Free Stock Market Analysis - update 07/02/09

Here is the latest trading and free market analysis info... I am working on the weekly extended video now please check back later...

Charts:











CNBC:


07/02/09 16:20 ET Dow -218.94 at 8285.12, Nasdaq -49.20 at 1796.52, S&P -26.18 at 897.15:
[BRIEFING.COM] A disappointing jobs report prompted sellers to knock stocks sharply lower in the first few minutes of trading. Stocks then locked into an extremely narrow trading range until the S&P 500 slipped below the psychologically significant 900 level in the final half-hour of trading.

Following an uninspiring finish to the previous session, stocks had already been showing weakness ahead of the government's latest jobs report, which was released shortly before the opening bell. However, sellers became emboldened when the June Nonfarm Payrolls report indicated that 467,000 jobs were lost last month. That marked pickup from the 322,000 jobs that were lost in May, and topped the 365,000 losses that were widely expected.

Meanwhile, the national unemployment rate now stands at 9.5%, which isn't quite as bad as the 9.6% that was expected, but it still marks a 25-year high. According to Reuters, the White House expects unemployment rate to climb to 10% in next two to three months. Average weekly hours came in at a slightly worse-than-expected 33.0. Since hours often lead payrolls and employers are cutting back hours suggests that hiring remains a long ways off, which will damper consumer spending and hopes of a consumer-led economic recovery.

May factory orders made a surprisingly strong 1.2% increase, which bested the 0.9% increase that had been forecast. The stock market attempted to pare some of its losses following the orders announcement, but the disappointing jobs report dominated headlines and overshadowed the encouraging orders data.

Since U.S. market's are closed Friday in observance of Independence Day, this session's decline gave stocks their third straight weekly loss. During that time, stocks have shed more than 5%. This session's weakness was widespread as declining issues outnumbered advancers by more than 20-to-1 in the S&P 500.

Losses were steepest among energy and financial stocks. They both finished 3.7% lower. Energy was hampered by a 3.7% drop in crude oil prices, which closed at $66.73 per barrel. Crude has fallen for three consecutive sessions. Meanwhile, financials were severely undercut by losses among insurers.

Elan (ELN 7.66, +0.66) was one of the few stocks to post a gain this session. The company garnered support following the announcement that Johnson & Johnson (JNJ 55.97, -1.10) will acquire certain drug assets from Elan and will invest $1 billion in Elan through an affiliate.

In other corporate news, Exelon (EXC 49.03, -2.53) has increased its exchange offer to acquire NRG Energy (NRG 24.59, -1.46) by 12%. The increase was widely expected and neither stock was able to attract buyers amid the session's broad-based selling effort.

Trading volume was extremely light ahead of the long, holiday weekend. Hardly 700 million shares traded hands on the NYSE in what was the most thinly traded session this year. That's even after trading had been extended by 15 minutes in order to address system irregularities.

Nasdaq -49.20 at 1796.52... S&P Midcap 400 -3.2... NYSE Adv/Dec 538/2435... Nasdaq Adv/Dec 447/2214.

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SPY S&P500 SPX QQQQ DIA GLD OIL update 07/01/09 - 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...



07/01/09 16:25 ET Dow +57.06 at 8504.06, Nasdaq +10.68 at 1845.72, S&P +4.01 at 923.33:
[BRIEFING.COM] Stocks quickly climbed markedly higher in the early going, but gradually pared their gains throughout afternoon trading. Though gains remained broad-based, the steady, downward drift made for a rather unimpressive conclusion to the month's first session.

The S&P 500 climbed 1.4% to its best level since mid-June following a barrage of economic reports, which didn't really offer much inspiration to market participants.

The ADP Employment Change report isn't always a precise indicator of what is in store with the official nonfarm payrolls report, but the ADP report does do a good job of handicapping the government's figure. So, with the latest ADP report showing a higher-than-expected the 473,000 job losses for June, many believe job losses in tomorrow's report could exceed the 363,000 that is currently being forecast.

Many economists are worried that continued weakness in labor markets and recent increases in Treasury yields could stymie a recovery in housing. According to the latest data, pending home sales for May increased just 0.1% month-over-month. They were expected to be flat after spiking 7.1% the month before.

Meanwhile, construction spending during May fell 0.9% month-over-month and missed expectations. The June ISM Manufacturing Index came in at an in-line 44.8, which means manufacturing activity continues to contract since the Index is below 50. The monthly reading was last above 50 in February of 2008. However, the pace of contraction continues to slow as the ISM has now increased six consecutive times.

Despite the generally mixed bag of economic reports, stocks were able to log broad-based gains. Consumer staples (+1.7%) were the strongest performers, thanks to General Mills (GIS 58.18, +2.16). Better-than-expected earnings and issued an upbeat forecast earned shares of GIS their best single-session advance by percent in nearly one month. The consumer staples sector made its best percentage gain in roughly two weeks.

Financial stocks were some of the session's worst performers. The sector shed 0.5% and finished at session lows as diversified banks (-0.8%) and regional banks (-1.0%) came under pressure.

Energy stocks struggled to remain in positive territory as sellers pressured the sector amid falling oil prices. The energy sector was up more than 2% at its session high, but finished with a modest 0.2% gain. Crude oil prices were also up more than 2% at their session high, but finished 0.8% lower at $69.35 per barrel. The reversal in oil prices came in the face of a larger-than-expected draw in weekly inventories.

Despite weakness in energy-related commodities, precious metals were able to advance amid a weaker U.S. dollar. Amid reports that China would like to debate proposals for a new global reserve currency at next week's G8 meeting, the Dollar Index dropped 0.6%. That helped gold prices climb 1.5% to $941.30 per ounce. The broader CRB Commodity Index climbed 0.5%.

Participation was lacking again this session as less than 1 billion shares traded hands on the NYSE. That's the least amount of trading volume in nearly three weeks. Volume is also expected to be light tomorrow since it is the week's final trading session ahead of the long weekend. U.S. markets will be closed on Friday in observance of Independence Day.

Nasdaq +10.68 at 1845.72... NYSE Adv/Dec 2211/767... Nasdaq Adv/Dec 1776/865.

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CNBC:


Reuters News: