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Market 360: The Best and Worst of the Week for US Equities, Commodities, Currencies, and More

Friday, 11 Jul 2008 | 5:48 PM ET

For the week ending Friday, July 11, 2008, the U.S. markets finished in bear market territory with the Dow dipping below 11,000 during intraday for the first time in 2 years. The Dow, S&P, Nasdaq are all off by more than 20% from their market peak in October of 2007. However, Tuesday the market rallied as the Dow and Nasdaq Composite saw modest gains of 152 points and 51 points, for their biggest one day gain since 6/13.
-The rally dissipated on Freddie Mac’s & Fannie Mae’s capitalization fears, Federal Reserves’ regulatory concerns in the U.S. financial institutions, and a rally in crude.
-The CBOE Volatility Index is near its high volatility benchmark of 30, as it reached an intraday high of 29.44 on Friday, gaining 7.42% for the day, representing vast investor uncertainty in the markets.

-Next weeks Highlights: Earnings begin in earnest with heavyweights such as Intel, Johnson & Johnson, Coca-Cola, IBM, JPMorgan Chase, Microsoft, United Technologies, Citigroup. The markets will also tune in for CPI, PPI, Retail Sales, Housing Starts and the FOMC Minutes on Wednesday.

Other Market Moving News:
-Government-sponsored mortgage lenders, Freddie Mac and Fannie Mae , sparked new credit worries after the agencies are expected to raise additional capital to cover for higher losses in reserve requirements due to new accounting rules by the Financial Accounting Standing Board (FASB). Freddie Mac’s stock tumbled 46.6% for the week and closed at $7.75 on Friday, the lowest close value since 9/11/91, while Fannie Mae shed 45.4% for the week, as its stock tumbled to $10.25 or its lowest close since 2/01/91.
-Discounter Retailers like Wal-mart , Costco , and BJ’s Wholesale Club posted stronger-than-expected same-store sales of 5.8%, 9%, 16.5%, respectively for June, amid stimulus-related spending, higher gasoline prices and climbing food costs. Yet overall retail stocks did poorly for the week as the S&P 500 Retail Index fell 6.17% on ongoing uncertainty in the markets.

M&A, Deals, Corp Actions:
-Belgian brewer InBev NV sweetened the merger deal with Anheuser-Busch by boosting its offer price up by $5 a share to $70 in order to seal the deal with the famous U.S. brewer. Shares of BUD increased 7.8% for the week on the enticing deal terms.
-Hercules agreed to be acquired by Ashland for $2.6 billion, as it has been the second major chemical deal for the week. Ashland expects the merger to consolidate many of the soaring costs related to energy expenses facing the company. Hercules stocks soared 29.6%, while Ashland shares sank 12% for the week.
-Rohm & Haas reached an acquisition agreement with rival Dow Chemical for $15.3B, as Dow tries to broaden its product offerings and expand in the higher margin chemical business. Share of ROH rallied ~66% for the week on the merger news.
-Quicksilver Resources agreed to buy Barnett Assets, the nation’s largest natural gas field for $1.31B with expectations of raising production levels, and keeping costs low. Shares of Quicksilver closed down 2.58% for the week.
-General Electric’s reported inline earnings and announced that its NBC Universal unit, along with financial partners Bain Capital LLC and Blackstone Group signed a deal to acquire the Weather Channel for ~$3.5 billion, after the previous potential buyer, Time Warner , sought out of the deal. GE also publicized that it is seeking a spin-off of its consumer and electronics unit. GE’s stock rose 2.8% for the week.
-APP Pharmaceuticals, the U.S. maker of injectable pharmaceuticals agreed to a $3.7B acquisition by German global health care group, Fresenius SE, as the company expects to take control of APP’s dialysis drug unit. Shares of APP’s Pharmaceuticals rallied 34.5% for the week on the acquisition news.


M&A, Deals, Corp Actions:
-Belgian brewer InBev NV sweetened the merger deal with Anheuser-Busch by boosting its offer price up by $5 a share to $70 in order to seal the deal with the famous U.S. brewer. Shares of BUD increased 7.8% for the week on the enticing deal terms.
-Hercules agreed to be acquired by Ashland for $2.6 billion, as it has been the second major chemical deal for the week. Ashland expects the merger to consolidate many of the soaring costs related to energy expenses facing the company. Hercules stocks soared 29.6%, while Ashland shares sank 12% for the week.
-Rohm & Haas reached an acquisition agreement with rival Dow Chemical for $15.3B, as Dow tries to broaden its product offerings and expand in the higher margin chemical business. Share of ROH rallied ~66% for the week on the merger news.
-Quicksilver Resources agreed to buy Barnett Assets, the nation’s largest natural gas field for $1.31B with expectations of raising production levels, and keeping costs low. Shares of Quicksilver closed down 2.58% for the week.
-General Electric’s reported inline earnings and announced that its NBC Universal unit, along with financial partners Bain Capital LLC and Blackstone Group signed a deal to acquire the Weather Channel for ~$3.5 billion, after the previous potential buyer, Time Warner , sought out of the deal. GE also publicized that it is seeking a spin-off of its consumer and electronics unit. GE’s stock rose 2.8% for the week.
-APP Pharmaceuticals, the U.S. maker of injectable pharmaceuticals agreed to a $3.7B acquisition by German global health care group, Fresenius SE, as the company expects to take control of APP’s dialysis drug unit. Shares of APP’s Pharmaceuticals rallied 34.5% for the week on the acquisition news.

Commodities:
-Crude Oil for August delivery climbed as much as $5.6 on Friday from prior day’s close, setting a new all-time intraday high of $147.27/barrel as it rallied on geopolitical risks linked to Iran’s missile tests, a renewed Nigerian supply disruption, and pulled higher by dollar weakness due to Fannie and Freddie's decline. Crude settled at $145.08/barrel slightly below its record close on 7/03, but almost flat or -0.14% for the week.
**A new record in the national average price of gasoline was reported as per AAA’s fuel gauge report at $4.108/gallon on 7/07.
**According to AAA, Diesel also reached a new national record at $4.814/gallon as of 7/10.
-Heating Oil for August delivery reached a fresh intraday high of $4.1586/gallon on 7/11 as it galloped on crude’s rally, but closed slightly down 0.72% for the week.
-Gold for August delivery surged $18.6 to settle at $960.6/ounce on Friday, as it is seen as a safe-haven investment amidst an equity market decline, and a depreciating dollar. Gold was amongst the few commodities that closed up 2.89% for the week.
-Corn for December delivery fell more than 8% for the week, and closed at $7.0425/bushel on 7/10, its lowest level in a month, as favorable crop weather returned to the U.S. Midwest after severe spring storms had delayed planting last month.
-Soybean Meal for November delivery rebounded at the middle of the week on bargain-hunting and higher demand from emerging countries like China, settling at $15.96/bushel on Friday, but finished down 2.15% for the week.

Currencies:
-Friday, the US dollar depreciated across the board, as comments from Treasury Secretary Paulson suggested that the government might not take action to support Fannie Mae and Freddie Mac, reigniting investors’ concerns over the health of the struggling financial sector. Surging crude oil prices to a new all-time high of $147.27 per barrel did not help the greenback either.
-The dollar index hit an intraday low of 71.80 on Friday, or its lowest level since April 24. Friday afternoon, the dollar index was at 71.92, down –1.13%.
-The euro hit an intraday high of $1.5944 versus the greenback on Friday, rising to its highest level since April 23. Friday afternoon, the euro traded at $1.5883 per euro, from $1.5785 late Thursday. The euro gained momentum against the greenback as credit worries weighed on US markets.
-The pound sterling modestly rose for the week versus the US dollar, following the Bank of England decision on Thursday to keep interest rates at 5%.
The British pound traded at $1.9881 per pound on Friday, from $1.9781 late Thursday. PPI data released on Monday will provide further insight into the United Kingdom economy.
-Against the yen, the US dollar traded at 106.43 yen, from Y107.06 late Thursday, while the dollar traded at 1.0174 Swiss francs, from 1.0277 francs late Thursday.
Highlights: Poland
Poland’s currency hit a fifteen-year high against the US dollar this week, trading at 2.0503 zloty per US dollar, according to Thompson Reuters data. Poland’s economy minister, Waldemar Pawlak, stated on Friday that the Monetary Policy Council might halt raising interest rates due to the zloty’s current levels. The zloty has appreciated 16.83% year-to-date versus the greenback.

Market Stats:
· The Dow ended down -188.00 or -1.67% for the week
-Friday, the Dow closed at 11,100.54, down -128.48 or -1.14%
-The Dow is Negative YTD down -16.32%
-The Dow is off by -3,063.99 or -21.63% from the market peak on October 9th of 14,164.53

· The NASDAQ ended down -6.30 or -0.28% for the week
-Friday, the NASDAQ Composite closed at 2,239.08, down -18.77 or -0.83%
-The NASDAQ is Negative YTD down -15.58%
-The NASDAQ is off by -620.04 or -21.69% from the market peak on October 31 of 2,859.12

· The S&P 500 ended down -23.41 or -1.85% for the week
-Friday the S&P 500 closed at 1,239.49, down -13.90 or -1.11%
-The S&P is Negative YTD down -15.59%
-The S&P is off by -325.66 or -20.81% from the market peak on October 9th of 1,565.15

S&P Sector Performance for the week ending Friday, July 11, 2008:
S&P 500 Health Care Sector (.GSPHC) Up 4.67 or 1.31%
S&P 500 Materials Sector (.GSPM) Up 1.17 or 0.48%
S&P 500 Consumer Staples Sector (.GSPS) Up 1.22 or 0.44%
S&P 500 Utilities Sector (.GSPU) Up 0.21 or 0.10%
S&P 500 Industrials Sector (.GSPI) Up 0.28 or 0.09%
S&P 500 Telecomm Services Sector (.GSPTS) Down -0.90 or -0.68%
S&P 500 Information Technology Sector (.GSPT) Down -4.16 or -1.18%
S&P 500 Energy Sector (.GSPE) Down -25.41 or -4.02%
S&P 500 Consumer Discretionary Sector (.GSPD) Down -8.93 or -4.06%
S&P 500 Financials Sector (.GSPF) Down -17.05 or -6.34%

S&P Top 10 Performers for the week ending Friday, July 11, 2008:
Rohm and Haas Co (ROH) Up 29.64 or 65.78%
Hercules Inc (HPC) Up 4.79 or 29.64%
Ambac Financial Group Inc (ABK) Up 0.38 or 28.57%
Fifth Third Bancorp (FITB) Up 1.92 or 18.18%
Yahoo! Inc (YHOO) Up 2.22 or 10.40%
Ford Motor Co ( F) Up 0.44 or 9.95%
QLogic Corp (QLGC) Up 1.37 or 9.67%
The EW Scripps Co (SSP) Up 0.28 or 9.56%
ConAgra Foods Inc (CAG) Up 1.53 or 7.87%
Anheuser Busch Companies Inc (BUD) Up 4.83 or 7.83%

S&P 10 Worst Performers for the week ending Friday, July 11, 2008:
Freddie Mac (FRE) Down -6.75 or -46.55%
Fannie Mae (FNM) Down -8.53 or -45.42%
MGIC Investment Corp (MTG) Down -2.90 or -41.13%
Lehman Brothers Holdings Inc (LEH) Down -8.42 or -36.85%
Office Depot Inc (ODP) Down -3.97 or -36.73%
Wachovia Corp (WB) Down -3.34 or -22.45%
Xl Capital Ltd (XL) Down -3.62 or -18.22%
Regions Financial Corp (RF) Down -1.77 or -17.17%
OfficeMax Inc (OMX) Down -2.39 or -17.10%
Intercontinental Exchange Inc (ICE) Down -17.60 or -16.60%

Dow Top Performers for the week ending Friday, July 11, 2008:
ALCOA Inc (AA) Up 1.86 or 5.67%
General Electric Co (GE) Up 0.75 or 2.79%
International Business Machines Corp (IBM) Up 2.58 or 2.16%
Johnson and Johnson (JNJ) Up 1.14 or 1.75%
Pfizer Inc (PFE) Up 0.06 or 0.34%
McDonald's Corporation (MCD) Up 0.13 or 0.23%
AT&T Inc (T) Unchanged
Intel Corp (INTC) Down -0.02 or -0.10%
Procter & Gamble Co (PG) Down -0.22 or -0.35%
Wal-Mart Stores Inc (WMT) Down -0.31 or -0.55%

Dow Worst Performers for the week ending Friday, July 11, 2008:
American International Group Inc (AIG) Down -3.16 or -12.04%
Chevron Corp (CVX) Down -6.38 or -6.47%
JPMorgan Chase and Co (JPM) Down -2.15 or -6.09%
The Walt Disney Co (DIS) Down -1.70 or -5.50%
Merck & Co Inc (MRK) Down -1.70 or -4.42%
Home Depot Inc (HD) Down -0.96 or -4.26%
Hewlett-Packard Co (HPQ) Down -1.85 or -4.26%
Citigroup Inc (C) Down -0.63 or -3.75%
Bank Of America Corp (BAC) Down -0.73 or -3.26%
Exxon Mobil Corp (XOM) Down -2.79 or -3.16%

Key Earnings next week:
Monday: Genentech (DNA), Novellus (NVLS), M&T Bank (MTB)
Tuesday: Johnson & Johnson (JNJ), State Street (STT), US Bancorp (USB), Intel (INTC)
Wednesday: Abbott Labs (ABT), Wells Fargo (WFC), Delta Airlines (DAL), eBay(EBAY)
Thursday: Coca Cola (KO), JP Morgan (JPM), Merrill Lynch (MER), Microsoft (MSFT), (IBM)
Friday: Citigroup (C), Honeywell (HON), Mattel (MAT), Schlumberger Ltd. (SLB)

Economic Data next week:
Tuesday: Producer Price Index (PPI), Retail Sales
Wednesday: Consumer Price Index (CPI), Industrial Production, Capacity Utilization
Thursday: Housing Starts, Jobless claims, Building Permits, Philadelphia Fed

Bythenumbers.cnbc.com

  Price   Change %Change
ASH
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ABI
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BX
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COST
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DOW
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FNMA
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FMCC
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GE
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HP
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KWK
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.RLX
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TWX
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VIX
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WMT
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C
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INTC
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JPM MLP ETN
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