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

Commodities

Treasuries

Next Day In View 




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