Markets Wed 12/19

ron · #1 (**permalink**) 12-19-2007, 10:57 AM

Morgan Stanley (MS) reported a loss of $3.61 per share for its fiscal fourth quarter, short of analysts' expectations that called for a loss of $0.39 per share. The larger than expected loss was due to $5.7 billion in additional mortgage-related write-downs, bringing the company's total fourth quarter write-down to approximately $9.4 billion. Investor disappointment was mitigated, however, after the investment bank said it sold a $5 billion stake to China Investment Corp. to further strengthen its capital position amid ongoing credit market turmoil and weakness in the financial sector.

ron · #2 (**permalink**) 12-19-2007, 11:01 AM

There are no economic releases today. The government’s weekly energy inventory report will be released at 10:30 ET.....Dow up 38.21 Points, Naz +5.38, S&P +3.75, NDX +4.78 rtq (real time quotes)

ron · #3 (**permalink**) 12-19-2007, 11:06 AM

we are having so far a minor consolidation in opening action with the stock indices pushing into the green.... Dow, S&P 500 and Naz have pushed slightly above ysterd's highs and as long as the early lows hold the market is in position now for the second leg higher off yesterday's midday lows.....Dow currently up 47 Points, Naz +8.15, S&P +5.30, NDX +7.01 rtq.

ron · #4 (**permalink**) 12-19-2007, 11:27 AM

Fed's $20 billion auction drew a yield of 4.65%, which is slightly below the discount rate that currently stands at 4.75%. The stock and Treasury markets' response has been limited.

ron · #5 (**permalink**) 12-19-2007, 11:46 AM

Dept. of Energy said crude oil inventories for the week ended Dec. 14 slipped by 7.59 million barrels. Analysts expected inventories to decline by 1.5 million barrels. Crude oil for February delivery was trading up 0.7% to $90.70 just prior to the announcement.....Dow up 62 Points, at its highest levels for the day, followed by Naz +12.67 Points, S&P +8.94 , NDX +7.53 real time quotes.