DJIA 12,121.79; Down 158.38 (1.29%)
NASDAQ 2,405.92; Down 54.34 (2.21%)
S&P500 1,381.95; Down 19.00 (1.36%)
10YR-Bond 4.5380% Down 0.01%
NYSE Volume 2,627,768,000
NASD Volume 1,912,940,000
It is a bit ironic that just last week I had commented on how investors who wanted to hedge with put options could do so for the cheapest premiums (based on the VIX) in modern times, and it is also amazing that Doug timed his 15 Most Overvalued Stocks segment. Today the DJIA showed it can actually have a ghastly day. The dollar continued its erosion, and the Saudi’s even said they’d support another oil production cut on the same day a mortar attack on the northern oil export terminal in Iraq (do we dare note that the Saudi’s didn’t deliver on any promises to cut production last time). Anyway, today was ugly. You could blame a crummy dollar, oil, Wal-Mart, or profit taking, but it was a big sell-off regardless of the blame. All major US averages were lower, but not all stocks were lower. Out of the 20 most actives as of 3:30 PM EST the only one positive on NASDAQ was Charter Communications (CHTR) by a whole $0.01; and on NYSE the only two positive issues of the top 20 were Pfizer (PFE) and AT&T (T).
Wal-Mart (WMT) fell 2.6% or $1.29 to $46.61 after it forecast November same store sales would be -0.1%, its first comparable drop in 10 years.
Google (GOOG) also fell 4% or $20.25 to $484.75 after Barron’s "Trader" section called the stock overvalued.
Ford (F) fell 4% to $8.16 after it noted it has received some $18 Billion in financing to cover its restructuring and to cover losses over the next two years, and this is meantto shield the ailing car maker against a weak economy or against unexpected events.
NYMEX (NMX) fell 5% to $125.51 after Prudential started the stock coverage with an underweight rating.
ValueClick (VCLK) fell almost 2% to $23.55 after Citigroup downgraded its rating from Buy to hold.
Xerox (XRX) fell 1.7% to $16.34 after it confirmed a NYT story that it had designed some erasable ink paper for reuse.
Sony (SNE) fell 2.4% $38.68 after reports surfaced that more systematic problems were hitting the Sony PS3 just 2 weeks within its launch dates.
Altria (MO) fell 0.3% to $83.50 even after it had the Supreme Court say it wouldn’t consider reinstating a ruling against the company, yet it fell along with a crummy market.
Affiliated Computer (ACS) fell 1% to $50.25 after its CEO and CFO both fell
Swift Transport (SWFT) rose 2.7% to $28.36 after rejecting the Moyes bid at $29.00 per share because the board and advisory committee felt it undervalued the company.
Sirius Satellite Radio (SIRI) fell 3% to $4.12 after Banc of America said its sales were lagging, although Cramer said it was too soon to make that call.
Jon C. Ogg
November 27, 2006
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