23 Jan 2013 AMC

23 Jan 2013

Market Summary 

Market Internals

Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:15 ET Dow +66.96 at 13779.17, Nasdaq +10.49 at 3153.67, S&P +2.22 at 1494.78 :[BRIEFING.COM] The major averages finished today's session on a positive note despite early weakness in the S&P 500. Today's focus centered on earnings as technology heavyweights Google (GOOG 741.50, +38.63) and International Business Machines(IBM 204.72, +8.64) reported fourth quarter results which were received warmly by the market.  Both companies beat their respective Capital IQ earnings expectations, while revenues proved to be more of a mixed bag. Google's top line of $12.16 billion represented nearly 50.0% year-over-year growth, but the figure fell short of analyst expectations. Meanwhile, IBM's revenue slipped 0.6% year-over-year to $29.30 billion.  Google and IBM saw respective gains of 5.5% and 4.4%, and their strength resulted in a notable divergence in the major averages. It should be noted that IBM accounts for more than 10.0% of the price-weighted Dow Jones Industrial Average due to its high stock price. This caused the 30-stock average to trade near its session high for the duration of the day.  Elsewhere, the Nasdaq spent the entire session in a ten point range as positive tech earnings contributed to the relative strength. Also of note, Apple (AAPL 514.00, +9.24) gained 1.8% prior to reporting its quarterly earnings after the closing bell.  The S&P 500 was the last index to cross into the black. After making several morning attempts, the benchmark average turned positive in afternoon trade in a move which coincided with the successful passage of the "No Budget, No Pay" bill in the House of Representatives. The measure, which is aimed at extending the debt ceiling until May 19, comes with a caveat stipulating congressional pay will be suspended if no budget deal is reached by April 15.  While technology stocks were the clear leaders today, steel producers lagged as theMarket Vectors Steel ETF (SLX 49.33, -0.44) ended lower by 0.9%.  Apparel producers were also among the underperformers after Coach (COH 50.75, -9.93) missed on earnings and revenue. In addition, the retailer said its North American comparable store sales fell short of estimates. The stock tumbled 16.4% and peer Fossil(FOSL 103.49, -2.46) was hit hard, falling 2.3%.  Crude oil traded with slim losses for the majority of the session before selling off into the close. The weakness caused the energy component to slip 1.1% and settle at $95.60.  Today's economic data focused on housing. The weekly MBA Mortgage Index pointed to a 7.0% increase in new mortgage applications. This follows the prior week's increase of 15.2% Elsewhere, the November FHFA Housing Price Index rose by 0.6% to follow the prior month's uptick of 0.5%.  Tomorrow, weekly initial and continuing claims will both be reported at 8:30 ET. In addition, December leading indicators will be released at 10:00 ET. ..NYSE Adv/Dec 1423/1553. ..NASDAQ Adv/Dec 1045/1420.

After Hours 17:56 ET NFLX +32.4%, FFIV +5.0%, MLNX -30.2%, AAPL -10.2% following earnings/guidance : The major averages finished today's session on a positive note despite early weakness in the S&P 500. Today's focus centered on earnings as technology heavyweights Google (GOOG 741.50, +38.63) and International Business Machines (IBM 204.72, +8.64) reported fourth quarter results which were received warmly by the market. Other notable after hours movers on earnings: NFLX +32.4%, ZHNE +15.1%, SWFT +10.5%, FFIV +4.5%, MLNX -30.2%, AAPL -10.2%, VAR -4.7%, SNDK -4.5%, LRCX -2.3%, AMGN -0.6%. Today after the close the following companies reported earnings:  AAPL, AF, ALTR, AMGN, BXS, CATY, CBST, CCI, CGI, CMRE, CNS, EGN, EWBC, EXAR,  FBC, FFIV, FNB, GHL, HRC, HXL, INVN, JEC, LOGI, LRCX, LSI, MLNX, NE, NFLX, NVEC, PLCM, PMTC, RJF, RLI, SNDK, SUSQ, SWFT, SYK, SYMM, TCBI, TER, UMPQ, URI, VAR, WDC, WIBC Futures are much lower after hours: S&P 500 futures are -4.36 from fair value of 1489.66 and Nasdaq100 futures are -26.17 from fair value of 2755.92. Tomorrow morning before the open two economic reports are scheduled to be released: 1) Initial Claims (Consensus 355k) and 2) Continuing Claims (Consensus 3200k). Tomorrow before the open the following companies are scheduled to report earnings: ABC, ACAT, ALK, AME, AOS, ARG, AVT, AVX, BAX, BC, BGG, BMY, BPOP, CCMP, CELG, CLP, CSH, CY, DLX, DOV, EQT, ESI, FCS, GMT, GWW, HUB.B, ISCA, JNS, KCG, KEY, KMT, LMT, LUV, LYTS, MDP, MKC, MMM, NMM, NOK, NPBC, ORI, OSIS, PCP, PROV, QSII, RTN, RYN, SASR, STEL, STL, SWK, TAYC, TDY, TZOO, UAL, UCBI, UNP, XRX

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Jason's Commentaries

Although there is a 67 points increase in DOW yesterday, it was not exactly bullish. The heaviest weighted component, IBM, rallied yesterday. So after looking at the internals and other indices, we can pretty much conclude it as a flat day to the upside. Seems that I finally got it right.. 

Here's some big boys earnings yesterday...UTX's profit jumps 55%, and revenues jumped 14%, while General Dynamics posted a loss of $2.13B from a profit of $6.03M. Wellpoint reported a profit growth of 35%. While the 2 major tech companies, IBM and GOOG posted awesome profit. However in the after hours, Apple posted its earnings, all missed all it's estimate, missed on revenues and profits, sunk a 10% on heavy trading volume. This is going to have a heavy drag on the NASDAQ on Thursday. While on Thursday, 2 major defense companies Lockheed Martin and Raytheon will be annoucing earnings hence we're gonna be looking at some serious action in the Industrials. 

On the Technical note, the indices continue to hit the highs and the next impending resistance is at 14000 on the DOW. We're almost at the pre-subprime high and we're definitely not having the kind of earnings we have in 2007. Perhaps this might drag us down into a deeper recession? 

While on Thursday's news, we're only having unemployment claims coming up. And due to the euphoria coming from Apple's earnings, I believe the market will retrace slightly while other tech companies hold their ground.
 

Market Call: FLAT to downside

Date: 24 Jan 2013