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Minyanville's Market Recap: Boeing Rocks The Markets, Major Indexes End Mixed

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Earnings season starts off on a slightly sour note. Boeing rocks the markets. Major indexes end mixed.

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Stocks were mixed in today's session. The Dow Industrials lost -0.61% to close at 14,078, the S&P 500 lost -0.17% to close at 1,562, and the Nasdaq Composite finished at 2,811 for a +0.27% gain.

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.

Economics

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!
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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