17 Apr 2013 AMC

17 Apr 2013 AMC

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Briefing's Commentaries 

16:15 ET Dow -138.19 at 14618.59, Nasdaq -59.96 at 3204.67, S&P -22.56 at 1552.01 :[BRIEFING.COM] After yesterday's session saw the S&P 500 log its second-largest one-day advance of the year, today's action was dictated by the sellers. The S&P fell 1.4% as all ten sectors ended in the red. 

There was no single catalyst responsible for today's decline. Instead, persistent global growth concerns coupled with rumors of a possible downgrade of France and Germany set the stage for a sharply lower open. Meanwhile, the pre-market downgrade rumors were partially realized before the close when Egan Jones downgraded Germany's rating to ‘A' from A+.' 

Technology stocks felt the brunt of today's drop as the SPDR Technology Select Sector ETF (XLK 29.62, -0.62) lost 2.1%. Apple (AAPL 402.80, -23.44) dipped below $400 for the first time since December 2011, and settled lower by 5.5%. In addition to the broad market pressure, disappointing guidance from Apple supplier Cirrus Logic (CRUS 18.05, -3.36) fueled speculation regarding the health of its largest customer. 

Intel (INTC 21.93, +0.02) was a bright spot among tech shares after the company reported in-line earnings and revenue. However, other chipmakers did not benefit from Intel's results as the PHLX Semiconductor Index lost 3.3%. 

Financials also finished among the weakest performers as the SPDR Financial Select Sector ETF (XLF 18.02, -0.34) shed 1.9%. Bank of America (BAC 11.70, -0.58) tumbled 4.7%, and ended below its 50-day moving average after missing on earnings. 

Energy and materials led the market to the downside on Monday, and the two remained weak today. The energy sector lost 1.9% as crude oil declined as well. The energy component slid 2.2% to $86.74 per barrel. 

Elsewhere, the materials space underperformed amid weakness in metals. Copper slumped 3.8% to end at levels not seen since September 2011 while gold slipped 1.1% to $1373.00. Steelmakers also echoed the ongoing growth concerns as the Market Vectors Steel ETF (SLX 39.78, -1.08) sank 2.6%. Meanwhile the SPDR Materials Select Sector ETF (XLB 37.43, -0.56) shed 1.5%. 

Due to the continued weakness in materials, the space is the only S&P sector trading in the red this year. 

Worries surrounding global growth have also had an impact on the industrial sector. Transportation-related stocks saw intraday underperformance, but the Dow Jones Transportation Average ended the session in-line with the broader market, closing down 1.5%. 

After soaring more than 40.0% on Monday, the CBOE Volatility Index (VIX 16.50, +2.54) crept above those highs before ending below 17. 

Today's selling took place on heavy volume as 866 million shares changed hands on the floor of the New York Stock Exchange. 

Tomorrow, weekly initial and continuing claims will be reported at 8:30 ET while March leading indicators and the April Philadelphia Fed Survey are both set to cross the wires at 10:00 ET. Among earnings of note, Freeport-McMoRan (FCX 28.00, -1.25) and PepsiCo(PEP 78.85, -1.15) will report their results before the opening bell. ..NYSE Adv/Dec 685/2373. ..NASDAQ Adv/Dec 474/2009.

After Hours

17:36 ET CLB +2.2%, CYS +0.6%, SLM +0.4%, SCSS -7.5%, CCK -3.8%, EBAY -2.7% following earnings/guidance :

After yesterday's session saw the S&P 500 log its second-largest one-day advance of the year, today's action was dictated by the sellers. The S&P fell 1.4% as all ten sectors ended in the red. 

Today after the close the following companies reported earnings: EBAY, EPB, KMP, PLXS, SLM, AXP, CVBF, WTFC, ALB, AF, CNS, EWBC, GHL, NE, RLI, SNDK, UMPQ, SCSS, STLD, CCK, CLB, HNI, CVA, CYS, PTP, UFPI, LHO

Futures are lower after hours: S&P 500 futures are -1.93 from fair value of 1547.03 and Nasdaq100 futures are -4.04 from fair value of 2776.29.

Tomorrow morning before the open two economic reports are scheduled to be released: 1) Initial Claims (Consensus 355k) and 2) Continuing Claims (Consensus 3068k).

Tomorrow before the open the following companies are scheduled to report earnings: PPG, APH, BBT, FITB, HOMB, IIIN, PBCT, TSM, UNH, MMR, MS, FCX, PVTB, VZ, BAX, BPOP, CY, FCS, HUB.B, KEY, NOK, SASR, TZOO, UNP, BTU, DHR, NUE, ADS, AN, BX, PENN, SHW, UTEK, WCC, KNL, PM, SNA, OMC, SON, PEP, POOL, SYNT, WSO, LDK

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Jason's Commentaries


Was right on the call of the down day last night. Market went -138 points down on the Dow Jones. With 866 million shares traded on the NYSE, the volatility is getting larger. Market went down at the start of the trading day and hovered sideways from 11am till the closing bell. The heavily hit metals went sideways throughout the trading session last night. While Bank of America annouced a ddisappointing earnings, causing the financials to turn down, and led the Financials to be the 3rd largest laggard at -1.88%. While the largest laggard is Energy and Tech. Tech was being led down by Apple, having cross lower than $400. While on the technical side, the DJI is still hovering above the 20MA. It seems that once the 20MA is broke. It's gonna be fast and furious. For today, we have a few reports coming out such as the Philly Fed and the Unemployment Claims. Nonetheless, our focus will be on Morgan Stanley today, and see whether Morgan Stanley is able to led the financials up today. 
 

Market Call: FLAT to upside

Date: 18 Mar 2013