7 Jan 2013 BMO

4 Jan 2013 AMC

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Stock Market Update

16:10 ET Dow +43.85 at 13435.21, Nasdaq +1.09 at 3101.66, S&P +7.10 at 1466.47 :[BRIEFING.COM] The S&P 500 gained 0.5% to punctuate a week which saw the index climb over 4.0%. Today's advance was notable as it took the benchmark average to its best close since December 2007. The weeklong rally arrived after Washington lawmakers were able to avoid the fiscal cliff by agreeing to a tax plan. However, it should be noted that the country is nearing the debt ceiling, which sets up the stage for another lengthy debate during the first quarter of the year.  Today's session saw some notable moves as the SPDR Financial Select Sector ETF(XLF 17.05, +0.20) gained 1.2% and settled at its highest level since February 2011.  Elsewhere, the Dow Jones Transportation Average advanced 1.2% and saw its highest close since July 2011.  Also of note, the tech sector was the only declining space in the S&P 500 after Apple(527.00, -15.10) slid 2.8%. The weakness followed comments from Deutsche Bank's Japan unit which believes the company will report disappointing end-of-year sales. The weakness spilled over to several Apple suppliers as Cirrus Logic (CRUS 28.32, -1.03) and Skyworks Solutions (SWKS 20.95, -0.54) lost 3.5% and 2.5% respectively.  Next week, investors will turn their attention to fourth quarter earnings as Alcoa (AA 9.26, +0.19) is scheduled to kick-off the earnings season after Tuesday's close. The Capital IQ consensus expects the aluminum producer to report earnings of $0.07 on $5.64 billion in revenue. On Monday afternoon, we published a review of the global market performance in 2012. For those who missed it, we would like to revisit the report and look back at the past year:  2012 proved to be a positive year for world equities despite a number of macroeconomic challenges. Markets across the globe registered strong gains as Germany's DAX and Greece's ASE General Index both added over 30%. Domestically, the S&P 500 registered a solid 13% gain, and was slightly outperformed by the Nasdaq and Russell 2000. The renewed worries regarding the weakening fundamentals of the Eurozone persisted into the summer and weighed on market sentiment. However, late-summer efforts from the European Central Bank and the Federal Reserve alleviated some of the fears, and propelled the markets to a strong second-half performance. The rally was cut short after the election, when the market focus turned to the budget debate, which lasted into the New Year.

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Weekly Wrap 

Dow +43.85 at 13435.21, Nasdaq +1.09 at 3101.66, S&P +7.10 at 1466.47

The S&P 500 gained 0.5% to punctuate a week which saw the index climb over 4.0%. Today's advance was notable as it took the benchmark average to its best close since December 2007. The weeklong rally arrived after Washington lawmakers were able to avoid the fiscal cliff by agreeing to a tax plan. However, it should be noted that the country is nearing the debt ceiling, which sets up the stage for another lengthy debate during the first quarter of the year.

Today's session saw some notable moves as the SPDR Financial Select Sector ETF (XLF 17.05, +0.20) gained 1.2% and settled at its highest level since February 2011.

Elsewhere, the Dow Jones Transportation Average advanced 1.2% and saw its highest close since July 2011.

Also of note, the tech sector was the only declining space in the S&P 500 after Apple (527.00, -15.10) slid 2.8%. The weakness followed comments from Deutsche Bank's Japan unit which believes the company will report disappointing end-of-year sales. The weakness spilled over to several Apple suppliers as Cirrus Logic (CRUS 28.32, -1.03) and Skyworks Solutions (SWKS 20.95, -0.54) lost 3.5% and 2.5% respectively.

Next week, investors will turn their attention to fourth quarter earnings as Alcoa (AA 9.26, +0.19) is scheduled to kick-off the earnings season after Tuesday's close. The Capital IQ consensus expects the aluminum producer to report earnings of $0.07 on $5.64 billion in revenue.

On Monday afternoon, we published a review of the global market performance in 2012. For those who missed it, we would like to revisit the report and look back at the past year:

2012 proved to be a positive year for world equities despite a number of macroeconomic challenges. Markets across the globe registered strong gains as Germany's DAX and Greece's ASE General Index both added over 30%. Domestically, the S&P 500 registered a solid 13% gain, and was slightly outperformed by the Nasdaq and Russell 2000. The renewed worries regarding the weakening fundamentals of the Eurozone persisted into the summer and weighed on market sentiment. However, late-summer efforts from the European Central Bank and the Federal Reserve alleviated some of the fears, and propelled the markets to a strong second-half performance. The rally was cut short after the election, when the market focus turned to the budget debate, which lasted into the New Year.

Next Week In View



Jason's Commentaries

Was sooo busy during the weekend in Petaling Jaya and was busy celebrating my dad's birthday, and finally managed got time to write my market analysis.

Last Friday was a very phenomenal day. Dow and SPX was only up marginally but however, there were only 4 laggards in the DOW, as tech was the largest laggard in the 9 sectors, IBM, MSFT and HPQ dragged the DOW down. However, the market is definitely more bullish as it seems. Having more than 700 mill shares traded on the NYSE, we're looking at a bull day. The VIX also dropped to the low again, signifying some complacency in the market again. We're looking at the earnings very soon, with Aloca announcing its earnings on Tuesday, kicking start to the earning season.

On the technical side, we are starting to see a slow down in the bullish momentum in the market already. I reckon we should be looking at some retracements before making the higher highs. Moreover, unemployment rate was up at 7.8% and the Non-farm Payrolls look quite dovish. Hence we are looking at some flat week ahead.

For the 2nd week of 2013, I'm expecting the week to be flat to the upside as there are not much data except the unemployment claims on Thursday. And this week, we're in the earning seasons. Time for some major volatility in the market!

In the Traders Alamac, it was started that the first 5 days in the post election years has a odds of 9 out of 15 time going down in the SPX. Since we just had a bullish week already, I believe it's time for the market to profit take a little already.

Market Call:DOWN

Date: 7 Jan 2013