Apple keys a late-day rebound

The Dow shows a small loss, but Apple shares reverse to end the day higher. Google slips. September auto sales are the best since 2008. Spanish premier Rajoy says a bailout request isn't 'imminent.' T-Mobile may buy MetroPCS.

By Charley Blaine Oct 2, 2012 12:55PM
Charley BlaineUpdated: 8:35 p.m. ET

Stocks opened October with a nice rally. Today, on the second day of the month, the market finished basically unchanged after a rebound kicked in around 3 p.m. ET.

The rebound tracked a recovery in shares of Apple (AAPL), which had fallen to as low as $650.05 but recovered to $661.31, up $1.92.  The $650 level has emerged as a very important support level for Apple shares.

Apple's rebound helped the Nasdaq Composite Index ($COMPX) and the Nasdaq-100 Index ($NDX) end the day with decent gains. The Standard & Poor's 500 Index ($NDX) also finished in the black. Also giving the market support: Auto sales ran at a seasonally adjusted 14.9 million units in September, the best sales rate since March 2008.

In addition, shares of MetroPCS Communications (PCS) finished up $2.05 to $13.57, tops among S&P 500 stocks, on reports that Deutsche Telekom's (DTEGY) T-Mobile USA was planning to acquire the mobile phone company, with a deal announced possibly on Wednesday.

The Dow Jones industrials ($INDU) did close down 33 points to 13,482, but the blue chips had been down as many as 90 points. The S&P 500 closed up 1 point to 1,446, and the Nasdaq was up 7 points to 3,120. The Nasdaq-100 added 5 points to 2,799.

Article continues below.
Google (GOOG) hit a new intraday high of $765.99 but fell back to $756.99, down $4.79.

Chipotle Mexican Grill (CMG) was off $13.17 to $302.96 after investor David Einhorn told a New York investment conference that the company was vulnerable to pricing pressures from rival Taco Bell. Einhorn also told the Value Investment Conference that he was betting on  General Motors (GM) as a stock that was cheap.

The recovery came despite disappointment that Spanish Prime Minister Mariano Rajoy said a request for rescue funds for his country was "not imminent." Spanish bonds and stocks had rallied in anticipation of a bailout request that would pave the way for the European Central Bank to buy the nation’s debt.

There was some cheer from a report that U.S. home prices saw their biggest year-on-year jump in August in six years, more evidence that the market recovery has gained traction.

Data provider CoreLogic reported a 0.3% gain in prices in August, to take the year-on-year jump to 4.6%.

Wednesday brings the release of minutes from the Federal Reserve's Sept. 12-13 meeting as well as the Institute for Supply Management's services index for September. In addition, ADP will release its September report on private-sector job growth.

Futures trading suggests a flat open.

A good September for auto sales
The auto sales in September were quite solid -- especially for non-U.S. companies.

Total deliveries to dealers were up 7% from August and 12% from September 2011.  Toyota (TM), Honda Motor (HMC), Kia and Subaru reported sales gains of 30% or more from a year ago. The gains were due in part to recovery from the 2011 earthquake and tsunami in Japan.

Toyota's sales of some 172,000 were just below those of Ford Motor (F). Ford sold 175,878 vehicles, up 1% from a year ago. Lower truck sales offset gains for small cars.

General Motors sales were up slightly. Chrysler sales were up 11.8% from a year ago. Volkswagen (VLKAY) sales were up 41% from a year ago.
The market is waiting . . .
The market has been trading in a narrow range for several weeks. There was talk today that traders are waiting for the start of the third-quarter earnings season, which starts after Tuesday's close when Dow component Alcoa (AA) reports. Alcoa was off 6 cents to $8.85.

But there may be some reluctance to make big moves ahead of Wednesday's presidential debate in Denver.

Energy prices -- New York close



Tues.

Mon.

Month chg.

YTD chg.
Crude oil (-CL)

$91.89

$92.48

-0.33%

-7.02%
(per barrel)











Heating oil (-HO)

$3.1255

$3.1358

-1.07%

7.25%
(per gallon)











Natural gas (-NG)

$3.5310

$3.4800

6.36%

18.13%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.8692

$2.9201

-1.74%

7.97%
(per gallon)











Brent crude 

$111.57

$112.19

-0.73%

3.90%
(per barrel)











Retail gasoline

$3.7800

$3.7820

-0.18%

15.38%
(per gallon; AAA)












Crude oil and gold move lower
Crude oil in New York was down 17 cents to $92.31 a barrel in New York. Brent crude was off 28 cents to $111.91.

The national average price of gasoline was $3.78 a gallon, down from Monday's $3.782 a gallon, according to AAA's Daily Fuel Gauge Report.

Gold (-GC) settled down $7.70 to $1,775.60 an ounce in New York. Silver (-SI) fell 28.3 cents to $34.669 an ounce. Copper (-HG) settled up 1.55 cents to $3.801 a pound.

A defensive day
This was a day where defensive stocks -- utilities, health care and telecom stocks -- were the market leaders.

Only 10 of the 30 Dow stocks was higher, led by Chevron (CVX), newcomer UnitedHealth Group (UNH) and Microsoft (MSFT), the publisher of MSN Money.

The Dow's losses were concentrated in six stocks: DuPont (DD), McDonald's (MCD), Procter & Gamble (PG), IBM (IBM), American Express (AXP) and Boeing (BA), all of which have significant exposure to Europe.

Meanwhile, 285 S&P 500 stocks were higher, led by MetroPCS, First Solar (FSLR) and Wellpoint Health Networks (WLP). The laggards were Sprint Nextel (S) -- a reaction to the MetroPCS  news -- Chipotle and J.C. Penney (JCP).

The fourth worst performer was fertilizer Mosaic (MOS), down $2.25 to $55.76 after fiscal-first-quarter results missed Street estimates. The company insisted the miss was due to dealers delaying purchases until they have a clearer picture of farmer planting intensions.

Fifty-nine Nasdaq-100 stocks were higher, led by BlackBerry-maker Research In Motion (RIMM) and chip-maker SanDisk (SNDK).

Short hits from the markets -- New York close



Tues.

Mon.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.0900%

0.080%

0.00%

800.00%
5-year Treasury note 

0.614%

0.620%

-2.54%

-26.02%
10-year Treasury note

1.615%

1.625%

-1.34%

-13.68%
30-year Treasury bond

3.032%

3.032%

0.00%

4.95%
Currencies











U.S. Dollar Index

79.83

79.909

-0.24%

-0.86%
British pound

1.6142

1.6137

-0.11%

3.89%
(in U.S. $)

 








U.S. $ in pounds

£0.620

£0.620

0.11%

-3.74%
Euro in dollars

$1.29

$1.29

0.67%

-0.13%
(in U.S. $)

 








U.S. $ in euros

€ 0.773

€ 0.776

-0.67%

0.13%
U.S. $ in yen 

78.19

78.00

0.28%

1.41%
U.S. $ in Chinese

6.31

6.28

0.45%

-0.26%
yuan











Canada dollar

$1.017

$1.019

0.07%

3.71%
(in U.S. $)

 








U.S. dollar 

$0.984

$0.982

0.00%

-3.58%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,775.60

$1,783.30

0.10%

13.33%
(per troy ounce)

 








Copper (-HG)

$3.801

$3.786

1.14%

10.62%
(per pound)

 








Silver (-SI)

$34.6690

$34.9520

0.27%

24.19%
(per troy ounce)

 








Wheat (-ZW)

$8.7150

$8.8425

-3.43%

33.51%
(per bushel)

 








Corn (-ZC)

$7.5825

$7.568

0.26%

17.29%
(per bushel)

 








Cotton 

$0.7185

0.712

1.70%

-21.63%
(per pound)

 








Coffee

$1.8365

1.7805

5.85%

-20.03%
(per pound)

 








Crude oil (-CL)

$91.89

$92.48

-0.33%

-7.02%
(per barrel)










 

423Comments
Oct 2, 2012 1:55PM
avatar
Jeep said;
"For 8 years I heard Dick Cheney say "debt doesn`t matter".What changed?"


What's changed is that Obama is going to turn our National Debt into our National Death.
Oct 2, 2012 1:16PM
avatar

The economy stinks because of the actions of the POTUS.  Obama stated clearly in the 2008 campaign that if he could not get the economy working and unemployment below 8% he should be a one-term president.  Now he wants four more years.  Doesn't say much for his integrity.  

Also, he was supposed to bring everyone together.  This is the most divided country I have seen in my lifetime.  The negative ads are bad on both sides, but the ones against Romney are absolutely over the top.

Oct 2, 2012 2:09PM
avatar
Obama quote 'the stimulus has worked,i just need more time"  for what? to finish us off? i mean the economy, i meant  the country, and healthcare, and redistribution of  O P M ,and another  5 trillion        to add to the deficit ?
Oct 2, 2012 1:59PM
avatar
"The NAACP is taking to the U.N. its effort to ensure that all former convicted felons in the United States can vote.

A delegation from the National Association for the Advancement of Colored People was holding meetings Tuesday at the United Nations' Geneva office in part to press the U.N. Human Rights Council to send its rapporteur on racism to the U.S. to look into alleged racially discriminatory election laws so the council can recommend ways for U.S. authorities to restore all citizens' voting rights — including people previously incarcerated."


Not sure we need to worry about that. We're already letting illegals and dead people vote. What more do they want?

Oct 2, 2012 1:30PM
avatar

USA is next....national debt is over 16 trillion dollars....up 5 trillion for the past 4 years of Obama reign.

US will default before December 31, 2012.

Oct 2, 2012 1:48PM
avatar
Jeep said:
"It`s raining here.The far right would say it`s Obama`s fault."

And the left will blame it on Global Warming.

Oh, and I don't recall Obama ever standing in line to take responsibility for anything, except that we've "Turned the Corner" 
Now that right there, is a hoot!
Oct 2, 2012 2:27PM
avatar
Obama and the main stream media tell us nothing but lies and distortions.  Its obvious that  NBC, ABC and CBS are just like  the Nazis party,  They slant the news to make the conservatives look bad.  We need  a  " Radio Free Europe" too tell us the truth!  Please broadcast to us!  They, the TV and paper media lie or slant the news, and fail to report what is really happening in the USA , and the rest of the world, if it has any negative effect to the Obama administration.
Oct 2, 2012 3:06PM
avatar
Urena said:
 
"Actually Bush armed the Mexicans.  They intentionally sold Arms to then trace them and Holder immediately seized the operation."
 
The above statements are untrue.  Either intentionally or by ignorance of the facts. 
 
The latest gun fiasco, fast and furious, and the one we are all talking about BEGAN UNDER THE OBAMA ADMINISTRATION. 
 
The guns that were used in the killing in Juarez at the qunincinera, were guns sold in 2009 under the Obama administation.    
 
There were other operations under Bush, but not the ones we're talking about and they did not involve the guns that were used in the killing of the border agent or in Juarez.
 
I don't know where Urena gets his propaganda.      
Oct 2, 2012 3:13PM
avatar
Bush didn't run guns - Obama did. Two different operations - one stopped by Bush. The other belongs to your guy - along with not protecting our overseas staff on 9/11, over 4 times the military deaths in Afganistan in 3 year vs 8 years before. Maybe our guys need to be able to fire first and at least have ammo. Just saying...

I know many of you can't help but back Obama, that's fine. You should however get your facts at least close to right.
Oct 2, 2012 2:58PM
avatar

I guess when votes are at stake, the law does not matter -


Defense contractor Lockheed Martin heeded a request from the White House today — one with political overtones — and announced it will not issue layoff notices to thousands of employees just days before the November presidential election.

Lockheed, one of the biggest employers in the key battleground state of Virginia, previously warned it would have to issue notices to employees, required by law, due to looming defense cuts set to begin to take effect after Jan. 2 because of the failure of the   — the  so-called Super-committee, which was created to find a way to cut $1.5 trillion from the federal deficit over the next decade.

Oct 2, 2012 2:56PM
avatar

GM is No. 1 again - really? 

 

Obama hosed the former stockholders of GM and the taxpayers.  I will not purchase a GM car or a car built by an LLC - Limited LIABILITY Company- are you kidding me!

 

Sales for September -

 

Toyotya +41.5%

VW + 34.4%

Chrysler + 12%

GM + 1.5%

Ford + 1%

 

The tsunami in Japan is the ONLY reason GM was # 1 in 2011.  It will not  happen in 2012, 2013, 2014 ............

 

Oct 2, 2012 2:34PM
avatar
The Obama money grab is getting even more absurd. Now the newest plan by the communists is to deny wealthy households unemployment benefits even though unemployment insurance premiums were paid into the system for that individual. They won't be satisfied until every person with a will to build up their wealth is reduced to dependence on the government for everything.
Oct 2, 2012 1:41PM
avatar
Futures were up on Spain Bailout hopes, and Stocks are down on Spanish Worries.

Hey, I guess you really can have it both ways.
Oct 2, 2012 1:28PM
avatar
SPAIN ... congratulations, you rule the markets!!!
Oct 2, 2012 1:57PM
avatar

I read these comments everyday and the dow is down because  of  Europe wooes the next day it's up because

Europe is okay and on  and on. Get real and think about the real reason. It's our economy.

Oct 2, 2012 3:01PM
avatar
Obama does no wrong....just ask your local libtard, he will prove it to you.
Oct 2, 2012 2:51PM
avatar
Obama to apologize to Mexico for causing them to shoot our BP agents.
Oct 2, 2012 1:26PM
avatar
Its easy, plain and simple     He is a liar
Oct 2, 2012 2:29PM
avatar
Worst human on earth
Thumbs up  -Bill Mahr
Thumbs down - George Soros

You mean most dangerous?
Soros, because he has the financial means to do far more damage.

Mahr just looks like his nose may ejaculate at any time.
Oct 2, 2012 3:06PM
avatar
retog   let me educate you. In the state of Arizona You have to fill out federal forms to obtain a firearm and produce VALID PICTURE IDENTIFICATION before it goes to ATF.
 you cannot just walk into a Walmart, hardware store, or pawn  shop.

  you therefore by your statement of " these guys were border guards it's their job"  is justifiable to waste their life?
 What kind of person are you?
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