PortfolioCrafter - Market Commentary 11/23/07
November 23rd, 2007 / 10:55 pm / by portfoliocrafter
Stocks slid to close sharply lower as worries about bad home loans, a slumping dollar and oil near $100 a barrel led traders to take money out of the market ahead of the Thanksgiving holiday. The Dow closed at a 7 month low ahead of what for many will be a long holiday weekend.
Stocks rallied, helping recover some of the week’s losses, as investors gobbled up battered financial stocks and indicated hope that retailers fared well on Black Friday. Expectations for this holiday season had been lowered following drops in consumer confidence surveys.
The Dow Jones industrial average closed up 181.84 or 1.42% to 12,980.88, the broader S&P 500 closed up 23.93 or 1.69% to 1,440.70, and the tech-fueled Nasdaq composite closed up 34.45 or 1.34% to 2,596.60. For the week, the Dow lost 1.5%, the S&P 500 declined 1.2% and the Nasdaq slid 1.6%.
Market breadth was positive. On the New York Stock Exchange, advancers beat decliners nearly 5 to 1 on volume of 670 million shares. On the Nasdaq, gainers topped losers by a margin of 21 to 6 as 796 million shares changed hands.
Throngs of shoppers descended on stores nationwide on Black Friday which is considered as one of the most important shopping days of the year for the retail sector. This helped investors shelve worries about the strength of consumer spending, which fuels about two-thirds of the economy.
Shares of E*Trade closed up $1.07 or 25.12% to $5.33, on speculation that the struggling online brokerage might negotiate a takeover by chief rivals TD Ameritrade Holding Corp. or Charles Schwab Corp. Speculation started after it said in a regulatory filing that securities backed by home mortgages lost significant value, and it will book larger-than-expected write downs in the fourth quarter.
Stock of GlaxoSmithkline closed up $2.92 or 6.10% to $50.79, on news that its rotavirus drug Rotarix guards against the five most common types of the virus. Rotavirus causes diarrhea in infants and is already under review by the FDA.
Shares of Boeing closed up $2.13 or 2.44% to $89.54, after KLM Royal Dutch Airlines placed an aircraft order with the company worth about $716 million.
Oil prices turned higher after retreating from the $100-a-barrel mark in the morning. U.S. light, sweet crude for December delivery rose 54 cents to $97.83 a barrel on the New York Mercantile Exchange.
All the best,
Manuel Jesus-Backus
The Portfolio Crafter
