Minyanville's Market Recap: Boeing Rocks The Markets, Major Indexes End Mixed
Earnings season starts off on a slightly sour note. Boeing rocks the markets. Major indexes end mixed.
Financials were lower as a report this morning by the Wall Street Journal stated major banks were still holding approximately $400 bln in loans for leveraged buyouts. Adding to the selling pressures were statements by Bank of England Governor Mervyn King suggesting that he was reluctant to cut interest rates. King also remarked turmoil in the financial markets was not over. The Amex Broker/Dealer index (XBD) fell -0.25% and the Philadelphia KBW Bank Index (BKX) fell -1.12%. Notable performances included Goldman Sachs (GS) falling -1.4%, Morgan Stanley (MS) falling -1.8%, and Bear Stearns (BSC) falling -1.29%. Read Professor Shedlock's Problems For Banks, Problems For You?
In other news, Boeing (BA) rocked the markets as the blue chip company stated it was delaying the completion of its star project, the 787 Dreamliner, by six months due to manufacturing problems. Although company management attempted to assuage investor concern that the delays would not materially impact earnings, Professor Bloudek informed Buzz readers, "As a former engineer who worked at Boeing, when you have delays in deliveries, you get massive cost overruns… since this is a new aircraft, the design cost overruns will be an issue…" Read more of Professor Bloudek's buzz as well as other real-time summaries in Minyanville's Buzz Bits.
In earnings news, Alcoa (AA) kicked off earnings season on a slightly sour note. The company's third quarter earnings came in $0.02 less than expected. Revenues fell 3.2% to $7.39 bln vs. $7.28 bln cons. The company also increased its buyback authorization from 10% to 25% of shares outstanding. AA lost -2.5% to close at $38.73.
Monsanto (MON) also missed earnings $0.01 less than consensus. Revenues rose 13.2% on the year to $1.57 vs. 1.62 bln cons, but the company issued downsided guidance for fiscal year 2008. Monsanto nonetheless touched an all-time high before closing at $88.78 for a 0.83% loss. Professor Zucchi mentioned Monsanto back this summer. Click here to read his thoughts in A Few Of My Favorite Things.
Commodities finished higher on the day. Crude added 1.26% to close at $81.27 per barrel. Gold added +0.42% to close at $746.20. Silver gained +0.68% to finish at 13.67 and copper surged +2.4% to close at $370.55. Read Professor Michael's Gold In The Near Term for more ideas on the gold market.
Here's a look ahead to tomorrow's trading session. Click here for Minyanville's trading radar.
8:30 Export Prices ex-ag: 0.1% prior
8:30 Import Prices ex-oil: 0.1% prior
8:30 Initial Claims: 317 k prior
8:30 Trade Balance: -$59.0 bln cons
10:30 Crude Inventories: 1138 k prior
2:00 Treasury Budget: $100.0 bln cons
Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.
Some bullish trade or investment ideas: GSS, AXK, SIL, HUI, XAU, AUX, GG, NEM, SLW, PAAS, GS, LEH, MTH, RYL, LNN
Some bearish trade or investment ideas: QQQQ, AAPL, WYNN, BRCM, MSFT, HOC, WNR, MA, ATI, RTI, CLF, BA, MS, HGX, WMT
Too much stress? Read Professor Dorsey's Investing In Stress Reduction. Hope you had a chance to watch Hoofy & Boo's new video. Have a great night!
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