Stock Smack Down, Dollar Power, VIX Spikes

  • October 26, 2009
  • David Goodboy

Stocks were smacked down from an early morning rally on deep seated fears that first-time home buyer tax credit will be eliminated. Most of the components of the home builder sector dropped hard on the news. The DJIA experienced a near 200 point reversal of fortune on these fears combined with the U.S. dollar gaining power against other major currencies. The DJIA ended the day down -104.22 to 9867.96, the Nasdaq fell -12.62 to 2141.85 and the broad based S&P 500 dropped -12.66 to 1066.94.

Bank of America
(
BAC |
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PowerRating): Fell 5.06% or 82 cents to $15.40/share after word leaked that the Feds may want it to raise $40 billion, uncannily Citigroup upgraded the shares after the drop.

Microsoft
(
MSFT |
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PowerRating): The software kingpin climbed 2.36% or 66 cents to 28.68/share after JP Morgan raised its share price estimates.

RadioShack
(
RSH |
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PowerRating): Beat analysts estimates sending shares soaring higher by 15.90% or $2.49 to $18.15.

Private Bancorp
(
PVTB |
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PowerRating): Collapsed 36.95% or $7.02 to $11.98/share after reporting a third quarter loss greater than estimates.

Oil fell $1.82 to $78.75, gold was walloped $13.60 to $1042.80, and the VIX fear index spiked 9.16% to 24.31.

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Market Snapshot

Dow

 -104.22 9867.96

NASDAQ

 -12.62 2141.85

S&P 500

 -12.66 1066.94

Economic
News

CaseShiller Home Price Index (Aug): Consensus: -11.90%, Prior: -13.30%

Consumer Confidence (Oct): Consensus: 53.5, Prior: 53.1

Durable Orders (Sep): Consensus: 1.0%, Prior: -2.4%

Durable Orders ex Transportation (Sep): Consensus: 0.7%, Prior: 0.0%

New Home Sales (Sep): Consensus: 440K, Prior: 429K

Crude Inventories (10/23): Consensus: NA, Prior: 1.31M

Chain Deflator-Adv. (Q3): Consensus: 1.3%, Prior: 0.0%

GDP-Adv (Q3): Consensus: 3.2%, Prior: -0.7%

Initial Claims (10/24): Consensus: 525K, Prior: 531K

Continuing Claims (10/17): Consensus: 5915K, Prior: 5923K

Personal Income (Sep): Consensus: 0.0%, Prior: 0.2%

Personal Spending (Sep): Consensus: -0.5%, Prior: 1.3%

PCE Prices (Sep): Consensus: -0.5%, Prior: -0.5%

Core PCE Prices (Sep): Consensus: 0.2%, Prior: 0.1%

Chicago PMI (Oct): Consensus: 48.7, Prior: 46.1

Mich Sentiment-Rev (Oct): Consensus: 70.0, Prior: 69.4

Employment Cost Index (Q3): Consensus: 0.4%, Prior: 0.4%