9 Jan 2013

9 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 +61.66 at 13390.51, Nasdaq +14.00 at 3105.81, S&P +3.87 at 1461.02 :[BRIEFING.COM] Stocks began the day on a positive note after Alcoa (AA 9.08, -0.02) kicked off the fourth quarter earnings season with a strong top line result. With no notable economic data, the remainder of the session was largely uneventful as the key indices retreated off their respective highs, ending with just a portion of their early gains. The S&P 500 added 0.3%.  Financials lagged the broader market, and the SPDR Financial Select Sector ETF (XLF 16.94, -0.03) shed 0.2%. Bank of America (BAC 11.43, -0.55) lost 4.6%, and was a notable underperformer. This morning, Credit Suisse downgraded the stock to ‘Neutral' from ‘Outperform.' In addition, Bank of America is taking part in a two-day hearing on its successor liability over the Countrywide legacy assets.  Also of note, multiple reports have indicated Morgan Stanley (MS 19.62, -0.03) will cut 1,600 jobs in its institutional securities business. The expected layoffs would amount to about 6.0% of the company's workforce within the investment banking unit. Looking at other majors, Citigroup (C 42.04, -0.42) slipped 1.0% and Goldman Sachs (GS 134.32, +1.27) added 1.0%.  For-profit education names saw general weakness after Apollo Group (APOL 19.32, -1.62) reported its quarterly results. Although Apollo beat on earnings and revenue, its full-year revenue guidance was a disappointment. Following the earnings report, Morgan Stanley downgraded the stock to ‘Equal-Weight' from ‘Overweight.' Apollo Group sank 7.8% and peers DeVry (DV 24.00, -1.24) and Strayer Education (STRA 52.70, -4.47) both lost in excess of 4.5%.  A handful of tech companies advanced after issuing upbeat guidance. InteractiveIntelligence (ININ 39.02, +6.12) surged 18.6% after the company guided its fourth quarter and full-year revenue ahead of the consensus estimate. Elsewhere, Seagate(STX 33.48, +2.09) advanced 6.6% after raising its second quarter revenue guidance above analyst estimates. Peer Western Digital (WDC 43.80, +1.82) gained 4.3%.  Also of note, Apple (AAPL 517.10, -8.21) dropped 1.6%. Last evening, the Wall Street Journal published reports which indicated the tech company may launch a lower-end iPhone during the second half of the year. Among industrials, Boeing (BA 76.76, +2.63) added 3.6% to rebound from recent weakness which followed concerns about mechanical issues with the company's new Dreamliner 787 jet. Note that earlier reports out of Japan have indicated an All Nippon Airways flight was cancelled due to an issue with the plane's braking system.  Today's economic data was limited to the MBA Mortgage index, which pointed to an 11.7% week-over-week increase in mortgage applications. This followed the prior week's decline of 10.4%.  Looking at tomorrow's economic data, weekly initial and continuing claims will be reported at 8:30 ET.  The U.S. Treasury will hold a $13 billion 30-yr reopening. ..NYSE Adv/Dec 2063/959. ..NASDAQ Adv/Dec 1607/859.

After Hours

16:50 ET VOXX +12.6%, PSMT +6.3%, RT -5.1%, DRWI -2.1% following earnings/guidance :

Stocks began the day on a positive note after Alcoa (AA 9.08, -0.02) kicked off the fourth quarter earnings season with a strong top line result. With no notable economic data, the remainder of the session was largely uneventful as the key indices retreated off their respective highs, ending with just a portion of their early gains. The S&P 500 added 0.3%.

Today after the close the following companies are scheduled to report earnings: DRWI, PSMT, RELL, RT, TXI, VOXX

Futures are higher after hours: S&P 500 futures are +0.67 from fair value of 1455.63 and Nasdaq100 futures are +0.76 from fair value of 2721.74.

Tomorrow morning before the open one economic report is scheduled to be released: 1) Initial Claims (Consensus 364k) and Continuing Claims (Consensus 3200k).

Tomorrow before the open the following companies are scheduled to report earnings: MSM, SVU

Commodities

Treasuries

Next Day In View 




Jason's Commentaries

Was too busy with school for the past 2 days to be able to do the DMA.. Finally got time to do the DMA. 

Yesterday was supposed to be a flat day... but the internals are showing tonnes of divergence. TRIN was up high, VIX went up, TICK was trading at the positive region most of the time, and most of the DOW components are up! Most of the DOW components were up because of both Healthcare and industrials. BA recovered from a sell-off due to the problems with the dreamliner, UTX moved in sympathy. On top of that, UNH made a near 2% gain which helped the DOW ended up higher last night. Also, DOW was at the 13000 the day before, so all these factors caused the day to be 'bullish' 

On the technical note, we bounced off the 13000 level and  will be soon facing a minor resistance at 13450. I believe there should be more upside potential to go, however we have to prepare for the vvolatility due to the earnings season. Alcoa kick off the earnings season 2 days back and the stock price is not looking good. We'll continue to monitor the movements of heavy weighted stocks in the DOW. 

Just a short recap on the previous earnings season

Out of 500 S&P 500 companies
63.4% Beat Estimate
11.1% Met Estimate
25.3% Missed Estimate

 the major movers today will be the data coming out from the eurozone, which will likely dictate the open of the US market today. Subsequently we got the unemployment claims coming out at 830am ET. We gonna be looking at some volatile open today.

Market Call:FLAT

Date: 10 Jan 2013