Markets Lower, Closing News 11/25/11

Markets were slightly lower in today’s holiday shortened session, as investors were watching the debt situation in Europe and retail activity on Black Friday.  The Dow closed out its worst week since September, down 4.78% on the week, and the S&P followed suit, down 4.36% over the shortened week.


The trend of European countries having poor results at bond auctions continued today as Italy auctioned off bonds at unsustainable yields.  Italy sold 6-month, 2-year, and 10-year notes all at record high yields.  The six month note carried a 6.5% yield, the 2-year is currently trading at 7.846% and the 10-year note is currently trading at over 7.3%.  Italy is also planning a €8 billion bond auction on Tuesday.


Sources are reporting that the newly elected People’s Party in Spain is considering applying for international aid to bolster the distressed country’s finances.  Potential sources are the International Monetary Fund, European Financial Stability Fund, and the European Central Bank, although the aid would only serve as a transitory move, and further steps would be required.


CNBC has been covering Black Friday all day, and it looks like the shoppers have been out overnight looking for deals at the start of the holiday season.  Teen retailers did very well overnight with midnight openings, although analysts are speculating that may have more to do with teenage sleeping habits than their prospects for the rest of the season.  NRF, and industry trade group, expects sales to be up 2.8% this holiday season, lower than the 5.2% decrease last year.


Market Indices/Statistics:



  • Dow closed down 25.77 pts/-0.23% to 11,231.78

  • S&P closed down 3.12 pts/-0.27% to 1,158.67

  • Nasdaq closed down 18.57 pts/-0.75% to 2,441.51

  • 16 of the 30 Dow stocks closed lower / 12 closed higher / PFE and VZ closed  flat

  • 5 of 10 S&P 500 sectors closed higher / 5 closed lower

  • Utilities was the best performing sector (+0.52%)

  • Energy was the worst performing sector (-0.35%)

  • The VIX was up 0.23 points to 34.21

  • Oil is down $0.09 to $96.11

  • Nat Gas is up $0.036 to $3.644

  • Gold is down $12.00 to $1,680.60

  • Euro vs. Dollar down $0.0109 to $1.3236

  • Dollar vs. Yen up $0.68 to $77.76

Companies in the News:


Goldman Sachs (+0.98% to $88.75) and Morgan Stanley (+1.77% to $13.26) both traded higher after reports that they are no longer considering underwriting the $10 billion share sale for Italy’s Unicredit because of the risks involved in the deal.


AT&T (-0.51% to $27.41) and Deutsche Telekom confirmed they will continue moving forward AT&T’s acquisition of T-Mobile despite withdrawing their application with the FCC.  The companies will pursue the approval after receiving anti-trust approval from the Department of Justice.  Should the deal not receive approval, AT&T disclosed it could take up to a $4 billion charge.


JP Morgan closed higher (+0.35% to $28.48) after reports that it received permission from Beijing city government to form the JPM China Private Equity Fund, a $1 billion fund of Yuan denominated investments around Beijing.


Earnings:


Shares of Yingli Green Energy Holding Company closed lower (-3.79% to $3.81) after reporting Q3 earnings per share of $0.14 excluding items on revenues of $667 million.  Analysts had been forecasting for a $0.02 loss on revenue of $659 million.  Shares were under pressure because Yingli cut its shipment forecast from 1,700-1,750 to 1,580-1,630 for FY 11.


Coming Friday:


Economic Reports:  New Home Sales (expected to be 313k) at 10:00am and Dallas Fed Manufacturing Survey (expected to be 5.0) at 10:30; Earnings from Hillenbrand, Inc. and Thor Industries