15 Jan 2013 AMC

15 Jan 2013

Market Summary 

Market Internals

.

Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:10 ET Dow +27.57 at 13534.89, Nasdaq -6.72 at 3110.78, S&P +1.66 at 1472.34 :[BRIEFING.COM] Equities began the day with a slightly bearish bias after Germany's 2012 GDP was reported below expectations. Though the news weighed at the open, the major averages showed resilience, and spent the remainder of the session climbing off their lows. As a result, the S&P 500 added 0.1% while the Nasdaq underperformed with a loss of 0.2%.  The tech-heavy Nasdaq was pressured by Apple (AAPL 485.92, -15.83), which fell 3.2%. In addition, Apple suppliers continued to show weakness. Broadcom (BRCM 34.19, -0.43) and Skyworks Solutions (SWKS 20.50, -0.51) saw respective losses of 1.2% and 2.4%. Today's selling followed yesterday's 3.6% drop in Apple resulting from reports which indicated the company has cut its orders for iPhone 5 parts.  Facebook (FB 30.10, -0.85) dropped to its session lows after today's highly-anticipated press event disappointed investors. When the company first announced today's presentation on January 9, Facebook responded by rallying nearly 5.0% in less than a week. The rise was attributed to speculation the company may launch a search engine or its own phone brand. However, at today's event, the company revealed a "graph search" feature.  Business software provider SAP (SAP 77.55, -4.33) also contributed to the weakness in technology. The stock lost 5.3% after the company's operating profit missed expectations. Additionally, SAP lowered its fourth quarter guidance, which also contributed to the selling.  The discretionary sector was the top performer after the December retail sales report beat expectations. Retailers rallied on the news and the SPDR S&P Retail ETF (XRT 64.54, +1.32) gained 2.1%.  This morning, Lennar (LEN 40.68, -0.34) was the first homebuilder to report its fourth quarter results. The report was generally positive as the company's earnings and revenue exceeded the Capital IQ consensus estimates. In addition, the company expects its full-year 2013 gross margins to be in-line with analyst estimates. Despite the upbeat earnings, Lennar settled lower by 0.8%. It should be noted the stock has added over 36% over the past five months, thus strong quarterly results have been largely priced-in. Other homebuilders showed intraday strength and finished generally higher as Lennar's results were expected to translate into upbeat earnings from its peers. Financials outperformed the broader market with ten sector components scheduled to report their quarterly results ahead of tomorrow's open. JPMorgan Chase (JPM 46.35, +0.47) was in the news today as the bank was ordered to improve its risk controls following last year's $6.2 billion derivative trading loss. JPMorgan Chase will report its fourth quarter earnings tomorrow and the Capital IQ consensus expects the financials to show year-over-year bottom line growth of 35%. The market will also receive quarterly results from Goldman Sachs (GS 135.59, -0.54) which are expected to show earnings of $3.40 on $7.67 billion in revenue.  Several economic data points crossed the wires today. During November, business inventories rose by 0.3%, which was in-line with the Briefing.com consensus. Today's reading follows the prior month's uptick of 0.4%.  December retail sales rose by 0.5%, which was better than the 0.2% increase that had been broadly expected. The revised prior month's reading pointed to an increase of 0.4%. Excluding autos, retail sales rose by 0.3%, which was in-line with the Briefing.com consensus.  December producer prices decreased by 0.2%, which was cooler than the unchanged reading that had been widely forecast. Core producer prices rose by 0.1% which was cooler than the uptick of 0.2% expected by the Briefing.com consensus.  The Empire Manufacturing Survey for January registered a reading of -7.8, which was up from the prior month's reading of -8.1. Economists polled by Briefing.com had expected that the Survey would rise to 2.0.  In tomorrow's economic data, the weekly MBA Mortgage Index will be reported at 7:00 ET. December CPI and core CPI will both be released at 8:30 ET. At 9:00 ET, November net long-term TIC flows will hit the wires. December industrial production and capacity utilization will be reported at 9:15 ET while January NAHB Housing Market Index will cross at 10:00 ET. Lastly, the Federal Reserve will release its January Beige Book at 14:00 ET. ..NYSE Adv/Dec 1735/1272. ..NASDAQ Adv/Dec 1314/1142.

After Hours

17:30 ET CBK +8.5%, TTMI +7.6%, PCRX -3.2%, FIVE -2.2% following earnings/guidance :

Equities began the day with a slightly bearish bias after Germany's 2012 GDP was reported below expectations. Though the news weighed at the open, the major averages showed resilience, and spent the remainder of the session climbing off their lows. As a result, the S&P 500 added 0.1% while the Nasdaq underperformed with a loss of 0.2%.

Today after the close the following companies reported earnings: ADTN, FULT, IBKR, LLTC, PNFP, RNST

Futures are mixed after hours: S&P 500 futures are -0.06 from fair value of 1467.16 and Nasdaq100 futures are +1.63 from fair value of 2717.12.

Tomorrow morning before the open five economic reports are scheduled to be released: 1) MBA Mortgage Index, 2) CPI (Consensus 0.0%) and Core CPI (Consensus 0.1%), 3) Net Long-Term TIC Flows, 4) Industrial Production (Consensus 0.2%) and 5) Capacity Utilization (Consensus 78.5%).

Tomorrow before the open the following companies are scheduled to report earnings: BK, CMA, FRC, GS, JPM, MTB, NTRS, USB, WEN, WNS

Commodities

Treasuries

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Jason's Commentaries

Got it wrong again... The market is sending these mixed signals again and again that makes it damn tough to read. Another up day in the DOW again. DOW is up around 20 points only? 3 days of flat day, the market is totally indecisive on what to do. The internals were mixed once again... Looking at the sectors, most sectors were up except the Tech stock once again, being dragged down by Apple and Facebook. Apple sunk another 3.5% below 500 bucks which makes it very attractive for value investors to jump in. Apple is going to announce its earnings a few days later and we can expect some pricing in to take place. As for Facebook, it came out with a surprisingly disappointing new feature called the Graph Search? It got hammered down after releasing that piece of news. 

16 Jan will likely to be a do or die day. 2 of the biggest wall street banks are earning their earnings today. JP Morgan and Goldman Sachs. If these 2 banks fail to please the market, we will be looking at a correction today. In addition, we're having the CPI, and the Beige Book coming out today... Guess the economic data's influence might not be as huge as the banks' earnings.. 

As for the Technical updates.... there's not much to update anyway... i'm still looking forward for a retracement....... and it's not coming yet....  

Market Call: FLAT

Date: 16 Jan 2013