8 July 2013 AMC

8 July 2013 AMC

Market Summary 

Market Internals

Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:10 ET Dow +88.85 at 15224.69, Nasdaq +5.45 at 3484.83, S&P +8.57 at 1640.46 :[BRIEFING.COM] The S&P 500 settled higher by 0.5% as eight of ten sectors ended in the green.  Stocks registered the bulk of their gains in the opening minutes and the S&P 500 notched its session high within the first hour of action before spending the remainder of the day in a six point range.  The upbeat open was aided by a strong showing in Europe where major averages overlooked disappointing German industrial production data (-1.0% actual, -0.5% expected) and rallied on indications the next tranche of Greek aid will be approved by Eurozone officials.  While most sectors were able to hold their opening gains, technology and telecom services underperformed from the start and pressured the tech-heavy Nasdaq. Chipmakers ended broadly lower after Evercore downgraded Intel (INTC 23.18, -0.88) to ‘Underweight' from ‘Equal Weight.' Shares of Intel fell 3.6% while the broader PHLX Semiconductor Index slid 2.0%.  Also of note, the largest tech component, Apple (AAPL 415.05, -2.37), shed 0.6% amid reports suggesting the company is reducing its smartphone production. Major Apple suppliers also registered losses as Broadcom (BRCM 33.37, -0.40) and Qualcomm(QCOM 59.99, -0.96) both fell near 1.4%.  Meanwhile, the telecom services sector ended lower by 0.4% after spending the entire session in negative territory.  While the telecom space lagged, other countercyclical sectors settled in mixed fashion. The health care sector (+0.6%) ended just ahead of the broader market; consumer staples (+1.0%) displayed relative strength; and the utilities sector (+1.4%) finished atop the leaderboard.  With regards to cyclical groups, only technology and industrials trailed behind the S&P. The industrial sector was pressured by transportation-related names after Union Pacific(UNP 156.25, -1.23) was downgraded to ‘Market Perform' at Avondale. The rail carrier shed 0.8% while the broader Dow Jones Transportation Average added 0.1%.  Elsewhere, the relative strength of retailers provided support to the discretionary sector (+0.9%), and overshadowed the broad losses among homebuilders. The iShares Dow Jones US Home Construction ETF (ITB 21.66, -0.31) slumped 1.4%.  Treasuries were on the receiving end of some overnight safe-haven flows out of Asia with the bid continuing into the U.S. session. As a result, the benchmark 10-yr yield fell 10 basis points to 2.641%.  According to the Federal Reserve, consumer credit increased by $19.6 billion in May. This followed the prior month's increase of $10.9 billion, and was higher than the $13.2 billion that had been broadly expected among economists polled by Briefing.com.  There is no notable economic data scheduled to be released tomorrow. ..NYSE Adv/Dec 1789/1264. ..NASDAQ Adv/Dec 1401/1093.

The S&P 500 settled higher by 0.5% as eight of ten sectors ended in the green.

Today after the close the following companies reported earnings: AA, WDFC

Futures are higher after hours: S&P 500 futures are +2.43 from fair value of 1634.87 and Nasdaq100 futures are +2.85 from fair value of 2959.65.

Tomorrow morning before the open no economic reports are scheduled to be released.

Tomorrow before the open the following companies are scheduled to report earnings: HITK, MHR, WWW

Commodities

Treasuries

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Jason's Commentaries


It seems that market isn't turning down anymore. We just had another Up Monday Up Friday. Just like the previous FOMC minutes, I'm expecting the market to price into the FOMC minutes. Volumes were standing at 906m shares traded in the NYSE. While looking at the internals, it doesn't seem to me that last night was bullish at all. It was rather mixed. Bulk of the gains came from the financials. Tech was lagging last night.  While Staples and Utilities were amongst the top gainers. Market started last night with a bullish bias and managed to hold the high throughout the session and managed to hold up a 88 points gains on the Dow. While on the technical perspective, S&P500 is just a few percentage points away from its previous high. I doubt it will break that high anytime soon. 

Treasuries managed to make some gain last night while Oil remains above $102 with concerns from the Egypt's political issues. 

On other news, Alcoa's earnings results disappoints and losses widened. Alcoa reported adjusted earnings of 7 cents a share as revenue fell to $5.85b from $5.96b in the year-ago period. 
Also, financials may have to hold 5% cash instead of 3% as previously stated in Basel 3 requirement.  
With the FOMC minutes nearing, I'm expecting the market to price in a little as QE taper scares the market.

Market Call: UP

Date: 9 Jul 2013