Barchart Stock Market Wrap – November 18, 2008
Commentary:
Some relatively good economic and earnings news supported the market today.
Before the market opened, the Department of Labor announced that the Producer Price Index (PPI) for October fell 2.8% versus a fall of 0.4% in September. The market had been looking for a fall of 1.5%. The unexpected decline, due in large part to lower energy prices, has eased fears of inflation due to the huge amounts of liquidity injected into the market since September.
Earnings news included a worse than expected report by high-end retailer Saks Incorporated (SKS) , but better than expected earnings by Home Depot (HD) and Hewlett-Packard (HPQ) . In Hewlett-Packard’s case, the company raised 2009 guidance to between $3.88 - $4.03 versus the consensus estimate of $3.86. Hewlett-Packard’s shares climbed more than 14% today as a result.
The Dow Jones Industrials closed up 152 points for a gain of 1,8% today. The S&P 500 Index also was higher, gaining 8 points or 1%.
December Comex gold futures fell $4.5 as economic worries continue to mount for the yellow metal.
Spot December crude oil futures continued to fall, shedding 49 cents per barrel today over continued lack of demand, as evidenced by the Producer Price Index report.
The December Dollar Index was higher by nearly 40 points, despite the stock market rally. Here too, global economic concerns are the primary issue.
Reports Due Tomorrow:
8:30 am – Department of Commerce Housing Starts for October (expected at 780,000 down from September’s 817,000).
8:30 am – Department of Commerce Building Permits for October (expected at 770,000 down from 805,000 in September.
8:30 am – Department of Labor Consumer Price Index for October (expected at -0.8% from 0% in September).
2:00 pm – Federal Reserve Open Markets Minutes for October 29.
Market Momentum: There were 1,146 advancing issues on the NYSE, with 2,003 declining issues. On the NASDAQ, there were 1,113 advancing issues with 1,750 declining.
New 52-week Highs: There were 6 issues reaching 52-week highs between the NYSE and NASDAQ
New 52-week Lows: There were 937 new 52-week lows on the NYSE and NASDAQ.
