17 September 2012
Market Summary
Bingo... Days like this are easier to speculate... market corrected a little bit on a monday.. However, I believe the bullishness will likely to continue either from Tuesday or Wednesday onwards.. other news to note is that the Empire Manufacturing Survey registered its worst reading since Apr 2009... somthing to be concerned about..
Market Internals
Looking at the internals, the volume went back to 665millions shares traded in the NYSE, while UVOL outpaced DVOL by more than double, DECN outpaced ADVN by around 2 times... a typical profit taking day... I'm definitely staying bull for the week... Provided Mario Draghi keep his mouth clean...
Leaders and laggards
Financials and the materials were hammered down yesterday, dragging down all other indices.. the financials got sold off yesterday without much clear reason... but the materials are being dragged down by a series of downgrades in the steel industry....
Technical Updates
Looking at all 3 indices... they are starting to retrace a little after the breakout... I reckon the correction should continue for 1 more day or so till the 3 indices found a support to bounce on before making new highs..
Commentaries
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| Stock Market Update |
16:10 ET Dow -40.27 at 13558.28, Nasdaq -5.28 at 3178.67, S&P -4.58 at 1461.19 :[BRIEFING.COM] Stocks began today's session on a negative note after the September Empire Manufacturing Survey registered its worst reading since April 2009. The bearish sentiment was then extended as unfounded rumors of tapping into the strategic petroleum reserve sent the major averages to fresh session lows. As a result, the S&P 500 ended lower by 0.3%.
Healthcare stocks outperformed the broader market on strength in biotech companies. The iShares Nasdaq Biotechnology ETF (IBB 143.15, +1.39) advanced 1.0% asGilead Sciences (GILD 65.80, +3.78) added 6.1% after positive comments were made by analysts before the open. Meanwhile, Spectrum Pharmaceuticals (SPPI 12.91, +0.90) and Onyx Pharmaceuticals (ONXX 81.26, +4.59) gained between 6.0% and 7.5%.
In M&A news, medical equipment supplier, IRIS (IRIS 19.54, +6.12) surged 45.6% after announcing that the company will be acquired by Danaher (DHR 54.84, +0.08) for $19.50 per share. The purchase price represents a 45.3% premium to IRIS' Friday closing price of $13.42. Following the acquisition, Feltl & Co downgraded shares of IRIS from ‘buy' to ‘hold.' Elsewhere, Complete Genomics (GNOM 3.02, +0.35) jumped 13.1% after the company entered into a definitive merger agreement with China-based BGI-Shenzhen. Per the agreement, a wholly-owned U.S. subsidiary of BGI-Shenzhen will launch a tender offer to purchase all outstanding shares of GNOM for $3.15 per share, representing an 18.0% premium to GNOM's Friday closing price of $2.67.
The Dow Jones Transportation Average slipped 1.5% as it underperformed the broader market. Within the bellwether group, only UPS (UPS 74.23, +0.55) and CSX Corp (CSX 23.26, +0.10) managed to stay marginally positive. Airline stocks were generally lower after Southwest Airlines (LUV 9.05, -0.02) and Delta (DAL 9.23, -0.04) raised roughly 10% of their round trip fares by $10. The two carriers both shed near 0.3%. Trucking and railroad stocks also showed considerable weakness as Con-way (CNW 29.22, -1.33) and Kansas City Southern (KSU 81.24, -2.39) ended lower by 4.4% and 2.9%, respectively.
Shares of major financials showed weakness after last week's broad rally. The SPDR Financial Select Sector ETF (XLF 16.13, -0.15) slipped 0.9% as most major names posted losses in the neighborhood of 1.0%. Bank of America (BAC 9.30, -0.25) andMorgan Stanley (MS 17.80, -0.44) both fell near 2.5%, while JPMorgan Chase (JPM 41.19, -0.38) and Goldman Sachs (GS 119.90, -1.46) lost near 1.0% each.
The materials sector was the weakest performer. The SPDR Materials Select Sector ETF (XLB 37.76, -0.59) slumped 1.5% as steel producers lagged after a series of downgrades. AK Steel (AKS 5.53, -0.34), Cliffs Natural Resources (CLF 42.36, -3.19),Reliance Steel & Aluminum (RS 54.99, -2.67), and United States Steel (X 21.31, -1.04) all posted losses between 4.5% and 7.0% after JP Morgan downgraded shares of the steelmakers from ‘overweight' to ‘neutral.'
Looking at tomorrow's earnings, FedEx (FDX 89.28, -0.87) will report its first quarter results before the bell. The company will be in focus after it recently lowered its earnings guidance to $1.37-1.43 from the original forecast of $1.45-1.60 per share.
The Empire Manufacturing Survey for September registered a reading of -10.4, which was down from the prior month's reading of -5.9. Economists polled by Briefing.com had expected that the Survey would rise to -3.0.
A handful of economic data points will be reported tomorrow. The current account balance will be released at 8:30 ET, while net long-term TIC flows and the NAHB Housing Market Index will be reported at 9:00 ET and 10:00 ET, respectively. ..NYSE Adv/Dec 936/2089. ..NASDAQ Adv/Dec 945/1500. |
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After Hours
16:40 ET No notable movers on earnings/guidance :
Stocks began today's session on a negative note after the September Empire Manufacturing Survey registered its worst reading since April 2009. The bearish sentiment was then extended as unfounded rumors of tapping into the strategic petroleum reserve sent the major averages to fresh session lows. As a result, the S&P 500 ended lower by 0.3%.
Today after the close no companies reported earnings.
Futures are lower after hours: S&P 500 futures are -0.33 from fair value of 1454.23 and Nasdaq100 futures are -2.07 from fair value of 2849.32.
Tomorrow morning before the open two economic reports are scheduled to be released: 1) Current Account Balance (Consensus -126.8B), and 2) Net Long-Term TIC Flows.
Tomorrow before the open the following companies are scheduled to report earnings: FDX, MANU, SHF
Commodities
By 12.44pm SG time, cotton and lean hogs were making some significant movement... However, the biggest movement of all is made by coffee, which fell 3%. Coffee is now making a retracement. If the fall continues... I'm gonna long SBUX...
Treasuries
For the treasuries, there's some significant profit taking yesterday... but i believe the bond yield is going to come down lower due to the QE3.
There's not much data coming out today so it should be a rather good trading day.. The only catalyst for a movement will only be a profit taking sentiment after such sharp rises.... However, i believe the some profit taking sentiment is still present in the market now, however, since the financials are being hammered down yesterday without much reasons, i believe that the market will be scooping them up today, and also with finding a intraday support on the indices will be provide some upside. The bulls and the bears are likely to have a tough fight today... So i'm gonna call the market Flat to the downside =D
Market Call: FLAT(to the downside)
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