YAHOO [BRIEFING.COM] : Negative
headlines sent stocks to their lowest point since 2003, but buyers emerged
midday to push the major indices sharply higher. The S&P 500 had been down
nearly 4% at its session low, yet finished near its session high with a gain of
almost 7%.
The session's gains were had
amid disappointing outlooks from tech bellwether Intel (INTC 14.43, +0.91) and retail giant Wal-Mart (WMT 54.93, +2.31), along with another
batch of weak jobless claims data.
Intel cut its fourth quarter revenue
forecast, citing softer demand. The company now expects revenue to range from
$8.7 billion to $9.3 billion, which is a reduction of more than $1 billion from
its prior estimate.
Wal-Mart stated it expects
earnings for the fourth quarter to range from $1.03 to $1.07 per share, and
from $3.42 to $3.46 per share for fiscal 2009. However, both ranges fell below
Wall Street's expectations, causing investors to look past better-than-expected
results for the latest quarter.
Weekly jobless claims continue
to indicate a soft labor market and suggest nonfarm payrolls will decline for
an 11th consecutive month. Claims for the week ended Nov. 8 totaled 516,000,
which is a seven-year high. Claims were up 32,000 from the prior week and
topped the consensus estimate of 480,000.
Despite such headlines, stocks
still opened the session in positive ground. But before long the major indices
began drifting lower, eventually taking both the S&P 500 and the Nasdaq to
new multiyear lows. The Dow came within 2% of hitting its new low, which was
registered in October.
Crude oil futures also had a
volatile session. Crude was up more than 6% after being down more than 2.5%
during the session. It settled near $56 per barrel, up roughly 3.6%.
Oil's advance followed reports
that OPEC may schedule an emergency meeting to adjust output. Meanwhile, weekly
crude inventories increased by a modest 22,000 barrels during the week ended
Nov. 7. A build of 1 million barrels was expected.
The strength in oil prices
gave energy a double-digit lift. The energy sector finished 11.1% higher, more
than any other sector.
Gains were broad based as all
10 economic sectors posted gains, each finishing near their session highs. Even
the struggling financial sector finished with an impressive advance of 8.1%.
The financial sector remains the worst performer this year, down more than 54%
year-to-date.
The advance came on relatively
moderate volume as 95% of the companies in the S&P 500 finished higher.DJ30
+552.59 NASDAQ +97.49 NQ100 +6.5% R2K +1.9% SP400 +8.2% SP500 +58.99 NASDAQ
Adv/Vol/Dec 2006/3.0 bln/771 NYSE Adv/Vol/Dec 2311/1.99 bln/805