1 July 2013 AMC

1 July 2013 AMC

Market Summary 

Market Internals

Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:10 ET Dow +65.36 at 14974.96, Nasdaq +31.24 at 3434.49, S&P +8.68 at 1614.96 :[BRIEFING.COM] The S&P 500 advanced 0.5% to begin the third quarter on an upbeat note. Although the S&P registered a solid gain, the index closed almost 12 points below its session high after being rejected by its 20- and 50-day moving averages.  Stocks climbed at the open, taking a cue from gains in major markets across the world. Global investors favored equities despite mixed PMI data out of China as the country's Manufacturing PMI declined to 50.10 from 50.80 (50.00 expected) and the HSBC Manufacturing PMI remained in contraction with a downtick to 48.2 from 48.3 (48.3 forecast).  Meanwhile, most European Manufacturing PMI reports surprised to the upside, but only Great Britain (52.5 actual, 51.5 expected) posted an expansionary reading while Spain (50.0 actual, 48.5 expected) came in right on the border between contraction and expansion. The aggregate Eurozone Manufacturing PMI ticked up to 48.8 from 48.7.  Commodities began showing strength overnight, and those gains provided a boost to growth-oriented sectors. Copper futures jumped 3.3% to $3.157 per pound while gold futures rose 2.4% to $1252.50 per troy ounce. Similarly, the Market Vectors Gold Miners ETF (GDX 24.89, +0.40) added 1.6%, giving a measure of support to the materials sector, which ended among the leaders.  The industrial sector overtook producers of basic materials into the close as transportation-related names fared well. The Dow Jones Transportation Average posted a gain of 1.1%.  Elsewhere, the energy space advanced 0.6% as crude oil climbed 1.4% to $97.95 per barrel.  While most cyclical sectors outperformed the broader market, countercyclical groups ended in mixed fashion. The health care space received some support from biotechnology after Onyx Pharma (ONXX 131.33, +44.51) rejected an unsolicited acquisition proposal from Amgen (AMGN 97.49, -1.17). The iShares Nasdaq Biotechnology ETF (IBB 178.26, +4.38) advanced 2.5%.  On the downside, telecom services and utilities ended with respective losses of 0.1% and 1.3%.  Reviewing today's economic data, the ISM Index increased to 50.9 in June from 49.0 in May, ending a one-month contraction. The Briefing.com consensus expected the index to increase to 50.5.  Separately, construction spending increased 0.5% in May after increasing a downwardly revised 0.1% (from 0.4%) in April. That was exactly what the consensus expected.  Surprisingly, the entire gain in construction came from the public sector. After months of weakness, that sector increased 1.8% on strong overall growth.  Tomorrow, May factory orders will be released at 10:00 ET while automakers will be reporting their June sales throughout the day. ..NYSE Adv/Dec 2175/867. ..NASDAQ Adv/Dec 1779/734.

Commodities

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Jason's Commentaries


Market started with a strong bullish bias last night that reached a high of near 200 points. Managed to held its high through lunch time before losing most of its gains after lunch. Dow closed at a gain of 65 points. Once again, Nasdaq is leading the market again, having the highest gains over the other 2 indices. Internals were all showing some sort of mixed signals. It's a flat day last night. Industrials were the major leader last night having a 1.06% gain across the industry. On the Technical note, Nasdaq has broken above the its 20MA while the other indices are facing some resistance from their respective 20MA. It seems to me that the market is starting to change its direction already. Treasuries are moving up for the past few sessions but after such massive drop. Perhaps the money is flowing back into the equity market already. With the employment reports coming out on Wednesday and Friday, I reckon Tuesday will be heading flat to the upside with anticipation of the employment reports.

Market Call: Flat to upside

Date: 2 July 2013