10 Jan 2012 AMC

10 Jan 2013

Market Summary 

Market Internals

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Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:15 ET Dow +80.71 at 13471.22, Nasdaq +15.95 at 3121.76, S&P +11.10 at 1472.12 : [BRIEFING.COM] Equities began today's session on a positive note after China's trade surplus expanded to $31.6 billion due to strong export growth. The upbeat open was followed by a late-morning stumble, but the S&P 500 showed resilience and climbed to fresh highs. The benchmark index ended with a gain of 0.8%.  The financial sector paced the advance, and the SPDR Financial Select Sector ETF(XLF 17.15, +0.21) settled higher by 1.3%. The financial sector proxy ETF ended at a fresh 52-week high with most majors scheduled to announce their fourth quarter earnings next week. Tomorrow morning, Wells Fargo (WFC 35.40, +0.69) will be the first notable sector component to report. The Capital IQ consensus expects the bank to reveal earnings of $0.89 on $21.26 billion in revenue. An in-line report would indicate healthy year-over-year bottom line growth of nearly 22.0%. Looking at other majors, Bank of America (BAC 11.78, +0.35) gained 3.1% and Morgan Stanley (MS 20.34, +0.72) advanced 3.7%.  The technology sector spent the majority of the session in the red, but late-day strength in the shares of Apple (AAPL 523.51, +6.41) saw the stock rise by nearly $10, and pushed the tech sector higher. The notable bid followed comments from Apple's chief of marketing who said the company "is not interested" in making cheap, low-profit products. The largest tech company was in the news earlier this morning when Reuters reported Chief Executive Officer Tim Cook met with the chairman of China Mobile (CHL 58.75, +1.45) to talk about "matters of cooperation." China Mobile, which has over 700 million subscribers, does not currently offer Apple products on its network.  Among names reacting to analyst comments, Microsoft (MSFT 26.46, -0.24) shed 0.9% after Morgan Stanley downgraded the stock to ‘Equal-Weight' from ‘Overweight.'  Teen retailers lagged the broader market after Aeropostale (ARO 13.24, -0.13) issued downside earnings guidance due to disappointing holiday sales. Aeropostale shed 0.9% and peer American Eagle Outfitters (AEO 19.94, -0.69) settled lower by 3.3%.  Elsewhere, Tiffany (TIF 60.40, -2.86) slumped 4.5% after the jewelry retailer said it expects its fourth quarter earnings to be near the low end of its prior guidance range. Peers Blue Nile (NILE 36.58, -0.57) and Coach (COH 57.49, -0.47) both lost near 1.0%.  The latest weekly initial jobless claims count totaled 371,000, which was worse than the 364,000 that had been expected by the Briefing.com consensus. The tally was above the revised prior week count of 367,000. As for continuing claims, they fell to 3.109 million from 3.236 million.  In tomorrow's economic data, November trade balance, export prices ex-agriculture, and import prices ex-oil will all be reported at 8:30 ET. Lastly, the U.S. Treasury will release its December budget at 14:00 ET. ..NYSE Adv/Dec 1938/1046. ..NASDAQ Adv/Dec 1443/1036.

After Hours

17:20 ET KBR -7.8%, XRTX -4.5%, TLYS -2.3%, AXP -0.7% following earnings/guidance :

Equities began today's session on a positive note after China's trade surplus expanded to $31.6 billion due to strong export growth. The upbeat open was followed by a late-morning stumble, but the S&P 500 showed resilience and climbed to fresh highs. The benchmark index ended with a gain of 0.8%.

Today after the close the following companies are scheduled to report earnings: SNX, XRTX

Futures are higher after hours: S&P 500 futures are +3.22 from fair value of 1466.78 and Nasdaq100 futures are +3.38 from fair value of 2738.37.

Tomorrow morning before the open three economic reports are scheduled to be released: 1) Trade Balance (Consensus -41.8B), 2) Export Prices ex-ag., and 3) Import Prices ex-oil.

Tomorrow before the open the following companies are scheduled to report earnings: WFC

Commodities

Treasuries

Next Day In View 




Jason's Commentaries

Totally did not expect the China's export data to affect the market so much. Was expecting a flat to upside day but it turn out to be quite bullish. Having the financials leading the day certainly a bullish sign. The first notable financial sector component, WFC is announcing its earnings before the market open today, which will likely to set the tone for the financials. Financials like JPM and BAC each gained a good 3% yesterday, might be pricing in for WFC's earnings. With the internals all pointing bullish, i would say the market will likely to carry its bullish momentum today. However if WFC's earning suck, we're likely to see a down Friday. 

As for the China's export data, it's a seasonal trend to see export numbers to be high in January. One simple reason, to get all exports out before CNY. China has a tradition to celebrate their CNY for one month. So you can expect most business to go on a low tone in Feb. No doubt China is increasing its export and production. If the global economy is increasing its demand, China is likely to produce more. The US, Japan, Germany and France the largest economies in the world are currently spending like mad, creating the demand. We're likely to see the trend to continue. The only place that has its spending reduced are countries like Spain, Portugal and Greece. Countries that has its unemployment more than 10%. 

Nonetheless, the Eurozone will definitely drag the economy back to a significant extent. In the case, this will reiterate my analysis on the market going very volatile in 2013. 

  

Market Call: UP

Date: 11 Jan 2013