Stock Market News for November 23, 2010 - Market News

Equity markets closed modestly lower Monday, paring deeper losses, as the Federal Bureau of Investigation launched a broader insider-trading probe on Wall Street and Ireland's bailout kept investors guessing about its implications. Financials led the equities lower, weighed down by reports that the FBI was looking into possible insider trading activities at three Wall Street hedge funds.
 
The resulting worries sent the DJIA off 149 points before the average recouped much of those losses to close at 11178.58, off almost 25 points, or 0.2%. Financials weighed on the blue-chip index as Bank of America BAC fell 3.1% to $11.30 and JP Morgan Chase JPM dropped 2.3% to $38.51.

However, deal activity on the tech-front sent the Nasdaq up nearly 14 points, or 0.6%, to 2532.02. The broader S&P's 500-stock index fell less than 2 points, or 0.2%, 1197.84. Advancing shares outpaced those that fell in price by a thin margin. On the New York Stock Exchange, volume was light with only 0.919 billion shares exchanging hands.

Geopolitical tensions in overseas territories appear to be shaping this morning's developments at home. Reports that the two Koreas were exchanging fire soured moods in Asia but investors still appeared to be more concerned with developments in China. US futures turned lower and European markets appeared concerned by reports that North Korea had fired artillery rounds at a South Korean island. Stock futures suggest a lower opening, with the DJIA off 0.4%, the S&P down 0.8% and the NASDAQ off 0.4%.

Hewlett-Packard's HPQ better-than-expected third quarter sales and earnings report, and increased 2011 guidance have so far failed to provide a broader boost to sentiments as stock futures suggest a lower opening, with the DJIA off 0.4%, the S&P down 0.8% and the NASDAQ off 0.4%.
 
The euro is off 0.4% at $1.3566, the US dollar up 0.3%; copper off 2.1%; oil down 0.7%.

Among the S&P 500 industry sectors, gains were led by technology share (+0.7%) and consumer services (+0.5%) shares yesterday. The reports of FBI raids sent financials off 1.2% even as a Barclays Capital BCS study noted that US banks face up to $150 billion capital shortfall when Basel III becomes effective.

The US dollar advanced on its safety appeal, up 0.137 to 78.611, and US government bonds rose in price, as traders shunned riskier assets, with the 10-year note up 20/32 in price as its yield fell to 2.806%. The markets' fear-factor index, the Vix volatility gauge, jumped 1.8% to 18.37.

 
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