Note - from June 24th 2009, this blog has migrated from Blogger to a self-hosted version. Click here to go straight there.
Federal Reserve Open Market Operations
The Fed's Open Market Operations desk performed 1 repurchase operation.
- a $3billion, weekend repurchase entirely in T-backed collateral.
Major US Indices
The DJIA gained 30.96 points (0.29%), closing out the day at 10785.22 points; within the blue-chip index, 15 stocks rose, the biggest gainers being Merck (MRK +13.03% to $32.61) and Pfizer (PFE +6.94% to $26.80).
The big news there was that Merck might put Vioxx back on the market.
Now think hard about this: d'you think that folks are going to be lining up to buy the damn drug, given that it's been shown to off a bunch of people?
And do you think that Pfizer is going to be dumb enough to follow suit (and still avoid lawsuits over the fact that Zoloft makes teenagers think a lot about offing themselves and others)?
Well, Pfizer managemtn might just be stupid enough to try and follow suit... but the idea about people not buying these types of pharmaceuticals when they're put back on the shelves still stands.
This is a "nuffie bounce" if I ever saw one, and puts over both stocks are going straight onto the watchlist.
Between PFE and MRK, they added 40 Dow points. Add in du Pont (the next biggest Dow gainer, DD up 3.1%) and you get 52 Dow points.
Losers in the Dow numbered 15 and were led by Boeing (BA -1.64% to $52.78) and Amer International Group (AIG -1.08% to $68.93); Volume traded was tilted in favour of the gainers by304.6m shares to 195.8m.
The broader S&P500 gained 0.84 points (0.07%), ending the day at 1201.59. Over at Times Square, the Nasdaq Composite declined 2.72 points (0.13%), to close at 2058.62, while larger-cap technology issues fared worse with the Nasdaq100 losing 3.89 points (0.26%), to end at 1515.4 points.
NYSE Volume was chunky, with 1.55 billion shares changing hands, while Nasdaq Volume was chunky, with 1.63 billion shares being shifted from one online brokerage account to another (and back again, in all likelihood).
| Index | Close | Gain(Loss) | % |
| DJIA | 10785.22 | 30.96 | 0.29% |
| S&P500 | 1201.59 | 0.84 | 0.07% |
| Nasdaq Composite | 2058.62 | -2.72 | -0.13% |
| Nasdaq100 | 1515.4 | -3.89 | -0.26% |
| NYSE Volume | 1.55bn | - | - |
| Nasdaq Volume | 1.63bn | - | - |
Bellwethers
My 9-stock "bellwethers" group fell by an average of 0.82%; again, the Toxic Twins of Mortgage Doom were the principal contributors.
Note also that a put position in Citigroup (in March05 $47.50 puts) was established: I'll assume that entry was at $45, which was the offer when the e-mail was sent out - entry at $40 was possible for most of the night (they closed at $40 too) but the assumption of entry at the offer is the most transparent (and this position is not going to be affected much by trying to finagle one tick out of the market).
- General Electric (GE) -$0.15 (0.42%) to $35.88;
- Citigroup (C) -$0.23 (0.47%) to $48.57;
- Wal Mart (WMT) +$0.02 (0.04%) to $52.72;
- I.B.M. (IBM) -$0.48 (0.51%) to $93.27;
- Intel (INTC) +$0.39 (1.65%) to $24.02;
- Cisco Systems (CSCO) -$0.15 (0.86%) to $17.30;
- eBay (EBAY) -$0.26 (0.61%) to $42.46;
- Fannie Mae (FNM) -$1.71 (2.82%) to $58.90; and
- Freddie Mac (FRE) -$2.17 (3.4%) to $61.73.
Market Breadth & Internals
NYSE declining issues beat out advancers by 2147 to 1217, for a single-day A/D reading of -930; and Nasdaq losers exceeded gainers by 1715 to 1351.
On the NYSE declining volume was greater than volume in advancing issues by 783.6 to 738.6 million shares; On the Nasdaq declining volume exceeded volume in advancing issues by 907.4 to 696.8 million shares.
178 NYSE-listed stocks rose to new 52-week highs, and 17 posted fresh 52-week lows, while on the Nasdaq there were 71 stocks that hit new 52-week highs, and 44 which fell to fresh 52-week lows.
| NYSE | Nasdaq | |
| Advancers | 1217 | 1351 |
| Decliners | 2147 | 1715 |
| Advancing Volume (m) | 738.59 | 696.78 |
| Declining Volume (m) | 783.63 | 907.45 |
| New Highs | 178 | 71 |
| New Lows | 17 | 44 |
Market Sentiment
| Index | Close | Gain(Loss) | % |
| CBOE Volatility Index | 11.18 | -0.59 | -5.01% |
| CBOE Nasdaq Volatility Index | 17.87 | 0.34 | 1.94% |
| Equity Put-Call Ratio | 0.76 | -0.06 | -7.32% |
| 10-day PCR | 0.68 | 0.02 | 2.53% |
| SPX-VIX Ratio | 107.48 | 5.4589 | 5.35% |
Bond Market Analysis
Bonds fell hard everywhere except the very shortest maturities. As I posted early in the session, the long bond fell hard (at one stage, it was down over a point), contributing nicely to additional profits on the short indicated at (or above, if onewas lucky) 117.
The yield on the benchmark 30-year Treasury bond added another 7.1 basis points to 4.644%. Both it and the ten-year have added over a quarter-point in yield since the start of the week, which is very danger for those on the wrong side of the market.
| Index | Close | Gain(Loss) | % |
| UST 13wk (yld) | 2.552 | 0 | 0% |
| UST 2Y (yld) | 3.42 | 0.07 | 2.09% |
| UST 5Y (yld) | 3.855 | 0.08 | 2.07% |
| UST 10Y (yld) | 4.26 | 0.075 | 1.79% |
| UST 30Y (yld) | 4.644 | 0.071 | 1.55% |
The Banks Index lost 0.98 points (0.98%), ending the day at 99.45; within the index,
- Golden West Financial (GDW) -$1.40 (2.25%) to $60.71;
- Wachovia (WB) -$1.07 (1.98%) to $52.95;
- Keycorp (KEY) -$0.49 (1.47%) to $32.93;
- North Fork Bancorp (NFB) -$0.42 (1.45%) to $28.55; and
- Mbna Corp (KRB) -$0.37 (1.44%) to $25.36.
The Broker-dealer Index shed 2.48 points (1.66%), closing at 147.17; the ticket clippers lined up as follows -
- Morgan Stanley (MWD) -$1.96 (3.29%) to $57.65;
- Jeffries Group (JEF) -$0.96 (2.48%) to $37.75;
- Bear Stearns (BSC) -$2.43 (2.42%) to $97.84;
- Lehman Brothers (LEH) -$1.99 (2.17%) to $89.66; and
- Merrill Lynch (MER) -$1.11 (1.85%) to $58.86.
The Philadelphia SOX (Semiconductor) index lost 2.05 points (0.48%), to end the session at 427.73
- Freescale Semiconductors (FSL-B) -$0.36 (1.9%) to $18.57;
- KLA-Tencor (KLAC) -$0.91 (1.84%) to $48.67;
- Broadcom (BRCM) -$0.52 (1.61%) to $31.85;
- ST Microelectronic (STM) -$0.18 (1.06%) to $16.79; and
- Novellus Systems (NVLS) -$0.30 (1.03%) to $28.73.
Gold & Silver Markets
Gold fell by $0.10 (0.02%) to close at $428.40 per ounce.
Gold Bugs Index lost 1.07 points (0.51%), to end the session at 209.89
- Golden Star (GSS) -$0.12 (3.87%) to $2.98;
- Meridian Gold (MDG) -$0.34 (1.68%) to $19.87;
- Eldorado Gold (EGO) -$0.05 (1.58%) to $3.12;
- Iamgold (IAG) -$0.10 (1.34%) to $7.35; and
- Kinross Gold (KGC) -$0.07 (1.12%) to $6.19.
Silver rose $0.05 (0.64%) to close at $7.43 per ounce. The Gold and Silver Index (XAU) lost 0.15 points (0.16%), at 96.29 points.
- Durban Rooderpoert Deep (DROOY) -$0.10 (6.54%) to $1.43;
- Meridian Gold (MDG) -$0.34 (1.68%) to $19.87;
- Kinross Gold (KGC) -$0.07 (1.12%) to $6.19; and
- Gold Fields (GFI) -$0.08 (0.68%) to $11.67.
| Index | Close | Gain(Loss) | % |
| Gold | 428.4 | -0.1 | -0.02% |
| Silver | 7.432 | 0.047 | 0.64% |
| PHLX Gold and Silver Index | 96.29 | -0.15 | -0.16% |
| AMEX Gold BUGS Index | 209.89 | -1.07 | -0.51% |
Oil Market
Oil was firmer, rising by $0.75 per barrel, closing at $48.35 per barrel. The Oil and Gas Index (XOI) gained 14.79 points (1.82%), to 827 points.
- Occidental Petroleum (OXY) +$1.96 (2.97%) to $67.87;
- Unocal (UCL) +$1.42 (2.79%) to $52.30; and
- Marathon Oil (MRO) +$1.05 (2.41%) to $44.53.
The Oil service stocks (OSX) Index added 2.18 points (1.59%), to 139.19
- BJ Services (BJS) +$2.06 (4.34%) to $49.55;
- Nabors Industries (NBR) +$1.85 (3.34%) to $57.20; and
- Global Industries (GLBL) +$0.26 (2.97%) to $9.00.
| Index | Close | Gain(Loss) | % |
| Reuters CRB | 290.66 | 0.67 | 0.23% |
| Crude Oil Light Sweet | 48.35 | 0.75 | 1.58% |
| Heating Oil | 1.3493 | 0.0363 | 2.76% |
| Natural Gas | 5.908 | -0.027 | -0.45% |
| Unleaded Gas | 1.2634 | 0.0269 | 2.18% |
| AMEX Oil Index | 827 | 14.79 | 1.82% |
| Oil Service Index | 139.19 | 2.18 | 1.59% |
Currency Markets
| Index | Close | Gain(Loss) | % |
| US Dollar Index | 83.49 | 0.01 | 0.01% |
| Euro | 1.3028 | -0.0038 | -0.29% |
| Yen | 105.63 | 0.13 | 0.12% |
| Sterling | 1.8945 | -0.0001 | -0.01% |
| Australian Dollar | 0.789 | 0.0015 | 0.19% |
| Swiss Franc | 1.1807 | -0.0035 | -0.3% |
| Canadian Dollar | 0.811 | -0.002 | -0.25% |
Euro-Zone Indices
| Country | Index | Last | % | % |
| France | CAC 40 | 4029.02 | 23.52 | 0.59% |
| Germany | DAX-30 | 4359.47 | -10.21 | -0.23% |
| UK | FTSE 100 | 5057.2 | -0.2 | 0% |
| Italy | MIBTel | 24595 | -143 | -0.58% |
European Index Internals
| CAC-40 | DAX-30 | FTSE-100 | |
| Advancers | 26 | 16 | 47 |
| Decliners | 12 | 14 | 48 |
| Advancing Volume (m) | 180.3 | 46 | 626.7 |
| Declining Volume (m) | 60.8 | 71.1 | 1110.7 |
Euro STOXX-50 Largest Volume
| Name | Close (€) | Change | % | Volume |
| Vivendi Universal | 24.45 | -0.35 | -1.41% | 6670083 |
| Unilever Cert | 50.9 | 0.5 | 0.99% | 4138553 |
| Unicredito | 4.485 | 0 | 0% | 165342 |
| Total | 176.3 | 2.1 | 1.21% | 4499076 |
| Tim | 5.278 | 0.01 | 0.13% | 89379 |
CAC-40 Largest Gainers
| Name | Close (€) | Change | % | Volume |
| Pinault | 83.55 | 2.4 | 2.96% | 1004882 |
| L.V.M.H. | 57.2 | 1.35 | 2.42% | 2834477 |
| Groupe Danone | 74 | 1.45 | 2% | 2032902 |
| Credit Agricole | 22.93 | 0.41 | 1.82% | 4190143 |
| Sanofi-Aventis | 58.55 | 1 | 1.74% | 9132004 |
CAC-40 Largest Decliners
| Name | Close (€) | Change | % | Volume |
| Vinci | 113.3 | -1.8 | -1.56% | 687292 |
| Vivendi Universal | 24.45 | -0.35 | -1.41% | 6670083 |
| ST Microelectronics | 12.82 | -0.18 | -1.38% | 7183287 |
| Cap Gemini | 25.69 | -0.31 | -1.19% | 2172983 |
| Publicis Groupe | 23.37 | -0.25 | -1.06% | 1236709 |
FTSE Largest Gainers
| Name | Close (£) | Change | % | Volume |
| Yell Group | 4.7425 | -0.01 | -0.16% | 4556777 |
| Xstrata | 10.525 | -0.11 | -0.99% | 6196290 |
| WPP Group | 5.88 | -0.09 | -1.51% | 6218250 |
| Wolseley | 11.225 | 0.13 | 1.13% | 4093365 |
| William Hill | 6.05 | -0.02 | -0.25% | 1515429 |
FTSE Largest Decliners
| Name | Close (£) | Change | % | Volume |
| 3I Group | 7.09 | -0.06 | -0.77% | 3466474 |
| Alliance & Leics | 9.475 | 0.04 | 0.37% | 1014710 |
| Alliance Unichem | 7.785 | 0.04 | 0.52% | 787043 |
| Allied Domecq | 5.35 | 0.02 | 0.38% | 15593583 |
| Amvescap | 3.585 | -0.01 | -0.35% | 4608567 |
DAX-30 Largest Gainers
| Name | Close (€) | Change | % | Volume |
| Linde | 52.44 | 1.32 | 2.58% | 962490 |
| MAN | 32.72 | 0.81 | 2.54% | 3194156 |
| Deutsche Boerse | 52.95 | 1.21 | 2.34% | 2835748 |
| HypoVereinsbank | 16.94 | 0.29 | 1.74% | 5383553 |
| Bayer | 26.75 | 0.33 | 1.25% | 3984653 |
DAX-30 Largest Decliners
| Name | Close (€) | Change | % | Volume |
| Deutsche Lufthansa | 10.73 | -0.2 | -1.83% | 5911084 |
| Allianz | 92.81 | -1.41 | -1.5% | 2990821 |
| Tui | 18.62 | -0.26 | -1.38% | 1605377 |
| Deutsche Bank | 66.71 | -0.69 | -1.02% | 4909590 |
| E.On | 70.5 | -0.65 | -0.91% | 3447725 |
