Stock Market Report - 06/11/09

Thursday June 11, 2009
Navivest

Yesterday, stocks sold off, partly because of tepid reception of a ten year note auction by the U.S. Treasury. Today, stocks rallied because an $11 billion 30 year note auction by the Treasury was well received. But then after peaking at about 1:30, a downtrend developed and stocks closed off the highs of the day.

The Dow Jones Industrial Average finished the day up by 31.90 points or 0.4%, to close at 8,770.92, NASDAQ ended the session up 9.29 points or 0.5%, to close at 1,862.37 and the S&P 500 also closed to the upside, gaining 5.74 points or 0.6%, to finish the session at 944.89.

The Dow had an intra-day range of 8,736.23 to 8,877.93, NASDAQ traded in a range of 1,854.75 to 1,879.92 and the S&P 500 hit a low of 939.04 and a high of 956.23.

In economic news, the Labor Department this morning reported that initial Jobless Claims for the week ending June 6, dropped to 601,000, from 625,000 in the prior week. That was better that the 615,000 reading that economists had been forecasting.

Separately, the Commerce Department reported retail sales for the month of May rose 0.5%, right in line with forecasts.

Both pieces of news provided some fuel for the market to rally this morning. Helping the Dow higher was Chevron (CVX), which climbed $1.68 to $71.90 on another rise in crude oil prices. IBM (IBM) added $1.05 to $109.40, Bank of America rose $0.99 to $12.97, a gain of 8.26% and aluminum producer Alcoa (AA) rose $0.73 to $12.22.

Nine Dow stocks closed lower, with Boeing (BA) and American Express (AXP) leading the way. Boeing closed down $1.64 to $50.66 and American Express was off $1.06 to $25.63.

Among S&P 500 stocks, Devon Energy, another oil related name, rose $2.44 to $66.19, EOG Resources rose $1.84 to $77.09, conglomerate Leucadia (LUK), which operates timber companies, wineries and restaurants, amongst its holdings, rose 6.11% or $1.40 to $24.33 and Southwestern Energy (SWN) rallied $2.84 to $45.19.

S&P 500 stocks moving to the downside included Vornado Realty Trust (VNO), which lost $1.74 to $46.60, high-end jeweler Tiffany (TIF) was off $1.25 to $27.80, Precision Castparts (PCP) closed down $2.05 to $83.80, Google (GOOG) moved down $3.60 to $429 and Fluor (FLR) closed down $0.94 to $53.82.

June 11, 2009 | Filed Under Uncategorized | Leave a Comment 

Bank of America Raises $13.47 Billion

Wednesday May 20, 2009
Navivest

Bank of America (BAC) announced late Tuesday that it has successfully raised $13.47 billion through the sale of its common stock. The company raised the funds to help it address the $33.9 in capital shortfall that the Treasury and Federal Reserve deemed it needs to cover, after conducting the stress test.

The company has issued 1.25 billion shares since May 8 at an average price of $10.77, giving it gross proceeds of $13.47 billion.

Bank of America plans to raise an additional $17 billion via the sale of new stock, as well as conversion into common stock of preferred stock that’s currently held by institutional investors.

Banks shares having been spiking this week with each announced capital raise. On Monday, shares of State Street (STT) jumped $3.28 to $41.79, from Friday’s close, after the company announced that it would be raising $2 billion in a common stock offering, which the company priced at $39.

State Street plans to use the money to repay bailout funds it received under the Troubled Assets Relief Program. On Tuesday, the stock jumped another $1.42 to $43.21 after the company announced that it priced $500 million worth of 5-year senior notes that will yield it $498 million after offering expenses.

May 20, 2009 | Filed Under Company News | Leave a Comment