Wednesday, May 27, 2009

Free Stock Market Analysis - Update 05/27/09 - SPY SPX QQQQ

Here is the latest trading and free market analysis video on the S&P500 (SPX), SPY, QQQQ, and more...

5/27/09 16:30 ET Dow -173.47 at 8300.02, Nasdaq -19.35 at 1731.08, S&P -17.27 at 893.06:
[BRIEFING.COM] A mixed batch of corporate headlines led to listless and choppy trading in the early going, but concerns that higher Treasury yields could complicate an economic recovery effort drove a flurry of selling pressure.

Downside guidance from Monsanto (MON 79.88, -5.37) and news that a $27 billion bond exchange offer from General Motors (GM 1.15, -0.29) proved unsuccessful led to some early weakness in stocks. Better-than-expected earnings and forecasts from several retailers (-2.2%) helped temper the tone, making for mixed trading in the early going.

The broader market did make a temporary move into positive territory in a knee-jerk reaction to news that existing home sales for April made a stronger-than-expected month-over-month increase. Overall sales were in-line with expectations.

Stocks moved markedly lower following an auction of 5-year government Notes carrying a 2.3% yield. Though the auction itself was solid, bid-to-cover ratio hit 2.3, mortgage origination sellers moved to hedge their positions and pressured the long-end of the yield curve. That sent the benchmark 10-year Note more than one point lower, which pushed its yield above 3.7% to a fresh 2009 high.

The higher borrowing costs associated with higher yields undermine the government's efforts to keep rates down in order to help along an economic recovery. With that, stocks went on the retreat.

Their descent stalled as the S&P 500 hit the 900 level, but sellers redoubled their efforts and pushed stocks down another leg to finish near session lows. The downturn has taken the S&P 500 back into negative territory for the year (-1.1%).

With the exception of technology, every major sector in the S&P 500 finished with a loss of at least 1%. Strength in large-cap technology holdings limited losses in the tech sector to 0.7%.

Energy stocks showed periodic strength by climbing more than 1% as oil prices reached fresh six-month highs. However, the sector faltered and finished 1.3% lower amid the broader market's sell off.

Meanwhile, crude oil prices logged multimonth closing highs by settling $63.45 per barrel, up 1.6% for the session. Oil prices remain in focus Thursday as weekly inventory data hits news wires midmorning and the latest OPEC meeting gets underway.

Nasdaq -19.35 at 1731.08... S&P Midcap 400 -1.8... NYSE Adv/Dec 925/2120... Nasdaq Adv/Dec 935/1768.

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