S&P 500 Index

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S&P 500 Index...
The S&P 500 gives a clearer warning of selling pressure, with bearish divergence on Twiggs Money Flow. Failure of support at 1300 would signal a correction.

* Target calculation: 1220 + ( 1220 - 1020 ) = 1420

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S&P 500 Index...
US Stocks
The S&P 500 index is testing support at 1300; failure would warn of a correction.

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S&P 500 Index...
The S&P 500 continues to test support at 1300, while bearish divergence on Twiggs Money Flow warns of selling pressure. Failure of support (at 1300) would also signal a correction.

* Target calculation: 1220 + ( 1220 - 1020 ) = 1420

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U.S. Stocks Advance Amid Oracle's Earnings Forecast as Economy Expands
By Rita Nazareth and Lu Wang - Mar 25, 2011 3:55 PM CT

U.S. stocks advanced, giving the Standard & Poor's 500 Index its biggest weekly rally since February, after Oracle Corp. (ORCL)'s profit forecast beat analyst estimates and the rate of economic growth was revised higher.

Oracle, the world's top supplier of database software, climbed 1.6 percent. U.S. shares of Accenture Plc (ACN), the world's second-largest technology-consulting firm, rallied 4.5 percent after its sales forecast beat analyst's projections. Bristol- Myers Squibb Co. advanced 3.3 percent after the pharmaceutical company won U.S. approval a melanoma drug.

The S&P 500 gained 0.3 percent to 1,313.80 at 4 p.m. in New York. The gauge climbed 2.7 percent this week. The Dow Jones Industrial Average advanced 50.03 points, or 0.4 percent, to 12,220.59 today. The Chicago Board Options Exchange Volatility Index, which measures the cost of using options as insurance against declines in the S&P 500, fell 0.5 percent to 17.91, extending its retreat since March 16 to 39 percent.

"Corporations are making money amid this pace of economic growth," said Kevin Caron, a market strategist in Florham Park, New Jersey, at Stifel Nicolaus & Co., which has about $90 billion in client assets. "We saw a solid GDP number. The fact that Oracle reported a decent forecast would be consistent with that trend. As long as the data is supporting the recovery, the S&P 500 can get to $100 a share of earnings over the next year and a half. That means the index rising to 1,500."

Recouping Losses
U.S. stocks rose yesterday, recouping losses that followed Japan's March 11 earthquake, as corporate profits beat estimates and a government report showed a decline in jobless claims. The S&P 500 has advanced 4.5 percent in 2011, extending last year's 13 percent rally, amid government stimulus measures and an eighth straight quarter of higher-than-estimated earnings.

The U.S. economy grew at a 3.1 percent annual rate in the fourth quarter, led by a jump in consumer spending that will be hard to match early in the year as energy prices surge. The revised increase in gross domestic product compares with a 2.8 percent estimate issued last month, figures from the Commerce Department showed today in Washington.

Stocks rose even as the Thomson Reuters/University of Michigan final index of consumer sentiment decreased to 67.5 from 77.5 in February. The preliminary estimate issued earlier this month was 68.2. The median forecast of 67 economists surveyed by Bloomberg News projected a reading of 68.

Emergency Aid
European Union leaders at a two-day meeting in Brussels agreed to cut the startup capital for the future euro emergency aid mechanism, while Portugal continued to rule out a rescue after the parliament's rejection of budget cuts led Prime Minister Jose Socrates to offer to quit.

A bailout may total as much as 70 billion euros ($99 billion), two European officials with direct knowledge of the matter said, as credit-rating cuts threatened to deepen Portugal's debt woes.

"The market has digested a lot of uncertainties in the past couple of weeks, with the tragedy in Japan and the unrest in Libya," said Charles Stamey, who helps manage $42 billion at Manning & Napier Advisors Inc. in St. Petersburg, Florida. "I certainly think the market is looking for some good news and this is a bit of it," he said of Oracle's forecast.

Oracle climbed 1.6 percent to $32.64 after the company late yesterday forecast profit excluding acquisition costs and some other expenses of 69 cents to 73 cents this quarter, beating the average analyst estimate of 66 cents. Earnings on that basis were 54 cents a share in the period that ended Feb. 28, also exceeding analysts' projections.

Accenture Rallies
Accenture added 4.5 percent to $54.29. Third-quarter net revenue, or sales before reimbursements, will grow to a range of $6.3 billion to $6.5 billion, the Dublin-based company said. The average analyst estimate in a Bloomberg survey was $6.08 billion. The company also increased forecasts for full-year net revenue growth to a range of 11 percent to 14 percent, from 8 percent to 11 percent, and for earnings per share to $3.22 to $3.30, from $3.08 to $3.16.

"Very robust results from enterprise bellwethers Oracle and Accenture will reassure people that the enterprise capex cycle remains a powerful tailwind," London-based analysts Jonathan Tseng and Andrew Griffin at BofA Merrill Lynch Global Research wrote in a report to clients.

Bristol-Myers Squibb rose 3.3 percent to $27.29. The pharmaceutical company won U.S. approval for ipilimumab, the first drug in a new family of medicines to treat advanced melanoma, the most deadly form of skin cancer.

Smithfield Foods Inc. (SFD) gained 2 percent to $24.44. The world's biggest pork processor said it sees no "backup" in Japanese orders and that the nation is shifting to fresh pork, according to a Barclays Plc presentation.

Research In Motion Ltd. (RIM) slumped 11 percent to $56.89 after the maker of the BlackBerry smartphone forecast first-quarter revenue and profit that trailed estimates. Earnings will be $1.47 to $1.55 a share as the company spends more on research and steps up marketing for its PlayBook tablet and new smartphones, RIM said late yesterday. Analysts had predicted profit of $1.66 on average, excluding some costs.

To contact the reporters on this story: Rita Nazareth in New York at [email protected]; Lu Wang in New York at [email protected]

To contact the editor responsible for this story: Nick Baker at [email protected]

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S&P 500...
The S&P 500 suggests further consolidation, with divergences on 13-week Twiggs Money Flow warning of both buying and selling pressure.

* Target calculation: 1220 + ( 1220 - 1020 ) = 1420

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S&P 500, Dow set 2011 highs on earnings, data...
On Tuesday April 26, 2011, 1:17 pm EDT

NEW YORK (Reuters) - Wall Street rallied and the S&P 500 hit its highest level since June 2008 on Tuesday as a flood of positive corporate results added to increasing optimism about the economic growth outlook.

Ford Motor Co (NYSE:F - News), 3M Co (NYSE:MMM - News) and United Parcel Services Inc (NYSE:UPS - News) were among the bellwether names to impress, continuing a string of better-than-expected results. 3M and UPS also raised their full-year profit outlooks, contributing to the bullish sentiment.

Shares of 3M, a Dow component, rose 2.2 percent to $96.22 while UPS was up 1.2 percent at $74.52. Ford advanced 2.5 percent to $15.92.

"The very positive outlooks from today means things look very bright going forward," said Peter Andersen, portfolio manager of the Boston-based Congress Asset Management.

"I was frankly delighted with Ford's results, and the market is taking some of its cue from the strength there," added Andersen, who helps manage $7 billion and owns Ford.

Though 73 percent of New York Stock Exchange issues were in positive territory, there were some disappointments. Coca-Cola Co (NYSE:KO - News) fell 1.7 percent to $66.61 and was the Dow's biggest loser after its results were hurt by lost Japanese revenue. U.S. Steel Corp (NYSE:X - News) and Netflix Inc (NasdaqGS:NFLX - News) also fell after results.

The Dow Jones industrial average (DJI:^DJI - News) was up 108.83 points, or 0.87 percent, at 12,588.71. The Standard & Poor's 500 Index (^SPX - News) was up 11.55 points, or 0.87 percent, at 1,346/80. The Nasdaq Composite Index (Nasdaq:^IXIC - News) was up 20.85 points, or 0.74 percent, at 2,846.73.

The three major U.S. stock indexes hit highs for the year, and the Nasdaq was at its highest since late 2007, erasing losses after a drop in February. But some caution remained a day before a press conference by U.S. Federal Reserve Chairman Ben Bernanke.

The conference follows the Fed's last policy statement before it is expected to stop its quantitative easing program at the end of June. Investors have concerns that the end of that program could remove support for buying stocks.

Trading volume was weaker than average, with 3.94 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq as of 1 p.m. EST.

"There's some apprehension about what to expect," Andersen said. "People are anxious to reinvest in equity markets, but they're tentative about the Fed, which is why you've been seeing such low volume lately."

U.S. consumer confidence rose in April as inflation expectations eased somewhat and consumers felt better about the short-term outlook, according to a private-sector report. The data helped ease concerns that the recent rise in oil prices have started to hit shoppers.

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NEW YORK—Stocks suffered their biggest declines since the middle of last year, as a slew of downbeat reports prompted fears the economic recovery is running out of steam.
JUNE 1, 2011, 5:39 P.M. ET

The Standard & Poor's 500-stock index fell 30.65 points, or 2.3%, to 1314.55, its biggest drop since August 11. The financial, industrial and material sectors each fell more than 3%. Only 10 stocks in the S&P 500 finished in positive territory.

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S&P 500 VIOLATED MAJOR UP TRENDLINE...

Thurday's message showed the S&P 500 threatening two important support lines. Unfortunately, both have been broken. Chart 1 shows the SPX closing below its 100-day average (green line) for the first time since last August. The weekly bars in Chart 2 show the SPX ending well below an up trendline drawn under its August/March lows. Those downside violations leave little doubt that the market has entered a downside correction. The most logical downside target at this point is a drop to the March low near 1250 which also happens to coincide with the 200-day (40-week) moving averages which are the red lines in the two charts. There are at least three reasons why the March low is so important. First, it's the next major support level (and represents the bottom of Wave 4 in an Elliott Wave sequence). Second, it coincides with the 200-day moving average which is a major support line. Chart 3 shows another reason. The 1250 level represents a test of a two-year up trendline drawn under the 2009/2010 lows (see arrows). That means that prices need to stay above that level to keep the two-year bull market intact.

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Wall Street hits 2-1/2 month low on economic worry...

Monday June 6, 2011, 4:32 pm

NEW YORK (Reuters) - The S&P 500 extended its slide to a fourth day on Monday, hitting its lowest level since March 18, as a spate of recent weak U.S. data lent support to a bearish outlook for the economy.

Sectors most closely associated with economic fortunes took the biggest beating, with shares of Bank of America Corp (NYSE:BAC - News) off 4 percent to $10.83, the stock's lowest close since May 2009.

As stocks have continued to fall, buying support has dried up, sending the S&P 500 through a series of technical support levels.

"The concern there deals with the weakening job market, capital requirements, quality of assets -- particularly with the double-dip in housing and flattening yield curve. All those things are working against financials and set a weaker tone for the market as a whole," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

Energy shares were also among the hardest-hit sectors, with the PHLX oil service sector index (^OSX - News) off 3.2 percent. Chevron Corp (CVX - News) dropped 1.3 percent to $9.68 as the biggest drag on the Dow.

Oil fell in choppy trading on increased expectations OPEC will boost production targets this week as concerns about high prices curbing oil demand lingered.

"There has been concern that the driving season has peaked already as a result of the slowing economy, and that puts pressure on the refined products and concurrently on the crude products," said Hellwig.

U.S. stocks have been battered over the past five weeks on a number of disappointing reports, culminating in Friday's U.S. employment report, which showed employers added a meager 54,000 jobs last month and the unemployment rate rose to 9.1 percent.

With the second-quarter earnings season more than a month away, the market focused on the uncertain economic outlook.

The Dow Jones industrial average (^DJI - News) dropped 61.15 points, or 0.50 percent, to 12,090.11. The Standard & Poor's 500 Index (^SPX - News) fell 13.99 points, or 1.08 percent, to 1,286.17. The Nasdaq Composite Index (^IXIC - News) lost 30.22 points, or 1.11 percent, to 2,702.56.

In a sign a slowing economy could hurt earnings, JP Morgan cut its rating on home improvement chain Lowes Cos Inc (NYSE:LOW - News), citing softening home prices and stagnant job growth. The shares fell 2.3 percent to $22.87.

Apple Inc (AAPL - News) dipped 1.6 percent to $338.04 after Chief Executive Steve Jobs appeared at the unveiling of a music-streaming service the company hopes will power its next stage of growth.

An exchange-traded fund that tracks Peruvian stocks tumbled about twice its daily average volume after left-wing former army commander Ollanta Humala won the presidential election.

The iShares MSCI All Peru Capped Index Fund (Pacific:EPU - News) fell about 13.8 percent to $37.53, while U.S.-traded shares of miner Compania de Minas Buenaventura (Lima:BUEV.LM - News; BVN - News) dropped 15 percent to $35.75.

Volume was light with about 6.8 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, below the daily average of 7.61 billion.

Declining stocks outnumbered advancing ones on the NYSE by 2,394 to 618, while on the Nasdaq, decliners beat advancers 2,024 to 588.

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S&P 500 ...

The S&P 500 is undergoing a similar correction. Bearish divergence on 13-week Twiggs Money Flow warns of selling pressure. Failure of support at 1300 would test the primary level at 1250.

* Target calculation: 1350 + ( 1350 - 1250 ) = 1450

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Stocks See Worst Day in 8 Weeks Amid Debt Deal Woes...
Reuters 2:45 pm EDT

NEW YORK (Reuters) - Wall Street suffered its worst day in eight weeks on Wednesday, hit by weak earnings, lackluster economic data and no movement in Washington as the deadline for a default looms.

The Dow Jones industrial average (DJI:^DJI) dropped 197.76 points, or 1.58 percent, to 12,303.54. The Standard & Poor's 500 Index (^SPX) lost 26.95 points, or 2.02 percent, to 1,304.99. The Nasdaq Composite Index (Nasdaq:^IXIC) fell 75.17 points, or 2.65 percent, to 2,764.79.

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Shares of Moody's, S&P parent tumble
Shares of Moody's, S&P parent tumble amid reports of Justice Dept probe of mortgage ratings

On Thursday August 18, 2011, 4:16 pm
NEW YORK (AP) -- Shares of the parents of Moody's Investors Service and Standard & Poor's tumbled Thursday. Reports of a Justice Department investigation into whether the big credit rating agencies improperly graded dozens of high-risk mortgage securities in the years leading up to the financial crisis spooked investors, along with a broad market sell-off.

The investigation of S&P began before that agency cut the United States' AAA credit rating this month, but that move is likely to add to the political firestorm created by the downgrade, The New York Times said. Separately, Bloomberg News reported that Justice also is investigating Moody's mortgage securities ratings.

Shares of McGraw-Hill Cos., parent of S&P, dropped $2.92, or 7.3 percent, to close at $37.14, while Moody's Corp. plummeted $3.55, or 11.3 percent, to $27.86. The losses were remarkable even in a stock market reeling from a global sell-off stoked by economic worries. The Dow Jones industrial average dropped 3.5 percent and the broader S&P 500 index fell an even steeper 4.5 percent.

If the government finds enough evidence to support a case it could undercut the rating agencies' longstanding claim that their analysts act independently from business concerns. New regulatory restraints on the agencies could result.

The agencies scored record profits as they gave their highest ratings to bundles of risky mortgage loans, which made the mortgages appear less troubled and thus more valuable. They failed to anticipate the deterioration that would strike the housing market and devastate the financial system, dragging the country into the worst recession since the 1930s.

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S&P 500 Posts Third-Biggest Gain Since 2009

Friday, Sep 16, 2011
U.S. stocks advanced, driving the Standard & Poor's 500 Index to the third-biggest weekly gain since 2009, as government officials and central bankers took steps to ease the European debt crisis.

Dell Inc. (DELL) climbed 8.8 percent after boosting its share buyback program, helping send technology companies in the S&P 500 to a 7.1 percent increase, the most since July 2009. Hartford Financial Services Group Inc. (HIG) rallied 14 percent after Credit Suisse Group AG boosted its rating, and Aetna Inc. (AET) advanced 9.3 percent after saying profit will probably beat its forecast. Goodrich Corp. (GR) surged 10 percent amid speculation United Technologies Corp. may buy the company.

The S&P 500 climbed 5.4 percent to 1,216.01 this week, trimming its 2011 loss to 3.3 percent. The Dow Jones Industrial Average increased 516.96 points, or 4.7 percent, to 11,509.09, leaving it down 0.6 percent since Dec. 31.

"It looks like the various political leaders and finance leaders are getting together and working in a consorted fashion, which is what's necessary to get through this situation," Peter Jankovskis, who helps manage about $2.6 billion at Oakbrook Investments in Lisle, Illinois, said in a telephone interview. "The equity market is likely to move higher here, and I think we will see a rally by year's end."

The S&P 500 climbed to the highest level since Aug. 31 after European Central Bank President Jean-Claude Trichet pressed euro-area governments today to take decisive action to halt the debt crisis. Yesterday, the ECB bought more time by extending an emergency lifeline to banks, driving the week's biggest advance in the stock market. French President Nicolas Sarkozy and German Chancellor Angela Merkel said they are convinced Greece will remain in the euro zone.

Stock Valuations
Stocks have recovered after the S&P 500 sank to 1,119.46 on Aug. 8, down 11 percent for the year. The retreat drove the index to 12.2 times reported earnings, the cheapest valuation since March 2009, according to data compiled by Bloomberg. Companies most-tied to the economy rallied this week, with the Morgan Stanley Cyclical Index advancing 5.5 percent. Intel Corp. (INTC), Home Depot Inc. (HD) and General Electric Co. (GE) led gains in the Dow, increasing at least 8.2 percent.

"Headlines from Europe are certainly driving the short- term direction of the market," Peter Vanderlee, a money manager at ClearBridge Advisors, a unit of Baltimore-based Legg Mason Inc., said in a telephone interview. Legg Mason manages about $640 billion. "We don't have a magic bullet for solving Europe's woes, but against that backdrop, having a portfolio with companies that tend to be more quality-based, have international exposure, it dampens a lot of that volatility."

EBay, Dell
Technology shares rose the most among 10 S&P 500 industries, led by EBay Inc., the world's largest online marketplace. The shares climbed 18 percent to $33.69. Dell, the second-largest personal-computer maker, added 8.8 percent to $15.20. Dell added $5 billion to its stock repurchase program, citing a resurgence in cash flow.

"Valuations in that space are exceedingly attractive," Mark Luschini, chief investment strategist at Philadelphia-based Janney Montgomery Scott LLC, which manages $54 billion, said during a Sept. 16 Bloomberg Television interview. "And of course we know that business investment and spending on software and hardware has been the one bright spot in terms of economic activity over the last couple of quarters."

Technology companies in the index are trading at 12.3 times estimated 2011 income, according to data compiled by Bloomberg. That compares with the average price-earnings ratio using analyst estimates for the current year of 15.4 between March 9, 2009, when the bull market began, and April 29 of this year, when the S&P 500 peaked.

Hartford, Aetna
Hartford was raised by Credit Suisse to "outperform" from "neutral." The shares gained 14 percent, the most among insurers in the S&P 500, to $18.94. Financial companies in the index advanced 6 percent.

Aetna shares climbed 9.3 percent to $41.53 in its biggest weekly rally since February. The third-largest U.S. health insurer said full-year profit will probably beat its forecast as demand for medical care continues to be lower than previous expectations, helping to contain costs.

Goodrich rallied 10 percent to $92.89, the highest price since Aug. 1. After U.S. exchanges closed today, three people with knowledge of the matter said United Technologies is in talks to buy the aerospace equipment maker Goodrich. A deal may be announced as soon as next week, said one of the people, who declined to be identified because the discussions are private. Goodrich is the most likely of the takeover targets United Technologies is studying, one person said.

Rockwell Collins Inc., Textron Inc. (TXT) and Tyco International Ltd. (TYC) gained amid speculation United Technologies is also evaluating them. Rockwell surged a record 17 percent to $56.21. Textron jumped 22 percent, the most since April 2009, to $18.63. Tyco increased 10 percent, the most since February 2009, to $43.70.

Netflix Inc. (NFLX), the mail-order and online film-rental service, fell the most in the S&P 500 after cutting its U.S. subscriber forecast following a price increase. Netflix slid 24 percent, the most since October 2004, to $155.19.

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•Apple (AAPL) rallied sharply by 5% in after-hours trading yesterday after reporting Q2 EPS of $7.47, which was well above the consensus of $7.30.
•Earnings reports released thus far this morning have mostly been positive but there were some high profile disappointments such as Boeing and Caterpillar. Notable reports include Reynolds American (RAI -1.99%) (0.84 vs 0.835), WellPoint (WLP +0.59%) (2.60 vs 2.08), Thermo Fisher (TMO -0.90%) (1.32 vs 1.30), Praxair (PX -0.01%) (1.49 vs 1.48), Wyndham (WYN -0.15%) (0.98 vs 0.91), Eli Lilly (LLY +0.71%) (1.16 vs 1.01), Northrop Grumman (NOC +0.36%) (2.05 vs 1.71), Pepsico (PEP -0.23%) (1.31 vs 1.19), Moody's (MCO +0.68%) (1.00 vs 0.91), Ford (F -0.59%) (0.45 vs 0.37), Motorola Solutions (MSI +0.18%) (1.12 vs 1.04), Seagate (STX -3.23%) (1.20 vs 1.19). Negative reports this morning include Dr Pepper Snapple (DPS -0.29%) (0.84 vs 0.842), Allegheny (ATI +1.94%) (0.04 vs 0.12), AmerisourceBergen (ABC -2.31%) (0.73 vs 0.74), T Rowe Price (TROW -0.52%) (0.92 vs 0.95), Boeing (BA +0.87%) (1.41 vs 1.58), Caterpillar (CAT -0.56%) (1.45 vs 1.68).
•Virtually all of the earnings reports released after yesterday's close were above consensus. Notable reports included Robert Half (RHI -0.14%) (0.46 vs consensus of 0.43), Electronic Arts (EA -0.75%) (-0.40 vs -0.60), Juniper Networks (JNPR +2.84%) (0.29 vs 0.25), Discover Financial (DFS -0.33%) (1.20 vs 1.15), International Game Technology (IGT -3.12%) (0.33 vs 0.31), and Linear Technology (LLTC +0.57%) (0.43 vs 0.42). Companies that reported worse than expected results included AT&T (T +0.65%) (0.67 vs 0.68), and Norfolk Southern (NSC -0.66%) (1.46 vs 1.49).