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Market Summary USAAMERICASEUROPEASIACURRENCIES Major Market Indexes Industry Indexes International Indexes Sector Performance Rates DJIA 13,671.92    -3.33    -0.02% Nasdaq 2,750.86    -23.90    -0.86% S&P 500 1,514.40    -1.48    -0.10% Dow Util 513.98    +8.93    +1.77% NYSE 10,029.55    +20.25    +0.20% AMEX 2,443.88    +2.96    +0.12% Russell 2000 806.11    -4.74    -0.58% Semcond 452.51    -9.32    -2.02% Gold future 771.00    +5.40    +0.71% 30-Year Bond 4.66%    +0.01    +0.30% 10-Year Bond 4.35%    +0.02    +0.48%  Market Diaries Issues: NYSE Nasdaq Advancing  1,583  1,231 Declining  1,675  1,737 Unchanged  112  117 Total:  3,370  3,085 Issues at: 52-Week High  95  54 52-Week Low  49  114 Volume: Advancing  769,575,000  692,640,000 Declining  827,910,000  2,033,264,000 Unchanged  -1,581,349,000  -2,698,539,000 Total:  16,136,000  27,365,000 10/25/2007 8:00:00 PM Market Screener NYSENASDAQAMEXOTC Most Active by Volume on 10/25/2007 Symbol Last Change Volume EMC 24.45    +1.920 126.05M   IWM 80.76    -0.195 116.69M   CFC 13.07    -0.760 69.07M   AIG 61.79    -2.050 64.33M   C 41.23    -0.590 60.91M   LSI 6.45    -0.640 50.47M   PFE 24.29    +0.310 46.26M   GE 40.16    -0.070 43.91M   MER 60.90    -2.320 41.85M   MOT 19.30    +0.750 40.21M    Add symbols to My Portfolio More...

 

 

As mentioned earlier, range movement in a band expected this week. Let's see if the DJIA indeed repeats this pattern on Fri night.

My guess is, everyone is somewhat expecting the .25% rate cut to materialise anyway in view of the amt of negative news coming out the last few days, just waiting for the big push up.

 

CWQuah Member	Posted: 25-Oct-2007 12:53
x 0 x 0 * Alert Admin	For this week, expect DJIA to range trade between 13500 - 13700. For the coming week, DJIA may start a breakout upwards.

 

Technically, looking at the 3-month Dow chart, the pattern somewhat suggests a reversal appears imminent. And there'e no slumping of the Dow in spite of bad news.

 

Dow Jones Industrial Average ($INDU)13,671.92 -3.33 -0.02% Open: 13,677.85 High: 13,741.26 Low: 13,547.63 Another dressing again? Seem a little too peaceful after all these -ve reportings.

 

 

 

 

U.S. Stocks Decline; Merrill Lynch, Broadcom, Amazon.com Fall


By Lynn Thomasson

Oct. 24 (Bloomberg) -- U.S. stocks dropped for the first time in three days after Merrill Lynch & Co. reported the biggest quarterly loss in its 93-year history and home sales tumbled.

Merrill fell the most since 2002 on $8.4 billion in writedowns from credit-market losses. Broadcom Corp., the maker of chips for Nintendo Co.'s Wii game console, posted its steepest decline in five years after earnings decreased on higher research costs. A profit forecast that may miss some analysts' estimates sent Amazon.com Inc. to its biggest slide in 15 months.

Stocks pared most of their decline late in the day and the Dow Jones Industrial Average recovered from a 206-point drop on speculation the Federal Reserve will cut interest rates before its Oct. 31 meeting. The Standard & Poor's 500 Index lost 3.71, or 0.2 percent, to 1,515.88 after retreating as much as 2 percent. The Dow slipped 0.98 to 13,675.25. The Nasdaq Composite Index sank 24.5, or 0.9 percent, to 2,774.76.

Today was ``very symbolic of what's going to trouble the market,'' said Leo Grohowski, who oversees $162 billion as New York-based chief investment officer at Bank of New York Mellon Wealth Management. ``We may see more pain before we see gain.''

Writedowns sparked by the worst housing slump in 16 years have caused third-quarter profits to decline by an average 25 percent for financial companies in the S&P 500, the poorest performance among 10 industries, according to Bloomberg data. Makers of computer chips have posted an average earnings drop of 2.6 percent on concern consumer spending will decrease amid a slowing economy.

Credit Concern

Treasury two-year note yields retreated to the lowest in more than two years and the dollar fell against the yen after S&P cut Merrill's credit rating and a private report said September sales of previously owned U.S. homes tumbled to the lowest since record keeping began in 1999.

Asian and European shares fell on concern that deepening losses from investments backed by U.S. home loans will reduce bank profits. The Morgan Stanley Capital International World Index slipped 0.3 percent. Europe's Dow Jones Stoxx 600 Index lost 0.6 percent.

Merrill lost $3.90, or 5.8 percent, to $63.22, its lowest since October 2005. Its writedown is the highest of any securities firm. The third-quarter loss of $2.24 billion, or $2.82 a share, compared with net income of $3.05 billion, or $3.17, a year earlier. Merrill's deficit exceeded the average analyst estimate of a loss of 45 cents a share. The company's shares have lost almost a third of their value this year.

Lehman Brothers Holdings Inc., the largest U.S. underwriter of mortgage bonds, declined 85 cents to $57.42. Bear Stearns Cos., the second-biggest U.S. mortgage-bond underwriter, fell $2.62 to $113.54.

`Continued Turmoil'

``I have a hard time understanding how the stock market is going to gain any traction given the continued turmoil in the financial stocks,'' said Tom Wirth, who manages $1.8 billion as senior investment officer at Chemung Canal Trust in Elmira, New York. ``We're going to see continued writeoffs in the next 12 months.''

Lower-than-expected earnings from other financial companies, including Legg Mason Inc. and Moody's Corp., pushed a group of banks, brokerages and real estate companies in the S&P 500 to a 0.8 percent drop.

Legg Mason fell the most in six weeks, declining $2.93, or 3.5 percent, to $80.52. The money manager that oversees $1 trillion reported earnings that rose less than analysts estimated as investors pulled $9.6 billion from stock funds including Bill Miller's Legg Mason Value Trust.

Moody's lost $1.45 to $45.93. The world's second largest provider of credit ratings lowered its earnings forecast for the year after a debt market slump reduced demand.

Fed Watch

About five stocks dropped for every three that gained on the New York Stock Exchange. Some 1.6 billion shares changed hands, 1.3 percent less than the three-month daily average.

Treasury two-year note yields retreated 0.06 percentage point to 3.74 percent as Merrill's losses and weaker home sales increased speculation the Fed will cut interest rates next week.

Futures traders began betting the Fed may cut its target rate on overnight loans between banks by 50 basis points, or half a percentage point, on Oct. 31.

Fed funds futures traded on the Chicago Board of Trade show an 86 percent chance the Fed will lower rates by a quarter- percentage point to 4.5 percent, and 14 percent odds of a cut to 4.25 percent. The contracts yesterday showed traders saw no chance of a half-percentage point reduction by Oct. 31.

``The current rumor on the street is that the Fed is about to convene a special meeting and cut the Federal funds rate another 50 basis points,'' Punk Ziegel & Co. analyst Richard Bove wrote in a note to clients. Fed spokesman David Skidmore declined to comment on the speculation.

Technology Slump

Technology shares retreated 1.1 percent as a group and made up half of the 10 biggest decliners in the S&P 500.

Broadcom plunged $7.14, or 17 percent, to $34.92, the biggest percentage decline since May 2002. The chipmaker said yesterday third-quarter profit fell 75 percent after an expansion into the mobile-phone market boosted research spending. Deutsche Bank Securities cut its recommendation on the stock to ``hold'' from ``buy.''

Amazon.com sank $12.09, or 12 percent, to $88.73, the steepest drop since July 2006. Fourth-quarter operating income will be between $221 million and $291 million, the world's largest Internet retailer said yesterday. Scott Tilghman, an analyst at Soleil Securities Corp., estimated profit of $278.5 million.

Juniper, Intel

Juniper Networks Inc. fell $3.12 to $34.02. The second- largest maker of computer-networking gear posted sales growth at its enterprise unit that failed to meet some analysts' estimates.

Intel Corp., the world's largest computer-chip maker, declined the most in almost three months, falling 79 cents, or 3 percent, to $26.01 for the steepest drop in the Dow average.

Corning Inc. slipped $1.54 to $23.20. The biggest maker of glass for liquid-crystal display screens forecast fourth-quarter sales that fell short of analysts' estimates as TV sales slowed.

National City Corp., the biggest bank in Ohio, declined 89 cents to $23.02. The lender, which sold its subprime mortgage unit to Merrill last year just before the industry unraveled, posted third-quarter profit below analysts' estimates because of losses from home lending.

Purchases of previously owned homes declined 8 percent to an annual rate of 5.04 million from a 5.48 million August pace, the National Association of Realtors said. Sales were down 19 percent from September 2006 and the median home price dropped.

CME, Nasdaq

CME Group Inc. and Nasdaq Stock Market Inc. gained after reporting third-quarter profit above analysts' estimates as the derivatives and equity exchanges benefited from turmoil in the financial markets.

CME, the world's largest futures market, advanced $15.40 to a record $650. Nasdaq, the all-electronic exchange that handles the most shares in the U.S., climbed 42 cents to $42.50.

Paccar Inc. had the biggest gain in the S&P 500, rising $5.84, or 12 percent, to $56.22. The truckmaker beat analysts' profit estimates and boosted its quarterly dividend by 35 percent.

Oil rose for the first time in four days after the Energy Department reported that U.S. oil and gasoline inventories unexpectedly declined. Crude for December delivery increased 2.2 percent to $87.10 a barrel in New York.

The Russell 2000 Index, a benchmark for companies with a median market value of $652 million, dropped 0.9 percent to 810.85. The Dow Jones Wilshire 5000 Index, the broadest measure of U.S. shares, declined 0.3 percent to 15,337.70. Based on its retreat, the value of stocks fell by $60.7 billion.

 

 

 

The Dow gyrates as usual... very likely to finish up strongly... then the October fears will fade...