Reply #46: 2:22 and things are lookin'up! There's even blather again.

[54anickel]

Dow 12,113.79 UP 23.53 (0.19%)
Nasdaq 2,369.74 UP 19.12 (0.81%)
S&P 500 1,380.66 UP 3.32 (0.24%)
10-yr Bond 4.6770% UP 0.0020
30-yr Bond 4.7920% DOWN 0.0040
NYSE Volume 1,531,246,000
Nasdaq Volume 1,259,880,000

2:00 pm : Stocks are extending their reach to the upside as oil prices slip further in the other direction. Crude oil futures are now down 3.8% at session lows near $58.40/bbl; but the Energy sector is only down 0.6%. To wit, Exxon Mobil (XOM 71.41 -0.05) is basically unchanged, and therein lies much of the reason the sector is not down much more than it is since XOM accounts for more than one third of the total weighting in Energy. DJ30 +22.41 NASDAQ +17.78 SP500 +3.61 NASDAQ Dec/Adv/Vol 1316/1638/1.12 bln NYSE Dec/Adv/Vol 1480/1761/842 mln

1:30 pm : The blue chip indices regain some upside traction since the last update, but not nearly enough to make a significant change in the standings. While the Dow and S&P 500 are now in positive territory for the session, it is also worth noting that midterm election year Octobers remain the best months of the year for both, according to the Stock Traders Almanac. Also playing true to trend, since October is typically a common month to look for beaten-down technology stocks, the tech-heavy Nasdaq is pacing the way higher today and for the month. Technology is also today's best performing sector (+0.8%) as growing signs that seasonal demand in the second half of the year will track normal growth trends continue to support our Overweight rating on tech.DJ30 +3.44 NASDAQ +10.66 SP500 +1.42 NASDAQ Dec/Adv/Vol 1511/1413/1.02 bln NYSE Dec/Adv/Vol 1641/1572/774 mln

1:00 pm : Little changed since the last update as the major averages continue to vacillate in roughly the same ranges. The market's holding pattern has been further evidenced in the A/D line, as advancers and decliners on the NYSE remain evenly matched while declining issues on the Nasdaq hold a slim a 15-to-13 margin over advancing issues. Below average volume further echoes the lack of conviction on the part of either buyers or sellers. DJ30 -3.84 NASDAQ +4.91 SP500 -0.17 NASDAQ Dec/Adv/Vol 1573/1318/946 mln NYSE Dec/Adv/Vol 1599/1502/708 mln

12:30 pm : Indices are back to trading in mixed fashion as Tech relinquishes some of its intraday gains. While Energy remains the biggest drag among today's lagging sectors, it has been accompanied to the downside by Health Care -- the third most heavily weighted of all 10 sectors. The sector's worst performer is Tenet Healthcare (THC 7.46 -0.84), which is down 10% after saying it now expects a wider than expected loss for Q3. Also weighing on the sector is Humana (HUM 62.10 -3.60), which more than tripled Q3 profits but is down more than 5% after earnings missed analysts' forecasts. DJ30 -9.45 NASDAQ +2.83 SP500 -0.63 NASDAQ Dec/Adv/Vol 1498/1377/860 mln NYSE Dec/Adv/Vol 1595/1550/648 mln

12:00 pm : The indices remain positive midday but gains remain modest at best as investors weigh benign inflation data and plunging oil prices against anemic sales guidance from Wal-Mart (WMT 49.39 -1.34) and concerns the market is overbought at current levels.

Before the bell, the Commerce Dept. showed that the core-PCE deflator rose just 0.2% in September, matching forecasts to leave the year/year rate at 2.4%. While that is still a bit higher than policy makers would like, the Fed's favored inflation gauge is now below the 11-year high of 2.5% registered a month earlier, curbing concerns of an uptrend. A 3.2% sell-off in oil removing some of the commodity's potential inflationary characteristics, without sacrificing too much in the way of Energy leadership, is also offering some relief for the bulls trying to get the rally back on track.

Meanwhile, Wal-Mart warning that October same-store sales are expected to be up just 0.5% -- the weakest gain in almost six years and well below original forecasts calling for 2.0-4.0% growth, has left some questioning the health of the consumer heading into the all-important holiday season. While we believe Wal-Mart's woes to more of a company-specific issue than an economy-wide concern, such a disappointment is providing an excuse to lock in some profits following five straight weeks of gains. As a reminder, the Dow, S&P 500 and Nasdaq are up 3.5%, 3.1% and 4.1%, respectively, this month alone.

Fortunately for the bulls, the five sectors trading higher are also among the most influential. To wit, Technology is pacing the way higher, as analyst upgrades on Yahoo! (YHOO 26.14 +0.80) and KLA-Tencor (KLAC 49.72 +1.53) help to offset a 3.5% decline in Verizon Communications (VZ 37.47 -1.37), the Dow's worst performing component today. Verizon topped Wall Street forecasts; however, the company noting that spending on fiber initiatives may hurt the bottom line has prompted investors to consolidate some of the stock's 35% year-to-date advance.

Industrials is also providing notable leadership after American Power Conversion (APCC 29.83 +6.07) agreed to be acquired for about $6.1 bln. L-3 Communications (LLL 81.38 +2.70) surging 3.4% after reportedly saying it is open to takeover approaches and an analyst upgrade on Lockheed Martin (LMT 86.91 +2.30) are providing additional sector support. DJ30 +1.12 NASDAQ +7.75 SP500 +0.47 NASDAQ Dec/Adv/Vol 1442/1426/770 mln NYSE Dec/Adv/Vol 1561/1547/574 mln

http://finance.yahoo.com/marketupdate/update