Market Wrap-Up

February 6, 2008

DOW 12200.10 -65.03 (-0.53%) S&P 500 1326.45 -10.19 (-0.77%)
NASDQ 2278.75 -30.82 (-1.35%) 10 Year Bond 3.614% +0.027

The Market opened higher this morning on news that Walt Disney (DIS) $31.50 +1.43 (4.76%) posted better than expected earnings. Time Warner (TWX) $15.71 +0.31 (+2.01%) also had a nice report today

Future exchange companies CME Group (CME) $485.25 -103.55 (-17.59%) and NYMex (NMX) $87.88 -18.78 (-17.61%) both got killed today after it was reported that U.S. Dept. of Justice is calling for an end for futures exchanges being able to own or control clearing functions.

BHP Billiton's (BHP) $66.10 -3.38 (-3.16%) offer to acquire Rio Tinto (RTP) $409.37 -12.13 (-2.88%) for $147.4 billion was rejected today. The company said that the offer did not reflect the value of the company and its prospects for expansion.

Today’s downturn in the market can be attributed to Philadelphia Fed President Plosser. Mr. Plosser expressed concerns about inflation and said that the Fed's credibility is weakening. The market had positive returns up until his comment.

The energy sector also got hit today (-1.58%) on the Department of Energy report showing that crude stockpiles rose 7.05 million barrels. Economist has been looking for only a 2.6 million barrel increase. This also caused the price of crude to drop today.

After hours today, Cisco Systems (CSCO) $23.08 -0.18 (-0.77%) reported earnings in line with estimates. The company reported earnings of $0.38 per share. Revenues rose 17.0% year-over-year to $9.8 billion, which also met estimates. The shares are under pressure in after hours trading.

I would expect more volatility in the market tomorrow.