11 June 2013 AMC

11 June 2013 AMC

Market Summary 

Market Internals

Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:15 ET Dow -116.57 at 15122.02, Nasdaq -36.82 at 3436.95, S&P -16.68 at 1626.13 : [BRIEFING.COM] The S&P 500 settled lower by 1.0% as all ten sectors ended in the red. Stocks began the day sharply lower as overseas concerns contributed to a rise in global interest rates, which, in turn, fueled the selling of equities. The Bank of Japan's decision to maintain its policy stance underwhelmed investors who expected the central bank to address recent bond market volatility. However, the lack of relevant commentary caused investors to sell bonds and equities in favor of the yen. In Europe, Greece saw its 10-yr yield spike more than 100 basis points after the country was unable to complete the privatization of natural gas producer DEPA. The early bond selling also left its mark on the U.S. market, but Treasuries managed to rally over the course of the session. As a result, the benchmark 10-yr yield ended lower by three basis points at 2.182% after hitting 2.290% early in the session. Stocks followed their lower open with a steady climb towards the flat line. The Dow was able to make a brief appearance in positive territory, but the relative weakness of energy and financials kept the S&P from crossing into the black. After a first-half climb off lows, the benchmark average spent the remainder of the session sliding back towards its opening levels. The financial sector ended lower by 1.7% amid losses in all major components. Elsewhere, the energy space lost 1.4% while crude oil endured a volatile session. The energy component fell to $94.00 per barrel before settling lower by 0.6% at $95.23. Other commodities displayed general weakness, which pressured the materials sector. The growth-oriented group settled lower by 1.4% as steelmakers lagged. TheMarket Vectors Steel ETF (SLX 39.11, -0.72) dropped 1.8%. For its part, copper fell 1.3% to $3.20 per pound. Most tech shares traded in-line with the broader market, but chipmakers sold off afterTexas Instruments (TXN 35.26, -1.36) lowered its second quarter earnings and revenue guidance. The cautious outlook weighed on the PHLX Semiconductor Index, which tumbled 2.2%. Other high-beta groups did not fare much better. Homebuilders registered losses across the board, and the iShares Dow Jones US Home Construction ETF (ITB 23.00, -0.45) declined 1.9%. The CBOE Volatility Index (VIX 17.10, +1.66) jumped over 10.0% as market participants adjusted their near-term volatility expectations. Also of note, the foreign exchange market was active once again with the Japanese yen taking center stage as it strengthened nearly 3.0% to 95.97. Today's economic news was limited to just one data point. Wholesale inventories increased 0.2% in April, and matched the Briefing.com consensus expectation. Inventory growth in March was revised down to 0.3% growth from 0.4%. Durable goods inventories were up 0.2% in April after increasing 0.4% in March. Strong gains in automotive (1.9%) and electrical (0.5%) more than offset losses in metals (-1.1%) and miscellaneous durables (-1.2%). Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET while the U.S. Treasury will release its May budget at 14:00 ET. The U.S. Treasury will also reopen $21 billion in 10-yr notes. ..NYSE Adv/Dec 399/2696. ..NASDAQ Adv/Dec 655/1837.

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Jason's Commentaries

What a volatile day last night... Market opened with a bearish bias, however, market started covering its shorts and almost erased its losses by mid day. However, after lunch time, market sold back down and caused the market to end in negative region. With no news to influence the market, I reckon the market's confidence is shaking. However, there are not much bearish sign in the market right now. Volumes were only at 689m shares traded and bears totally overrun the bulls. On the technicals side, we might be breaking the support level. I would expect the market to go up slightly before going down more as the futures were up at 0.5% at 745am ET. 

Market Call: FLAT to upside

Date: 12 June 2013