22 Oct 2012 AMC

22 Oct 2012

Market Summary 

What a volatile day... The market opened higher last night, and suddenly went into a massive downtrend that got so bearish. After lunch, the bears decided to take a break and let the bulls take over. I WAS RIGHT in my call !!  Not forgetting I made profit in both UTX swing and SPY scalp!

Market Internals

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The internals show a lot of fight between the bulls and the bears... no clear win yet..

Leaders and Laggards

As you can see..... the bulls din really win the day isn't it... there's still reminiscence of some bearishness around...

Technical Updates

A upside crucifix on a support for SPX and DOW.... it's likely to go up for the next day! 

Commentaries 

Stock Market Update 16:20 ET Dow +2.38 at 13345.89, Nasdaq +11.34 at 3016.96, S&P +0.62 at 1433.81 :[BRIEFING.COM] Stocks got off to a quiet start as mixed quarterly reports continued to pour in. Indecision was apparent in the early going as the major averages traded near their respective unchanged levels. As the day progressed, the S&P 500 and Dow headed lower. However, the final hour brought out bargain-hunters who lifted the major averages near their respective session highs. As a result, the S&P 500 ended unchanged. Meanwhile, the Nasdaq outperformed and settled higher by 0.4%.  Caterpillar (CAT 85.08, +1.22) advanced 1.5% after reporting mixed earnings. The industrial bellwether announced earnings of $2.54 against the Capital IQ consensus estimate of $2.24. However, the company's revenue of $16.45 billion missed the Capital IQ consensus by $470 million. In addition, the company lowered its full-year 2012 earnings and revenue guidance below consensus. Management commented on its cautious outlook by saying "CAT dealers have lowered order rates well below end-user demand to reduce their inventories."  The technology sector was the top performer after posting the largest loss during Friday's sell-off. Apple (AAPL 634.03, +24.19) gained 4.0% ahead of an event scheduled for 13:00 ET tomorrow. At the event, the company is expected to unveil a smaller version of the iPad tablet. The strong gains in Apple supported the Nasdaq throughout the day.  Cirrus Logic (CRUS 39.66, +1.44) rose by 3.8% after Feltl & Co. upgraded the stock to ‘strong buy' on an expectation of an earnings beat.  Elsewhere in tech, Netflix (NFLX 67.88, +2.90) advanced 4.5% after reports indicated the company is considering moving into seven new markets, including Asia.  Also of note, OpenTable (OPEN 46.36, +2.77) gained 6.4% after reports indicated Yahoo! (YHOO 15.77, -0.07) may be interested in purchasing the restaurant reservation service. Note that Yahoo! is scheduled to report its third quarter earnings after today's close.  Philips Electronics (PHG 26.23, +1.63) surged 6.6% after the electronics manufacturer reported a 13.6% year-to-year rise in revenues. The revenue of EUR6.13 billion was ahead of the Capital IQ consensus estimate of EUR5.96. Today's buying has lifted the stock to levels not seen since June of last year.  Utility stocks underperformed the broader market. Avista (AVA 25.54, -0.92), which specializes in generating and delivering electricity, lost 3.5% after the company lowered its third quarter and full-year 2012 earnings guidance below consensus. In addition, the company issued in-line guidance for full-year 2013 as it sees earnings between $1.62 and $1.76. Peer Public Service Enterprise (PEG 32.43, -0.28) slipped 0.9% after Credit Suisse downgraded the stock to ‘underperform' from ‘neutral.'  Elsewhere in utilities, electricity provider The AES Corporation (AES 10.81, -0.23) slid 2.1%.  The Dow Jones Transportation Average trailed the remaining industrials, and closed lower by 0.4%. Overseas Shipholding Group (OSG 1.23, -2.02) sank 62.2% after announcing it is evaluating its strategic options, including a potential filing of Chapter 11 bankruptcy. The company also said that its past financial statements are not to be relied upon, and restatements may be needed. The uncertainty regarding the company's future prompted Dahlman Rose to downgrade the stock to ‘sell' from ‘hold' with a $0.50 price target.  Railroad stocks within the transportation average were mixed. Norfolk Southern (NSC 66.83, +1.19) advanced 1.8%, while CSX (CSX 21.29, +0.19) added 0.9%. Meanwhile,Kansas City Southern (KSU 78.36, -0.07) shed 0.1% after reporting mixed quarterly results. The company's earnings of $0.82 fell $0.03 short of the Capital IQ consensus estimates, while the revenue was reported in-line with Capital IQ analyst expectations. Following the earnings release, the stock received a pair of downgrades. BB&T downgraded the stock to ‘hold' from ‘buy' while BMO Capital lowered the rating on KSU to ‘underperform' from ‘market perform.'  Also of note, FedEx (FDX 91.48, -0.63) and United Parcel Service (UPS 71.56, -0.74) lost 0.7% and 1.2%, respectively. Note that United Parcel Service will report third quarter earnings before tomorrow's open.  Peabody Energy (BTU 28.95, +3.06) reported third quarter earnings of $0.51. This exceeded the Capital IQ consensus estimates by $0.17. In addition, the company's revenues of $2.06 billion also beat the Capital IQ analyst expectations. The company's management issued in-line full-year 2012 guidance and said that "global macroeconomic conditions continue to be constrained due to the sluggish U.S. economy, European recession, and decelerating China growth." Peabody Energy settled higher by 11.8% following the earnings release. Meanwhile, peers Alpha Natural Resources (ANR 9.48, +0.51), Arch Coal (ACI 8.41, +0.50), and James River Coal (JRCC 5.31, +0.31) registered gains between 5.7% and 6.3%.  Monster Beverage (MNST 45.73, -7.58) fell 14.2% after the Food and Drug Administration received death reports citing the popular Monster energy drink. The company has since denied any wrongdoings. Today's selling has dropped the stock to levels not seen since January of this year.  Over the weekend, AMC Networks (AMCX 47.30, +1.77), Cablevision Systems (CVC 18.45, +0.06), and DISH Network (DISH 36.63, +1.16) announced a settlement in the VOOM HD litigation. Per the settlement, DISH Network paid a cash settlement of $700 million to Cablevision and AMC Networks. In addition, DISH has entered into a long-term distribution agreement with AMC to carry AMC, IFC, Sundance Channel, and WE tv. Following the settlement, DISH added 3.3%, AMC Networks gained 3.9%, and Cablevision tacked on 0.3%.  There is no economic data scheduled for tomorrow's release. ..NYSE Adv/Dec 1442/1535. ..NASDAQ Adv/Dec 1221/1234.

After Hours

16:40 ET WDC +3.1%, YHOO +2.9%, VECO -6.4%, TXN -0.7% following earnings/guidance :

Stocks got off to a quiet start as mixed quarterly reports continued to pour in. Indecision was apparent in the early going as the major averages traded near their respective unchanged levels. As the day progressed, the S&P 500 and Dow headed lower. However, the final hour brought out bargain-hunters who lifted the major averages near their respective session highs. As a result, the S&P 500 ended unchanged. Meanwhile, the Nasdaq outperformed and settled higher by 0.4%.

Today after the close the following companies are scheduled to report earnings: ELS, YHOO, HUBG, SWFT, BBCN, CAP, CE, CR, CTGX, FNB, HLX, HMA, HSTM, HXL, IEX, MUSA, RCII, SFG, TXN, UCTT, USTR, VLTR, WCN, WIBC, ZION, ACC, SUPX, WRB, CNI, RUSHA, WDC, VECO, TUES

Futures are higher after hours: S&P 500 futures are +2.87 from fair value of 1429.13 and Nasdaq100 futures are +3.55 from fair value of 2688.45.

Tomorrow morning before the open no economic reports are scheduled to be released.

Tomorrow before the open the following companies are scheduled to report earnings: JAKK, ALV, XRX, BEAV, SAH, STBA, ABG, AKS, AME, AXE, CNC, CPLA, CSL, CYNO, DD, FMER, GNTX, ITW, LRY, LXK, R, RAI, RF, SBNY, SIAL, SNV, UPS, VMED, WAB, WAT, WHR, ARG, ARMH, MWV, RSH, ST, MMM, NMM, PLD, UTX, WDR, CIT, COH, CRS, HOG, IIVI, MOLX, AIT, OSIS, TECH, TWIN

Commodities

Not much movements in the commodities at 1230SG Time..

Treasuries

There were a little down in the treasuries yesterday, the yields gotten higher...

There's not much data coming out for 23 Oct, except Canada is coming out with their central bank information. Taking into consideration that major reports are coming out on Wednesday, I reckon the market to be flat for 23 Oct as well.

Market Call:FLAT to downside

Date: 23 Oct 2012