The Trader's Path: 29 August 2012 AMC

29 August 2012

Market Summary

I was right on this... A Flat day...

Market Internals

Volumes are still pathetic as always...

Leaders and laggards

The energy sector had some movements due to the oil inventory report which a over production vs an expectation of under production...

Technical Updates

Seems that the market is waiting for something happen again... holding at the critical support level. Once the level is breached... GGed..

Commentaries

Stock Market Update

16:10 ET Dow +4.49 at 13112.59, Nasdaq +4.05 at 3081.19, S&P +1.19 at 1410.49 :[BRIEFING.COM] Today's lackluster session saw equities hover within points of the unchanged line for the majority of the day. Economic data was mostly positive, but did little to inspire investor confidence. As a result the S&P 500 ended higher by 0.1% on light volume.

The Federal Reserve has released its August Beige Book which aggregates economic condition reports from the twelve Federal Reserve Districts. The Book suggested "economic activity continued to expand gradually in July and early August." It also noted an improvement has taken place in credit conditions and the housing market. Sales and construction continue to rise gradually while employment is holding steady or showing only marginal improvement. Several Districts cited declining demand for staffing services while most Districts indicated that retail activity, including auto sales, had increased since the last Beige Book.

Healthcare stocks were higher as a handful of names advanced on upgrades. Genetic Technologies (GENE 3.93, +0.81) soared 26.0% after positive comments were made by boutique firm Lodge Partners. PROLOR Biotech (PBTH 4.88, +0.19) ended higher by 4.1% following the initiation of coverage at Oppenheimer where the stock was given an ‘outperform' rating with a $7.00 price target. Elsewhere, Cyberonics (CYBX 49.67, +3.31) advanced 7.1% as the shares were upgraded from ‘hold' to ‘buy' at Canaccord Genuity. In addition, analysts at Piper Jaffray elevated the price target for Cyberonics from $44.00 to $52.00.

For-profit education stocks slumped after Lincoln Educational Services (LINC 4.27, -0.09) was downgraded from ‘outperform' to ‘perform' at Oppenheimer. The downgrade was attributed to slowing enrollment as well as seven campus closures. As a result, shares of Lincoln slid 2.1%. Other for-profit education stocks were also lower as slowing enrollment will likely affect all providers. Career Education (CECO 3.22, -0.11) andDeVry (DV 18.60, -0.52) slipped 3.3% and 2.7%, respectively.

Yelp (YELP 22.37, +4.11) surged 22.5% as the share lock-up expired today. The event was anticipated by short sellers as it often leads to insider selling. However, Yelp was able to buck the trend and instead made an advance. Other social media names were mixed as Groupon (GRPN 4.31, -0.06) fell 1.4% and Pandora Media (P 10.08, -0.10) slipped 1.0% ahead of its earnings release after the close.

Energy stocks trailed behind the broader market as crude oil fell over 1.0%. Halliburton(HAL 33.51, -0.57) lost 1.7% while Schlumberger Limited (SLB 72.96, -1.14) ended lower by 1.6%. Meanwhile, GreenHunter Energy (GRH 2.24, +0.08) climbed 3.7% after eliminating all outstanding convertible preferred shares.

The second estimate of second quarter GDP pointed to a 1.7% increase, up from the 1.5% increase that was featured in the preliminary reading. The upwardly revised increase was better than the 1.6% improvement that economists polled by Briefing.com had expected. Also, the second quarter GDP Deflator was left unrevised to reflect a 1.6% increase.

Pending home sales for July increased by 2.4%, which was better than the unchanged reading that had been expected. The rise also made for a positive turn from the 1.4% decrease that was experienced in the prior month.

Tomorrow's economic data includes initial and continuing claims as well as personal income and spending. All data points will be released at 8:30 ET.

The U.S. Treasury will hold a $29 billion 7-yr note auction. ..NYSE Adv/Dec 1781/1168. ..NASDAQ Adv/Dec 1467/966.

After Hours

17:18 ET P +9.1%, TIVO +5.6%, VRA -10.7% following earnings/guidance :

Today's lackluster session saw equities hover within points of the unchanged line for the majority of the day. Economic data was mostly positive, but did little to inspire investor confidence. As a result the S&P 500 ended higher by 0.1% on light volume.

Today after the close the following companies reported earnings: CWST, CHUY, CWTR, FLOW, GWAY, GEF, OXM, P, TIVO, VRA, WFT

Futures are lower after hours: S&P 500 futures are -1.59 from fair value of 1408.79 and Nasdaq100 futures are -2.29 from fair value of 2782.79.

Tomorrow morning before the open three economic reports are scheduled to be released: 1) Initial Claims (Consensus 370k) and Continuing Claims (Consensus 3300k), 2) Personal Income (Consensus 0.3%) and Personal Spending (Consensus 0.5%) and 3) PCE Prices - Core (Consensus 0.1%).

Tomorrow before the open look for the following companies to report: BRLI, CIEN, MEI, TD