17 June 2013 AMC

17 June 2013 AMC

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Stock Market Update 16:15 ET Dow +109.67 at 15179.85, Nasdaq +28.58 at 3452.13, S&P +12.31 at 1639.04 : [BRIEFING.COM] The major averages ended with solid gains as the S&P 500 rose 0.8%.  Stocks reached their highs one hour into the session and drifted near those levels into the afternoon. However, equities were rattled by a Financial Times story suggesting Federal Reserve Chairman Ben Bernanke is likely to discuss tapering at his Wednesday press conference.  Although the story reiterated the need for improved economic conditions, and did not contain any new revelations, the mere mention of tapering knocked equities off their highs. Only some of the losses held into the close as the S&P was able to erase some of the weakness.  When the dust settled, cyclical sectors ended in the lead with energy and technology outpacing the remaining growth-sensitive groups.  The energy sector rose 1.3% even as crude oil ended the session unchanged at $97.85 per barrel.  Elsewhere, the tech space ended higher by 1.1% amid broad strength. Top componentsGoogle (GOOG 886.25, +11.21) and Microsoft (MSFT 35.00, +0.60) settled with respective gains of 1.3% and 1.7%. High-beta chipmakers also outperformed as the PHLX Semiconductor Index rose 1.5%.  Also of note, Netflix (NFLX 229.23, +15.24) jumped 7.1% after the company announced a multi-year partnership with DreamWorks Animation (DWA 23.74, +0.93).  Another influential group, financials, was briefly victimized by the Financial Times headline before regaining most of its losses into the close. The sector ended higher by 1.0%. Meanwhile, the industrial sector underperformed amid weakness in transportation-related names. The Dow Jones Transportation Average lost 0.2% after being up as much as 0.8%.  On the downside, the telecom services sector shed 0.6% after a daylong slide from highs to lows. The other high-yielding sector, utilities, ended with a slim gain of 0.3%.  Treasuries closed on session lows after the complex was unable to recover from the Financial Times headline. The benchmark 10-yr climbed five basis points to 2.171%.  Today's economic data included the June Empire State Manufacturing Survey and the NAHB Housing Market Index. The Empire State Survey produced a positive headline surprise (7.8 actual, 0.8 Briefing.com consensus, -1.4 prior) but many significant subcomponents posted declines for the month.  Separately, the June NAHB Housing Market Index rose to 52 from 44 (45 Briefing.com consensus).  Tomorrow, May CPI, core CPI, housing starts, and building permits will all be announced at 8:30 ET. ..NYSE Adv/Dec 2035/1007. ..NASDAQ Adv/Dec 1588/903.

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Jason's Commentaries


For no reason... Market was up more than 100 points... Volumes were slightly below average of 700m shares traded in the NYSE. Market was up initially and held the highs with a 240 points gain at its highest until 2pm ET when everything decides to go down by 120 points. Finally the market closed at 109 points gain. The last 1 hour spike is likely to be shortcovering after the massive drop. I would reckon that the market is not just so bullish after all. The UVOL outpaced the DVOL by approx 3:1 and the ADVN outpaced DECN by 2:1. TRIN stayed near the neutral most of the time. Not exactly a very bullish sign. The biggest gainers are the Energy and the Financial Sectors with 1.44% and 0.97% gain respectively. All sectors were up last night. 

On the Technicals, the 50MA also provided support for the Dow. However, the Dow is also being restricted by the 20MA. Treasuries rallied last night as well. For the commodities, it was a rather choppy ride. However, it can be seen that the metals are on a decline last night.

Ahead of the FOMC statement, I believe the market will likely to stay sidelined till Wednesday.

Market Call: Flat to downside

Date: 18 June 2013