AOL Dumped, Einhorn Shorts Moody's, Stocks Soar

By | TradingMarkets.com | May 28, 2009 04:30 PM
Symbols: MCO, KMX, MAR, RYL, DSW

An improved treasury market sent stocks soaring despite dismal news from General Motors and the housing front. General Motors has settled on June 1st as a final date for bankruptcy and home foreclosures climbed to a record high dampening stocks strong upward momentum. Time Warner finally decided to dump its money losing AOL unit after failing to find bidders for the internet dinosaur. The DJIA soared +103.78 to 8403.80, the Nasdaq advanced +20.71 to 1751.79, and the S&P 500 climbed +13.77 to 906.83.


Ryland Group ( RYL | Quote | Chart | News | PowerRating) - Led the home builders lower on the bad foreclosure and mortgage delinquencies dropping 10.24% or $1.95 to $17.08/share.


CarMax ( KMX | Quote | Chart | News | PowerRating) - Surged 10.22% or $1.02 to $11.10 after being upgraded to buy by Deutsche Bank.


DSW ( DSW | Quote | Chart | News | PowerRating) - The shoe retailer fell 13.49% or $1.72 to $11.25/share upon forecasting full year profits missing analysts estimates.


Moody's ( MCO | Quote | Chart | News | PowerRating) - Famed hedgie David Einhorn leaked that he is shorting the rating company sending shares down 4.41% or $1.25 to $26.90/share.


Oil added $1.63 to $64.69, Gold climbed $8.00 to $963.20 and the fear index VIX fell 2.13% to 31.67.


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Market Snapshot
















Dow

 +103.78 8403.80










NASDAQ

 +20.71 1751.79






S&P 500

 +13.77 906.83










Economic
News









S&P/CaseShiller Home Price Index (Mar): Consensus: -18.4%, Prior: -18.63%


Consumer Confidence (May): Consensus: 42.0, Prior: 39.2


Existing Home Sales (Apr): Consensus: 4.65M, Prior: 4.57M


Durable Goods Orders (Apr): Consensus: 0.5%, Prior: -0.8%


Durables Ex-Transport (Apr): Consensus: -0.3%, Prior: -0.6%


Initial Claims (05/23): Consensus: NA, Prior: 631K


New Home Sales (Apr): Consensus: 356K, Prior: 356K


Crude Inventories (5/22): Consensus: NA, Prior: -2.10M


GDP - Prelim. (Q1): Consensus: -5.5%, Prior: -6.1%


GDP Deflator (Q1): Consensus: 2.9%, Prior: 2.9%


Chicago PMI (May): Consensus: 42.0, Prior: 40.1


Mich Sentiment-Rev (May): Consensus: 68.0, Prior: 67.9


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Read David's latest thoughts on his blog, www.marketsurfer.com
Original publication: May 28, 2009
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