30 August 2012
Market Summary
Whoa....That wasn't expected.. a sudden news from Spain saying that they want more commitment in bond purchasing program... Sending the market straight down... Everyone's eyes are on Bernanke's speech tomorrow... However, it was quite expected that nothing new is going to come out anyway... Attention was supposed to be Mario Draghi, but too bad he pulled out from the Jackson Hole..
Market Internals
Quite a down day... seems like people are profit taking before someone important really gyrate the market like no one's business...
Leaders and laggards
Materials, energy, and tech are the leaders for the down... not sufficient to call it a down day...
Technical Updates
The SPX closed below 1400 while the DOW held above 13000. If these are breached.. that's it...
Commentaries
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| Stock Market Update |
16:15 ET Dow -106.70 at 13005.89, Nasdaq -32.48 at 3048.71, S&P -11.01 at 1399.48 :[BRIEFING.COM] Equities hit session lows during the first hour of trade before spending the rest of the session climbing off those levels. Headlines out of Europe indicated the International Monetary Fund sees a "major challenge" in implementing measures for Greece. Another comment which rattled the markets came from Slovak Prime Minister, Robert Fico, who suggested there is a 50% chance of a euro area breakup. The news resulted in a sharp sell-off in risk assets as crude oil, gold, silver, and the euro all fell to session lows. Stocks were able to recover some of their losses before succumbing to late-day selling pressure which resulted in the S&P 500 closing lower by 0.8%.
Consumer staples showed slimmer losses than other sectors. Within the space, Costco Wholesale (COST 98.59, +1.48) advanced 1.5% after August same store sales increased by 6.0%. Other consumer names like Procter & Gamble (PG 66.88, +0.01), and CVS Caremark (CVS 45.20, -0.23) chopped around the unchanged line throughout the session as they resisted the broad market pressure.
Healthcare stocks also outperformed as few components moved on news. Sarepta Therapeutics (SRPT 14.40, +1.80) surged 14.3% after receiving some positive press over the course of the week. Today's advance came after a CBS affiliate in Jackson, MO profiled a 12-year old patient whose quality of life has improved exponentially thanks to Sarepta's Eteplirsen, which is a drug used in treatment of muscular dystrophy. Meanwhile, Sucampo Pharma (SCMP 4.98, +0.15) ended higher by 3.1% after the company's only holder of class B common stock converted all of its shares into class A common stock. Elsewhere, Geron (GERN 2.63, +0.22) and Oncolytics Biotech (ONCY 2.77, +0.13) moved higher after Stifel Nicolaus initiated coverage with a ‘buy' rating. The two stocks gained 9.1% and 4.9%, respectively on the news.
A handful of technology firms reported their earnings since yesterday's close. TIVO (TIVO 9.04, -0.32) slipped 3.4% after beating on earnings and guiding third quarter revenues below consensus. Elsewhere, Methode Electronics (MEI 9.38, +0.43) closed higher by 4.8% following an earnings beat and raised guidance, while CIENA (CIEN 13.46, -3.26) slumped 19.5% after posting an earnings miss and guiding lower.
Networking companies were under pressure after CIENA's cautious guidance. Management cited slower roll-outs, suggesting fewer funds are being used by corporations towards capital expenditures. The negative outlook spilled over to other networking companies as Juniper Networks (JNPR 17.75, -0.73), JDS Uniphase (JDSU 11.07, -0.68), and F5 Networks (FFIV 97.39, -4.70) lost between 4.0% and 6.0%. Meanwhile, Cisco Systems (CSCO 18.90, -0.30) outperformed, shedding 1.6%.
Energy stocks were one of the worst performers. With crude oil lower by 0.8%, the SPDR Energy Select Sector ETF (XLE 70.82, -0.76) fell 1.1% while most of the major names slipped in excess of 1.0%. Apache (APA 85.09, -1.44), Anadarko Petroleum (APC 68.26, -1.46), EOG Resources (EOG 105.89, -2.16), and Halliburton (HAL 32.81, -0.70) posted the widest losses and were all down roughly 2.0%.
The latest weekly initial jobless claims count totaled 374,000, which was higher than the expected 370,000. Today's tally matched the revised prior week count of 374,000. As for continuing claims, they fell to about 3.316 million from 3.321 million.
Separately, personal income increased by 0.3% in July, which was in-line with expectations. Personal spending rose by 0.4%, which was lower than the expected increase of 0.5%. Core personal consumption expenditures were unchanged month-over-month, against expectations of a 0.1% increase.
Tomorrow's economic data includes Chicago PMI at 9:45 ET, Michigan Sentiment at 9:55 ET, and factory orders at 10:00 ET.
Federal Reserve Chairman Ben Bernanke will comment on monetary policy in a highly anticipated address from Jackson Hole, WY at 10:00 ET. ..NYSE Adv/Dec 824/2124. ..NASDAQ Adv/Dec 619/1843. |
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After Hours
16:40 ET SPLK +12.1%, SAI +8.8%, OVTI +6.4%, ZUMZ -13.1% following earnings/guidance :
Equities hit session lows during the first hour of trade before spending the rest of the session climbing off those levels. Headlines out of Europe indicated the International Monetary Fund sees a "major challenge" in implementing measures for Greece. Another comment which rattled the markets came from Slovak Prime Minister, Robert Fico, who suggested there is a 50% chance of a euro area breakup. The news resulted in a sharp sell-off in risk assets as crude oil, gold, silver, and the euro all fell to session lows. Stocks were able to recover some of their losses before succumbing to late-day selling pressure which resulted in the S&P 500 closing lower by 0.8%.
Today after the close the following companies reported earnings: ESL, GMAN, MITL, OVTI, SAI, SPLK, ZUMZ
Futures are mixed after hours: S&P 500 futures are -1.19 from fair value of 1397.99 and Nasdaq100 futures are +1.17 from fair value of 2752.58.
Tomorrow morning before the open no economic reports are scheduled to be released.
Tomorrow before the no companies are scheduled to report earnings.
Commodities
Treasuries
Another sell off in the treasuries again...
All eyes will be on Bernanke today... I'm sooo not going to make a call.....
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