10 Dec 2012

10 Dec 2012

Market Summary 

In other News...

Italy's Prime Minister Mario Monti will resign upon successful passage of country's budget.

Lockheed Martin Corp., Mission Systems and Sensors, Manassas, Va., is being awarded a $121,420,517 modification on previously awarded contract (N00024-11-C-6294) to exercise options for fiscal 2013 Acoustic Rapid Commercial-Off-The-Shelf Insertion (A-RCI) production.  The contract provides funding for the development and production of the A-RCI and common acoustics processing for Technology Insertion 12 (TI12) through Technology Insertion 14 (TI14) for the United States submarine fleet and for foreign military sales.  A-RCI is a sonar system that integrates and improves towed array, hull array, sphere array, and other ship sensor processing, through rapid insertion of Commercial-Off-The-Shelf based hardware and software.  Work will be performed in Manassas, Va. (60 percent) and Clearwater, Fla. (40 percent), and is expected to be completed by December 2013.  Contract funds will not expire at the end of the current fiscal year.  Contract funds in the amount of 4,555,520 will be obligated at time of award.  The Naval Sea Systems Command, Washington Navy Yard, Washington, D.C., is the contracting activity.

Market Internals

Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:10 ET Dow +14.75 at 13169.88, Nasdaq +8.92 at 2986.96, S&P +0.48 at 1418.55 :[BRIEFING.COM] Equities were little changed during today's session. With no economic data to digest, investors expressed caution after Italy's Prime Minister Mario Monti announced plans to submit his resignation upon the successful approval of the country's budget. However, afternoon reports from the Financial Times indicated Italy's centrist parties are urging Mr. Monti to run on their ticket in next year's election. Domestically, trade was confined to a narrow range and volume was well below-average. As a result, the S&P 500 finished flat.  The technology sector outperformed the broader market despite relative weakness in Apple (AAPL 529.82, -3.42). The largest tech component was down near 2.0% during the opening minutes, but reclaimed a portion of its losses and settled lower by 0.6%.  Seagate (STX 28.91, +0.57) and Western Digital (WDC 38.45, +0.85) saw respective gains of 2.0% and 2.3%. The two hard drive makers were on the rise once again after both gained more than 10.0% last week.  Computer assembler Hewlett-Packard (HPQ 14.16, +0.35) rose by 2.6% following earlier rumors which suggested activist investor Carl Icahn was building a stake in the company.  In M&A news, Intermec (IN 9.82, +1.84) surged 23.1% after being acquired byHoneywell (HON 61.86, -0.11) for $10 per share. The transaction price represents a 27.7% premium to Intermec's Friday closing price.  Consumer discretionary stocks underperformed the broader market despite the strength in shares of McDonald's (MCD 89.41, +0.93). The fast food giant gained 1.1% after reporting a 2.4% increase in global comparable store sales.  Elsewhere in the discretionary space, Priceline (PCLN 625.96, -33.14) slid 5.0% after Deutsche Bank downgraded the stock to ‘Hold' from ‘Buy.' Peer Expedia (EXPE 57.71, -2.17) shed 3.6% after the company announced a special dividend of $0.52 per share.  Gap (GPS 30.89, -0.92) lost 2.9% after Wedbush observed increased promotional activity at Old Navy. An increase in the number of promotions run by the company was viewed as a warning regarding the company's sales. The cautious sentiment was reflected in shares of other apparel retailers as Aeropostale (ARO 13.40, -0.36), Under Armour (UA 50.13, -2.03), and Urban Outfitters (URBN 37.00, -0.37) all lost between 1.0% and 4.0%.  On the upside, Abercrombie & Fitch (ANF 47.31, +0.92) advanced 2.0% after Robert W. Baird upgraded the stock to ‘Outperform' from ‘Neutral.'  The Dow Jones Transportation Average settled higher by 1.1% and all 20 components advanced. Trucking stocks saw relative strength as CH Robinson (CHRW 61.94, +1.34) finished higher by 2.2%. Meanwhile, Con-way (CNW 28.22, +0.64) added 2.3%.  Elsewhere, package delivery services advanced as the group is expected to benefit from increased package volumes during the holiday season. Expeditors International ofWashington (EXPD 38.22, +0.64), FedEx (FDX 90.53, +1.17), and UPS (UPS 73.68, +0.51) all gained between 0.7% and 2.5%. Last week, FedEx said it expects a record 19 million packages to move through its network today.  Tomorrow's economic data will be limited to the October trade balance and wholesale inventories. The two data points are scheduled to be released at 8:30 ET and 10:00 ET, respectively.  The U.S. Treasury will auction off $32 billion in 3-yr notes. ..NYSE Adv/Dec 1666/1345. ..NASDAQ Adv/Dec 1417/1052.

Commodities

Treasuries

Next Day In View 




Jason's Commentaries

Decided to write the DMA right after market close since I can't get to sleep. The day came as a total surprise to see the market going up and maintaining it's gains. It's been some time since we see a Up Friday and Up Monday and that is certainly pointing to some bullishness in the Market. However, we will be have the FOMC statement and Fed Fund Rate on Wednesday and I secretly pray that that won't tank the market. I still want my Santa Claus Rally to continue... 

The DOW was led by a handful of stock on Monday... Namely HPQ -> 2.61%, MCD->1.05%, CSCO -> 2.35% and BA-> 1.19%. The only laggard is HD-> - 2.19%.   While the Consumer Discretionary was the biggest laggard of the day, having a -0.57% loss. 

The day was considered to be flat and was indecisive between the bulls and the bears. TRIN was up while the UVOL and ADVN outpaced their counterpart marginally.  

Looking at the Technical side.. We're going to the 5th Candle... the 5th candle reversal is a likely to happen.. Especially the SPX is still stuck at that resistance at 1420. I'm expecting AAPL's weakness to continue as people are cashing out on AAPL. AAPL has been a very big laggard for the entire market. When Jobs is still around, AAPL has NEVER missed it's earnings. And guess what after Jobs passed on... Tim Cook missed it's earnings. To make things worse, the fear of the fiscal cliff is making people feel like taking profit off the table before the capital gain taxes increases somemore. 

Sugar and Coffee fell 2% and 4% respectively and oil is likely to break it's support soon. 
Tuesday will have very little data coming, out, having only Trade Balance coming out at 830am ET. 
However, I would expect the market to move in a sideways and volatile fashion in response to the Fed's Statement on Wednesday. Especially we're at the 5th Candle, I reckon tomorrow will likely to be a down day.    

Market Call: DOWN

Date: 11 Dec 2012