What Sparked Today's Choppy Session? – October 27, 2009

Stocks Finish Mostly Lower

Today’s session ended mostly lower as investors mulled over some mixed data. The Nasdaq and S&P 500 slumped, while the DJIA managed to hold on to some gains. Two stocks fell for every one that rose on the New York Stock Exchange, where volume came to 1.2 billion shares. Stocks initially rose following a report that home prices in 20 major metropolitan markets increased. A surprise drop in consumer confidence quickly sent the session in the opposite direction. Weakness in banks, techs, retailers and transportation stocks also dragged on the session. Shares of Chevron (CVX), Exxon Mobil (XOM), Wal-Mart (WMT), and Coca-Cola (KO) kept the Dow on higher ground until the closing bell. Bond prices rose after a Treasury Department auction of $44 billion in two-year notes drew robust demand. The dollar gained versus the euro, after falling to a 14-month low last week. But the greenback fell versus the yen.

Ford Motors Co. (F) was the only company out of the Big Three that didn’t require bailout funds from Uncle Sam and now the automaker has earned another title. The company has been declared as the only domestic automaker with world-class reliability.

Video — Ford Dominates Domestics

Shares of United States Steel Corp (X) and AK Steel Holding Corp. (AKS) came under downward pressure after reporting lower third-quarter results and gloomy outlooks. This year has been tough for both companies. U.S. Steel recorded its first quarterly loss in five years when it reported its first-quarter results in April.

Galleon Group’s liquidation of its hedge funds’ portfolios is 90 percent complete according to people familiar with the situation. The lengthy legal proceedings that will take place seem to be a boon for the lawyers tapped to represent those implicated. The recent scandal at Galleon brings up a very important question. What can investors do when their hedge funds implode?

The board at IBM (IBM) has approved the infusion of another $5 billion into its stock repurchase plan. The new funding will be added to the $4.2 billion remaining from an earlier stock buyback authorization.

Consumers haven’t become comfortable enough with the economy to start blowing money on resort vacations and gambling. Wynn Resorts (WYNN) said that its third quarter profit plunged 33% from last year, hurt by higher costs. Without people throwing away millions, the company is finding it hard to counteract the rising costs.

Trading volume may be up at TD Ameritrade (AMTD), but fourth quarter earnings headed the opposite direction.

Video — Ameritrade CEO on Earnings, Outlook

Home prices posted another modest rise in August, according to latest data released today. Government intervention appears to have been the motivating factor behind the more stable picture.

A Closer Look at the Case-Shiller Housing Numbers

Other Juicy Tidbits

Video — Is Your 401K Out of the Woods?

GMO Quarterly Letter — Just Deserts and Markets Being Silly Again

Four Ways to Pull an Economy Out of Recession

Why big banks hate banking? — The stage is set for too-big-to-fail banks such as Citigroup and Bank of America to take on greater risks in pursuit of profits, counting on taxpayers to make good their losses.

Most analysts see further gains in Apple’s (AAPL) stock price, but the bigger the company gets, the harder it will be to achieve game-changing growth. How much longer can this rally last?

Gold: A Bubble Brewing?

Five reasons US retailers may have a jollier holiday this year.

Why we don’t hate Wal-Mart anymore — The evil empire doesn’t look so bad, now that Americans have Wall Street to kick around and a new appreciation for those everyday low prices.