Friday, May 22, 2009

Weekly Current Market Conditions 05/22/09 - Free Stock Market Analysis

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

5/22/09 16:15 ET Dow -14.81 at 8277.32, Nasdaq -3.24 at 1692.01, S&P -1.33 at 887.00:
[BRIEFING.COM] The major indices spent the majority of a quiet, low volume session trading in positive territory, but some late selling pressure led stocks to close with a modest loss. Still, stocks were able to log a weekly gain (+0.5%). Stocks have advanced in nine of the last 11 weeks.

Action was largely listless for the entire session. Financial stocks, which have proven integral to the market's advances in recent weeks, actually lagged the broader market and finished 1.2% lower, worse than any other major sector.

Banks were the primary drag on the financial sector. Diversified banks slid 2.6% and regional banks slipped 1.8%. Analysts at Deutsche Bank stated that they believe many bank stocks are expensive by valuation, given the dilutive impact of recent stock offerings.

Though banks have been looking to raise capital in the wake of the government's bank stress tests, an official from the FDIC indicated that additional assessments on banks are probable, According to Dow Jones. Meanwhile, Reuters reported that the FDIC expects losses in its deposit insurance fund to total $70 billion during the next five years.

Despite a slow start, materials stocks were able to garner support and trade with strength for most of the session. The sector was able to hold on to a 0.2% gain in the face of late selling pressure, thanks partly to an uptick in commodities prices.

The CRB Commodity Index advanced 0.7% for the session and 3.3% for the week as the Dollar Index extended its slide to fresh lows for 2009.

Treasuries were also forced to grapple with continued selling pressure. The benchmark 10-year Note fell 22 ticks, pushing its yield to a 2009 high of 3.45%. Treasuries are being pulled lower by the Treasury's efforts to add supply, even though the Fed is buying Treasuries to help prop up longer end prices in order to keep lending rates from escalating.

There wasn't any economic data released today, and only a handful of corporate headlines. Both Sears Holdings (SHLD 58.40, +5.21) and Gap (GPS 16.39, +0.41) posted better-than-expected earnings, which helped retailers outperform the broader market for most of the session. They finished with a 0.1% gain.

Automakers tumbled 2.9% amid reports that bondholders refused to take an equity stake in General Motors (GM 1.43, -0.49). Separate reports indicate that the company has reached much needed concessions with the Auto Workers Union, and that the company is not going to be pushed into bankruptcy next week.

Overall, advancing issues and decliners were evenly balanced, while trading volume was exceptionally low, suggesting there wasn't much conviction behind the upward move by stocks.

Little more than 1 billion shares traded hands on the New York Stock Exchange as participants entered vacation mode ahead of Memorial Day (stock and bond markets will be closed Monday, May 25 for holiday observance). Trading volume during the past 20 sessions has averaged more than 1.5 billion shares.

Nasdaq -3.24 at 1692.01... S&P Midcap 400 -0.5... NYSE Adv/Dec 1524/1458... Nasdaq Adv/Dec 1185/1458.

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