Reply #72: a know-nonsense end to the day

[ozymandius]

Dow 13,127.85 Up 14.47 (0.11%)
Nasdaq 2,559.11 Down 6.59 (0.26%)
S&P 500 1,451.70 Down 1.85 (0.13%)
10-Yr Bond 4.324% Down 0.044
NYSE Volume 2,838,845,000
Nasdaq Volume 1,819,379,000

4:20 pm : In the wake of Friday's sell-off, the major indices opened today's session with a positive bias that was aided by bargain hunting interest and an upbeat third quarter outlook from Intel (INTC 25.35, -0.12).

Citing stronger than expected worldwide demand for its computing products, Intel boosted its revenue guidance to a range of $9.4 billion to $9.8 billion from $9.0 billion to $9.6 billion. In addition, Intel said gross margins are now expected to be at the upper end of its guidance for 52%, plus or minus a couple of points, indicating strong acceptance of its products.

Intel's good news, though, didn't take the market - or its own stock - very far. In fact, both Intel and the S&P 500 ended the day with modest losses after some roller-coaster action late in the session that saw the S&P swing from a loss of 14 points to a gain of 9 points and then back to a modest decline by the closing bell.

The buying momentum waned in the last half hour of trading when the S&P 500 again failed to hold above its 200-day moving average, which is viewed as a key technical level.

Prior to the late-day failure, buying activity in the comeback effort was broad-based and led by the influential financial (-0.1%), technology (+0.1%) and energy (-0.6%) sectors. Each of those groups faded into the close, though, to leave the major indices mixed and close to unchanged when it was all said and done.

Participation was limited in today's session. Volume at the NYSE just topped 1.2 billion shares; activity was heavier at the Nasdaq where 1.8 billion shares traded.

Several Fed officials gave speeches today that touched on the economic outlook. Per usual, there was enough room for interpretation in the body of those comments that they ultimately didn't have any significant impact on the proceedings. In other words, there was a little something for everybody, but ultimately, nothing of note for the market to really sink its teeth into as a uniting, or dividing, factor.

Separately, Countrywide Financial (CFC 17.21, -1.00) was a notable laggard following its announcement that it plans to cut nearly 20% of its workforce over the next three months as it deals with changing market conditions. Home Depot (HD 33.81, -0.40) also slipped after affirming its long-term sales and earnings forecasts, but acknowledging that it doesn't expect an improvement in the housing market until late 2008. (HINT: This is the bubble talking.)

Key happenings on Tuesday will include a speech on global imbalances from Fed Chairman Bernanke at 11:00 ET and the OPEC meeting in Vienna where the cartel is expected to leave production quotas unchanged at 25.8 million barrels per day.DJ30 +14.47 NASDAQ -6.59 SP500 -1.85 NASDAQ Dec/Adv/Vol 1931/1073/1.80 bln NYSE Dec/Adv/Vol 1890/1405/1.20 bln