31 Jan 2013 AMC

31 Jan 2013

Market Summary 

Market Internals

Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:15 ET Dow -49.84 at 13860.58, Nasdaq -0.18 at 3142.13, S&P -3.85 at 1498.11 : [BRIEFING.COM] The major averages saw little change during the last session of the month. The S&P 500 shed 0.2%, while Nasdaq outperformed and ended flat. Mixed trade unfolded amid economic data which was largely in-line with expectations. Weekly initial claims were reported at 368,000 (Briefing.com consensus 345,000), which supports the notion that the lower readings over the prior two weeks were primarily the result of seasonal adjustment problems. Today's number drives initial claims right back to the 350,000-400,000 range where they have been bounded for most of the last year. Elsewhere, the personal income report stood out as the December increase of 2.6% was well ahead of the 0.7% rise expected by the Briefing.com consensus. However, the notable rise in personal income was due to a surge in personal income on assets as investors chose to lock in a lower capital gains tax rate ahead of the New Year. The fourth quarter Employment Cost Index increased by 0.5%, in-line with the Briefing.com consensus. The day's final economic report saw the January Chicago PMI climb to 55.6. The reading surprised to the upside as economists surveyed by Briefing.com had generally expected the index to come in at 50.5. In addition to economic data, investors received several notable earnings reports.Ryder System (R 56.78, +2.52), MasterCard (MA 518.40, +2.40), and Qualcomm(QCOM 66.02, +2.49) gained between 0.5% and 4.6% after beating on earnings. On the downside, ConocoPhillips (COP 58.00, -3.09), Dow Chemical (DOW 32.20, -2.41), and UPS (UPS 79.29, -1.94) fell short of expectations. With January now in the books, we would like to recap the first month of 2013. Month in Review: Equities Soar as Full Force of 'Fiscal Cliff' Averted Responding favorably to the Congressional compromise on tax rates, the S&P 500 jumped 2.8% in the first week of 2013 and rarely looked back. Despite some mixed economic and earnings news along the way, the S&P 500 closed with a gain in 13 out of 21 sessions and ended January at 1498.27 its best level since December 2007. The Dow Jones Industrial Average for its part surged 5.8% and recorded its best January since 1989. Economic Data Paints Bleak January Picture The bulk of economic data reported during the month beat the Briefing.com consensus. However, data reported for the month of January often came up short. Of the seven January reports, five fell short of expectations. The Empire Manufacturing Index, NAHB Housing Index, Philadelphia Fed Survey, Michigan Sentiment, and Consumer Confidence reports all missed expectations. Meanwhile, the ADP Employment Change and Chicago PMI surprised to the upside. The advance fourth quarter GDP reading was a headline disappointment, as a 0.1% contraction was recorded for the final quarter of 2012. However, the report was not as weak as it appeared. The biggest drag on quarterly growth came in the form of a 6.6% decrease in government spending. This was largely due to a 22.2% decline in defense spending which followed a 12.9% increase during the third quarter. The change in private inventories also subtracted 1.27 percentage points from the change in real GDP. Personal consumption expenditures, which constitute more than 70% of GDP, rose 2.2%, which was the largest increase since the first quarter of 2012. Business investment rose 12.4%, which was the largest uptick since the third quarter of 2011. Mixed Earnings Unable to Derail Rally The second half of the month saw the start of the fourth quarter earnings season. Most companies have beaten on the bottom line per usual, hurdling estimates that had been lowered in many cases by analysts ahead of the reports. Revenue growth is still weak, but similar to earnings, most companies have exceeded depressed top line growth estimates. Cautious guidance has been a common theme as many companies see headwinds in the first half of the year, although the default opinion is that the second half of the year should look better. Transports, Energy, Health Care, and Discretionary Stocks Paced the Gains The Dow Jones Transportation Average gained 9.4% as truckers and railroads joined the rally enjoyed by airlines since mid-November. Energy stocks also displayed relative strength and the SPDR Energy Select Sector ETF (XLE) advanced 8.3%. This was largely supported by a 6.2% rise in the price of crude oil. The energy component ended the month just a shade under $98. The Health Care sector has been a standout, trailing behind only energy in the sector rankings on a year-to-date basis (+7.4%). The discretionary sector has also been among the top performers in the S&P 500. Homebuilders continued their strength from 2012. The SPDR S&P Homebuilders ETF (XHB) ended January with a gain of 8.3%. Many builders reported strong fourth quarter earnings, replete with reports of strong backlogs and order trends. Technology Lagged as Apple Weighed The tech-heavy Nasdaq underperformed the remaining major indices as Apple(AAPL), which is the single largest index component, continued displaying weakness. Shares of Apple sold off through the first half of the month before pausing near the $500 level. A disappointing January 23 earnings report caused the stock to lose more than 10%. The company fell short of revenue expectations and issued downside guidance. The largest tech stock ended the month down 14.4%, at levels last seen in February 2002. Excluding Apple, the technology sector fared relatively well. Semiconductors outperformed despite a rash of disappointing earnings reports and outlooks. The PHLX Semiconductor Index climbed 7.7%. Defensive Stocks Bid into Second Half During the second half of the month, defensive-oriented sectors started to attract increased buying interest. Telecoms (+1.8%) and utilities (+4.5%) registered the bulk of their gains during the second half of the month after the broader market had already seen the majority of its rise. Health care stocks enjoyed strength throughout the month as upbeat earnings supported the space. Headwinds Remain as S&P 500 Nears Uncharted Territory As the S&P 500 hovers just 4.3% below its all-time high, challenges remain visible. A notable drop in consumer confidence occurred as the initial impact of the payroll tax cut expiration was felt by income earners. Sequester cuts are scheduled to go into effect in March, with the brunt of the impact to be absorbed by the defense sector. The debt ceiling issue has only been deferred rather than fixed. Japan's bold bid to weaken its currency and to inflate its economy is raising the risk of currency wars as other countries aim to support their exporters. Geopolitical issues are simmering, with conflicts in the Middle East starting to make headline waves (eg. Egypt, Israel/Syria/Iran) and North Korea toying with nuclear tests. Rising interest rates threaten to slow the housing recovery. Bullish sentiment, which is a contrarian indicator, is picking up noticeably. ..NYSE Adv/Dec 1557/1421. ..NASDAQ Adv/Dec 1525/946.

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Jason's Commentaries

It was more of a flat day than a down day yesterday. Unemployment claims came in slightly under expectation which caused a slight drag on the market yesterday. Nasdaq was up because there was slight bounce in Apple's shares. Overall, it more like a down day. Furthermore, most of the sectors were down except for Tech and Utilities. However, looking at the internals, over 900 mil shares traded over in the NYSE yesterday, with the bulls and bears equal in strength, I reckon the deciding factor will be the non-farm payrolls tonight. The ISM report will like have little effect on the market. Since the GDP report shows contraction in the economy, it was largely due to the decrease in government spendings. As for the public spending, it has actually increased. Therefore the economy is likely to be on a recovery phase. The FOMC statements states that asset purchase program will continue at $85B a month until further notice. If anything in all, January has been a bullish month and based on the January Barometer, we're likely to end higher 2013.

Looking at the technicals, we're currently at the 3rd candle reversal and we might just consolidate for the rest of Feb in a sideways and volatile fashion. With Gold and Silver plummet yesterday and Curde Oil holding its high at $97 range, we're likely to see $100 soon. 

Market Call: FLAT to downside

Date: 1 Feb 2013

30 Jan 2013 AMC

30 Jan 2013

Market Summary 

Market Internals

Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:30 ET Dow -44.00 at 13910.42, Nasdaq -11.35 at 3142.31, S&P -5.88 at 1501.96 :[BRIEFING.COM] Equities began the day on a mixed note, but the slightly bearish bias which persisted throughout the day caused the major averages to end near their lows. The S&P 500 slipped 0.4%, and was the weakest performing index.  Shortly before the open, the Bureau of Economic Analysis said fourth quarter GDP contracted by 0.1%. This fell short of the 1.0% growth forecast by the Briefing.com consensus. While the number was a disappointment on the surface, a 22.2% decline in government defense spending contributed to the miss. Meanwhile, personal consumption expenditures, which account for more than 70% of GDP, rose 2.2%. This was the largest quarterly uptick since a 2.4% increase in consumption was reported during the first quarter of 2012. Additionally, the rise in spending was slightly above its eight-month average rate of change.  Morning trade proved to be largely uneventful as investors anticipated the afternoon policy statement from the Federal Open Market Committee. The pronouncements on the economy, inflation, and inflation expectations were little changed. It was said that growth in economic activity "has paused in recent months," but there didn't appear to be any undue concern about an extended downturn as the "pause" was attributed largely to weather and other transitory factors. The asset purchase program is expected to remain in place until unemployment slips below 6.5% or inflation projections take a turn for the worse.  While the FOMC statement and the GDP reading were in focus today, the market also received earnings from two notable names.  Amazon.com (AMZN 272.76, +12.41) jumped 4.8% after the online merchant reported its operating income well ahead of analyst expectations. The strength in Amazon helped the Nasdaq outperform for the bulk of the day, but the index succumbed to broader market weakness in afternoon trade.  Also of note, Boeing (BA 74.59, +0.94) gained 1.3% after its top and bottom lines came in ahead of the Capital IQ consensus estimates. However, the defense contractor guided its full-year 2013 earnings and revenue below consensus.  Though Boeing outperformed, the industrial space lost 0.9%, and was the worst performing S&P 500 sector.  Elsewhere, the Dow Jones Transportation Average lost 1.5%, and was a notable laggard. The bellwether sector lagged considerably as 17 of its 20 components settled with losses. The four railroads which comprise the transportation average were all down in excess of 1.0% with Union Pacific (UNP 131.17, -3.59) sagging 2.7%.  In addition, trucking stocks were broadly weaker. Con-way (CNW 31.56, -1.06) fell 3.3% while CH Robinson (CHRW 67.14, -0.78), JB Hunt (JBHT 67.19, -0.90), and Landstar(LSTR 58.36, -0.85) lost near 1.5% each. Note that today's underperformance from transportation stocks came after the average rallied more than 8.0% since the start of 2013.  As mentioned earlier, the S&P 500 was pressured by industrials (-0.9%). In addition, energy (-0.7%), materials (-0.6%), and financials (-0.5%) weighed. On the upside, utilities (UNCH) outperformed, and the sector was followed by discretionary (-0.2%) and consumer staples (-0.2%).  The CBOE Volatility Index (VIX 14.27, +0.96) added more than 7.0%, and settled at its highest level since January 7. Looking at the term structure of VIX futures, the front-month contracts received the most notable interest during today's session. In addition, October VIX futures have crept up to 20.00.  Today's floor volume at the New York Stock Exchange was in-line with its 50-day average as just over 700 million shares changed hands.  Looking back at the day's economic data, the weekly MBA Mortgage Index declined by 8.1% to follow last week's uptick of 7.0%.  According to today's ADP National Employment Report, employment in the nonfarm private business sector rose by 192K in January. This was above the 175K increase expected by the Briefing.com consensus. The prior month's reading was revised down to 185K from 215K.  Tomorrow, investors will receive a full slate of economic releases. At 7:30 ET, January Challenger Job Cuts will be announced. At 8:30, weekly initial and continuing claims, December personal income, personal spending, core PCE prices, and fourth quarter employment cost index will all be reported. Finally, the January Chicago PMI will cross the wires at 9:45 ET. In earnings of note, Dow Chemical (DOW 34.61, -0.12) and UPS(UPS 81.23, -0.98) will announce their quarterly results ahead of the open. ..NYSE Adv/Dec 990/1969. ..NASDAQ Adv/Dec 755/1722.

After Hours

17:52 ET FTNT +17.2%, SWKS +13.2%, JDSU +12.7%, FIO -16.1%, CNQR -5.5%, FB -2.9% following earnings/guidance :

Equities began the day on a mixed note, but the slightly bearish bias which persisted throughout the day caused the major averages to end near their lows. The S&P 500 slipped 0.4%, and was the weakest performing index.

Other notable after hours movers on earnings: FTNT +17.2%, SWKS +13.2%, JDSU +12.7%, CTXS +11.7%, ALGN +9.5%, NOW +7.0%, QCOM +6.5%, HMPR +6.0%, TSCO +5.9%, LVS +5.4%, AFOP +3.4%, OI +3.3%, FICO +1.8%, KNX +1.6%, QTM +1.5%, AMP +1.2%, COHU +1.1%, FIO -16.1%, AVNW -6.7%, CNQR -5.5%, FB -2.9%, CDNS -2.8%, MUR -2.5%, EA -1.9%, EXXI -0.9%, CMO -0.4%

Today after the close the following companies reported earnings: FTNT, ALGN, CCK, CLB, FB, STM, ALGT, AMP, AVB, BRKL, CDNS, CMO, COHU, CTXS, FIO, ISIL, KEX, KNX, MKSI, NOW, NXPI, OI, QTM, SLG, TSCO, ACXM, AMCC, COP, ELY, KRC, CBT, CVTI, EA, JDSU, SHOR, TGI, VHS, CACI, DRE, EDMC, EXTR, MUR, AVNW, FICO, ISSI, LVS, MX, SWKS, VRTU, DOX, SGI, SRDX, CNQR, QCOM, REG, TTEK, ATW

Futures are mixed after hours: S&P 500 futures are -3.39 from fair value of 1497.29 and Nasdaq100 futures are +2.44 from fair value of 2732.56.

Tomorrow morning before the open six economic reports are scheduled to be released: 1) Challenger Job Cuts, 2) Initial Claims (Consensus 345k) and Continuing Claims (Consensus 3200k), 3) Personal Income (Consensus 0.7%), 4) Personal Spending (Consensus 0.3%), 5) PCE Prices - Core (Consensus 0.1%), and 6) Employment Cost Index (Consensus 0.5%).

Tomorrow before the open the following companies are scheduled to report earnings: ADS, BX, PENN, UTEK, WCC, BEAV, AIT, ALV, CRS, DOW, R, UPS, WHR, ENTG, NDAQ, TMO, AET, AN, AZN, BLL, BMS, CL, CNX, CRR, D, DNKN, ERIC, FLWS, HHS, HSY, LANC, LSTR, MJN, MO, MTH, OXY, PCAR, PHM, POT, RGS, RTIX, SHW, TEN, UA, XEL, ZMH, USAK, DB, CAM, CNH, COCO, DST, MA, NVO, ALKS, EPD, HSH, ITG, IVZ, KEM, MD, MDC, PBI, RGLD, HAR, HGG, RDEN, TWC, EXXI, KELYA, APU, ENR, UGI, DEST, HP, VIAB, LQDT

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Jason's Commentaries

Last night was a very volatile night with 2 major report coming out. First up was the GDP report which shows a contraction in the economy for the Q4. Following was the FOMC statement. 

The following is an extract of the FOMC statement. 

The Federal Reserve on Wednesday maintained its aggressive easing policy stance in light of downside risks to the outlook. In a statement after a two-day meeting, the Fed said it will keep buying $85 billion a month in mortgage bonds and Treasurys. The Fed said that economic activity has "paused in recent months" due to weather and other transitory factors. The Fed did not say how long the bond purchases would last. The vote was 11 to 1. Kansas City Fed president Esther George dissented, saying the Fed's loose policy stance could lead to financial imbalances and higher inflation. 


Right after the release of the report, the market went into a crazy gyration which got the market to close the 2nd day in a row. While looking at the internals, it's was quite a flat to bear day, which i believe will cause the market to go sideways today in anticipation of the Non-farm Payrolls on Friday.On the sectors, the industrials were being led down by the defense sector. Although BA announced  some decent earnings, it was unable to lead industrials up. The only sector was up marginally was the Utilities.

Yesterday, both Gold and Silver rallied after the GDP report. Which I profit taken on Gold. While oil is maintaining it's trading range of $97-$98. Right now oil is on a seasonal run and i'm expecting oil to hit $100 soon..

On the technical note, we're likely to face a flat day today considering NFP is coming out on Friday. 
 

 

Market Call: FLAT to downside

Date: 31 Jan 2013

29 Jan 2013 AMC

29 Jan 2013

Market Summary 

Market Internals

Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:30 ET Dow +72.49 at 13954.42, Nasdaq -0.64 at 3153.66, S&P +7.66 at 1507.84 :[BRIEFING.COM] Equities finished today's session on a mixed note. The Dow and S&P 500 gained 0.5% each, while the Nasdaq underperformed, and ended flat. However, looking below the surface revealed the sector rotation which took place today.  The energy space paced today's advance thanks in part to strong earnings from Valero(VLO 43.77, +4.96). In addition, the 1.1% advance in crude oil also contributed to the sector's strength.  After energy, health care, telecoms, and utilities were among the day's top performers as investors rotated into defensive-oriented stocks. In the health care space, Eli Lilly (LLY 54.32, +1.68) and Pfizer (PFE 27.70, +0.86) both gained 3.2% after reporting upbeat earnings.  Today's performance of telecoms expands on the theme of sector rotation. AT&T (T 34.68, +0.55), Sprint Nextel (S 5.64, +0.08), and Verizon Communications (VZ 43.50, +0.73) all gained near 1.5%.  While defensive sectors led the way, the discretionary space underperformed as theSPDR Consumer Discretionary Select Sector ETF (XLY 50.46, -0.20) slipped 0.4%.Ford Motor (F 13.14, -0.64) was a notable laggard after the carmaker shed 4.6% despite an earnings beat. While the company expressed concerns about its European sales, the remarks were in-line with comments made during past earnings calls.  The discretionary sector avoided wider losses thanks to the relative strength observed in homebuilders. This morning, DR Horton (DHI 23.82, +2.51) beat on both earnings and revenue. The strong report was welcomed by investors and shares of DR Horton spiked 11.8%. Meanwhile, the broader SPDR S&P Homebuilders ETF (XHB 29.10, +0.29) gained 1.0%.  Although the technology sector ended with gains, its true performance was masked by the relative strength of Apple (AAPL 458.27, +8.44), which gained 1.9% after announcing a 128GB version of its fourth generation iPad device.  Tech stocks saw broad weakness and VMware (VMW 77.14, -21.18) was a notable laggard. The company, which specializes in technology infrastructure, plunged 21.5% after issuing cautious guidance. In addition, VMware announced plans to cut about 7.0% of its workforce.  Elsewhere in tech earnings, Seagate (STX 33.91, -3.50) fell 9.4% after it too issued guidance which disappointed investors. Note that today's selling came after Seagate rallied nearly 50.0% in the eight weeks leading into yesterday's report.  Volume was slightly above its 50-day average as more than 700 million shares changed hands on the floor of the New York Stock Exchange.  The CBOE Volatility Index (VIX 13.33, -0.24) ended lower by 1.8% after the past two session saw the near-term volatility measure settle in the black.  The market received just two economic data points today. The November Case-Shiller 20-city Home Price Index rose by 5.5%, while a 5.2% increase had been expected by the Briefing.com consensus. This follows the previous month's increase of 4.3%.  Meanwhile, the January consumer confidence reading of 58.6 fell short of the 65.1 expected by the Briefing.com consensus. Though equities slipped immediately after the report hit the wires, the weakness proved to be short-lived.  Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET. At 8:15 ET, the January ADP Employment Change will be reported. Fourth quarter advanced GDP growth will hit the wires at 8:30 ET, and the Federal Reserve will top off the busy day of economic releases with its rate decision and policy statement scheduled for 14:15 ET. Among earnings of note, Boeing (BA 73.65, -0.35) will announce its quarterly results prior to the open. ..NYSE Adv/Dec 1746/1249. ..NASDAQ Adv/Dec 1345/1102.

After Hours

16:55 ET UIS +9.7%, AMZN +9.5%, DLB +4.7%, KTCC -16.9%, CODE -8.5% following earnings/guidance :

Equities finished today's session on a mixed note. The Dow and S&P 500 gained 0.5% each, while the Nasdaq underperformed, and ended flat. However, looking below the surface revealed the sector rotation which took place today.

Other notable after hours movers on earnings: UIS +9.7%, AMZN +9.5%, DLB +4.7%, PRXL +4.3%, RYL +3.1%, PLT +2.8%, MANH +2.4%, HTCH +2.2%, KEYN +0.6%, KTCC -16.9%, CODE -8.5%, HA -7.3%, WBSN -7.0%, ACE -4.6%, WAIR -3.9%, AZPN -3.3%,VRTX -2.1%, BRCM -0.9%

Today after the close the following companies reported earnings: MANH, RHI, HUBG, SFG, ACE, BKI, BRCM, BXP, HA, HLIT, MRCY, UIS, WBSN, MBFI, MERU, POL, RYL, SLGN, AMZN, CODE, FFBC, FSL, IXYS, JLL, AJG, BBOX, CSE, KEYN, PLT, PRXL, PSEM, QNST, IVAC, AZPN, VRTX, QGEN, DLB, HTCH, MTSI, WAIR

Futures are higher after hours: S&P 500 futures are +1.50 from fair value of 1502.90 and Nasdaq100 futures are +7.20 from fair value of 2737.55.

Tomorrow morning before the open four economic reports are scheduled to be released: 1) MBA Mortgage Index, 2) ADP Employment Change (Consensus 175k), 3) GDP-Adv. (Consensus 1.0%), and 4) Chain Deflator-Adv. (Consensus 1.6%).

Tomorrow before the open the following companies are scheduled to report earnings: PJC, MAN, BOH, MWV, ST, AVY, BA, CFR, DHX, FCF, HCBK, NOC, NYCB, SEIC, SLAB, EVR, VLY, WRLD, TCB, CVLT, HAE, BAH, OIIM, PSX, WEC, ABFS, CEVA, LLL, MPC, SAIA, HES, MKTX, AUDC, DSPG, HNT, ROK, SO, MTOR, ADT, GIB, CBF

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Jason's Commentaries

Both DOW and SPX ended up but Nasdaq decided to end lower yesterday. Looking at the internals, I was right on this. Although Dow and SPX moves more than I expected. The market is currently bullish and is not looking to profit take till the end of Jan. Seems that we got only 2 days to the end of Jan, the chances of having a down Jan is very low now. 

Bonds are starting to sell of and the 30y are coming back to above 3.2% and the 10y is now back above 2%. It seems that the risk market right now is favoring the equities market and money is flowing back. While looking at technicals... it has been rallying like no ones' business for the past 2 weeks. Average volumes is up to 700mil shares traded on the NYSE which is getting more volumes back. 

Since we're having the ADP job report and the FOMC statement which is coming out at 2.15pm ET, the market will be in a crazy gyration. And I believe that today will likely to retrace a lot. 

Market Call: DOWN

Date: 29 Jan 2013

28 Jan 2013 AMC

28 Jan 2013

Market Summary 

Market Internals

Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:20 ET Dow -14.05 at 13881.93, Nasdaq +4.59 at 3154.3, S&P -2.78 at 1500.18 :[BRIEFING.COM] The major averages ended today's session largely where they began. The S&P 500 and Dow registered modest losses, while the Nasdaq added 0.2%, seeing relative outperformance from Apple (AAPL 449.83, +9.95). The largest tech stock ended higher by 2.3% after disappointing earnings caused it to lose nearly 13.0% last week. While Apple contributed to the relative strength of tech stocks, the remainder of the sector traded in mixed fashion. A notable sector component, Seagate (STX 37.41, +0.16), gained 0.4% ahead of its earnings report scheduled for an after-hours release. An upbeat report has been largely priced-in as Seagate has soared nearly 50.0% in the eight weeks leading into this evening's report. The Capital IQ consensus expects the hard drive manufacturer to report earnings of $1.27 on $3.57 billion in revenue. As tech stocks registered gains, the materials sector was the weakest performer. The observed weakness resulted from a Goldman Sachs downgrade of the U.S. steel sector. Following the downgrade, steel stocks saw broad selling and the Market Vectors Steel ETF (SLX 48.26, -0.70) shed 1.4%. While materials lagged notably, the discretionary sector also exerted some downside pressure on equity indices. One pocket of weakness was among homebuilders, which slipped to their respective lows after the December pending home sales report pointed to a 4.3% month-over-month decline. Among individual builders, PulteGroup(PHM 20.96, -0.71) lost 3.3% and Lennar (LEN 41.91, -1.16) shed 2.7%. Meanwhile, the broader SPDR S&P Homebuilders ETF (XHB 28.81, -0.30) slipped 1.0%. Elsewhere in the discretionary space, Jos. A. Bank (JOSB 39.28, -6.99) plunged 15.1% after the company said it expects its full-year 2012 net income to come in roughly 20.0% below its 2011 level. The cautious guidance spilled over to other apparel producers, which traded with a bearish bias. On the earnings front, the market received just one notable report ahead of today's open. Caterpillar (CAT 97.45, +1.87) ended higher by 2.0% after the industrial heavyweight reported mixed results. Though the company beat the Capital IQ earnings estimate, its bottom line suffered a year-over-year decline of 17.7%. Crude oil climbed steadily during afternoon trade and ended higher by 0.7%. The energy component settled at $96.51 after trading in a relatively narrow range. Although the key indices ending mixed, the CBOE Volatility Index (VIX 13.63, +0.74) added 5.7%. This move suggested that near-term downside protection continued receiving interest. Trading volume was below average as just under 650 million shares changed hands on the floor of the New York Stock Exchange. Looking at the S&P 500 sectors, technology (+0.3%) led the way while telecoms (+0.2%), and consumer staples (+0.1%) followed closely. On the downside, materials (-1.0%), consumer discretionary (-0.5%), and financials (-0.5%) lagged. Besides the previously mentioned December pending home sales report, the market received news of December durable goods orders. The Census Bureau reported that December durable goods orders rose by 4.6%. This was well ahead of the 1.6% increase which had been forecast by the Briefing.com consensus. As expected, aircraft orders were a primary factor for the surge in orders. Nondefense aircraft orders increased 10.1% while defense aircraft orders rose 56.4%. Excluding transportation related items, durable goods orders increased by 1.3%, which was better than the unchanged reading that had been broadly anticipated. The increase in ex-transportation orders was at odds with the contractions reported by many of the regional manufacturing surveys. Surprisingly, the gains in orders outside of transportation were due to strong demand for primary metals (3.6%) and fabricated metals (1.2%). This could suggest that manufacturers of finished goods are demanding more raw materials because they expect demand to rise in the near future. In tomorrow's economic data, the November Case-Shiller 20-city Index will be reported at 9:00 ET. In addition, January consumer confidence will cross the wires at 10:00 ET. In notable earnings, Ford Motor (F 13.78, +0.20) will report its fourth quarter results ahead of the open. The U.S. Treasury will auction off $35 billion in 5-yr notes. ..NYSE Adv/Dec 1294/1715. ..NASDAQ Adv/Dec 1404/1072.

After Hours

18:23 ET SWIR +8.1%, YHOO +1.9%, VMW -15.0%, STX -5.6% following earnings/guidance :

The major averages ended today's session largely where they began. The S&P 500 and Dow registered modest losses, while the Nasdaq added 0.2%, seeing relative outperformance from Apple (AAPL 449.83, +9.95). The largest tech stock ended higher by 2.3% after disappointing earnings caused it to lose nearly 13.0% last week.

Other notable after hours movers on earnings: SWIR +8.1%, PLXT +4.7%, MSPD +3.3%, PCL +3.0%, YHOO +1.9%, CR +1.8%, STLD +1.3%, CTS +1.3%, VMW -15.0%, SANM -8.1%, BMC -7.7%, STX -5.6%, EMC -4.8%, IRF -2.2%, DLA -2.1%, ILMN -1.2%

Today after the close the following companies reported earnings: STLD, WERN, BBCN, CE, CR, ELS, RCII, YHOO, ZION, CTS, ILMN, VMW, GGG, NEU, OLN, HTLF, IDTI, PLXT, SANM, BMC, STX, IRF, MSPD, JJSF, NBHC

Futures are mixed after hours: S&P 500 futures are +0.43 from fair value of 1495.17 and Nasdaq100 futures are -1.44 from fair value of 2736.19.

Tomorrow morning before the open one economic report is scheduled to be released: 1) Case-Shiller 20-city Index (Consensus 5.2%).

Tomorrow before the open the following companies are scheduled to report earnings: BSX, DHR, NUE, PII, IDXX, PHG, BTU, PCH, WRB, AKS, AXE, CIT, GNTX, HOG, ITW, LXK, STBA, CP, EMC, GLW, LLY, NEE, TROW, TUP, USAP, BKU, IP, JBLU, MNRO, UBSI, AHGP, ARLP, RDWR, EDU, HRS, ASH, F, GK, VLO, X, AMG, WDR, HZO, PFE, PNR, HW, KLIC, DHI, TYC

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Jason's Commentaries

Was right on a flat Monday.. Caterpillar was able to get good earnings yesterday and while Apple, got a bounce in the market after losing it's market cap title to Exxon. The durable goods orders before the market was showing good signs,but later when the pending home sales came at 11am ET, and came in lousy pending home sales, which got the market into a crazy gyration. That would have presented the scalpers an awesome day to scalp.

While looking at the internals, there were more bears in the market than bulls. And we might be looking at another flat to bear day today. While looking at the technical note, we're looking at some possible retracement this week. However, I'm expecting Tuesday to be flat as well, possibly some profit taking at the end of the day as FOMC statement and the ADP job report coming out on Wednesday and the Non-farm payrolls on Friday.

Market Call: FLAT to downside

Date: 28 Jan 2013