Clipped From The Daily Intelligencer

Royal_Lee_1995 Member Photo

Clipped by Royal_Lee_1995

 - Money* Markets The Week Ahead I "nvestors will...
Money* Markets The Week Ahead I "nvestors will learn more in the week ahead about the strength of corporate corporate earnings, the weakness In the housing market, and the difficultly of guessing what the Federal Reserve will do about interest rates. Ring's from Aft>te Inc. (AAPL), dtfe out after Monday's session, will be first affidng major technol- id^eemitentes this week. TtttM Mlfetiffttfitl IrtC. fTXN, $0.$0 , eW$0.4Spvs)JoinsAppte Monday. lofe.(AMzM, • .- $>.18/$0.05) reports on Tuesday. ;;Boih Mtert»6ft Corp. (MSFT, .' $639Y$d.S5) arid Motorola Inc. J JMOT, $0.64/$0.34) release results Differ Thursday's session. 'Appl*(AAPL) $170.42 so ' 06: ' 07 Mil ID 04 01 O2 03 04 . Source: Thciffison Financial the housing market More bad news is expected from the •jousing market in the week ahead. 3oth existing home sales, due out Wednesday, and new home sales, Sxpected Friday, are predicted to continue continue their steady decline. MONTH April May June •July August Sept. (eat.) EXISTING 6,010 5,980 5,760 5,750 5,500 5,300 NEW 907 861 835 867 795 785 Source: Thomson Financial Dow Industrials 31 Aside from Microsoft, a handful of ''•Dow Jones Industrial average components components are due out with earnings ;, in the coming week. Merck & Co., „ out Monday, Is expected to post a :^5 percent jump In profit on a per• per• share basis. Other Dow companies li; out With earnings Include AT4T !, |nc. (t $Q.71/$0.63) and chemical maker DuPont & Co. (DD, j, SO.S2/$0.49), both outtuesday, and aircraft maker Boeing Co. . (BA,$U4/$0.89) on Wednesday. ~ ktorck ft Co. (MRK) $53.11 i $6 ° '06i'07 I 50 40 EPS MM ^M est. • •Hi Q3 04 Q1 Q2 03 Source: Thomson Financial 2,700 1,500 1,450 1,400 S&P 500' i Close: 1,500.63 i Change:-39.45 (-2.6%) M J J StocksRecap NYSE NASD Vol. (in mil.) 4,052 2.325 Pvs. Volume 3,129 1,934 Advanced 520 481 Declined 2776 2504 New Highs 67 46 New Lows 144 190 DOW DOW Trans. DOW Util. NYSE Comp. NASDAQ S&P 500 S&P 400 Russell 2000 Wilshire 5000 HIGH 13888.47 4913.18 510.37 10174.59 2799.32 1540.00 900.55 825.03 15570.71 2,600 2,500 2,400 LOW 13511.94 4801.36 498.66 9918.80 2725.16 1500.26 878.87 798.17 15170.34 Nasdaq composite' Close: 2,725.16 Change:-74.15 (-2.6%) CLOSE CHG. %CHG. WK MO QTR YTD 13522.02 4801.36 498.66 9920.27 2725.16 1500.63 879.07 798.79 15174.59 -366.94 -107.22 -11.74 -254.34 -74.15 -39.45 -21.38 -26.24 -392.68 -2.64% -2.18% -2.30% -2.50% -2.65% -2.56% -2.37% -3.18% -2.52% T T A T T T T T T T A T T T T T T T T T A +8.50% +5.29% +9.17% +8.55% +12.83% +5.80% +9.29% +1.41% +6.43% BLACK MONDAY 20 years later T wenty years ago, on Oct. 19,1987, the Dow Jones industrial average plummeted 22.6 percent - its single largest percentage drop ever. Since then, regulators and market participants have taken steps to prevent such a dive. While those steps are widely considered positive, "there will always be events that, by their very nature, are unpredictable," says Hugh Johnson, chief investment officer of Johnson Illington Advisors, who had a front-row seat to Black Monday as a strategist for First Albany Corp. "With all the innovation you have in financial markets, you also end up with things you never expect, and they're the ones that will ultimately come back to bite you." The Federal Reserve For the first time in modern market history, the Federal Reserve took an active role in soothing the market after Black Monday, creating a playbook it has followed since. Before the market opened Tuesday, the Fed said it would provide liquidity to the financial system. Fed chairman Alan Greenspan then cut two key interest rates and {'Greenspan Ur 9 ed neads of ma J or banks to keep lending through the crisis. 'This was the first time that the Fed really came out. openly as a trusted source of liquidity and watchfulness," says Wayne Luthringshausen, CEO of Options Clearing Corporation. "You can see them using the same tactics (this past) August... It works." Circuit breakers The '87 crash was followed by an almost equal drop early the next day; trading in several stocks was suspended, as was index futures trading. The suspension of futures trading helped stabilize stocks, allowing some to resume trading that afternoon. The success prompted the Securities and Exchange Commission to implement "circuit breakers" to stop trading entirely. How they work: 10% drop in the Dow 1-hour halt before 2 p.m 30 minutes from 2 p.m. to 2:30 p.m no halt after 2:30 p.m. 20% drop in the Dow before 1p,m 1 -hour halt between 1 p.m. and 2 p.m. market eto»wi '. after 2p.m. O o o Note: 30 percent drop market closes for the day Share buybacks In response to Black Monday, New York Stock Exchange officials urged listed companies to buy back their shares, says William Brodsky, CEO of the Chicago Board Options Exchange. The Dow closed 5.9 percent higher Tuesday afternoon. "It showed that the market participants could play a very strong role in propping up their stock price and, indeed, the whole market," Brodsky says. Buybacks have since become a C9mmon practice. SOURCES: The Federal Reserve; Thomson Financial; New York Stock Exchange Michael J. Martinez, Kristen Girard • AP Ston/Stocks S tocks fell sharply Friday, with the Dow Jones industrial average dropping nearly 367 points on concerns about credit problems, poor corporate profits and oil prices that briefly topped $90 a barrel. Mixed earnings' from Caterpillar Inc, Honeywell Inc. and 3M Co. started the selling orr- concerns that a slowing economy could hurt a variety of sectors. The had been about 200 points lower for most of the session, but slumped considerably in late trading after Standard & Poor's cut its ratings on than 1,400 residential mortgage-backed securities. The Dow finished down 366.94, or 2.6 percent, to 13,522.02. The S&P 500 index lost 2.6 percent, while the Nasdaq composite index dropped 2.7 percent. McDonald's Corp. MCD Tempur Pedic International LOW 52-WEEK HIGH LOW 52-WEEK Close: $56.42 -0.37 (-0.7%) Vol. (3-moavg.): 7.7m (8.4m) Market Cap.: $67.24 b Higher sales PAST 3 MONTHS of breakfast 560 . . items and a weak dollar 55 helped boost the fast-food chain's profit by 27 percent. percent. SanDisk Corp. SNDK LOW 52-WEEK HIGH Close: $34.04 +0.36 (+1.1%) Vol. (3-moavg.): 4.8m(1.7m) Market Cap.: $2.7 b A new adver- PAST 3 MONTHS tising cam- 540 paign helped drive the mattress mattress maker's quarterly results results above Wall Street forecasts. Caterpillar Inc. LOW 52-WEEK Close: $42.71 -7.601-15.1%) Vol.(3-moavg.): 44.6m(11m) Market Cap.: $9.73 b Acquisition- PAST 3 MONTHS related charg- seo es weighed down the flash storage maker's earnings, which slid 18 percent. 3MCo. LOW 52-WEEK MMM HIGH Close: $86.62 -8.11 (-8.6%) Vol. (3-mo avg.): 15.1 m (4 m) Market Cap.: $62 b The maker of PAST 3 MONTHS Scotch tape $100 -. . and Post-it ; ; i Notes will slash prices on its profitable profitable films for LCD television television screens. Close: $73.57 -4.09 (-53%) Vol. (3-moavg.): 19.2m (7m) Market Cap.: $47.02 b The construe- PAST 3 MONTHS tion equip- $85 ment maker reported a rise in third- quarter earnings earnings but lowered lowered its yearly forecast. Honeywell International LOW 52EEI HIGH Close: $5832 -2.37 (-3.9%) Vol. (3-moavg.): 7.9m (4.8m) Market Cap.: $43.65 b The diversified diversified manufacturer manufacturer raised its full- year forecast after third- quarter earnings earnings rose 14 percent. PAST 3 MONTHS $65 55 so Google Inc. LOW GOOG HIGH LOW 52-WEEK Close: $644.71 +5.09 (+0.8%) Vol. (3-moavg.): 153m (4.9m) Market Cap.: $150.15b Robust inter- PAST 3 MONTHS national rev- seso enue helped third-quarter revenue and earnings surpass Wall Street expectations. expectations. SOURCE: SunGard 450 Close: $32.04 +239(+8.1%) Vol. (3-moavg.): 1.9m(418k) Market Cap.: $759.83 m The online PAST 3 MONTHS discount 540 , retailer's third- quarter loss narrowed, helped by lower marketing marketing costs and higher sales.

Clipped from
  1. The Daily Intelligencer,
  2. 21 Oct 2007, Sun,
  3. Page 39

Royal_Lee_1995 Member Photo

Want to comment on this Clipping? Sign up for a free account, or sign in