Markets Wed 12/26

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Topping headlines this morning, is news that Warren Buffet's Berkshire Hathaway (BRK) is acquiring 60% of Pritzker family owned Marmon Holdings for $4.5 billion. Berkshire will purchase the remaining 40% of the company during the next five to six years at a price based on future earnings of Marmon.

As futures suggested, stocks open modestly lower. Due to the Christmas holiday yesterday, many investors are on vacation, which may lead to low trading volume today....Dow -40.15 Points, Naz -10.58, S&P -5.78, NDX -9.14 rtq.

[ron]

News is slow this morning, although there are several items in regards to consumer spending. Target (TGT) said that December same-store sales were well below expectations, according to Reuters. MasterCard (MA) reported overall holiday season retail sales through Dec. 24 were up a modest 2.6%. Meanwhile, internet retailer Amazon.com (AMZN) painted a more upbeat picture after it said the 2007 holiday season finished as its best ever.

[ron]

Major avrgs marginally lower in tight opening ranges...Dow currently -39.23 Points, Naz -10.96, S&P -5.59, NDX -9.40 rtq (real time quotes)

[ron]

Eight of the ten sectors are in the red, led by a 0.9% decline in consumer discretionary. Retailers are weighing on the discretionary sector, as indicated by the 1.9% decline in the S&P 500 Retailing Index. Target (TGT) is playing a large role in the underperformance after the company warned that its Dec. same-store sales will disappoint. Sears Holdings (SHLD) is also a laggard.

[ron]

The Residential REITs (real estate investment trusts) group is down 2.0%, which makes it one of the worst performing groups this session. Earlier today, the S&P/CaseShiller Home Price Index indicated home prices dropped 6.1% year-over-year, compared to the expected drop of 5.7%.....Dow -33.81 Points, Naz -8.65, S&P -4.62, NDX -6.53 rtq.