Stocks Up & Down, Housing Surprises, Deutsche Bank Takes Hit

  • October 27, 2008
  • David Goodboy

The stock market experienced a steady step by step uptrend this morning, buoyed by rising regional banks, thanks to the bailout plan, and good news from the housing market. However, around 2:00 PM EST, waves of selling struck, erasing all the gains and bullying the troubled indexes steeply lower. The selling was led by utility and energy companies. Negative news of Deutsche Bank losing over $400 million in derivative trade only added to the negative sentiment pushing the DJIA down -203.18 to 8175.77, the Nasdaq dropped -46.13 to 1505.90 and the broad based S&P 500 gave back -27.85 to 848.92.

Sun Trust Bank
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SCI |
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PowerRating) – Added 1% or 0.35 cents to $35.46/share as all banks were lifted by the $31 billion dollar injection of government cash. It is important to note that banks dropped steeply by the end of the day after being up due to the cash infusion.

Dillard’s Inc
(
DDS |
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PowerRating) – Soared 35.63% or $1.19 to $4.53/share as two shareholders in the department store chain moved to oust the reigning CEO William Dillard.

Verizon
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PowerRating) – Climbed 10.09% or $2.53 to $27.61/share after a 31% increase in third quarter sales surprised analysts.

Savient Pharmaceuticals
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SVNT |
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PowerRating) – Crashed an astounding 73.49% or $8.51 to $3.07/share when news of adverse effects during drug tests hit the wire.

Gold climbed $5.70 to 736.00, oil fell another $1.56 to $62.59 and the fear index VIX was trading down for the most of the day, but the late day selling pushed it positive by 1.18% to 80.06.

Market Snapshot

Dow

 -203.18 8175.77

NASDAQ

 -46.13 1505.90

S&P 500

 -27.85 848.92

Economic
News

New Home Sales (Sep): Consensus 450K, Prior 460K

Consumer Confidence (Oct): Consensus 52.0, Prior 59.8

Durable Orders (Sep): Consensus -1.0%, Prior -4.5%

Crude Inventories: (Oct 25) Consensus NA, Prior NA

FOMA Policy Statement: Consensus NA, Prior NA

Chain Deflator-Adv. (Q3): Consensus 4.0%, Prior 1.1%

GDP-Adv. (Q3): Consensus -0.5%, Prior 2.8%

Initial Chains (Oct 25): Consensus 473K, Prior 478K

Employment Cost Index (Q3): Consensus 0.7%, Prior 0.7%

Personal Income (Sep): Consensus 0.1%, Prior 0.5%

Personal Spending (Sep): Consensus -0.2%, Prior 0.0%

Chicago PMI (Oct): Consensus 48.0, Prior 56.7

Mich Sentiment-Rev. (Oct): Consensus 57.5, Prior 57.5

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