14 Jan 2013 AMC

14 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 +18.89 at 13507.32, Nasdaq -8.13 at 3117.5, S&P -1.37 at 1470.68 :[BRIEFING.COM] Today's session began on a lower note after pre-market weakness in Apple (AAPL 501.75, -18.55) weighed on the tech-heavy Nasdaq. Meanwhile, the S&P 500 marked its session low in the 1465 area an hour into the session. The benchmark index then reversed and spent the remainder of the session climbing back near its flat line before finishing with a slim loss.  Apple lost 3.6% after being down as much as 4.5% during pre-market trade. The underperformance followed reports from the Nikkei and the Wall Street Journal, which indicated the largest tech company has cut its orders for iPhone 5 parts due to sluggish demand. The early selling pushed the stock below $500 for the first time in eleven months. A handful of Apple suppliers were also pressured by the news as Qualcomm(QCOM 64.24, -0.66) and Cirrus Logic (CRUS 28.62, -2.96) lost 1.0% and 9.4% respectively. Note that several analysts have come out in defense of Apple saying the story is not a recent development.  Among other smartphone manufacturers, Research In Motion (RIMM 14.95, +1.39) remained in the spotlight. On Friday, the stock surged over 15.0% after photos of the new Blackberry 10 handset became available on the internet. Today, Research In Motion settled higher by 10.3%, which puts it 27.0% above Friday's opening price.  Telecom stocks lagged the broader market after morning reports hinted at slowing Apple iPhone demand. The three major carriers which offer the device on their networks traded lower in response to the developments. AT&T (T 34.02, -0.25), Sprint Nextel (S 5.69, -0.23), and Verizon Communications (VZ 42.59, -0.71) saw respective losses of 0.7%, 3.9%, and 1.6%. Note that UBS downgraded Sprint and Verizon to ‘Neutral.' In addition, JPMorgan Chase also downgraded Sprint to ‘Neutral' from ‘Overweight.'  Dell (DELL 12.29, +1.41) was on the move today after Bloomberg TV reported the PC maker is in talks with private equity regarding a potential buyout. Dell surged 13.0% on the news, and several related names moved higher as well. Hewlett-Packard (HPQ 16.95, +0.79) and Seagate (STX 33.97, +0.68) saw respective gains of 4.9% and 2.0%.  Discretionary stocks showed relative weakness in early trade, but the sector settled with slim gains. Amazon.com (AMZN 272.73, +4.79) was a notable advancer as the online retailer hit a fresh all-time high of $274.26.  Harry Winston Diamond (HWD 15.08, +0.62) rose by 4.3% after the company agreed to sell its luxury brand diamond jewelry and timepiece division to the Swatch Group for $750 million. In addition, Swatch will assume up to $250 million of pro-forma net debt.  V.F. Corporation (VFC 153.88, +4.88) advanced 3.3% after the company confirmed it has submitted a bid to acquire Billabong International for AUD1.10 per share.  Financials underperformed and the SPDR Financial Select Sector ETF (XLF 17.06, -0.05) slipped 0.3%. The financial sector saw notable gains in recent weeks, but last Friday's earnings report from Wells Fargo (WFC 34.77, -0.33) failed to please investors. Though the bank exceeded analyst expectations on the top and the bottom line, a decrease in net interest margins and mortgage originations weighed. Today, the space traded lower with most majors scheduled to reveal their fourth quarter results this week. Looking at individual components, Bank of America (BAC 11.47, -0.16) and JPMorgan Chase (JPM 45.88, -0.26) lost 1.4% and 0.6% respectively.  Looking at tomorrow's economic data, December retail sales, retail sales ex-auto, PPI, core PPI, and the January Empire Manufacturing Index will all be reported at 8:30 ET. Lastly, November business inventories will be released at 10:00 ET. ..NYSE Adv/Dec 1490/1497. ..NASDAQ Adv/Dec 1153/1292.

After Hours

17:51 ET RSYS +12.1%, GCOM +7.7%, MFLX -10.8%, COOL -31.2% following earnings/guidance :

Today's session began on a lower note after pre-market weakness in Apple (AAPL 501.75, -18.55) weighed on the tech-heavy Nasdaq. Meanwhile, the S&P 500 marked its session low in the 1465 area an hour into the session. The benchmark index then reversed and spent the remainder of the session climbing back near its flat line before finishing with a slim loss.

Today after the close the following companies reported earnings: COOL

Futures are mixed after hours: S&P 500 futures are -0.68 from fair value of 1465.48 and Nasdaq100 futures are +1.18 from fair value of 2729.82.

Tomorrow morning before the open three economic reports are scheduled to be released: 1) Retail Sales (Consensus 0.2%) and Retail Sales ex-auto (Consensus 0.3%), 2) PPI (Consensus 0.0%) and Core PPI (Consensus 0.2%), and 3) Empire Manufacturing (Consensus 2.0).

Tomorrow before the open the following companies are scheduled to report earnings: CBSH, FRX, LEN

Commodities

Treasuries

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Jason's Commentaries




Kinda expected it... but i wasn't entirely right on this. One of the major unexpected news was Obama's sudden press conference to exert his political pressure of the Republicans that he does not want to talk about raising the debt ceiling unless there are substantial spending cuts, while Fed Chairman Ben Bernanke caution that it's essential to raise the debt ceiling to meet it's spending obligation. That's just politics... the US has to raise the debt ceiling once more. 

Also, Apple sunk a 3.5% yesterday amid of slashing it's order for iphone screen as demand was not perceived as high. However, I believe that Apple still has value to be invested in... Just waiting for the right time... And while Apple is facing its challenges, another Tech company, Dell, soared more than 13% yesterday. Dell was talking to a private equity firm on a potential buyout. Taking a company that has a $21B market cap off the board is not gonna be easy.... 
While on the financials, Wells Fargo's earnings were normal, not impressive, failed to lift the sentiment of the financials up on Monday. 

While Monday is a flat day, I'm definitely expecting the market to retrace before even thinking of going bull on it. All the internals were all pointing in different direction and there's tonnes of divergence. I reckon the market is looking for some sort of leadership to give them a clearer direction. Approx one week into the earning season but not much movement in the market. Feel weird about this man..   

Market Call: DOWN

Date: 15 Jan 2013