Schaeffer's Today's Market Features: Walt Disney, American International Group, Boeing, and NYSE Group.
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8:49 AM Looking for a Light Trading Day
U.S. stock futures are pointed higher this Veteran's Day morning, as crude prices have eased a bit. In electronic trading, black gold has shed 74 cents after the International Energy Agency cut its oil product demand growth forecast for 2006. Watch for light trading as many observe the Veteran's Day holiday. And after a hectic Thursday, chock full o' news goodness, everyone gets to take a deep breath on Friday, as there are no economic reports on the slate.
Turning to equities, Walt Disney (NYSE:DIS) announced fourth-quarter net income of 36 cents per share on sales of $8.78 billion. Analysts expected the Dow component to report earnings of 34 cents per share with sales of $8.7 billion. DIS cited strong box-office performance and growth in its amusement parks and media networks for the better-than-expected results. Although the results were strong, analysts noted that some investors probably expected even better results after several brokerages unofficially raised their earnings estimates at the last minute, potentially setting the bar too high.
DIS's fellow Dow component, American International Group (NYSE:AIG) also reported earnings last night. The insurer posted third-quarter, adjusted income of $1.53 per share, far outpacing the $1.42 per share expected by the Street. The company's results were sparked by "dramatic" improvement in its property-casualty business, which enjoyed a hurricane-free 2006. The fact that there were no major catastrophes during the quarter was key to the better-than-expected results.
12:31 PM IEA's Lowered 2006 Crude Demand Pressures Oil Prices
The major market indices are split as we head into the latter half of the session today. The Dow Jones Industrial Average (DJIA - 12,091.9) was last seen lower by about 11 points, having taken out potential support at the 12,100 level. Meanwhile, the S&P 500 Index (SPX - 1,378.15) is lower by a fraction, and the Nasdaq Composite (COMP - 2,382.8) has a tenacious grip on positive territory with a nearly seven point advance on the session.
In commodities, crude oil has come under a bit of pressure today, but the front-month contract is holding firm above the $60-per-barrel mark. Sparking the weakness was a report from the International Energy Agency that it was trimming its 2006 global oil-demand growth forecast, citing lower third-quarter demand from China and some industrialized nations. At last check, the December crude contract was lower by 61 cents at $60.55 per barrel.
Meanwhile, gold is having an off day again, after breaking a three session losing streak yesterday. Gold futures are pulling back as traders begin to lock in profits following yesterday's two-month high in the malleable metal. The December contract was last down $6.80 at $630 an ounce.
In equity news, Dow component Boeing (NYSE:BA) rose as much as 2.1 percent after the Air Force selected the company to provide the U.S. military with its next generation of combat search and rescue helicopter. The order is estimated to be worth as much as $10 billion. BA was last seen higher by 1.4 percent.
2:17 PM Big Board Parent Hits All-Time High
With the final two hours of trading upon us before the weekend shuffles in, the major market averages are mixed. Despite notable strength from American International Group (AIG: sentiment, chart, options), the Dow Jones Industrial Average (DJIA - 12,088.7) has fallen 15 points lower and is beneath the 12,100 mark near its low of the day. The S&P 500 Index (SPX - 1,376.88) is down by 1.4 points and the Nasdaq Composite (COMP - 2,380.2) is showing strength, up four points.
Oddly enough, this dichotomy is not being reflected in market breadth. On the New York Stock Exchange, there are 1,841 issues moving higher compared to 1,344 in negative territory, for an advance/decline ratio of 1.37. At the technology-heavy Nasdaq, 1,592 stocks have moved forward while 1,265 equities have dropped, equaling an advance/decline ratio of 1.26.
Speaking of the Big Board, NYSE Group (NYSE:NYX), parent of the venerable exchange, has hit a new all-time high today after surging more than seven percent. Yesterday, the stock, which has gained 50 percent since announcing merger plans with Euronext in May, was given a vote of confidence by Jim Cramer on CNBC. Early reviews have been positive for the exchange's automated trading system known as the "hybrid market."
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About Schaeffer's Investment Research (www.SchaeffersResearch.com)
Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com , is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method .
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|Article Type:||Industry overview|
|Date:||Nov 10, 2006|
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