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Federal Reserve Open Market Operations
The Fed's Open Market Operations desk performed 2 repurchase operations.
- a $6.75billion, 6-day repurchase with $5.75billion in T-backed collateral ; and
- a $9billion, 14-day repurchase with $7.468billion in T-backed collateral .
Major US Indices
The market washed off the oversold condition that had worked itself up on hourly charts, but is not through falling just yet; it has rolled over too far on the daily chart to escape gravity for the moment. That said, it is taking progressively larger quantities of repurchase grease to get the Dowager to lift her rusty old skirts. The timing was - yet again - spot on, with large repo resulting in a rideable low at 10 a.m. NY time. In fact the low of the session was set at 10 a.m. precisely, so the "repo pump" hypothesis resulted in a trade that was not underwater for even so much as a minute.
Journalists love the phrase "on the back of"... then a single dot-point: you know... "Markets rose on the back of rising earnings expectations" or some other such waffle. The "Why?" of that, is that it makes for slightly more interesting reading than just "The Fed repo'd a total of 15 bill, so intraday market action was upward for the time period starting at 10 a.m."
Anyhow... 10 a.m. was the low, and from there the Dow rose 50 points in 25 minutes, while the S&P rose about 6 in the same time. Then all the indices softened (but never got back to their lows) and went nowhere much for quite a while. Sure, they were all rising off their lows, but there seemed to be no traction. From 1 p.m. onwards the indices just all wafted higher and higher.
By the close, the DJIA had added 75 points (0.7%), closing out the day at 10748.79 points; within the blue-chip index, 23 stocks rose, the biggest gainers being Caterpillar (CAT +2.98% to $93.16) and Exxon Mobil (XOM +2.88% to $61.13). Losers in the Dow numbered 7 and were led by Walt Disney (DIS -1.75% to $28.15) and American International Group (AIG -0.67% to $68.19); Volume traded was tilted in favour of the gainers by 330.8m shares to 65m.
The broader S&P500 added 9.4 points (0.79%), to end the session at 1200.2. Over at Times Square, the Nasdaq Composite added 20.45 points (1.01%), to close at 2051.7, while larger-cap technology issues fared better with the Nasdaq100 adding 20.62 points (1.38%), to end at 1517.71 points.
NYSE Volume was chunky, with 1.52 billion shares changing hands, while Nasdaq Volume was super-chunky (over 2 bill), with 2.05 billion shares traded.
| Index | Close | Gain(Loss) | % |
| DJIA | 10748.79 | 75 | 0.7% |
| S&P500 | 1200.2 | 9.4 | 0.79% |
| Nasdaq Composite | 2051.7 | 20.45 | 1.01% |
| Nasdaq100 | 1517.71 | 20.62 | 1.38% |
| NYSE Volume | 1.52bn | - | - |
| Nasdaq Volume | 2.05bn | - | - |
Bellwethers
My 9-stock "bellwethers" group rose by an average of 0.47%, although it is interesting to note that Citigroup didn't participate.
- General Electric (GE) +$0.50 (1.43%) to $35.55;
- Citigroup (C) -$0.08 (0.17%) to $48.30;
- Wal Mart (WMT) -$0.14 (0.27%) to $51.46;
- I.B.M. (IBM) +$0.54 (0.59%) to $92.64;
- Intel (INTC) +$0.39 (1.67%) to $23.70;
- Cisco Systems (CSCO) -$0.10 (0.58%) to $17.18;
- eBay (EBAY) +$0.53 (1.27%) to $42.37;
- Fannie Mae (FNM) -$0.21 (0.37%) to $56.95; and
- Freddie Mac (FRE) +$0.39 (0.65%) to $60.50.
Market Breadth & Internals
NYSE advancing Issues exceeded decliners by 2301 to 1070 for a single-day A/D reading of 1231; Nasdaq gainers trumped losers by 1905 to 1217.
NYSE advancing volume exceeded volume in decliners by 1082.2 to 400.6 million shares; Nasdaq advancing volume was greater than volume in decliners by 1412.9 to 614.2 million shares.
197 NYSE-listed stocks rose to new 52-week highs, and 34 posted fresh 52-week lows, while on the Nasdaq there were 84 stocks that hit new 52-week highs, and 65 which fell to fresh 52-week lows.
| NYSE | Nasdaq | |
| Advancers | 2301 | 1905 |
| Decliners | 1070 | 1217 |
| Advancing Volume (m) | 1082.24 | 1412.94 |
| Declining Volume (m) | 400.58 | 614.2 |
| New Highs | 197 | 84 |
| New Lows | 34 | 65 |
Market Sentiment
| Index | Close | Gain(Loss) | % |
| CBOE Volatility Index | 11.57 | -0.86 | -6.92% |
| CBOE Nasdaq Volatility Index | 17.61 | -0.87 | -4.71% |
| Equity Put-Call Ratio | 0.54 | -0.21 | -28% |
| 10-day PCR | 0.66 | -0.03 | -4% |
| SPX-VIX Ratio | 103.73 | 7.9333 | 8.28% |
Bond Market Analysis
Bonds were down across the yield curve. There was an early pop following the Durable Goods orders numbers. The Durables number initially looked terrible based on the headline fall of 0.9% (consensus expected an increase of 0.3%), but then - once the nuffies' stops had been tickled and professional data-crunchers looked at the number that mattered within the report (repeat after me... non-defence capex ex aircraft) they saw a rise of 2.9%. Now I may not believe that the number represents anything worth a damn, but for "data-traders" - the sorts of dills who take Government propaganda at face value - it was a signal to sell bonds.
So anyhow - the long bond ended up pretty much unchanged by the end of all the furore, with the 30-year MArch bond future (ZB05H) settling at 113 & 28/32 and the yield on the benchmark 30-year Treasury bond ticking up ever so slightly to 4.663%.
| Index | Close | Gain(Loss) | % |
| UST 13wk (yld) | 2.637 | 0 | 0% |
| UST 2Y (yld) | 3.47 | 0.04 | 1.17% |
| UST 5Y (yld) | 3.895 | 0.03 | 0.85% |
| UST 10Y (yld) | 4.281 | 0.013 | 0.3% |
| UST 30Y (yld) | 4.663 | 0.002 | 0.04% |
The Banks Index gained 0.47 points (0.48%), ending the day at 99.38; within the index,
- Golden West Financial (GDW) +$1.31 (2.18%) to $61.42;
- M&T Bank Corp (MTB) +$1.53 (1.58%) to $98.57;
- Washington Mutual (WM) +$0.57 (1.38%) to $41.93;
- PNC Financial Services (PNC) +$0.71 (1.37%) to $52.36; and
- Keycorp (KEY) +$0.42 (1.29%) to $32.93.
The Broker-dealer Index added 0.38 points (0.26%), closing at 145.53; the ticket clippers lined up as follows -
- Legg Mason (LM) +$1.24 (1.57%) to $80.20;
- E*Trade (ET) +$0.13 (1.01%) to $12.98;
- Ameritrade (AMTD) +$0.10 (0.96%) to $10.55;
- Jeffries Group (JEF) +$0.29 (0.78%) to $37.26; and
- Raymond James (RJF) +$0.23 (0.78%) to $29.80.
The Philadelphia SOX (Semiconductor) index rose 10.13 points (2.39%), closing at 434.15
- Advanced Micro Devices (AMD) +$1.02 (6.14%) to $17.62;
- Novellus Systems (NVLS) +$1.34 (4.75%) to $29.57;
- Infineon Tech (IFX) +$0.33 (3.19%) to $10.66;
- Maxim Integrated (MXIM) +$1.19 (2.85%) to $42.88; and
- Altera (ALTR) +$0.56 (2.8%) to $20.59.
Gold & Silver Markets
[Commentary]
Gold fell by $1.1 (0.25%) to close at $434.9 per ounce.
Gold Bugs Index lost 2.15 points (0.99%), at 214.62
- Coeur d'Alene (CDE) -$0.16 (3.77%) to $4.08;
- Hecla Mining (HL) -$0.22 (3.74%) to $5.67;
- Iamgold (IAG) -$0.24 (3.26%) to $7.12;
- Eldorado Gold (EGO) -$0.07 (2.26%) to $3.03; and
- Meridian Gold (MDG) -$0.37 (1.81%) to $20.07.
Silver fell by $0.06 (0.8%) to close at $7.4 per ounce. The Gold and Silver Index (XAU) lost 1.16 points (1.16%), at 98.53 points.
- Durban Rooderpoert Deep (DROOY) -$0.38 (25.5%) to $1.11;
- Placer Dome (PDG) -$1.18 (6.23%) to $17.75;
- Meridian Gold (MDG) -$0.37 (1.81%) to $20.07; and
- Anglogold Ashanti (AU) -$0.64 (1.75%) to $35.88.
| Index | Close | Gain(Loss) | % |
| Gold | 434.9 | -1.1 | -0.25% |
| Silver | 7.398 | -0.06 | -0.8% |
| PHLX Gold and Silver Index | 98.53 | -1.16 | -1.16% |
| AMEX Gold BUGS Index | 214.62 | -2.15 | -0.99% |
Oil Market
[Commentary]
Oil was firmer, rising by $0.20 per barrel, closing at $51.41 per barrel. The Oil and Gas Index (XOI) posted a rise of 12.69 points (1.52%), closing at 847.58
- Exxon Mobil (XOM) +$1.71 (2.88%) to $61.13;
- Amerada Hess (AHC) +$2.78 (2.86%) to $99.90; and
- ConocoPhillips (COP) +$2.98 (2.78%) to $110.18.
The Oil service stocks (OSX) Index advanced 1.75 points (1.26%), ending the day at 141.05
- Global Industries (GLBL) +$0.41 (4.3%) to $9.95;
- Varco International (VRC) +$1.35 (3.89%) to $36.01; and
- GlobalSantaFe (GSF) +$0.76 (2.05%) to $37.78.
| Index | Close | Gain(Loss) | % |
| Reuters CRB | 298.04 | -1.12 | -0.37% |
| Crude Oil Light Sweet | 51.41 | 0.2 | 0.39% |
| Heating Oil | 1.464 | -0.0191 | -1.29% |
| Natural Gas | 6.304 | -0.001 | -0.02% |
| Unleaded Gas | 1.28 | -0.0314 | -2.39% |
| AMEX Oil Index | 847.58 | 12.69 | 1.52% |
| Oil Service Index | 141.05 | 1.75 | 1.26% |
Currency Markets
[Commentary]
| Index | Close | Gain(Loss) | % |
| US Dollar Index | 82.9 | 0.18 | 0.22% |
| Euro | 1.32 | -0.0013 | -0.1% |
| Yen | 105.38 | 0.56 | 0.53% |
| Sterling | 1.9099 | 0.0012 | 0.06% |
| Australian Dollar | 0.7864 | 0.0001 | 0.01% |
| Swiss Franc | 1.1685 | 0.0053 | 0.46% |
| Canadian Dollar | 0.8069 | 0.002 | 0.25% |
Euro-Zone Indices
| Country | Index | Last | % | % |
| France | CAC 40 | 3977.67 | 0.48 | 0.01% |
| Germany | DAX-30 | 4304.29 | -6.37 | -0.15% |
| UK | FTSE 100 | 4972.1 | -16.4 | -0.33% |
| Italy | MIBTel | 24085 | 38 | 0.16% |
European Index Internals
| CAC-40 | DAX-30 | FTSE-100 | |
| Advancers | 17 | 13 | 37 |
| Decliners | 21 | 17 | 60 |
| Advancing Volume (m) | 149.8 | 57.3 | 736.3 |
| Declining Volume (m) | 45.6 | 56.6 | 938.6 |
Euro STOXX-50 Largest Volume
| Name | Close (€) | Change | % | Volume |
| Vivendi Universal | 23.91 | 0.2 | 0.84% | 5189638 |
| Unilever Cert | 49.9 | -0.17 | -0.34% | 3112637 |
| Unicredito | 4.395 | -0.01 | -0.2% | 415537 |
| Total | 175.4 | 0.3 | 0.17% | 3811666 |
| Tim | 5.195 | -0.01 | -0.19% | 372989 |
CAC-40 Largest Gainers
| Name | Close (€) | Change | % | Volume |
| Cap Gemini | 27.85 | 1.76 | 6.75% | 8193813 |
| Peugeot | 49.5 | 1.5 | 3.13% | 1905713 |
| Arcelor | 18.49 | 0.54 | 3.01% | 3326216 |
| Renault | 68.45 | 1.45 | 2.16% | 1394070 |
| AXA | 19.86 | 0.37 | 1.9% | 13502708 |
CAC-40 Largest Decliners
| Name | Close (€) | Change | % | Volume |
| Veolia Environ | 25.58 | -0.52 | -1.99% | 2710920 |
| Saint-Gobain | 45.61 | -0.84 | -1.81% | 2871983 |
| Suez | 19.97 | -0.31 | -1.53% | 6680365 |
| Lafarge | 76.5 | -1.15 | -1.48% | 1782868 |
| l'Oreal | 58.85 | -0.6 | -1.01% | 1129304 |
FTSE Largest Gainers
| Name | Close (£) | Change | % | Volume |
| Yell Group | 4.64 | -0.02 | -0.38% | 2266726 |
| Xstrata | 10.45 | 0.05 | 0.48% | 6081890 |
| WPP Group | 5.855 | 0.02 | 0.26% | 14897338 |
| Wolseley | 11.18 | 0.1 | 0.9% | 4635165 |
| William Hill | 5.935 | 0.09 | 1.45% | 2076231 |
FTSE Largest Decliners
| Name | Close (£) | Change | % | Volume |
| 3I Group | 6.965 | 0.04 | 0.51% | 2357784 |
| Alliance & Leics | 8.905 | -0.14 | -1.49% | 4482505 |
| Alliance Unichem | 7.2 | -0.56 | -7.22% | 5246677 |
| Allied Domecq | 5.205 | -0.07 | -1.33% | 6575304 |
| Amvescap | 3.37 | -0.07 | -2.11% | 6640684 |
DAX-30 Largest Gainers
| Name | Close (€) | Change | % | Volume |
| HypoVereinsbank | 17.79 | 0.94 | 5.58% | 19098128 |
| Fresenius Medical | 66.96 | 2.71 | 4.22% | 547408 |
| Tui | 19.02 | 0.43 | 2.31% | 1813488 |
| Infineon Tech | 8 | 0.16 | 2.04% | 15247527 |
| Deutsche Boerse | 53.81 | 0.8 | 1.51% | 3008691 |
DAX-30 Largest Decliners
| Name | Close (€) | Change | % | Volume |
| RWE | 45.03 | -1.57 | -3.37% | 7303477 |
| E.On | 67.27 | -0.91 | -1.33% | 3599560 |
| Henkel | 67.14 | -0.88 | -1.29% | 575248 |
| Schering | 54.26 | -0.64 | -1.17% | 631640 |
| Altana | 46.27 | -0.39 | -0.84% | 294390 |
