Stock Smackdown, Optimism Questioned, Chips Downgraded

  • November 19, 2009
  • Dave Goodboy

Analysts revealed that stock prices have already reflected a 25% earnings increase next year. Confirmation of these over optimistic levels triggered a broad based sell off today. In addition, a Bank of America downgrade of the chipmaker sector weighed heavily on tech stocks. The DJIA gave back -93.87 to 10332.44, the tech heavy Nasdaq dropped -36.32 to 2156.82 and the broad based S&P 500 fell -14.90 to 1094.90.

Alcoa
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PowerRating): Fell 3.92% or 54 cents to $13.22/share on the back of an industrial metal commodity retreat.

Intel
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PowerRating): The chipmaker fell 4.17% or 84 cents to $19.38/share along with the entire chip sector on a Bank of America downgrade.

New Gold
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PowerRating): The miner sank 17.69% or 77 cents to $3.59/share after operations were suspended in Mexico.

Sunrise Senior Living
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PowerRating): The retirement home operator soared 14.15% or 40 cents to $3.16/share upon completing a 21 unit sale to Brookdale Senior Living.

Oil fell $2.12 to $77.68, gold added another $1.00 to $1142.00 and the VIX advanced 4.81% to 22.67.

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Market Snapshot

Dow

 -93.87 10332.44

NASDAQ

 -36.32 2156.82

S&P 500

 -14.90 1094.90

Economic
News

Retail Sales (Oct): Consensus: 0.9%, Prior: -1.5%, Revise From: -1.5%

Retail Sales ex-auto (Oct): Consensus: 0.4%, Prior: 0.4%, Revise From: 0.5%

Empire Manufacturing (Nov): Consensus: 30.00, Prior: 34.57

Business Inventories (Sep): Consensus: -0.7%, Prior: -1.6%, Revise From: -1.5%

Core PPI (Oct): Consensus: 0.1%, Prior: -0.1%

PPI (Oct): Consensus: 0.5%, Prior: -0.6%

Net Long-Term TIC Flows (Sep): Consensus: $35.0B, Prior: $28.6B

Capacity Utilization (Oct): Consensus: 70.8%, Prior: 70.5%

Industrial Production (Oct): Consensus: 0.4%, Prior: 0.7%

Housing Starts (Oct): Consensus: 600K, Prior: 590K

Building Permits (Oct): Consensus: 580K, Prior: 573K

CPI (Oct): Consensus: 0.2%, Prior: 0.2%

Core CPI (Oct): Consensus: 0.1%, Prior: 0.2%

Crude Inventories (11/13): Consensus: NA, Prior: 1.76M

Initial Claims (11/14): Consensus: 504K, Prior: 502K

Continuing Claims (11/13): Consensus: 5600K, Prior: 5631K

Leading Indicators (Oct): Consensus: 0.4%, Prior: 1.0%

Philadelphia Fed (Nov): Consensus: 12.0, Prior: 11.5