--
Nasdaq Volume1.01bn--
US 30-year bond yield5.02%0%-0.06%

On the NYSE advancing issues outpaced decliners by 2235 to 1029, for yet another single-day A/D reading of over 1100. Nasdaq gainers likewise outpaced losers by a wide margin, 1872 to 1109.

NYSE advancing volume outpaced volume in decliners by more than 2:1, 557.15 to 271.74, nd the tilt was even stronger on the Nasdaq with up volume exceeding volume in decliners by 308.81 to 135.9.

61 NYSE stocks posted new 52-week highs, and 12 posted new 52-week lows. On the Nasdaq there were 32 stocks which posted new 52-week highs, and 29 hitting new 52-week lows.

Advancing Volume (m)557.15308.81
Declining Volume (m)271.74135.9
New Highs6132
New Lows1229
Equity Call Volume (m)1.42-0.28-16.33%
Equity Put Volume (m)0.99-0.20-16.53%
CBOE Volatility Index14.71-0.2-1.34%
CBOE Nasdaq Market Volatility Index21.27-0.33-1.53%

Bonds had a relatively flat day, with the benchmark US 30-year bond yield unchanged at 5.018%. The rest of the yield curve was similarly unchanged (or ans near to unchanged as makes no odds).

UST 2Y (yld)2.4760-0.16%
UST 5Y (yld)3.4220.010.23%
UST 10Y (yld)4.22800.12%
UST 30Y (yld)5.01800%
The Banks Index gained 0.32 points (0.32%), ending the week at 98.97; within the index,
  • the Derivative King - JPMorganChase gained $0.27 (0.68%) to close at $39.72; and
  • Citigroup gained $0.26 (0.56%) to close at $46.72

The Broker-dealer Index lost 0.44 points (0.35%), finishing the session at 126.91; the ticket clippers lined up as follows -

  • Merrill Lynch lost $0.29 (0.56%) to $51.46
  • Morgan Stanley Dean Witter lost $0.42 (0.81%) at $51.57
  • Goldman Sachs lost $0.64 (0.7%) to close at $90.48
  • Lehman Brothers lost $0.89 (1.18%) to close at $74.51

The Philadelphia SOX (Semiconductor) index gained 1.94 points (0.51%), finishing the week at 382.34

  • Triquint gained $0.03 (0.75%) to close the week at $4.03
  • Micron Technology gained $0.05 (0.42%) ending at $11.88
  • Intel gained $0.25 (1.15%) to $22.02
  • Altera gained $0.12 (0.63%) to finish at $19.30
  • JDS Uniphase lost $0.00 (0%) closing at $3.11

Other indices popular with the beta-chasers were up, with the

  • Biotech Index gained 8.45 points (1.7%), ending at 506.49
  • the Hi-Tech Index gained 1.34 points (0.31%), to 429

Gold weakened by $3.80 (-1.00%), however the Gold Bugs Index gained 2.14 points (1.05%), finishing the session at 205.32. Silver lost 9 cents an ounce to close at $6.60 an ounce, however the Gold and Silver Index (XAU) gained 1.07 points (1.15%), finishing the session at 94.37.

PHLX Gold and Silver Index94.371.071.15%
AMEX Gold BUGS Index205.322.141.05%

Oil lost ground slightly, losing just 0.04 cents per barrel (although it had lost 30 cents mid-session). This was a non-event for stocks which are supposed to "depend" on the price of oil... the Oil and Gas Index (XOI) gained 6.61 points (1.06%), finishing the session at 631.69, while the Oil service stocks (OSX) Index gained 0.58 points (0.53%), closing out the week at 109.1.

Reuters CRB275.250.50.18%
Crude Oil Light Sweet43.1-0.04-0.09%
AMEX Oil Index631.696.611.06%
Oil Service Index109.10.580.53%
US Dollar Index89.80.440.49%
Australia Dollar0.70300%
Swiss Franc1.28250.010.86%

France's benchmark CAC-40 Index gained 19.4 points (0.53%), finishing the session at 3649.24. The German DAX-30 Index gained 18.9 points (0.49%), finishing the session at 3851.18, and in the UK, the FTSE-100 Index gained 36.2 points (0.81%), finishing the session at 4490.1