26 June 2013 AMC

26 June 2013 AMC

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Briefing's Commentaries 

Stock Market Update 16:15 ET Dow +149.83 at 14910.14, Nasdaq +28.34 at 3376.23, S&P +15.23 at 1603.26 : [BRIEFING.COM] The S&P 500 settled higher by 1.0% as all ten sectors registered gains.  Equities began the session on an upbeat note despite today's disappointing economic news, which indicated first quarter GDP growth was revised down with the third estimate to 1.8% from 2.4%. Typically, revisions to GDP in the third estimate are very minor. The large decline in this report was very unusual and caught all economists by surprise.  Most of the downward revision came from consumption in services. In the previous estimate, services spending increased 3.1%. That was revised down to 1.7% growth and contributed 0.6 percentage points less to GDP growth.  Stocks received this news in stride as sluggish growth suggests the Federal Reserve is less likely to withdraw its support from the markets. To that end, the Treasury complex received an aggressive bid immediately after the GDP revision crossed the wires. The benchmark 10-yr yield ended lower by seven basis points at 2.542%.  There was no defined sector leadership today as health care and utilities finished atop the leaderboard while the discretionary sector and industrials followed closely.  The health care space rose 1.5% as biotechnology rallied. The iShares Nasdaq Biotechnology ETF (IBB 173.02, +4.38) advanced 2.6%.  Another countercyclical group, utilities, settled higher by 1.3% as today's gain allowed the rate-sensitive sector to erase its June loss and join the telecom space in positive territory for the month.  Elsewhere, the discretionary sector climbed 1.3% as most components rebounded from recent weakness. However, homebuilders remained shaky. DR Horton (DHI 20.92, +0.01) ended little changed, Toll Brothers (TOL 32.56, +0.60) added 1.9%, while the broader iShares Dow Jones US Home Construction ETF (ITB 22.21, +0.19) rose 0.9%. Despite today's advance, the homebuilders ETF is down more than 15.0% since notching its mid-May high.  Also of note, the industrial sector received a boost from transportation-related names as the Dow Jones Transportation Average added 0.8%.  Precious metals endured another rough session as gold futures fell 3.9% to $1225.00 per troy ounce while silver futures declined 5.2% to $18.50 per troy ounce. With stocks ending on their highs, the CBOE Volatility Index (VIX 17.22, -1.25) settled on its lowest level in more than a week.  Tomorrow, weekly initial claims, May personal income, personal spending, and core PCE prices will all be reported at 10:00 ET while the May pending home sales report will cross the wires at 10:00 ET.  The U.S. Treasury will auction $29 billion in 7-yr notes. ..NYSE Adv/Dec 2346/741. ..NASDAQ Adv/Dec 1349/1110.

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Jason's Commentaries


Wrong again last night. It seems that market is going higher on stronger volumes. Market started with a bullish bias, after some profit taking, it started to go up all the way till closing bell. TRIN came in divergence from the start of the trading day. All sectors were up and bulls outpaced the bears by 3:1. Utilities and Healthcare managed to end the day as the strongest leaders while Materials were the weakest gainers. While on the Technical side, Dow is confronting at the resistance at 14900 while the 50MA is likely to pose as another level of resistance. As the European market is flat to the downside today, Asia had the biggest gains for the past few weeks. Shanghai Composite index is still flat to the downside. As of 5.20am ET, market is still flat to the upside. I reckon the main mover of the market today will likely to be the unemployment claims. The precious metals has been crashing down like made and gold is already at 1235, way off from the high. A few months of down trend wiped out the gains made in 3 years. What a nasty move in Gold price. There could be speculation that gold might go worthless? Perhaps Copper and Silver will be better investments than gold since they have major industrial values.Everything else aside, I believe the day is likely to move flat to the downside. What a volatile week to survive...

Market Call: FLAT to downside

Date: 27 June 2013