Big Market Bounce, Euro Crushes Dollar, Oil Knocked Down

  • July 15, 2008
  • David Goodboy

An extremely volatile session in the stock market, resulting in the DJIA being down over 200 points prior to dramatically bouncing into positive territory; then falling hard at the close, ending the session down -92.65 to 10962.54. The Nasdaq gained +2.84 to 2215.71 and the S&P 500 fell -13.39 to 1214.91. The volatility is attributed to Bernanke’s negative words, a big drop in oil prices, and the SEC’s short sell curb suggestions.

General Motors
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PowerRating) climbed 5.12% or $0.48 to $9.86/share on a massive cost cutting campaign, including suspending dividends.

Fannie Mae
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PowerRating) plunged another 27.75% or $2.70 to $7.03/share after hedge fund manager, William Ackman, proposed a reorganization plan that would annihilate shareholders.

Evergreen Solar
(
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PowerRating) rocketed up 11.46% or $1.05 to $10.21/share after winning a $1.2 billion contract in Germany.

Safeco
(
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PowerRating) added 5.28% or $3.25 to $64.85/share due to Liberty Mutual reaffirming its buyout plans.

Oil fell $6.56 to $138.62/barrel, the Dollar dropped hard against the Euro and the VIX broke 30 today ending the session up .21% at 28.54.

Market Snapshot

Dow

 -92.65 10962.54

NASDAQ

 +2.84 2215.71

S&P 500

 -13.90 1239.49

Economic
News

NY Empire State Index (Jul): Consensus -8.0, Consensus -8.7

Retail Sales (Jun): Consensus 0.4%, Prior 0.8%

Retail Sales ex-auto (Jun): Consensus 0.9%, Prior 0.8%

PPI (Jun): Consensus 1.3%, Prior 1.4%

Core PPI (Jun): Consensus 0.3%, Prior 0.2%

Business Inventories (May): Consensus 0.5%, Prior 0.5%

Core CPI (Jun): Consensus 0.2%, Prior 0.2%

CPI (Jun): Consensus 0.7%, Prior 0.6%

Net Foreign Purchases (May): Consensus $65.0B, Prior $115.1B

Capacity Utilization (Jun): Consensus 79.4%, Prior 79.4%

Industrial Production (Jun): Consensus 0.0%, Prior -0.2%

Crude Inventories (07/12): Consensus NA, Prior -5840K

FOMC Minutes (Jun 25)

Building Permits (Jun): Consensus 965K, Prior 969K

Housing Starts (Jun): Consensus 960K, Prior 975K

Initial Claims (07/12): Consensus 380K, Prior 346K

Philadelphia Fed (Jun): Consensus -15.0, Prior -17.1