Democratic Underground - 12:13 EST numbers and blather

Dow 10,295.11 -49.87 (-0.48%)
Nasdaq 2,085.14 -14.91 (-0.71%)
S&P 500 1,188.07 -3.31 (-0.28%)
10-Yr Bond 4.565 -0.26 (-0.57%)

NYSE Volume 1,105,361,000
Nasdaq Volume 767,770,000

12:00PM : Red and tightly range-bound, the major averages have been driven lower by General Motors' (GM) deterioration and a sharper than expected decline in Sept. durable orders. Crude's early rise further deterred buyers this morning; reports of a better than expected build in natural gas supply has pushed energy prices south, yet the overall market appears to have taken little notice. In the thick of the Q3 earnings season, over 150 companies released results ahead of the bell. The vast majority continues to exceed expectations and reflect solid growth, but news that the GM has received subpoenas from the SEC regarding its pension liabilities accounting practices sparked a 4% plunge its shares that weighs heavily upon the overall market. Offering some offsetting gains within the Dow are Exxon Mobil (XOM) and Verizon (VZ) - both of which announced upbeat earnings reports this morning. Although the energy giant fell $0.07 short of analysts' EPS estimates, its 75% profit growth has captured more attention and enticed buyers. Despite its relative strength, however, selling action and energy price pullbacks spare only one of the Energy sector's (-1.3%) issues and has shoved the sector into the laggard seat. At the same time, those price pullbacks have not helped Consumer Discretionary. GM's effect and significant declines in homebuilders, sparked by lower than expected new home sales last month, have pushed the sector 0.9% lower. Declines in semiconductors and broad-based selling efforts that have been perhaps exacerbated by an 11% earnings-related slide in Baidu.co (BIDU) shares takes 0.6% from Technology, a gain that the Industrials sector matches. Healthcare, though off 0.1%, has been somewhat supported by a rise in HMO's following Aetna's (AET) better than anticipated Q3 report. Leadership lacks today, with just two sectors above the flat line. Aside from limiting the Dow's - and the Tech sector's - slide, Verizon's ahead of consensus earnings has fueled the Telecom sector's 0.3% gain. The Financial sector's 0.3% rise, while modest, has been sustained over the course of the morning and serves as the strongest opposition to broad bearishness. While the solid stances of its bellwethers lend significant support, upside earnings reports from Countrywide Financial (CFC) and Moody's (MCO) - and optimism ahead of after hours reports from MetLife (MET) and Franklin Resources (BEN) - sustains the sector's gain. NYSE Adv/Dec 967/2084, Nasdaq Adv/Dec 807/1967

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