7 Mar 2013 AMC

7 Mar 2013

Market Summary 

Market Internals

Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:20 ET Dow +33.25 at 14329.49, Nasdaq +9.72 at 3232.09, S&P +2.80 at 1544.26 :[BRIEFING.COM] The major averages ended today's session on a positive note. After spending the day in a narrow range, the Nasdaq settled as the top performing index with a gain of 0.3%.  In many ways, today's session mimicked yesterday's range bound affair with financials and materials settling in the lead.  Major financials outperformed even as the market awaited the Federal Reserve's CCAR report, scheduled for after the close. This is more commonly known as a bank stress test, and should provide some insight on the health of the banking sector. Bank of America (BAC 12.26, +0.34) was the top performer among the majors while the broaderSPDR Financial Select Sector ETF (XLF 18.19, +0.13) gained 0.7%.  Today's outperformance of the materials sector was aided by steelmakers. This was the second consecutive session where steel producers acted in support of the sector. TheMarket Vectors Steel ETF (SLX 45.75, +0.20) added 0.4%.  The technology sector also displayed relative strength as its largest component, Apple(AAPL 430.58, +4.92), settled higher by 1.2%.  Several networking-related names outperformed after Ciena (CIEN 17.53, +2.59) reported first quarter earnings well ahead of its Capital IQ consensus estimate. Investors viewed the report as a positive sign regarding the health of Ciena's peers. F5 Networks (FFIV 94.23, +1.12) and JDS Uniphase (JDSU 15.23, +1.08) ended with respective gains of 1.2% and 7.6%.  Equities were driven higher by cyclical sectors, but the Dow Jones Transportation Average—which has climbed 14.6% year-to-date—was absent from the rally. The bellwether complex lost 0.5% amid broad weakness in railroads.  While the record-setting levels in the Dow Jones Industrial Average received notable headline attention, the Dow Jones Transportation Average was setting an all-time high of its own. The transports marked fresh highs shortly after yesterday's open, but have surrendered nearly 2.0% since.  The underperformance of a group which made large contributions to this year's rally bears noting. However, since the broader market registered gains today, this suggests money was moving around the market rather than out of the market.  On the downside, defensively-oriented consumer staples, health care, and utilities registered losses. The utilities sector was the weakest performer and the SPDR Utilities Select Sector ETF (XLU 37.89, -0.17) shed 0.5%.  Investors received a handful of economic data points today. Weekly initial claims were reported at 340,000 while the Briefing.com consensus had expected a reading of 350,000. The report was encouraging as this was the second week which saw claims remain below the 350,000-400,000 range observed for much of last year.  Productivity was revised slightly higher to show a 1.9% decline versus a 2.0% decline that was previously reported. Unit labor costs were revised up to show a 4.6% increase versus the prior reading showing a 4.5% increase.  January trade deficit widened to $44.4 billion from $38.1 billion in December. Today's reading fell short of the $43.0 billion deficit expected by the Briefing.com consensus and the January report is apt to be a negative factor in many economists' models for first quarter GDP growth forecast.  According to the Federal Reserve, consumer credit increased by $16.2 billion in January. This follows the prior month's revised $15.1 billion increase, and is higher than the $12.8 billion that had been broadly expected among economists polled by Briefing.com.  Tomorrow's economic data will focus on jobs. February nonfarm payrolls, nonfarm private payrolls, unemployment rate, hourly earnings, and average workweek are all scheduled for an 8:30 ET release. Lastly, January wholesale inventories will be reported at 10:00 ET. ..NYSE Adv/Dec 1751/1270. ..NASDAQ Adv/Dec 1492/962.

After Hours

18:31 ET P +20.8%, MEET +9.9%, AMBA +7.8%, CMTL -12.0%, SKUL -9.5%, ZQK -8.7% following earnings/guidance :

The major averages ended today's session on a positive note. After spending the day in a narrow range, the Nasdaq settled as the top performing index with a gain of 0.3%.

Other notable after hours movers on earnings: P +20.8%, MEET +9.9%, AMBA +7.8%, HRB +4.7%, CCIX +4.0%, WX +3.2%, FNSR +3.0%, WPRT +2.2%, MXWL -14.3%, CMTL -12.0%, SKUL -9.5%, ZQK -8.7%, MED -8.7%, ANGO -4.6%, SQNM -4.2%, WDAY -3.1%, COO -2.7%, YY -1.4%, CYTX -1.0%, POWR -0.4%, MAIN -0.4%, TXN -0.3%

Today after the close the following companies reported earnings: AMBA, BPZ, CCIX, CMTL, COO, EBS, FNSR, HRB, MED, P, POWR, ZQK, SGK, SQNM, SKUL, STAN, THO, WPRT, WDAY, WX, YY

Futures are higher after hours: S&P 500 futures are +0.32 from fair value of 1536.58 and Nasdaq100 futures are +1.22 from fair value of 2792.03.

Tomorrow morning before the open four economic reports are scheduled to be released: 1) Nonfarm 

Payrolls (Consensus 165k) and Nonfarm Private Payrolls (Consensus 178k), 2) Unemployment Rate (Consensus 7.9%), 3) Hourly Earnings (Consensus 0.2%), and 4) Average Workweek (Consensus 34.4).

Tomorrow before the open the following companies are scheduled to report earnings: ANN, ARCO, FL, FSYS, GCO, KMG, MEA

Commodities

Treasuries

Next Day In View 

Jason's Commentaries


It seems that the bulls still got strength left in them yesterday, and i got the call right last night.. The market broke a higher high last night with volumes of 708million shares traded on the NYSE. The bulls outpaced the bears at approx 1 to 2 times. I believe most of the down volumes come from the fact that we are announcing non-farm payrolls today and the market broke the higher high. The market was up more than 30 points on the Dow when the market open, maintained the high till 1220 before the market lost approx 20 points. Before market closes, we managed to regain another 10 points. That still point strength in the market. If everything goes bullish till April, We might be looking at going to 15000 on the Dow before May. 

The main leader was the Financials, being lagged by both utilities and healthcare. Let's see whether the financials, industrials and discretionary are able to lead the market to 15000.

Oil maintained a $91 dollar range while the precious metals maintained their low. Treasuries made some downside movements on the 10y and 30y.

While we're expecting the non-farm payrolls today, it's going to a tough call..  

Market Call:FLAT to upside

Date: 8 Mar 2013