The market seems to want to go up each day as it has relentlessly almost every trading session since April. But yesterday, it had a tiny setback after the FOMC announcement. Today the culprit was housing. The National Association of Realtors said existing home sales declined 2.7% in August. Every economist worth his salt said the number would rise.
Good news on the unemployment front did give the market an early boost this morning. Within an hour, though, bad news on the housing sales front wiped out the gains and moved the major indices into negative territory, where they have remained.
Here were today's unofficial closing numbers:
Dow 9,706.99 -41.56 (-0.43%)
S&P 500 1,050.78 -10.09 (-0.95%)
Nasdaq 2,107.61 -23.81 (-1.12%)
Among active shares, A123 Systems, Inc. (NASDAQ: AONE) is following yesterday's IPO with a jump of more than 50% in its share price today. The IPO priced 28.1 million shares at $13.50 and the stock is trading at about $19.61. A123 makes lithium-ion batteries for electric vehicles. More than 27 million shares have traded so far today.
Another big mover has been Direxion Daily Financial Bear 3X Shares ETF (NYSE: FAZ), which has gained about 5%. This fund is a triple-leverage bet against financial sector stocks in the Russell 1000 Index.
If the Financial Bear 3X is up, it stands to reason that the financial services stocks would be down, and that is mostly the case.
Falling home sales pushed down Bank of America Corporation (NYSE: BAC). This follows the news that BofA won't charge overdraft fees on accounts overdrawn by less than $10 in a day. Wells Fargo Bank (NYSE: WFC) and JPMorgan Chase (NYSE: JPM) also announced changes to their overdraft fee policies. Bank of America is down more than 2.5% at $17.08.
General Electric Company (NYSE: GE) is also feeling the pinch from pressure in the financial stocks. GE is trading down almost 2.2% at $16.61.
The biggest loser at this point appears to be Chelsea Therapeutics International Ltd. (NASDAQ: CHTP). The company's hypotension drug, Droxidopa, performed statistically no better than placebo in its Stage III clinical trials. The company's shares are getting pounded, down nearly 66% on volume of more than 30 million shares. Normally, the stock trades fewer than 200,000 shares per day. Amazingly, the share price did not touch a new 52-week low.
Spot crude oil prices dropped below $66/barrel briefly, and natural gas prices have fallen about 2% to $3.778/thousand cubic feet following release of weekly inventory data that came in slightly below an expected increase of 68 billion cubic feet. Spot gold has fallen below $1,000/oz, partly due to a bit of strength in the dollar.
Douglas A. McIntyre is an editor at 24/7 Wall St.











Reader Comments (Page 1 of 1)
9-25-2009 @ 8:41AM
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